Fall 2010 Unified Agenda

Part XX

Federal Deposit Insurance Corporation

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###Semiannual Regulatory Agenda###

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FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC)

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FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Ch. III

Fall 2010 Unified Agenda

AGENCY: Federal Deposit Insurance Corporation.

ACTION: Semiannual regulatory agenda.

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SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is hereby

publishing items for the Fall 2010 Unified Agenda of Federal Regulatory

and Deregulatory Actions. The agenda contains information about FDIC's

current and projected rulemakings, existing regulations under review,

and completed rulemakings.

FOR FURTHER INFORMATION CONTACT: Persons identified under regulations

listed in the Agenda. Unless otherwise noted, the address for all FDIC

staff identified in the agenda is Federal Deposit Insurance

Corporation, 550 17th Street NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION: Twice each year, the FDIC publishes an

agenda of regulations to inform the public of its regulatory actions

and to enhance public participation in the rulemaking process.

Publication of the agenda is in accordance with the Regulatory

Flexibility Act (5 U.S.C. 601 et seq.). The FDIC amends its regulations

under the general rulemaking authority prescribed in section 9 of the

Federal Deposit Insurance Act (12 U.S.C. 1819) and under specific

authority granted by the Act and other statutes.

Risk-Based Capital Standards: Market Risk: The OCC, Board and

the FDIC proposed revisions to the market risk capital rule to

enhance its risk sensitivity and introduce requirements for public

disclosure of certain qualitative and quantitative information

about the market risk of a bank or bank holding company. The Office

of Thrift Supervision (OTS) currently does not apply a market risk

capital rule to savings associations and is proposing in this

notice a market risk capital rule for savings associations. The

proposed rules for each agency are substantively identical.

Deposit Insurance Regulations; Revocable Trust Accounts: The

FDIC adopted this rule to simplify and modernize its deposit

insurance rules for revocable trust accounts. The FDIC's main goal

in implementing these revisions is to make the rules easier to

understand and apply, without decreasing coverage currently

available for revocable trust account owners. The FDIC believes

that the rule will result in faster deposit insurance

determinations after depository institution closings and will help

improve public confidence in the banking system. The rule

eliminates the concept of qualifying beneficiaries. Also, for

account owners with revocable trust accounts totaling no more than

$500,000, coverage will be determined without regard to the

beneficial interest of each beneficiary in the trust.

Under the new rule, a trust account owner with up to five

different beneficiaries named in all his or her revocable trust

accounts at one FDIC-insured institution will be insured up to

$100,000 per beneficiary. Revocable trust account owners with more

than $500,000 and more than five different beneficiaries named in

the trust(s) will be insured for the greater of either: $500,000 or

the aggregate amount of all the beneficiaries' interests in the

trust(s), limited to $100,000 per beneficiary.

Guidelines for Furnishers of Information to Consumer Reporting

Agencies: The OCC, Board, FDIC, OTS, NCUA, and FTC (collectively,

the Agencies) request comment to gather information that would

assist the Agencies in considering the development of a possible

proposed addition to the furnisher accuracy and integrity

guidelines which, along with the accompanying regulations,

implement the accuracy and integrity provisions in section 312 of

the Fair and Accurate Credit Transactions Act of 2003 (FACT Act)

that amended section 623 of the Fair Credit Reporting Act (FCRA).

This advance notice of proposed rulemaking (ANPRM) seeks to obtain

information that would assist the Agencies in determining whether

it would be appropriate to propose an addition to one of the

guidelines that would delineate the circumstances under which a

furnisher would be expected to provide an account opening date to a

consumer reporting agency to promote the integrity of the

information. In addition, the Agencies request comment more broadly

on whether furnishers should be expected to provide any other types

of information to a consumer reporting agency in order to promote

integrity.

Community Reinvestment Act Regulations: The OCC, the Board, the

FDIC, and the OTS (collectively, the Agencies) issued this notice

of proposed rulemaking that would revise our rules implementing the

Community Reinvestment Act (CRA). The proposed rule would

incorporate into our rules recently adopted statutory language that

requires the Agencies, when assessing an institution's record of

meeting community credit needs, to consider, as a factor, low-cost

education loans provided by the financial institution to low-income

borrowers. The proposal also would incorporate into our rules

statutory language that allows the Agencies, when assessing an

institution's record, to consider as a factor capital investment,

loan participation, and other ventures undertaken by non minority-

owned and nonwomen-owned financial institutions in cooperation with

minority- and women-owned financial institutions and low-income

credit unions.

Defining Safe Harbor Protection for Treatment by the FDIC as

Conservator or Receiver of Financial Assets Transferred by an

Insured Depository Institution: The Federal Deposit Insurance

Corporation (FDIC) is amending its regulation codified at 12 CFR

section 360.6, Defining Safe Harbor Protection for Treatment By The

Federal Deposit Insurance Corporation As Conservator Or Receiver Of

Financial Assets Transferred In Connection With A Securitization Or

Participation. The amendment adds a new subparagraph (b)(2) in

order to continue for a limited time the safe harbor provision of

section 360.6(b) for participations or securitizations that would

be affected by recent changes to generally accepted accounting

principles. In effect, the Rule ``grandfathers'' all participations

and securitizations for which financial assets were transferred or,

for revolving securitization trusts, for which securities were

issued prior to March 31, 2010 so long as those participations or

securitizations complied with the preexisting section 360.6 under

generally accepted accounting principles in effect prior to

November 15, 2009. The transitional safe harbor will apply

irrespective of whether or not the participation or securitization

satisfies all of the conditions for sale accounting treatment under

generally accepted accounting principles as

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effective for reporting periods after November 15, 2009.

Incorporating Executive Compensation Criteria Into the Risk

Assessment System: The FDIC is seeking comment on ways that the

FDIC's risk-based deposit insurance assessment system (risk-based

assessment system) could be changed to account for the risks posed

by certain employee compensation programs. Section 7 of the Federal

Deposit Insurance Act (FDI Act, 12 U.S.C. 1817) sets forth the

risk-based assessment authorities underlying the FDIC's deposit

insurance system, and the parameters of the FDIC's rules are set

forth at 12 CFR part 327.

Assessments: The FDIC proposes to amend 12 CFR part 327 to

revise the assessment system applicable to large institutions to

better differentiate institutions by taking a more forward-looking

view of risk; to better take into account the losses that the FDIC

will incur if an institution fails; to revise the initial base

assessment rates for all insured depository institutions; and to

make technical and other changes to the rules governing the risk-

based assessment system.

Special Reporting, Analysis and Contingent Resolution Plans at

Certain Large Insured Depository Institutions: The FDIC is seeking

comment on a proposed rule that would require certain identified

insured depository institutions (IDIs) that are subsidiaries of

large and complex financial parent companies to submit to the FDIC

analysis, information, and contingent resolution plans that address

and demonstrate the IDl's ability to be separated from its parent

structure, and to be wound down or resolved in an orderly fashion.

The IDI's plan would include a gap analysis that would identify

impediments to the orderly stand-alone resolution of the IDI, and

identify reasonable steps that are or will be taken to eliminate or

mitigate such impediments. The contingent resolution plan, gap

analysis, and mitigation efforts are intended to enable the FDIC to

develop a reasonable strategy, plan or options for the orderly

resolution of the institution. The proposal would apply only to

IDls with greater than $10 billion in total assets that are owned

or controlled by parent companies with more than $100 billion in

total assets.

Alternatives to the Use of Credit Ratings in the Risk-Based

Capital Guidelines of the Federal Banking Agencies: The Dodd-Frank

Wall Street Reform and Consumer Protection Act (the Act), enacted

on July 21, 2010, requires Federal agencies to review their

regulations that (1) require an assessment of the credit-worthiness

of a security or money market instrument and (2) contain references

to or requirements regarding credit ratings. In addition, the

agencies are required to remove such requirements that refer to or

rely upon credit ratings, and to substitute in their place uniform

standards of credit-worthiness. The Advanced Notice of Proposed

Rulemaking seeks comment on alternative standards of credit-

worthiness that may be used for risk-based capital requirements.

Federal Deposit Insurance Corporation.

Valerie J. Best,

Assistant Executive Secretary.

Federal Deposit Insurance Corporation--Long-Term Actions

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Regulation

Sequence Title Identifier

Number Number

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603 12 CFR 325 Alternatives to the Use of Credit Ratings in the Risk-Based Capital 3064-AD62

Guidelines of the Federal Banking Agencies............................................

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Federal Deposit Insurance Corporation (FDIC) Long-Term Actions

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603. ALTERNATIVES TO THE USE OF CREDIT RATINGS IN THE

RISK-BASED CAPITAL GUIDELINES OF THE FEDERAL BANKING AGENCIES

Legal Authority: Dodd-Frank Wall Street Reform and Consumer Protection

Act

Abstract: The Dodd-Frank Wall Street Reform and Consumer Protection Act

(the Act), enacted on July 21, 2010, requires Federal agencies to

review their regulations that (1) require an assessment of the credit-

worthiness of a security or money market instrument and (2) contain

references to or requirements regarding credit ratings. In addition,

the agencies are required to remove such requirements that refer to or

rely upon credit ratings, and to substitute in their place uniform

standards of credit-worthiness. The ANPRM seeks comment on alternative

standards of credit-worthiness that may be used for risk-based capital

requirements.

Timetable:

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Action Date FR Cite

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ANPRM 08/25/10 75 FR 52283

ANPRM Comment Period End 10/25/10

Next Action Undetermined

Regulatory Flexibility Analysis Required: Yes

Agency Contact: Michael Phillips, Counsel, Legal Division, Federal

Deposit Insurance Corporation, Washington, DC 20429

Phone: 202 898-3581

RIN: 3064-AD62

[FR Doc. 2010-30465 Filed 12-17-10; 8:45 am]

BILLING CODE 6705-01-S