On June 25, S&P announced the categories of debt instruments whose ratings will carry a structured finance identifier as required under the new European regulation on credit rating agencies. The symbol will be applied to all relevant structured finance ratings globally by early September. S&P Release.
On June 24, S&P revised its methodology for deriving recovery rates for U.S. CMBS held in re-REMICs or CDO transactions. S&P Release.
On June 24, Fitch released a report on ratings comparability which discusses Fitch’s goal of comparability of default risk across asset classes for like-rated securities. Fitch Release.
On June 21, S&P published updated assumptions for loan losses that banks in Spain will experience under their credit stress testing methodology. S&P Release.
On June 21, S&P published its revised methodology and assumptions for global railcar and container lease securitizations. S&P Release.
On June 22, DBRS published its methodology for rating Canadian equipment finance securitizations. DBRS Release.
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On June 22, the FDIC adopted a final rule extending the Transaction Account Guarantee program for six months, from July 1, 2010 through December 31, 2010. The rule requires that interest rates on qualifying NOW accounts offered by participating banks be reduced to 0.25 percent from 0.5 percent, and provides for an additional extension of the program, without further rulemaking, for a period of time not to exceed December 31, 2011. FDIC Release.
On June 18, the Basel Committee on Banking Supervision announced adjustments to the Basel II market risk framework which was released in July 2009. The Committee: (i) reconfirmed the capital charge for non-correlation trading securitization positions, though a two-year transition period will be implemented during which charges may be based on the larger of the capital charges for net long and net short positions; (ii) set the floor for the correlation trading securitization positions at 8% of the standardized measurement method; and (iii) agreed to a coordinated start date of not later than December 31, 2011 for all elements of the July 2009 trading book package, which includes the Revisions to the Basel II Market Risk Framework and Guidelines for Computing Capital for Incremental Risk in the Trading Book. Release.
On June 23, the Obama Administration approved the plans of the State Housing Finance Agencies in Arizona, California, Florida, Michigan, and Nevada to use $1.5 billion in “Hardest Hit Fund” foreclosure-prevention funding. This first round of funding will support local initiatives to assist struggling homeowners in those states. Treasury Release.
On June 21, the Fed, the OCC, the OTS, and the FDIC issued guidance on incentive compensation arrangements at financial organizations, finalizing the proposed guidance issued by the Fed last October. The guidance will become effective on the date of publication in the Federal Register. Release. Guidance.
On June 16, Fitch released a report discussing loss mitigation and modification efforts, including both HAMP and non-HAMP modifications, undertaken by RMBS servicers. Fitch Report.
On June 14, S&P published capitalization rate assumptions and updated its methodology for evaluating the CMBS collateral typically included in U.S. CMBS transactions that it rates. S&P Release (capitalization rate assumptions). S&P Release (methodology).
On June 11, Moody’s updated its methodology for rating insurance trust preferred security CDOs, and U.S. bank trust preferred security CDOs. Moody’s Release (insurance trust preferred security CDOs). Moody’s Release (U.S. bank trust preferred security CDOs).
On June 17, S&P provided its methodology and assumptions for assessing primary mortgage insurance in Mexican RMBS. S&P Release.
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On June 14, the CFTC found that the terms and conditions of the proposed Weekend Motion Picture Revenue futures and binary option contracts for the motion picture Takers, submitted by Media Derivatives, Inc., do not violate the Commodities Exchange Act or the CFTC’s regulations under the Act, and therefore approved the contracts. The CFTC found that the contracts are based on commodities, are not readily susceptible to manipulation and serve an economic hedging purpose. Release. Statement of the CFTC.
On June 14, the European Commission launched a public consultation on options being considered for a forthcoming legislative proposal dealing with potential risks arising from short selling and credit default swaps. Responses to the consultation are requested by July 10. Consultation. FAQs. Consultation Document.
On June 15, the Fed approved a final rule to protect credit card users from unreasonable late payment and other penalty fees and to require credit card issuers to reconsider interest rate increases imposed since the beginning of last year. The final rule represents the third stage of the Fed’s implementation of the Credit Card Accountability Responsibility and Disclosure Act of 2009. The provisions of the Act addressed in this rule will generally go into effect on August 22. Federal Release. Final Rule.
On June 7, S&P released revised assumptions for minimum reinvestment interest rates in fixed-rate U.S. structured finance and municipal housing bonds. S&P Release.
On June 7, S&P refined its methodology and assumptions for analyzing insurer capital adequacy under their risk-based capital model. S&P Release.
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