On January 13 and 14, the Financial Crisis Inquiry Commission, which was established by Congress earlier this year “to examine the causes, domestic and global, of the current financial and economic crisis in the United States”, conducted hearings with testimony from executives of financial institutions, market participants and federal, state and local officials. Statements by Participants and Video of the Hearings.
Month: January 2010
FDIC Advance Notice on Employee Compensation
On January 11, the FDIC approved an Advance Notice of Proposed Rulemaking seeking input on whether and how the FDIC’s deposit insurance assessment system could be changed to account for risks posed by employee compensation programs. Comments are requested within 30 days of publication of the Advance Notice in the Federal Register. FDIC Release. Advance Notice.
SEC Proposes Rule Amendments for Market Access
On December 22, the SEC proposed amendments to Rule 163 of the Securities Act that would allow “well-known seasoned issuers” to authorize an underwriter or dealer to communicate with potential investors about securities offerings prior to filing registration statements. Under the current rule, only the issuer can communicate directly with potential investors before a registration statement is filed for an offering. Comments to the amendments must be received by January 27. SEC Release. SEC Proposed Amendments.
TALF Updates
On December 23, the New York Fed issued Information on Future TALF Program Changes related to rating agencies and legacy CMBS and issued revised FAQs. Information on Future Program Changes. FAQs. FAQs (showing changes).
FDIC Policy on Failed Bank Acquisitions
On January 6, the FDIC released questions and answers related to its August 20, 2009 statement of policy on qualifications for failed bank acquisitions and clarified which types of investors are excluded from the statement. FDIC Release. Final Statement.
Treasury Update on GSEs and Housing Programs
On December 24, Treasury announced that it amended the Preferred Stock Purchase Agreements (PSPAs) with Fannie Mae and Freddie Mac, allowing the cap on Treasury’s funding commitment to increase and providing more flexibility for Fannie and Freddie to meet the requirement that they reduce the size of their retained mortgage portfolios. Treasury also announced that several programs established under the Housing and Economic Recovery Act of 2008 would be terminated by the end of 2009. Treasury Press Release. Fannie Mae PSPA Amendment. Freddie Mac PSPA Amendment.
Monthly TALF Funding Requests
The graphs below display the monthly progression of TALF funding requests for Newly-Issued CMBS and Legacy CMBS. For individual graphs showing the monthly requests for other asset classes, please click here.
The graph below displays the monthly progression of TALF funding requests for all asset classes. For individual graphs showing the monthly requests for each asset class, please click here.
Rating Agency Developments
On January 6, S&P published methodology for reviewing its ratings assigned to U.S. servicer advance securitizations. S&P Release.
On January 6, S&P adapted its surveillance methodology and assumptions for U.S. RMBS backed by loans on residential lots. S&P Release.
On December 21, S&P released revised lifetime loss projections for U.S. Closed-End Second-Lien and HELOC RMBS transactions issued in 2005, 2006, and 2007. S&P Release.
On January 5, S&P requested comments on proposed revisions to its principal stability fund ratings criteria, which should be submitted to S&P no later than March 26. S&P Release.
On January 6, Fitch lifted its moratorium on rating auto dealer floorplan transactions and published a revised Global Dealer Floorplan (DFP) ABS criteria report. Fitch Release.
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Additional Initial PPIF Closing
On December 22, Treasury announced that Oaktree Capital Management L.P. completed an initial closing of a Public-Private Investment Fund under the Legacy Securities Public-Private Investment Program. Treasury Release.
ISDA Market Practice Changes for Asian CDS
On December 21, ISDA announced market practice changes, effective immediately, to the trading convention for CDS in Asia. The changes include the adoption of standard coupons and full first coupons in CDS transactions. ISDA Release.