On September 30, FDIC Chairman Bair testified before the Senate Committee on Banking, Housing, and Urban Affairs on the FDIC’s approach to implementing the Dodd-Frank Act. Chairman Bair highlighted the FDIC’s top priorities, including: (i) resolution plan requirements and orderly liquidation authority, (ii) systemic risk oversight, (iii) capital and liquidity requirements, and (iv) consumer protection. Chairman Bair also discussed key implementation issues with respect to reliance on credit rating agencies, and the FDIC’s examination of enforcement authorities. FDIC Release.
Month: October 2010
Credit Rating Agency Exemption Removed from Regulation FD
On September 29, the SEC issued a final rule amending Regulation FD to remove the exemption for disclosures made to credit rating agencies. The amendment will be effective as of the date the rule is published in the federal register. The Dodd-Frank Act required the SEC to amend Regulation FD by October 19th. Final Rule.
FDIC Final Rule on Securitization Safe Harbor
On September 27, the FDIC approved a final rule providing a safe harbor for securitizations and participations by insured depository institutions that later become subject to FDIC receivership. The final rule grandfathers certain transactions during a transition period by providing a safe harbor if the transaction would qualify as a sale for accounting purposes under GAAP pre-FAS 166/167. To be afforded the full protection of the safe harbor, transactions occuring after the transaction period must (i) satisfy the conditions of the rule, including disclosure and risk retention requirements, and (ii) qualify as sales under current GAAP. Post-transition period transactions which satisfy the conditions of the rule but do not qualify as sales under current GAAP will have other, more limited, protections. FDIC Release. Final Rule.