Charlie McDonald

Associate

New York


Read full biography at www.orrick.com
Charlie McDonald is an associate in the Structured Finance group in the New York office.Array

Posts by: Charlie McDonald

FDIC Finalizes Rules to Simplify Capital Calculation for Qualifying Community Banking Organizations

 

On September 17, the Federal Deposit Insurance Corporation (FDIC) finalized a rule that introduces an optional community bank leverage ratio (CBLR) framework for measuring capital adequacy of qualifying community banking organizations. In order to qualify for the CBLR framework, a community banking organization must have a tier 1 leverage ratio of greater than 9 percent, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. A qualifying community banking organization that opts into the CBLR framework and meets all requirements will be considered to have met the well-capitalized ratio requirements under the Prompt Corrective Action regulations and will not be required to report or calculate risk-based capital. Release. Final Rule.

Treasury Releases Proposed Regulations for CFIUS Reforms under FIRMMA

 

On September 17, the U.S. Department of the Treasury proposed regulations to implement provisions of the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA). Among other things, the proposed rules would provide the Committee on Foreign Investments in the United States (CFIUS) the ability to review non-controlling investments involving critical infrastructure and sensitive data, mandate certain filings by foreign government-affiliated investors, and codify certain exceptions and exclusions to CFIUS’s jurisdiction. A separate proposal would expand CFIUS’s jurisdiction to certain real estate transactions. Comments on each of the proposed rulemakings are due by October 17. Release. NPR (General). NPR (Real Estate).

Federal Reserve and FDIC Release Public Sections of Resolution Plans for Largest U.S. Banks

 

On July 23, the Federal Reserve Board and the Federal Deposit Insurance Corporation (FDIC) released the public sections of the resolution plans submitted by the eight U.S. global systemically important banks. The full resolution plans, which are required by the Dodd-Frank Act and commonly known as living wills, were submitted for the agencies’ review on July 1. Release.

Federal Bank Regulatory Agencies Release Joint Statement on Risk-Based Approach to BSA/AML Supervision

 

On July 22, the Federal Reserve Board, FDIC, Office of the Comptroller of the Currency (OCC), National Credit Union Administration (NCUA) and the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) released a joint statement outlining the agencies’ risk-based approach to examining banks’ BSA/AML compliance programs. Release.

OCC Issues Final Rule Allowing Federal Savings Associations to Exercise National Bank Powers

 

On May 24, the Office of the Comptroller of the Currency (OCC) issued a final rule permitting federal savings associations with total consolidated assets of $20 billion or less to elect to operate as “covered savings associations” with the rights and privileges of national banks. A covered savings association will retain its federal savings association charter and existing governance framework, but will be subject to the same duties, restrictions, penalties, liabilities, conditions and limitations as a national bank. The final rule implements section 206 of the Economic Growth, Regulatory Relief and Consumer Protection Act. Release.

OCC, Federal Reserve and FDIC Propose Revised Capital and Liquidity Framework for Foreign Banking Organizations

 

On May 24, the OCC, Federal Reserve and Federal Deposit Insurance Corporation (FDIC) published a notice of proposed rulemaking that would establish a revised framework for determining capital and liquidity requirements for large foreign banking organizations. Comments on the proposal must be submitted by June 21. Notice of Proposed Rulemaking.

Rating Agency Developments

 

On May 29, Morningstar announced it had entered into a definitive agreement to acquire DBRS, the world’s fourth largest credit ratings agency, for a purchase price of $669 million. The transaction is expected to close in the third quarter of 2019. Press Release.

On May 24, Moody’s published its revised methodology for rating Vacation Timeshare Loan Securitizations. Methodology.

CFTC Adopts Final Rule Amending De Minimis Exception to Swap Dealer Definition

 

On March 25, the CFTC adopted a final rule amending the de minimis exception to the definition of “swap dealer.” Under the final rule, swaps entered into by Insured Depository Institutions (IDIs) in connection with loans to customers would not count towards the $8 billion aggregate notional amount threshold used in the de minimis exception. Release. Final Rule.