On June 2, the Federal Deposit Insurance Corporation, Board of Governors of the Federal Reserve System and Office of the Comptroller of the Currency reiterated the disclosure requirements for annual stress tests conducted by financial institutions with total consolidated assets between $10 billion and $50 billion pursuant to the Dodd-Frank Act. The medium-sized firms are required to disclose certain information, including: a description of the types of risks included in the stress test; a summary description of the methodologies used in the stress test; estimates of losses, revenue, and net income; post-stress capital ratios; and an explanation of the most significant causes for the changes in regulatory capital ratios. Joint Release.
Dodd-Frank Act
FHFA Release Results of Fannie Mae and Freddie Mac Dodd-Frank Stress Tests
On April 30, the Federal Housing Finance Agency (FHFA) released a report providing the results of annual stress tests Fannie Mae and Freddie Mac are required to undergo under the Dodd-Frank Act. The report provide updated information on possible ranges of future financial results for Fannie Mae and Freddie Mac under severely adverse economic conditions. Press Release. Report.
SEC Adopts New Rules for Security-Based Swap Market
On January 14, the SEC adopted new rules that will require security-based swap data repositories (SDRs) to register with the SEC and prescribe reporting and public dissemination requirements for security-based swap transaction data. The SEC also proposed certain additional rules, rule amendments and guidance related to the reporting and public dissemination of security-based swap transaction data. The rules implement Title VII of the Dodd-Frank Act. The new rules will become effective 60 days after they are published in the Federal Register. Release.
Publication of Resolution Plans
On January 10, the Fed and the FDIC made available public portions of resolution plans for 116 institutions which are regulated by the Fed and the FDIC and required to submit resolution plans by the Dodd-Frank Act. Joint Release. Resolution Plans.
Regulatory Capital Estimation Tool for Community Banks
On November 19, the Fed, the OCC and the FDIC released an estimation tool to help community banks understand the potential effects on their capital ratios of the regulatory capital reforms imposed by Basel III and the Dodd-Frank Act. Joint Release. Estimation Tool.
FDIC Releases 2014 Stress Test Scenarios
On November 12, FDIC released the economic scenarios that will be used by financial institutions with total assets of more than $10 billion for stress tests required under the Dodd-Frank Act. Press Release.
Extension of Temporary Registration of Municipal Advisors
On September 23, the SEC amended interim final temporary Rule 15Ba2-6T, which provides for the temporary registration of municipal advisors under the Exchange Act, as amended by the Dodd-Frank Act, extending the date on which Rule 15Ba2-6T will sunset from September 30, 2013, to December 31, 2014. Release.
SEC Approves Registration Rules for Municipal Advisors
On September 18, the SEC unanimously adopted permanent registration rules for municipal advisors as required by the Dodd-Frank Act. The new rule requires an advisor to permanently register with the SEC if it provides advice to state and local governments on the issuance of municipal securities, about certain “investment strategies,” or on municipal derivatives. The new rules will supersede current temporary registration rules and will become effective 60 days after they are published in the Federal Register. Press Release.
Orrick Alert: Second Circuit Decision on Extraterritoriality
On August 30, the United States Court of Appeals for the Second Circuit handed down its decision in United States v. Vilar, which unequivocally limits the U.S. government’s ability to use Section 10(b) of the Securities Exchange Act of 1934 in criminal prosecutions involving extraterritorial conduct. No. 10-521-CR (2d Cir. Aug. 30, 2013). In so doing, the court made clear that the Supreme Court’s territorial limitation on private securities fraud actions, originally set forth in Morrison v. National Australia Bank Ltd., 130 S. Ct. 2869 (2010), also applies to criminal prosecutions. While the Dodd-Frank Act may in the future affect the scope and longevity of the Vilar decision, at least for the time being, Vilar makes it all the more difficult for U.S. prosecutors to pursue securities fraud where the purchase or sale of securities occurred outside the U.S. For the complete Orrick alert, please click here.
CFPB Procedural Rule on Nonbank Supervision
On June 26, the CFPB, pursuant to the Dodd-Frank Act, issued a final rule that establishes supervisory procedures for nonbanks whose activities it has reasonable cause to determine pose risks to consumers. CFPB Release. CFPB Final Rule.