On December 19, Fed, FDIC and OCC issued a statement seeking comment on supplemental guidance on income tax allocation agreements involving holding companies and insured depository institutions. The proposed guidance will clarify ownership of any tax refunds. Release. Proposed Addendum.
Insured Depository Institutions
The Fed Issues Final Rule on Treatment of Uninsured U.S. Branches and Agencies of Foreign Banks Under Section 716 of Dodd-Frank
On December 24, the Fed issued the final rule clarifying the treatment of uninsured U.S. branches and agencies of foreign banks under Section 716 of the Dodd-Frank Act. The final rule adopts the interim final rule issued on June 5, 2013. Section 716 prohibits the provision of certain types of federal assistance to swaps entities. Insured depository institutions that are swaps entities are eligible for a transition period of up to 24 months to comply and for certain statutory exceptions. The final rule clarifies that, for purposes of section 716, uninsured U.S. branches and agencies of foreign banks are treated as insured depository institutions. Release. Final Rule.
Agencies Memorandum of Understanding on Supervisory Coordination
On June 4, pursuant to Section 1025 of the Dodd-Frank Act, the Fed, the CFPB, the FDIC, the NCUA and the OCC released a memorandum of understanding clarifying how the agencies will coordinate their supervision of insured depository institutions with over $10 billion in assets and their affiliates. Joint Release. Memorandum of Understanding.
FDIC Final Rule on Resolution Plans
On January 17, the FDIC approved a final rule which requires insured depository institutions with $50 billion or more in total assets to submit periodic contingency plans to the FDIC for resolution in the event of the institution’s failure. The resolution plans will ensure that: (i) depositors receive access to insured deposits within one business day of the institution’s failure (or within two business days if the failure occurs on a day other than a Friday); (ii) the net-present-value return from the sale or disposition of its assets is maximized; and (iii) the amount of any loss to be realized by the institution’s creditors is minimized. The final rule will be effective on April 1. FDIC Release. FDIC Final Rule.