the FDIC

Regulatory Capital Standards and FAS 166/167

On January 21, in a joint release, the FDIC, the Fed, the OCC, and the OTS announced the final risk-basked capital rule related to FAS 166 and 167. The rule is intended to better align risk-based capital requirements with the actual risks of certain exposures and provides an optional phase-in for four quarters of the impact on risk-weighted assets and tier 2 capital resulting from a banking organization’s implementation of FAS 166 and 167. The rule will take effect 60 days after its publication in the Federal Register. Banking organizations may elect to comply with the final rule as of the beginning of their first annual reporting period after November 15, 2009.  Joint Release.  Final Rule.

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.