Rescission of FDIC Statements of Policy

Summary:

As part of a continuing effort to reduce regulatory burden, the FDIC is rescinding four FDIC Statements of Policy that are outdated.

Statement of Applicability to Institutions with Total Assets under $1 Billion: This Financial Institution Letter applies to all FDIC-insured depository institutions.

Highlights:

The FDIC, as part of a continuing effort to reduce regulatory burden and consistent with commitments made in its 2017 Economic Growth and Regulatory Paperwork Reduction Act of 1996 Report to Congress, initiated a review of all Statements of Policy. The FDIC identified the following four that are outdated and will be rescinded, effective December 31, 2019:

• Applicability of the Glass-Steagall Act to Securities Activities of Subsidiaries of Insured Nonmember Banks
• Treatment of Collateralized Letters of Credit After Appointment of FDIC as Conservator or Receiver
• Treatment of Collateralized Put Obligations After Appointment of FDIC as Conservator or Receiver
• Contracting with Firms That Have Unresolved Audit Issues with FDIC.

This FIL will become inactive six months after issuance.

Suggested Distribution:

• FDIC-Insured Institutions

Suggested Routing:

• Chief Executive Officer
• Chief Risk Officer

Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (877-275-3342 or 703-562-2200).

Additional Related Topics:

• Securities
• Receivership Policy
• Contracting