Status of FDIC Dodd-Frank Act Rulemakings
August 2014
Completed FDIC-only Rulemakings
FDIC has met all applicable deadlines in issuing those required regulations in the Dodd-Frank Wall Street Reform and Consumer Protection Act for which it is solely responsible. These include:
- Orderly Liquidation Authority (OLA) Regulations
- Inflation adjustment for wage claims against financial company in receivership;
- Executive compensation clawbacks and definition of compensation;
- Definition of ‘predominantly engaged in activities financial in nature’ for title II purposes; and
- Rules governing asset purchaser eligibility.
- Deposit Insurance Fund Management Regulations
- Regulations establishing an asset-based assessment base;
- Regulations implementing permanent $250,000 coverage;
- Elimination of pro-cyclical assessments; dividend regulations;
- Restoration plan to increase the minimum reserve ratio from 1.15 to 1.35% by Sept. 30, 2020; and
- Regulations implementing temporary full Deposit Insurance coverage for non-interest bearing transaction accounts (Program expired 12/31/12).
The FDIC has also issued several optional rules, including the following OLA rules:
- Rules governing payment of post-insolvency interest to creditors;
- Rules establishing the proper measure of actual, direct, compensatory damages caused by repudiation of contingent claims;
- Rules governing the priority of creditors and the treatment of secured creditors;
- Rules governing the administrative claims process;
- Rules governing the treatment of mutual insurance holding companies; and
- Rules providing for enforcement of contracts of subsidiaries or affiliates of a covered financial company.
Completed Interagency Rules:
FDIC and its fellow agencies have issued a number of joint or interagency regulations. These include:
- Title I resolution plan requirements;
- Regulations implementing self-administered stress tests for financial companies;
- Minimum leverage capital requirements for IDIs (Collins §171(b)(1));
- Minimum risk-based capital requirements (Collins §171(b)(2));
- Capital requirements for activities that pose risks to the financial system (Collins §171(b)(7)) (as of July 9, 2013);
- Rules providing for calculation of the "maximum obligation limitation";
- Regulations on foreign currency futures;
- Removing regulatory references to credit ratings;
- Property appraisal requirements for higher cost mortgages;
- Appraisals for higher priced mortgages supplemental rule;
- Appraisal independence requirements;
- Volcker Rule Prohibition on Proprietary Trading and Investments in Covered Funds; and
- Interim final rule authorizing Retention of Interests in CDOs backed by Bank-Issued Trust Preferred Securities
Rulemakings in process—FDIC-only:
- Annual Stress Test – revisions to "as-of" dates for financial data;
- Integration and Streamlining of adopted OTS regulations.
Interagency Rulemakings in process:
- Additional OLA Rules:
- Orderly liquidation of covered brokers and dealers;
- Regulations regarding treatment of officers and directors of companies resolved under Title II; and
- QFC recordkeeping rules;
- Regulations implementing the credit exposure reporting requirement for large BHCs and nonbank financial companies supervised by the FRB;
- Regulations implementing the "source of strength" requirement for BHCs, S&LHCs, and other companies that control IDIs;
- Capital and margin requirements for derivatives that are not cleared OTC;
- Regulations governing credit risk retention in asset-backed securitizations, including ABS backed by residential mortgages;
- Regulations governing enhanced compensation structure reporting and prohibiting inappropriate incentive-based payment arrangements;
- Rulemaking prohibiting retaliation against an IDI or other covered person that institutes an appeal of conflicting supervisory determinations by the CFPB and the appropriate prudential regulator; and
- Additional appraisals and related regulations:
- Minimum requirements for registration of appraisal management companies and for the reporting of the activities of appraisal management companies to Appraisal Subcommittee;
- Regulations to implement quality controls standards for automated valuation models; and
- Regulations providing for appropriate appraisal review.
Other DFA Regulations and Guidance:
- OMWI – Proposed Standards for Assessing Diversity in Regulated Entities;
- Stress Testing Guidance, including:
- Economic Scenarios for 2014 Stress Testing;
- Policy Statement on the Principles for Development and Distribution of Annual Stress Test Scenarios (FDIC-supervised institutions); and
- Interagency Supervisory Guidance on Implementing Dodd-Frank Act Company-Run Stress Tests for Banking Organizations With Total Consolidated Assets of More Than $10 Billion But Less Than $50 Billion; and
- Interagency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans