FDIC Law, Regulations, Related Acts
REPORT BULLETIN NO. 2
Washington, D.C. 20429
* Margin and Capital Requirements for Covered Swap Entities. The OCC, Board, FDIC, FCA, and FHFA (the Agencies') adopted and invited comment on an interim final rule amending the Agencies' regulations that require swap dealers and security-based swap dealers under the Agencies' respective jurisdictions to exchange margin with their counterparties for swaps that are not centrally cleared (Swap Margin Rule). The Swap Margin Rule takes effect under a phased compliance schedule stretching from 2016 through 2020, and the dealers covered by the rule continue to hold swaps in their portfolios that were entered into before the effective dates of the rule. Those swaps are grandfathered from the Swap Margin Rule's requirements until they expire according to their terms. There are currently financial services firms located within the United Kingdom (U.K.) that conduct swap dealing activities subject to the Swap Margin Rule. The U.K. has provided formal notice of its intention to withdraw from the European Union (E.U.) on March 29, 2019. If this transpires without a negotiated agreement between the U.K. and E.U., these entities located in the U.K. may not be authorized to provide full-scope financial services to swap counterparties located in the E.U. The Agencies' policy objective in developing the interim final rule is to address one aspect of the scenario likely to ensue, whereby entities located in the U.K. might transfer their existing swap portfolios that face counterparties located in the E.U. over to an affiliate or other related establishment located within the E.U. or the United States (U.S.). The Agencies seek to address industry concerns about the status of grandfathered swaps in this scenario, so the industry can focus on making preparations for swap transfers. These transfers, if carried out in accordance with the conditions of the interim final rule, will not trigger the application of the Swap Margin Rule to grandfathered swaps that were entered into before the compliance dates of the Swap Margin Rule. 84 Fed. Reg. 9949.
See pages 2871–2872.04, and 2885–2886.
* Disclosure of Financial and Other Information by FDIC-Insured State Nonmember Banks. The Federal Deposit Insurance Corporation amended its regulations by rescinding and removing its regulations entitled Disclosure of Financial and Other Information by FDIC-Insured State Nonmember Banks. Upon the removal of the regulations, all insured state nonmember banks and insured state-licensed branches of foreign banks would no longer be subject to the annual disclosure statement requirement set out in the existing regulations. The financial and other information that has been subject to disclosure by individual banks under the regulations is publicly available through the FDIC's website. 84 Fed. Reg. 9702.
See pages 2905–2908.
* Limited Exception for a Capped Amount of Reciprocal Deposits From Treatment as Brokered Deposits. The FDIC amended its regulations that implement brokered deposits and interest rate restrictions to conform with recent changes to section 29 of the Federal Deposit Insurance Act made by section 202 of the Economic Growth, Regulatory Relief, and Consumer Protection Act related to reciprocal deposits, which took effect on May 24, 2018. The FDIC is also making conforming amendments to the FDIC's regulations governing deposit insurance assessments. 84 Fed. Reg. 1353.
See pages 2291–2294, 2292.02-F-12g–2292.02-F-12h, 2296.02-F-12q–2296.02-F-12v, and 2639–2644.