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FEDERAL DEPOSIT INSURANCE CORPORATION
REPORT BULLETIN NO. 4

August 30, 2019

550 Seventeenth Street, N.W.
Washington, D.C. 20429


Supplement Highlights

Removal of Transferred OTS Regulations Regarding Lending and Investment; and Conforming Amendments to Other Regulation. The Federal Deposit Insurance Corporation adopted a final rule to rescind and remove the ``Lending and Investment'' regulations because they are unnecessary, redundant, or duplicative of existing FDIC regulations; to amend certain sections of existing FDIC regulations governing real estate lending standards to make them applicable to all insured depository institutions for which the FDIC is the appropriate Federal banking agency; and to rescind and remove ``Registration of Residential Mortgage Loan Originators'' regulations because supervision and rulemaking authority in this area was transferred to the Consumer Financial Protection Bureau by the Dodd-Frank Wall Street Reform and Consumer Protection Act. 84 Fed. Reg. 31173.

See pages 3173–3174, 3267–3268.

Joint Ownership Deposit Accounts. Federal Deposit Insurance Corporation. The FDIC amended its deposit insurance regulations to update one of the requirements that must be satisfied for an account to be separately insured as a joint account. Specifically, the final rule provides an alternative method to satisfy the ``signature card'' requirement. Under the final rule, the signature card requirement may be satisfied by information contained in the deposit account records of the insured depository institution establishing co-ownership of the deposit account, such as evidence that the institution has issued a mechanism for accessing the account to each co-owner or evidence of usage of the deposit account by each co-owner. 84 Fed. Reg. 35027.

See pages 2357–2360.

Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests In, and Relationships With, Hedge Funds and Private Equity Fund. The Office of the Comptroller of the Currency, Treasury; Board of Governors of the Federal Reserve System; Federal Deposit Insurance Corporation; Securities and Exchange Commission; and Commodity Futures Trading Commission adopted final rules to amend the regulations implementing the Bank-Holding Company Act's prohibitions and restrictions on proprietary trading and certain interests in, and relationships with, hedge funds and private equity funds (commonly known as the Volcker Rule) in a manner consistent with the statutory amendments made pursuant to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRRCPA). The EGRRCPA amendments and the final rules exclude from these prohibitions and restrictions certain firms that have total consolidated assets equal to $10 billion or less and total trading assets and liabilities equal to five percent or less of total consolidated assets. The EGRRCPA amendments and the final rules also revised the restrictions applicable to the naming of a hedge fund or private equity fund to permit an investment adviser that is a banking entity to share a name with the fund under certain circumstances. 84 Fed. Reg. 35021.

See pages 2909–2912, and 2929–2932.

Regulatory Capital Rule: Simplifications to the Capital Rule Pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996. The Office of the Comptroller of the Currency, Treasury; the Board of Governors of the Federal Reserve System; and the Federal Deposit Insurance Corporation, (collectively, the agencies) adopted a final rule to simplify certain aspects of the capital rule. The final rule is responsive to the agencies' March 2017 report to Congress pursuant to the Economic Growth and Regulatory Paperwork Reduction Act of 1996, in which the agencies committed to meaningfully reduce regulatory burden, especially on community banking organizations. The key elements of the final rule apply solely to banking organizations that are not subject to the advanced approaches capital rule (nonadvanced aproaches banking organizations). Under the final rule, non-advanced approaches banking organizations will be subject to simpler regulatory capital requirements for mortgage servicing assets, certain deferred tax assets arising from temporary differences, and investments in the capital of unconsolidated financial institutions than those currently applied. The final rule also simplifies, for non-advanced approaches banking organizations, the calculation for the amount of capital issued by a consolidated subsidiary of a banking organization and held by third parties (sometimes referred to as a minority interest) that is includable in regulatory capital. In addition, the final rule makes technical amendments to, and clarifies certain aspects of, the agencies' capital rule for both non-advanced approaches banking organizations (technical amendments). Revisions to the definition of high-volatility commercial real estate exposure in the agencies' capital rule are being addressed in a separate rulemaking. 84 Fed. Reg. 35270.

See pages 22401.11–2240.92, 2240.105–2240.132, 2240.149–2240.252, 2240.165–2240.168, 2240.179–2240.184, and 2240.189–2240.194-B.

Recordkeeping for Timely Deposit Insurance Determation. The Federal Deposit Insurance amended its rule entitled ``Recordkeeping for Timely Deposit Insurance Determination'' to clarify the rule's requirements, better align the burdens of the rule with the benefits, and make technical corrections. 84 Fed. Reg. 37042.

See pages 3239–3240.19.


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