FDIC Initiatives under the Dodd-Frank Wall Street Reform and Consumer Protection Act
The FDIC is responsible for implementing a number of initiatives under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Here are some of our recent accomplishments and upcoming plans to carry out our responsibilities related to the Act.
Banking Activities and Investments — Report to Congress
Section 620 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) required the federal banking agencies to conduct the study and report to Congress on the types of activities and investments permissible for banking entities, the associated risks, and how banking entities mitigate those risks. For the purpose of this study, banking entities include insured depository institutions and any company that controls an insured depository institution or is treated as a bank holding company under the International Banking Act of 1978. The study also covers any affiliate or subsidiary of such companies. Each agency prepared the section of the report relative to the banking entities that it supervises. Each of the three sections includes a discussion of permissible activities, risk mitigation, legal limitations, and specific recommendations as required by the Dodd-Frank Act. Banking Activities and Investments – Report to Congress - PDF
Record Retention Requirements – Final Rule
Approved a final rule implementing section 210(a)(16)(D) of the Dodd-Frank Act. This statutory provision requires the promulgation of a regulation establishing schedules for the retention by the FDIC of the records of a covered financial company (i.e., a financial company for which the FDIC has been appointed receiver pursuant to Title II of the Dodd-Frank Act) as well as the records generated by the FDIC in the exercise of its Title II orderly liquidation authority with respect to such covered financial company. (June 21, 2016). Comment period ended December 23, 2014 Record Retention Requirements – Final Rule - PDF Record Retention Requirements – Proposed Rule - PDF; View Comments
Minimum Requirements for Appraisal Management Companies – Final Rule
Approved a joint final rule, with the OCC, the Federal Reserve, the NCUA, CFPB, and FHFA (collectively, the Agencies) to implement the minimum requirements in the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act) to be applied by States in the registration and supervision of appraisal management companies (AMCs). The final rule also implements the minimum requirements in the Dodd-Frank Act for AMCs that are subsidiaries owned and controlled by an insured depository institution and regulated by a Federal financial institutions regulatory agency. Under the final rule, these Federally regulated AMCs do not need to register with a State, but are subject to the same minimum requirements as State-regulated AMCs. The final rule also implements the requirement in the Dodd-Frank Act for States to report to the Appraisal Subcommittee of the Federal Financial Institutions Examination Council (FFIEC) the information required by the Appraisal Subcommittee (ASC) to administer the new national registry of appraisal management companies (AMC National Registry). In conjunction with this implementation, the FDIC is integrating its appraisal regulations for State nonmember banks and State savings associations. (April 14, 2015). Comment period ended June 9, 2014. Final Rule, Minimum Requirements for Appraisal Management Companies – PDF Proposed Rule, Minimum Requirements for Appraisal Management Companies – PDF;View Comments
Revisions to Risk-Based Deposit Insurance Assessment System Relating to Regulatory Capital Rules – Final Rule
Approved a final rule that revises the ratios and ratio thresholds for capital evaluations used in the risk-based deposit insurance assessment system and revise the assessment base calculation for custodial banks. The rule also requires highly complex institutions to measure counterparty exposure for deposit insurance assessment purposes using the standardized approach in the regulatory capital rules. These changes are intended to reflect recent changes to the Federal banking agencies' capital rules that will be effective in 2015 and 2018. (November 18, 2014). Comment period ended September 22, 2014. Final Rule, Assessments - PDF Proposed Rule, Revising Risk-Based Deposit Insurance Assessment System Relating to Regulatory Capital Rules - PDF; View Comments.
The Resolution of Systemically Important Financial Institutions: Single Point of Entry Strategy, Notice and Request for Comments
Approved a notice and request for comment on the Single Point of Entry Strategy for the orderly resolution of systemically important financial institutions. This notice describes in greater detail the Single Point of Entry strategy, highlights some of the issues identified in connection with the strategy, and requests public comment on various aspects of the strategy. (December 10, 2013). Extended comment period ended March 20, 2014. The Resolution of Systemically Important Financial Institutions: The Single Point of Entry Strategy - PDF; View Comments.
Basel III - Regulatory Capital Rules: Regulatory Capital, Implementation of Basel III, Minimum Regulatory Capital Ratios, Capital Adequacy, Transition Provisions, and Prompt Corrective Action
Approved a joint NPR, with the Federal Reserve Board and the Office of the Comptroller of the Currency, that would revise the agencies' risk-based and leverage capital requirements consistent with agreements reached by the Basel Committee on Banking Supervision (BCBS) in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems." (June 12, 2012). Comment period ended October 22, 2012. Proposed Rule, Basel III Regulatory Capital Rules – PDF; View Comments
Regulatory Capital Rules: Standardized Approach for Risk-Weighted Assets; Market Discipline and Disclosure Requirements Proposed Rule
Approved a joint NPR, with the Federal Reserve Board and the Office of the Comptroller of the Currency, that would revise and harmonize the agencies' rules for calculating risk-weighted assets, by, among other things, incorporating certain international capital standards of the Basel Committee on Banking Supervision (BCBS) set forth in the standardized approach of Basel II, as revised by the BCBS between 2006 and 2009, and other proposals addressed in recent consultative papers of the BCBS. The agencies also propose alternatives to credit ratings for calculating risk-weighted assets for certain assets, consistent with DFA § 939A. (June 12, 2012). Comment period ended October 22, 2012. Proposed Rule, Standardized Approach for Risk-Weighted Assets; Market Discipline and Disclosure Requirements – PDF; View Comments; Section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act
Orderly Liquidation - Enforcement of Subsidiary and Affiliate Contracts by the FDIC as Receiver of a Covered Financial Company
Approved an NPR that implements section 210(c)(16) of the Dodd-Frank Act, which permits the Corporation, as receiver for a financial company whose failure would pose a significant risk to the financial stability of the United States (a "covered financial company"), to enforce contracts of subsidiaries or affiliates of the covered financial company despite contract clauses that purport to terminate, accelerate, or provide for other remedies based on the insolvency, financial condition or receivership of the covered financial company. (March 20, 2012). The proposed rule was issued with a 60-day comment period. The comment period ended May 29, 2012. Enforcement of Subsidiary and Affiliate Contracts by the FDIC - PDF; View Comments
Establishment of the FDIC Systemic Resolution Advisory Committee
Established the FDIC Systemic Resolution Advisory Council to provide advice and recommendations on a broad range of issues regarding the resolution of systemically important financial institutions. (April 28, 2011). Federal Register notice - PDF.
Amended Unlimited Deposit Insurance Coverage for Non-interest Bearing Transaction Accounts Final Rule to include IOLTAs
Issued a Final Rule to implement a new law (Pub. L. No. 111-343 (Dec. 29, 2010)) extending Temporary Unlimited Deposit Insurance for Noninterest-Bearing Transaction Accounts to Interest on Lawyers Trust Accounts (IOLTAs) (January 18, 2011). Final Rule - PDF
Conducted Roundtable Regarding New Resolution Authority
Held first in a series of roundtable discussions with external parties on new resolution authority for systemically important nonbank financial companies and bank holding companies (August 31, 2010). (Roundtables are webcast live and subsequently archived and available for viewing.) Roundtable Agenda - Title II;
Incentive-Based Compensation Arrangements Final Rule
Review comments on NPR and issue Joint Final Rule to implement enhanced disclosure and reporting of compensation arrangements and to prohibit incentive-based payment arrangements that encourage inappropriate risk taken by covered financial companies, § 956. Section 956 of the Dodd-Frank Wall Street Reform and Consumer Protection Act
Source of Strength Proposed Rule
Issue a Joint NPR (with other Federal Banking Agencies) requiring bank holding companies, savings and loan holding companies, and other companies that control insured depository institutions to serve as sources of financial strength for their subsidiary depository institutions, § 616(d). Section 616 of the Dodd-Frank Wall Street Reform and Consumer Protection Act