The FDIC Board has approved two Notices of Proposed Rulemaking.
The first would implement section 201(c)(16) of the Dodd-Frank Act, which permits the FDIC as receiver for a failed SIFI to enforce and prevent termination of the contracts of the institution’s subsidiaries or affiliates.
The second would make limited clarifications and definitional changes to the deposit insurance assessment system for insured depository institutions with more than $10 billion of assets. The proposed rule would fine tune the large-bank assessment system by amending the definitions of leveraged loans and subprime loans used to identify concentrations in higher-risk assets. The proposal would allow the FDIC to implement the changes without materially affecting the overall assessments that large institutions pay. There were 107 institutions with more than $10 billion in assets, as of Dec. 31, 2011.
Check dodd-frank.com frequently for updates on the Dodd-Frank Act and other important securities law matters.
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