In this newsletter, we provide a snapshot of the principal European, US and global financial regulatory developments of interest to banks, investment firms, broker-dealers, market infrastructures, asset managers and corporates.
Bank Prudential Regulation & Regulatory Capital
Revised Comptroller's Handbook
On December 16, 2014, the Office of the Comptroller of the Currency ("OCC") issued a revised version of the "Truth in Lending Act" booklet. The handbook provides updated guidance to examiners on recent changes made to Regulation Z, specifically in relation mortgage lending.
The handbook is available at: http://www.occ.gov/publications/publications-by-type/comptrollers-handbook/truth-in-lending-handbook.pdf
FDIC Issues Guidance for the Resolution Plans of Large Banks
On December 17, 2014, the Federal Deposit Insurance Corporation ("FDIC") issued guidance for resolution plans which must be submitted by insured depositary institutions with assets greater than $50 billion ("Covered Institutions"). FDIC rules require Covered Institutions to provide a resolution plan that will permit the FDIC as receiver under the Federal Deposit Insurance Act to resolve the institution in a methodical manner. The plan should allow for prompt access of insured deposits, maximization of the return from the failed institution's asset, and mitigation of losses realized by creditors. The FDIC guidance includes direction on the fundamentals that should be introduced in a fully developed resolution strategy. The guidance entails a cost analysis, clarification regarding assumptions made in the plan, and a list of significant complications that institutions should address. The guidance relates to the resolution plans of 36 insured banks that currently meet the criteria, as well as any new institution meeting the threshold, commencing with the 2015 submissions.
The guidance is available at: https://www.fdic.gov/news/news/press/2014/pr14109a.pdf
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