United States:
Effective Date Set For FRB Expansion Of "Netting" Protection Eligibility For Financial Institutions
04 March 2021
Cadwalader, Wickersham & Taft LLP
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A Federal Reserve Board final rule that expands the number of
financial institutions that fall under the "netting"
provisions of the Federal Deposit Insurance Corporation Improvement
Act of 1991 was published in the Federal Register. As previously coverage, these provisions ensure
that parties to a netting contract (i.e., an agreement to
pay or receive the net, rather than gross payment) will have a
claim for the netted contract amount even in the event of
insolvency.
The final rule goes into effect on March 29, 2021.
The content of this article is intended to provide a general
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