Proposed Rule

Better Late Than Never: SEC Proposes Guide 3 Update

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In a long-awaited milestone, the SEC has proposed an update of Guide 3, the industry guide for banking organizations.  The proposal eliminates a number of the current requirements under Guide 3 and streamlines many of those that remain.  The three “new” credit quality ratios in the proposal are, in practice, already included in most registrants’ disclosures, and thus are not significant new requirements.

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Davis Polk Comments on Federal Reserve’s Proposed Rule on Confidential Supervisory Information

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Navigating the outdated rules on confidential supervisory information has become increasingly difficult in the digital world because the rules have their origin in the paper-based world of 1967, when they were first enacted.  In the meantime, the amount and type of information made available by the banking agencies to banking organizations, and vice versa, has increased by several orders of magnitude.  We estimate that banking organizations send the Federal Reserve, just one of the banking agencies, approximately 2.5 million documents a year.  Against this backdrop, the Federal Reserve has

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CECL Delayed for Small and Private Companies, But 2020 Implementation is Likely Here to Stay

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The Financial Standards Accounting Board (FASB) voted on Wednesday to propose delaying the implementation date of the Current Expected Credit Losses accounting standard (CECL) until 2023, for all companies other than larger SEC filers.  The proposal would reduce the number of implementation dates from three to two.

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Davis Polk Comments on Federal Reserve’s Proposed Rule on Controlling Influence

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Davis Polk submitted a comment letter to the Federal Reserve on its notice of proposed rulemaking to amend its regulatory framework for deciding when a company exercises a controlling influence over another company under the Bank Holding Company Act (BHC Act) and the Home Owners’ Loan Act.  We previously summarized the Fe

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SEC Cross-Border Proposal Balances Burdens and Benefits of New SBS Regime

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On Friday, the SEC proposed a package of rule amendments and regulatory guidance regarding the cross-border application of its security-based swap (“SBS”) rules.  The proposal represents an attempt by the SEC to reconsider certain aspects of the cross-border application of SBS regulatory requirements that market participants have identified as unnecessarily burdensome or incongruous with parallel CFTC swaps requirements.

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U.S. Banking Agencies Propose Custody Bank Relief under the Supplementary Leverage Ratio

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The U.S. banking agencies have proposed allowing custodial banking organizations to exclude certain central bank deposits from the calculation of total leverage exposure, the denominator of the U.S. Basel III supplementary leverage ratio (SLR).  The proposal implements Section 402 of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 (EGRRCPA).  The three U.S.

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Cyber Blog Post: The FTC Moves Toward a Rules-Based Approach to Cybersecurity Regulation for Financial Institutions

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In our first Cyber Blog post, we predicted that the rules-based approach adopted by the NYDFS would become the model for cybersecurity regulation.  Two years later, we’re feeling pretty good about that prediction, as the FTC recently proposed incorporating a number of aspects of the NYD

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Bank Pay Rules May Be Resurrected

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U.S. federal banking regulators plan to revive efforts to regulate financial institution incentive compensation, as required under Section 956 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act).

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Board Interlocks and Investment in the Banking Sector—The Federal Banking Regulators Propose to Raise the Asset Thresholds

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The Federal Reserve, FDIC and OCC (the Banking Agencies) recently published a proposal to increase the thresholds associated with the “major assets” prohibition governing management official interlocks contained in the Depository Institutions Management Interlocks Act (DIMIA)[1] and implemented by Regulation L.

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Federal Banking Regulators Propose EGRRCPA-Conforming Amendments to Stress Testing Rules

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The Federal Reserve, FDIC and OCC (the Agencies) have each released proposed amendments to their respective stress testing rules for national banks, savings associations, state member banks and state non-member banks (collectively, IDIs) that would implement Section 401 of the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 (the EGRRCPA) as it applies to supervisory and company-run stress testing requirements (the Proposals).[1]  The Proposals generally address company-run stress testing requirements for IDIs, but cer

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