Corporate and Financial Weekly Digest – January 6, 2012


In this issue;

- SEC Adopts Revised Net Worth Standard for Accredited Investors

- SEC Issues Final Mine Safety Disclosure Rules Under Dodd-Frank Act

- Amendments to Effective Date for Swap Regulation

- Approval of Final Rules Regarding Real-Time Public Reporting of Swap Transaction Data

- CFTC to Hold Open Meeting to Consider Final Rules, a Proposed Rule, and an Order

- CFTC Rejects Motion for Stay of Position Limits Rules

- Delaware Standing Requirements Do Not Apply to Derivative Suit Involving Spanish Corporation’s - Delaware Subsidiary

- Federal District Court Stays State Court Discovery Pursuant To SLUSA

- Obama Appoints Cordray as CFPB Head

- Agencies Extend Comment Period on Volcker Rule Proposal

- FinCEN Delays New Currency Transaction Report and Suspicious Activity Report Deadlines

- Banking Agencies Release Annual CRA Asset-Size Threshold Adjustments

- Agencies Seek to Modify Market Risk Capital Rules

- IRS Updates Guidance on Reporting Employer-Sponsored Healthcare Coverage

- AIM Imposes Record Fine on NOMAD

- ESMA Publishes Automated Trading Guidelines

An excerpt from "Agencies Seek to Modify Market Risk Capital Rules"

The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (the Board), and Federal Deposit Insurance Corporation (FDIC) (collectively, the agencies) are seeking comment on an amendment to the notice of proposed rulemaking (NPR) to modify the agencies’ market risk capital rules, published in the Federal Register on January 11, 2011 (January 2011 NPR). The January 2011 NPR did not include the methodologies adopted by the Basel Committee on Banking Supervision (BCBS) for calculating the standard specific risk capital requirements for certain debt and securitization positions, because the BCBS methodologies generally rely on credit ratings. Under section 939A of the Dodd-Frank Wall Street Reform and Consumer Protection Act, all federal agencies must remove references to and requirements of reliance on credit ratings from their regulations and replace them with appropriate alternatives for evaluating creditworthiness. In this NPR, the agencies are proposing to incorporate into the proposed market risk capital rules certain alternative methodologies for calculating specific risk capital requirements for debt and securitization positions that do not rely on credit ratings. The proposed creditworthiness standards include the use of country risk classifications published by the Organization for Economic Cooperation and Development for sovereign positions; company-specific data related to leverage, cash flow, and the volatility of the company’s monthly stock market returns for corporate debt positions; and a supervisory formula for securitization positions.

Please see full newsletter below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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