Financial Services Bulletin: Action at Federal Agencies

by Perkins Coie

Federal Agencies Provide Guidance on Regulatory Capital Rulemakings

On Friday, November 9, 2012, the Board of Governors of the Federal Reserve System (the "Fed"), the Federal Deposit Insurance Corporation (the "FDIC"), and the Office of the Comptroller of the Currency (the "OCC") issued a joint press release concerning the three notices of proposed rulemaking issued in June that would revise and replace the current regulatory capital rules.  The June proposals suggested a possible effective date of January 1, 2013, for the final revised regulatory capital rules.  The press release explains that the agencies do not expect that any of the proposed rules will become effective on January 1, 2013.

Read the Fed press release

Read the FDIC press release

Read the OCC press release

CFTC Proposes Customer Protection Rules

On Friday, November 14, 2012, the Commodity Futures Trading Commission ("CFTC") proposed rules pursuant to Section 4d(a)(2) of the Commodity Exchange Act (the "CEA") and Section 4d(f) of the CEA as added by Section 724(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act").  The CFTC intends the proposed rules to enhance customer protections, risk management programs, internal monitoring and controls, capital and liquidity standards, customer disclosures, and auditing and examination programs for futures commission merchants ("FCMs").  The proposed rules also address certain related issues concerning the activities of derivatives clearing organizations ("DCOs") and chief compliance officers.  The proposed rules seek to provide greater assurances to market participants that customer segregated funds and secured amounts are protected; that customers are provided with appropriate notice of the risks of futures trading and of the FCMs with which they may choose to do business; that FCMs are monitoring and managing risks in a robust manner; that the capital and liquidity of FCMs are strengthened to safeguard their continued operations; and that the auditing and examination programs of the CFTC and the self-regulatory organizations are monitoring the activities of FCMs in a prudent and thorough manner.

Read the CFTC press release

CFTC Approves Appeal of Court Decision on Position Limits Rule

On Saturday, November 15, 2012, the CFTC (or "Commission") issued a press release announcing that the agency approved by a 3-2 vote moving forward with an appeal of a Federal District Court’s decision vacating the CFTC's previously approved position limits rule.  CFTC Chairman Gary Gensler issued the following statement in the press release:

“As part of the Dodd-Frank Act, Congress directed the Commission to limit promptly speculative positions in physical commodity futures and options contracts and economically equivalent swaps.  The rule addresses Congress’ concern [that] no single trader be permitted to obtain too large a share of the market, and that derivatives markets remain fair and competitive.  I believe it is critically important that these position limits be established as Congress required.  I support the Commission's continued efforts to put in place position limits on speculative positions by appealing the September ruling."

Read the CFTC press release

Federal Agencies Provide Stress Test Scenarios

On Saturday, November 15, 2012, the Fed, the FDIC, and the OCC issued separate press releases in connection with the release of the economic scenarios to be used by certain financial institutions with total consolidated assets of more than $10 billion for the upcoming round of stress tests required by the Dodd-Frank Act.  The economic scenarios include baseline, adverse, and severely adverse scenarios with variables that reflect economic activity, unemployment, exchange rates, prices, incomes, interest rates, and other salient aspects of the economy and financial markets.

Read the Fed press release

Read the FDIC press release

Read the OCC press release

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.

© Perkins Coie | Attorney Advertising

Written by:

Perkins Coie

Perkins Coie on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at:

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.