skip navigation

Monday, October 20, 2014

[ – ] Text Size [ + ]  |  Print Page

SRC Insights: Second Quarter 2012

DFA Today - The Dodd-Frank Act: Progress, Priorities, and Challenges

As the Dodd-Frank Act (DFA or the act) rapidly approaches its second anniversary, it's a time to reflect back on the numerous accomplishments to date, the sizable tasks that remain, and the impact that continues to unfold. The act represents a sea of change in bank regulation. It aims to strengthen the resilience of the financial system, without unduly constraining credit or deterring financial innovation. Spirited arguments between critics and proponents are still heard daily. History will be the ultimate judge of the effectiveness of the DFA.

This recurring feature of SRC Insights highlights key events associated with the DFA that have transpired since the last issue. Reference links to more detailed information on the subject matter are also provided. If you have any questions regarding this periodic section, please contact Senior Specialist Bob Rell.

RULE PROPOSALS AND REQUESTS FOR COMMENT

April 20, 2012
Federal Reserve Board Announces the Formation of the Model Validation Council External Link

The Federal Reserve Board announced the formation of the Model Validation Council, which will provide the Federal Reserve with expert and independent advice on its process to rigorously assess the models used in stress tests of banking institutions. In addition, the Federal Reserve announced it will host a two-day symposium to discuss best practices in stress testing.

April 19, 2012
Volcker Rule Conformance Period Clarified External Link

The Federal Reserve Board (the Board) announced its approval of a statement clarifying that an entity covered by section 619 of the DFA, or the so-called Volcker Rule, has the full two-year period provided by the statute to fully conform its activities and investments, unless the Board extends the conformance period.

April 2, 2012
Federal Reserve Seeks Comment on Proposed Rulemaking to Establish Requirements for Determining Whether a Company Is Predominantly Engaged in Financial Activities External Link

The Board requested comment on a proposed amendment to its Notice of Proposed Rulemaking (NPR) issued February 11, 2011, to establish requirements for determining whether a company is “predominantly engaged in financial activities.”

March 30, 2012
Agencies Clarify Effective Date for Section 716 of the DFA External Link

Three federal financial regulatory agencies issued guidance clarifying that the effective date of section 716, the so-called Swaps Pushout provision, of the DFA is July 16, 2013. Section 716 prohibits certain types of federal assistance, such as discount window lending and deposit insurance, for certain uses to a swaps entity, subject to specified exceptions, with respect to its swap, security-based swap, or other activity.

March 27, 2012
Federal Deposit Insurance Corporation (FDIC)—Proposed Rule Amending the Definitions Used to Determine Assessment Rates for Large, Complex Institutions External Link

The FDIC proposes to amend its regulations to revise some of the definitions used to determine assessment rates for large and highly complex insured depository institutions. The FDIC believes that the proposed amendments would result in more consistent reporting, better reflect risk to the FDIC, significantly reduce reporting burden, and satisfy many of the concerns voiced by the industry after adoption of the final rule published in the Federal Register on February 25, 2011 (76 FR 10672).

LEGISLATIVE ACTIONS, HEARINGS, AND LEGAL PROCEEDINGS

April 19, 2012
Budget Hearing—the Office of Financial Research External Link

Committee on Financial Services Hearing

March 29, 2012
The Semiannual Report of the Consumer Financial Protection Bureau (CFPB) External Link

Committee on Financial Services Hearing

March 28, 2012
Accounting and Auditing Oversight: Pending Proposals and Emerging Issues Confronting Regulators, Standard Setters, and the Economy External Link

Committee on Financial Services Hearing

March 22, 2012
International Harmonization of Wall Street Reform: Orderly Liquidation, Derivatives, and the Volcker Rule External Link

U.S. Senate Committee on Banking, Housing, and Urban Affairs Hearing

March 1, 2012
Understanding the Effects of the Repeal of Regulation Q on Financial Institutions and Small Businesses External Link

Committee on Financial Services Hearing

February 15, 2012
Budget Hearing—CFPB External Link

Committee on Financial Services Hearing

February 15, 2012

Pay for Performance: Incentive Compensation at Large Financial Institutions External Link

U.S. Senate Committee on Banking, Housing, and Urban Affairs Hearing

February 8, 2012
Legislative Proposals to Promote Accountability and Transparency at the CFPB External Link

Committee on Financial Services Hearing

February 8, 2012
Limiting the Extraterritorial Impact of Title VII of the DFA External Link

Committee on Financial Services Hearing

January 31, 2012

Holding the CFPB Accountable: Review of First Semiannual Report External Link

U.S. Senate Committee on Banking, Housing, and Urban Affairs Hearing

GAO AND OTHER NOTABLE REPORT RELEASES SPEECHES, TESTIMONY, AND EVENTS OF INTEREST

GAO Reports

Mar 8, 2012
Capital Purchase Program: Revenues Have Exceeded Investments, but Concerns About Outstanding Investments Remain (GAO-12-301) External Link

Speeches

April 10, 2012

Developing Tools for Dynamic Capital Supervision External Link

Governor Daniel K. Tarullo at the Federal Reserve Bank of Chicago Annual Risk Conference, Chicago, Illinois (via videoconference)

February 16, 2012

Community Banking External Link

Chairman Ben S. Bernanke at the Future of Community Banking Conference, sponsored by the FDIC, Arlington, Virginia

OTHER REPORTS

March 7, 2012
Committee on Capital Markets Regulation (CCMR) Research External Link

The CCMR expressed “deep concern about the inadequacy of cost-benefit analysis” that its research has identified in proposed rulemaking under the act.

April 2012

Davis Polk DFA Progress Report External Link

March 6, 2012
Dodd-Frank: Implementation as of January 31, 2012
Morrison & Foerster External Link

With just over a year and a half of DFA behind us, it is time to take a breath and review how far we have come with regulatory reform. The short answer is, not as far as regulators had intended by this point, yet, given the scope of the undertaking, the regulators and the industry may be on a reasonable course.

March 1, 2012
Revisions to the Consolidated Reports of Condition and Income for March and June 2012 External Link

The Federal Financial Institutions Examination Council (FFIEC) has approved several revisions to the reporting requirements for the Consolidated Reports of Condition and Income (Call Reports). These revisions will take effect in the first two quarters of 2012.

March 2012
Federal Reserve Bank of Dallas 2011 Annual Report—Choosing the Road to Prosperity: Why We Must End Too Big to Fail—Now External Link

The too-big-to-fail institutions that amplified and prolonged the recent financial crisis remain a hindrance to full economic recovery and to the very ideal of American capitalism. It is imperative that we break up the big banks.

March 2012
Report to the Congress on the Office of Minority and Women Inclusion External Link

Pursuant to section 342(e) of the DFA, Sheila Clark, director of the Board's Office of Diversity and Inclusion, submits this first annual report to the Congress outlining the activities, successes, and challenges of the office.

UPDATES ON NEW AGENCIES

Consumer Financial Protection Bureau (CFPB)

CFPB—Public Input Sought to Set Priorities for Updating Regulations that the CFPB Inherited from Other Agencies External Link

Under the DFA, rulemaking authority and existing regulations under federal consumer financial laws transferred from seven agencies to the CFPB on July 21, 2011. On December 5, 2011, the CFPB requested comment on which provisions of existing regulations should have the highest priority for being updated, modified, or eliminated (76 FR 75825). Due to the number and complexity of the comments submitted in the first round, the CFPB is extending the comment reply period until June 4, 2012 (77 FR 14700).

March 20, 2012
Fair Debt Collection Practices Act (FDCPA) External Link

This is the first annual report summarizing CFPB activities to administer the FDCPA during the past year. These activities represent the CFPB's inaugural effort to curtail deceptive, unfair, and abusive debt collection practices in the marketplace prohibited by the FDCPA.

Federal Insurance Office (FIO)

March 30, 2012
Open Meeting of the Federal Advisory Committee on Insurance External Link

March 30, 2012
Brian Duperreault Named Chairman of the Federal Advisory Committee on Insurance External Link

Financial Stability Oversight Council (FSOC)

April 3, 2012
Authority to Require Supervision and Regulation of Certain Nonbank Financial Companies External Link

This final rule and the interpretive guidance attached as an appendix thereto describe the manner in which the FSOC intends to apply the statutory standards and considerations and the processes and procedures that the FSOC intends to follow in making determinations under section 113 of the DFA.

February 1, 2012
Minutes of the FSOC External Link

Office of Financial Research (OFR)

March 22, 2012
Notice Establishing the Federal Research Advisory Committee and Seeking Applications for Committee Members External Link

The Federal Research Advisory Committee (FRAC) will present advice and recommendations to assist the OFR in carrying out its functions in support of the FSOC.

March 2012
Strategic Framework for OFR External Link

March 20, 2012
Written Testimony of Richard Berner before the Senate Banking Committee for Nomination to be the Director of the OFR External Link


The views expressed in this article are those of the author and are not necessarily those of this Reserve Bank or the Federal Reserve System.