Banking Supervision & Regulation

Federal agencies have approved a final rule to permit banking organizations to reduce goodwill it must deduct from tier 1 capital by any associated deferred tax liability.

The banking agencies have issued a revised Guide to the Interagency Country Exposure Review Committee Process.

Public comments are due in January on proposed appraisal and evaluation guidelines regarding sound real estate appraisal and evaluation practices.

Banks, bank holding companies, and thrifts may adjust their September 30, 2008 regulatory capital calculations for the tax effects from losses on direct and indirect investments in Fannie Mae and Freddie Mac preferred stock.

Application guidelines and other information are available for the Treasury's capital purchase program and the FDIC's temporary liquidity guarantee program.

Banking organizations may recognize the economic benefits of the recently legislated change in the tax treatment of losses on Fannie Mae and Freddie Mac preferred stock in the third quarter of 2008 for regulatory capital purposes.

New guidance is available about the consolidated supervision of bank holding companies and combined U.S. operations of foreign banking organizations and about supervisory expectations for firm-wide compliance risk management.

Comments will be due in November on a proposal to reduce the risk weights for claims on Freddie Mac and Fannie Mae and claims they guarantee.

The Federal Reserve Board published a policy on minority equity investments in banks and bank holding companies that generally do not constitute control under the Bank Holding Company Act.

To facilitate participation by depository institutions and bank holding companies in the special lending program as intermediaries between the Federal Reserve and money market mutual funds, the Federal Reserve Board approved temporary limited exceptions to the Board's leverage and risk-based capital rules for bank holding companies and state member banks and to sections 23A and 23B of the Federal Reserve Act, which restrict transactions between banks and their affiliates.

Comments will be due this fall on a proposed rule that would implement less-complex approaches (the Basle II standardized framework) for calculating risk-based capital requirements.

Federal supervisors published new host state loan-to-deposit ratios that they will use to determine compliance with restrictions against out-of-state branches established, acquired, or operating primarily for deposit production.

Supervisory agencies have updated their statement outlining the qualification process for banking organizations implementing the new advanced capital adequacy framework known as Basel II.

Federal supervisors issued final guidance outlining the supervisory review process for banking organizations implementing the new advanced capital adequacy framework known as Basel II.

The Federal Reserve Board encourages banking organizations to work with borrowers and customers in communities affected by Hurricane Gustav and subsequent storms and to work with their Reserve Banks to resolve weather-related operating problems.

Federal agencies are ready to help smaller banks develop capital restoration plans if they have significant exposures to Fannie Mae and Freddie Mac.

Federal banking agencies are evaluating amendments to FAS 140 that the Financial Accounting Standards Board proposed today regarding qualifying special-purpose entities.

Public comments will be due in October on a proposal to permit banking organizations to reduce their goodwill deduction from tier 1 capital by any associated deferred tax liability.