The Basel Committee on Banking Supervision seeks public comment on proposed new capital and liquidity standards. Comments are due April 16, 2010.

A final rule allowing mortgage loans modified under the Home Affordable Mortgage Program to retain their pre-modification risk weights takes effect December 21.

A final rule allowing mortgage loans modified under the Home Affordable Mortgage Program to retain their pre-modification risk weights takes effect December 21.

A new Federal Reserve policy statement, out today, provides guidance for commercial real estate loan workouts.

A new proposed regulatory capital rule, slated to take effect next year, would change the way banking organizations account for items they currently exclude from their balance sheets. Public comments on the proposed rule and its implementation are due in October.

Federal banking agencies are seeking public comment on the agencies' new guidance for sound management of funding and liquidity risks. Comments are due 60 days from today.

The Financial Accounting Standards Board has published two new Statements of Financial Accounting Standards. The Federal Reserve is reviewing the effect these new standards will have on regulatory capital requirements.

Bank holding companies may include as part of their Tier 1 capital senior perpetual preferred stock issued to the U.S. Treasury Department under the Troubled Asset Relief Program (TARP).

On March 31, 2009, new limits on the inclusion of trust preferred securities and other restricted core capital elements in bank holding company tier 1 capital were supposed to take effect. In response to the current financial situation, the Board of Governors has delayed imposition of these new limits until March 31, 2011.

Federal agencies announced they will begin stress tests of eligible bank holding companies with assets exceeding $100 billion. The agencies expect to complete the stress tests within the next two months.

Bank holding companies should consult the Federal Reserve before declaring a dividend that could raise safety and soundness concerns, redeeming or repurchasing regulatory capital instruments when experiencing financial weaknesses, or redeeming or repurchasing common stock or perpetual preferred stock that would result in a net reduction in the amount of such equity instruments outstanding for the quarter.

The Federal Reserve approved three final rules, previously approved as interim rules, to facilitate participation in the AMLF and the provision of liquidity to affiliates for assets typically funded in the tri-party repo market.