The Payments Law Reporter is published to coincide with meetings of the Payments Advisory Council of the Fifth Federal Reserve District, which presently meets three times per year. The Payments Law Reporter is a publication of the Legal Department of the Federal Reserve Bank of Richmond.
A new final interagency rule will set minimum initial and variation margin requirements for swaps and security-based swaps not cleared through a clearinghouse. The rule will vary the amount of required margin based on relative risk and contains some exemptions for small banks, savings associations, Farm Credit System institutions, and credit unions with $10 billion or less in total assets. The variation margin requirements will phase in over six months and the initial margin requirements will phase in over four years, with both phase-in periods beginning September 1, 2016.
A new proposed rule would require global systemically important banks (GSIBs), both domestic ones and the domestic operations of foreign ones, to hold new minimum levels of long-term debt and “total loss-absorbing capacity.” The long-term debt could be used to recapitalize GSIBs’ critical operations upon failure. The TLAC requirement could be met with both regulatory capital and long-term debt. Together, they are intended to improve the prospects for a failed domestic GSIB’s orderly resolution and strengthen the resilience of all GSIBs. The deadline for public comment is February 1, 2016.
The counterfeit cashier's check scheme traditionally targets people who are selling items over the Internet or through classified ads. The cashier's check given to a seller and/or potential employee may be fraudulent and eventually returned to the bank.
The Supervision News Flash helps you stay abreast of topics and trends affecting financial institutions in the Fifth Federal Reserve District. On a periodic basis we’ll share insights on what our examiners, analysts and economists are seeing both within the Richmond Fed’s portfolio as well as trends from across the entire System.
The National Federal Reserve Financial Services website presents the products and services available for institutions in the Fifth District.