Tabs

Bank/Thrift Supervision   |    Capital    |    CFPB    |    Deposit Insurance    |    Interchange    |    Mortgage Finance
Municipal Advisors   |    OCC-OTS Merger   |    Preemption    |    QM - QRM    |    Swaps   |    Volcker Rule    |    Full Topics List
 
Qualified Mortgage - Qualified Residential Mortgage
Swaps
Consumer Financial Protection Bureau - CFPB
Bank/Thrift Holding Company Supervision
Capital
Deposit Insurance
Interchange
Mortgage Finance
Municipal Advisors
OCC-OTS Merger
Preemption
Volcker Rule
Corporate Governance
Financial Stability Oversight Council (FSOC)
Appraisals
Office of Financial Research (OFR)
Systemic Risk
Supervision and Oversight
Payment, Clearing and Settlement
Prudential Supervision
Trust & Securities
Asset-Backed Securities
Resolution Authority

Friday, July 27, 2012

CFTC Proposes Swaps Exemption for FCS Institutions, Credit Unions

The CFTC last week published a proposed rule that would exempt cooperative lenders from Dodd-Frank Act clearing requirements for swaps entered into with eligible farmer and business borrowers, or used to hedge balance sheet risk. Cooperative lenders include, among others, Farm Credit System institutions and credit unions.

Banks are not eligible for a clearing exemption if they have assets of more than $10 billion. Cooperative lenders, however, would be eligible regardless of their asset size -- and that would include one Farm Credit System bank with nearly $90 billion in assets.

Since clearing requirements are both complex and costly, the proposed exemption would give Farm Credit System institutions and credit unions that use swaps a competitive advantage over the hundreds of ABA member banks not eligible for such an exemption.

Comments on the proposal are due August 16.

Read the proposal.

No comments:

Post a Comment

Please read our comment policy before making a comment.