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, August 3, 2012

Briefing Paper on Swaps Exemption for FCS Banks & CUs

ABA has developed a briefing paper on the CFTC’s proposed rule that would exempt cooperative lenders -- including Farm Credit System institutions and credit unions -- from Dodd-Frank Act clearing requirements for swaps entered into with eligible borrowers, or used to hedge balance-sheet risk.

The briefing paper explains that banks are not eligible for a clearing exemption if they have assets of more than $10 billion. But under the CFTC’s proposed rule cooperative lenders would be eligible regardless of their asset size -- including a FCS bank with nearly $90 billion in assets.

ABA makes the case in the briefing paper that the CFTC proposed rule has no policy justification, would cause competitive harm, and is arbitrary and capricious.

The comment deadline on the proposal is Aug. 16.

Read the briefing paper.
Read the proposal.
-

No comments:

Post a Comment

Please read our comment policy before making a comment.