Alert March 27, 2012

FDIC Issues Notice of Proposed Rulemaking To Amend Assessment Regulations for Large Financial Institutions

The FDIC issued a notice of proposed rulemaking (the “NPR”) that would, if adopted, amend the FDIC assessment regulations for large and highly complex financial institutions, generally those with more than $10 billion in total assets (“Large FIs”). The NPR would amend FDIC regulations, adopted in 2011 to make deposit insurance premiums more sensitive to risks taken by a Large FI, and that are to be codified at 12 CFR 327.9. The FDIC said that the changes in the NPR would address certain banking industry concerns by:

(1) revising the definitions of leveraged loans and subprime consumer loans;

(2) clarifying the timing of identifying an asset as higher risk;

(3) clarifying the way securitizations are to be identified; and

(4) refining the definitions used in [Large FI] pricing.

Comments on the NPR are due no later than May 29, 2012.