Alert April 03, 2012

Federal Agencies Clarify Effective Date for Section 716 of the Wall Street Transparency and Accountability Act

The FRB, the FDIC and the OCC issued guidance clarifying that the effective date of Section 716 (“Section 716”) of the Wall Street Transparency and Accountability Act (such Act comprising Title VII of the Dodd-Frank Act) is July 16, 2013.  Section 716, commonly referred to as the “Swaps Pushout Provision,” prohibits Federal assistance to any swaps entity, as defined in Section 716, with respect to any swap, security-based swap, or other activity of the swaps entity.  “Federal assistance” is defined in Section 716 as, for certain purposes specified in Section 716(b)(1), the use of (1) any advances from any Federal Reserve credit facility or discount window that is not part of a program with broad‑based eligibility under section 13(3)(A) of the Federal Reserve Act, and (2) FDIC insurance or guarantees.