The OCC has notified national banks, federal thrifts and insured federal branches and agencies of foreign banks that are or may become swaps dealers that it is prepared to favorably consider transition periods for compliance with the Lincoln “push-out” provisions of Dodd-Frank,1 delaying imposition of this major aspect of the 2010 reform law for covered institutions. Uninsured foreign branches and agencies or other non-U.S. banking operations with access to the discount window (the “federal assistance” barred by the Lincoln legislation) are not included in the OCC’s transition guidance because the law does not clearly give U.S. regulators authority to provide it or otherwise exempt them. This is considered a drafting error, but it remains in the law because Congress has not yet acted on it and, with the new 113th Congress, would have to start with fresh legislation to do so by the July 16, 2013 effective date that requires push-out unless a bank is within an approved transition period.
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