As expected, the FDIC today approved on 3-1 votes an NPR codifying the “valid-when-made” doctrine for loans originated by state banks and a final rule on the standardized approach for calculating the exposure amount of derivatives contracts (SA-CCR). Director Gruenberg dissented to the valid-when-made NPR on grounds that rent-a-charter arrangements will proliferate and to the SA-CCR final rule because it introduces risk sensitivity into a leverage measure. Chair McWilliams countered that SA-CCR is intended to be more risk-sensitive than the current exposure method and less complex and model-dependent than the internal models methodology.
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