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.

The full report is available to retainer clients. To find out how you can sign up for the service, click here.