The Federal Reserve Board is responsible for issuing a number of rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act" or "DFA"), sometimes in conjunction with other government agencies. Listed below are initiatives completed by the Board, along with some of the proposals the Board has planned through 2013 and proposed rules that are being finalized. Timeframes for upcoming initiatives are estimates and may be adjusted.
Initiatives Completed
Dodd-Frank Act: Statutory Dates For Actions
Initiatives Completed (2010)
December 2010
Emergency Lending and Other Facilities Disclosure
On December 1, 2010, the Board posted Transaction Data information regarding transactions that occurred between December 1, 2007, and July 21, 2010, under various emergency lending facilities authorized under Section 13(3) of the Federal Reserve Act, the Term Auction Facility, the government-sponsored enterprise mortgage-backed securities purchase program, and foreign currency swap lines. (Provisions of the Dodd-Frank Act require that this information be made publicly available.) The disclosure included information about the identify of entities that received assistance under the facilities, the amount and type of assistance provided, the terms for repayment, and the collateral posted. (DFA Section 1109(c))
Website Posting of Audit Information
On December 3, 2010, the Board created an "Audit" link to certain information, including: (1) Government Accountability Office (GAO) audit reports; (2) the Federal Reserve's annual audited financial statements; (3) reports to Congress on Section 13(3) lending facilities; and (4) other relevant financial information. (DFA Section 1103(a))
Truth in Lending Act (TILA): Exemption Threshold Increase
On December 13, 2010, the Board requested comment on two proposed rules that would raise the exemption threshold from $25,000 to $50,000 for: 1) non-home secured credit (under Regulation Z), and 2) consumer leases (under Regulation M). Under the DFA, the increase will be effective July 21, 2011. (DFA Section 1100(E))
Voting in favor: Chairman Bernanke, Vice Chair Yellen and Governors Warsh, Duke, Tarullo, and Raskin
Against: None
Minimum Risk-Based Capital Requirements (Collins Amendment)
On December 15, 2010, the Board requested comment on a proposed rule that would amend the advanced approaches capital adequacy framework consistent with the Dodd-Frank Act. Specifically, the proposed rule would require a banking organization operating under the advanced approaches standards to meet, on an ongoing basis, the higher of the generally applicable and the advanced approaches minimum risk-based capital standards. The Board anticipates addressing other aspects of DFA Section 171 in subsequent rulemaking. (DFA Section 171(b)(2))
Voting in favor: Chairman Bernanke, Vice Chair Yellen and Governors Warsh, Duke, Tarullo, and Raskin
Against: None
Debit Interchange
On December 16, 2010, the Board requested comments on a proposed rule to establish standards for debit card interchange fees, regulations governing network fees, and prohibitions against network exclusivity arrangements and routing restrictions. (DFA Section 1075)
December 16 open Board meeting footage
Voting in favor: Chairman Bernanke, Vice Chair Yellen and Governors Warsh, Duke, Tarullo, and Raskin
Against: None
November 2010
Resolution Plan Roundtable
The Board and the Federal Deposit Insurance Corporation (FDIC) hosted jointly a roundtable with industry executives on November 4, 2010, to discuss the purpose, goals, key elements, and potential effects of the resolution plan requirement under the Dodd-Frank Act. (DFA Section 165(d))
Office of Financial Stability Policy and Research
The Board established an Office of Financial Stability Policy and Research on November 4, 2010, to develop and coordinate staff efforts to: identify and analyze potential risks to the financial system and the broader economy, including monitoring of asset prices, leverage, financial flows, and other market risk indicators; follow developments at key institutions; and analyze policies to promote financial stability. The Office also will support the supervision of large financial institutions and the Board's participation on the FSOC.
Volcker Rule--Conformance Period
On November 17, 2010, the Board requested comment on a proposed rule to implement the conformance periods available to banking entities to bring their proprietary trading, hedge fund, and private equity fund activities into compliance with the Volcker Rule's prohibitions. (DFA Section 619(c)(6))
Voting in favor: Chairman Bernanke, Vice Chair Yellen and Governors Warsh, Duke, Tarullo, and Raskin
Against: None
Financial Market Utilities (FMUs)
The Board assisted the FSOC in developing an Advance Notice of Proposed Rulemaking (45 KB PDF) regarding the FSOC's authority to designate FMUs as systemically important that was approved by the FSOC on November 23, 2010. (DFA Section 804(a))
October 2010
Establishment of the Financial Stability Oversight Council (FSOC)
The Board assisted in establishing the FSOC, which conducted its first meeting on October 1, 2010. At that meeting, FSOC bylaws were adopted and a transparency policy was established. (DFA Section 111)
Study of the Volcker Rule
The Board assisted the FSOC in developing a Request for Information, published in the Federal Register on October 6, 2010, pertaining to the FSOC's study of the Volcker Rule, which prohibits banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with hedge funds or private equity funds. (DFA Section 111)
Designation of Nonbank Financial Companies for Consolidated Supervision
The Board assisted the FSOC in developing an Advance Notice of Proposed Rulemaking regarding the FSOC's authority to designate certain nonbank financial companies for enhanced, consolidated supervision by the Federal Reserve. The Notice was published in the Federal Register on October 6, 2010. (DFA Section 113)
Appraisal Independence Rule
The Board issued an interim final rule on October 18, 2010, that is intended to ensure that real estate appraisers are free to use their independent professional judgment in assigning home values without influence or pressure from those with interests in the transactions. (DFA Section 1472)
Voting in favor: Chairman Bernanke, Vice Chair Yellen and Governors Warsh, Duke, Tarullo, and Raskin
Against: None
Risk Retention Study
The Board issued a report on October 19, 2010, on the potential impact of credit risk retention requirements on securitization markets. (DFA Section 941)
September 2010
Surveys Issued on Debit Card Interchange
On September 13, 2010, the Board issued surveys to three groups--debit card issuers (402 KB PDF), payment card networks (385 KB PDF), and merchant acquirers (321 KB PDF). The surveys were designed to assist the Board in developing proposed new rules relating to debit card interchange fees and network routing and exclusivity. (DFA Section 1075)
August 2010
Credit Ratings
The Board requested comment on August 10, 2010, on an Advance Notice of Proposed Rulemaking regarding alternatives to the use of credit ratings in the risk-based capital rules for banking organizations. (DFA Section 939A)
Voting in favor: Chairman Bernanke and Governors Kohn, Warsh, Duke, and Tarullo
Against: None
Transparency Policy
The Board established a transparency policy with regard to the Dodd-Frank Act implementation on August 12, 2010. This policy requires Federal Reserve representatives who communicate with the public on any matter subject to potential or proposed rulemaking under the DFA to submit a written summary of the meeting or other contact. These summaries will be made available on Meetings with the Public.
Consumer Financial Protection Bureau (CFPB) Transition Funding
The Federal Reserve established an account for the CFPB at the Federal Reserve Bank of New York. (DFA Section 1017(b)(1)) Pursuant to a request from the Treasury Department, the Federal Reserve provided initial transition funding of $18.4 million to the account for the establishment of the CFPB on August 12, 2010. (DFA Section 1017(a)(3) (b)(2))
Truth in Lending Act--Escrow Requirements for Jumbo Loans
The Board requested comment on August 16, 2010, on a proposed rule to increase the annual percentage rate (APR) threshold used to determine whether a mortgage lender is required to establish an escrow account for property taxes and insurance for first-lien jumbo mortgage loans. (DFA Section 1461)
Voting in favor: Chairman Bernanke and Governors Kohn, Warsh, Duke, and Tarullo
Against: None