Fed Agencies seek comments on proposed accounting standards

As previously highlighted, the FASB (Financial Accounting Standards Board) has drafted updated accounting standards affecting how financial institutions account for CMBS transactions. Since these changes will significantly affect regulated institutions, Fed Agencies like the FDIC have proposed modifications and are seeking comments from interested parties. Here is the text of their request for comment and a link to their analysis....

Agencies Seek Comment on Proposed Regulatory Capital Standards Related to Adoption of Statements of Financial Accounting Standards No. 166 and 167

The federal banking and thrift regulatory agencies are seeking comment on a proposed regulatory capital rule related to the Financial Accounting Standards Board's adoption of Statements of Financial Accounting Standards Nos. 166 and 167. Beginning in 2010, these accounting standards will make substantive changes to how banking organizations account for many items, including securitized assets, that are currently excluded from these organizations' balance sheets.

The agencies are issuing the proposal to better align regulatory capital requirements with the actual risks of certain exposures. Banking organizations affected by the new accounting standards generally will be subject to higher minimum regulatory capital requirements. The agencies’ proposal seeks comment and supporting data on whether a phase-in of the increase in regulatory capital requirements is needed. It also seeks comment and supporting data on the features and characteristics of transactions that, although consolidated under the new accounting standards, might merit an alternative capital treatment, as well as on the potential impact of the new accounting standards on lending, provisioning, and other activities.

Comments on all aspects of the proposed rule are due within 30 days after its publication in the Federal Register, which is expected shortly. ###

Attachment: Notice of Proposed Rulemaking Regarding Risk-Based Capital Guidelines; Impact of Modifications to Generally Accepted Accounting Principles; Consolidation of Asset-Backed Commercial Paper Programs; and Other Related Issues - PDF (PDF Help)

FDIC-PR-151-2009

Media Contacts:
Federal Reserve
Barbara Hagenbaugh
(202) 452-2955
OCC
Dean DeBuck
(202) 874-5770
FDIC
Greg Hernandez
(202) 898-6984
OTS
William Ruberry
(202) 906-6677