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Enron Mail |
Yesterday afternoon the Board adopted staff recommendations to:
* Regulation W - request comment on Regulation W that would comprehensively implement sections 23A and 23B of the Federal Reserve Act. This proposed regulation would confirm Board and staff interpretations, revise other previous staff opinions, proposes several additional exemptions, and addresses new topics under sections 23A and 23B. * Section 23B - issue interim final regulations, with a delayed effective date of January 1, 2002 that would: 1)clarify that institution-affiliate derivative transactions are subject to the market terms requirement of Section 23B; 2)require that banks maintain policies and procedures reasonably designed to monitor, manage and control credit exposures to affiliates arising from derivative transactions and intraday extensions of credit with affiliates. The policies and procedures must at a minimum monitor and control the credit exposure arising from the institution's derivative transactions with each affiliate, and all affiliates in the aggregate, ensuring that the institution's derivative transactions with affiliates comply with Section 23B * Section 23A - the application of section 23A appears to be addressed in two forms. Regulation W proposes a set of questions on measures that could be applied to institution-affiliate derivative transactions under section 23A. Additionally, the Board is also requesting public comment on the most appropriate treatment of derivative transactions between banks and affiliates under section 23A through the interim final rule. The comment period for proposed Regulation W and the interim final rule on sections 23A and 23B is 90 days from issuance in the Federal Register which has not yet occurred. The full text of the Board Memo and proposed rules can be accessed through www.federalreserve.gov. I have included a shortcut to the site below. The relevant regulations are included under item 2. Proposals regarding Sections 23A and 23B of the Federal Reserve Act. 2a. is Regulation W and 2b. is the Interim Final Rule on 23A and 23B. In case the shortcut does not work go to General Information -- then: Board Meetings -- then: May 2, 2001. Please call if you have any questions. Many thanks! <<Open meeting memoranda.url<< Stacy Carey Policy Director International Swaps and Derivatives Association 600 5th Avenue, 27th Floor Rockefeller Center New York, NY 10020 (212) 332-1202 ph (212) 332-1212 fax (917) 543-9622 cell scarey@isda.org - Open meeting memoranda.url
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