/Vol. 77, No. 195/Tuesday, October 9, 2012/Rules and Regulations
Dodd-Frank Wall Street Reform and ConsumerProtection Act, Public Law 111–203, 124 Stat. 1376(2010).
12 U.S.C. 5301(12).
management that is independent fromthe STIF’s investment management.(I) Adopt procedures that require a bank to disclose to STIF participantsand to the OCC’s Asset ManagementGroup, Credit & Market Risk Division,within five business days after eachcalendar month-end, the fund’s totalassets under management (securitiesand other assets including cash, minusliabilities); the fund’s mark-to-marketand amortized cost net asset values bothwith and without capital supportagreements; the dollar-weighted averageportfolio maturity; the dollar-weightedaverage portfolio life maturity of theSTIF as of the last business day of theprior calendar month; and for eachsecurity held by the STIF as of the last business day of the prior calendarmonth:(
) The name of the issuer;(
) The category of investment;(
) The Committee on UniformSecurities Identification Procedures(CUSIP) number or other standardidentifier;(
) The principal amount;(
) The maturity date for purposes of calculating dollar-weighted averageportfolio maturity;(
) The final legal maturity date(taking into account any maturity dateextensions that may be effected at theoption of the issuer) if different from thematurity date for purposes of calculatingdollar-weighted average portfoliomaturity;(
) The coupon or yield; and(
) The amortized cost value;(J) Adopt procedures that require a bank that administers a STIF to notifythe OCC’s Asset Management Group,Credit & Market Risk Division, prior toor within one business day thereafter of the following:(
) Any difference exceeding $0.0025 between the net asset value and themark-to-market value of a STIFparticipating interest as calculated usingthe method set forth in paragraph(b)(4)(iii)(G)(1) of this section;(
) When a STIF has re-priced its netasset value below $0.995 perparticipating interest;(
) Any withdrawal distribution-in-kind of the STIF’s participating interestsor segregation of portfolio participants;(
) Any delays or suspensions inhonoring STIF participating interestwithdrawal requests;(
) Any decision to formally approvethe liquidation, segregation of assets orportfolios, or some other liquidation of the STIF; or(
) In those situations when a bank,its affiliate, or any other entity providesa STIF financial support, including acash infusion, a credit extension, apurchase of a defaulted or illiquid asset,or any other form of financial support inorder to maintain a stable net assetvalue per participating interest;(K) Adopt procedures that in theevent a STIF has re-priced its net assetvalue below $0.995 per participatinginterest, the bank administering theSTIF shall calculate, admit, andwithdraw the STIF’s participatinginterests at a price based on the mark-to-market net asset value; and(L) Adopt procedures that, in theevent a bank suspends or limitswithdrawals and initiates liquidation of the STIF as a result of redemptions,require the bank to:(
) Determine that the extent of thedifference between the STIF’s amortizedcost per participating interest and itsmark-to-market net asset value perparticipating interest may result inmaterial dilution of participatinginterests or other unfair results toparticipating accounts;(
) Formally approve the liquidationof the STIF; and(
) Facilitate the fair and orderlyliquidation of the STIF to the benefit of all STIF participants.* * * * *
Dated: September 26, 2012.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 2012–24375 Filed 10–5–12; 8:45 am]
BILLING CODE 4810–33–P
DEPARTMENT OF THE TREASURYOffice of the Comptroller of theCurrency12 CFR Part 46
[Docket ID OCC–2011–0029]RIN 1557–AD58
Annual Stress Test
Office of the Comptroller of theCurrency (‘‘OCC’’), Treasury.
This final rule implementssection 165(i) of the Dodd-Frank WallStreet Reform and Consumer ProtectionAct (‘‘Dodd-Frank Act’’) which requirescertain companies to conduct annualstress tests pursuant to regulationsprescribed by their respective primaryfinancial regulatory agencies.Specifically, this final rule requiresnational banks and Federal savingsassociations with total consolidatedassets over $10 billion (defined as‘‘covered institutions’’) to conduct anannual stress test as prescribed by thisrule.Under the final rule coveredinstitutions are divided into twocategories: covered institutions withtotal consolidated assets between $10and $50 billion, and coveredinstitutions with total consolidatedassets over $50 billion. Based on thesecategories, covered institutions aresubject to different stress testrequirements and deadlines forreporting and disclosures. A keydifference between these categories isthat a national bank or Federal savingsassociation that qualifies as an over $50 billion covered institution as of October9, 2012 must conduct the annual stresstest under this final rule beginning thisyear; other covered institutions thatqualify as $10 to $50 billion coveredinstitutions are not subject to the stresstest requirements under this final ruleuntil 2013.
This rule is effective on October9, 2012.
FOR FURTHER INFORMATION CONTACT
Darrin Benhart, Deputy Comptroller,Credit and Market Risk, (202) 874–1711;Robert Scavotto, Lead InternationalExpert, International Analysis andBanking Condition, (202) 874–4943;William Russell, National BankExaminer, (202) 874–5224; AkhtarurSiddique, Deputy Director, EnterpriseRisk Analysis Division, (202) 874–4665;Ron Shimabukuro, Senior Counsel, orAlexandra Arney, Attorney, Legislativeand Regulatory Activities Division,(202) 874–5090, Office of theComptroller of the Currency, 250 EStreet SW., Washington, DC 20219.
Section 165(i) of the Dodd-Frank Act
requires two types of stress testing: (1)Stress tests conducted by the companyand (2) stress tests conducted by theBoard of Governors of the FederalReserve System (‘‘Board’’). Section165(i)(2) requires certain financialcompanies, including national banksand Federal savings associations, toconduct stress tests and requires theFederal primary financial regulatoryagency
of those financial companies toissue regulations implementing thestress test requirements. A national bankor Federal savings association mustconduct a stress test if its totalconsolidated assets are more than $10 billion. Under section 165(i)(2), afinancial company is required to submitto the Board and to its primary financialregulatory agency a report at such time,
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