-----Original Message----- From: Buz Gorman [mailto:BGorman@csbs.org] Sent: Wednesday, September 27, 2006 11:48 AM To: firstname.lastname@example.org Subject: Final Passage of Reg Relief Bill Expected Today (S. 2856) -- Key CSBS Provisions Included Importance: High The House is expected to approved a bank regulatory relief bill today and final passage could occur in the Senate as early as tonight. The bill largely reflects the relatively narrower legislation passed by the Senate earlier this year (S. 2856). Included are three provisions endorsed by CSBS: 1) Establish the chairman of the State Liaison Committee as a full voting member on the Federal Financial Institutions Examination Councilas included in the Senate passed bill; 2) increase from $250 million to $500 million the asset size of well- capitalized, well-managed institutions eligible for the extended 18 month exam cycle (the original CSBS provision in the House bill would have increased the cap to $1 billion in assets. The Senate reduced the size to $500 million), and; 3) Recognizes the CSBS interstate cooperative agreements and prohibits unilateral fees on host state branches in order to improve the coordination of supervision of multi-state state-chartered banks. Additionally, a compromise on the Senate bill’s provisions relating to the SEC's Regulation B was reached that directs the SEC to work with the Federal Reserve Board to promulgate joint regulations implementing the “push-out” provisions of the Gramm- Leach-Bliley Act (GLBA), and to consult with the OCC, Office of Thrift Supervision, and the FDIC on those regulations. The original Senate provision required the SEC to consult with and obtain concurrence from the bank regulators on these rules; the bank regulators would have had the option of going to court to challenge these rules. However, the compromise language is likely to be a faster and more efficient way to obtain workable rules. This new, joint rulemaking with the Federal Reserve will protect these traditional products and activities. A compromise was also reached on the Senate bill's authorization allowing the Fed to pay interest on reserve balances. The House accepted this provision but insisted on a five-year delay in the effective date due to budget concerns. While significant efforts were made in past few weeks to include a CSBS provision for multistate state-chartered trust operations, a compromised could not be reached.
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