Posts by Bill Hoisington

LEGISLATIVE DEVELOPMENTS Senate Finance Committee Proposal to Reform Certain Business Provisions On November 21, Senate Finance Committee Chairman Max Baucus (D-Mont.) released a legislative proposal to reform certain business tax provisions.  In a related development, the JCT released a document titled Technical Explanation of the Senate Committee on Finance Chairman’s Staff Discussion Draft to Reform…

REGULATORY DEVELOPMENTS OCC Basel III Implementation Guidance On October 28, the OCC announced that it established a website to provide guidance for institutions on technical matters relating to the implementation of the advanced approaches risk-based capital rule.  The first document released addresses implementation of the Supervisory Formula Approach (SFA) for securitization exposures. Under the Advanced…

REGULATORY DEVELOPMENTS FRB Clarifications Regarding Basel III and Capital Plans and Stress Testing On September 24, the FRB issued two interim final rules that clarify how companies should incorporate the Basel III regulatory capital reforms into their capital and business projections during the next cycle of capital plan submissions and stress tests. Banks with Greater…

REGULATORY DEVELOPMENTS FFIEC Proposed Revisions to Call Reports On August 12, the Federal Register included proposed revisions to the regulatory capital components and ratios portion of Schedule RC–R, Regulatory Capital, in the Consolidated Reports of Condition and Income (Call Report or FFIEC 031 and FFIEC 041) and to the Risk-Based Capital Reporting for Institutions Subject…

LEGISLATIVE DEVELOPMENTS S. 1282 – 21st Century Glass-Steagall Act On July 1, Senator Elizabeth Warren (D-MA) introduced a bill (S. 1282) that would reinstate certain Glass-Steagall Act protections that were repealed by the Gramm-Leach-Bliley Act.  Among other provisions, the bill would prohibit depository institutions from being affiliated with any insurance company, securities entity, or swaps…

LEGISLATIVE DEVELOPMENTS Senate Finance Committee – Tax Reform Update As reported previously, the Senate Finance Committee continues to review various topics relating to tax reform.  In June, the leaders of the Committee issued a letter to all senators requesting legislative language or detailed proposals on provisions that should be retained, added, repealed, or reformed.  They…

LEGISLATIVE DEVELOPMENTS H.R. 1618 – Bill to Increase Employer-Provided Group On April 18, Representative Michael Burgess (R-TX) introduced a bill that would amend IRC Section 79(a) to increase the dollar limitation on employer-provided group term life insurance that can be excluded from the gross income of the employee.  Currently, the limitation is $50,000.  H.R. 1618…

LEGISLATIVE DEVELOPMENTS Obama Budget Proposal and Treasury Greenbook In April, the Obama Administration released its Fiscal Year 2014 Budget Proposal.  The Department of the Treasury also released its General Explanations of the Administration’s Fiscal Year 2014 Revenue Proposals.  The proposal and general explanations include the same series of insurance related proposals that have been included…

LEGISLATIVE DEVELOPMENTS Federal Budget Proposals Both the House and Senate Budget Committees released federal budget proposals in March.  Both proposals indicate a desire to revisit corporate taxation with an eye toward eliminating “loopholes” and elaborate corporate “tax planning.”  The Fiscal Year 2014 Senate Budget Resolution includes a section titled, “Reducing the deficit by eliminating wasteful…

REGULATORY DEVELOPMENTS Dodd-Frank Implementation Hearing On February 14, 2013, the Senate Committee on Banking, Housing and Urban Affairs held a hearing on the status of Wall Street Reform.  Panelists included representatives from Treasury, the FRB, FDIC, OCC, CFPB, SEC and CFTC. OCC Testimony The OCC’s testimony provided an update to the Committee on completed and…