Posts by Bill Hoisington

REGULATORY DEVELOPMENTS Proposed Regulatory Capital Reporting Changes As we reported in our July LRA update, the FDIC, FRB and OCC released proposed revisions to the risk-weighted assets portion of Schedule RC-R, Regulatory Capital, in the Consolidated Reports of Condition and Income (Call Report).  The revised schedule incorporates the standardized approach for calculating risk-weighted assets under…

JUDICIAL DEVELOPMENTS First National Bank of Pennsylvania v. Transamerica and Clark Consulting – BOLI Surrender Litigation On July 28, 2014, First National Bank of Pennsylvania (FNB) filed a civil complaint against Transamerica Life Insurance Company and Clark Consulting in connection with the surrender of a separate account BOLI program. According to the complaint, Park View…

REGULATORY DEVELOPMENTS Proposed Regulatory Capital Reporting Changes On June 23, the FDIC, FRB and OCC released proposed revisions to the risk-weighted assets portion of Schedule RC-R, Regulatory Capital, in the Consolidated Reports of Condition and Income (Call Report).  The revised schedule incorporates the standardized approach for calculating risk-weighted assets under Basel III. The draft form…

REGULATORY DEVELOPMENTS Proposed Revisions to the Risk-Based Capital Definition of Eligible Guarantee for Advanced Approaches Banks On May 1, the OCC, FRB and FDIC issued a notice of proposed rulemaking (NPR) that would revise the advanced approaches risk-based capital rules by removing the requirement that only guarantees provided by certain counterparties are eligible for recognition…

REGULATORY DEVELOPMENTS Enhanced Supplementary Leverage Ratio Final Rules On April 8, the OCC, FRB and FDIC released a final rule for implementing an Enhanced Supplementary Leverage Ratio for bank holding companies (BHCs) with more than $700 billion in total consolidated assets or more than $10 trillion in assets under custody. Under the final rule, an…

LEGISLATIVE DEVELOPMENTS Obama Budget Proposal and Treasury Greenbook On March 4, the Obama Administration released its Fiscal Year 2015 Budget Proposal.  The Department of the Treasury also released its Greenbook.  The proposal and general explanations include the same series of insurance related and other financial product proposals that we have highlighted in previous years, including:…

LEGISLATIVE DEVELOPMENTS Tax Reform Act of 2014 On February 26, the House Ways and Means Committee Chairman Dave Camp (R-MI) released draft tax reform legislation (the “Tax Reform Act of 2014”).  The legislation represents a sweeping overhaul of the tax code.  Key objectives include flattening the tax code, reducing the highest marginal personal and corporate rate…

LEGISLATIVE DEVELOPMENTS NY COLI Franchise Tax Bills As has become an annual custom, NY State Representative Marcos Crespo and NY State Senator Ruben Diaz have reintroduced the companion Assembly (AB 3896) and Senate (SB 388) bills for the 2014 session.  The bills would impose a franchise tax on any company receiving benefits from life insurance…

REGULATORY DEVELOPMENTS IRS PLR 2013510020 – Loss Recognition on BOLI Surrender On December 20, the IRS publicly released a private letter ruling (PLR) that was originally issued on September 23, 2013.  The PLR related to loss recognition upon the surrender of BOLI policies.  The taxpayer requesting the ruling was a national banking association that surrendered…