(a) Approval of
transition period.
(1) To the extent an insured depository institution for which the
Board is the appropriate Federal banking agency qualifies as a “swaps
entity” and would be subject to the Federal assistance prohibition
in section 716(a) of the Dodd-Frank Act (15 U.S.C. 8305(a)), the insured
depository institution may request a transition period of up to 24
months from the later of July 16, 2013, or the date on which it becomes
a swaps entity, during which to conform its swaps activities to the
requirements of section 716 of the Dodd-Frank Act (15 U.S.C. 8305)
by submitting a request in writing to the Board.
(2) Any request submitted pursuant to this
paragraph (a) of this section shall, at a minimum, include the following
information:
(i)
The length of the transition period requested;
(ii) A description of the quantitative
and qualitative impacts of divestiture or cessation of swap or security-based
swaps activities on the insured depository institution, including
information that addresses the factors in paragraph (c) of this section;
and
(iii) A detailed explanation
of the insured depository institution’s plan for conforming its activities
to the requirements of section 716 of the Dodd-Frank Act (15 U.S.C.
8305) and this part.
(3) The Board may, at any time, request additional information that
it believes is necessary for its decision.
(b) Transition period for insured depository institutions. Following review of a written request submitted under paragraph
(a) of this section, the Board shall permit an insured depository
institution for which it is the appropriate Federal banking agency
up to 24 months after the later of July 16, 2013, or the date on which
the insured depository institution becomes a swaps entity, to comply
with the requirements of section 716 of the Dodd-Frank Act (15 U.S.C.
8305) and this subpart based on its consideration of the factors in
paragraph (c).
(c) Factors governing
Board determinations. In establishing an appropriate transition
period pursuant to any request under this section, the Board will
take into account and make written findings regarding:
(1) The potential impact of divestiture
or cessation of swap or security-based swaps activities on the insured
depository institution’s:
(i) Mortgage lending;
(ii) Small business lending;
(iii) Job creation; and
(iv) Capital formation versus the potential
negative impact on insured depositors and the Deposit Insurance Fund
of the Federal Deposit Insurance Corporation; and
(2) Any other factor that the Board
believes appropriate.
(d) Timing of Board review. The Board will seek to act on a request
under paragraph (a) of this section expeditiously after the receipt
of a complete request.
(e) Extension
of transition period. The Board may extend a transition period
provided under this section for a period of up to one additional year.
To request an extension of the transition period, an insured depository
institution must submit a written request containing the information
set forth in paragraph (a) of this section no later than 60 days before
the end of the transition period.
(f) Authority to impose restrictions during any transition period. The Board may impose such conditions on any transition period granted
under this section as the Board determines are necessary or appropriate.
(g) Consultation. The Board shall
consult with the Commodity Futures Trading Commission or the Securities
and Exchange Commission, as appropriate, prior to the approval of
a request by an insured depository institution for a transition period
under this section.
