Four ‘outdated, no longer necessary’ policy statements slated for chopping block

Four policy statements that are deemed “outdated and no longer necessary” are proposed to be rescinded by the federal insurer of bank deposits, according to a filing made public Friday.

The Federal Deposit Insurance. Corp. (FDIC), in a preliminary filing for the Federal Register, said it proposes to rescind “Statements of Policy” for:

  • Applicability of the Glass-Steagall Act to Securities Activities of Subsidiaries of Insured Nonmember Banks (adopted by the FDIC in 1982);
  • Treatment of Collateralized Letters of Credit After Appointment of the FDIC as Conservator or Receiver (1995);
  • Treatment of Collateralized Put Obligations After Appointment of the FDIC as Conservator or Receiver (1991);
  • Contracting with Firms that have Unresolved Audit Issues with the FDIC (1997).

The agency said the proposal is being made “given legislative and other changes” since the policy statements’ initial publication in the Register.

However, the agency also said it wants public comment – on a discretionary basis – on the proposed rescissions, even though the policy statements were not subject to public comment when they were issued.

The proposal is scheduled to be published Monday.

Proposed Rescission of Policy Statements