The House Financial Services Committee announced that on Thursday, November 29 at 10 a.m., there will be a joint hearing of the Financial Institutions and Consumer Credit Subcommittee and the Insurance, Housing and Community Opportunity Subcommittee to examine the impact of the proposed rules to implement Basel III capital standards. The joint hearing will take place in room 2128 of the Rayburn House Office Building. Click here to view notice in full (links externally to House Financial Services Committee website).

The Financial Stability Oversight Council issued a significant report, including three major (and non-exclusive) recommendations for material changes in the manner in which money market funds ("MMFs") operate, all with the intended purpose of forestalling a run on MMFs of a type that may trigger a market crash. The FSOC's summary of the three proposals is as follows: Alternative One: Floating Net Asset Value. Require MMFs to have a floating net asset value ("NAV") per share by removing the special exemption that currently allows MMFs to utilize amortized cost accounting and/or penny rounding

The Financial Stability Board ("FSB") is publishing for public consultation an initial integrated set of policy recommendations to strengthen oversight and regulation of the shadow banking system. The shadow banking system is "credit intermediation involving entities and activities (fully or partially) outside the regular banking system," or non-bank credit intermediation, according to FSB. The FSB focuses on five specific areas in which the FSB believes policies are needed to mitigate the potential systemic risks associated with shadow banking: to mitigate the spill-over effect between the

The no-action request from ISDA, IIB and SIFMA to the CFTC requests grandfathering of swap positions by "Legacy Swap Affiliates" so that these entities would not be required to register as swap dealers even if they were unable to transfer or novate existing swap positions to registered swap dealers by the SD Effective Date. Since the novation or termination of legacy swaps away from "Legacy Swap Affiliates" cannot be done unilaterally (generally requiring counterparty consent), many Legacy Swap Affiliate positions will not expire or be novated and transferred to a registered swap dealer by the

The OCC announced that it intends to extend the temporary exception for the application of its lending limits rule (12 C.F.R. 32) to certain credit exposures arising from derivative and securities financing transactions from January 1, 2013 to April 1, 2013. Based on the comments received on the interim final rule, the OCC believes that the January 1 deadline would not provide sufficient time for institutions to develop and implement appropriate policies and procedures to comply with these provisions. The extension would appear in the final rule (expected before the end of the year).