On October 9, 2012, the Federal Deposit Insurance Corporation (FDIC) announced the final rules for stress testing by large financial companies required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The final rules apply to federally insured financial institutions with consolidated assets equaling $10 billion or more.
The final rule has added section 165(i)(2)(A) to the Dodd-Frank Act. The section requires the large financial institutions that are insured by the FDIC to conduct and submit a “company-run stress test.” Additionally, the final rule requires financial institutions with total consolidated assets over $50 billion to start the stress tests this very year.
The FDIC has authoritative power to grant a delay for the covered financial institutions with more than $50 billion in consolidated assets, but the delays are only allowed after an evaluation of the financial institution. The final rule allows financial institutions with consolidated assets between $10 billion and $50 million to delay stress tests until October of 2013.
The FDIC will release scenarios for stress-testing for the institutions with assets over $50 billion in November. The large financial institutions are required to use data up to September 30, 2012 and submit their results by January of 2013.
The final rule updates the deposit insurance assessment system for institutions with over $10 billion in assets as well. The rule changed the definitions that were used to target and define groups of high-risk assets in order to help the FDIC determine the degree of risk.
The FDIC reports that there were 108 institutions as of June 30, 2012 with over $10 billion in assets.
Lastly the FDIC updated loss, income, and reserve ratio projections that are used for the Deposit Insurance Fund (DIF). Acting Chairman Martin J. Gruenberg stated, “We are continuing on a path to gradually rebuild the fund in a manner that should not unduly burden bank while the economy continues to recover.”
Source: Federal Deposit Insurance Corporation
Henry Barbour, a member of the Republican National Committee and one of five GOP members tasked with developing a new GOP strategy following the failed 2012 elections, refused to say if climate change is one of the focal points his party should address, stating “there are two sides to every issue.”
During a Thursday appearance on NPR to discuss the Republican Party’s post-election revamping, Barbour fielded a question from a caller who lambasted the Republicans for ignoring climate change as a and refusing to accept its standing as a legitimate concern.
“The Republican Party has to be concerned with fixings its own problems,” said Barbour, a Mississippi Republican. “Whether it’s looking at the environment or whether it’s dealing with education, security or spending, or whatever it is.”
The program’s host then pressed Barbour on the caller’s question by saying, “you can’t fix these issues unless you acknowledge them first.”
“There are certainly two sides to every issue and I’m not going to site her and give you a position on climate change,” Barbour replied. “As a party, we must focus on the ideas that help improve the country, whatever those might be, we need to focus on the ideas that unite us and not divide us.”
Barbour, the nephew of former Mississippi Governor Haley Barbour, was elected to the Republican National Committee in 2005 and has held crucial roles in several GOP campaigns. Last month, Barbour was appointed to the Growth and Opportunity Project, an initiative aimed at broadening the party’s appeal and responsible for examining where candidates failed during the 2012 election cycle.
“We must articulate our policies in a manner in which people can tell the benefit of what we’re trying to do,” Barbour told Bloomberg news. “Democrats were better at connecting with people in this regard and I think we came across as the old accountant too many times.”
Recent data suggests that climate change is an area where voters from both sides show great concern. Various polls released last month show that 83 percent of Democrats and over 70% of Republicans acknowledged rising temperatures, and 80 percent of total respondents stated that global warming is a serious problem.
These comments echo the GOP’s political tip-toeing when it comes to climate change. The bulk of GOP members feel that climate change is a non-issue.