Stress Testing

Financial Industry Developments
OCC Stress Testing Guidance and CRE Stress Test Tool
SEC Proposed Rule for Security-Based Swap Dealers and Major Security-Based Swap Participants
CFTC Final Rule to Incorporate Swaps into Existing Regulations
CFTC No-Action Letters
Rating Agency Developments

European Financial Industry Developments
Journey to the FCA
The PRA’s Approach to Banking Supervision
Indication of Regulatory Expectations for Banks Currently Making LIBOR Submissions
Responses to Consultation on Non-Bank Resolution Regime

Events
ABS East 2012: Investor Focused. Investor Driven

Financial Industry Developments
FHFA Releases Draft Strategic Plan
Large Bank Stress Testing Guidance Finalized
Stress Testing for Community Banks
CFTC Rule on Swap Data Recordkeeping and Reporting
CFTC Rule on Aggregation for Position Limits for Futures and Swaps
Rating Agency Developments

Recent Orrick Alerts
Financial Industry Alert: FSA Releases Finalised Guidance on Payment for Order Flow Arrangements

RMBS Litigation
Assured Guaranty and Deutsche Bank Settle RMBS Claims for $165.6 Million
IKB Brings Two RMBS Lawsuits Against Bank of America and Related Entities
Assured Guaranty Sues GMAC Entities in Connection with RMBS Insurance

European Financial Industry Developments
FSA Issues Decision Notice Against Former BGC Senior Executive
FSA Guidance on the Practice of PFOF
ECOFIN Reaches Agreement on CRD IV
FSA and BoE Paper on PRA Designation of Investment Firms

Following the publication of the 2011 EU-wide stress test results in July 2011, the EBA issued a Recommendation to national supervisory authorities to ensure that appropriate mitigating actions were put in place with respect to banks with a Core Tier 1 capital ratio below 5% in the adverse scenario and to banks with a CT1 ratio close to 5% in the adverse scenario and with sizeable exposures to sovereigns under stress...

Following on from the recent publication of the results of bank stress tests in the United States, Daniel Tarullo, a member of the Board of Governors of the Federal Reserve System, has given a speech describing the Federal Reserve’s approach to stress testing...

Gabriel Bernardino; Chairman of EIOPA; FIN-FSA Conference on EU Regulation and Supervision; Helsinki, 25 January 2012...

Financial Industry Developments
FDIC Final Rule on Resolution Plans
FDIC Proposed Stress Testing for Large Banks
SEC Amendment for Covered Securities on BATS Exchange
Rating Agency Developments

Asset Management
SEC No-Action Letter on the Registration of Affiliates of Registered Advisers

RMBS Litigation
CUNA Mutual Group Sues RBS Over RMBS
M&T Bank Corp Settles CDO Suit Against Deutsche Bank for $55 Million

Events
American Securitization Forum 2012 Conference
The Volcker Rule - The Institutional Investor and Financing Perspective
Cross-Border Implications of the Bounty and Whistleblower Protection Provisions of Dodd-Frank
A New Era of Federal Prosecutions: Challenges for Main Street and Wall Street

Bank for International Settlements critically review the state of the art in macro stress testing, assessing its strengths and weaknesses...

Welcome note

Solvency II policy and implementation update

Reverse stress test exercise

Platforms - Retail Distribution Review

Proposed guidance on liquidity swaps

Making it easier to submit reports on time

Smaller Insurers’ Seminar in October

Solvency II - News round up

EIOPA consultations

EIOPA insurance industry stress test results

On 16 June 2011, the Interim Financial Policy Committee recommended that the FSA compile data on the current sovereign and banking exposures of UK banks not subject to the European Banking Authority stress tests to European Economic Area countries...

The European Banking Authority published the results of its 2011 EU-wide stress test of 90 banks in 21 countries...

Opening Statement - Publication of the 2011 EU-wide Stress Test Results; Andrea Enria, Chairperson of the European Banking Authority; London, 15 July 2011.

The European Insurance and Occupational Pensions Authority announced the results of its second European insurance stress test...

EIOPA - Towards a European Supervisory Culture; Gabriel Bernardino; Chairman of EIOPA; AEIP General Assembly; Wiesbaden, 17 June 2011.

EIOPA, 6 months on - what are the implications for intermediaries; Gabriel Bernardino; Chairman of EIOPA; BIPAR Annual Meetings; Brussels, 14 June 2011.

The objective of publishing the methodology was to ensure that the stress test was applied in a consistent and conservative manner across all 90 banks to identify remaining pockets of vulnerabilities in the EU banking sector and inform policymakers to ensure appropriate measures are taken to address deficiencies...

Financial Services Regulatory Update - 26 May 2011.

Hearing on the ESRB before the Committee on Economic and Monetary Affairs of the European Parliament - Introductory Statement by Andrea Enria; Brussels, 02 May 2011 has been published by European Systemic Risk Board...

The Individual Liquidity Systems Assessment only concerns simplified Individual Liquidity Adequacy Standards BIPRU firms...

During the course of the two rounds of FSA's reverse stress-testing surgeries - which were held in April/May 2010 and September/October 2010 for firms that are subject to FSA's requirements about reverse stress-testing - a large number of issues were raised and answered...

The European Banking Authority agreed to adopt a benchmark of Core Tier 1 against which to assess banks in the 2011 EU-wide stress test...

Welcome to the Spring 2011 edition of PwC’s actuarial newsletter...

Responding to the announcement by the European Insurance and Occupational Pensions Authority of the second Europe-wide stress test for the insurance sector, Peter Vipond, Director of Financial Regulation and Taxation, at the ABI said: "The UK insurance industry is currently under great pressure to implement an enormously complex regulatory framework..."

Commenting on the European Insurance and Occupational Pensions Authority’s launch of the second Europe-wide stress tests for the insurance sector, Philippe Guijarro, partner at PwC, said: "These new insurance stress tests are less severe than the previous European exercise but bring the added complexity of being based on Solvency II, which has still to be finalised..."