On February 11, 2011, the Board published a notice of proposed rulemaking (NPR) that would amend Regulation Y to establish the criteria for determining whether a company is “predominantly engaged in financial activities” and define the terms “significant nonbank financial company” and “significant bank holding company” for purposes of Title I of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Based on comments received, the Board believes that clarification is needed regarding the scope of activities that would be considered to be financial activities under that proposal. Accordingly, this notice supplements the February 2011 NPR amending specific portions of the regulation for clarity.  Comments on the proposed amendment must be submitted by May 25, 2012.

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In response to the market's evolution, Federal agencies are proposing revisions to the interagency leveraged finance guidance issued in 2001.  Transactions that are covered by this guidance are characterized by a borrower with a degree of financial or cash flow leverage that significantly exceeds industry norms as measured by various debt, cash flow, or other ratios.  The revised guidance refocuses attention to five key areas: 1) establishing a sound risk-management framework; 2) underwriting standards; 3) valuation standards; 4) pipeline management; and 5) reporting and analytics.  Comments on the proposed guidance must be submitted to the agencies no later than June 8, 2012.

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Submit public comment to other Federal Reserve Board proposals.