Deposit Rate Limits A proposal by the Federal Deposit Insurance Corp. to clarify deposit rate limits for sub-well-capitalized institutions. The rule would let adequately capitalized banks and thrifts taking brokered deposits pay rates based on a national average of bank and thrift rates. These rates are now capped based on rates on Treasury securities, which are uncharacteristically low. The regulation also aims to rein in banks that have used vagueness in the current rules to pay rates that are too high by more clearly defining "normal market area," which helps determine rate caps. Published in the Federal Register on Feb. 3 with comments due April 6.FHLB Capital An interim rule by the Federal Housing Finance Agency to reform the capital classifications of the Federal Home Loan banks. Under the rule, Home Loan banks are considered "undercapitalized" if their capital is between 3% and 4% of assets, "significantly undercapitalized" with ratios between 2% and 3%, and "critically undercapitalized" if the cushion falls below 2%. Published Jan. 30. Comments due April 30.
GSE Holdings An interim rule by the FHFA to let Fannie Mae and Freddie Mac each increase their mortgage portfolio to $850 billion by yearend. The rule also would require the government-sponsored enterprises to slash their portfolios, starting at the end of next year, until they reach $250 billion. Published Jan. 30. Comments due June 1.