Focus on Regulation W - Transactions between Banks and their Affiliates

The Federal Reserve's Regulation W becomes effective April 1, 2003. The rule combines years of Fed statements on sections 23A and 23B of the Federal Reserve Act with new elements required by the Gramm-Leach-Bliley Act in a single, comprehensive rule governing transactions between banks and their affiliates. Below find a new and detailed analysis of Reg W's impact from Sheshunoff Information Services, as well as a catalogue of news articles and government documents.

Sheshunoff Special Report (in .pdf format):

• FRB Adoption of Regulation W Implementing Sections 23A and 23B of the Federal Reserve Act - March 2003[Editor's Note: This Special Report was developed as a special supplement to Sheshunoff’s Bank Safety and Soundness Regulatory Service, a two-volume compliance service written by the risk management consultants at RSM McGladrey’s Financial Institutions Group. For more information about this leading treatise, call 1-800-456-2340 or go to https://secure.sheshunoff.com/947.html.]

American Banker Coverage

• Banks Hit Ceiling Over Loan-Purchase Cap Plan - January 30, 2003
• In Brief: OTS Revises Thrift-Affiliate Rules - December 23, 2002
• Fed Reworks Discount, Affiliate Rules - November 1, 2002
• In Brief: Fed Set to Weigh Regulations Package - October 30, 2002
• Viewpoint: Can Fed Strike a Post-Enron Regulatory Balance? - June 20, 2002
• In Focus: From Fed, 274 Pages On Affiliate Transactions - May 7, 2001
• In Brief: Fed Issues Bank-Affiliate Transaction Rules - May 3, 2001

Final Rule and FRB SR Letter 03-2 (in .html format):

• Regulation W: 12 CFR 223 - Transactions between Member Banks and their Affiliates
  [Editor's Note: This rule is effective as of April 1, 2003]
• FRB Supervision and Regulatory Letter 03-2: Adoption of Regulation W Implementing Sections 23A and 23B of the Federal Reserve Act - issued 01/09/03

Key Federal Register Documents (in .pdf format)

• FRB Final Rule: Transactions Between Banks and Their Affiliates (Regulation W) - Statutory Restrictions Combined with Board Interpretations and Exemptions - issued 12/12/02 (effective date: 04/01/03)
• FRB Final Rule: Transactions Between Banks and Their Affiliates (Regulation W) - Miscellaneous Interpretations - issued 12/12/02 (effective date: 04/01/03)
• FRB Proposed Rule: Transactions Between Banks and Their Affiliates (Regulation W) - Credit Extension; Limitation of Member Bank's Ability to Buy from Affiliate under Exemption to 100% of Capital Stock and Surplus - issued 12/12/02 (comment deadline: 01/13/03)
• FRB Proposed Rule: Transactions between Banks and their Affiliates (Regulation W) - issued 5/4/01 (comment deadline: 8/15/01). See also correction issued 6/25/01.

For additional coverage of regulatory compliance and legislative events, including pending-activity calendars, agency announcements, calls for comment and more, visit American Banker Online's Washington/Regulatory page at http://www.americanbanker.com/washingtonregulatory.html.