Federal Register: FDIC Requests Comments On Proposal To Restrict Certain Qualified Financial Contracts

The Federal Deposit Insurance Corporation ("FDIC") requested comments on a proposal to subject certain systemically important bank entities to restrictions regarding the terms of their qualified financial contracts ("QFCs"). The proposal also covers state savings associations and state-chartered banks for which the FDIC is the primary federal regulator (such FDIC-supervised institutions, "FSIs").

In significant part, the proposed rules would:

• require covered FSIs to ensure that the covered qualified financial contracts to which they are parties provide that any default rights and restrictions on the transfer of the QFCs are limited to the same extent that they would be under the Dodd-Frank Act and the Federal Deposit Insurance Act ("FDI Act");