A bulletin issued on Wednesday by the Office of the Comptroller of the Currency reminds federal savings associations that they will need to review a final rule and guidance issued in July by the Federal Deposit Insurance Corporation on investments in corporate debt securities. These institutions have until Jan. 1, 2013 to comply with that rule, as well as the OCC’s final rules regarding investments in other securities.
The Dodd-Frank Act authorized the FDIC to issue a final rule to establish “standards of creditworthiness” that replaces previously used “investment grade” standards for corporate debt security investments held or acquired by savings associations. Although the final rule was effective on July 21, a transition period was allowed that extended the compliance deadline until the New Year.
