Dodd-Frank Progress Report June 2012 Generated using the Davis Polk Regulatory Tracker
In Brief: May 2012 No New Deadlines. No new rulemaking requirements were due in May. 2 Requirements Met. The Department of the Treasury adopted a final and interim final rule establishing guidelines for fee assessments on large bank holding companies and certain nonbank financial companies. The Federal Reserve approved a final rule outlining the procedures by which securities holding companies can elect to be supervised by the Federal Reserve. In addition, the CFTC adopted a final rule on swap data recordkeeping and reporting for pre-enactment and transition swaps, which replaced existing interim final rules. State of Play to Date: As of June 1, 2012, a total of 221 Dodd-Frank rulemaking requirement deadlines have passed. This is 55.5% of the 398 total rulemaking requirements, and 78.9% of the 280 rulemaking requirements with specified deadlines. Of these 221 passed deadlines, 148 (67.0%) have been missed and 73 (33.0%) have been met with finalized rules. Regulators have not yet released proposals for 21 of the 148 missed rules. Of the 398 total rulemaking requirements, 110 (27.6%) have been met with finalized rules and rules have been proposed that would meet 144 (36.2%) more. Rules have not yet been proposed to meet 144 (36.2%) rulemaking requirements. www.davispolkportal.com 2
Contents Dodd-Frank Rulemaking Progress by Month 4 Dodd-Frank Rulemaking Progress by Agency 5 Title VII Progress on Required Rulemakings 6 Dodd-Frank Rulemaking Progress on Passed Deadlines 7 Dodd-Frank Rulemaking Progress in Select Categories 8 Dodd-Frank Rulemaking Progress by Due Date 9 Dodd-Frank Statutory Deadlines for Required Rulemakings 10 Dodd-Frank Study Progress by Due Date 11 Dodd-Frank Statutory Deadlines for Required Studies 12 Tasks for Swap Dealers and Major Swap Participants 13 Regulator Meetings with Outside Participants Over Time 14 3
Dodd-Frank Rulemaking Progress by Month As of May 1, 2012 As of June 1, 2012 Proposed, 127 Not Proposed, 123 Proposed, 127 Not Proposed, 123 Not Proposed, 21 Proposed, 19 Not Proposed, 21 Proposed, 17 Finalized, 108 Finalized, 110 Rulemaking counts are based on estimates and require judgment. Values Refer to Number of Rulemaking Requirements 4
Dodd-Frank Rulemaking Progress by Agency As of June 1, 2012 Proposed, 51 Bank Regulators (135) Not Proposed, 47 Not Proposed, 1 Finalized, 39 CFTC (60) Proposed, 16 Not Proposed, 2 Proposed, 2 Not Proposed, 6 Finalized, 24 Proposed, 7 Proposed, 50 SEC (95) Not Proposed, 15 Proposed, 3 Finalized, 21 Not Proposed, 59 Other (108) Proposed, 5 Finalized, 26 Rulemaking counts are based on estimates and require judgment. Not Proposed, 6 Proposed, 10 Values Refer to Number of Rulemaking Requirements Not Proposed, 8 5
Title VII Progress on Required Rulemakings As of June 1, 2012 Finalized, 42 Proposed, 40 Not Proposed, 8 CFTC Progress on Required Title VII Rulemakings SEC Progress on Required Title VII Rulemakings Finalized, 34 Proposed, 9 Not Proposed, 3 Proposed, 20 Finalized, 6 Note: Total pie chart includes requirements from the CFTC, SEC and other regulators with rulemaking requirements under Title VII. 6
Dodd-Frank Rulemaking Progress on Passed Deadlines As of June 1, 2012 Total (221) Proposed, 127, 57% Not Proposed, 21, 10% Finalized: Deadline Passed, 73, 33% Bank Regulators (73) CFTC (53) SEC (73) Other (22) 51, 70% 36, 68% 50, 69% 10, 46% 16, 30% 8, 36% 6, 8% 16, 22% Rulemaking counts are based on estimates and require judgment. 17, 23% 6, 8% 1, 2% Values Refer to Number of Rulemaking Requirements 4, 18% 7
Asset-Backed Securities Offerings Dodd-Frank Rulemaking Progress in Select Categories 14 As of June 1, 2012 Banking Regulations 44 Collins Amendment 6 Consumer Protection 63 Credit Rating Agencies 22 Derivatives 90 Executive Comp. / Corp. Governance Mortgage Reforms Orderly Liquidation Authority Investment Advisers / Private Funds 7 14 21 49 Finalized Proposed Not Proposed Proposed Not Proposed Investor Protection / Securities Laws 11 Systemic Risk 28 0 10 20 30 40 50 60 70 80 90 100 Rulemaking counts are based on estimates and require judgment. Number of Required Rulemakings (Joint Rules are Counted for Each Applicable Agency) 8
3Q 2010 1 Dodd-Frank Rulemaking Progress by Due Date As of June 1, 2012 4Q 2010 4 1Q 2011 9 2Q 2011 26 3Q 2011 119 4Q 2011 37 1Q 2012 2Q 2012 25 Finalized 3Q 2012 4Q 2012 16 Proposed Not Proposed 1Q 2013 2Q 2013 3Q 2013 4Q 2013 Not Specified Annual 1 2 42 Proposed Not Proposed 116 0 20 40 60 80 100 120 140 Rulemaking counts are based on estimates and require judgment. Number of Required Rulemakings (Joint Rules are Counted for Each Applicable Agency) 9
3Q 2010 1 Dodd-Frank Statutory Deadlines for Required Rulemakings 4Q 2010 4 1Q 2011 9 2Q 2011 26 3Q 2011 119 4Q 2011 37 1Q 2012 25 2Q 2012 3Q 2012 16 4Q 2012 1Q 2013 42 2Q 2013 3Q 2013 1 4Q 2013 Not Specified 116 Annual 2 0 20 40 60 80 100 120 140 Bank Regulators CFPB CFTC SEC Other Rulemaking counts are based on estimates and require judgment. Number of Required Rulemakings (Joint Rules are Counted for Each Applicable Agency) 10
4Q 2010 3 Dodd-Frank Study Progress by Due Date As of June 1, 2012 1Q 2011 21 2Q 2011 1 3Q 2011 17 4Q 2011 3 1Q 2012 16 2Q 2012 3Q 2012 12 4Q 2012 2013 8 Not Specified 2 Annual 4 0 5 10 15 20 25 Finalized Deadline Deadline Number of Required Studies (Joint Studies are Counted for Each Applicable Agency) 11
4Q 2010 3 Dodd-Frank Statutory Deadlines for Required Studies 1Q 2011 21 2Q 2011 1 3Q 2011 17 4Q 2011 3 1Q 2012 16 2Q 2012 3Q 2012 12 4Q 2012 2013 8 Not Specified 2 Annual 4 0 5 10 15 20 25 Bank Regulators CFTC GAO SEC Other Number of Required Studies (Joint Studies are Counted for Each Applicable Agency) 12
Business/Trading Technology Tasks for Swap Dealers and Major Swap Participants As of June 1, 2012 591 706 This chart shows the number of tasks for swap dealers and major swap participants in CFTC and SEC releases that Davis Polk has extracted and categorized as part of our Regulatory Hub implementation website. As the rulemaking process matures, "progress" will shift from regulatory rulemaking to market implementation. Operations 1118 Legal 904 Records 402 0 200 400 600 800 1000 1200 For more information, please contact hub@davispolk.com. 13
200 180 Regulator Meetings with Outside Participants Over Time As of May 1, 2012 CFTC (1696) FDIC (208) FRB (514) SEC (1186) 160 140 120 100 80 60 40 20 0 7/10 8/10 9/10 10/10 11/10 12/10 1/11 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 In the spirit of transparency, several financial regulators have released details of their meetings with outside participants on Dodd-Frank issues. Based on the information available, there have been at least 2800 meetings with these regulators since July 1, 2010. Joint meetings (of which there were more than 200) are counted separately for each participating regulator. 14
About the Progress Report The Davis Polk Dodd-Frank Progress Report is a monthly publication that uses empirical data to help market participants and policymakers assess the progress of the rulemaking and other work that has been done by regulators under the Dodd-Frank Act. Access previous reports on our website. The Progress Report was developed using information from Davis Polk s subscriptionbased Regulatory Tracker TM product. For more information on the Regulatory Tracker, please contact tracker@davispolk.com or view our brochure. Required, proposed, final and missed rulemakings and studies are counted based on Davis Polk s tally of statutory requirements in the Davis Polk Regulatory Tracker. An agency s rule release may satisfy several statutorily required rulemakings. Where multiple agencies are required to issue a rule or study jointly, the requirement appears in each of their totals, which we believe most accurately reflects the staff burden on regulatory agencies. The term Bank Regulators includes the Board of Governors of the Federal Reserve, the FDIC and the OCC. 2011 Davis Polk & Wardwell LLP. This publication, which we believe may be of interest to our clients and friends of the firm, is for general information only. It is not a full analysis of the matters presented and should not be relied upon as legal advice. If you would rather not receive these memoranda, please respond to this email and indicate that you would like to be removed from our distribution list. If you have received this email in error, please notify the sender immediately and destroy the original message, any attachments thereto and all copies. Refer to the firm's privacy policy located at davispolk.com for important information on this policy. Please add Davis Polk to your Safe Senders list or add dpwmail@davispolk.com to your address book. For more information regarding the Progress Report, please contact dodd.frank.progress.report@davispolk.com. For more information regarding the Davis Polk Regulatory Tracker, please contact tracker@davispolk.com. 15
Questions? If you have any questions regarding the matters covered in this Progress Report, please contact any of the lawyers listed below or your regular Davis Polk contact. Daniel N. Budofsky 212 450 4907 daniel.budofsky@davispolk.com Luigi L. De Ghenghi 212 450 4296 luigi.deghenghi@davispolk.com John L. Douglas 212 450 4145 john.douglas@davispolk.com Susan C. Ervin 202 962 7141 susan.ervin@davispolk.com Randall D. Guynn 212 450 4239 randall.guynn@davispolk.com Arthur S. Long 212 450 4742 arthur.long@davispolk.com Annette L. Nazareth 202 962 7075 annette.nazareth@davispolk.com Lanny A. Schwartz 212 450 4174 lanny.schwartz@davispolk.com Margaret E. Tahyar 212 450 4379 margaret.tahyar@davispolk.com Gabriel D. Rosenberg 212 450 4537 gabriel.rosenberg@davispolk.com www.davispolkportal.com 16