On April 15, the Treasury issued a direct final rule to eliminate several regulations or portions of regulations it deemed unnecessary in response to an Executive Order 14219 directing agencies to pursue deregulation. The Treasury’s final rule will go into effect June 16 without further action, unless significant adverse comment is received by May 15.
Under the direct final rule, the Treasury stated its plans to remove two regulations: the Federal Financing Bank Bills regulation and the Book-Entry Procedure for Federal Financing Bank Securities regulation — both of which were promulgated under the Federal Financing Bank Act. In the final rule, the Treasury stated these regulations are now obsolete due to changes in federal financing and market conditions affecting the operation of the Federal Financing Bank Act.
The Treasury also stated it will eliminate two regulations related to Troubled Asset Relief Program (TARP), promulgated under the Emergency Economic Stabilization Act of 2008. The Treasury’s final rule will repeal the Standards for Compensation and Corporate Governance under TARP, which provided guidance on executive compensation and corporate governance for entities receiving assistance under TARP. Additionally, the direct final rule repeals Conflicts of Interest regulations promulgated under TARP. Treasury explained there were no remaining obligations under TARP making the regulations no longer necessary.
Furthermore, the Treasury, including FinCEN, is eliminating a civil penalty rule providing penalties for certain violations of the Bank Secrecy Act. Treasury explained that these provisions have been made obsolete and redundant by updates to FinCEN regulations under the Federal Civil Penalties Inflation Adjustment Act, which requires annual adjustments for inflation and overlap with violations of the Bank Secrecy Act covered by the repealed civil penalty rule.
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