Derivatives Supervision Act of 1994

TABLE OF CONTENTS:

Title I: Federal Derivatives Commission

Title II: Supervisory Improvements

Title III: Financial Institution Insolvency Reforms

Title IV: Miscellaneous

Derivatives Supervision Act of 1994 - Title I: Federal Derivatives Commission - Establishes the Federal Derivatives Commission to establish principles and standards for Federal oversight of financial institutions engaged in derivatives activities (activities by a financial institution involving qualified financial contracts such as securities, commodity and forward contracts, repurchase and swap agreements, or similar agreements determined to be qualified).

Directs the Commission to: (1) establish a liaison committee to encourage the application of uniform examination standards by State and Federal supervisory agencies; and (2) develop training seminars in risk management related to derivatives activities for Federal regulatory personnel and the employees of financial institutions.

Directs the Chairman of the Board of Governors of the Federal Reserve System to encourage governments, central banks, and regulatory authorities of other industrialized countries to work toward adopting and maintaining certain supervisory and capital standards for financial institutions engaged in derivatives activities.

Mandates that insured credit unions be supervised for purposes of derivatives activities by the National Credit Union Administration under standards no less stringent than those for Federal depository institutions.

Title II: Supervisory Improvements - Declares that failure of an institution-affiliated party engaged in derivatives activities to have adequate technical expertise may be deemed by a Federal regulatory agency to constitute an unsafe or unsound banking practice.

Amends the International Banking Act of 1978 to include as a prerequisite for approval of a foreign bank office in the United States that its derivatives activities are subject to comprehensive regulation in its home country.

Title III: Financial Institution Insolvency Reforms - Amends the Federal Deposit Insurance Act and Federal bankruptcy law to reflect the provisions of this Act.

Amends the Federal Deposit Insurance Act to declare that no restraint issued by an adjudicative or administrative body shall limit the ability of the Federal Deposit Insurance Corporation (FDIC) to exercise its authority. Directs the FDIC to prescribe expanded recordkeeping requirements for qualified financial contracts (including market valuations) by undercapitalized insured depository institutions.

States that, for parties to qualified financial contracts which have been transferred by the FDIC in its receivership capacity, notification of transfer by the end of the business day following appointment as a receiver shall disallow a party to terminate or liquidate such a contract.

Title IV: Miscellaneous - Sets forth savings provisions.