EQUATION 1 TO PARAGRAPH (A)(2)
BBCRADJ = BBCRDS·CRSM· AS
Where:
BBCRDS is equal to the building block capital requirement of the downstream building block parent recalculated under the assumption that the downstream building block parent had no upstream investment in the building block parent;
CRSM is equal to the appropriate capital requirement scaling modifier under § 217.606 ; and
AS is equal to the building block parent's allocation share of the downstream building block parent.
Note 1 to paragraph (b)(2) introductory text:
The adjustment can be either positive or negative depending on the permitted or prescribed practices. In most cases, the reversal of the permitted or prescribed practice would result in an increase in the building block parent's company required capital. In rare cases, a permitted or prescribed practice could increase the insurers required capital. In this instance, this adjustment would reduce the building block parent's company required capital.
12 C.F.R. §217.607