Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Category Archives: Banking

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Federal Reserve Restricts Termination of Qualified Financial Contracts

Posted in Banking
On September 1, the Board of Governors of the Federal Reserve System adopted a final rule that will affect the rights of counterparties that enter into Qualified Financial Contracts (QFC) (e.g., derivatives, stock loans and repurchase agreements) with banks that have been designated as global systemically important banking organizations (GSIBs). This rule, which was proposed… Continue Reading

FDIC Issues Revised Guidelines for Appeals of Material Supervisory Determinations

Posted in Banking
On September 6, the Federal Deposit Insurance Corporation (FDIC) issued revised guidelines entitled “Guidelines for Appeals of Material Supervisory Determinations”, which govern appeals by all FDIC-supervised institutions to Division Directors and the Supervision Appeals Review Committee. These revised guidelines expand the circumstances under which banks may appeal a material supervisory determination, enhance consistency with the… Continue Reading

OCC Seeks Volcker Rule Comments

Posted in Banking
On August 2, the Office of the Comptroller of the Currency provided further evidence that change may be forthcoming for banks subject to the Volcker Rule (Section 13 of the Bank Holding Company Act of 1956) by issuing a notice soliciting suggestions and recommendations for revising the regulations implementing the Volcker Rule to better accomplish… Continue Reading

CFPB Seeks Comment on Proposed Changes to Prepaid Rule

Posted in Banking
On June 15, the Consumer Financial Protection Bureau (CFPB), announced that it is seeking comments on proposed updates to its prepaid rule, “Prepaid Accounts under the Electronic Fund Transfer Act (Regulation E) and the Truth In Lending Act (Regulation Z)” (Prepaid Rule). The Prepaid Rule incorporates prepaid accounts under Regulations E and Z and was… Continue Reading

OCC Issues FAQs on Managing Third-Party Relationships

Posted in Banking
On June 7, the Office of the Comptroller of the Currency (OCC) issued frequently asked questions (FAQs) to supplement OCC Bulletin 2013-29, “Third-Party Relationships: Risk Management Guidance,” which was originally issued on October 30, 2013. These FAQs address questions from national banks and federal savings associations. The FAQs and underlying OCC Bulletin 2013-29 apply to… Continue Reading

Federal Banking Agencies Issue Advisory on the Availability of Appraisers

Posted in Banking
On May 31, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the National Credit Union Administration jointly issued an advisory addressing concerns from the financial industry regarding its perceived shortage of state certified and licensed appraisers, particularly in rural areas.… Continue Reading

CFPB Requests Information Regarding the Small Business Lending Market

Posted in Banking, Dodd-Frank Developments
On May 10, the Consumer Financial Protection Bureau (CFPB) held a field hearing and issued a notice and request for information related to the small business lending market. Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Equal Credit Opportunity Act to require “financial institutions” (as defined in Section 1071)… Continue Reading

CFPB’s Prepaid Cards Rule Escapes Coverage Under the Congressional Review Act

Posted in Banking
Under the Congressional Review Act (CRA), Congress can review and overrule any federal regulations imposed during the final six months of the previous administration with a simple majority vote in each branch of Congress. However, Congress’ power is limited under the CRA because it can only introduce and vote on a CRA resolution within 60… Continue Reading

EU and Prudential Regulators Issue Statements on March 1 Compliance With Swap Margin Rules

Posted in Banking, Derivatives, Dodd-Frank Developments
Lacking the ability to issue formal no-action relief from strict compliance with the variation margin rules for uncleared swaps coming into effect on March 1, the Board of Governors of the Federal Reserve System, the Office of Comptroller of the Currency (OCC) and the European Supervisory Authorities (ESA) have each issued statements suggesting that they… Continue Reading

Federal Regulators Issue FAQs on New Credit Losses Accounting Standard

Posted in Banking
On June 16, 2016, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2016-13, Topic 326, Financial Instruments – Credit Losses, which implemented the current expected credit losses methodology (CECL) for estimating allowances for credit losses. This new accounting standard applies to all banks, savings associations, credit unions and financial institution holding companies,… Continue Reading

FFIEC Streamlines Call Reports for Small Institutions

Posted in Banking
The Federal Financial Institutions Examination Council (FFIEC) published a Federal Register notice on December 30, 2016, finalizing the reporting requirements for a new and streamlined call report (Call Report) for small financial institutions. Institutions with less than $1 billion in assets and with only domestic offices will be eligible to file this new streamlined report.… Continue Reading

Federal Banking Agencies Finalize Rules Increasing Number of Banks and Savings Associations Eligible for 18-Month Examination Cycle

Posted in Banking
On December 12, the Federal Deposit Insurance Corporation, Federal Reserve Board and Office of the Comptroller of the Currency issued joint final rules permitting these federal banking agencies to conduct examinations every 18 months instead of every 12 months for qualifying insured depository institutions with less than $1 billion in total assets. These final rules… Continue Reading

FDIC Approves Final Rule on Recordkeeping for Timely Deposit Insurance Determination

Posted in Banking
On November 15, the Federal Deposit Insurance Corporation (FDIC) approved a final rule detailing recordkeeping requirements for FDIC-insured depository institutions with more than 2 million deposit accounts (Covered Institutions) to facilitate rapid payment of insured deposits to customers should those institutions fail. The FDIC estimates that 38 depository institutions currently qualify as Covered Institutions.… Continue Reading

Banking Regulators Issue Dodd-Frank Report on Bank Activities and Investments

Posted in Banking, Dodd-Frank Developments
On September 8, the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) issued a report (Report) that they were required to prepare pursuant to section 620 of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd–Frank). The primary… Continue Reading

OCC Releases Bank Supervision Operating Plan for Fiscal Year 2017

Posted in Banking
On September 14, the Office of the Comptroller of the Currency (OCC) released its bank supervision operating plan for fiscal year (FY) 2017. “Our FY 2017 operating plan helps institutions regulated by the OCC to better understand our supervisory priorities,” said Comptroller of the Currency Thomas J. Curry. “The plan provides the foundation for policy… Continue Reading

OCC Rule Would Prohibit Bank and Thrift Dealing and Investing in Industrial or Commercial Metals

Posted in Banking
On September 8, the Office of the Comptroller of the Currency (OCC) proposed a rule to prohibit national banks and federal savings associations (FSAs) from dealing and investing in industrial or commercial metals. The proposal covers metal, including alloy, in a physical form primarily suited to industrial or commercial uses, such as copper cathodes and… Continue Reading

FFIEC Publishes Revised Information Security Booklet

Posted in Banking
On September 9, the Federal Financial Institutions Examination Council (FFIEC) released its revised the “Information Security” booklet of the FFIEC Information Technology Examination Handbook (IT Handbook). The “Information Security” booklet, one of 11 that make up the IT Handbook, provides guidance to examiners and addresses factors necessary to assess the level of security risks to a financial… Continue Reading

Banking Agencies Issue CRA Questions and Answers

Posted in Banking
On July 15, the federal bank regulatory agencies with responsibility for Community Reinvestment Act (CRA) rulemaking—the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC)—published final revisions to the “Interagency Questions and Answers Regarding Community Reinvestment.” The Questions and Answers document… Continue Reading

Financial Accounting Standards Board Issues New Loan Loss Rule

Posted in Banking
On June 16, the Financial Accounting Standards Board (FASB) issued its new and long-expected loan loss accounting framework, also known as the current expected credit loss model (CECL). Bank regulators have described CECL as the “biggest change to bank accounting ever,” a sentiment which has been echoed by accountants, bank securities lawyers and industry trade… Continue Reading

Consumer Financial Protection Bureau Releases Proposed Payday Rules

Posted in Banking, Dodd-Frank Developments
On Thursday, June 2, the Consumer Financial Protection Bureau (CFPB) released proposed rules affecting the payday and short-term loan industry as part of its authority to prohibit the use of unfair or abusive acts and practices in connection with the provision of consumer financial products and services under the Dodd-Frank Wall Street Reform and Consumer… Continue Reading

FDIC Extends Comment Period on Deposit Account Recordkeeping Proposal

Posted in Banking
On May 20, the Federal Deposit Insurance Corporation (FDIC) extended the comment period for proposed recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts. The proposed recordkeeping requirements, “which are designed to facilitate rapid payment of insured deposits to customers if large institutions were to fail,” were published in the Federal Register… Continue Reading

Agencies Issue Guidance on Deposit-Reconciliation Practices

Posted in Banking
On May 18, the Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System (FRB), the Consumer Financial Protection Bureau (CFPB), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) (collectively, the Agencies) issued guidance outlining joint supervisory expectations regarding deposit-reconciliation practices that may… Continue Reading

Consumer Financial Protection Bureau To Outlaw Mandatory Pre-Dispute Arbitration Provisions

Posted in Banking, Dodd-Frank Developments
On May 5, the Consumer Financial Protection Bureau (Bureau) issued a proposed rule that would prohibit covered providers of certain consumer financial products and services from using an agreement with a consumer that provides for arbitration of any future dispute between the parties to bar the consumer from filing or participating in a class action… Continue Reading