Corporate & Financial Weekly Digest

Corporate & Financial Weekly Digest

Tag Archives: Banking

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

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

FFIEC Proposes New Consumer Compliance Rating System

Posted in Banking
On May 2, the Federal Financial Institutions Examination Council (FFIEC) proposed revisions to the current Uniform Interagency Consumer Compliance Rating System (CC Rating System). The revisions are intended to reflect the regulatory, supervisory, technological and market changes that have occurred in the years since the CC Rating System was established. The purpose of the new… Continue Reading

Federal Reserve Board Proposes Restrictions on Qualified Financial Contracts Used by Systemically Important Banking Organizations

Posted in Banking, Dodd-Frank Developments
On May 3, the Board of Governors of the Federal Reserve System (Board) reviewed a draft rule proposal that would require any US bank holding company identified as a global systemically important banking organization (GSIB), its subsidiaries and the US operations of any foreign GSIB (Covered Entities) to comply with new restrictions regarding non-cleared qualified… Continue Reading

Financial Regulatory Agencies to Issue New Proposed Compensation Rules

Posted in Banking, Dodd-Frank Developments
On April 21, the National Credit Union Administration issued proposed prototype regulations with other financial institution regulatory agencies (Agencies) to likely follow suit. Required under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Act), the rule is intended to (1) prohibit incentive-based payment arrangements that the Agencies determine encourage inappropriate risks by certain financial… Continue Reading

Federal Reserve to Expand Off-Site Examinations

Posted in Banking
On April 19, the Federal Reserve Board implemented new procedures for examiners to conduct off-site loan reviews for community and small regional banks under the Board’s jurisdiction. The Board is offering this option as part of its ongoing efforts “to improve efficiency and provide burden reduction while maintaining quality supervision.”… Continue Reading

FDIC Rescinds De Novo Time Period Extension

Posted in Banking
On April 6, the Federal Deposit Insurance Corporation (FDIC) rescinded Financial Institution Letter (FIL) 50-2009 entitled “Enhanced Supervisory Procedures for Newly Insured FDIC-Supervised Depository Institutions.” The FIL, among other measures, had extended the de novo period for newly organized, state nonmember institutions from three to seven years for examinations, capital maintenance and other requirements. It remains to… Continue Reading

FDIC Issues Guide to Corporate Governance

Posted in Banking
On April 5, the Federal Deposit Insurance Corporation (FDIC) issued a Director’s Guide to Corporate Governance (Guide) as part of its publication entitled Supervisory Insights. Among other things, the Guide provides the FDIC’s views on the respective duties of directors and officers of FDIC-insured institutions.… Continue Reading

Federal Reserve Board Proposes Enhanced Single-Counterparty Credit Limits for Large Banks

Posted in Banking, Dodd-Frank Developments
On March 4, the Federal Reserve Board (FRB) announced a re-proposal of rules that set single-counterparty credit limits for domestic and foreign bank holding companies with total consolidated assets of $50 billion or more. Prior versions of the rules, which will implement Section 165(e) of the Dodd-Frank Act, were proposed in 2011 and 2012.… Continue Reading

Regulators Issue New Guidance Related to Certain Prepaid Cards

Posted in Banking
On March 21, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration and the Financial Crimes Enforcement Network (collectively, the “regulators”) issued new guidance related to the application of customer identification (CIP) program requirements to prepaid card… Continue Reading

Federal Banking Agencies Expand Number of Banks Qualifying for 18-Month Examination Cycle

Posted in Banking
On February 19, federal banking agencies increased the number of small banks and savings associations eligible for an 18-month examination cycle rather than a 12-month cycle. The changes are intended to reduce regulatory compliance costs for smaller institutions, while still maintaining safety and soundness protections. Under the interim final rules, qualifying well-capitalized and well-managed banks and… Continue Reading

FDIC Approves Proposal on Deposit Recordkeeping Requirements in Large Bank Failures

Posted in Banking
On February 17, the Federal Deposit Insurance Corporation (FDIC) approved a proposal for recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts to facilitate rapid payment of insured deposits to customers if those institutions were to fail. The proposed rule would apply to insured depository institutions with more than 2 million deposit… Continue Reading

Federal Banking Agencies Release Economic Scenarios for 2016 Stress Testing

Posted in Banking
On February 7, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System (Board) jointly released the economic scenarios that will be used by certain financial institutions with total consolidated assets of more than $10 billion for stress tests, as… Continue Reading