Scott A. Coleman

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Mississippi Bankers Association, the American Bankers Association, the Consumer Bankers Association, America’s Credit Unions, and three banks are seeking a preliminary injunction blocking the CFPB from implementing the bureau’s controversial overdraft rule finalized just a month prior to the Trump Administration change and expected CFPB leadership change.

We suspect that the plaintiffs will be able to easily establish the factors necessary for the court to grant a preliminary injunction in this case.… Continue Reading

The CFPB has issued its long-awaited final rule that covers overdraft policies at financial institutions with at least $10 billion in assets. The final rule offers those financial institutions three options for designing their overdraft programs.

The rule came one day after Senate Banking Committee ranking Republican Sen. Tim Scott, R-S.C.… Continue Reading

The FDIC, the OCC and the Justice Department earlier this month issued updated standards for bank mergers. The three agencies acted separately, although officials noted that they had worked with the other agencies involved.

“Continued engagement with our fellow regulators is vitally important, especially as it relates to evaluating the competitive effects of mergers,” FDIC Chairman Martin Gruenberg said.… Continue Reading

A group of 11 financial services associations is calling on the FDIC to withdraw its notice of proposed rulemaking intended to strengthen the prudential protections of the agency’s safety and soundness rule for brokered deposits (12 CFR 337.6).

The agency, the groups wrote in a letter, has failed to justify the need for the rule.… Continue Reading

The FDIC is seeking comment on proposed changes to its regulation governing parent companies of industrial banks and industrial loan companies—Part 354 of the FDIC Rules and Regulations.

“The proposed amendments would revise part 354 to clarify and enhance the agency’s framework to supervise industrial banks, mitigate risks to the Deposit Insurance Fund, and provide necessary transparency for market participants,” the agency said, in outlining the proposed rule.… Continue Reading

The FDIC board on July 30 approved a notice of proposed rulemaking intended to strengthen the prudential protections of the agency’s safety and soundness rule for brokered deposits (12 CFR 337.6).

The proposal would subject brokered deposits to heightened regulation as well as expand the definition of brokered deposits, including by eliminating certain exceptions to the rule.… Continue Reading

The FDIC board on July 30 agreed to request information on deposit data that currently is not reported in the Federal Financial Institutions Examination Council’s Call Reports—including data on uninsured deposits.

“Through this RFI, the FDIC is seeking information on characteristics that affect the stability and franchise value of different types of deposits to further evaluate whether and to what extent certain types of deposits may behave differently from each other, particularly during periods of economic or financial stress,” the agency said, in explaining its desire for the data.… Continue Reading

Federal banking regulators are asking the Fifth Circuit Court of Appeals to lift a Texas court injunction barring implementation of new Community Reinvestment Act (CRA) rules.

In asking the court to lift the injunction, the FDIC, OCC and Federal Reserve Board contend that U.S. District Judge Matthew Kacsmaryk erred by finding that only the geographic area around a bank’s physical facilities should be taken into account when assessing the financial institution’s record of meeting community needs under the CRA.… Continue Reading

In a recent report, the Congressional Research Service stated that capital formation remains the largest obstacle hampering the formation of de novo banks, but regulatory and legislative changes that have been proposed could risk an increase in bank failures

“While each aspect of evaluating an application imposes a cost on the proposed bank, it is likely the capital considerations that present the largest cost and thus the biggest impediment to forming a new bank,” the CRS said in “De Novo Banks: Policy Issues for the 118th Congress.”… Continue Reading