Earlier this week, Senator Sherrod Brown (D-Ohio) introduced a bill, the “Close the Shadow Banking Loophole Act,” (Act) that is intended to close what is often termed a “loophole” in the Bank Holding Company Act (BHCA) because it allows …
FDIC
This week’s podcast episode: Use of the FDIC name and logo: proceed with caution
By Barbara S. Mishkin on
We discuss the FDIC’s final rule on misuse of the FDIC name or logo, advisory to insured banks on deposit insurance and dealings with crypto companies, and cease and desist letters to five crypto companies alleging they made false and …
Bi-partisan group of Senators urge FDIC not to target industrial loan companies for unfavorable treatment
By Scott A. Coleman on
Posted in FDIC
A bi-partisan group of nine Senators (five Republicans and four Democrats) recently sent a letter to Acting FDIC Chairman Martin Gruenberg to express their support for the industrial loan company (ILC) charter and to remind him “to ensure the [FDIC] …
White House announces two Republican nominees to FDIC Board of Directors
By Alan S. Kaplinsky on
Posted in FDIC
The White House has announced the names of two Republicans who President Biden is nominating to serve as members of the FDIC Board of Directors.
The FDIC Board of Directors has five members, two of whom are the Comptroller of …
This week’s podcast episode: A close look at the FDIC’s supervisory guidance and class action litigation regarding multiple non-sufficient funds fees arising from re-presentment of the same unpaid transaction
By Barbara S. Mishkin on
Posted in FDIC, Non-sufficient funds fees
We discuss each of the three categories of risk identified in the guidance (consumer compliance, third-party, and litigation), plaintiffs’ legal theories in class actions challenging NSF fees, the role of arbitration clauses and contract language in defending class actions, the …
FDIC issues cease and desist letters alleging false or misleading representations about deposit insurance on crypto-related products
By Brian Turetsky on
On August 19, 2022, the FDIC issued cease and desist letters to five crypto companies, alleging they made false and misleading statements about FDIC deposit insurance and demanding immediate corrective action. The five companies are FTX US, Cryptonews.com, CryptoSec.info, SmartAsset.com, …
FDIC issues guidance on multiple re-presentment NSF fees
By Scott A. Coleman & John L. Culhane, Jr. on
The FDIC has issued new supervisory guidance (FIL-40-2022) on multiple non-sufficient funds (NSF) fees arising from the re-presentment of the same unpaid transaction. The guidance directly applies only to state-chartered banks and thrifts that are not members of the Federal …
FDIC issues advisory on deposit insurance and crypto assets
By Ronald K. Vaske on
The FDIC has issued an “Advisory to FDIC-insured institutions Regarding Deposit Insurance and Dealings with Crypto Companies” to address the agency’s concerns regarding misrepresentations about FDIC deposit insurance by certain crypto companies. Of particular concern to the FDIC is …
FDIC updates enforcement manual for cease-and-desist actions
By Kaley Schafer on
Posted in FDIC, Regulatory and Enforcement
On July 25, 2022, the FDIC issued Financial Institution Letter (FIL)-34-2022 announcing updates to Chapters 1 and 4 of its Formal and Informal Enforcement Actions Manual (Manual). The Manual includes updates to the minimum standards for the FDIC’s termination of …
FinCEN and federal functional regulators issue coded warnings against de-risking
By Peter D. Hardy & Kaley Schafer on
On July 6, the Financial Crimes Enforcement Network (“FinCEN”), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, “the Agencies”) …