On July 25, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the agencies) issued a “Joint Statement on Banks’ Arrangements with Third Parties to Deliver Bank Deposit Products and Services” to “note potential risks related to arrangements between banks and third parties to deliver bank deposit products and services to end users”.… Continue Reading
FDIC board approves NPRM that would increase recordkeeping for custodial accounts
By Ronald K. Vaske & Kristen E. Larson on
Posted in FDIC
On September 17, 2024, the FDIC board approved a notice of proposed rulemaking that would increase recordkeeping obligations for bank deposits received from third party, non-bank companies that accept those deposits on behalf of consumers and businesses.
Agency officials said that non-banks often deposit funds together into a single custodial account.… Continue Reading
FDIC, OCC and Justice Department update bank merger guidelines
By Scott A. Coleman & Beau Hurtig on
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
FDIC Releases Second Set of Q&As on Required Use of FDIC Logo
By Ronald K. Vaske & John L. Culhane, Jr. on
Posted in FDIC, FDIC Supervision
The FDIC has issued a revised list of Q&As concerning the agency’s new rule governing the use of the agency’s official sign.
The Q&As are a collection of the most frequently asked questions from stakeholders. The FDIC released its first list of Q&As in July; the agency’s said it will update them, as needed.… Continue Reading
Plaintiffs oppose Colorado’s motion for a stay of the preliminary injunction in the Colorado opt-out litigation
Very soon, briefing by the parties in the 10th Circuit will commence with respect to Colorado’s appeal of a preliminary injunction entered by the Federal District Court for the District of Colorado. The District Court enjoined the Colorado Attorney General and UCCC Administrator from applying to out-of-state, state banks making loans to Colorado residents its (1) recently enacted statute opting out of Section 521 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (the “DIDMCA”) (conferring on state-chartered, FDIC-insured banks the same right to export interest rates as Section 85 of the National Bank Act) pursuant to Section 525 of the DIDMCA and (2) Colorado’s usury laws.… Continue Reading
FDIC Seeking Comments on Industrial Bank Rule Changes
Posted in FDIC
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
Financial Regulators Propose Standards to Promote Interoperability of Data
On August 2, 2024, the CFPB, the OCC, the Federal Reserve Board, the FDIC, the NCUA, the FHFA, the CFTC, the SEC and the Treasury Department proposed a joint rule intended to establish standards to promote the ability of each of the agencies to exchange and use the data that the other agencies collect (referred to as the “interoperability” of financial data across the agencies).… Continue Reading
Tenth Circuit sets briefing schedule in appeal from preliminary injunction granted to trade groups with respect to Colorado opt-out statute
We are following very closely this appeal to the 10th Circuit of the preliminary injunction issued by the Federal District Court for the District of Colorado to the plaintiffs (three trade groups) enjoining the Colorado Attorney General and UCCC Administrator from enforcing the new Colorado opt-out statute against out-of-state, state banks who made loans from out-of-state to Colorado residents.… Continue Reading
FDIC Urges Financial Institutions to Complete Voluntary Diversity Self-Assessments
By Dee Spagnuolo & Brian D. Pedrow on
The FDIC is urging financial institutions it supervises to voluntarily submit self-assessments of their diversity policies and practices to the agency by Oct. 31, 2024.
The agency said that the self-assessment is not an examination requirement and that the results are not shared with examiners. The results also have no impact on an institution’s safety and soundness, its consumer compliance ratings or its Community Reinvestment Act performance evaluation, the agency said.… Continue Reading
FDIC Seeking Comments on Including Uninsured Deposit Data on Call Reports
Posted in FDIC, FDIC Supervision
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