On December 15, 2020, the Federal Deposit Insurance Corporation (“FDIC”) issued a final rule (“Final Rule”) setting forth standards to apply to controlling shareholders of industrial banks that are not subject to consolidated supervision by the Board of Governors of the Federal Reserve System. The Final Rule is substantially similar to the FDIC’s proposal announced… Read More
On June 25, 2020, following the OCC’s lead, the Federal Deposit Insurance Corporation’s (FDIC) board of directors voted 3-1 to finalize a rule that reaffirms the “valid when made” doctrine as applicable to loans originated by state-chartered banks and insured branches of foreign banks. The FDIC believes that reaffirmation of a state bank’s ability to… Read More
On May 20, 2020, the OCC published a final rule intended to modernize the rules implementing the Community Reinvestment Act (“CRA”). While the CRA is administered jointly by the OCC, the FDIC, and the Federal Reserve, the OCC alone is moving forward with the regulatory overhaul. As a result, the final rule’s changes apply only… Read More
On March 17, 2020, the Federal Deposit Insurance Corporation (FDIC) announced two significant developments relating to industrial banks (also sometimes called industrial loan companies). First, in a notice of proposed rulemaking (NPR), the FDIC laid out the regulatory regime it expects to apply to companies not subject to consolidated supervision by the Board of Governors… Read More
On February 10, 2020, the Federal Deposit Insurance Corporation (FDIC) published a proposed rule intended to modernize the regulatory treatment of brokered deposits (Proposed Rule). The Proposed Rule would amend 12 C.F.R. parts 303 and 337 to set forth the regulatory scheme for determining whether deposits placed through deposit placement arrangements are classified as brokered… Read More
The Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation have taken steps to reaffirm the “valid when made” doctrine in response to Madden. We discuss the key takeaways from the agencies’ proposed rules and how this will affect all national banks and state banks. Read our client alert.
On August 20, 2019, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) approved a final rule which will amend the Volcker Rule to simplify and tailor compliance with Section 13 of the Bank Holding Company Act’s restrictions on a bank’s ability to engage in proprietary trading and… Read More
On August 20, 2019, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation approved significant amendments to the Volcker Rule regulations. These amendments address to some extent industry concerns about the complexity of the existing regulations and certain other aspects that have been seen as disruptive of markets. On the whole, the amendments… Read More
On April 8 and 16, 2019, the Federal Reserve and the FDIC published proposed changes to resolution plan (or “living will”) requirements applicable to U.S. and foreign banking organizations. The regulatory changes are necessary because the 2018 Regulatory Relief Act raised the asset thresholds for applicability of the living will requirements. The proposal would apply different… Read More
Yesterday, five federal agencies – the Federal Reserve Board, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Bureau of Consumer Financial Protection – issued a two-page, joint statement on the role of supervisory guidance for regulated institutions. Although brief, the joint statement is… Read More
On March 7, 2018, the FDIC entered into a consent order with The Bancorp Bank for allegedly inaccurate disclosures concerning the amount of transaction fees assessed on cardholders. This consent order is the latest in a series of consent orders from federal agencies in recent years regarding allegedly inadequate or misleading account disclosures. Read our… Read More
An ILC, or industrial loan company, is a form of bank that can be chartered in Utah, Nevada, and a few other states. ILCs are insured by the FDIC and have most traditional banking powers, but they cannot hold corporate checking accounts. Significantly, an ILC is not a bank under the Bank Holding Company Act,… Read More
On May 11, 2017, the FDIC announced that it had reached settlements with Bank of Lake Mills and two of its “institution-affiliated parties””—Freedom Stores, Inc. and Military Credit Services, LLC—for allegedly engaging in unfair and deceptive practices in violation of Section 5 of the FTC Act. Read our client alert.
On October 19, 2016, the Federal Deposit Insurance Corporation, the Federal Reserve Board and the OCC (collectively, the Agencies) released an Advanced Notice of Proposed Rulemaking (ANPR) laying out a framework for enhanced cyber risk management standards that the Agencies are considering requiring of certain “large and interconnected” financial institutions. The Agencies have not yet proposed… Read More
On July 29, 2016, the board of directors of the Federal Deposit Insurance Corporation (FDIC) released a proposal regarding third-party lending guidance (“Proposed Guidance”) as part of a package of materials designed to “improve the transparency and clarity of the FDIC’s supervisory policies and practices.” The Proposed Guidance elaborates on previously issued agency guidance on managing third-party risks and,… Read More
On May 10, 2016, the U.S. Department of the Treasury (“Treasury”) issued a white paper, entitled “Opportunities and Challenges in Online Marketplace Lending” (“White Paper”). The White Paper describes Treasury’s review of online marketplace lending and provides Treasury’s recommendations to the private sector and the federal government on how to encourage “safe growth” in the… Read More
In August 2010, Morrison & Foerster published the client alert “Dodd-Frank, Title II: Where the FDIC and the ‘Orderly Liquidation Authority’ Meet the Bankruptcy Code.” Click here to read the full alert.
On December 23, 2015, the Federal Reserve Board (“Federal Reserve”) and the Federal Deposit Insurance Corp. (“FDIC” and, collectively with the Federal Reserve, the “Agencies”) announced settlements with Higher One, Inc. (“Higher One”) for alleged violations of the prohibition against deceptive acts and practices under Section 5 of the Federal Trade Commission Act. In conjunction… Read More
In October 2013, Morrison & Foerster published the client alert “Interagency Fair Lending Guidance: A First Step, but in the Right Direction?”. To read the alert, click here.
On September 10, 2014, 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”) requested comment on their proposed revisions to interagency guidance on the Community Reinvestment Act (CRA), specifically to the Interagency Questions and Answers Regarding Community Reinvestment… Read More
This Wednesday, October 22, 2014, federal enforcement and regulatory agencies are hosting an interagency webinar on emerging fair lending issues and hot topics. Representatives from seven agencies—the DOJ, CFPB, FDIC, OCC, Fed, HUD, and NCUA—will participate. The discussion includes the agencies’ expectations for institutions’ compliance management systems and fair lending risk assessments, fair lending risk associated with… Read More