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FDIC
How to Improve the Bank Charter Application Process
New bank formation in the United States is at an all-time low, and Americans increasingly rely on non-bank financial technology companies (fintechs) to satisfy their financial services needs. Fintechs that do not operate through banks mostly operate outside the direct …
FDIC Chair Discusses Three Financial Crises and Lessons for the Future
For better or worse, over the course of my career, I have had the opportunity to participate in the response to three financial crises – the thrift and banking crisis of the 1980s and early 1990s as a member of …
Freshfields Discusses Trump Administration’s Effects on Bank Regulation
Bank stocks surged the day after Donald J. Trump won election to a second presidential term, recording double-digit gains on a widespread view that financial regulation under the new administration will be more industry friendly than in the current one. …
Davis Polk Discusses Key Takeaways from Bank Merger Policy Updates
The DOJ, FDIC and OCC have revised their bank merger review standards. The new standards are a major shift for bank M&A and will require a careful, detailed analysis to evaluate the viability of any proposed transaction.
The Federal Deposit …
Congress Should Repeal the Least-Cost Requirement for Resolving Failed Banks
Davis Polk Discusses FDIC Proposal to Expand Reach Over Bank Holding Company Investments
The Federal Deposit Insurance Corporation (FDIC) recently proposed and published a Federal Register notice for a proposed rule that would revise the agency’s Change in Bank Control Act (CIBCA) regulations. Specifically, the proposed rule would add a second layer …
Skadden Discusses Banking Agencies’ Increasing Scrutiny of Bank-Fintech Partnerships
On July 25, 2024, the U.S. prudential bank regulators released a Joint Statement on Banks’ Arrangements With Third Parties To Deliver Bank Deposit Products and Services (Joint Statement),1 along with a request for information on bank-fintech arrangements (RFI) issued …
Debevoise Discusses Proposed FDIC Regulations on Brokered Deposits
On July 30, 2024, on a party line 3-2 vote of its Board of Directors, the Federal Deposit Insurance Corporation (the “FDIC”) approved a Notice of Proposed Rulemaking[1] (the “Proposal” or the “Proposed Rule”) to substantially broaden the scope …
Sullivan & Cromwell Discusses Banking Agencies’ Request for Information About Bank Relationships with Fintechs
On July 25, 2024, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (together, the “Agencies”) issued a request for information (the “RFI”)[1] regarding arrangements …
Sullivan & Cromwell Discusses Agency Proposals for More Restrictive Rules on Incentive Compensation
On May 6, 2024, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Federal Housing Finance Agency re-proposed their joint rule to implement Section 956 of the Dodd-Frank Act, which requires federal financial regulators …
Davis Polk Discusses RECOUP Act’s Clawbacks of Failed-Bank Executives’ Compensation
In a recent opinion piece in the Washington Post, former FDIC Chair Sheila Bair and leading British bank historian Charles Goodhart argued in favor of the executive compensation clawback provision in the proposed RECOUP Act, which we analyzed …
Arnold & Porter Discusses OCC, FDIC Policy Statements on Bank Merger Scrutiny
In recent months, the U.S. banking regulators have proposed policy statements focused on providing greater insight on the agencies’ review of bank mergers and acquisitions under the Bank Merger Act (BMA).[1] On January 29, 2024, the Office of the …
Davis Polk Discusses FDIC’s Proposed Statement of Policy on Bank Mergers
The Federal Deposit Insurance Corporation (FDIC) released a Proposed Statement of Policy on Bank Merger Transactions (the Proposal) that outlines the FDIC’s views on its jurisdiction and expectations with respect to each statutory factor under the Bank Merger Act (BMA).…
How Technology Investment Drives Community Bank Consolidation
From 2011 to 2019, the number of bank charters fell by nearly one-third, from 7,357 to 5,177, with community banks accounting for three-quarters of this decline (FDIC Community Bank Report, 2020) In a new paper, we presents compelling …
Davis Polk Analyzes Comment Letters to FDIC Corporate Governance Proposal
In October 2023, the FDIC proposed enforceable guidelines on corporate governance and risk management that would apply to all state non-member banks with $10 billion or more in assets.
Key Facts:
- The comment period closed on February 9, 2024
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Davis Polk Discusses Special FDIC Assessment to Recover SVB and Signature Bank Losses
The FDIC’s final special assessment is largely unchanged from the proposed rule:
- The assessment base is equal to the amount of an insured depository institution’s (IDI) uninsured deposits, as reported for the quarter ended December 31, 2022, minus up to
Morrison & Foerster Discusses Federal Banking Agencies’ Adoption of Climate-Related Financial Risks Guidance
On October 24, 2023, the Federal Reserve Board (FRB), the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (together, the “Agencies”) released their final Principles for Climate-Related Financial Risk Management for Large Financial Institutions (the …
Debevoise Discusses Proposed FDIC Guidelines for Corporate Governance and Risk Management
On October 11, 2023, the Federal Deposit Insurance Corporation (the “FDIC”) published in the Federal Register for comment a notice of proposed rulemaking to establish new guidelines (the “Proposed Guidelines”) for governance and risk management at FDIC-supervised insured depository institutions …
Davis Polk Discusses the Role of the Board Under Proposed FDIC Guidelines
The Federal Deposit Insurance Corporation (FDIC) has proposed enforceable guidelines on corporate governance and risk management that would apply to all state non-member banks with assets greater than $10 billion (the Proposed FDIC Guidelines). The proposal was issued over two …