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OCC Moves Forward on Fintech Bank Charters

March 16, 2017

Authors

Dan Wheeler and Jonathan Hightower

OCC Moves Forward on Fintech Bank Charters

March 16, 2017

by: Dan Wheeler and Jonathan Hightower

Amid criticism from virtually every possible constituency, on March 15, 2017, the Office of the Comptroller of the Currency (OCC) released a draft supplement  to its chartering licensing manual related to special purpose national banks leveraging financial technology, or fintech banks. As we indicated in our fintech webinar discussing the proposal last December, the OCC is proposing to apply many conventional requirements

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Is the OCC on a Path to Greater Power?

December 6, 2016

Authors

Robert Klingler

Is the OCC on a Path to Greater Power?

December 6, 2016

by: Robert Klingler

bankthinkbankthinkIn a recent American Banker BankThink article, Partner Dan Wheeler explores the possibility that the OCC could rise in stature, while the other banking regulatory agencies fall out of favor.  By largely staying out of Congress’ scrutiny and

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A Significant Change in the Regulatory Oversight of Third-Party Relationships

April 7, 2014

Authors

Bryan Cave

A Significant Change in the Regulatory Oversight of Third-Party Relationships

April 7, 2014

by: Bryan Cave

Both Banks and Their Vendors Must Pay Attention

Introduction

First there was the bulletin about third-party vendors issued by the Consumer Financial Protection Bureau (CFPB) in April 2012. Then it was the FFIEC’s guidance on IT service providers in October 2012.  Next came the FDIC’s September 2013 Financial Institution Letter about payment-processing relationships with high-risk merchants.  Then there was the news on October 30, 2013 about the OCC’s guidance on third-party relationships, followed shortly by the Federal Reserve Board’s guidance on managing outsourcing risks in December 2013.

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Regulators Go After Banks for Vendor Management

February 20, 2014

Authors

Bryan Cave

Regulators Go After Banks for Vendor Management

February 20, 2014

by: Bryan Cave

While the issue of vendor oversight and management is not new to the financial services industry, recent enforcement actions by the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) manifest heightened attention by federal regulators.  A bank’s board of directors is required to remain vigilant to the hazards posed by outsourcing functions to third parties, or else risk significant financial and reputational harm to its institution.

Federal regulators traditionally have looked with an understanding, yet skeptical, eye towards the issue of outsourcing. Current guidance is clear, however, as to where the responsibility lies.

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OCC Issues New Third-Party Relationship Risk Management Guidance

November 26, 2013

Authors

Bryan Cave

OCC Issues New Third-Party Relationship Risk Management Guidance

November 26, 2013

by: Bryan Cave

On October 30th, the OCC issued new guidance on third-party relationships and associated risk management. The Bulletin, OCC 2013-29, rescinded and replaced prior guidance on this subject (OCC Bulletin 2001-47 and OCC Advisory Letter 2000-9) but specifically retained numerous other OCC and interagency issues on third-party relationships as listed in Appendix B to the Bulletin.

The Bulletin states that the OCC expects a bank to have risk management processes that are commensurate with the level of risk and complexity of the relationship. It details the expected management of all aspects of third-party relationships and is more specific

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Fall 2012 Update on Regulatory and Legal Changes Affecting Community Banks

October 30, 2012

Authors

Dan Wheeler

Fall 2012 Update on Regulatory and Legal Changes Affecting Community Banks

October 30, 2012

by: Dan Wheeler

Bank regulators have been as busy as usual in 2012, but some of the more interesting regulatory and legal changes have come from non-bank regulators and the courts. And, the JOBS Act changes described below actually lifts the regulatory burden on banks a bit, a rare respite in an otherwise challenging regulatory environment.

The JOBS Act eases bank capital activities and M&A.  The Jumpstart Our Business Startups Act affects community banks in 4 key ways:

OCC Releases Stress Testing Guidance for Community Banks

October 22, 2012

Authors

Jonathan Hightower

OCC Releases Stress Testing Guidance for Community Banks

October 22, 2012

by: Jonathan Hightower

On October 18, 2012, the OCC released stress testing guidance  for national banks and federal savings associations with $10 billion or less in total assets.  While the regulatory authorities clarified in May of this year that the Supervisory Guidance on Stress Testing for Banking Organizations with More than $10 Billion in Total Consolidated Assets would not apply to community banks, the OCC has now confirmed that the stress testing requirements in Dodd-Frank have “trickled down” to community banks, at least to those regulated by the OCC. The guidance states that appropriate stress testing should be performed

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Legal Lending Limits and Credit Exposure for Derivatives

October 9, 2012

Authors

Jerry Blanchard

Legal Lending Limits and Credit Exposure for Derivatives

October 9, 2012

by: Jerry Blanchard

On June 20, 2012,  the OCC issued an interim final rule (the “Rule”) that amends its existing regulations on legal lending limit in response to Section 610 of the Dodd Frank Act. Section 610 amended the federal lending limits statute, (12 USC § 84) to include credit exposures arising from derivative transactions and repurchase agreements, reverse repurchase agreements, securities lending transactions, and securities borrowing transactions. The Rule also takes into account differences that existed between national banks and saving associations and preserves some of the statutory exceptions that savings associations previously enjoyed. The Rule provides three different methods for

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Financial Services Update – July 29, 2011

August 3, 2011

Authors

Matt Jessee

Financial Services Update – July 29, 2011

August 3, 2011

by: Matt Jessee

Q2 GDP Announced

On Friday, the Commerce Department released its report on the country’s gross domestic product for the second quarter showing that the GDP grew at an annual rate of 1.3 percent, after having grown at an annual rate of 0.4 percent in the first quarter — a number that itself was revised sharply down from earlier estimates of 1.9 percent.

Senate to Hold CFPB Nomination Hearing

On Thursday, the Senate Banking Committee held a hearing on the nomination of Richard Cordray to be the new Director of the Consumer Financial Protection Bureau. While the nomination can be sent

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GAO Opines that Enhanced CRE Guidance Needed

May 31, 2011

Authors

Robert Klingler

GAO Opines that Enhanced CRE Guidance Needed

May 31, 2011

by: Robert Klingler

On May 19, 2011, the Government Accountability Office published its report on the federal banking regulators’ 2006 interagency guidance on commercial real estate concentrations.  The GAO report concludes that federal banking regulators should enhance or supplement the 2006 CRE concentration guidance and take steps to better ensure that such guidance is consistently applied.

The GAO report indicates that the OCC and Federal Reserve agree with its recommendations, while the FDIC insists that it has already implemented strategies to supplement the 2006 guidance.  A closer review of the OCC and Federal Reserve positions, however, would seem to suggest that the

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