Tag Archives: OCC

OCC Reaffirms Willingness To Accept and Grant Special Purpose Charters to Fintech Companies

On October 9, 2018, Grovetta Gardineer, the Office of the Comptroller of the Currency’s (“OCC’s”) senior deputy comptroller for compliance and community affairs, reaffirmed the OCC’s willingness to accept applications from fintech companies seeking a special purpose national bank charter and grant such applications if the application meets certain requirements. These remarks, which were made … Continue Reading

After Senate Banking Committee Testimony, Where Does Dodd-Frank Reform Stand?

On Tuesday October 2, leaders of the federal prudential regulators testified before the Senate Committee on Banking, Housing, and Urban Affairs (“Banking Committee”) on their agencies’ efforts to implement the Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA” or the “Act”). All of the regulators expressed support for the goals of EGRRCPA, particularly with … Continue Reading

OCC Releases Bank Supervision Operating Plan for Fiscal Year 2019

On September 25, 2018, the Office of the Comptroller of the Currency (“OCC”) released its bank supervision operating plan for fiscal year (“FY”) 2019, which begins October 1, 2018, and ends September 30, 2019.  Developed by the OCC’s Committee on Bank Supervision (“CBS”) to align with “The OCC’s Strategic Plan, Fiscal Years 2019-2023” and the … Continue Reading

NYSDFS Sues to Block the OCC’s Special Purpose National Bank Charters for Fintech Companies

On September 14, 2018, Superintendent of the New York State Department of Financial Services (“NYSDFS”) Maria T. Vullo filed a complaint in federal court against the U.S. Office of the Comptroller of the Currency (“OCC”) to block the OCC from issuing any special purpose national bank (“SPNB”) charters. The OCC announced last month, after much … Continue Reading

OCC Releases Proposal to Allow Federal Savings Associations to Exercise National Bank Powers

On September 10, 2018, the Office of the Comptroller of the Currency (“OCC”) released a proposed rule to implement section 206 of the Economic Growth, Regulatory Relief, and Consumer Protection Act, codified in section 5A of the Home Owners’ Loan Act (“HOLA”).  Section 5A permits a federal savings association with total consolidated assets of $20 … Continue Reading

Banking Regulators Issue Joint Policy Statement Downplaying the Role of Supervisory Guidance in Enforcement

On September 11, 2018, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Bureau of Consumer Financial Protection (the “Bureau”, and, collectively, the “Agencies”) issued a statement “clarifying the role of supervisory guidance.” The release … Continue Reading

OCC Releases Advanced Notice of Proposed Rulemaking Regarding CRA Framework

On August 28, 2018, the Office of the Comptroller of the Currency (“OCC”) released an advanced notice of proposed rulemaking (“ANPR”) inviting comments on a revised Community Reinvestment Act (“CRA”) framework. In the ANPR, the OCC described its vision for a new CRA framework that would: encourage more lending and investment activity in low and … Continue Reading

The OCC Will Move Forward to Accept Applications for Special Purpose National Bank Charters for Fintech Companies

The Office of the Comptroller of the Currency (“OCC”) announced yesterday that a nondepository financial technology (“fintech”) company that engages in a core banking activity, such as paying checks or lending money, can now apply for a special purpose national bank (“SPNB”) charter. This announcement followed shortly after the release of the Treasury Department’s report … Continue Reading

Square Temporarily Withdraws ILC Application

On July 5, 2018, Square, Inc. (“Square”) announced (paywall) that it had temporarily withdrawn a pending application with the FDIC to obtain deposit insurance for a proposed industrial loan company (“ILC”), in order to strengthen the application before reapplying. The company stated that a parallel application with the Utah Department of Financial Institutions for the … Continue Reading

Regulators Propose Revisions to the Volcker Rule

On May 30, 2018, the Federal Reserve Board approved a notice of proposed rulemaking aimed at simplifying regulations implementing section 13 of the Bank Holding Company Act (12 U.S.C. 1851), also known as the “Volcker Rule” (or the “Rule”).  Enacted as part of the Dodd-Frank Act following the financial crisis of 2008, the Volcker Rule … Continue Reading

Treasury Releases Recommendations to Reform CRA Framework

On April 3, 2018, the Department of the Treasury (“Treasury”) released its much-anticipated recommendations to reform the Community Reinvestment Act (“CRA”). The report, which is addressed to the federal banking agencies, outlines a number of proposed regulatory and administrative changes to (i) the CRA’s performance evaluation criteria, and (ii) the federal banking agencies’ approach to … Continue Reading

OCC Issues Guidance on CRA Ratings Downgrades for Consumer Compliance Violations

On October 12, 2017, the Office of the Comptroller of the Currency (“OCC”) issued a Policies and Procedures Manual (“PPM”) outlining the framework to be used by examiners to determine whether an OCC-regulated bank should receive a downgrade of its Community Reinvestment Act (“CRA”) performance rating based on evidence of discriminatory or other illegal credit … Continue Reading

OCC Permits Programs for Higher LTV Mortgage Lending in Distressed Communities

On August 21, 2017, the OCC issued guidance permitting national banks and federal savings associations to establish programs to offer mortgages with loan-to-value (“LTV”) ratios exceeding 100 percent in communities that have been officially targeted for revitalization by a federal, state, or municipal governmental entity or agency, or by a government-designated entity. Under existing supervisory … Continue Reading

The OCC Rejects Operation Chokepoint in Letter to Chairman Hensarling

On August 21, 2017, Keith Noreika, the Acting Comptroller of the Currency, sent a letter to Jeb Hensarling, the Chairman of the House Financial Services Committee, stating that the Office of the Comptroller of the Currency (“OCC”) is not, and never was, a part of Operation Chokepoint, and that Operation Chokepoint is not the policy … Continue Reading

Federal Reserve Issues Proposal on Supervisory Expectations for Boards of Directors

On August 3, 2017, the Board of Governors of the Federal Reserve System (“Federal Reserve”) released a proposal regarding its supervisory expectations for the boards of directors of bank holding companies, savings and loan holding companies, state member banks, U.S. branches and agencies of foreign banks, and non-bank systemically important financial institutions supervised by the … Continue Reading

OCC Issues Request for Information on the Volcker Rule

This morning, the Office of the Comptroller of the Currency (“OCC”) released a Request for Information (“RFI”) to determine how regulations implementing the Volcker Rule should be revised to better accomplish the purposes of the statute. The OCC’s release notes that the information the agency is soliciting could support revisions to the regulation that are consistent … Continue Reading

Acting Comptroller Noreika Addresses Challenges to the OCC’s Fintech Charter

In remarks on Wednesday before the Exchequer Club in Washington, Acting Comptroller of the Currency Keith Noreika responded to State regulators and consumer advocates who have criticized the OCC’s proposed special purpose fintech charter (the proposed charter is discussed in this Covington client alert). Acting Comptroller Noreika’s comments on the fintech charter reflect an evolution … Continue Reading

Federal Banking Agencies Propose Changes to Call Reports

On June 27, 2017, the Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation (collectively, the “Agencies”) proposed revisions to their Call Report forms for insured depository institutions.  The proposed changes are intended to align Call Reports with a recent accounting change and … Continue Reading

FASB Announces Public Meeting as New Credit Loss Standard’s Effective Dates Approach

The Financial Accounting Standards Board (“FASB”) will hold an open meeting on June 12, 2017, to hear concerns from financial institutions regarding FASB’s recently finalized Accounting Standards Update for measuring credit losses on financial instruments (the Current Expected Credit Loss standard, or “CECL”) under Generally Accepted Accounting Principles (“GAAP”). FASB issued the new CECL standard … Continue Reading

Financial Regulators to Reassess Volcker Rule

Federal financial agencies are taking steps to reevaluate the Volcker Rule as part of the Trump Administration’s review of financial regulations.  In a May 8, 2017 meeting of the Financial Stability Oversight Council, Treasury Secretary Steve Mnuchin reportedly directed the five agencies responsible for the Volcker Rule – the Board of Governors of the Federal … Continue Reading

Comptroller Curry to Depart; Keith Noreika to Serve as Acting Comptroller of the Currency

The Treasury Department announced today that Comptroller of the Currency Thomas Curry would be stepping down from his post effective this Friday, May 5, 2017.  Keith Noreika, a Washington, D.C., banking lawyer who was part of President Trump’s transition team for Treasury, will be appointed First Deputy Comptroller of the Currency and will serve as … Continue Reading

Conference of State Bank Supervisors Sues To Stop OCC Fintech Charters

On April 26, 2017, the Conference of State Bank Supervisors (“CSBS”) filed a complaint against the Office of the Comptroller of the Currency (“OCC”) and Comptroller of the Currency Thomas J. Curry to block the agency from going forward with its proposal to grant special purpose national bank charters to fintech companies. The CSBS filed … Continue Reading
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