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On October 7, the OCC and FDIC jointly proposed two rules to refocus bank supervision on material financial risks and eliminate “reputation risk” from their oversight frameworks. The first proposal would define the term unsafe or unsound practice under the Federal Deposit Insurance Act and revise the agencies’ standards for issuing matters requiring attention (MRAs). The second proposal would codify the agencies’ removal of reputation risk from supervisory programs and prohibit examiners from taking actions based on a bank’s perceived reputational exposure.Continue Reading OCC and FDIC Propose Rules to Eliminate Reputation Risk and Debanking

On July 14, the OCC, Federal Reserve, and FDIC announced the release of a joint statement clarifying how existing laws and regulations apply to crypto-asset safekeeping services offered by banking organizations. The statement does not impose new supervisory expectations but reinforces how banking organizations must apply established fiduciary duties, risk management standards, and third-party oversight frameworks when holding crypto-assets on behalf of customers.Continue Reading Federal Banking Regulators Issue Joint Guidance on Crypto-Asset Safekeeping

On April 7, the FDIC and the Maryland Office of Financial Regulation terminated two consent orders against a regional bank headquartered in Maryland. The termination concludes joint federal and state enforcement actions that required the bank to remediate deficiencies in its anti-money laundering (AML) program, interest rate risk management, and consumer protection practices.Continue Reading FDIC and Maryland End Joint Consent Orders Against Regional Bank

On April 18, the FDIC announced a consent order against a Delaware-based bank alleging that the bank engaged in unsafe and unsound banking practices and violated various federal consumer protection laws, including Section 5 of the FTC Act, the Truth in Lending Act (TILA), and the Servicemembers Civil Relief Act (SCRA). Continue Reading FDIC Orders Bank to Pay $1.225 Billion for Alleged Interchange Fee Misclassification 

On March 28, the FDIC issued updated guidance clarifying the process for FDIC-supervised institutions to engage in crypto-related activities. The guidance rescinds and replaces prior instructions issued in 2022 and makes clear that banks no longer need to seek prior FDIC approval before participating in permissible crypto activities.Continue Reading FDIC Updates Crypto Guidance, Removes Pre-Approval Requirement for Banks

On March 28, the Federal Reserve, FDIC, and OCC jointly announced plans to rescind 2023 revisions to the Community Reinvestment Act (CRA) regulations. The agencies stated they would return to the previous regulatory framework existing before the 2023 revisions (See our prior discussion here).Continue Reading Federal Regulators Signal Reversal on 2023 CRA Modernization Rule

On March 24, acting FDIC Chairman Travis Hill informed Congress that the agency is preparing to eliminate the use of “reputation risk” as a basis for supervisory criticism. In a letter to Rep. Dan Meuser (R-Pa.), Hill explained that the FDIC has completed a review of its regulations, guidance, and examination procedures to identify and remove references to reputational concerns in its supervisory framework.Continue Reading FDIC Aims to Eliminate Reputational Risk from Supervision

On March 3, the FDIC announced the withdrawal of its proposed rule on brokered deposits, citing concerns regarding potential disruptions to the financial sector. This move follows significant pushback from industry stakeholders who argued that the proposed changes could have unintended consequences for liquidity management and market stability.Continue Reading FDIC Withdraws Proposed Rule on Brokered Deposits

On February 26, the FDIC withdrew its amicus brief in the 10th Circuit Court of Appeals challenging Colorado’s 2023 opt-out law which aimed to restricting higher-cost online lending. The FDIC’s decision follows a shift in the agency’s leadership and marks a departure from the previous administration’s position supporting Colorado’s interpretation of the Depository Institutions Deregulation and Monetary Control Act (DIDMCA).Continue Reading FDIC Withdraws Support for Colorado’s Opt-Out Law Before Tenth Circuit

The FDIC will shift its focus and priorities under the leadership of its new Acting Chairman, Travis Hill. In a statement released on January 20, 2025, Chairman Hill signaled a potential departure from some of the initiatives of the prior FDIC leadership. In the statement, he explained his key priorities for the agency moving forward, which include:Continue Reading New FDIC Chairman Outlines Agency’s New Priorities