The FDIC was at the forefront for community banks last week: in addition to holding a conference on community banking, it issued additional guidance for community bank directors on corporate governance and for de novos. 

The OCC continued on the FinTech track with a speech by the Comptroller on April 7 that described the OCC's March 30 white paper.  Our alert on that white paper is available at /newsletters/fintech-marketplace-lending.  As a reminder, the OCC has scheduled a forum on new technology on June 23 in Washington, D.C.  Our annual financial services conference on May 18 also will address FinTech and marketplace lending. 

On the too-big-to-fail front, the Federal Reserve and the FDIC announced today that the resolution plans of 5 of the 8 most systemically important U.S. banking institutions were not credible and required them to remedy deficiencies by Oct. 1.  Failure to do so could lead to the imposition of more stringent prudential requirements.  With respect to the MetLife litigation, the federal district judge released her opinion underlying her March 30 order rescinding the designation of MetLife as systemically important.

The full set of developments over the last week includes:

The Economy

  • FOMC releases minutes of Mar. 15-16 meeting (Apr. 6).  
    • "With respect to the outlook for economic activity and the labor market, participants shared the assessment that, with gradual adjustments in the stance of monetary policy, real GDP would continue to increase at a moderate rate over the medium term and labor market indicators would continue to strengthen."
    • "[S]trong job gains in recent months had reduced concerns about a possible slowing of progress in the labor market."
    • "[B]usiness fixed investment seemed likely to remain sluggish."
    • "[P]articipants generally saw global economic and financial developments as continuing to pose risks to the outlook for economic activity and the labor market in the United States."
    • "In particular, several participants expressed the view that the underlying factors abroad that led to a sharp, though temporary, deterioration in global financial conditions earlier this year had not been fully resolved and thus posed ongoing downside risks."
    • "Participants continued to anticipate that inflation would run below the Committee’s 2 percent objective in the near term but that, as the transitory effects of earlier declines in energy and import prices dissipated and the labor market strengthened further, inflation would rise to 2 percent over the medium term."
    • Minutes available at

Community Banking

Blockchain and Virtual Currency


De Novos

  • FDIC issues supplemental guidance on content of business plans to be submitted with applications for deposit insurance (Apr. 6).
  • FDIC rescinds FIL 50-2009, which had extended de novo period from 3 years to 7 for compliance with various rules on new insured depository institutions (Apr. 6).

Financial Literacy


Mortgage-Backed Securities

  • Justice Department settles claims against Goldman Sachs relating to sales of residential mortgage backed securities from 2005 to 2007 (Apr. 11).


  • OCC releases Enterprise Risk Appetite Statement addressing agency’s own risks (Apr. 12).

Too Big to Fail

  • Federal Reserve and FDIC jointly find resolution plans of 5 of the 8 most systemically important bank holding companies not “credible” and would not “facilitate an orderly resolution under the Bankruptcy Code” and require remaining 3 to address shortcomings in next round of filings (Apr. 13).
    • 5 institutions with plans jointly determined to be non-credible are Bank of America, Bank of New York Mellon, JPMorgan Chase, State Street, and Wells Fargo.
      • Institutions must remedy deficiencies by Oct. 1, 2016.
      • If an institution fails to do so, more stringent prudential requirements may be imposed.
    • For other 3 institutions:
      • Citigroup plan found to  have shortcomings but not non-credible.
      • Goldman Sachs plan found not credible by FDIC (but apparently not by Federal Reserve) based on deficiencies.
      • Morgan Stanley plan found not credible by Federal Reserve (but apparently not by FDIC) based on “a” deficiency. 
      • All 3 firms required to address shortcomings in next annual resolution plan due  July 1, 2017.
    • Public versions of institution-specific feedback letters, description of agencies’ assessment framework, guidance for submission of 2017 plans, and joint  press release available at
    • Statement of FDIC Chairman Gruenberg available at
  • MetLife: opinion of federal district judge rescinding FSOC designation of MetLife as systemically important financial institution is released (Apr. 7).
  • Federal Reserve proposes technical amendments to GSIB surcharge rule (Apr. 7).
  • "Are Stress Tests Still Informative?" Liberty Street Economics blog post (Apr. 4).

Congressional Activity – Recent

Congressional Activity – Upcoming

  • Apr. 13
    • House Financial Services Committee markup.
      • H.R. 1486, the "Taking Account of Bureaucrats' Spending Act of 2015."
        • Would subject CFPB to regular appropriations process.
      • H.R. __, a bill to repeal Title II of the Dodd-Frank Act and for other purposes.
        • Repeal intended to prevent use of Treasury funds in orderly liquidation authority.
      • Committee Memorandum and text of bills available at
  • Apr. 14
    • House Financial Services Committee hearing, "The JOBS Act at Four: Examining Its Impact and Proposals to Further Enhance Capital Formation."
    • Senate Banking Committee hearing, "Examining Current Trends and Changes in the Fixed-Income Markets."

Upcoming Events

  • Apr. 14
    • FDIC Systemic Risk Resolution Advisory Committee meeting, Washington DC.
  • Apr. 18
    • FSOC meeting.
  • Apr. 19
    • OCC Director Workshop, "Risk Governance – Improving Director Effectiveness," Williamsburg VA.
  • Apr. 20
    • OCC Director Workshop, "Credit Risk: Directors Can Make A Difference," Williamsburg VA.
    • FDIC Money Smart special online live meeting.
  • April 21
    • FDIC Atlanta regional regulatory conference call: "Cybersecurity Intelligence, Resilience and Management."
  • May 2-4
    • OCC Director Workshop, "Building Blocks for Directors: Keys to Success," Wilmington DE.
  • May 3
    • OCC Director Workshop, "Risk Governance – Improving Director Effectiveness," Springfield IL.
  • May 4
    • OCC Director Workshop, "Compliance Risk: What Directors Need to Know," Springfield IL.
  • May 17
    • OCC Director Workshop, "Credit Risk: Directors Can Make A Difference," Corpus Christi TX.
  • May 18
    • OCC Director Workshop, "Operational Risk – Navigating Rapid Changes," Corpus Christi TX.
  • June 23
    • OCC forum on "responsible innovation" (FinTech), Washington DC.

Regulatory Comment Deadlines

  • Apr. 25 – CFPB: expansion of mortgage rules to cover more small lenders operating in rural or underserved areas.
  • Apr. 29 – Federal Reserve: reduction in dividend rate on Reserve Bank stock held by member banks with total assets of more than $10 billion.
  • Apr. 29 – Federal Reserve, OCC, FDIC: ceiling on eligibility for 18-month examination cycle increased from $500 million to $1 billion.
  • May 2 – SEC/FDIC: application of orderly liquidation authority to broker-dealers.
  • May 13 – OCC: changes to various regulations to remove undue burdens.
  • May 26 – FDIC: recordkeeping requirements for banks with more than 2 million deposit accounts.
  • May 31 – OCC: white paper on responsible innovation (FinTech).
  • June 3 – Federal Reserve: single party credit exposures.