Possibly in anticipation of the long holiday weekend, the federal banking agencies were relatively quiet last week.  Potentially important action did take place in the House Financial Services Committee, which approved twelve bills that would amend certain securities laws or change certain mortgage lending rules.  The Committee is scheduled to vote on several additional pieces of legislation at a markup on May 29.

The full set of developments over the past week was as follows:

Community Banking

  • Long-term Trends in Rural Depopulation and Their Implications for Community Banks, FDIC Quarterly, Vol. 8, No. 2 (May 2014).
    • "Community banks in depopulating rural areas have been resilient in meeting the challenges posed by diffi­cult demographic trends. In the years leading up to the financial crisis and recession, community banks in depopulating rural areas reported earnings and asset quality performance that was relatively similar to the performance of banks located in more economically vibrant areas. Through the recession and its aftermath, the community banks in depopulating rural areas outperformed their peers, thanks to the strong agricul­tural economy, which kept agricultural loan portfolios from feeling the adverse shocks received by C&D and CRE portfolios. Even the banking structure in depopu­lating rural areas has been more stable than in metro areas in terms of the number of charters."
    • "The data brought to bear in this study indicate that community bankers in depopulating rural areas will most likely have to continue managing their institu­tions with the prospect of weak or negative growth from their local communities. Although searching for growth opportunities in other geographies is possible, it has its own set of challenges, as seen by the institutions that branched into metro areas before the recession. All in all, the conclusion of the 2004 FDIC study is equally applicable to this study: Although there may in fact be far fewer rural banks in the future, the rural banking system will most likely remain intact and strong."
    • Report available at   http://www.fdic.gov/news/news/press/2014/pr14035.html
  • OCC announces workshop, "Mastering the Basics: A Director's Challenge," for directors of national community banks and federal savings associations, June 23-25, St. Louis MO.

Accounting Standards


  • House Financial Services Committee to mark up six bills affecting the CFPB on May 29.
    • H.R. 3770, the "CFPB-IG Act of 2014."
    • H.R. 4262, the "Bureau Advisory Commission Transparency Act."
    • H.R. 4383, the "Bureau of Consumer Financial Protection Small Business Advisory Board Act."
    • H.R. 4539, the "Bureau Research Transparency Act."
    • H.R. 4604, the "CFPB Data Collection Security Act."
    • H.R. 4684, the "Bureau Guidance Transparency Act."

Community Development


Foreign Banks/U.S. Tax Issues

  • U.S. authorities settle criminal and civil claims against Credit Suisse regarding alleged participation in tax evasion scheme (May 19).
    • Justice Department
    • Federal Reserve Board
    • New York Department of Financial Services
      • Claims based on the "operation of an illegal cross-border banking business, which aided thousands of U.S. clients in opening and maintaining undeclared accounts and concealing their offshore assets and income from the IRS and New York authorities."
      • $715 civil money penalty.
      • Independent auditor required.
      • No proceedings to revoke New York license.
      • Consent order available at http://www.dfs.ny.gov/about/press2014/pr1405191.htm.
    • Settlement with SEC on related matters in February.


  • House Financial Services Committee to mark up two pieces of legislation affecting FSOC activities (May 29).
    • H.R. ___, to place a 6-month moratorium on the authority of FSOC to make financial stability determinations.
    • H.R. 4387, the "FSOC Transparency and Accountability Act."

Monetary Policy

Mortgage Lending

  • House Financial Services Committee approves four bills (May 22).
    • H.R. 3211, the "Mortgage Choice Act of 2013."
    • H.R. 1779, the "Preserving Access to Manufactured Housing Act of 2013."
    • H.R. 4521, the "Community Institution Mortgage Relief Act of 2014."
    • H.R. 2673, the "Portfolio Lending and Mortgage Access Act."

Payment Systems


Regulatory – General

  • House Financial Services Committee approves H.R. 4466, the "Financial Regulatory Clarity Act of 2014" (May 22).

Securities Laws

  • Enforcement: "Three Key Pressure Points in the Current Enforcement Environment," remarks by SEC Chair White at the New York City Bar Association's Third Annual White Collar Crime Institute (May 19).
  • House Financial Services Committee markups.
    • Approved seven bills (May 22).
      • H.R. 4200, the "SBIC Advisers Relief Act of 2014."
      • H.R. 4554, the "Restricted Securities Relief Act of 2014."
      • H.R. 4568, the "Small Business Freedom to Grow Act of 2014."
      • H.R. 4571, to direct the SEC to revise its rules so as to increase the threshold amount for requiring issuers to provide certain disclosures relating to compensatory benefit plans.
      • H.R. 4569, the "Disclosure Modernization and Simplification Act of 2014."
      • H.R. 4570, the "Private Placement Improvement Act of 2014."
      • H.R. 4565, the "Startup Capital Modernization Act of 2014."
    • To mark up three pieces of legislation amending securities laws (May 29).
      • H.R. 4697, the "Small-Cap Access to Capital Act."
      • H.R. 2629, the "Fostering Innovation Act of 2013."
      • H.R. 4564, the "Equity Crowdfunding Improvement Act of 2014."

Swaps and Derivatives

Truth in Savings

Bank Closings

  • Columbia Savings Bank (Cincinnati, OH) (May 23). 
    • FDIC purchase and assumption agreement with United Fidelity Bank, fsb (Evansville, IN) for all deposits.

Congressional Action

Upcoming Events

  • May 29
    • SEC full commission meeting.
    • House Financial Services Committee markup of 12 pieces of legislation.
      • See CFPBFSOC, and Securities Laws above.
    • FDIC San Francisco Region Bankers' Forum: The Development and Launch of a New Banking Product: A UDAP Primer.
  • May 30
    • FDIC webinar, Innovation at Work: Financial Empowerment Programs.
  • June 2-4
    • OCC workshop, Mastering the Basics: A Director's Challenge, Nashville TN.
  • June 19
    • CFTC public roundtable on position limits for physical commodity derivatives.
  • June 23-25
    • OCC workshop, Mastering the Basics: A Director's Challenge, St. Louis MO.
  • Sept. 23-24

Regulatory Comment Deadlines

  • May 27 – SEC: standards for covered clearing agencies.
  • May 27 – CFTC: swap reporting and recordkeeping requirements under 17 CFR part 45.
  • June 6 – CFPB: revisions to Reg E to allow certain international remittance providers to estimate fees and rates through July 21, 2020.
  • June 9 – federal banking agencies: standards for asset management companies and state agencies.
  • June 12 – OCC: increased assessments for national banks and federal thrifts over $40 billion.
  • June 13 – federal banking agencies: changes to denominator of supplementary leverage ratio.
  • June 13 – federal banking agencies: revisions to definition of eligible guarantee under advanced approaches risk-based capital rule.
  • June 20 – FDIC: filing and disclosure requirements for securities issued by state savings associations.
  • July 1 – SEC: recordkeeping, reporting, and notification requirements for security-based swap dealers and major security-based swap participants.
  • July 7 – CFPB: "small servicer" definition.
  • July 7 – CFPB: correction or cure of debt-to-income overages and credit extension limit for small creditor definition.
  • July 8 – Federal Reserve – Dodd-Frank section 622 concentration limits on large financial companies.