The federal agencies may have embraced summer hours already; last week was unusually quiet.  While there were no sweeping developments, some banks should review at least one of two new booklets from the OCC, one on agricultural lending and the other on collective investment funds.  The agencies also released guidance on flood insurance coverage for certain multi-family residential buildings.   

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

The Economy

  • Discount rates – minutes of Federal Reserve discount rate meetings for April 14 and 28 released (May 27).
    • Board votes to maintain existing rates for discounts and advances under primary credit program at 0.75%. 
    • Nine Federal Reserve Banks favored existing rates: the Federal Reserve Banks of Atlanta, Boston, Cleveland, Chicago, Minneapolis, New York, Richmond, St. Louis, and San Francisco.
    • Federal Reserve Banks of Dallas, Kansas City, and Philadelphia urged raising rates to 1.0%.
    • Minutes available at http://www.federalreserve.gov/newsevents/press/monetary/20140527a.htm.

Community Banking

  • FDIC releases Quarterly Banking Profile for first quarter 2014 (May 28).
    • Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $37.2 billion in the first quarter of 2014, down $3.1 billion (7.6 percent) from earnings of $40.3 billion the industry reported a year earlier. The decline in earnings was mainly attributable to a $7.1 billion (10.7 percent) decline in noninterest income. Lower income from reduced mortgage activity and a drop in trading revenue contributed to a year-over-year decline in noninterest income. Additionally, noninterest income was higher one year ago due to a one-time gain at one institution. Despite the decline in earnings, more than half of the 6,730 insured institutions reporting (54 percent) had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the first quarter fell to 7.3 percent from 8.5 percent a year earlier.
    • Profile available at http://www2.fdic.gov/qbp/qbpSelect.asp?menuItem=QBP.
    • Remarks of Chairman Gruenberg available at http://www.fdic.gov/news/news/speeches/spmay2814.html.
  • OCC seeks members for two advisory committees: Minority Depository Institutions Advisory Committee and Mutual Savings Association Advisory Committee (June 2).

Agricultural Lending

CFPB

CFTC

Collective Investment Funds

Federal Reserve Board

  • Stanley Fischer sworn in as a member of the Board (May 28).
    • Nomination as Vice Chair still pending.

FSOC

Flood Insurance

  • Banking agencies release Interagency Statement on Increased Maximum Flood Insurance Coverage for "Other Residential Buildings" (May 30).

Housing

  • President to nominate Julian Castro (Mayor, San Antonio TX) as next HUD Secretary.
    • Current Secretary, Shaun Donovan, to become head of OMB.

Operation Choke Point

Supervision and Examination

Bank Closings

  • Slavie Federal Savings Bank (Bel Air, MD) (May 30). 
    • FDIC purchase and assumption agreement with Bay Bank, FSB (Lutherville, MD) for all deposits.

Upcoming Events

  • June 2-4
    • OCC workshop, Mastering the Basics: A Director's Challenge, Nashville TN.
  • June 3
    • Senate Banking Committee Executive Session.
      • Mark up of S. 2244, the Terrorism Risk Insurance Program Reauthorization Act of 2014.
  • June 4
    • SEC Commission meeting in closed session.
    • Senate Banking Committee hearing.
      • Student Loan Servicing: The Borrower's Experience"
  • June 17-18
    • Federal Open Market Committee meeting.
  • June 18
    • FDIC Atlanta Region, regulatory conference call on vendor management.
  • 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
  • Oct. 16-17
    • FDIC annual Consumer Research Symposium.

Regulatory Comment Deadlines

  • 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: correction or cure of debt-to-income overages and credit extension limit for small creditor definition; "small servicer" definition.
  • July 8 – Federal Reserve – Dodd-Frank section 622 concentration limits on large financial companies.