FDIC, Federal Reserve, OCC

Bank Regulators Set Priorities at the Prudential Regulation Conference

Financial Regulatory Advice and Response Team members Neil Bloomfield, Ed O’Keefe, Tom Pennington, and Kris Whittaker attended the Prudential Regulation Conference presented by SIFMA and The Clearing House in Washington, D.C.  This year’s conference was focused on the future of prudential regulation, including the new leadership at the prudential agencies.  The conference included insights from the Joseph M. Otting, Comptroller of the Currency, Mark E. Van Der Weide, General Counsel for the Federal Reserve, and Jelena McWilliams, Chairman of the FDIC, among others.   There are a few overarching themes to the conference.  All three of the speakers focused on a commitment to transparency and a willingness to revisit existing rules and guidance.  They also all discussed their agencies actions to implement S. 2155, the “Economic Growth, Regulatory Relief and Consumer Protection Act” (also known as the Crapo bill) and the recently proposed revisions to the Volker Rule.

Comptroller Otting reaffirmed his commitment to the priorities we discussed in our earlier post and in his recent testimony before the Senate Banking Committee.  Specifically, he focused on his goals to:

  • modernize the Community Reinvestment Act;
  • encourage banks to meet customers’ needs for short term, small dollar credit; and
  • work with FinCEN to promote more efficient compliance with the Bank Secrecy Act and anti-money laundering regulations.

This was one of the first opportunities for Chairman McWilliams to discuss how her tenure at the FDIC may take shape. Chairman McWilliams made several key points, including that she:

  • plans a listening tour to the 53 jurisdictions overseen by the FDIC (i.e. the 50 states, District of Columbia, Puerto Rico and Guam).  She intends to hear from the banks supervised by the FDIC as well as consumers;
  • believes strongly in seeking feedback from the institutions regulated by the FDIC;  
  • is interested in revisiting the CAMELS definitions and process, which has not been considered since the 1990s.  In addition, she supports reviewing the CID and MRI/A to ensure consistency.  Chairman McWilliams intends to bring these issues to the FFIEC during her tenure as Chair of that organization;
  • suggests the US consider its engagement with Basel.  She expressed concern that US banks may be taking anticipatory actions regarding assets based on opinions from the Basel Committee that the US bank regulators will not follow; and  
  • suggests banks be permitted to streamline their resolution plan submissions to reflect only the changes from prior submissions.  

Mark E. Van Der Weide, General Counsel for the Federal Reserve focused his remarks on several areas that are currently outstanding at the Board, including:

  • tailoring rules and guidance to the size and complexity of the organizations supervised by the Federal Reserve;
  • increasing efficiency of the Federal Reserve’s actions to lessen regulatory burden;
  • simplifying the regulatory framework; and
  • ensuring to the extent possibly the transparency of the Boards actions and decision making.

Mr. Van Der Weide also discussed several pending capital related proposals, additional guidance on resolution planning, TLAC and revamping the definition of “control”.

Kristina Whittaker

About Kristina Whittaker

Kristina Whittaker, former Deputy Comptroller for Special Supervision and Assistant Director of the Bank Activities and Structure Division at the Comptroller of the Currency (OCC), advises and represents financial institutions on federal regulatory and advisory matters. During her 30 year tenure at the OCC, Whittaker developed expertise in bank and thrift operations, corporate structure, governance, regulatory implementation and enforcement.

Discussion

No comments yet.

Leave a comment

Your email address will not be published. Required fields are marked *

Welcome to the White Collar Defense, Investigations and Regulatory Advice Blog

As government authorities around the world create a constantly evolving regulatory environment and conduct overlapping investigations, companies are facing perhaps the most challenging environment. Moore & Van Allen has created this blog to help keep our clients up to date in these fast-moving areas and to serve as a thought leader as regulations and enforcement policy continue to develop. Our blog is a combined effort of Moore & Van Allen’s White Collar, Regulatory Defense, and Investigations team and our Financial Regulatory Advice and Response team.

Our Practices

MVA’s White Collar, Regulatory Defense, and Investigations team services clients in some of the most heavily regulated and scrutinized industries in the U.S. and abroad. This team is made up of former government attorneys as well as private practitioners with decades of experience representing Fortune 100 institutions in international inquires in the United States, European Union, United Kingdom, Singapore, Thailand, Hong Kong, Argentina, Brazil, Chile, Uruguay, and Canada.

Our Financial Regulatory Advice and Response Team combines the experience of former general counsels from some of the largest international financial institutions with that of our seasoned regulatory attorneys to advise clients complex multi-regulator environment on a wide variety of complex regulatory compliance matters, including Comprehensive Capital Analysis and Review (CCAR), Recovery and Resolution Planning, Risk Data Aggregation, the Volcker Rule, consumer finance regulations, and bank secrecy and anti-money laundering regulations. Read More About the MVA Investigations and MVA Financial Regulatory Response Practices. Meet Our Investigations and Financial Regulatory Response Teams.

Follow MVA

Facebooktwitterlinkedinrss

Subscribe to Blog via Email

Disclaimer

No Attorney-Client Relationship Created by Use of this Website: Neither your receipt of information from this website, nor your use of this website to contact Moore & Van Allen or one of its attorneys creates an attorney-client relationship between you and Moore & Van Allen. As a matter of policy, Moore & Van Allen does not accept a new client without first investigating for possible conflicts of interests and obtaining a signed engagement letter. (Moore & Van Allen may, for example, already represent another party involved in your matter.) Accordingly, you should not use this website to provide confidential information about a legal matter of yours to Moore & Van Allen.


No Legal Advice Intended: This website includes information about legal issues and legal developments. Such materials are for informational purposes only and may not reflect the most current legal developments. These informational materials are not intended, and should not be taken, as legal advice on any particular set of facts or circumstances. You should contact an attorney for advice on specific legal problems. (Read All)