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- Joseph M. Otting Named Acting Director of the Federal Housing Finance Agency: The current Director of the Federal Housing Finance Agency (FHFA), Mel Watt, has indicated his intention to depart the agency at the end of his term on January 6, 2019. President Trump designated Comptroller of the Currency, Joseph M. Otting, to serve as Acting FHFA Director until a permanent Director is found to replace Watt. Otting will continue to serve in his role as Comptroller of the Currency.
- OCC Semiannual Risk Perspective for Fall 2018 Discusses Key Risks for Federal Banking System: On December 3, 2018, the Office of the Comptroller of the Currency (OCC) released its Semiannual Risk Perspective for Fall 2018 report, which assesses risks posed to national banks and federal savings associations. Based on data as of June 30, 2018, the report noted that lower taxes and stronger operational performance have driven improvements in the financial performance of banks as compared to the previous year. The report identified key risk themes including increased credit risk posed by potential lender complacency and prolonged eased underwriting, elevated operational risk resulting from evolving complexity of the environment (g., cybersecurity and the use of third-party vendors), elevated compliance risk presented by money laundering risks and consumer protection requirements, and the impact that rising interest rates and increased competition for deposits facilitated by technological advances may have on funding mix and costs. The full report is available here.
- Financial Stability Board (FSB) OSSG published its 2018 Benchmark Reform Progress Report: On November 14, 2018, the FSB released its Reforming Major Interest Rate Benchmarks progress report. The report provides updates on implementation of the FSB’s recommendations to reform major interest rate benchmarks, including, in particular, the development of overnight nearly risk-free rates (RFRs), markets based on RFRs, and further reforms to interbank offered rates (IBORs). Read more and access the report here.
- Office of Comptroller of the Currency (OCC) Issues New and Updated Policies and Procedures Manuals for Enforcement Actions: On November 13, 2018, the OCC issued its Policies and Procedures Manual for enforcement actions against institution-affiliated parties (IAP) of banks. To ensure consistency, the OCC also updated its policies and procedures for bank enforcement actions and related matters, and civil money penalties. Read more and access the manuals here.
Neil Bloomfield has more than a decade of experience advising major financial institutions, and other highly regulated entities in responding to government investigations, including responding to global investigations into LIBOR and other reference rates, foreign exchange trading, and the allegations raised by the Panama Papers. He also frequently advises clients as they implement programs to comply with regulatory requirements, including requirements created by Recovery and Resolution Planning and CCAR. View Mr. Bloomfield’s full bio.