OCC, FDIC and Federal Reserve Regulation and Policy Changes (May 2014)

Financial services update June 2 2014 banking agency developments

OCC, FDIC and Federal Reserve Regulation and Policy Changes (May 2014)

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OCC to Rotate Examiners

On May 28th, the Office of the Comptroller of the Currency (“OCC”) announced it will establish a formal rotation program for all examiners and formalize an enterprise risk management framework that will involve developing a risk appetite statement, creating a decision-tree process, and enhancing the OCC’s existing National Risk Committee framework and processes. OCC Press Release.

Comptroller’s Handbook Revisions

On May 28th, the OCC issued updated versions of the “Collective Investment Funds” booklet and the “Agricultural Lending” booklet.

FDIC Quarterly Banking Profile

On May 28th, the Federal Deposit Insurance Corporation (“FDIC”) published its latest Quarterly Banking Profile. Commercial banks and savings institutions insured by the FDIC reported aggregate net income of $37.2 billion in the first quarter of 2014, down $3.1 billion (7.6 percent) from those 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. FDIC Press Release.

FDIC Publishes Consumer Newsletter

On May 27th, the FDIC published its latest Consumer News, which features tips and strategies for banking consumers. FDIC Press Release.

Federal Reserve Board Changes to Consumer Protection Regulations

On May 22nd, the Federal Reserve Board repealed its Regulation DD (Truth in Savings) and Regulation P (Privacy of Consumer Financial Information) and issued final amendments to the Identity Theft Red Flags rule in Regulation V (Fair Credit Reporting). The Dodd-Frank Act transferred rulemaking authority for a number of consumer financial protection laws from the Board to the Consumer Financial Protection Bureau (“CFPB”). Because the CFPB has already issued interim final rules that are substantially identical to the Board’s Regulation DD and Regulation P, the Board is repealing its versions of those regulations.

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