In a laudable step towards further advancing a reform of the Community Reinvestment Act (“CRA”), the OCC earlier this week released an advanced notice of proposed rulemaking (the “ANPR”) “to solicit ideas for building a new framework to transform and modernize” the current CRA regulatory framework
Continue Reading
Jennifer E. Kerslake
Ms. Kerslake is an associate in Davis Polk's Financial Institutions Group. [Full Bio]
OCC Adds Recovery Planning to the Comptroller’s Handbooks
Posted in FDIC, Guidance & FAQs
The increased emphasis by the prudential banking agencies on recovery planning is evidenced by the Comptroller’s recent publication of a new recovery planning module for the Comptroller’s Handbook. The addition of this module to the handbook flows from the OCC’s previously published guidelines[1] on recovery planning.[2] Recovery planning…
Continue Reading
Treasury Offers Roadmap to CRA Reform
The CRA was put in place over 40 years ago and bears the heavy hand of the woeful history of redlining upon any attempt to change it. But, it is long overdue for a rethink, especially in light of the major changes that have taken place in the banking sector,…
Continue Reading
Federal Reserve Proposes New Guidance on Management of Large Financial Institutions
The Federal Reserve’s proposed core principles on management of large financial institutions are another welcome addition to its efforts to clarify and better distinguish between the roles of boards of directors and the management of large financial institutions. The new guidance (Management Guidance) describes core principles of effective senior management,
A Modest Proposal? Federal Reserve Proposes Increased Transparency of Stress Testing
In what we expect to be the first step in a process of increasing the transparency of the Federal Reserve’s supervisory stress tests and their application to banking organizations subject to the Dodd-Frank Act supervisory stress testing requirements and the Federal Reserve’s Comprehensive Capital Analysis and Review (CCAR) framework, the…
Continue Reading
OCC Brings Common Sense to CRA Ratings
Posted in Community Reinvestment Act, OCC
The OCC’s recent revision to its Community Reinvestment Act examination and ratings policies is a welcome first step in a long overdue and much needed rethink of how supervisors might modernize the CRA so that the statutory goal of helping underbanked communities can be met in the digital era. The…
Continue Reading
What Happens if the CFPB Arbitration Rule Isn’t Overturned? – Ten Practical Tips to Think About Now
By Frances Bivens, John L. Douglas, Paul Mishkin, Edmund Polubinski, James Rouhandeh, Margaret E. Tahyar, Joseph Kniaz, Jennifer E. Kerslake, Nancy Lee & Neal A. Potischman on
Posted in BCFP
Since the CFPB issued its Arbitration Rule in July, most commentators have focused on ways the rule may be blocked from going into effect. Chief among these is the possibility that Congress will vote to overturn the rule under the Congressional Review Act, and the House did promptly vote in…
Continue Reading
Federal Reserve Proposes New Guidance on Corporate Governance
The Federal Reserve has proposed changes to its guidance on corporate governance for banking organizations, which refocus its supervisory expectations more clearly on a board’s core responsibilities. The proposal distinguishes more clearly the roles and responsibilities of boards and senior management, eliminates redundant and outdated SR letters and guidance, and…
Continue Reading
Federal Reserve Proposes New Supervisory Rating System for Large Financial Institutions
The Board of Governors of the Federal Reserve System (Federal Reserve) has proposed a new rating system for large financial institutions (LFIs). This proposal is intended to more closely align the Federal Reserve’s supervisory rating system with its supervisory program for LFIs.
LFIs are (i) bank holding companies and non-insurance,…
Continue Reading
Higher Threshold for Enhanced Prudential Standards Comes into Focus
The long conversation about raising the Dodd-Frank $50 billion asset threshold for enhanced prudential standards took a step forward today. Treasury Secretary Mnuchin, responding to a question from Rep. Hensarling in a House Financial Services Committee hearing, said that the threshold should be increased “substantially,” to at least $250 billion…
Continue Reading