Cyber threats remain a key operational concern for banks, which are otherwise experiencing “near-historic” capital and liquidity highs and improved returns on equity, according to the Office of the Comptroller of the Currency (the “OCC”).  The regulator published its Fall 2017 Semiannual Risk Perspective on January 18th, stating … Read More

The Senate’s bipartisan regulatory relief bill advanced out of the Senate Banking Committee this week with only minor changes and remains on a path to a filibuster-proof majority.  The bill would provide regulatory relief to regional, community and custody banks, among others—as described in two earlier posts here and hereRead More

Does the bipartisan Senate bill described in our earlier post leave large banks, i.e., banking organizations with $250 billion or more in total consolidated assets, and foreign banking organizations (FBOs) entirely out in the cold?  No, but the relief it provides to large banking organizations is quite limited, and it … Read More

The bipartisan Senate bill would open the door to welcome relief for regional and community bank holding companies (BHCs) by raising the statutory threshold for enhanced prudential standards from $50 billion to $250 billion in total consolidated assets.  The bill, titled the Economic Growth, Regulatory Relief and Consumer Protection ActRead More

The Leveraged Lending Guidelines are in an uncomfortable state of limbo.  After the GAO ruling that the Guidelines are a “rule” under the Congressional Review Act, they are no longer effective as guidance, but the silence from the OCC, the Federal Reserve, and the FDIC has been deafening.[1] The uncertainty … Read More

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 … Read More

The U.S. banking agencies this week released a proposal that would significantly amend the U.S. Basel III capital rules of all three agencies by simplifying the capital treatment of several items, primarily for non-advanced approaches banking organizations.  The proposed rule represents the agencies’ next step in the agencies’ efforts, discussed … Read More

The U.S. banking agencies (the Federal Reserve, OCC and FDIC) propose to delay the last phase of the U.S. Basel III capital rules’ transition provisions relating to certain deductions from capital and limitations on the recognition of minority interests, which are scheduled to become effective January 1, 2018, for banking … Read More

Recently, certain derivatives clearinghouses have changed their rulebooks to treat daily payments of mark-to-market variation margin as settlement payments of the derivatives transactions rather than pledges or transfers of collateral.  In response to this trend and industry questions about its effect on regulatory capital requirements, on August 14, 2017 the … Read More

In the run up to the August recess, the Senate confirmed 76 of President Trump’s nominees last week, including a handful of senior personnel at various financial regulatory agencies. As we continue to track personnel changes at these agencies, we have updated our brief deck summarizing the leadership and staffing … Read More