Links in “FDIC”
- ABA Counters Claim that Regular Overdraft Users are Low-Income
In a letter to CFPB, ABA refutes 2006 FDIC study that asserted that regular users of overdraft protection come from low-income areas. ABA's survey shows that only 12% of regular overdraft users reported income less than $30,000; most were middle income and educated. [10/18]
- Proposed Flood Rules Would Force Banks to Accept Private Insurance
FRB, OCC and FDIC propose rules that would require banks to accept qualified private insurance on loans backed by properties in areas at risk for flooding. [10/15]
- Director Exposure and D&O Insurance Issues Raised
FDIC emphasizes the importance of maintaining strong Director and Officer Liability Insurance in retaining well-qualified personnel for key positions, but notes that civil monetary penalty (CMP) provisions are prohibited. Policy review is stressed. Directors might be, too. [10/11]
- Flurry of Lawsuits Against Officers and Directors
With the three-year statute of limitations running out on banks that failed in 2010, a "banner year" for bank failures, FDIC's lawyers have switched into high gear. [10/11]
- Squeeze on “Politically Incorrect” Businesses Continues
Push by FDIC appears to be related to Chase's internal review of companies that pose a greater risk of fraud or money laundering and are viewed as risky, including payday lenders, pawnshops, check cashing businesses, and certain automobile dealers. [10/10]
- FDIC Reemphasizes Interest Rate Risk Management
Highlights focus on development of comprehensive ALM and IRR programs with risk management techniques implemented to ensure a strong program. Areas of heightened risk observed in heavy liability-sensitive positions, securities depreciation and unrealized losses that may impact FIs earnings and capital in a rising rate environment. [10/9]
- FDIC Achieves CRA Rating Balance
While not likely by design, the FDIC's CRA ratings for month of october for Outstanding, Satisfactory, and Needs Improvement go 3-91-3. [10/4]
- FDIC Hones in on Merchants Engaged in Higher Risk
Key need for FIs to complete risk assessments to search out those commercial customers that engage in higher-risk activities (high rates of return, high rates of unauthorized transactions, consumer complaints, or evidence of state or federal regulatory or criminal actions against the business customer). Expands policing requirements of FIs on their customer base. [10/1]
- FDIC Eases Pressure on Banks Dealing with Online Lenders
In response to lawmaker and industry concerns about shutting down even fully compliant online lenders, FDIC issues letter saying that institutions that correctly manage their third-party relationships "are neither prohibited nor discouraged" from processing payments for legal entities. [9/30]
- Pace of FDIC Lawsuits Against Directors and Officers Increases
FDIC has filed at least 32 lawsuits against directors and officers, exceeding the rate of new filings compared to any equivalent period in the previous three years. [9/18]
