On January 10, the Consumer Financial Protection Bureau (Bureau) issued a notice of proposed interpretive rule (Proposed Rule). The deadline for comments is March 31, 2025. The Proposed Rule would apply the Electronic Fund Transfer Act (EFTA)—which protects consumers against errors and fraud—to new types of digital payment mechanisms, including stablecoins and other digital currencies.
Court Rules Against Banco San Juan Internacional, Inc. in Master Account Dispute
On January 8, the United States District Court for the Southern District of New York dismissed the claims brought by Banco San Juan Internacional, Inc. (BSJI) against the Federal Reserve Bank of New York (FRBNY) and the Board of Governors of the Federal Reserve System (Board). BSJI alleged that the termination of its master account by the FRBNY violated various federal laws. The ruling in the BSJI case underscores the discretionary authority of Federal Reserve Banks in granting or denying master accounts.
CFPB Rules, M&A Standards Most Likely CRA Repeal Targets
Alex Barrage, a partner with Troutman Pepper Locke, was quoted in the January 9, 2025 American Banker article, “CFPB Rules, M&A Standards Most Likely CRA Repeal Targets.”
Wall Street Notches Another Win as Fed’s Barr Clears the Way for Gentler Banking Regulator
Alex Barrage, a partner with Troutman Pepper Locke, was quoted in the January 7, 2025 CNBC article, “Wall Street Notches Another Win as Fed’s Barr Clears the Way for Gentler Banking Regulator.”
Troutman Pepper Assists Fintechs In Push Back on FDIC Brokered Deposit Proposed Rule
Troutman Pepper was recently engaged by the Financial Technology Association (FTA) to draft its response to the Federal Deposit Insurance Corporation’s (FDIC) Request for Comment on its Brokered Deposit Notice of Proposed Rulemaking.
Trump’s FDIC Has Work Cut Out For it in Repairing Culture
Troutman Pepper partner, Alexandra Steinberg Barrage, was quoted in the November 19, 2024 American Banker article, “Trump’s FDIC has work cut out for it in repairing culture.”
FDIC Extends Comment Period for Proposed Rule on Recordkeeping for Third-Party Deposits
In a previous post, we discussed the Federal Deposit Insurance Corporation’s (FDIC) notice of proposed rulemaking aimed at enhancing recordkeeping for bank deposits received from fintech and other third-party, non-bank companies. The proposed rule initially set a public comment period ending on December 2, 2024. Yesterday, the FDIC announced a 45-day extension to this comment period, now allowing stakeholders until January 16, 2025, to submit their feedback.
ABA’s Banking Law Committee Meeting
Troutman Pepper Partner Alex Barrage will be a featured speaker during the ABA’s Banking Law Committee Meeting, on January 10, 2025, at 2 p.m.
Preparing for the FDIC’s Final Enforceable Guidelines on Corporate Governance and Risk Management: State Nonmember Banks with Assets Above — and Potentially Also Below — $10 Billion Take Note
Over one year ago, on October 3, 2023, the Federal Deposit Insurance Corporation (FDIC) proposed supervisory guidelines that would establish standards for corporate governance and risk management for all state non-member banks with assets greater than $10 billion (Proposed Guidelines). Unlike guidance, which does not have the force and effect of law, any final guidelines based on the Proposed Guidelines (Final Guidelines) would be issued as Appendix C to the FDIC’s standards for safety and soundness in part 364, pursuant to Section 39 of the FDI Act.
FDIC Extends Comment Period for Proposed Changes to Brokered Deposit Regulations
Today, the Federal Deposit Insurance Corporation (FDIC) announced an extension of the comment period for its notice of proposed rulemaking (NPR) aimed at revising the 2020 Brokered Deposit Rule. To ensure that all interested parties have sufficient time to review the proposed changes and prepare their comments, the FDIC has extended the comment period from October 22, 2024, to November 21, 2024.