Troutman Pepper Partners Alexandra Barrage and Matthew Bornfreund were quoted in the August 5, 2024 S&P Global article, “FDIC Proposal Would Classify More BaaS Deposits as Brokered, Not Core.”
Turning Back the Clock: FDIC Proposes Significant Changes to 2020 Brokered Deposit Rule
On July 30, 2024, the FDIC proposed substantive changes to the 2020 Brokered Deposit Rule (2020 Rule) that, if finalized, could meaningfully impact a wide group of bank and nonbank stakeholders who rely on the current rule’s definition of “deposit broker,” related exceptions, and Q&As. Many of the proposed changes effectively reverse the 2020 Rule.
Troutman Pepper Advises CBB Bancorp in Merger with Southern States Bancshares, Inc.
Troutman Pepper client CBB Bancorp, the holding company for Century Bank of Georgia, completed its sale to Southern States Bancshares, Inc., the holding company for Southern States Bank on July 31, 2024. CBB Bancorp merged with and into Southern States and Century Bank merged with and into Southern States Bank, with Southern States and Southern States Bank surviving. Troutman Pepper partners James Stevens, Constance Brewster, Emily Schifter, and Morgan Klinzing, and associates Caitlin Oh, William Mayo, Sarah Hanna, Peter Dragna, and Regina Tisdale advised CBB Bancorp in the transaction.
Did Regulators Send Warning Shot at Already Roiled BaaS Space?
Alexandra Barrage, a partner in Troutman Pepper’s Corporate Practice Group, was quoted in the July 31, 2024 Banking Dive article, “Did Regulators Send Warning Shot at Already Roiled BaaS Space?“
Pledging ‘Accountability,’ Biden’s FDIC Pick Faces Senate Test
Alexandra Barrage, a partner in Troutman Pepper’s Corporate Practice Group, was quoted in the July 10, 2024 Law360 article, “Pledging ‘Accountability,’ Biden’s FDIC Pick Faces Senate Test.”
“She’s going to get lots of questions about her banking experience, her bank regulatory experience and her leadership and management experience,” said Alexandra Steinberg Barrage, a
What Is the Cost of Doing Banking as a Service ‘Well’?
Alexandra Barrage, a partner in Troutman Pepper’s Corporate Practice Group, was quoted in the July 26, 2024 American Banker article, “What Is the Cost of Doing Banking as a Service ‘Well’?”
“In my experience, there is always some tweaking,” said Alexandra Barrage, a partner at Troutman Pepper.
Leaders across the bank – from
Federal Banking Agencies Reiterate Guidance on Managing Risks Posed By Fintech Partnerships and Other Third Party Relationships
Yesterday, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (collectively, the agencies) issued a joint statement highlighting potential risks associated with banks’ arrangements with third parties to deliver bank deposit products and services. While the information is not new, it clearly memorializes the issues that have been at the forefront of recent enforcement actions involving banks operating under a Banking-as-a-Service (BaaS) model.
Following FinCEN’s Lead, Four Federal Banking Regulators Announce AML/CFT Rulemaking
As discussed here, on June 28, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) proposed significant amendments to the anti-money laundering and countering the financing of terrorism (AML/CFT) program requirements for financial institutions subject to the Bank Secrecy Act (BSA). Last week, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively, the agencies) issued a joint statement announcing their own notice of proposed rulemaking for their supervised institutions. The purpose of the proposed rulemaking is to align the agencies’ respective AML/CFT program rules with FinCEN’s proposed revisions, ensuring a unified standard for compliance.
What Is an Involuntary Bankruptcy and How Can Creditors Use This Powerful Tool?
Involuntary bankruptcy is a legal process where creditors compel a company into bankruptcy, as opposed to the company itself filing for relief. This is considered an extreme remedy, with strict requirements and standards for filing such petitions. Involuntary cases are initiated by filing a petition with the Bankruptcy Court under Section 303(a) of the Bankruptcy Code. Creditors can commence an involuntary bankruptcy case against any entity eligible for a voluntary case under Chapter 7 or Chapter 11 of the Bankruptcy Code, with certain exceptions. The court will grant involuntary relief against the debtor for reasons such as the debtor’s failure to timely contest the petition, not paying its undisputed debts as they become due, or if a custodian was appointed to take possession of substantially all of the debtor’s property within 120 days before the petition was filed.
SEC Approves Spot Ether ETFs
On July 22, 2024, the Securities and Exchange Commission (SEC) declared nine registration statements effective under the Securities Act of 1933 for spot Ether ETFs, clearing the way for the ETFs to begin trading on July 23. Spot Ether ETFs are exchange-traded funds (ETFs) that invest directly in Ether, a digital asset that supports the