Ebrima Santos Sanneh

Banking regulators have been debating how to reform the implementing regulations for the Community Reinvestment Act across two presidential administrations. But despite banks' urging to slow down, regulators are poised to finish the job in early fall.

The American Bankers Association and Bank Policy Institute Tuesday urged bank regulators to delay the finalization of its Community Reinvestment Act rule, saying regulators have not calibrated the rule to account for upcoming capital changes or considered whether courts will find the Consumer Financial Protection Bureau's funding structure constitutional.

John Paul Dillon pleaded guilty to nearly $1 million in fraud related to COVID-19 emergency small-business programs, including the Payroll Protection Program and the Economic Injury Disaster Loan Program and a fraudulent loan application for a mortgage.

The Office of the Comptroller of the Currency granted federally chartered banks permission Monday to close branches in California, Nevada and Arizona affected by Tropical Storm Hilary.

Banking and credit union regulators encouraged compassionate treatment of customers in Hawaii communities hit by wildfires. They also vowed to grant expedited approvals of temporary banking facilities, be flexible in compliance matters and provide other support to financial institutions.

Forthcoming regulations to strengthen capital buffers and resolution processes for large regional banks are sparking debate about those proposals' efficacy and compounding existing problems for regional banks around stability and funding costs.

Federal Deposit Insurance Corp. Chair Martin Gruenberg said Monday that the agency is not backing down on its Basel III capital proposal, and wants to implement long-term debt requirements and adjustments to the living wills and uninsured deposit rules.

Fannie Mae and Freddie Mac can likely withstand potential credit losses twice as high as last year's in the latest scenario, but they are at more risk of slipping into the red.

The Federal Reserve issued fresh policy guidance around stablecoin issuance, distributed ledger technology and fintech partnerships. Legal and policy analysts anticipate a further chilling effect on bank engagement with so-called novel activities.

The Federal Reserve has outlined the process state member banks must follow before issuing, redeeming or holding stablecoins. The agency also says it will create an examination process to monitor novel activities.

The payment giant's entry into the stablecoin market is expected to renew the debate over the appropriate regulatory oversight for digital tokens. It could also have ripple effects in areas such as the debate over instant payments.

The Federal Deposit Insurance Corp. issued a cease-and-desist order to Unbanked, Inc. — a cryptocurrency-focused nonbank — for making false claims about FDIC deposit insurance coverage on its crypto-related products Friday.

Regulators remain skeptical toward digital assets in the wake of major crypto-industry partner-bank failures, but in the absence of legislative direction, oversight of crypto is largely left to the Securities and Exchange Commission. The SEC's approach has been aggressive, but its authority has been muddied by recent court decisions.

Dream First Bank of Syracuse, Kan. is assuming all deposits and most of the assets of Heartland Tri-State Bank of Elkhart, Kan. following a purchase and assumption agreement with the Federal Deposit Insurance Corp., representing a $54.2 million hit to the Deposit Insurance Fund.

The FDIC proposed raising capital requirements for banks with $100 billion or more in total assets gradually over the next five years. Republican appointees on the board opposed the rule as excessive and impetuous.

A report by the Public Company Accounting Oversight Board raised concerns about declining audit quality across the accounting industry for a second consecutive year. The report found instances of firms using insufficient testing and inadequate support for audit conclusions.

The Office of the Comptroller of the Currency levied the civil money penalty against American Express National Bank for failing to implement adequate call-monitoring controls and track customer complaints with a third-party affiliate.

The Minnesota Bankers Association and Lake Central Bank jointly filed a lawsuit against the Federal Deposit Insurance Corp. over its nonsufficient funds fee rules' inclusion of "unfair or deceptive acts or practices" violations in its policy.

The Crypto-Asset National Security Enhancement and Enforcement Act would increase regulatory oversight of cryptocurrencies traded on public blockchains and guard against money laundering and sanctions evasion, particularly by holding the largest crypto investors accountable for compliance.

Both parties agree the registry's rules need to be more targeted, while Democrats decried a Republican push to cut the agency's funding.