FDIC to rescind four policies deemed outdated
WASHINGTON — The Federal Deposit Insurance Corp. is proposing to retire four "statements of policy" as part of an ongoing effort to explore ways to reduce the industry's regulatory burden.
The four statements headed for the FDIC's chopping block include 1982 guidelines on how the Glass-Steagall Act applied to securities units of FDIC-regulated banks, two policies from the 1990s dealing with the treatment of certain holdings in a failed-bank receivership, and a 1997 statement on how the FDIC contracts with firms that have unresolved audit issues.
The policy statement related to Glass-Steagall "was superseded in its entirety by the enactment of the Gramm-Leach-Bliley Act," the agency said in a notice published Sept. 30 in the Federal Register.
In a letter Thursday to all FDIC-insured institutions, the agency said it "is reviewing all of its Statements of Policy and will identify opportunities for updates and additional streamlining." That review is consistent with a 2017 report submitted to Congress under the Economic Growth and Regulatory Paperwork Reduction Act. That law requires bank regulators to identify outdated or unnecessary rules.
The public will be able to comment on the proposed rescission of the four statements until Oct. 30.