FDIC

A proposal from the Federal Financial Institutions Examination Council to reshape the CAMELS rating system, which, combined with other related policy moves, are teeing up a sea change in the way banks and their federal supervisors go about their respective businesses.

Members of the House Financial Services Committee pressed prudential bank and credit union regulators about the potential risks of bank lending to private credit firms in a hearing Thursday.

The heads of the Federal Deposit Insurance Corp., National Credit Union Administration, Office of the Comptroller of the Currency and the Vice Chair of Supervision at the Federal Reserve are slated to appear before the House Financial Services Committee Thursday morning.

A revised Basel III endgame proposal from the Federal Reserve would fundamentally change the economics of mortgage lending for banks — improving returns, reshaping pricing and reopening a market they sidelined.

The Federal Reserve, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. said Tuesday they had removed references to reputational risk from certain interagency guidance documents, furthering the administration's state goal of eliminating reputational risk from bank supervision.

Farmers and Mechanics Federal Savings Bank in Bloomfield, Indiana, last turned a profit in 2023.

A proposal from the Federal Deposit Insurance Corp. would require the agency to notify Treasury's Financial Crimes Enforcement Network 30 days prior to major anti-money laundering actions against stablecoin issuers. The rule would also allow issuers to directly share normally confidential information with Fincen during the enforcement process.

The use of cryptocurrency products will only go truly mainstream when everyday consumers feel confident that their assets are not at risk of disappearing because of a mistake or an oversight.

Yotta marketed accounts as FDIC-insured and impossible to lose, then moved $28 million of Californians' money to a Synapse arm its own executives didn't trust.

A report from the Federal Deposit Insurance Corp. found that business clients with large volumes of uninsured deposits fled Silicon Valley Bank, Signature Bank and First Republic at unprecedented speed, contributing to those banks' collapses.

Calls to replace proposed deposit insurance reforms with a revived Transaction Account Guarantee program would make the federal government's role in a bank run purely reactive. That would be a mistake.

Two U.S. banks have failed so far in 2026, continuing the recent pattern of smaller lenders collapsing abruptly due to firm-specific issues. January's failure of Metropolitan Capital Bank & Trust and the early May failure of Community Bank & Trust – West Georgia both fit that mold.

The FDIC moved quickly on Friday to sell $288 million in assets Community Bank and Trust – West Georgia to Anchor Bank, but the sale announcement leaves the fate of $27 million in uninsured deposits to be determined. 

Even as they continue to press for additional changes, banks get some wins from the revised Basel capital framework and a ballpark estimate of their capital outlook for the next few years.

Community banks' primary objection to the Main Street Depositor Protection Act appears to be that one provision of it would give credit union customers the same level of deposit protection as bank customers.

The Federal Deposit Insurance Corp., Federal Reserve and Office of the Comptroller of the Currency Thursday finalized a rule lowering the community bank leverage ratio from 9% to 8% as well as extending compliance deadlines. 

The credit startup is seeking a limited-purpose charter from federal regulators through the Competitive Equality in Banking Act's credit card bank carveout.

The FDIC rescinded guidance that advised charging customers multiple nonsufficient-funds fees for the same transaction could be considered unfair or deceptive.

After a nearly two-decade long "ice age" in which few new banking charters were granted, regulators have shrugged off a zero-failure mentality and are allowing some risk back into the system.

The FDIC board voted unanimously to issue a proposal putting a rebuttable ban on bank-issuers paying yield on stablecoins, another narrowing AML requirements and a third prohibiting examiners using reputational risk in exams, outside of operational or financial risks.