FDIC

The Federal Deposit Insurance Corp. has submitted its request for information — which asks whether banks should bear the burden of proof in merger applications and how much input the CFPB should have in approving deals — to the Federal Register.

The board’s original three-member structure was superior to the five-person model in use today. Here's why it should be reinstated.

Sheila Bair, who served under presidents of different parties, says she is worried about the potential aftermath of the recent partisan power struggle on the board of the Federal Deposit Insurance Corp. She recommends President Biden appoint Republicans or independents to its two open seats to ensure a diversity of ideas.

Meghji only made it a year as chief innovation officer at the Federal Deposit Insurance Corp. before leaving in recent weeks. He describes the obstacles to new ideas within federal banking agencies and banking itself.

A supervisory letter detailing their failings in assessing exposure to a collapsed hedge fund suggests that the Federal Reserve believes banks are falling short in basic risk management.

The Federal Deposit Insurance Corp. reported a spike in troubled assets, suggesting a fairly large bank may be under heightened scrutiny. But confidentiality rules make it impossible to confirm any details.

The New York bank said it called off the acquisition of Amalgamated Bank of Chicago because it has been unable to obtain regulatory approval. But the seller expressed hope that the deal could still move forward.

The Federal Reserve and the FDIC are weighing changes to their policies for reviewing mergers and acquisitions, and that’s creating a sense of urgency among bankers to cinch deals now.

Martin Gruenberg, who became acting chairman of the Federal Deposit Insurance Corp. this week, has named a chief of staff, chief operating officer and general counsel. Their predecessors stepped down last week along with former Chair Jelena McWilliams.

Martin Gruenberg, who on Monday took the reins of the agency for the third time, vowed the Federal Deposit Insurance Corp. would set tougher standards for bank mergers, cryptocurrency-related activities and risk management tied to climate change. It will remain committed to CRA reform and support for minority banks, he said.

The Trump-appointed head of the Federal Deposit Insurance Corp., Jelena McWilliams, said she plans to leave the agency in early February. The announcement comes weeks after Democratic appointees making up a majority of the board had threatened her leadership by acting on policy related to bank mergers without her consent.

Neither Federal Deposit Insurance Corp. Chair Jelena McWilliams nor the board’s three Democratic directors gave ground in their dispute over control of the agency and the direction of bank merger policy during a meeting Tuesday.

The American Bankers Association urged the agency to maintain “an orderly, transparent policymaking process” after three Democratic directors had approved a board action without including Trump-appointed Chair Jelena McWilliams. The U.S. Chamber of Commerce went a step further, accusing them of trying to “circumnavigate” McWilliams’ authority.

In an unprecedented move, two Democrats on the Federal Deposit Insurance Corp.’s board said they had approved a review of the policy without the consent of Trump-appointed Chair Jelena McWilliams. The agency released a statement saying the action had no legal standing.

Net income significantly recovered compared with a year earlier, totaling $70.4 billion. But the average net interest margin fell to another record low as lending remained sluggish, the FDIC said in its quarterly update.

The Federal Deposit Insurance Corp. is soliciting feedback on banks' experiences with remote exams during the pandemic. Some welcome the review as a step toward a more modern examination system, while others contend the last year and a half exposed the drawbacks of long-distance oversight.

Regulators and the Biden administration are considering how to respond to the sharp growth in digital assets pegged to fiat currency. Their options include establishing rules like those for bank deposits and having the Federal Reserve issue a digital dollar that competes with private-sector stablecoins.

The agency signaled during the Trump administration that it would approve more industrial loan companies following an extended freeze in new charters due to policy disputes. But the thaw will likely prove temporary now that the board's makeup has changed.

The agency asked bankers to reflect on their experience with virtual monitoring over the past year amid speculation that the pandemic could speed a full conversion to off-site supervision.

The Federal Financial Institutions Examination Council says bank accounts and information systems have become more vulnerable as mobile and other technologies have expanded. It issued guidelines on detailed steps financial institutions should take to heighten security.