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OCC Identifies Liquidity, Operational, Credit and Compliance Risks as Key Themes in Semiannual Report

On June 14, the Office of the Comptroller of the Currency (OCC) published the spring edition of its Semiannual Risk Perspective, which discusses key issues facing banks. The good news is that the federal banking system saw...more

Announcing Troutman Pepper's New Financial Services Blog and Financial Services App! - The Consumer Finance Podcast [Audio]

Please join Troutman Pepper Partners Chris Willis and James Stevens for a very special announcement about two new great tools for the financial services industry: The Troutman Pepper Financial Services blog and the Troutman...more

Texas Bankers Challenge CFPB’s Section 1071 Rule

On April 26, the Texas Bankers Association and Rio Bank, McAllen, Texas filed a complaint in the U.S. District Court for the Southern District of Texas challenging the Consumer Financial Protection Bureau’s (CFPB or Bureau)...more

It’s Here: CFPB Issues Final Rule Under Section 1071

As promised (and discussed here), the Consumer Financial Protection Bureau (CFPB) issued its final rule under Section 1071 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Final Rule). Section 1071 amended...more

Bank CEOs Testify Before Congressional Committees on Financial Services

On September 21 and 22, chief executives from the nation’s seven largest banks faced questioning before Congress, marking the third time senior bank officers have testified before Congress in the last three years. Senators...more

Banking Regulations in a Crypto World - The Crypto Exchange Podcast [Audio]

In this episode of The Crypto Exchange, Troutman Pepper Consumer Financial Services Partner Ethan Ostroff welcomes James Stevens to examine recent crypto-related activities by banking regulators. Ethan and James discuss the...more

AOCI Losses: What the Big Hit to Banks' Bond Portfolios Means Going Forward

Banks with available-for-sale (AFS) securities have seen significant unrealized losses on their bond portfolios as interest rates have risen. While not an immediate cause for regulatory concern, the change in bond portfolios...more

FDIC Takes Action to Stop Cryptocurrency Companies from Making False or Misleading Representations About Deposit Insurance

On August 19, the Federal Deposit Insurance Corporation (FDIC) issued cease and desist letters to five cryptocurrency companies, demanding they refrain from making allegedly false and misleading statements about deposit...more

SoFi Gets OCC Approval to Acquire National Bank — But Must Stay Away From Crypto

On January 18, the Office of the Comptroller of the Currency (OCC) conditionally approved an application by Social Finance Inc. (SoFi) to acquire Golden Pacific Bank, National Association, so long as the new bank does "not...more

GLBA Safeguards Rule Amendments Become Effective — December 2022 Compliance Countdown for Key Provisions Begins

On January 10, the Federal Trade Commission’s final rule, amending the Standards for Safeguarding Customer Information (Safeguards Rule) under the Gramm-Leach-Bliley Act (GLBA), became effective. We wrote about the final rule...more

CFPB Opens Inquiry Into Buy Now Pay Later

On December 16, the Consumer Financial Protection Bureau (CFPB) issued orders to five companies offering buy now, pay later (BNPL) products. BNPL programs are designed to allow consumers to purchase goods and to defer payment...more

Consumer Groups and State AGs Push Regulators to Tighten Guidance on Bank Partnerships

On October 18, consumer advocate groups and 19 state attorneys general wrote comment letters, urging banking regulators to denounce “rent-a-bank” arrangements between financial institutions and fintechs or other third-party...more

CBA Requests Increased CFPB Supervision of Fintechs Via the Larger Participant Rule

The Consumer Bankers Association (CBA), a trade group of retail financial institutions, recently sent a letter to the Consumer Financial Protection Bureau (CFPB) director, requesting increased supervision of financial...more

CFPB Sets June 2022 Compliance Date for Payday Rule

Nearly four years after the Consumer Financial Protection Bureau (CFPB) issued its final November 2017 "Payday, Vehicle Title, and Certain High-Cost Installment Loans" Rule (Payday Rule), we at long last have a compliance...more

CFPB Issues Long-Awaited Notice of Proposed Rulemaking on Small Business Lending Data Collection

On September 1, the Consumer Financial Protection Bureau (CFPB) issued a 900+ page notice of proposed rulemaking (NPRM) to implement the small business lending data collection requirements under Section 1071 of the Dodd-Frank...more

Most De Novo Banks Will Be Formed by Payments and Fintech Companies

In the future, most de novo banks in the United States will be formed by existing payments and nonbank fintech companies that provide financial services, or groups of players in those industries that want to form a payments...more

Chime Financial Fintech Cannot Claim it is a Bank

The Department of Financial Protection and Innovation (DFPI) of California entered a settlement agreement with Chime Financial, Inc. (Chime), a neobank company that is not licensed to operate as a bank or otherwise exempt...more

Credit Union’s Marijuana-Related Compliance Failure is a Warning to Lenders

Live Life Federal Credit Union, a $69 million-asset credit union based in Fraser, Michigan, recently consented to a cease-and-desist order issued by the National Credit Union Administration Board (NCUA). The enforcement...more

OCC Finalizes Rule Requiring Large Banks to Provide Fair Access to Services, Capital, and Credit

In a final act of his tenure, Brian Brooks, the acting Comptroller of the Currency (OCC) on January 14 finalized a rule to ensure “fair access to banking services provided by large national banks, federal savings...more

De Novos During the Time of COVID-19 [Audio]

Troutman Pepper has produced a series of podcasts on legal and business issues faced by companies during the COVID-19 pandemic. This episode features Troutman Pepper Financial Institutions lawyers Zayne Tweed (moderator) and...more

OCC Proposes New Rule on Fair Access to Banking Services

On November 20, the Office of the Comptroller of Currency (OCC) proposed a rule aimed at ensuring fair access to bank services, capital, and credit. Citing pushes from across the political spectrum to “de-bank” industries...more

Update: Federal Reserve's Revised Control Framework Now Effective and New FAQs Issued

New Rule Effective as of September 30 - The Federal Reserve’s revised control framework under the Bank Holding Company Act (BHCA) and Home Owners’ Loan Act (HOLA) issued on January 30, 2020 became effective on September 30...more

CSBS Continues Streamlining for Payments Firms, Announces One Company, One Exam Program

On September 15, the Conference of State Bank Supervisors (CSBS) announced that money transmitters operating in 40 or more states will be able to take advantage of a new, comprehensive exam designed to satisfy all state money...more

CSBS Continues Streamlining of Licensing for Payments Firms Through 'One Company, One Exam' Program

On September 15, the Conference of State Bank Supervisors (CSBS) announced that money transmitters operating in 40 or more states will be able to take advantage of a new, comprehensive exam designed to satisfy all state money...more

CFPB Releases (Finally) Its Small Business Lending Data Collection Rulemaking Proposal

On September 15, 2020, after considerable delay and pursuant to a court settlement, the Consumer Financial Protection Bureau (CFPB) released its Outline of Proposals Under Consideration and Alternatives Considered for small...more

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