FDIC Amends FOIA Regulations in Accordance with FOIA Improvement Act

The FDIC published a Notice of an Interim Final Rule and Request for Comment in the November 22 edition of the Federal Register. The new rule amends FDIC regulations in accordance with requirements set forth in the FOIA Improvement Act of 2016. The new rule also codifies changes brought about by prior amendments that had already been incorporated into agency practice. To meet the Act’s statutory deadline, the interim rule was adopted without prior notice and comment and became effective immediately upon publication on November 22. Comments on the interim rule are due on January 23, 2017, after which the FDIC will remove the interim designation.

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FDIC Board Approves Final Rule on Deposit Account Recordkeeping Requirements to Facilitate Timely Payment of Insured Deposits in Large Bank Failures

On November 15, the FDIC approved a final rule establishing systems and recordkeeping requirements for large FDIC-insured institutions to facilitate the prompt payment of insured deposits to customers upon the failure of any such depository institution. The final rule requires each insured depository institution that has two million or more deposit accounts to: (i) configure its IT system so that it is capable of calculating insured and uninsured amounts in each deposit account by ownership right and capacity; and (ii) maintain complete and accurate records with all information needed by the FDIC to determine deposit insurance coverage with respect to each deposit account. The final rule will become effective April 1, 2017.

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FDIC Vice-Chairman Speaks On Strengthening Global Capital

FDIC Vice-Chairman Thomas M. Hoenig spoke at the 22nd Annual Risk USA Conference in New York on November 9. He delivered prepared remarks on “Strengthening Global Capital: An Opportunity Not To Be Lost.” Hoenig discussed his views on key factors at the core of the debate over what defines adequate capital. Specifically, he discussed the controversy over alternative measurements for judging adequate capital currently being considered by the Basel Committee, which he believes will weaken current standards and ultimately justify lower levels of capital. According to Hoenig, “[m]omentum is developing within the Basel Committee to undermine measures that could increase bank capital levels, and some jurisdictions are threatening to walk away if the measures are thought too strict.” Hoenig recommended that the United States “should avoid joining this race to the bottom.”

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FDIC Releases Second Volume in its Affordable Mortgage Lending Guide

On November 3, the FDIC released the second volume of its recently-introduced Affordable Mortgage Lending Guide (Guide). The Guide is designed to help bankers learn about, and make comparisons of, available affordable mortgage-related programs, as well as their Community Reinvestment Act implications. This second installment of the Guide focuses on programs offered by and/or through state housing-related finance agencies across the country including, for instance, down payment and closing assistance, mortgage tax credit certificates, and homeownership education or counseling. The first volume in the series, released earlier this year, covered federal and GSE programs, and a third installment is expected to cover programs available through Federal Home Loan Banks.

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FDIC Proposed Rule to Consolidate Regulations

On November 1, the FDIC published a proposed rule that would rescind and remove Part 391 subpart A (Security Procedures, transferred from the former OTS) from the Code of Federal Regulations and to amend FDIC regulations at Part 326 to make the removed OTS regulations applicable to state savings associations. Comments on the proposal are due by January 3, 2017.

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