Bank & Thrift Regulation & Enforcement

Please join us for a complimentary half-day conference presented by the Financial Institutions Group of Vedder Price.

When & Where

Wednesday, May 9, 2018
7:45 a.m.–Noon (CT)

Chicago Club
81 East Van Buren Street
Chicago, IL 60605

Keynote Speaker:

Alberto J. Paracchini
President and Chief Executive Officer
Byline Bank


Mergers & Acquisitions and Capital Markets Update

  • William Burgess, Principal, Sandler O’Neill + Partners, L.P.
  • Allen G. Laufenberg, Managing Director, Keefe, Bruyette & Woods, a Stifel Company

Executive Compensation, Litigation, Fintech and Regulatory Update

  • Vedder Price Financial Institutions Group

A full agenda will be announced in the coming weeks.

CLE Credit

Vedder Price is an accredited CLE provider in California, Illinois, and New York; and, when possible, a sponsor in Virginia.

To register, please click here.

The Wall Street Journal recently reported that the management component of the CAMELS rating for Wells Fargo Bank, NA had been downgraded to a “3” during 2017.  A “3” rating of management means that the capabilities of management or the board of directors “may be insufficient for the type, size or condition of the institution.”  At best, a “3” rating of management equates to a C minus on a report card.
Continue Reading Wells Fargo’s CAMELS Rating Leaked

The Community Reinvestment Act (CRA) was enacted in 1977 to prevent redlining and to encourage banks and savings associations (collectively, banks) to help meet the credit needs of all segments of their communities, including low- and moderate-income neighborhoods and individuals.  Today, CRA and its implementing regulations require federal banking regulators to assess the record of each bank in fulfilling its obligation to the community and to consider that record in evaluating and approving applications for charters, bank mergers, acquisitions, and branch openings.

Continue Reading The Trump Administration to Seek Changes to the Community Reinvestment Act

On December 21, 2017, under the direction of Acting Director Mick Mulvaney, the Consumer Financial Protection Bureau (the “CFPB”) announced that it intends to reopen the rulemaking process to reconsider various aspects of the CFPB’s 2015 Home Mortgage Disclosure Act Rule (the “HMDA Rule”). In reopening the rulemaking process for the HMDA Rule, the CFPB intends to reconsider (i) the institutional and transactional coverage tests and (ii) certain other aspects of the HMDA Rule’s discretionary data points.  Continue Reading New Leadership: The CFPB Announces Its Plan to Reassess the CFPB’s 2015 HMDA Rule

On October 12, 2017, the OCC issued OCC Bulletin 2017-40 announcing the release of its Policies and Procedures Manual 5000-43 (PPM 5000-43), which outlines the OCC’s policy and framework for how the agency determines Community Reinvestment Act (CRA) ratings when there’s evidence of discriminatory or other illegal credit practices directly related to a bank’s CRA lending activities.

Here are our observations and takeaways on the PPM 5000-43:

  • PPM 5000-43 provides that the OCC “only considers lowering the composite or component performance test rating of a bank if the evidence of discriminatory or other illegal credit practices directly relates to the institution’s CRA lending activities.”
  • Any OCC determination to lower an institution’s CRA composite or component rating will be guided by two principles: (1) there must be a “logical nexus” between the assigned ratings and evidence of discriminatory or other illegal credit practices in the bank’s CRA lending activities to ensure alignment between the ratings and the bank’s actual CRA performance; and (2) full consideration is given to the remedial actions taken by the bank.
  • Prior to the lowering of a bank’s CRA composite or component rating, OCC examiners must provide “strong evidence of quantitatively and qualitatively material instances of discriminatory or illegal credit practices directly related to CRA lending activities that have resulted in material harm to customers.”
  • The OCC will assign CRA ratings in light of the bank’s entire record of performance, “including the cumulative impact of supervisory or enforcement actions taken against a bank,” and CRA ratings generally will not be lowered solely based on the existence of evidence of discriminatory or other illegal credit practices prior to commencement of the CRA evaluation if the bank has remediated or taken appropriate corrective actions to address them.
  • In our view, this would indicate that the OCC will not take into account, for purposes of evaluating a bank’s CRA compliance, any alleged unfair or deceptive practices that are not directly related to a bank’s lending activities.

Click here to view the OCC Bulletin 2017-40.