In a recent interview, Comptroller of the Currency Joseph Otting, announced the OCC’s plan to “clarify” its support of bank-offered deposit advance products. “Deposit advance products” are typically defined as small-dollar, short-term loans or lines of credit that are to be repaid from the proceeds of the consumer’s next direct deposit. The WSJ reports that the OCC’s planned announcement will focus on 45-to-90 day loans.
According to the Federal Deposit Insurance Corporation (“FDIC”), from 2000 to 2008 there were 1,042 de novo community banks newly chartered in the United States. From 2011-2017, the FDIC received only 30 de novo applications for deposit insurance. Of those 30 applications received, six have been approved, 10 withdrawn and 14 remain outstanding. At year end 2017, the number of U.S. banks fell below 5,700 – a number the industry hasn’t seen since the 19th century. Recently, the FDIC indicated that it has warmed to the idea of accepting de novo bank applications. Now may be the time for interested investors to assess the possibility of entering the community bank industry.
In November 2016, with the election results confirmed, the banking industry was awash in hopes for a more lenient regulatory posture. To date, the industry has seen no reform. However, on March 14, 2018, the Senate passed and sent to the House of Representatives the bipartisan Economic Growth, Regulatory Relief and Consumer Protection Act (S. 2155) (the “Consumer Protection Act”). Below we provide a brief summary of some of the Consumer Protection Act’s major provisions.
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)
81 East Van Buren Street
Chicago, IL 60605
Alberto J. Paracchini
President and Chief Executive Officer
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.
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.
On January 23, 2018, Mick Mulvaney, Acting Director of the Consumer Financial Protection Bureau (the “CFPB”), published an opinion editorial in The Wall Street Journal (the “Op-Ed”) describing his vision of the CFPB’s role in regulating the financial services industry. The Op-Ed struck a clear and contrasting tone from that of his predecessor, Richard Cordray, in declaring that the CFPB will no longer “push the envelope.” Specifically, Mr. Mulvaney provided his vision relating to three areas of current CFPB operations. Continue Reading The CFPB: No More “Pushing the Envelope”