NYLIB Banking Industry Update Vol. 2

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Banking Industry Updates


NYLIB Kicks Off 2019 with Spring Meeting

On Thursday, April 11, 2019, the New York League of Independent Bankers (“NYLIB”) held its Spring Meeting, featuring two distinguished speakers. The evening began as the new president of NYLIB, Ms. Casey Christopher, introduced herself. Ms. Christopher provided her vision for NYLIB to grow both as a think tank for community bankers to share experiences and ideas, and as an advocacy force for local, independent financial institutions. [READ MORE]


Marijuana Banking: The Prospects for Legal Protection

By Contributing Author, John W. Vardaman, General Counsel of Hypur

As New York considers legalizing the recreational use of marijuana, Congress is taking steps to address the issue of marijuana banking. Regardless of one’s views about the merits of marijuana legalization, this should come as welcome news to the New York financial industry. [READ MORE]

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FinCEN Director Encourages Innovation and Resource Sharing for BSA Compliance

On February 4, 2019, FinCEN Director Kenneth A. Blanco delivered his remarks at the SIFMA Anti-Money Laundering & Financial Crimes Conference. Mr. Blanco reiterated FinCEN’s dedication to streamlining BSA compliance through innovation and information sharing.

Last December, the regulatory agencies had issued a Joint Statement . . . [READ MORE]

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OCC Fintech Charter in Limbo

Since the OCC first announced its intentions to offer special purpose national bank charters to Fintech companies (“Fintech Charters”) in December 2016, there has been a slew of legal controversy surrounding the OCC’s authority to grant such charters. In 2017, the Conference of State Banking Supervisors (“CSBS”) and the New York State Department of Financial Services (“DFS”) brought suit challenging the OCC’s authority . . . [READ MORE]

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Developments Regarding the Fifth Pillar

FinCEN's new "fifth pillar" requirement became effective on May 11 of last year and had initially raised some concerns with its implementation. Previously, the four pillars were 1) policies and procedures, 2) a designated compliance officer, 3) employee training, and 4) independent testing. The new beneficial ownership rule added customer due diligence as a fifth pillar . . . [READ MORE]

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CRA Reform May be Completed Within Next Year

Last year, the OCC issued an advance notice of proposed rulemaking to reform the Community Reinvestment Act (“CRA”). The notice sought input on modernizing the implementation of the CRA and invited comments that would modify and streamline the existing CRA performance tests . . . [READ MORE]

To learn more about NYLIB, email info@NYLIB.org.

NYLIB Banking Industry Update Vol. I

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Banking Industry Updates

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OCC Initiative to Create a Flexible Framework for Fintech Companies Met With Resistance

By Eduardo Diaz, Deputy General Counsel, Uniteller - Banorte

In December 2016, the Office of the Comptroller of Currency ("OCC") announced that it would offer a special purpose national bank charter (the "Charter") to non-depository companies, aimed at specifically benefitting fintech companies. According to the OCC... [READ MORE]

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Agencies Propose Simplifying Regulatory Capital Rules

On September 27, 2017, the Board of Governors of the Federal Reserve System ("Board"), the Federal Deposit Insurance Corporation ("FDIC"), and the Office of the Comptroller of the Currency ("OCC") announced a proposal "intended to reduce regulatory burden" on Banks by "simplifying" the agencies' capital rule...[READ MORE]

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FDIC Releases Revised Supervisory Appeals Guidelines

On July 18, 2017, the FDIC adopted a revised version of its Guidelines for Appeals of Material Supervisory Determinations ("MSDs") ("the Revised Guidelines"). Notably, the Revised Guidelines amend the definition of MSD -- and, therefore, which determinations may be appealed through the FDIC's intra-agency process...[READ MORE]

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House Committee Report Finds That the CFPB Settled With Wells Fargo for Less Than 1% of the Statutory Penalty

On September 19, 2017, the House Committee on Financial Services (the "Committee") released a second interim report concerning its investigation into the Consumer Financial Protection Bureau's ("CFPB") handling of the investigation into Wells Fargo (the "Bank")...[READ MORE]

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Scandal-Plagued LIBOR Set to End in 2021

On July 27, 2017, Andrew Bailey, Chief Executive of the U.K. Financial Conduct Authority (the "FCA"), announced plans to phase out the London Interbank Offered Rate ("LIBOR") by 2021. Bailey explained that the rate has now become untenable as "the underlying market that LIBOR seeks to measure -- the market for unsecured wholesale term lending to banks" -- is no longer active enough to provide the basis for a benchmark rate...[READ MORE]

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CFPB Issues First No-Action Letter to an Online Lending Program

On September 14, 2017, the Consumer Financial Protection Bureau ("CFPB") issued the first "No-Action" letter to Upstart Network Inc. ("Upstart") under its "Project Catalyst," a program aimed at encouraging marketplace innovation to allow for greater access to fair and transparent consumer financial markets...[READ MORE]

To learn more about NYLIB, email info@NYLIB.org.