Deadline extensions and public hearings are among the notable
news items on the radar for federal regulators.
Below are a few pieces of news that may not make for the
most exciting headlines but are important for financial institutions to know:
Fed, FDIC extend resolution plan deadline
In consideration of comments received in response to
proposed guidance issued in August 2023, the Federal Reserve and the Federal
Deposit Insurance Corp. recently announced their decision to extend the
resolution plan submission deadline for certain large financial institutions to
March 31, 2025, instead of July 1, 2024. By law, certain large financial
institutions must periodically submit to federal regulators plans for winding
down their assets in the event of a failure. These plans are also known as
“living wills.” More information is available here.
SEC releases enforcement results for FY 2023
In
the fiscal year 2023, the Securities and Exchange Commission (SEC) initiated
784 enforcement actions, which is 3 percent more than the previous year. Among
these actions, 501 were standalone cases, marking an 8 percent increase from
the year before. Additionally, the SEC initiated 162 “follow-on” administrative
proceedings to restrict individuals from specific roles in the securities
markets due to criminal convictions, civil injunctions or other orders. Another
121 actions were issued against companies allegedly late in submitting
necessary documents to the SEC. Learn more here.
OCC to host subcommittee hearing on appraisal bias
The Office of the Comptroller of the Currency will host a
public hearing of the Appraisal Subcommittee on appraisal bias on Feb. 13 from 10 a.m. to 1 p.m., at its headquarters in
Washington, D.C. Acting Comptroller of the Currency Michael Hsu is slated to
provide opening remarks. Representatives from the five Federal Financial
Institutions Examination Council (regulatory agencies will comprise the panel,
along with the U.S. Department of Housing and Urban Development and the Federal
Housing Finance Agency. Witnesses will include representatives from the
Appraisal Foundation, state appraiser licensing and regulatory organizations
and active appraisers. Read more here.
NCUA takes action against former credit union employee
The National Credit Union Administration (NCUA) recently issued
a prohibition notice permanently prohibiting a former credit union from working
for any federally insured depository institution for allegedly stealing money
from member accounts. The employee agreed to sign the notice without admitting or
denying making unauthorized withdrawals, though she was terminated and
prosecuted for embezzlement by local law enforcement. NCUA administrative orders
of this nature are a form of enforcement order issued under Section 206 of the
Federal Credit Union Act, according to the agency’s website.