On September 24, 2024, Governor Gavin Newsom signed into law California Senate Bill 1286 (“SB 1286”). SB 1286 will extend existing consumer debt collection protections in California to small businesses and to the collection activities of business debt. In particular, SB 1286 is designed to expand existing prohibitions against debt collectors under the Rosenthal Fair
Latest from The 21st Century Banker
FinCEN Issues Proposed Rule to Enhance Financial Institutions’ AML/CFT Programs
On June 28, 2024, in an effort to bolster financial institutions’ anti-money laundering and countering the financing of terrorism (“AML/CFT”) programs, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a proposed rule that would enumerate the minimum components required to be included within financial institutions’ AML/CFT programs. The types of financial
Proposed CFPB Rule Could Subject “Big Tech” Companies to Enhanced Regulatory Scrutiny
On November 7, 2023, the Consumer Financial Protection Bureau (“CFPB”) proposed a rule that would allow the CFPB to supervise certain large nonbank companies that provide consumer financial services such as digital wallets and payment applications. If enacted, it would subject large technology companies handling more than five million payment transactions per year—such as Apple,
Final Rule Updating the Community Reinvestment Act Issued by Bank Regulators
On October 24, 2023, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency (together, the “Agencies”) issued a final rule designed to modernize and fine tune the Community Reinvestment Act’s (“CRA”) implementing regulations. The Agencies believe that the final rule, which
Federal Regulators Issue Updated Guidance on Liquidity Risks and Contingency Planning
On July 28, 2023, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System (the “Federal Reserve”), the National Credit Union Administration (the “NCUA”) and the Office of the Comptroller of the Currency (together, the “Agencies”) issued an addendum to the Interagency Policy Statement on Funding and Liquidity Risks, originally published
Federal Regulators Issue Notice of Proposed Rulemaking Revising Capital Requirements for Large Banks and Banks with Significant Trading Activity
On July 27, 2023, in an effort to bolster the resilience of the U.S. banking system in the aftermath of recent bank failures and to promote consistency with international banking capital standards, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency
THE RECOVERING EXECUTIVE COMPENSATION FROM UNACCOUNTABLE PRACTICES (RECOUP) ACT VOTED OUT OF SENATE BANKING COMMITTEE
On June 21, 2023, the U.S. Senate Committee on Banking, Housing, and Urban Affairs (the “Senate Banking Committee”) voted the Recover Executive Compensation from Unaccountable Practices Act (the “RECOUP Act”) out of committee and into the full Senate by a vote of 21 to 2. U.S. Sen. Sherrod Brown, Chairman of the Senate Banking Committee,
Federal Reserve, FDIC and OCC Issue Streamlined Guidance to Mitigate Risks Associated with Third-Party Relationships
On June 6, 2023, in an effort to promote consistency and clarity across the bank regulatory landscape, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency (together, the “Agencies”) issued joint guidance offering the Agencies’ combined approach to bolstering regulated banking
FDIC Proposes Potential Reforms to Deposit Insurance in the U.S. Banking System
On May 1, 2023, the Federal Deposit Insurance Corporation (the “FDIC”) released a comprehensive discussion and analysis of potential courses of action that could be taken to reform the deposit insurance system in response to the recent string of failures of insured depository institutions. The three options for reform are briefly described below:
2023 Banking Crisis: What Next?
The Silicon Valley Bank (“SVB”) closure was the largest bank failure since the 2008 financial crisis—and second largest in U.S. history. While the banking industry, federal banking agencies and the market at-large continue to react to the fallout and look to determine the root causes, the industry is likely to see a number of potential