James Lovely’s Post

🚨 Federal regulators seem to be tightening oversight on bank-fintech partnerships! 🔍 The FDIC directed Sutton Bank (OH) and Piermont Bank (NY) to bolster third-party relationship oversight, citing compliance lapses. 💰 No fines imposed, but corrective actions are mandatory. 🔒 Sutton Bank, with $2.2 billion in assets, who describes itself as the top community bank issuer of prepaid cards and related products, collaborates with fintechs like Albert and Block. 🔒 Sutton Bank's order emphasizes anti-money laundering upgrades and vigilant monitoring of suspicious activities. 🤔 In a letter to the FDIC earlier this year, several lawmakers expressed concern about the chilling effects this sort of enforcement may have on banks, particular community banks. Seems like the FDIC is not listening. 😕 Stay tuned for more updates on this evolving trend! #FDIC #BankingNews #FintechGovernance 🏦💼🔍

In a decisive move to safeguard depositors and stabilize the regional banking sector, the FDIC has seized Republic First Bancorp, a Philadelphia-based lender struggling with financial instability. The bank's operations, including all assets and $4Bn in deposits, have been transferred to Fulton Bank. This transition, costing the FDIC's fund an estimated $667Mn, nearly doubles Fulton's footprint in Philadelphia, signaling a bold step towards greater regional stability. As Republic Bank's branches prepare to reopen under Fulton’s name, this pivotal action underscores the ongoing challenges and regulatory responses shaping the U.S. banking industry's future. #republicbank #FDCI #qf #quantumfinserv #follow

The FDIC Board of Directors voted 3-2 to approve a notice of proposed rulemaking that would revise significantly the FDIC’s brokered deposits regulations, which the FDIC overhauled in late 2020. Here are the four things that banks and fintechs should know: https://okt.to/2CJq9k

Bank Director recently published its 2024 RankingBanking Report, an annual analysis of the largest 300 publicly traded banks by performance. This year proves that the community bank model is far from dead. In fact, it’s thriving. Take a look at the full list and dive into the article on Five Star Bank - California to see how they're using nCino, Inc.to streamline operations and drive growth. Click here to access the full study: https://lnkd.in/eKrQkSit

On July 30, 2024, the FDIC Board of Directors proposed a rule change that could significantly alter how banks classify deposits associated with third-party service providers. How will yet another change in this area impact community bankers? #CommunityImpact #DepositManagement #TreasuryManagement #Ampersand https://lnkd.in/gUGRKaBD

Attention community banks: the OCC may soon be looking for your strategic plan. In recent weeks, through a series of public enforcement actions involving Vast Bank, Upstate Bank, and Heritage Bank, the OCC has clearly communicated expectations for the kind of strategic planning it wants to see from at least some of its community banks. The expectations for strategic planning communicated in these orders are extensive, imported not only from the business plan guidelines in the Interagency Charter and Federal Deposit Insurance Application but also from the OCC’s Heightened Standards - a rule that generally applies only to banks with $50 billion or more in assets. This is tough stuff.  I’ve put quite a few of these plans together and they are no joke.  For a troubled bank to put one together in the kind of timeframe the OCC is imposing is a big lift. My team at Klaros Group has prepared many business plans for submission with charter and acquisition applications. Those business plans typically incorporate risk governance frameworks that conform to the Heightened Standards. Preparing these plans takes months and the resulting plans are hundreds of pages long. If you think you might be next on the OCC’s strategic plan naughty list, don’t wait for the order to arrive. Call Klaros. We can help. #bankingasaservice #banks #regulation #fintech

In light of the FDIC's proposal to reverse a four-year-old rule change, bank executives and boards must meticulously evaluate their institution’s liquidity, funding, and capital, especially if billions in deposits are considered risky. Alexandra Steinberg Barrage, a partner in Troutman Pepper’s Corporate Practice Group, provides her insights in a recent Bank Director article. #Banking #FDIC #TroutmanPepper Read more to understand the potential impacts on bank balance sheets: https://lnkd.in/etXbndZb

Please see this article we drafted on the FDIC's proposal to strengthen recordkeeping for custodial deposit accounts and the impact it may have on fintech relationships. #fintech #complianceprofessionals #AML #AMLCFT

So, you want to trade with no M2M? Sure, be a bank! The FDIC first quarter report reveals that the US banking system is bearing a $517 billion in unrealized losses (and has 63 “problem banks” - names? anyone?). In the first quarter of 2024 alone, unrealized losses rose by $39 billion compared to the fourth quarter of 2023. The FDIC highlights that this increase is mainly driven by higher unrealized losses on residential MBSs. #Finance #Banking #FDIC #UnrealizedLosses #Stability

In its ongoing effort to tighten oversight of the relationships between banks and nonbanks, the Federal Deposit Insurance Corporation (FDIC) has issued a proposal to strengthen recordkeeping for custodial deposit accounts. This Update provides a breakdown of the proposal and its practical implications for fintechs and their bank partners. https://bit.ly/47DOPEB Authors: Sam Boro, Dax Hansen, Jim Vivenzio, and Logan Payne #Fintech #InvestmentManagement #DigitalAssets #FDIC