On June 25, 2023, Governor Michelle W. Bowman of the US Federal Reserve Board (FRB) gave a speech at the Salzburg Global Seminar on Global Turbulence and Financial Resilience reflecting her views on the way ahead for regulatory reform resulting from the series of bank failures across the United States in the spring of 2023, including Silicon Valley Bank (SVB), Signature Bank (Signature), and First Republic Bank.

On May 25, 2023, the Office of the Comptroller of the Currency (OCC) announced revisions made to its Policies and Procedures Manual 5310-3 (PPM). The updated PPM is intended to address concerns for banks that exhibit, or fail to correct, “persistent weakness.” The PPM now includes “Appendix C: Actions Against Banks with Persistent Weaknesses” to clarify how the OCC determines if a bank has persistent weaknesses and what actions the OCC may take to address them.

On June 6, 2023, the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of Currency (OCC) (collectively, the “Agencies”) issued a final joint guidance to help all banking organizations manage risks associated with third-party relationships, including financial technology companies (fintech). The joint guidance is intended to provide consistency in the Agencies’ supervisory approaches, and it will replace each of the separate Agencies’ current guidance on the topic.

Previously, we reported on the Consumer Protection Financial Bureau’s (CFPB) proposed amendments to Regulation Z. The amendments come as part of the President’s Competition Council, an initiative to promote competition in the American economy by limiting junk fees, such as credit card late fees.

Recently, the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corporation (FDIC) have both issued guidance to address the risks associated with bank overdraft protection programs. The guidance comes after a similar circular from the Consumer Financial Protection Bureau (CFPB) was issued in October 2022 and identifies certain practices that may result in heightened risk exposure.

The Consumer Financial Protection Bureau (CFPB) has updated the Federal Fair Credit Report Act (FCRA) Summary of Rights (“Summary”) for the first time since 2018. The final rule (“Rule”) makes only non-substantive corrections and updates, including updated contact information and chapter headings. The Rule will be effective April 19, 2023, but the mandatory compliance date is March 20, 2024.

On April 3, 2023, the Consumer Financial Protection Bureau (CFPB) issued a Policy Statement on abusive acts and practices. Since Congress passed the Consumer Financial Protection Act of 2010 (CFPA or “Act”), the CFPB has used the provisions of the Act to condemn those who engage in the prohibited abusive conduct.

On March 14, Federal Reserve Governor, Michelle W. Bowman, addressed the continuing innovation in the financial sector. Though some have criticized the bank regulators as being “hostile to innovation,” Bowman applauded regulators for their continual efforts toward learning and adapting to facilitate a clear and transparent road to bank innovation.

On March 15, 2023, the Congressional Research Service (CRS) released a report1 to analyze both benefits and risks of an expanding Consumer Finance and Financial Technology (Fintech) sector. According to CRS, the new technology has the potential to “improve consumer experiences, lower the cost of providing financial products, and expand access to underserved consumers.” However, they could also raise new policy issues, as many of the existing financial laws and regulations do not address the most recent technological changes.

On February 17, 2023, Illinois Representative Hoan Huynh introduced HB3064, the Small Business Truth in Lending Act, to “protect business owners from predatory business loans.” 

Fraud prevention has been at the forefront of discussions in the financial sector during the early part of 2023, as such federal agencies as the Financial Crimes Enforcement Center (FinCEN), the Federal Trade Commission (FTC), and other federal entities roll out warnings of fraud.

On February 21, the New York Department of Financial Services (NYDFS) announced that through the use of new insider trading and market manipulation risk monitoring tools, it would possess an “enhanced ability to detect fraud and other illegal activity” being perpetrated New York state-regulated entities engaged in virtual currency.

On February 16, 2023, the Office of the Comptroller of the Currency (OCC) issued the “Change In Bank Control” booklet of the Comptroller’s Licensing Manual1 (“Booklet”) to replace the version issued September 2017. The newest issue contains updated guidance as well as necessary corrections, including updated references and other minor modifications.

On October 04, 2022, the Biden Administration (the “Administration”) released a Fact Sheet that announced the “new public and private-sector efforts to advance racial equity” that will be utilized by the Administration.

On February 13, 2023, Federal Reserve Board (FRB) Governor, Michelle W. Bowman, spoke at the American Bankers Association Community Banking Conference and addressed the bank merger application delays.

Last week, we reported on the Consumer Financial Protection Bureau’s (CFPB or Bureau) proposed amendments to Regulation Z to target credit card fees.

On February 1, 2023, the Superintendent of Financial Services, Adrienne A. Harris, announced that the New York State Department of Financial Services (NYDFS) has adopted a new regulation “to improve fairness and transparency in the financing process.

On February 1, 2023, the Consumer Financial Protection Bureau (CFPB or Bureau) proposed a rule that could reduce consumers’ late credit card fees by as much as $9 billion annually. The proposed rule would amend Regulation Z to require credit card companies to meet the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD act) requirement that late fees be “reasonable and proportionate” to the collection costs incurred by the companies in relation to the cards.

The Financial Crimes Enforcement Center (FinCEN) has invited all interested parties to comment on the contents of the application that individuals are required to complete in relation to the Beneficial Ownership Information Reporting Requirements final rule that FINCEN published on September 30, 2022 (the “Final Rule”).

Previously, we reported on how the Federal Trade Commission (FTC) released a report Bringing Dark Patterns To Light. On January 19, 2023, the Consumer Financial Protection Bureau (CFPB or Bureau) released a similar circular warning companies that engage in negative option marketing practices of the CFPB’s authority to take action against these practices.