2010 Washington Fly-In
2010 Washington Fly-In
RREEGULATORY REFORM GULATORY REFORM
UPDATEUPDATE
Buz GormanBuz GormanMargaret LiuMargaret Liu
John RyanJohn Ryan
March 22-23, 2010March 22-23, 2010
2010 Washington Fly-In
2010 Washington Fly-In
2
2010 Washington Fly-In
2010 Washington Fly-In
Percentage of Charters by Authority
As of 12/31/2009
9% OTS
18% OCC
2010 Washington Fly-In
2010 Washington Fly-In
3
2010 Washington Fly-In
2010 Washington Fly-In
Numbers of Charters by Authority
STATE % OCC % OTS % TOTALS Change
12/31/2009 5,855 73% 1,465 18% 701 9% 8,021 -293
12/31/2008 6,034 73% 1,540 19% 740 9% 8,314 -393
12/31/2006 6,216 71% 1,723 20% 768 9% 8,707 -1,046
12/31/2000 6,607 68% 2,231 23% 915 9% 9,753 -1,952
12/31/1995 7,676 66% 2,858 24% 1,171 10% 11,705 -1,662
12/31/1992 8,388 63% 3,593 27% 1,386 10% 13,367
2010 Washington Fly-In
2010 Washington Fly-In
4
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
5
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
6
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
7
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
8
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
9
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
10
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
11
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
2010 Washington Fly-In
M&A Deals SummaryM&A Deals Summary
2010 Washington Fly-In
2010 Washington Fly-In
Announced Bank M&A TransactionsAnnounced Bank M&A Transactions
2010 Washington Fly-In
2010 Washington Fly-InBank M&A Transactions Currently Bank M&A Transactions Currently PendingPending
2010 Washington Fly-In
2010 Washington Fly-In
Completed Bank M&A TransactionsCompleted Bank M&A Transactions
2010 Washington Fly-In
2010 Washington Fly-In
Terminated Bank M&A TransactionsTerminated Bank M&A Transactions
2010 Washington Fly-In
2010 Washington Fly-In
Capital Offerings SummaryCapital Offerings Summary
2010 Washington Fly-In
2010 Washington Fly-In
Announced Bank Capital OfferingsAnnounced Bank Capital Offerings
2010 Washington Fly-In
2010 Washington Fly-In
Pending Bank Capital OfferingsPending Bank Capital Offerings
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse• Wall Street Reform and Consumer Protection Act of
2009• Approved by House 223 to 202
SenateSenate• Latest Dodd Bill released last Monday• Over 1,300 pages• Mark-Up begins Monday afternoon• Chairman Dodd’s Goal: report out before the end of
this week
Financial Regulatory ReformFinancial Regulatory Reform
2010 Washington Fly-In
2010 Washington Fly-InFinancial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
HouseHouse • Combines OCC and OTS• No change to FDIC safety and soundness
responsibilities over state-chartered banks
SenateSenate • Eliminates thrift charter; eliminates OTS• Fed oversees (and assesses exam fees
on)• All bank and thrift holding companies
above $50 billion• Non-bank financial holding companies
identified as systemically significant
2010 Washington Fly-In
2010 Washington Fly-InFinancial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate(cont’d)(cont’d)
• Fed loses supervisory responsibility for state-member banks
• Fed retains rulemaking authority for state-member banks
• FDIC becomes primary federal regulator for:• All state-chartered banks• State bank holding companies $50 billion
and under
2010 Washington Fly-In
2010 Washington Fly-InFinancial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate(cont’d)(cont’d)
• OCC gains supervisory authority over:• Federal thrifts• Non-bank affiliates• National bank and thrift holding
companies $50 billion and under• State and National Bank “Exam Fee Parity” -
OCC to propose to FDIC an amount to be transferred to subsidize OCC’s supervision of depositories at or below $50 billion
2010 Washington Fly-In
2010 Washington Fly-InFinancial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
HouseHouse • Creates Financial Stability Oversight Council (“FSOC”)
• Includes a state banking commissioner as a non-voting member
SenateSenate • Creates Financial Stability Oversight Council (“FSOC”)
• No state banking commissioner representation on FSOC
• Establishes Office of Financial Research in Treasury and supporting FSOC
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • Provides for emergency stabilization for systemically significant firms in receivership
• TARP-like authority to support solvent institutions outside of resolution process
Financial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate • Does not contain similar provisions
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • Exercise of Fed’s section 13(3) authority must be “broadly available” and requires Treasury concurrence
Financial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate • Fed’s section 13(3) authority limited to systemically significant industry utilities or broad-based programs
• Fed, in consultation with Treasury, to develop emergency lending policies and procedures
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • Requires 2/3 vote of the Fed and FDIC plus written determination by Treasury
• FDIC is receiver
Financial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate • Requires 2/3 vote of Fed and FDIC• Requires finding by 3-judge special
bankruptcy panel that firm is in default or in danger of default
• FDIC is receiver
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • Pre-funded up to $150 billion by assessments on companies with at least $50 billion in assets
Financial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate • Pre-funded up to $50 billion by assessments on companies with at least $50 billion in assets
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • None
Financial Stability and Prudential SupervisionFinancial Stability and Prudential Supervision
SenateSenate • “Exam Fee Parity” provision requires OCC to propose to the FDIC an amount for FDIC to transfer to the OCC to promote exam fee parity between state and federally-chartered depostitories.
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • Creates CFPA as independent agency• CFPA starts with single Director and then
replaced with 5-member Commission• Oversight Board includes SLC Chair
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Creates Bureau of Consumer Financial Protection located within – but autonomous from -- Fed
• Bureau headed by Director named by President and confirmed by Senate
2010 Washington Fly-In
2010 Washington Fly-In
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Primary federal rulemaking, examination and enforcement authority under long list of federal financial consumer protection laws
HouseHouse • Primary federal rulemaking, examination and enforcement authority under long list of federal financial consumer protection laws
2010 Washington Fly-In
2010 Washington Fly-In
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Covered entities:• Depositories• Non-depository mortgage businesses• Other larger non-depositories
providing consumer financial services and/or products as determined by Bureau and FTC
HouseHouse • Covered entities• Depositories • Non-depositories providing consumer
financial services and/or products (unless explicitly exempted)
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • For banks at $10 billion or under, federal exam responsibility stays with federal safety and soundness agency
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Contains similar provision
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • CFPA required to coordinate with state regulators on rulemaking and examinations
• Risk-focused supervision to consider quality and extent of state regulation
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Bureau required to coordinate with state regulators on examinations
• Risk-focused supervision to consider consumer protections under existing law
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • CFPA required to develop registration regime for non-depository covered persons
• CFPA required to coordinate with states and state systems
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Bureau required to develop registration regime for non-depository covered persons
• Bureau required to coordinate with states and state systems
2010 Washington Fly-In
2010 Washington Fly-In
HouseHouse • Federal standards are “floor not ceiling” to tougher state consumer protection standards
• Limited case-by-case carve out for national banks & federal thrifts based on Barnett “prevents or significantly interferes with” standard
Consumer Financial ProtectionConsumer Financial Protection
SenateSenate • Federal standards are “floor not ceiling” to tougher state consumer protection standards
• Limited case-by-case carve out for national banks & federal thrifts explicitly referencing Barnett decision
2010 Washington Fly-In
2010 Washington Fly-InSpecific IssuesSpecific Issues
Expanding State-Federal CoordinationExpanding State-Federal Coordination•Mandated state-federal coordination across prudential and consumer protection functions
Role of Federal ReserveRole of Federal Reserve•Preserving Fed supervision over state-member banks and protecting the role of the Reserve Banks •Ongoing advocacy through CSBS statements and letters, national and regional media, and partners (ICBA, ABA, dialogue with Reserve Banks and Board of Governors)
2010 Washington Fly-In
2010 Washington Fly-In
Pre-emptionPre-emption•Continue advocacy through CSBS Statements and letters, national and regional media, and partners (NGA, Attorneys General, Consumer Groups)•Constant vigilance against efforts to expand national bank pre-emption and erode state enforcement authorities
Lending LimitsLending Limits•Need to strike language from Senate Bill
Specific IssuesSpecific Issues
2010 Washington Fly-In
2010 Washington Fly-In
De Novo Branching and Closing the Thrift Loophole De Novo Branching and Closing the Thrift Loophole in the Deposit Capin the Deposit Cap•ICBA neutral on branching•Push back from state banking trades
Specific IssuesSpecific Issues
2010 Washington Fly-In
2010 Washington Fly-In
Thank You