The Federal Deposit Insurance Corp. will be soliciting public input on a proposal by an industry group to simplify the compliance burden on state-chartered banks that conduct interstate operations.The Financial Services Roundtable contends that a state bank should be able to conduct interstate operations based on the laws and regulations of its home state, and the FDIC has the authority to implement such a rule under a 1997 banking law. In a petition to the FDIC, the trade group, which represents 100 of the largest U.S. financial services companies, urges the agency to promulgate a rule. "Such an action would ensure the continued vitality of the dual banking system," the FSR says. In response, the FDIC has decided to hold a public hearing on May 24 to solicit testimony. "The FDIC believes that public participation will provide valuable insight into the issues presented by the petition and will assist FDIC in responding to the rulemaking request," the regulator said. Currently, the branches and operating subsidiaries of state banks with interstate activities have to follow the laws and regulations of the host state, which places state banks at a competitive disadvantage to national banks. This disparity has resulted in an "unprecedented mass migration of assets to the national banking systems," the FSR says in its petition.
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The pending end of the program comes as over half of U.S. states have already ceased accepting new applicants for federal aid aimed to help struggling households with mortgage payments.
32m ago -
But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
56m ago -
Mortgage payments rose 10% year-over-year to an all-time high for March, Redfin said.
2h ago -
In an interview, Candor Technology's Sara Knochel recounts how she applies her childhood interest in languages and numbers to crucial home lending issues.
10h ago -
Harmonizing standards for liquidity coverage ratios and discount window pledges could prevent the type of strains that led to last year's bank failures, according to a new paper whose authors include former Federal Reserve Govs. Dan Tarullo and Jeremy Stein.
March 27 -
The report seeks to help banks "disrupt rapidly evolving AI-driven fraud," according to Treasury's Nellie Liang. The report found banks have difficulties accounting for AI risks.
March 27