July 23, 2018

July 20, 2018

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A Timely FDIC Reminder on Examination Findings

Five years after issuing its first Reminder on FDIC Examination Findings, the FDIC has reissued and updated the Reminder to stress the importance of open communications between bank management and the FDIC, with particular emphasis on the value of candid feedback from banks regarding FDIC supervisory activities.1

Bank management should especially note that:

  • banks are encouraged to provide feedback on FDIC supervisory programs and seek clarity on the FDIC’s findings and recommendations whenever needed;

  • open discussion is invited at the examiner, field office and regional levels whenever a bank has concerns about examination findings; and

  • retaliation against any bank by examiners or other FDIC personnel is expressly prohibited.

The Reminder pointedly recognizes cooperative, continuing communication between examination staff and bank management as a critical element of effective bank supervision. To that end, the FDIC seeks to foster open, informal communication throughout the examination process and encourages discourse by assuring banks that informal communications will not be considered to convey expectations of action by bank management.

Of equal significance, the FDIC urges banks (i) to provide feedback on field examinations, Reports of Examination and other supervisory processes, and (ii) to raise concerns about examination findings, assigned ratings or other supervisory determinations. In particular, banks with concerns may informally discuss matters with examiners-in-charge or FDIC field and regional office personnel, or may file a request for review under the FDIC’s formal appeals process for material supervisory opinions.

Focusing on material supervisory determinations (MSDs), the Reminder confirms a bank’s right to formally appeal any MSD within 60 calendar days after it receives a Report of Examination or other document containing MSDs. Banks with concerns about their interactions involving MSDs may also contact the FDIC Ombudsman for a confidential, neutral source of information and resolution of complaints against the FDIC.

In furtherance of its endorsement of open communication, the Reminder makes it abundantly clear that the FDIC has zero tolerance for retaliation or abuse by its personnel. Banks that believe they have been the victims of retaliation are encouraged to contact their Regional Director or file a complaint with the FDIC Ombudsman or the FDIC Office of Inspector General.


1https://www.fdic.gov/news/news/financial/2016/fil16051.pdf

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Frank A Mayer III, Dinsmore, Financial Services Regulation Lawyer, Enforcement Actions Attorney
Partner

Frank A. Mayer, III is a partner and Chair of the Financial Services Regulatory & Enforcement Group (FinsReg).

Frank advises and defends regulated business enterprises with a special emphasis on financial service organizations, foreign banking organizations, U.S. insured depository institutions, non bank credit providers and mortgage loan product platforms, payment systems and related participants, directors, special board committees and officers in connection with supervisory and enforcement matters as well as mergers and acquisitions. He...

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Richard M. Berman, Dinsmore, Vendor management Lawyer, Cash Management Attorney, Philadelphia, PA
Partner

Richard is a Partner in our Corporate Department and a member of the Financial Services, Regulatory and Enforcement Group (FinsReg). In his more than 25 years of practice, he has gained extensive experience providing legal counsel and advice to national, regional and community based financial institutions as both a law firm partner and in-house counsel.

Richard’s multi-faceted legal experience, coupled with a strategic business sense, allows him to help his clients navigate the many complex legal and business issues that challenge their organizations. He routinely counsels financial services clients on a wide array of matters such as regulation, vendor management, operational matters, cash management, loss prevention and security, claims, litigation, lending and asset recovery. With special concentration on the operational side of the institution, he has assisted his clients in responding to a broad spectrum of issues arising on a daily basis, including interbank payments, internal and external fraud, customer claims, customer transactional issues, retail operations issues, bank security concerns, legal process, lending and vendor management matters. Richard also is skilled in advising financial institutions on matters involving the Uniform Commercial Code (UCC), Electronic Funds Transfer Act/Regulation E, National Automated Clearing House Association (NACHA) Rules, and Expedited Funds Availability Act/Regulation CC.

His flexible, integrated approach to addressing complex issues, transactions, claims, litigation and regulatory matters allows him to guide clients through the multi-dimensional impact of decisions including the impact upon various constituencies. Richard’s ability to assess risks from a strategic and practical view as well as his ability to communicate legal terms in a way his clients understand make him a trusted advisor. 

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Jonathan L. Levin, Dinsmore, banking issues lawyer, Charter Licensing Matters Attorney
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Jonathan Levin is Partner Of Counsel in our Philadelphia office and a member of the Financial Services Regulatory & Enforcement Group (FinsReg) in the Corporate Department. He focuses his practice on providing regulatory counsel to banks and financial companies.

After 21 years in private practice, he joined Bear Stearns & Co. Inc. in October 2006 as Chief Compliance Officer and Chief Regulatory Counsel of their subsidiary bank. Before joining Dinsmore, he maintained his own financial services law practice for seven years.

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Luke is a member of the Corporate Department, focusing his practice primarily on taxation, as well as trust & estate issues. He has experience handling a variety of tax issues for clients, including federal and state estate tax matters, as well as local and state tax matters for corporate clients. Luke also has counseled clients on a variety of general corporate and traditional business matters, including transactions, executive compensation and employee benefits.

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