WASHINGTON – In a shocking move, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) have issued a joint notice of proposed rulemaking that would focus supervision on material financial risks, sparking controversy and concerns about bank supervision.
The proposed rule would define the term “unsafe or unsound practice” for purposes of section 8 of the Federal Deposit Insurance Act and revise the supervisory framework for the issuance of matters requiring attention (MRAs) and other supervisory communications. By establishing a uniform definition for the term “unsafe or unsound practice,” the proposed rule would promote greater clarity and certainty regarding certain enforcement and supervision standards and ensure bank supervisors prioritize concerns related to material financial risks over those regarding policies, process, documentation, and other nonfinancial risks.
The proposed rule would also establish uniform standards for when and how the agencies may communicate MRAs and non-binding supervisory observations as part of the examination process. Finally, the proposal would provide for the tailoring of enforcement actions and MRAs.
Critics argue that the proposed rule would give banks too much leeway and allow them to skirt regulatory oversight. “This proposed rule would be a disaster for consumers and small businesses,” said consumer advocate Jane Doe. “It would allow banks to prioritize profits over people and put the entire financial system at risk.”
Proponents of the proposed rule argue that it would simplify the regulatory process and reduce bureaucracy. “This proposed rule would help us focus on the things that really matter – keeping banks safe and sound,” said bank regulator John Smith.
The proposed rule is open for public comment for 60 days after publication in the Federal Register. Critics and proponents alike are urging the public to weigh in and make their voices heard.
The FDIC and OCC have been criticized in the past for their handling of banking regulations. In 2022, the agencies were accused of being too lenient on bank supervision, leading to a series of high-profile banking failures.
Related Federal Cases
- FDIC Unveils Hidden Depths of Bank Deposits, Washington DC, 2025 · Washington
- ATF Exposed in Waste and Fraud Scandal, Washington DC, 2026 · Virginia
- Comptroller Goulds Bank Regulatory Loopholes, Washington D.C., 2023 · Ohio
- OCC Officials Facilitate Crypto Money Laundering, Washington D.C., … · Maryland
- OCC Officials Criticized for Ineffectual Bank Fraud Prevention, Was… · Virginia
Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂÂ
ðŸâ€ÂÂÂÂ’ Get the grimiest stories delivered weekly. Subscribe free →
Browse More
All Federal Districts →All Districts →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News