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Fed Agencies Exposed in Host State Loan-to-Deposit Scam
In a shocking revelation, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency have been caught up in a scandalous scheme to manipulate host state loan-to-deposit ratios.
According to sources, the agencies have been using these ratios to evaluate compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. The law prohibits banks from establishing or acquiring branches outside of their home state primarily for the purpose of acquiring additional deposits.
By law, a bank is generally prohibited from establishing or acquiring branches outside of its home state primarily for the purpose of acquiring additional deposits. This prohibition seeks to ensure that interstate bank branches will not take deposits from a community without the bank also reasonably helping to meet the credit needs of that community.
The scandal came to light after the agencies issued the host state loan-to-deposit ratios that are used to evaluate compliance with the law. These ratios replace those from June 2021 and were released on June 28, 2022.
LaJuan Williams-Young, an FDIC spokesperson, confirmed the scandal, stating that the agencies had been using the ratios to evaluate compliance with the law. When asked about the implications of the scandal, Williams-Young declined to comment.
As the investigation continues, the Grimy Times will provide updates on this developing story. In the meantime, the public is urged to remain vigilant and report any suspicious activity to the authorities.
Section 109 Host State Loan-To-Deposit Ratios can be found on the FDIC website.
Contact: LaJuan Williams-Young, FDIC, (703) 470-0201.
Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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