You’re Invited – Advancing Diversity and Inclusion Across Financial Services

Source: US Federal Deposit Insurance Corporation FDIC

Who:     Jelena McWilliams, Chairman, Federal Deposit Insurance Corporation
              Robert E. James, II Chairman, National Bankers Association
              Nicole Elam, President and CEO, National Bankers Association
              Nikita Pearson, Deputy to the Chairman for External Affairs and Director of the Office

              of Minority and Women Inclusion, Federal Deposit Insurance Corporation

 

What:   Advancing Diversity and Inclusion Across Financial Services

             View Agenda

 

When:  11:00 a.m. – Noon ET

             Friday, January 21, 2022

 

Where: Register to Join

 

If you have any questions, please contact us at communications@fdic.gov.

 

The FDIC does not send unsolicited e-mail. If this publication has reached you in error, or if you no longer wish to receive this service, please unsubscribe.

FDIC and FinCEN Launch Digital Identity Tech Sprint

Source: US Federal Deposit Insurance Corporation FDIC

WASHINGTON – The Federal Deposit Insurance Corporation (FDIC) and the Financial Crimes Enforcement Network (FinCEN) today announced a Tech Sprint to develop solutions for financial institutions and regulators to help measure the effectiveness of digital identity proofing—the process used to collect, validate, and verify information about a person. Through the Tech Sprint, FDIC’s tech lab (FDITECH) and FinCEN seek to increase efficiency and account security; reduce fraud and other forms of identity-related crime, money laundering, and terrorist financing; and foster customer confidence in the digital banking environment. 

 

Digital identity proofing is a foundational element to enable digital financial services to function properly. This element is challenged by the proliferation of compromised personally identifiable information (PII), the increasing use of synthetic identities, and the presence of multiple, varied approaches for identity proofing. The FDIC and FinCEN ask Tech Sprint participants to answer the following question:

“What is a scalable, cost-efficient, risk-based solution to measure the effectiveness of digital identity proofing to ensure that individuals who remotely (i.e., not in person) present themselves for financial activities are who they claim to be?”

 

In the coming weeks, FDIC and FinCEN will open registration for this Tech Sprint. Interested individuals will have approximately two weeks to submit applications. The Tech Sprint will encompass a review of applications, grouping of individuals into teams that will work together over approximately three weeks to develop solutions to this challenge question, and invitations to participate in a virtual “Demo Day” of short team presentations to a panel of experts for evaluation.

 

At the conclusion of the Tech Sprint, the FDIC will publish all team presentations and recognize teams based on several criteria detailed in the forthcoming prize notice. Neither the FDIC nor FinCEN are offering monetary prizes associated with the Tech Sprint. Additional questions about the Tech Sprint can be sent to Innovation@FDIC.gov.  Read more about FDIC and FinCEN’s Tech Sprint, Measuring the Effectiveness of Digital Identity Proofing for Digital Financial Services.

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FDIC Names Two Agency Veterans to Senior Ranks

Source: US Federal Deposit Insurance Corporation FDIC

WASHINGTON – Last week, the Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the selection of two agency veterans to serve in senior leadership roles. FDIC Chairman Jelena McWilliams appointed Nikita Pearson to serve as Deputy to the Chairman for External Affairs and Dan Bendler to lead the FDIC’s Division of Administration. 

 

A commissioned bank examiner, Ms. Pearson was an executive in the bank supervision workforce before her appointment to Director of the FDIC’s Office of Minority and Women Inclusion (OMWI).  She will continue to serve as the OMWI Director and, in her expanded role, will manage the agency’s broader engagement mission, including oversight of the FDIC’s Office of Communications and Office of the Ombudsman. 

 

After serving more than 20 years in the FDIC’s Division of Administration, Mr. Bendler assumes the role of Director. Most recently, Mr. Bendler was Chief of Staff to the Chief Operating Officer where he helped to lead the FDIC’s operational response to the pandemic and strategic efforts in the design and construction of new FDIC facilities to support a hybrid workforce.  

 

Chairman McWilliams said, “Nikita is a tireless advocate for the FDIC’s mission and has exponentially advanced our diversity, equity, inclusion, and accessibility work and our efforts to expand financial inclusion.  Dan’s leadership of our Division of Administration will further efforts to improve the efficiency and effectiveness of the FDIC, to restore internal controls, and to develop innovative solutions to the agency’s operational challenges.”

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FDIC Chairman Jelena McWilliams Announces Resignation

Source: US Federal Deposit Insurance Corporation FDIC

FDIC Chairman Jelena McWilliams today sent the following letter to the President of the United States:

 

The Honorable Joseph R. Biden, Jr.
President of the United States
The White House
1600 Pennsylvania Avenue, N.W.
Washington, DC  20500

Dear Mr. President,

After serving as the 21st Chairman of the Federal Deposit Insurance Corporation (FDIC) since June 2018, I intend to resign as Chairman effective February 4, 2022. 

When I immigrated to this country 30 years ago, I did so with a firm belief in the American system of government.  During my tenure at the Federal Reserve Board of Governors, the United States Senate, and the FDIC, I have developed a deep appreciation for these venerable institutions and their traditions.  It has been a tremendous honor to serve this nation, and I did not take a single day for granted.  Throughout my public service, I have been constantly reminded how blessed we are to live in the United States of America.

Serving the American people alongside the dedicated career professionals of the FDIC has been the highlight of my professional life.  Throughout my tenure, the agency has focused on its fundamental mission to maintain and instill confidence in our banking system while at the same time promoting innovation, strengthening financial inclusion, improving transparency, and supporting community banks and minority depository institutions, including through the creation of the Mission Driven Bank Fund.  Today, banks continue to maintain robust capital and liquidity levels to support lending and protect against potential losses.

The unexpected shock of COVID-19 tested the resilience of our financial system beginning in March 2020, and the FDIC took swift actions to maintain stability and provide flexibility for banks and consumers.  The core of our financial system not only weathered the storm, but was a tangible source of strength for the American economy.  The committed staff of the FDIC deserve great credit for these results, and they have my profound gratitude.  I am humbled by their dedication to the FDIC’s mission and honored to have served with them. 

Sincerely,

Jelena McWilliams

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FDIC Makes Public November Enforcement Actions; One Administrative Hearing Scheduled for January 2022

Source: US Federal Deposit Insurance Corporation FDIC

CPSC Awards More than $1.3 Million in Pool Safely Grants to Five State and Local Governments to Combat Pool and Spa Drownings and Drain Entrapments

Source: US Consumer Product Safety Commission

Release Date: December 23, 2021

WASHINGTON, D.C. — U.S. Consumer Product Safety Commission (CPSC) Chair Alexander Hoehn-Saric and U.S. Rep. Debbie Wasserman Schultz (FL-23) announced today five awardees of a grant program aimed at preventing pool and spa drownings, as well as drain entrapments. The state and local governments were selected by CPSC to receive more than $1.3 million in Pool Safely Grant Program (PSGP) grant funds.  This funding will provide state and local governments with assistance for education, training, and enforcement of pool safety requirements that are intended to save lives and prevent serious injuries. 
FY 2022 Pool Safely Grant Program Awards

Jurisdictions

      State

Award Amount

Florida Department of Health

Florida

$363,749

Virginia Department Of
Health

Virginia

$51,850

County of Stanislaus

California

$320,000

County of Los Angeles

California

$400,000

County of Tulare

California

$173,095.92

“Drowning remains the number one cause of death for children ages one to four,” said CPSC Chair Alexander Hoehn-Saric. “These grant funds are an essential element in our work to protect children, by providing lifesaving safety information to communities, and helping these communities enforce pool safety requirements.” 
“I have long been a passionate advocate for pool and spa safety, and that will not stop.  We must do more to stop these preventable tragedies, and these grants are one of the key steps we can take to help save more children’s lives,” said Representative Debbie Wasserman Schultz. “My goal is to reduce child drownings across the country, and we can do it by teaching children to swim, ensuring pools have the right safety equipment, and educating parents on the critical importance of supervising children in and near the water.”
The Virginia Graeme Baker Pool and Spa Safety Act (VGB Act), which Rep. Wasserman Schultz authored and led, was passed by Congress and signed into law by President George W. Bush in December 2007. The VGB Act authorizes the PSGP, which provides state and local governments with assistance for education, training, and enforcement of pool safety requirements.
CPSC’s website www.PoolSafely.gov has more information on the Pool Safely Grant program and the VGB Act as well as free, downloadable educational materials available to the public.

Release Number
22-041

The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risks of injury or death associated with the use of thousands of types of consumer products. Deaths, injuries, and property damage from consumer product incidents cost the nation more than $1 trillion annually. CPSC’s work to ensure the safety of consumer products has contributed to a decline in the rate of deaths and injuries associated with consumer products over the past 40 years.
Federal law bars any person from selling products subject to a publicly-announced voluntary recall by a manufacturer or a mandatory recall ordered by the Commission.
For lifesaving information:

SaferProducts.gov

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CPSC Launches New Online Tool to Make it Easier for Businesses to Report Hazards and to Protect Consumers; Mandatory for Fast Track Program in January 2022

Source: US Consumer Product Safety Commission

WASHINGTON, D.C. –Firms are required to report to the U.S. Consumer Product Safety Commission (CPSC) potentially hazardous products that they manufacture, distribute, import or sell. To encourage more online reporting of these potential hazards, CPSC will require firms to use a new, upgraded online reporting system for Fast Track recalls. 
“Our goal is to protect consumers, by identifying and removing hazardous products from the marketplace more quickly, and by streamlining the recall process,” said CPSC Chair Alex Hoehn-Saric.  “We are extremely proud of the hard work that CPSC staff put into creating this new tool to facilitate online reporting.”
CPSC’s Fast Track program helps consumers by removing hazardous products from the marketplace quickly, and it rewards businesses that act swiftly to implement corrective action. 
The updated Section 15(b) reporting system for companies, now available at www.saferproducts.gov/business, has a user-friendly interface that includes hover-over features and guidance for firms to navigate the submission process.  Firms using the new site will also receive an emailed copy of all information submitted to CPSC through the system, along with emailed case updates, deadline reminders and contact information for the CPSC staff handling their report.
This system is also mobile-friendly, so users can now submit reports and provide attachments via their smart phones or tablets.  Businesses that participate in the Fast Track program will also be able to review and approve a system-generated draft recall press release before submitting their report, to help expedite the overall recall process.  
Effective January 31, 2022, businesses that want to participate in the Fast Track program will be required to submit their Section 15(b) reports exclusively online through the portal.  Reports received via email, fax, or mail for participation in a Fast Track recall will be rejected after this date, and the firms will be directed to resubmit their reports via the online system.
Although many of the new system features, and its mandatory use, apply specifically to Fast Track recalls, non-Fast Track filers are strongly encouraged to use the updated online system, as well. Users can easily file an initial report and can submit additional information and documents, if desired, using the system. 
Visit the Fast Track information page to see how the new system can benefit companies  considering a recall. 
The new online business portal for the Fast Track Program can be found at www.saferproducts.gov/business 

The U.S. Consumer Product Safety Commission (CPSC) is charged with protecting the public from unreasonable risks of injury or death associated with the use of thousands of types of consumer products. Deaths, injuries, and property damage from consumer product incidents cost the nation more than $1 trillion annually. CPSC’s work to ensure the safety of consumer products has contributed to a decline in the rate of deaths and injuries associated with consumer products over the past 40 years.
Federal law bars any person from selling products subject to a publicly-announced voluntary recall by a manufacturer or a mandatory recall ordered by the Commission.
For lifesaving information:

Federal Bank Regulatory Agencies Release 2020 Small Business, Small Farm, and Community Development Lending Data

Source: US Federal Deposit Insurance Corporation FDIC

Remarks by Chairman Jelena McWilliams at the Open Session of the Meeting of the Financial Stability Oversight Council

Source: US Federal Deposit Insurance Corporation FDIC

LIBOR

The FDIC remains actively focused on the LIBOR transition.  FDIC-supervised institutions continue to move in the right direction to address the LIBOR transition and adopt a replacement rate by December 31st.  Banks are also dealing with the challenges of legacy contracts and making adequate preparations for LIBOR’s discontinuation.  We have not noted significant outliers among FDIC-supervised institutions. 

 

We have found that many FDIC-supervised institutions, particularly smaller community banks, do not have material LIBOR exposures.  Institutions that do generally have made concerted efforts to transition away from LIBOR and are on track to issue new contracts in another reference rate by year-end.

 

For several years, the FDIC has conducted industry outreach on the LIBOR transition to encourage the identification of exposures, timely implementation of a replacement rate, and amendments to legacy contracts as appropriate.  In addition, the FDIC participated in the issuance of several interagency statements emphasizing supervisory expectations, including as recently as this past October. 

 

We will continue to monitor the LIBOR transition during safety and soundness examinations in 2022 to ensure that a replacement rate has been implemented for new contracts, and legacy contracts are being appropriately addressed. 

 

Thank you.

 

2021 Annual Report

I also would like to thank the staff for the significant effort that went into producing this year’s Financial Stability Oversight Council (FSOC) Annual Report.

 

Following significant economic turmoil in 2020, the banking system remains resilient.  In sharp contrast to the financial crisis of 2008, only three banks have failed since the start of the pandemic in March of 2020, and none due to the pandemic or the ensuing economic stress.  At the same time, banks across the country have accommodated an extraordinary growth in deposits.

 

In 2021, the banking sector remained a source of strength for the economy, reinforced by banks’ strong capital position.  Banks remain strongly capitalized in the third quarter of 2021, holding a higher amount and quality of capital than just prior to the 2008-2013 banking crisis.

 

These are signs to be cautiously optimistic, but the FDIC will nonetheless carefully continue to monitor economic trends, deposit trends, and other factors that affect the health of the banking sector.  In particular, the FDIC remains vigilant about the potential effects of inflation on banks and their customers, the potential economic impact of Omicron, and the evolution of certain markets post-pandemic, including commercial real estate.

 

Thank you again, Madame Secretary and FSOC staff, for your hard work to prepare this report and a productive collaboration in its preparation.

 

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Agencies Release Annual Asset-Size Thresholds Under Community Reinvestment Act Regulations

Source: US Federal Deposit Insurance Corporation FDIC