Highlights:
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The Agencies and CSBS are issuing this guidance to clarify supervisory expectations for regulatory conversion requests subject to Section 612 of the Dodd-Frank Act.
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Section 612 prohibits charter conversions by certain financial institutions subject to a cease and desist order (or other formal enforcement order) or a memorandum of understanding relating to a significant supervisory matter.
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Institutions may request an exception to the conversion prohibition as described in Section 612(d).
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The Agencies expect that exceptions will be rare and generally would occur only when the provisions of an enforcement action have been substantially addressed.
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The July 2009 FFIEC Statement on Regulatory Conversions remains in effect.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
Suggested Routing:
Chief Executive Officer
Attachment:
Interagency Statement on Section 612 of the Dodd-Frank Act, Restrictions on Conversions of Troubled Banks
Contact:
William R. Baxter, Sr. Examination Specialist, at wbaxter@fdic.gov or (202) 898-8514
Mark Flanigan, Counsel, at mflanigan@fdic.gov or (202) 898-7426
Note:
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at
http://www.fdic.gov/news/news/financial/2012/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/index.html.
Paper copies may be obtained through the FDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226 (1-877-275-3342 or 703-562-2200).
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