Acting Comptroller Issues Statements at FDIC Board Meeting on Proposals to Improve Financial Stability and the Resolvability of Large Banks

The Office of the Comptroller of the Currency (OCC) has published various statements made by the Acting Comptroller of the OCC, Michael J. Hsu, on recently published drafts or „announcements of proposed rulemaking“ in which he expressed his strong support for the proposals. These rules aim to enhance financial stability and the ability to resolve large banks. Specifically, Mr. Hsu endorsed rules establishing a long-term debt requirement for banks with over $100 billion in assets and revisions to the insured depository institution resolution plan rule. He emphasized the importance of these rules in improving bank separability and providing regulators with effective options for dealing with failed bank sales. Mr. Hsu also backed a proposal to increase Board involvement in midsize and large failed bank sales, aligning with his previous concerns about financial stability risks associated with large banks.
In light of the recent failures of large banks this spring, it is evident that both banks and regulators must remain vigilant and proactive when it comes to being prepared to bank failures and subsequent resolutions, so the Comptroller.
Details on his statements concerning the individual proposed rulemakings may be found in enclosed documents.