Federal Reserve Board to vote on national bank’s asset growth restriction

Federal Issues Federal Reserve Congress Bank Compliance

On May 10, Federal Reserve Board (Board) Chairman Jerome H. Powell responded to Senator Elizabeth Warren’s request concerning a formal commitment by the Board to vote on whether a national bank’s remediation plans to improve its compliance and operational risk management program meet the terms set forth by the Board’s February 2 order to cease and desist (Order). (See previous InfoBytes coverage here.) According to Powell, the decision to lift the asset growth restriction placed on the bank as part of the Order will be determined by a vote of the Board of Governors. In addressing an additional request made by Sen. Warren that the third-party review of the bank’s remedial actions required by the Order be publicly released, Powell stated that when the third-party review is ready, “we will review that report to determine whether and to what extent the report can be publicly disclosed without impairing protected interests.” Powell noted that typically evaluations of that kind are not released to the public because they contain confidential supervisory information that would, if disclosed, “likely impair the effectiveness of the supervisory process,” among other things.