Manatt provides an overview of some of the comments received by the OCC on the proposed fintech charter; the New York Department of Financial Services was critical of the charter; the American Bankers Association is supportive of the charter "...as long as existing rules and oversight are applied consistent with those for any national bank"; the Financial Services Roundtable also spoke in favor of the charter, commending the OCC for its development of the proposal; also highlighted are responses from the Consumer Bankers Association and the Independent Community Bankers of America. Source
As we continue to hear more from the Office of the Comptroller of the Currency (OCC) about their new fintech charter, the question comes to mind: is the regulator taking the right approach?; fintech companies are beginning to disrupt many different facets of the financial system, coming up with a singular charter could be limiting and hurt innovation; the OCC has stated that this new charter from their point of view is just one of many options a firm can choose when looking at regulation; having regulators at every level think outside the box will help innovation overall and this also can help to discover an approach not yet seen. Source
Acting Comptroller of the Currency Keith Noreika confirmed that the fintech charter was open to commercial firms like Walmart & Google; this is a departure from former OCC head Thomas Curry who said the charter was designed for companies primarily involved in financial services; Mr. Noreika talked through this issue and others wile speaking at a fintech conference organized by the Federal Reserve Bank of Philadelphia. Source.
President Trump’s pick to head the FDIC, Jelena McWilliams, has spoken favorably about ILC charters in the past; ILC charters exist in a handful of states, most notably Utah who has seen a spike in inquires about applications; charters can allow fintech companies to bypass state by state licensing; ILC charters are an controversial way for fintech companies to act like banks and with the national charter proposed by the OCC in limbo more companies might look to take this route. Source.
Thomas Curry spent most of his speech at LendIt USA refuting arguments against the Office of the Comptroller of the Currency's (OCC) fintech charter and the agency's authority for establishing the charter however controversial factors affecting the charter's implementation were the primary topic for discussion on a LendIt USA panel; while panelists generally agreed that more regulatory clarity is needed for financial innovation overall, panelists were divided on the need for a fintech charter to regulate fintech firms; panelists reported that fintech chartering could potentially promote partnerships with banks through more standardized regulation however it seems the fintech charter is far from ready to match the broad ranging fintech variants for which it's trying to target. Source
In this week’s PeerIQ Industry Update they cover the increasing likelihood of a recession as forecasts show a 33 percent...
The lawsuit by the New York Department of Financial Services aimed at blocking the OCC Fintech Charter has been thrown out; Judge Naomi Reice Buchwald stated, "Since the OCC has not reached a final ‘fintech charter decision,’ defendants’ … motion is granted as plaintiff has suffered no injury in fact … and because plaintiff’s claims are not ripe."; it is possible that they could attempt to re-sue once the fintech charter is created. Source
The Office of the Comptroller of the Currency (OCC) released its fintech charter in March; many state regulators oppose the charter saying the OCC doesn't have the authority to offer the charter and that the charter is dangerous, unnecessary and violates state sovereignty; Brian Knight from the Mercatus Center at George Mason University discusses these arguments and how state legislation may evolve with the introduction and debate of the fintech charter. Source
According to Stephen Lybarger, deputy comptroller of licensing at the OCC, the new OCC fintech charter might be better suited for...
Pepper Hamilton provides details on their recent podcast and webinar in their featured blog post; the firm's January 5 podcast provided insight on what the Donald Trump presidency means for the financial services industry; on January 24 the firm provided a webinar on factors for considering the Office of the Comptroller of the Currency's new fintech charter. Sponsored Blog Post