Haynes and Boone's Newsroom

John Podvin in American Banker: The Dodd-Frank Effect
10/25/2011

Barney Frank was running late. Bankers, lawyers, regulators and press milled around the Washington Marriott, waiting for him to deliver the keynote address to an American Banker regulatory symposium...

Welcome to the new FDIC. With Dodd-Frank on the books and the troubled-bank list growing more than 25 percent since 2009, the primary regulator for 62 percent of the nation's banks is branching out with deeper exams—and knocking on new doors.

Since Dodd-Frank assigned the agency resolution responsibilities for institutions of systematic significance, the FDIC has been sending examiners into new areas, such as large-bank capital markets operations, or into institutions where other primary bank regulators already have set up shop...

Dallas banking attorney John Podvin attributes the heightened FDIC exam activity partly to the agency's desire to draw its own conclusions about a bank, rather than defer to the primary regulator. "The FDIC thought it should have had autonomy, issuing its own exam reports rather than participate in exams [where the] OTS would issue reports," says Podvin, who advises clients on Dodd-Frank compliance issues for the law firm Haynes and Boone.

Excerpt from American Banker, Oct. 25, 2011. To view the full article, click here.