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Friday
Oct282016

Financial Institutions . . . In the News

  • U.S. Senators ask the Justice Department to investigate Wells Fargo executives on criminal charges.  (Bloomberg 10.6.2016)
  • The first 6 months of 2016 shows Maine credit unions exceeding $7 billion in combined assets.  (Portland Press Herald 10.12.2016)
  • The Federal Reserve is seeing signs that interest rates should be increased.  (Central Maine 10.12.2012)
  • Due to the acquisition of Lake Sunapee Bank by Bar Harbor Bancshares, an unspecified number of Lake Sunapee employees will lose their jobs.  (Valley News 10.15.2016)
  • According to the FDIC, the “unbanked” American population declined from 7.7 percent in 2013 to 7 percent in 2015.  (Central Maine 10.20.2016)
  • A deal is in the works for TD Ameritrade Holding Corp, and its largest stakeholder, TD Bank to buy Scottrade Financial Services, an online brokerage service, for $4 billion. (Bloomberg 10.23.2016)
  • The U.S. is slow to rollout EMV (Europay, MasterCard and Visa) chip cards creating a higher risk to consumers.  (Mainebiz 10.24.2016)
  • Bar Harbor Bank shareholders approve the acquisition of Lake Sunapee Bank Group which completes another step in acquisition process.  (Mainebiz 10.26.2016)
Friday
Oct212016

Federal Bank Regulators Seek Comments on "Enhanced" Cybersecurity Rules

Just one day after the Federal Financial Institutions Examination Council issued FAQs to help financial institutions utilize FFIEC’s Cybersecurity Assessment Tool, three federal banking regulators issued an Advance Notice of Proposed Rulemaking regarding “Enhanced Cyber Risk Management Standards.”

The rulemaking notice was issued on October 19, 201 by the Federal Reserve Board, the FDIC, and the OCC.  A copy of the notice can be found here

As proposed, the enhanced cybersecurity rules would not apply to community banks, but would apply to any of the following institutions as well as third parties who provide services to these institutions:  (1) depository institution and depository institution holding companies with assets of $50 billion or more; (2) US operations of foreign banking organizations with US assets of $50 billion or more; and (3) financial market infrastructure companies and nonbank financial companies supervised by the Federal Reserve Board.  These institutions were identified to the extent they provide “key functionality to the financial sector.”

The enhanced rules are being considered based on the reality that technology dependence is growing and the US financial sector is becoming more interdependent. As such, a cybersecurity induced failure of one major institution could impact the safety and soundness of other institutions.

The enhanced rules would fall within five different categories: (1) cyber risk governance; (2) cyber risk management; (3) internal dependency management; (4) external dependency management; and (5) incident response, cyber resilience, and situational awareness.  The proposed rulemaking includes 36 questions across the foregoing categories for which comments are being sought.

Comments are due January 17, 2017.

Friday
Oct212016

Know Your Risks: FFIEC issues FAQs on its Cybersecurity Assessment Tool

On October 18, 2016, the Federal Financial Institutions Examination Council published a set of Frequently Asked Questions to help financial institutions utilize the Council’s Cybersecurity Assessment Tool.  The FAQs were announced as part of FIL-68-2016.

The Cybersecurity Assessment Tool is a voluntary process designed to help the management of financial institutions measure their cybersecurity risks and their ability to respond to a threat.  The Tool was issued in June of 2015.

The FAQs address questions such as:

  • Why did the FFIEC release the Assessment?  A. To help institutions develop a “measurable” and “repeatable” mechanism to address the growing cybersecurity threats;
  • How does the Assessment align with the NIST Cybersecurity Framework?  A. The Assessment was developed using this framework along with the FFIEC IT Examination Handbook and “industry accepted cybersecurity practices.”
  • Will the FFIEC release an automated version of the Assessment.  A. Not at this time.
  • Can the Assessment be used as part of my institutions’ oversight of third parties?  A. Yes.
  • Does the FFIEC plan to update the assessment?  A.  Yes, as threats and risks evolve.

The FAQ’s are available here, and the Assessment Tool is available here.

Wednesday
Oct122016

Sabina v. JP Morgan Chase: Maine Mortgage Holders Must Send Original Discharge to Mortgagor

In Sabina v. JPMorgan Chase Bank, N.A., the Maine Law Court reaffirmed that mortgage holders in Maine must timely mail a discharge within 60 days after the conditions of the mortgage have been satisfied. 2016 ME 141. The Court further found that a photocopy of the discharge was not sufficient.

Click to read more ...

Wednesday
Oct122016

US Bank v. Decision One: Proving Assignment Of A Mortgage Just Got Harder

A recent Maine Superior Court decision in US Bank v. Decision One Mortgage highlights the challenge of a foreclosing party to prove that it owned -- or had sufficient rights in -- both the note and the mortgage.  The importance of establishing ownership in order to foreclose on a mortgage was established by Bank of America, N.A. v. Greenleaf, 2014 ME 89, a seminal decision of Maine’s highest court in 2014.

Click to read more ...