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Our Attorneys

Financial Institutions . . . In the News

  • CEO Scott Budde of The Maine Harvest Credit Project plans to file applications in January to become a state-chartered credit union in Maine.  (Mainebiz 10.31.2016)
  • Banks sending elaborate gifts to businesses and individuals are a new scam in Maine.  (WCSH6 11.2.2016)
  • Gardiner, Maine received an historic block of buildings on Main Street from Camden National Bank for redevelopment.  (Central Maine 11.3.2016)
  • New rule is under review by the FDIC for institutions with more than two million accounts which would require timely access of deposits after an institution fails.  (The Hill  11.14.2016)
  • The Federal Reserve Bank of Boston’s President and CEO Eric Rosengren highly expects to raise interest rates in December.  (Reuters 11.15.2016)
  • Personal incomes are rising across all Maine counties but at a slower rate than the rest of nation according to new federal estimates.  (Central Maine 11.17.2016)
  • Chinese bribery case forces JP Morgan to pay $264 million in fines to federal authorities.  (Central Maine 11.17.2016)
  • Central Bank is on track to raise interest rates in December according to congressional testimony of Federal Reserve Chair Janet Yellen.  (BDN 11.18.2016)

Flood Insurance Rule Redux: Feds Reissue Proposed Guidance to Lenders on Accepting Private Flood Insurance

On Monday, a Joint Notice of Proposed Rulemaking was issued by five federal banking agencies seeking comment on new proposed rules addressing how regulated lending institutions should evaluate private flood insurance policies for loans secured by property within special flood hazard areas. The draft rules are intended to implement the Biggert-Waters Flood Insurance Reform Act of 2012, and they replace an initial set of draft rules promulgated July 2015 and published in the Federal Register (78 FR 65107).

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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)

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.


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.