Alert November 22, 2011

Banking Agencies Issue Statement to Clarify Supervisory and Enforcement Responsibilities For Federal Consumer Financial Laws

The OCC, FRB, FDIC, NCUA and CFPB issued a joint statement that banks, thrifts and credit unions with more than $10 billion in total assets based on June 30, 2011, call report data will be subject to direct CFPB supervision, examination and enforcement with respect to federal consumer financial protection laws.  After the initial determination, financial institutions generally will not be reclassified unless four consecutive quarterly call reports indicate that the institution has over $10 billion in total assets.  Under the Dodd-Frank Act, the CFPB has the exclusive authority to examine for compliance with federal consumer financial laws and primary authority to enforce those laws for institutions with more than $10 billion in total assets.  Institutions with $10 billion or less in total assets will be supervised by their primary federal regulator with respect to federal consumer financial protection laws.