Annual Regulator Roundtable on Supervisory Priorities & Risks
On September 14, 2023, NYLIB hosted a regulatory panel discussion on supervisory priorities and risks moderated by Steve Bush, Chairman, President and CEO of Apple Bank. The supervisory panel featured prominent guest speakers from the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Bank of New York (FRBNY), the New York State Department of Financial Services (NYSDFS), and the Office of the Comptroller of the Currency (OCC).
FROM LEFT TO RIGHT: Steve Bush (Chairman, president & CEO, Apple Bank), Edward T. Lutz (President, NYLIB), Jessica Kaemingk (Deputy Regional Director, New York Regional Office, FDIC), Cassandra Huggins (Acting Principal Deputy Assistant Director, Office of Supervision Examinations, CFPB), Joanna McCarty (Assistant Counsel for Banking, NYSDFS), Michael Moriarty (Associate Deputy Comptroller for the Northeast Region, OCC), Won Chai (Assistant General Counsel, FRBNY)
The topics discussed included the lessons that banks should take away from the March 2023 bank failures; prudent management of risks arising from higher interest rates; commercial real estate market risks and discussion of recent interagency guidance on prudent loan accommodations for creditworthy borrowers; CFPB supervisory priorities (including with respect to junk fees, overdrafts, NSF fees, and artificial intelligence); regulatory expectations for relationships with fintechs; and cybersecurity best practices (including the critical importance of patch management). Resources highlighted by panelists are provided below.
Resources
Lessons from Bank Failures
CFPB Supervisory Priorities
Periodic Supervisory Highlights Publications
Managing Fintech Relationships
Interagency Guidance on Conducting Due Diligence on Financial Technology Companies: A Guide for Community Banks (August 2021)
Interagency Guidance on Third-Party Relationships: Risk Management (June 2023)
Federal Reserve SR 23-7 Letter re: Creation of Novel Activities Supervision Program (August 2023)
Our Moderator
Steve Bush, President and CEO of Apple Bank, served as the moderator of the panel discussion. Steve previously served as Executive Vice President and Chief Operating Officer at Apple Bank, with oversight for the bank's lending units, as well as financial, risk management, planning, and operating functions. He joined Apple Bank in 1992 from Chemical Bank, where he was a Vice President in the Asset and Liability Management and Finance Divisions.
Panelists
Won Chai is an Assistant General Counsel in the Supervision, Markets & Financial Services division of the Legal Function of the Federal Reserve Bank of New York. Won’s practice focuses on regulatory capital, liquidity, and foreign banking organizations. He also supports the market operations of the FRBNY on governance and trading matters. He joined the New York Fed in 2013.
Cassandra (“Casey”) Huggins is a Principal Deputy Assistant Director (Acting) for the Office of Supervision Examinations at the CFPB. Casey provides executive-level supervision to senior managers in the operational areas that support the Bureau’s supervisory function. She served as examiner-in-charge for the CFPB’s very first examination in 2011. Prior to joining the CFPB, Ms. Huggins served as a consumer compliance examiner at the Office of Thrift Supervision.
Jessica Kaemingk has served as a Deputy Regional Director in the FDIC’s New York Regional Office for the Division of Risk Management Supervision (RMS) since January 2020, overseeing financial institutions in the Northeast and participating in regional and nationwide regulatory matters. Prior to this role, Jessica served as an RMS Assistant Regional Director in the New York Regional Office. In 2022, she served as the Acting Regional Director for the New York Region.
Joanna McCarty is Associate Counsel in Banking at the New York State Department of Financial Services, working on a variety of financial services regulatory matters. Joanna practice supports all four groups of the Banking Division, including Mortgage, Foreign and Wholesale Banks, Community and Regional Banks, and Licensed Financial Services. She joined DFS in 2017 after working at two banking institutions.
Michael (“Mike”) Moriarty is an Associate Deputy Comptroller for the Northeast Region at the Office of the Comptroller of the Currency. In this role, Mike serves as an expert advisor to the Deputy Comptroller for Community Bank Supervision on all financial institution matters and provides executive direction for Midsize and Community Bank Supervision operations, including bank and thrift supervision, as well as personnel management. Prior to serving as Associate Deputy Comptroller, he served in various leadership roles at the OCC.
Mac Wilcox, President at Hanover Bank, in attendance at the September 2023 Regulator Roundtable
As NYLIB continues to plan events and meetings, we are open to suggestions on topics or issues that are of interest to banks in the tri-state area. Subscribe to our mailing list below to stay informed on news and upcoming events.
Memorable Moments
Please enjoy more memorable moments from our evening here. We encourage you to download your favorite moments and share them on LinkedIn. Don’t forget to tag the New York League of Independent Bankers (NYLIB)!