Banking and Finance Law Daily Wrap Up, WORTH NOTING—Other regulatory, legislative, litigation, and industry developments, (May 8, 2026)

By WK Editorial Staff

A weekly roundup of other items of interest to the banking and finance law community.

BANKING OPERATIONS—The Office of the Comptroller of the Currency has released updated loan-to-deposit (LTD) ratios used for Riegle-Neal Interstate Banking and Branching Efficiency Act (IBBEA) compliance (OCC Bulletin 2026-19). The ratios form a two-part calculation used by regulators to ensure banks comply with the IBBEA’s general prohibition on using branches primarily for “deposit production.” Banks that fail the test of whether its branches were reasonably helping to meet credit needs in their communities. The latest ratios replace the ones issued May 12, 2025, and exclude banks designated under the Community Reinvestment Act as wholesale, limited purpose, or special purpose banks.

CONSUMER FINANCIAL PROTECTION BUREAU—The Consumer Financial Protection Bureau urged the Equal Employment Opportunity Commission (EEOC) to revise its annual EEO program reporting requirements, as part of its Fiscal Year 2025 Equal Employment Opportunity Status Report and Affirmative Action Plan. for Acting Director Russell Vought said the Bureau would issue the MD-715 report without certain portions he viewed as conflicting with recent executive orders (EO), in a message to EEOC Chair Andrea Lucas. He said the excluded portions specifically conflicted with EO 14151, Ending Radical and Wasteful Government DEI Programs and Preferencing; EO 14168, Defending Women from Gender Ideology Extremism and Restoring Biological Truth to the Federal Government; and EO 14281, Restoring Equality of Opportunity and Meritocracy. Lucas was urged to revise its MD-715 requirements—which mandates federal agencies to conduct annual self-assessments of their equal employment programs—to align with those executive orders.

CRIMES AND OFFENSES—After being indicted by a federal grand jury in the U.S. District Court for the Western District of Oklahoma in December 2025, former President and Chief Executive Officer of the First National Bank of Linsday, Danny Seibel, has now pled guilty to one count of bank fraud. Seibel had been charged with conspiring to commit bank fraud, bank fraud, making false entries in the books and records of a financial institution, obstructing the examination of a financial institution and failing to implement an anti-money laundering program. An audit report from the Office of Inspector General (OIG) of the Department of the Treasury released in March 2025 highlighted internal control failures that resulted in the insolvency of the First National Bank of Lindsay in Lindsay, Oklahoma.

DIRECTORS, OFFICERS AND EMPLOYERS—The Federal Financial Institutions Examination Council has announced appointments of two members of its State Liaison Committee. The committee re-elected Texas Banking Commissioner Charles Cooper as its chair for a one-year term beginning May 1. In a separate action, Tennessee's commissioner of financial institutions, Greg Gonzales, was re-selected to the State Liaison Committee for a term running through April 2028. The State Liaison Committee includes representatives from state banking and credit union regulators and works with federal agencies to promote consistency in oversight.

FAIR CREDIT REPORTING—A bill announced May 1 seeks to help protect credit ratings for federal workers facing paycheck disruptions from budgeting battles. The Federal Worker Credit Protection Act—co-sponsored by Sens. Angela Alsobrooks (D-Md.), Ruben Gallego (D-Ariz.), Tim Kaine (D-Va.), Mark Kelly (D-Ariz.), Chris Van Hollen (D-Md.), and Mark Warner (D-Va.)—would specifically prohibit reporting of adverse credit information of federal workers during a government shut down, including mandatory reporting to reporting agencies from the Office of Management and Budget as well as allowing federal workers to correct already reported information.

FAIR CREDIT REPORTING—The U.S. District Court for the Eastern District of Pennsylvania granted a motion to certify a class in a case alleging that national consumer reporting agency TransUnion is depriving consumers of their rights by failing to comply with the requirements of the Fair Credit Reporting Act (FCRA) to block the reporting of fraudulent information on credit reports when presented with an identity theft report. The court determined that plaintiff Lesley Kaplan showed by a preponderance of the evidence that the proposed class satisfies Rule 23(b)(3)’s predominance and superiority requirements. The plaintiff brought two causes of action—the first is under 15 U.S.C. § 1681c-2 on behalf of the proposed class, and the second is an individual claim brought on her own behalf under 15 U.S.C. § 1681i(a). Kaplan alleges that TransUnion failed to comply with 15 U.S.C. § 1681c-2, which requires consumer reporting agencies to block information resulting from identity theft within four business days of receiving specified documentation. Kaplan also seeks to represent a class of approximately 280,763 consumers who received similar denial letters over a defined period. (Kaplan v. TRANSUNION LLC, 2:24-cv-02438-WB (E.D. Pa. April 29, 2026)).

FAIR CREDIT REPORTING—Experian Information Solutions’ motion for judgment on the pleadings was granted on the ground that plaintiff Diana Harris failed to plausibly allege an inaccuracy in her consumer report, as required to state a claim under both § 1681e(b) and § 1681i of the Fair Credit Reporting Act (FCRA). The U.S. District Court for the District of Arizona determined that the plaintiff’s claims failed under either standard. Accordingly, because Harris did not make a prima facie showing of inaccuracy required under either § 1681e(b) or § 1681i, both counts failed as a matter of law. Experian’s Motion to Stay Discovery was denied as moot. (Harris v. Experian Information Solutions Incorporated, 2:25-cv-04761-SHD (D. Ariz May 1, 2026)).

FINANCIAL STABILITY––The Financial Stability Oversight Council met in an executive session on May 6, 2026, to review a range of financial stability issues, according to a Treasury Department readout. The executive session agenda included a presentation on the Council’s Market Resilience Working Group, which addressed recent developments in short-term funding markets and the implications of central clearing in the U.S. Treasury securities market. Council members also discussed cross-border interlinkages and considerations related to the Council’s economic security framework. At the May 6 meeting, FSOC members also approved the minutes its March 25, 2026, meeting. At that meeting, Treasury staff presented the Council’s quarterly financial stability monitor, highlighting developments across the banking sector, financial markets, household finances, and financial innovation. The update identified key risks and trends, including geopolitical developments, increased investment in artificial intelligence, and evolving conditions in private credit markets. Staff briefed the Council on tools being developed to monitor household financial resilience, with a focus on consumer credit conditions and broader household balance sheet health. The presentation included an assessment of the impact of fraud on households and its implications for economic security and financial stability. Finally, the Council reviewed proposed interpretive guidance related to nonbank financial company designations, providing an overview of revisions to its 2023 framework. The proposal outlined updates to the Council’s approach to evaluating and identifying nonbank financial companies that may pose risks to financial stability. The Council voted unanimously to publish the proposed guidance in the Federal Register for public comment.

Attorneys: Erika Angelos Heath (Francis Mailman Soumilas, P.C.) for Lesley Kaplan. Argia J. Dimarco (Buchanan Ingersoll & Rooney PC) for Transunion, LLC. McKenzie R. Czabaj (Consumer Justice Law Firm PLC) for Diana Harris. Jonathan Adam Dessaules (Dessaules Law Group) for Experian Information Solutions Inc.

Companies: Experian Information Solutions Inc.; First National Bank of Lindsay; Transunion, LLC

IndustryNews: BankHolding BankingOperations CFPB CrimesOffenses DirectorsOfficersEmployers DoddFrankAct FairCreditReporting FederalReserveSystem FinancialStability OklahomaNews OversightInvestigations PrudentialRegulation StateBankingLaws