Banking and Finance Law Daily Wrap Up, WORTH NOTING—Other regulatory, legislative, litigation, and industry developments, (Aug 22, 2025)

By WK Editorial Staff

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

ENFORCEMENT ACTIONS—The Office of the Comptroller of the Currency has announced its latest round of enforcement actions involving national banks, federal savings associations, and individuals associated with these institutions. Among these, the OCC reached a Formal Agreement with First National Bank & Trust Company in Clinton, Ill., to address unsafe or unsound practices concerning capital, strategic planning, liquidity, and contingency funding planning. The OCC has also issued multiple Orders of Prohibition against institution-affiliated parties (IAPs) for misconduct. These Orders of Prohibition generally bar IAPs from participating in the affairs of any financial institution. Maricela Galindo Celestino, a former bank teller at PNC Bank was prohibited due to embezzling approximately $106,000. Kyla A. Hartley former part-time Associate Banker at JPMorgan Chase Bank faced prohibition for processing fraudulent transactions that led to a $196,000 loss. Additional Orders of Prohibition were issued against Karen Lopez, Sixto Christopher Porras, Amalia Rivera, Kristin Sanguinetti, Harold Serenot, and Nikki L. Ward. Lopez, formerly with First National Bank Texas made unauthorized cash withdrawals exceeding $18,000 from customer accounts. Porras, a former associate banker at JPMorgan Chase Bank conducted unauthorized withdrawals totaling approximately $440,000. Rivera, formerly a teller and teller manager at TD Bank was involved in fraudulent withdrawals causing a $120,000 loss to the bank. Sanguinetti, a former teller at Santander Bank misappropriated approximately $51,000. Serenot, a former customer service representative at TD Bank fraudulently obtained over $41,000 in Paycheck Protection Program funds. Ward, formerly an assistant retail manager at First Financial Bank misappropriated approximately $47,000 from the bank's vault. Finally, the OCC terminated a 2022 Cease and Desist Order against Anchorage Digital Bank, N.A., after the bank addressed compliance shortcomings related to the Bank Secrecy Act and anti-money laundering program elements.

FEDERAL RESERVE SYSTEM—Senator Elizabeth Warren (D-Mass.) warned in an editorial for the Wall Street Journal that threats by the President to fire Federal Reserve Board leaders would endanger the central bank’s independence, urging instead that Congress pursue reforms. Warren further argued that the Fed has too often sided with Wall Street and resisted oversight, rejecting proposals to make the Fed’s inspector general independent, tighten ethics rules, and increase transparency at regional reserve banks. “The Fed is one of the most powerful institutions in our economy—and one of the least accountable,” Warren wrote. “That won’t change no matter who President Trump crowns as the new chairman. The only way forward is to pursue true reform.”

FINANCIAL STABILITY—The Office of the Comptroller of the Currency, Federal Reserve Board, and Federal Deposit Insurance Corporation jointly request comment on the extension of an approved agency collection, Market Risk Regulatory Report for Institutions Subject to the Market Risk Capital Rule (FFIEC 102). On May 2, 2025, the agencies requested public comment for 60 days on a proposal to extend the collection for three years, without revision. The comment period for the May notice expired on July 1, 2025. No comments were received, and the agencies will proceed with the extension, without revision, of FFIEC 102. The agencies are giving notice that they are sending the collections to the Office of Management and Budget for review. Comments on the notice are due by Sept. 22, 2025.

FINANCIAL STABILITY—The Federal Deposit Insurance Corporation has requested comment on the renewal of its data collection for various items including its Market Risk Capital Requirements, according to a notice scheduled for publication to the Federal Register on August 25. The notice of proposed renewal for these information collections was previously published in the Federal Register on June 23, 2025, allowing for a 60-day comment period. Comments are requested by Sept. 24, 2025, on aspects of the renewal, such as the applicability of the survey to purported goals and the accuracy of its estimated annual burden of 428 hours among 16 respondents.

FINANCIAL TECHNOLOGY—In the wake of the passage of the “Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act of 2025, U.S. Senate Banking Committee Chairman Tim Scott (R-S.C.) said he plans to advance digital asset market structure legislation through the committee in September. Senator Scott made his remarks on August 19 during a panel discussion at the Wyoming Blockchain Symposium. Framing the legislative effort as central to President Donald Trump’s pledge to make the U.S. “the crypto capital of the world,” Scott cited close coordination with the Trump administration and emphasized the need for permanent legislation over executive actions. “This is the most important time in American history for the evolution of this innovative opportunity,” Scott said, highlighting hearings, markups, and bill passage. He emphasized that clear rules and competition would attract capital and expand opportunity in the U.S. financial system.

GOVERNMENT SPONSORED ENTERPRISES—The Federal Housing Finance Agency has released stress testing results for Fannie Mae and Freddie Mac (the Enterprises) on August 15, showing potential performance under a hypothetical economic scenario. In the latest testing round, the housing giants were given a scenario that included a nearly 8 percent decline in U.S. GDP from Q4 of 2024 through Q1 of 2025, as well as unemployment jumps, a drop in annualized consumer price index rates, and other impacts. The two were also tested under a “severely adverse” scenario that included home and commercial real estate price drops, as well as a global market shock that results in default of the Enterprises’ largest counterparty. Results showed credit losses amounting to 0.47 percent of the average portfolio balance, or $36.1 billion, throughout the 2025-2027 cycle, lower than the results of last year’s testing which showed credit losses totaling 0.56 percent of average portfolio balances, or $41.9 billion, across the hypothetical 2024-2026 cycle. Both mortgage lenders showed comprehensive income without use of Deferred Tax Assets (DTA) allowance, while Fannie Mae showed comprehensive income with the inclusion of the valuation allowance. The FHFA noted that the projections were not “expected outcomes,” but a response to the specific “what if” scenario, with actual outcomes potentially varying from the test results.

MERGERS AND ACQUISITIONS—President Donald Trump issued an Executive Order on Aug. 13, 2025, revoking a Biden-era Executive Order 14036, which emphasized a “whole-of-government” approach to competition policy. The 2021 EO was aimed at enhancing competition with several directives covering banking mergers and consumer financial protections. It called for promoting competition in the American economy by strengthening enforcement of antitrust laws across major sectors of the economy. The 2025 revocation order clarifies that it does not alter the legal authority of executive departments or agencies, nor the functions of the Office of Management and Budget related to budgetary, administrative, or legislative matters. It further states that implementation must comply with applicable laws and funding availability, creates no enforceable rights or benefits for any party, and assigns the Department of Justice responsibility for the costs of publishing the order.

Companies: Anchorage Digital Bank, N.A.; Fannie Mae; First Financial Bank, N.A.; First National Bank & Trust Company; First National Bank Texas; Freddie Mac; JPMorgan Chase Bank; PNC Bank; Santander Bank N.A.; TD Bank

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