Page 8 - August 22, 2024 Bulletin

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BNPL compared to just 16% of baby boomers. Those who do use data on the composition of insured and uninsured deposits nor
BNPL often cite the ability to spread out payments for items that the characteristics of those deposits,” FDIC Chairman Martin
wouldn’t otherwise fit their budget (47%) and the appeal of low or Gruenberg said. “As a result, the FDIC does not have historical
no interest rates (23%). data on banking industry trends for different types of insured and
uninsured deposits, including how depositors would behave in times
Read more: https://stories.td.com/us/en/article/td-bank-survey-
reveals-nearly-one-third-of-consumers-are-cutting-back-spending-as- of stress.”
inflation-pains-linger Read more: https://www.fdic.gov/news/press-releases/2024/fdic-
board-approves-request-information-deposits
Democrats Introduce Bill to
Require Reimbursements for Banking Agencies Seek Public
Electronic Transfer Fraud Feedback on Regulatory Burden

The Federal Reserve, FDIC and Office of the Comptroller of the
Democrats in the House and Senate have introduced legislation to
require financial institutions to reimburse customers for electronic Currency have published the second in a series of requests for
fund transfers that took place because the customer was scammed public comment on reducing the regulatory burden for financial
into sending the payment. institutions. The first request was published in February.
The Protecting Consumers from Payment Scams Act would amend The Economic Growth and Regulatory Paperwork Reduction Act
the Electronic Fund Transfer Act “to better protect consumers who requires the Federal Financial Institutions Examination Council and
are defrauded when they make payments,” according to a summary bank regulators to review their regulations every 10 years to identify
of the legislation by its sponsors. In addition to expanding legally any outdated or otherwise unnecessary regulatory requirements
required reimbursements to cover frauds and scams, the bill would for their supervised institutions. As part of a two-year review, the
mandate that such payments be evenly split between a customer’s agencies divided their regulations into 12 categories. For the second
financial institution and the institution that received the fraudulent round, the agencies are soliciting comments on regulations in three
transfer. It would also mandate that resolution duties apply if the categories: consumer protection; directors, officers and employees;
consumer’s account is frozen or closed, unless access has been denied and money laundering.
due to a court order, law enforcement or the consumer obtained the The public has 90 days from publication of the notice in the Federal
funds through unlawful or fraudulent means. Register to comment on the relevant regulations. The agencies also
The legislation is sponsored in the Senate [S. 4943] by Sens. Richard announced a Sept. 25 virtual meeting to take comments. Individuals
Blumenthal (D-Conn.) and Elizabeth Warren (D-Mass.) and in interested in providing oral comments must register by Aug. 9 and
the House [H.R. 9303] by House Financial Services Committee indicate the regulatory category they would like to discuss. Advanced
Ranking Member Maxine Waters (D-Calif.) registration is not required for observers.
Read more: https://www.federalreserve.gov/newsevents/
FDIC Seeks Public Input on pressreleases/files/bcreg20240725a1.pdf
Deposit Data CrowdStrike Releases Initial

The FDIC has issued a request for information on deposit data Findings About Cause of IT
not currently reported in call reports or other regulatory reports,
including uninsured deposits. Outage
According to the request, the FDIC is seeking information on the A widespread computer systems outage that hit many banks and
characteristics that affect the stability and franchise value of different other businesses was caused by a defect found in an update for
types of deposits. It also wants input on whether more detailed or CrowdStrike software and was not a cyberattack, the cybersecurity
frequent reporting of those characteristics, or on different types firm announced.
of deposits, could enhance offsite risk and liquidity monitoring; CrowdStrike released the initial findings of its internal review of the
inform analysis of the benefits and costs associated with additional incident, which took down systems worldwide. According to the
deposit insurance coverage for certain types of deposits; improve risk report, the flaw that caused the outages was contained in an update
sensitivity of deposit insurance pricing; and provide analysts and the for its Falcon platform, which caused Windows systems to crash.
public with accurate and transparent data.
Mac and Linux users were not affected. The company’s content
“While banks are required to provide certain data on deposit validation software failed to identify the problem before the update
liabilities on the call report, they do not report comprehensive was sent out because of a bug.

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