ABA has urged the OCC to keep in mind the fundamentally different business models of uninsured trust and fiduciary banks as it develops its rulemaking for the resolution of national banks without deposit insurance. For example, ABA noted that trust banks hold assets in fiduciary and custodial accounts – not on the books of the bank – and ABA urged the rule text be clarified to emphasize this distinction.
Speaking as a representative of the majority of national trust banks and also of dozens of state-chartered, non-FDIC-insured trust banks that may consider switching to federal charters, ABA also urged the OCC to consider the different business models involved when setting assessments for uninsured banks.
Since the OCC is floating this proposal largely as part of an effort to develop the legal framework for a potential nonbank charter for financial technology, or fintech, companies, ABA also repeated its message that any fintech charter should hold recipients to the same standards of consumer protection that bank customers enjoy.
Read the comment letter.