Upping Fed, FDIC's Insider Loan Cap May Ease Bank Burdens

The Federal Reserve Board and the Federal Deposit Insurance Corp. have issued substantially identical notices of proposed rulemaking to modernize the regulations governing extensions of credit by banks to their executive officers, directors, principal shareholders and their related interests. Because the agencies supervise different categories of insured depository institutions, each is proposing amendments to its own regulations, although the proposals are virtually identical in substance.

Writing for Law360, Ballard Spahr Partners Beau Hurtig and Scott Coleman, both members of the Banking and Financial Services Team, examine the impact of these regulatory changes.

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