FDIC Supervisory Insights Summer 2009
FDIC Supervisory Insights Summer 2009
FDIC Supervisory Insights Summer 2009
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Regulatory and <strong>Supervisory</strong><br />
Roundup<br />
continued from pg. 47<br />
Subject Summary<br />
Stored Value Cards and Other Nontraditional<br />
Access Mechanisms—New<br />
General Counsel’s Opinion No. 8 (FIL-<br />
129-2008, November 13, 2008)<br />
Interagency Statement on Meeting<br />
the Needs of Creditworthy Borrowers<br />
(PR-115-2008, November 12, 2008;<br />
PR-116-2008, November 12, 2008; FIL-<br />
128-2008, November 12, 2008)<br />
Guidance on Payment Processor<br />
Relationships (FIL-127-2008, November<br />
7, 2008)<br />
The <strong>FDIC</strong> Board of Directors approved the new General Counsel’s opinion on the insurability of<br />
funds underlying stored value cards and other nontraditional access mechanisms. The new opinion<br />
replaces the previous General Counsel’s Opinion No. 8, published in 1996. The new opinion<br />
addresses the issue of whether the funds underlying stored value cards and other nontraditional<br />
access mechanisms qualify as “deposits” as defined in the Federal Deposit Insurance Act. Under<br />
the new opinion, the funds will be “deposits” to the extent the funds have been placed at an<br />
insured depository institution. Consequently, the funds will be subject to assessments and will be<br />
insured (up to the insurance limit).<br />
See http://www.fdic.gov/news/news/financial/2008/fil08129.html.<br />
The federal government has recently put into place several federal programs to promote financial<br />
stability and mitigate the effects of current market conditions on insured depository institutions.<br />
This statement encourages financial institutions to support the lending needs of creditworthy<br />
borrowers, strengthen capital, engage in loss mitigation strategies and foreclosure prevention<br />
strategies with mortgage borrowers, and assess the incentive implications of compensation policies.<br />
See http://www.fdic.gov/news/news/financial/2008/fil08128.html.<br />
The <strong>FDIC</strong> issued guidance that describes potential risks associated with relationships with entities<br />
that process payments for telemarketers and other merchant clients. These types of relationships<br />
pose a higher risk and require additional due diligence and close monitoring. The guidance<br />
outlines risk management principles for this type of higher-risk activity.<br />
See http://www.fdic.gov/news/news/financial/2008/fil08127.html.<br />
48 <strong>Supervisory</strong> <strong>Insights</strong> <strong>Summer</strong> <strong>2009</strong>
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