The US Office of the Comptroller of the Currency is considering how to resolve a financial technology company that collapses after getting a national bank charter — something that the regulator expects to grant to one or more firms next year.
Stephen Lybarger, a deputy OCC comptroller, said the contingency planning is taking into account that the agency lacks the same tools that the US Federal Deposit Insurance Corporation has to unwind failed banks with insured deposits.
“What the agency wants to accomplish is early resolution,” he told a recent banking conference.* “One tool for early resolution would be a merger into a nonbank affiliate. That transaction is relatively simple when no deposit insurance is involved.”
*The Clearing House and Bank Policy Institute’s 2018 Annual Conference; New York; Nov. 27, 2018.
OCC weighs how to unwind fintech firms that will get national bank charter and fail
7 December 2018 2:16am