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The Examiner

"And should we win the day, the Fourth of July will no longer be known as an American holiday, but as the day the world declared in one voice: 'We will not go quietly into the night!' We will not vanish without a fight! We're going to live on! We're going to survive! Today we celebrate our Independence Day!"

- President Thomas Whitmore
Independence Day (1996)

CSBS wishes you a joyful Independence Day. The CSBS Examiner will return Friday, July 13.

States Enter into Consent Order with Equifax

This week, state financial regulators entered into a consent order with Equifax, Inc. The order addresses serious deficiencies in the company’s cybersecurity program that resulted in the breach of personal data of almost 150 million consumers last year. 

The consent order can be read here. Announcements from individual states: California, New York, North Carolina, Texas.

Key facts:

  • Financial regulators from eight states led the action. The states represented are: Alabama, California, Georgia, Maine, Massachusetts, New York, North Carolina and Texas. 

  • The consent order arose from a joint examination these regulators performed of the company.

  • In the consent order, Equifax agreed to dramatically improve how it protects personally identifiable information. The company will undertake a restructuring of its risk management processes, strengthening of internal controls and processes, and enhanced oversight by the Board of Directors on the information security program.

  • The corrective actions will apply to Equifax’s operations nationwide.

  • Compliance with the consent order will be subject to regulator approval. Follow-up reports are required from the company.

  • The consent order preserves the right of individual states to bring additional actions.

Fed Proposal to Reduce Capital Minimum Requirements Could Disrupt Financial Stability

CSBS opposes the proposal issued by the Federal Reserve Board and Office of the Comptroller of the Currency to reduce the “enhanced supplementary leverage ratio” (eSLR) requirement for large U.S. banks. Such a move could threaten the nation’s financial stability, reduce the resiliency of the U.S. banking system, and, indirectly, create risks for community banks, CSBS said in a comment letter dated Monday, June 25. 

The proposed rule would recalibrate the enhanced supplementary leverage ratio standards for the most systemically important banking organizations in the country. In doing so, it would reduce the capital requirement of these banks by $120 billion. To put this in context, the Federal Deposit Insurance Fund had a balance of only $93 billion as of the end of 2017. 

In the letter, CSBS President and CEO John R. Ryan asked for agreement across all of the federal banking agencies before any proposed revisions to the eSLR are issued or adopted, as it would “help ensure that they do not erode the benefits to financial stability from post-crisis reforms and create undue risks for the Deposit Insurance Fund”.

Although state regulators oppose the proposed reduction of the eSLR requirement for the largest banking organizations, they support recalibrating the supplementary leverage ratio for banks with predominantly custodial business models as required by the recently enacted Economic Growth, Regulatory Relief and Consumer Protection Act.

Cleveland Fed President Mester to Speak at 2018 Community Banking Research Conference

Federal Reserve Bank of Cleveland President Loretta J. Mester will deliver the opening keynote address at the sixth annual Community Banking in the 21st Century research and policy conference that will be held Oct. 3 through Oct. 4 at the Federal Reserve Bank of St. Louis. 

Federal Reserve Vice Chairman for Supervision Randal K. Quarles will give the second day’s keynote. The conference, hosted by CSBS and the Federal Reserve System, brings together community bankers, academics, policymakers and bank supervisors from across the country to discuss the latest academic research on community banking, as well as important policy issues facing the sector.  

Other guest speakers will include Federal Reserve Bank of St. Louis President James Bullard, CSBS Chair and Commissioner of the Mississippi Department of Banking and Consumer Finance Charlotte Corley and CSBS President and CEO John Ryan. 

For more information, see the conference website at