The banking industry continues to be buffeted by change. The current regulatory environment presents opportunities. However, new challenges are on the horizon in the form of new competitors and disruptive technologies. Banks are resilient and have weathered disruption in the past, and should be prepared to confront changing technology, business models, and regulatory environments head…

Congress is once again considering repealing Section 1071 of the Dodd-Frank Act. On February 4 Congressman Roger Williams introduced legislation to repeal Section 1071. A similar proposal is expected in the Senate.

Banks are familiar with Section 1071, which imposes the following requirement:

[I]n the case of any application to a financial institution for…

The New York Attorney General (“NYAG”) filed a lawsuit that may ultimately clarify whether banks are liable for fraudulent consumer wire transfers.

Generally, wire transfers are governed by Article 4A of the Uniform Commercial Code (“UCC”). Under the UCC, a bank that validates the identity of the sender of a wire transfer using a commercially…

Joint accounts provide flexibility to accountholders and ease administration for financial institutions by allowing husbands and wives, parents and children, and business partners to quickly access funds. Joint accounts allow parties to bypass obtaining powers of attorney and are easy for a financial institution to administer.

However, many banks have encountered problems when one joint…

Even before the next administration is sworn in, FDIC Vice Chairman Travis Hill is already signaling that changes are coming to the FDIC’s approach to regulating banks. The text of Vice Chair Hill’s speech is worth reading in its entirety, but there are several key takeaways:

Form over Substance

Many bankers have been frustrated during…

Over the last several months, banks all across Iowa have dealt with an increasing volume of fraudulent checks. The typical situation involves fraudsters intercepting a business customer’s check to a vendor. The fraudster then either (1) creates a counterfeit check, (2) alters the check’s payee, or (3) fraudulently endorses the check. The fraudster then deposits…

Banking used to be a straightforward business. Customers made their transactions at their local branch office, stored their valuables in a safe deposit box, and turned to their local bank manager for financial advice.

Today, change and disruption is the one constant in the banking industry. Most customers do their banking online, their valuables are…