October 2024 Regulatory Update: Open Banking Rule, Bank Enforcement, and Supervisory Changes

In this episode we review the major regulatory and supervisory developments that shaped October 2024 across U.S. banking regulators, consumer protection authorities, and financial supervisors. The discussion highlights a month marked by enforcement activity, supervisory guidance updates, disaster response measures for financial institutions, and a major new rule establishing consumer data rights in financial services.We begin with updates from federal banking regulators. The episode covers supervisory actions and rulemaking activity from the FDIC, including updates to deposit insurance policy, extensions of regulatory comment periods on proposed deposit reporting and brokered deposit rules, and supervisory measures designed to support financial institutions affected by major hurricanes. We also discuss developments related to bank resolution planning, deposit insurance fund monitoring, and research on small business lending trends across the banking sector.The conversation then turns to enforcement and supervisory actions involving banks and bank personnel. Topics include major enforcement actions tied to anti money laundering compliance failures, civil penalties assessed against large financial institutions, and prohibition orders against individuals involved in misconduct within the banking system. We also review supervisory guidance addressing refinancing risk in commercial lending during a period of elevated interest rates and new recovery planning standards that apply to the largest banking organizations.Next we examine Federal Reserve developments affecting monetary policy and banking oversight. The episode discusses the release of recent policy meeting minutes and the implementation of updated stress test based capital requirements for large banks, which influence capital planning and supervisory expectations.A major focus of the episode is the new Personal Financial Data Rights rule issued under Section 1033 of the Dodd Frank Act. The rule establishes a framework requiring financial institutions to provide consumers with access to their financial account data when requested, forming the foundation of a broader open banking framework designed to increase competition and consumer choice in financial services.The episode also covers regulatory coordination across federal agencies, including updated thresholds affecting mortgage lending rules and continued oversight activity affecting credit unions and financial institutions more broadly.Together these developments show how October 2024 continued the pattern of active regulatory oversight across banking supervision, consumer data rights, financial stability policy, and enforcement actions across the U.S. financial system.