FDIC

 

Federal Deposit Insurance Corporation (FDIC)

FDIC Adopts New Guidance on Model Risk Management 

The FDIC is introducing New Guidance on Model Risk Management featuring information on technical conforming changes. The guidance addresses supervisory expectations for model risk management, including: model development, implementation, and use; model validation; and governance, policies, and controls.

The Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency operate using the same guidance. The FDIC is adopting this guidance to facilitate consistent model risk-management expectations across the banking agencies and industry.

OCC

Office of the Comptroller of the Currency (OCC)

The 2017 distressed or underserved nonmetropolitan middle-income geographies has been released

This month, the Office of the Comptroller of the Currency announced the availability of the 2017 distressed or underserved nonmetropolitan middle-income geographies list, where revitalization or stabilization activities and projects are eligible to receive Community Reinvestment Act (CRA) consideration under the community development definition.

The criteria for designating these areas are available on the Federal Financial Institutions Examination Council (FFIEC) website (http://www.ffiec.gov/cra). The designations are supposed to reflect local economic conditions such as unemployment, poverty, and population changes.

SEC

Securities and Exchange Commission (SEC)

Massive Canadian Based oil and gas company faces accounting Fraud Charge

In June, the Securities and Exchange Commission charged a Canadian-based oil and gas company and three of its former top finance executives for their roles in an extensive, multi-year accounting fraud.

According to the complaint Penn West Petroleum Ltd., which has since been renamed Obsidian Energy Ltd., fraudulently moved hundreds of millions of dollars in expenses from operating expense accounts to capital expenditure accounts. This alleged fraudulent movement caused Penn West to artificially reduce its operating costs by as much as 20 percent in certain periods. This falsely improved reported metrics for oil extraction efficiency and profitability.

FED

Department of Justice

Former Packaged Seafood Executive Pleads Guilty to Price Fixing

A former senior vice president of sales for a pre-packaged seafood company pleaded guilty for his role in a conspiracy to fix the price of packaged seafood sold in the United States.

According to court documents, Stephen Hodge and his co-conspirators agreed to fix the prices of packaged seafood from as early as 2011 through 2013. He pleaded guilty to a one-count criminal information filed on May 30, 2017 Hodge has agreed to pay a criminal fine and cooperate with the Antitrust Division’s ongoing investigation. It is expected that he will be sentenced at a later date.

  

NCUA

Acting Chairman of the NCUA Addresses Congress Regarding Regulatory Concerns

A former senior vice president of sales for a pre-packaged seafood company pleaded guilty for his role in a conspiracy to fix the price of packaged seafood sold in the United States.

According to court documents, Stephen Hodge and his co-conspirators agreed to fix the prices of packaged seafood from as early as 2011 through 2013. He pleaded guilty to a one-count criminal information filed on May 30, 2017 Hodge has agreed to pay a criminal fine and cooperate with the Antitrust Division’s ongoing investigation. It is expected that he will be sentenced at a later date.