Troubled Debt Restructuring (TDR) has recently become one of the hot topics of discussion for financial institutions. As repayment ability has become a problem for some debtors, lenders have been forced to restructure debt instruments to help borrowers and increase the probability of recognizing future collections. These restructuring agreements are often referred to as Troubled Debt Restructurings. TDR’s arise when the creditor [...]
A recent article by Safe Systems’ Director of Compliance Tom Hinkel offers a summary of statistics relating to FDIC lawsuits of officers and directors of failed financial institutions, as well as some words of advice for avoiding such litigation. Interestingly, one of the key statements in the article is to “listen to your auditors…many of [...]
The Dodd-Frank Wall Street Reform and Consumer Protection Act was introduced to the United States House of Representatives on December 2, 2009 and was signed by the President on July 21, 2010. The Dodd-Frank Act results in many changes for financial institutions. One of the major changes implemented by the Act affects executive compensation in [...]
Given the sharp increase in foreclosures, we have received a lot of questions from both our individual tax and financial institution clients relating to the tax effect of the foreclosure and subsequent sale of property, including requirements for filing 1099′s for the foreclosed borrower upon disposition of the property by the bank. The following article [...]
On November 9, 2010, the FDIC released Financial Institution Letter (FIL) 76-2010 finalizing proposed rules announced in FIL-59-2010 to replace the current Transaction Account Guarantee Program (TAGP) with section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The separate coverage for non-interest bearing transaction accounts will become effective on January [...]
In the past several months, there have been several changes to FDIC insurance limits which will affect required disclosures on bank websites, lobby signs, and other materials referencing FDIC insurance. In short: The $250,000 threshold for deposit insurance has been permanently extended (FIL-49-2010 / Dodd-Frank Act) Standard FDIC insurance will be extended to encompass all [...]
