Daily Brief · August 3, 2026
Fed, FDIC and OCC revisit capital, CRA and insider rules
Policy proposals dominated, alongside Lineage remediation, InterBank funding guidance, fintech charter strategy and Capital One’s Discover-linked commitment.
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Bank-specific controls and earnings
FDIC order puts Lineage Bank on fundamentals remediation
The June 24 consent order requires a three-year business plan and remediation of profitability, problem credits, underwriting, capital ratios and brokered-deposit reliance. Lineage agreed to the order without admitting or denying unsafe or unsound practices.
Source: The Bank Slate
InterBank guides to modest shrinkage with steady pretax income
The bank expects its balance sheet to shrink modestly in 2026, but pretax income to hold roughly steady as it sheds higher-cost funding and recaptures margin from older loan payoffs.
Source: American Banker
Bank rulemaking eases capital, governance and CRA burdens
Fed proposals would ease mutual capital access and insider-credit thresholds
The Regulation MM proposal would clarify that mutual capital instruments may qualify as regulatory capital and reduce burdens for mutual-to-stock conversions. A separate Regulation O proposal would lift the board-approval and public-disclosure trigger for insider loans from $500,000 to $2 million and index thresholds every five years.
Sources: ABA Banking Journal, American Banker
FDIC and OCC propose narrower CRA exams
The proposal would focus exams primarily on lending, exclude deposit services from retail assessments, raise the small-bank threshold to $1 billion and create an intermediate category up to $10 billion. American Banker reported the proposal would be subject to a 60-day comment period once published in the Federal Register.
Source: American Banker
Stablecoin policy turns on deposit risk and OCC charter strategy
Senate digital-asset bill remains a deposit-funding fight
BPI said no Senate motion to proceed has been filed on the Clarity Act, and senators raised concerns that the yield provision could drive deposit flight and reduce community lending. Banking associations said the revised text still leaves a loophole for stablecoin issuers to pay interest-like rewards.
Sources: Bank Policy Institute, ABA Banking Journal
Dakota seeks an OCC trust charter for stablecoin issuance and custody
Dakota applied for an OCC de novo national trust bank charter to issue, redeem and custody stablecoins under federal oversight, a charter strategy American Banker said could let national trust banks operate before final GENIUS Act rules are issued.
Source: American Banker
Transaction execution
Darragh Buckley relaunches Twin City Bank as Increase Bank
Buckley acquired the bank last year through its parent holding company, and the bank received approvals for a name change and business-plan change. Banking Dive reported Buckley bought a Washington state bank after starting Increase with the goal of marrying a bank and technology company.
Sources: American Banker, Banking Dive
Capital One reports on Discover-linked community investment commitment
The bank issued a progress report on the $265 billion commitment tied to its bid to buy Discover, but Banking Dive reported charitable organizations offered little support for the statement.
Source: Banking Dive