Capital returns advance as bank supervision rules shift

Old Glory Bank says its $8 million raise restored adequate capital. CEO Mike Ring said roughly 150 investors supplied the capital after the Federal Reserve did not approve the bank’s planned special-purpose acquisition company merger. The FDIC had issued a corrective action directive after Old Glory Bank’s Tier 1 leverage ratio fell to 2.69% as of June 30. The restored capital status is management’s assertion; the report does not establish that regulators lifted the directive.

TD receives regulatory approval for its C$10 billion buyback. The approved program covers 61 million shares, advancing the capital-return plan beyond its earlier approval condition. TD Bank Group’s September announcement targeted repurchases through July 2027 and followed completion of a C$7 billion buyback on September 25. Approval is the latest reported milestone, not completion of the new repurchases.

JPMorgan and Citigroup previews anticipate growth, but question its durability. A Seeking Alpha preview expects strong third-quarter earnings and revenue growth for the banks’ scheduled October 13 reports, but warns that capital-markets tailwinds may fade and net interest income could stagnate by 2027. A Benzinga preview reports an 86% surge in JPMorgan’s equities business last quarter, making trading and investment banking key areas to assess in the upcoming release. These forecasts are not reported third-quarter results.

Bank of America’s preview pits interest income against weaker investment banking. Ahead of the October 14 release, analysts anticipate diluted earnings per share of $1.11 versus $1.21 in the second quarter, with investment-banking fees projected to decline at least 10%. An earlier preview says analysts lowered third-quarter estimates despite anticipated net interest income growth. The figures are analyst expectations, not company guidance or reported results.

Citizens Financial heads toward October 16 with higher earnings expected. Analysts forecast third-quarter earnings per share of $1.39 and revenue of $2.34 billion. The October 9 preview describes a significant expected earnings increase following better-than-expected second-quarter results. These are market estimates rather than company guidance, with the scheduled release still ahead.

OCC and FDIC corrective-action limits take effect November 2. The final rule narrows when examiners can require correction of policy and process weaknesses, allowing lesser concerns to remain supervisory observations. OCC lookbacks tied to inadequate suspicious-activity reporting generally face a one-year cap. FDIC Chair Travis Hill defended the reforms this week as targeting material financial risks; the higher threshold leaves banks more responsible for identifying smaller emerging weaknesses.

Federal Reserve plans five supervisory regions and more centralized accountability. Michelle Bowman outlined five state-aligned regions, each with one accountable supervisory leader, and plans to raise thresholds before tougher standards apply. Revised community-bank criteria were not specified. American Banker reports that regional directors would report directly to the Board’s Deputy Director for Supervision, concentrating reporting authority in Washington; the effectiveness of that reporting change remains uncertain.

ICBA’s OCC lawsuit challenges the legal basis for expanded trust charters. The Independent Community Bankers of America alleges that the OCC exceeded its statutory authority and argues that crypto trust banks could attract deposits without comparable local-lending obligations. Its lawsuit identifies 21 approved or conditionally approved national trust charters during the second Trump administration, including 13 for crypto companies. American Banker says litigation could take years, leaving affected charters exposed to unresolved legal risk.

FDIC’s proposed merger framework would accelerate qualifying acquisitions. Some acquisitions could be processed in as few as five days under the proposal, which is not an already-effective rule. This week’s account of Chair Travis Hill’s remarks says proposed fast-track reviews would include credit unions and fintechs in competitive-market analysis. The proposed framework would therefore alter both potential execution timing and the competitors considered when assessing a transaction.