Proposed FDIC Guidelines with Impose New Responsibilities on Directors of FDIC-Insured Banks

Bruce Ortwine, General Counsel (retired), Americas; Adviser, Global Legal and Compliance (Retired), Sumitomo Mitsui Trust Bank, Limited and Sumitomo Mitsui Trust Holdings, Inc.

On October 11, 2023, the Federal Deposit Insurance Corporation (the “FDIC”) issued proposed mandatory Guidelines (the “Guidelines”) concerning the roles and responsibilities of directors of banks whose deposits are insured by the FDIC. As the FDIC insures the deposits of most domestic U.S. banks, the Guidelines, if enacted, will have major consequences and will affect the current responsibilities of directors of FDIC-insured banks. The Guidelines may take effect as early as January 2, 2024.