OCC Follows FDIC In Proposing More Practical Rules For Sharing Confidential Supervisory Information

Earlier this week, the Office of the Comptroller of the Currency (“OCC”) issued a notice of proposed rulemaking (“NPR”) to amend its rules regarding disclosure of non-public and limited expansion of the ability for a bank to disclose confidential supervisory information (“CSI”) without OCC approval provided applicable safeguards are observed.

This issuance from the OCC follows a similar, but not identical NPR issuance from the Federal Deposit Insurance Corporation (“FDIC”) in June. Both proposals reflect the same basic conclusion: although CSI should remain protected from public disclosure, the current rules often require banks to seek advance regulatory approval before making routine disclosures needed to operate the institution, engage advisers or evaluate a transaction. The proposals would replace that default with specified disclosure authorizations, backed by confidentiality agreements and other safeguards. The Federal Reserve Board updated its CSI and Availability of