Letter to FDIC on the Proposal to Establish the Office of Supervisory Appeals

Mr. Robert E. Feldman
Executive Secretary
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, DC 20429

Dear Mr. Feldman:

The American Bankers Association (ABA) and Bank Policy Institute (BPI) appreciate the opportunity to comment on the FDIC’s proposed revisions to its Guidelines for Appeals of Material Supervisory Determinations (Proposed Guidelines).

The FDIC's Proposed Guidelines seek to replace the FDIC's existing Supervision Appeals Review Committee (SARC) with a new Office of Supervisory Appeals (Office). This new Office would decide supervisory appeals and be staffed with reviewing officials that are recruited externally to serve for a time-limited basis. As stated in the Proposed Guidelines, "[t]he FDIC anticipates that these combined changes could provide several advantages over the existing supervisory appeals process . . . ." The FDIC goes on to note that this new structure would help avoid "actual and perceived conflicts of interest" while also ensuring "that individuals deciding on appeals have relevant knowledge and expertise, and would facilitate a robust and responsive supervisory appeals process that will be consistent over time."

As a general matter, both ABA and BPI support the Proposed Guidelines, which reflect thoughtful improvements to a seldom-used formal appeals process that is in need of refinement. If finalized, these welcome changes would bolster the banking industry's confidence in the intra-agency appeals process mandated by Section 309(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (Riegle Act).

In response to the questions posed in the notice and request for comment on the Proposed Guidelines, we offer the following technical recommendations on how to further enhance the independence and effectiveness of the new Office.

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