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., USA

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.

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

SMTB is the largest trust bank in Asia and a major international bank with offices throughout Asia, Europe and the U.S. Its parent holding company, Sumitomo Mitsui Trust Holdings, Inc. is a financial conglomerate with a variety of financial institution subsidiaries, including in the banking, asset management, real estate brokerage and leasing sectors.