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News Release 2016-108
September 8, 2016
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WASHINGTON—The Office of the Comptroller of the Currency (OCC) today proposed a rule to prohibit national banks and federal savings associations (FSAs) from dealing and investing in industrial or commercial metals.
The proposal covers metal, including alloy, in a physical form primarily suited to industrial or commercial uses. Examples include copper cathodes and aluminum T-bars. If finalized in its current form, this proposal would supersede a prior OCC determination permitting national banks to trade copper cathodes.
The proposal continues to recognize that national banks and FSAs may hold industrial or commercial metal under other authorities that are distinct from dealing and investing, and does not propose to change those other authorities. For example, national banks and FSAs may acquire industrial or commercial metal through foreclosures on loans and then sell the metal to mitigate loan losses.
The proposed rule carries out an OCC recommendation included in its report to Congress and the Financial Stability Oversight Council under section 620 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. Section 620 required the federal banking agencies to conduct a study of the activities and investments that banking entities may engage in under state and federal law and to consider the associated risks and how banking entities mitigate those risks.
Comments on the proposed rule are due 60 days from date of publication in the Federal Register.
William Grassano (202) 649-6870