Warsh to Review Fed’s Approach to Monetary Policy 

Federal Reserve Chairman Kevin Warsh has announced he is forming five task forces to study various aspects of monetary policy, from the central bank’s use of data to its handling of the balance sheet. Warsh also suggested that he may not hold press conferences after every Federal Open Market Committee meeting, as has been customary.

OCC Clarifies Its Procedures 

The OCC has issued a bulletin to clarify its standards for approving or denying filings, stating that “it is important that the public understand how filings are decided under applicable laws, regulations and policy.”

The OCC also noted that it plans to make all denial decisions public “in order to provide the industry and all applicable stakeholders awareness of how the OCC has applied the decision criteria in that proposal.”

First Carolina Financial Services Rings NYSE Closing Bell to Celebrate Initial Public Offering

First Carolina Financial Services, Inc., the holding company for First Carolina Bank, announced today that it had the distinct opportunity to visit the New York Stock Exchange last week in celebration of its initial public offering.

The company’s Chairman, President, and CEO, Ron Day, led the occasion by ringing the bell for the Company’s first trade and then the closing bell on Thursday, joined by members of the executive leadership team and representatives from the Board of Directors.

“Listing on the NYSE is an exciting step for First Carolina, and we are thrilled to kick off our IPO with key members of our team present for the ringing of the closing bell,” Day said. “This is a meaningful and commemorative milestone for the Company, as it reflects the strength of our business and gives us the resources to continue growing in the markets we serve.”

First Carolina is now listed on the NYSE under the ticker symbol “FCBM.”

Pinnacle’s ‘Economic Empowerment Resource Centers’

NCBA SVP Nathan Batts recently visited with Pinnacle Financial Partners, who continue to innovate what it means to operate a branch. Their new location at 3807 North Duke Street in Durham brings together financial services and resources dedicated to traditionally underserved and disadvantaged areas. The location also serves as a meeting place for nonprofit partners focused on meeting the needs of the community.

In 2022, Pinnacle opened its first Pinnacle Economic Empowerment Resource (PEER) Center in Memphis, TN, and has been steadily expanding the concept to other communities across the bank’s footprint. At its Durham location, bank leadership worked with community partners, including the National Auto Body Council, to refurbish and donate a vehicle to a family in need of reliable transportation. 

Revised Credit Union ‘Update’

Senate Bill 595 also includes compromise legislation updating laws for NC state-chartered credit unions.

We have consistently opposed the earlier versions of this proposal (H 187, and H 410 from the 2023-2024 session), particularly provisions that would have:

• Expanded credit union membership eligibility globally
• Authorized lending to municipalities

NC Digital Asset and Stablecoin Act

House Bill 1029 passed the House on June 9 and is now in the Senate Rules Committee. While improvements were made in the House, further revisions are needed.

Key concerns include:

• Re-hypothecation restriction: The bill broadly prohibits re-lending digital assets.

As drafted, this could unintentionally limit banks’ ability to explore innovations like deposit and loan tokenization. A narrower approach – focused on assets such as stablecoins – would avoid disrupting the traditional fractional reserve model.

• Unclaimed property lookback: The bill imposes a 10-year retroactive review for unclaimed digital assets. Because assets are deemed unclaimed after five years, this effectively creates a 15-year lookback, posing significant operational challenges.

We are asking legislators to refine the bill and address these and other issues.

State Budget Delays

Legislative leaders had planned to begin budget votes in mid-June, but negotiations between the NC House and NC Senate are ongoing. The slowdown risks delaying a proposed adjournment before July 4.

If talks do not accelerate, lawmakers may:

• Break for the holiday, and
• Resume negotiations with possible votes starting the week of July 13

Another open question is what additional policy items may be included in the budget. As seen recently with Congress, and in NC with S 595, major fiscal bills – dealing with spending, taxation, and the budget – are increasingly used to advance policy provisions that once moved as standalone legislation.

Housing Bill Advances with Banking Provisions Included

On Monday, by a vote of 85-5, the Senate passed a housing bill – H.R. 6644 – that includes several provisions related to banking. Just a day later, the House approved the revised bill by a vote of 358-32, paving the way for it to go President Donald Trump to be signed into law.

FHFA Issues Annual Report

The Federal Housing Finance Agency has issued in its annual report to Congress. The report notes that the 11 Federal Home Loan Banks were all profitable in 2025, and their retained earnings balance was $32.7 billion. The report summarized the financial condition of the organizations under its jurisdiction, including the FHLBs, Fannie Mae and Freddie Mac. 

STOP Payments Fraud Act

Rep. Young Kim (R-CA), a member of the House Financial Services Committee, has introduced a bill to allow financial institutions to place extended holds on suspicious checks and wire transfers while fraud claims are investigated. The bill is entitled the Strengthening Transaction Oversight and Preventing (STOP) Payments Fraud Act – HR 9331.

As noted by Rep. Kim, “Check fraud can wipe out a family’s savings overnight while leaving financial institutions responsible for covering the losses. Our laws shouldn’t force banks to release funds before they have the opportunity to investigate suspicious transactions.” 

CFPB Rescinds Advisory Opinion 

The CFPB has rescinded an advisory opinion issued in the year 2020 on special-purpose credit programs designed and implemented by for-profit organizations to meet special social needs. The Bureau said the document contains statements that conflict with recent changes to fair lending enforcement and that the programs raise serious constitutional concerns.

GAO Suggests Changes at FDIC

In 2024, the GAO released a series of recommendations for how the FDIC and Federal Reserve could improve their bank supervision programs following the failures of Silicon Valley Bank and other regional financial institutions. In a follow-up report, the GAO said the FDIC has implemented one recommendation but not three others. The watchdog agency suggested the FDIC implement two recommendations.

First, the lack of periodic rotation of assignments for certain case managers “could compromise their independence and interfere with supervision outcomes.” The GAO recommended that the agency implement a rotation schedule.

Second, the FDIC and other banking agencies lack a mechanism to coordinate their efforts to address risks from blockchain technologies. They should develop a means to “collectively identify risks and develop and implement a regulatory response in a timely manner.”

Tillis Questions Warren on Price Controls During Affordability Debate

Sen. Elizabeth Warren, D-Mass., and Sen. Thom Tillis, R-N.C., engaged in a pointed exchange during a recent discussion on affordability and economic policy.

The debate focused on price controls, rate caps, inflation and the rising cost of living, with Tillis pressing Warren on whether government-imposed caps have historically succeeded in lowering costs.

FinCEN Releases New Customer Identification Requirements for Stablecoin Issuers 

FinCEN and the federal banking agencies have released a proposed joint rule to establish customer identification program requirements for payment stablecoin issuers, as mandated by the Genius Act.

Stablecoin issuers would be required to obtain a customer’s name, an individual’s date of birth, an entity’s date of formation, an address and an identification number before opening an account. Issuers would also be required to establish procedures for denying service or setting special terms when a customer’s identity cannot be immediately verified.

In a related development, the OCC has proposed regulations to implement Bank Secrecy Act and sanctions requirements for payment stablecoin issuers. The rulemaking was issued in coordination with FinCEN and OFAC. 

Upcoming IntraFi Webinars Cover Deposit Insurance, ICS and CDARS

Sharpen your understanding of deposit insurance and depositor solutions with IntraFi’s upcoming complimentary webinars.

The session “FDIC Deposit Insurance Coverage and Related Matters” is designed for CPAs, financial advisors and other business professionals looking to better understand the details of FDIC deposit insurance. The webinar also offers 1 CPE credit.

IntraFi will also host “Explaining ICS and CDARS,” a session focused on how these services can help banks grow large depositor relationships while giving customers greater peace of mind.

Need Credits? Earn CRCM, CPE, SHRM and More!

Looking to skill up? North Carolina Bankers Association is making it easier than ever to invest in your professional growth. Sign up for one of the upcoming webinars from our partnered providers:

ServisFirst Bank Charlotte Announces New Senior Vice President, Commercial Banking Executive

ServisFirst Bank, a subsidiary of ServisFirst Bancshares (SFBS), is

pleased to announce the addition of Mitch Sells as Senior Vice President, Commercial Banking Executive in Charlotte. In this role, he is responsible for expanding and managing commercial

banking relationships across the Charlotte MSA.

"Courage is the most important of the virtues, because without it, no other virtue can be practiced consistently."

- Maya Angelou