ICBA and other groups called on the FDIC to reconsider its decision to eliminate the Office of Supervisory Appeals and reinstate the agency’s Supervision Appeals Review Committee.
Joint Letter: In a joint letter following last month’s FDIC board of directors vote to disband the OSA less than six months after the independent appeals forum became operational, the groups said:
The SARC has long been an underutilized forum for supervisory appeals because it is not an independent or impartial decision-making body.
The FDIC did not give the public time to supply comments in advance, soliciting feedback only after instituting the change.
Background: Under revised Guidelines for Appeals of Material Supervisory Determinations issued last month, the FDIC replaced the OSA with the SARC as the final level of review in the agency’s supervisory appeals process—reversing guidelines released in December. The change was effective immediately with a 30-day public comment period.
ICBA Response: Responding to that decision last month, ICBA President and CEO Rebeca Romero Rainey said reconstituting board-level review using the SARC calls into question the agency’s commitment to a more independent supervisory appeals process.
Support for Independent Office: In a 2020 comment letter in support of the OSA replacing the SARC, ICBA said establishing a separate appeals office independent of the federal banking agencies is the best approach to establishing a more transparent and independent appeals process.