Financial Institution Letter
FIL-89-2010
December 22, 2010
SUPERVISORY INSIGHTS JOURNAL
Winter 2010 Issue Now Available
Summary: The Winter 2010 issue of Supervisory Insights features articles of critical interest to
examiners, bankers, and supervisors: a discussion of the role of trust preferred securities during the
financial crisis; an overview of best practices relating to agricultural lending and effective management of
agricultural credit concentrations; a summary of recent results from the FDIC’s Credit and Consumer
Products/Services Survey; and a discussion of the development of the senior life settlements (SLS)
market and the significant risks associated with SLS transactions.
The publication is available at
http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Compliance Officer
Related Topics:
Trust Preferred Securities
FDIC’s Credit and Consumer Products/Services
Survey
Agricultural Lending
Senior Life Settlements
Attachment:
None
Contact:
Kim E. Lowry, Managing Editor
(klowry@fdic.gov or 202-898-6635)
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may
be obtained through the FDIC's Public Information
Center, 3501 Fairfax Drive, E-1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-2200).
Highlights:
“Trust Preferred Securities and the Capital Strength of
Banking Organizations” describes the role of trust
preferred securities issued by bank holding companies
during the recent financial crisis and the resulting
legislative and regulatory reforms that signal a move
away from reliance on these hybrid securities.
“From the Examiner’s Desk: Managing Agricultural
Credit Concentrations” provides an overview of best
practices relating to agricultural lending and effective
management of agricultural credit concentrations to
help farm banks manage the inherent uncertainties in
the agricultural sector.
“Insights from the FDIC’s Credit and Consumer
Products/Services Survey” summarizes recent risk
management- and compliance-related survey results
that provide insights into how insured institutions are
changing operations in response to stressed economic
conditions, including tightening underwriting standards
and making greater use of third-party providers to offer
new and innovative products.
“Senior Life Settlements: A Cautionary Tale” discusses
the development of the senior life settlements market
and highlights significant risks associated with these
transactions to financial institutions, investors, and
consumers, including the potential for fraud.
Suggestions for article topics and requests for
permission to reprint articles should be e-mailed to
supervisoryjournal@fdic.gov. Requests for print copies
should be e-mailed to publicinfo@fdic.gov.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990
FIL-89-2010
December 22, 2010
SUPERVISORY INSIGHTS JOURNAL
Winter 2010 Issue Now Available
Summary: The Winter 2010 issue of Supervisory Insights features articles of critical interest to
examiners, bankers, and supervisors: a discussion of the role of trust preferred securities during the
financial crisis; an overview of best practices relating to agricultural lending and effective management of
agricultural credit concentrations; a summary of recent results from the FDIC’s Credit and Consumer
Products/Services Survey; and a discussion of the development of the senior life settlements (SLS)
market and the significant risks associated with SLS transactions.
The publication is available at
http://www.fdic.gov/regulations/examinations/supervisory/insights/index.html.
Distribution:
FDIC-Supervised Institutions
Suggested Routing:
Chief Executive Officer
Compliance Officer
Related Topics:
Trust Preferred Securities
FDIC’s Credit and Consumer Products/Services
Survey
Agricultural Lending
Senior Life Settlements
Attachment:
None
Contact:
Kim E. Lowry, Managing Editor
(klowry@fdic.gov or 202-898-6635)
Note:
FDIC financial institution letters (FILs) may be
accessed from the FDIC's Web site at
www.fdic.gov/news/news/financial/2010/index.html.
To receive FILs electronically, please visit
http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC financial institution letters may
be obtained through the FDIC's Public Information
Center, 3501 Fairfax Drive, E-1002, Arlington, VA
22226 (1-877-275-3342 or 703-562-2200).
Highlights:
“Trust Preferred Securities and the Capital Strength of
Banking Organizations” describes the role of trust
preferred securities issued by bank holding companies
during the recent financial crisis and the resulting
legislative and regulatory reforms that signal a move
away from reliance on these hybrid securities.
“From the Examiner’s Desk: Managing Agricultural
Credit Concentrations” provides an overview of best
practices relating to agricultural lending and effective
management of agricultural credit concentrations to
help farm banks manage the inherent uncertainties in
the agricultural sector.
“Insights from the FDIC’s Credit and Consumer
Products/Services Survey” summarizes recent risk
management- and compliance-related survey results
that provide insights into how insured institutions are
changing operations in response to stressed economic
conditions, including tightening underwriting standards
and making greater use of third-party providers to offer
new and innovative products.
“Senior Life Settlements: A Cautionary Tale” discusses
the development of the senior life settlements market
and highlights significant risks associated with these
transactions to financial institutions, investors, and
consumers, including the potential for fraud.
Suggestions for article topics and requests for
permission to reprint articles should be e-mailed to
supervisoryjournal@fdic.gov. Requests for print copies
should be e-mailed to publicinfo@fdic.gov.
Federal Deposit Insurance Corporation
550 17th Street NW, Washington, D.C. 20429-9990