FBLG Banking Letter - November 2019 Edition
2019 Compensation Survey Reports
The Generic and Custom Reports are now available on our website. Thank you to all who participated in our survey, we achieved record-level engagement this year.
2019 FDIC Risk Review
FDIC publishes an annual Risk Review that analyzes risks that may affect FDIC insured institutions focusing on community banks. The credit risk areas explained in the article are agriculture, commercial real estate, energy, and housing, amongst others.
Opportunities Expiring for Opportunity Zones
In 2017, the Tax Cuts and Job Act (TCJA) created Qualified Opportunity Zones to stimulate economies in low-income communities through tax benefits to investors who invest eligible capital into these communities.
What Banks Should Consider for a Possible Discontinuation of LIBOR
The London Interbank Offering Rate (LIBOR) was first published in the 1980s to create uniformity in the growing market for interest rate swaps. In 2012, several banks and market regulators brought actions against many of the world’s largest banks for manipulating and conspiring to manipulate the rate. LIBOR may be discontinued in 2021 because the Financial Conduct Authority in the United Kingdom will no longer require banks to report the interbank transactions that are used to calculate LIBOR.
Proposed Regulations Issued for Post S-Corporation Termination Distributions
The Tax Cuts and Jobs Act added a provision that affected so-called Post Termination Transition Period distributions from former S-corporations. The original rule under section 1371(e) established the so-called Post Termination Transition Period. This is the period after an S-corporation termination in which the former S-corporation can make distributions out of their former S-corporation Accumulated Adjustment Account (AAA).