A new office created in January to consider and resolve banks’ appeals of material supervisory determinations to the federal bank deposit insurer is officially open for business now that the agency has peopled the three-member panel that will handle reviews.
The Federal Deposit Insurance Corp. (FDIC) announced the newly appointed three members of its Office of Supervisory Appeals (OSA) panel Tuesday. The OSA, under revised guidelines for appeals of material supervisory determinations adopted in January, is an “independent, standalone office” within the agency that will consider and decide supervisory appeals. It replaces the long-standing Supervision Appeals Review Committee (SARC). The OSA will provide the final level of review for appeals, the agency’s guidelines show.
The FDIC, in Financial Institution Letter (FIL) 46-2026 also issued Tuesday, said financial institutions’ appeal rights “are now expanded to permit appeals in certain cases when an enforcement action is proposed or pending.” As for the OSA, it said the office:
- Is independent of the divisions that make supervisory determinations. An institution may appeal a material supervisory determination to the Office after the appropriate Division Director’s review of the material supervisory determination.
- Is staffed by reviewing officials who have direct experience with the supervisory process, and may include former government officials, former bankers, and other former industry professionals. Each panel will include at least one reviewing official with bank supervisory experience and at least one reviewing official with industry experience. Reviewing officials are subject to confidentiality and conflict of interest requirements.
- Will make independent supervisory determinations without deferring to the judgments of either party, subject to the reasonableness of and the support for the positions advanced.
The three OSA panel members are, as announced Tuesday:
- Tim Ayala, who has served as a banking executive and FDIC senior leader with experience covering bank supervision, governance, compliance, and regulatory strategy. Most recently, Ayala served as executive vice president and chief risk officer with Pinnacle Financial Partners, a $54 billion financial institution based in Nashville, Tenn. He has also served as senior vice president and regulatory relations officer for a fintech lender. At the FDIC, Ayala was a commissioned bank examiner in risk management, serving in senior leadership positions in Washington, DC and in four regions, including Assistant Regional Director and Examiner-in-Charge of a large financial institution.
- John Conneely, a former FDIC senior executive with 35 years of experience in bank supervision and regulation. Conneely became a commissioned bank examiner in New York City in 1989 and subsequently held a variety of senior leadership positions within the agency’s Division of Complex Institutions Supervision & Resolution, including serving as Division Director. He also served as FDIC’s Chicago Regional Director and Deputy Regional Director in the New York Region. Mr. Conneely was also a Banking Policy Advisor in the U.S. Department of the Treasury’s Office of International Banking and Securities Markets.
- Duke Sheow, who brings more than three decades of experience in financial institution supervision, enterprise risk management, and banking regulation across the public and private sectors. Most recently, he served as Senior Managing Director at PwC, and he previously held executive positions with several banks. Sheow also served as a senior commissioned examiner with the FDIC and the Federal Reserve Bank of San Francisco and was a key member in the development of the Federal Reserve’s Fintech Supervisory Program. His experience includes evaluating material supervisory determinations, participating in enforcement and civil money penalty matters, advising bank boards, and developing supervisory programs addressing emerging risks.
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