Effective date of OCC ban on bank investments in industrial metals
The Office of the Comptroller of the Currency has announced its approval of a final rule to prohibit national banks and federal savings associations (FSAs) from dealing or investing in industrial or commercial metals. The final rule covers metal, including alloy, in a physical form primarily suited to industrial or commercial uses. Examples include copper cathodes and aluminum T-bars. The final rule supersedes a prior OCC determination permitting national banks to trade copper. The rule continues to recognize that covered institutions may hold industrial or commercial metal under authorities that are distinct from dealing and investing and does not change those authorities. For example, the institutions may acquire industrial or commercial metal through foreclosures on loans and then sell the metal to mitigate loan losses. The rule will be effective April 1, 2017. Institutions will have one year from that date (with the possibility of up to four one-year extensions) to divest existing holdings acquired through dealing or investing activities.