Legal Seminar, Chicago, IL

• Many had hoped that with Joseph Otting as the new Comptroller and Steven Mnuchin as the Secretary of the Treasury the OCC’s acceptance of ITCs would expand, but that doesn’t seem to have occurred. • OCC capital levels for a new NTB charter, if available, are unclear. $10MM? • Lack of FDIC Insurance makes OCC the liquidator of a failed trust company, a roll they have been uncomfortable fulfilling – same issue exists for state chartered entities.

C. State Charter • State charter still is the charter of choice for most ITCs. • Frequently ITCs need to be able to do business in multiple jurisdictions. • Greatest request from ATO to state legislators/banking regulators is for the ability to do business in multiple states and standardized application and reciprocity rules. • There are 50 + state legislatures that control the process, some of which are not in favor of allowing out of state trust companies to do business in their state. • Understand this issue, but it is the single biggest drawback to a state charter.