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FDIC board backs notice to replace SARC with independent Office of Supervisory Appeals
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Summary
The FDIC board approved a notice to create a standalone Office of Supervisory Appeals to review material supervisory determinations, proposing three‑member panels of cleared, experienced reviewers and soliciting 60 days of public comment.
The Federal Deposit Insurance Corporation’s board on Thursday voted to approve a notice proposing to replace the Supervision Appeals Review Committee (SARC) with a standalone Office of Supervisory Appeals that would report to the FDIC chair and have delegated authority to decide appeals. Staff said the notice would solicit 60 days of public comment.
James Watts, an attorney in the FDIC legal division, told the board the proposal would “replace the SARC with a standalone office within the FDIC known as the Office of Supervisory Appeals.” He said panels of three reviewing officials would be assigned to consider appeals and that at least one member of any panel would be required to have bank supervisory experience.
Acting Chairman Hill explained the agency first established an appeals process in March 1995 and recounted an earlier effort to create a stand‑alone office that became operational in 2021 but was later disbanded. He said the rationale for reinstating an independent office remains the same, citing the need for consistent, impartial review and staffing whose sole job is to decide appeals.
Director Rodney Hood expressed support for the proposal, saying reinstating the office “promotes independence and transparency in the appeals process” and praising the broader pool of potential reviewers, which the notice would open to former government officials and former industry professionals with relevant experience.
Under the proposed guidelines staff described, reviewing officials could be part‑time, intermittent FDIC employees who are cleared for conflicts of interest and subject to confidentiality requirements; the ombudsman would retain an oversight role and be permitted to submit views to panels. Staff said current SARC procedures would remain in place until the office is fully operational and the transition to the new office would follow issuance of final guidelines.
The board approved the resolution to adopt the notice; staff stated the notice will be published with a 60‑day comment period.
