Question

The OCC requires a national bank to only review securities:

a. in each individual account for which it exercises investment discretion.
b. which are rated below B+.
c. which are not traded on major exchanges.
d. which have been purchased by the bank as fiduciary.

Answer 1

The OCC requires national banks to review securities they have purchased as fiduciary, which is a part of its broader role in bank supervision that ensures banks maintain a positive net worth and not overly risky assets.

Step-by-step explanation:

The Office of the Comptroller of the Currency (OCC) plays a crucial role in the supervision of national banks within the United States. Among its duties, the OCC is tasked with inspecting the balance sheets of banks to ensure they maintain a positive net worth and that their assets are not excessively risky.

Specifically, when it comes to securities, the OCC requires a national bank to review those securities which the bank has purchased as a fiduciary. This is part of a broader regulatory framework where multiple agencies, including the OCC, the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve, work together to oversee banking practices, enforce consumer protection laws, and ensure the stability and compliance of the banking system.