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OPTIONS Title Color: Font Color: Background Color: Font: Open Sans (Default) Open Dyslexic Arial Arial Black Calibri Courier New Garamond Georgia Impact Tahoma Terminal Times New Roman Verdana Font Size: 8px 10px 12px 14px 16px 18px 20px 22px 24px 26px 28px 30px 32px 34px 36px 38px 40px 42px 44px 46px 48px 50px 52px 54px 56px 58px 60px 62px 64px 66px 68px 70px 72px 74px 76px 78px 80px 82px 84px 86px 88px 90px 92px Line Height: Single spacing 1.5 spacing Double spacing File Format: PDF DOC Options: Timecodes Lines FDIC 61739 2:15P - 4:30P EST 11312 TRANSCRIPT * STREAMBOX 11643828507908:19:01:47February 2, 2022 21643828507908:19:01:47 31643828507908:19:01:47DISCLAIMER: DEAF ACCESS SOLUTIONS (DAS) 41643828507908:19:01:47REALTIME FILE 51643828507908:19:01:47 61643828507908:19:01:47******DISCLAIMER****** 71643828507908:19:01:47This transcript is not an official document of the event and cannot be used as such. 81643828507908:19:01:47******DISCLAIMER****** 91643828507908:19:01:47 101643828507908:19:01:47TRANSCRIPT: 111643828507908:19:01:47 121643828507908:19:01:47 131643828507908:19:01:47 141643828507908:19:01:47 Test. 151643829089779:19:11:29 [ on standby ] 161643830276951:19:31:16 >> Good afternoon and welcome to our first all hands for the year fl Matthew is going to serve as represent for the call thank you. We do have a full agenda, we shared out I believe it was yesterday want tog highlight priorities for 2022. Before we start with that, I did want to take a minute to address some questions that we received ahead of the call regarding telework agreement. 171643830300871:19:31:40 Our division of admission developing frequently asked questions and training. I can't jump ahead. There are a few things I've been okay to clarify with everyone. 181643830315099:19:31:55 Several of the questions submitted referenced so-called 24 hour rule. I want to caution everybody to read agreement language closely based on kinds of questions we were getting. So the agreement indicates management will generally provide 24 hours notice of assignment in the office. 191643830333399:19:32:13 This is what we think we can commit to generally provide 24 hours advance notice. What I want to make quleer this language does not suggest there's rule that everyone has 24 hours to get to the office. We do expect employees offer home based option will continue to be assigned work in the office on regular basis regardless of whether they, would in field office, regional or Washington office. 201643830357803:19:32:37 That is why the positions are not designated as remote work. Remote workers rarely expected to be assigned to the office. Take this information into consideration if you are thinking about moving residence loabzs, folks were think about those I understand of changes, remember that employees are not entitled to official treefl time or travel expenses when coming to the office they have to travel on their own time and own expense. Please, take all this into consideration as you are thinking about options. 211643830391875:19:33:11 We'll share the types of activities that we expect to bring staff to the office. Activity more effective in person like training and certain meetings. Examiners will be expected to travel to field office from time to time to support training in the new hybrid approach to exams. We'll expect HBO examiners to travel banks for examinations just like prepandemic, we did receive question about this I want to emphasize yes examiners are going to be required to travel on site activities. And remember that at the requirement for on site examination activity based on statute for us for safety and soundness exams it's the law. 221643830434014:19:33:54 Case managers going to be expected to travel to banks for board meetings k director's quleches, I encourage you to keep regulations in mind if thinking about moving outside designated area for your office term that's defined in the travel regs. You'll have rules if you live outside of that area. 231643830454579:19:34:14 FAQs elaborate on this further and these issues are going to be uferred can in training also being developed. I did want to take few minutes to address maybe possible miss concessions early. I also want to emphasize everybody's going to get FAQs and training before receiving notice of options that are available to them personally. Before they are asked to make selection. All of that will happen before the notices are snt out. 241643830483258:19:34:43 It is important that we get this right as an organization to achieve our mission to promote public fs can in the financial system through safe and sound banks. And I think its important to remember this is not just technology or procedures, how we work together. How we have culture of excellence, cul chr of in cleuns and carrying culture of paying it forward through models of training. 251643830504835:19:35:04 Going to need to be intentional in world where we may be together less frequently much as we've done last two years. For all challenges that is going to present moving to hybrid viern the, presents opportunity to rethink how we do things. 261643830519315:19:35:19 When we gt get to phase three of return to office plan and return to banks plan not going to look like it did February 2020. We're going to find ourselves in new world where we'll have to integrate in person and remote team members. This environment will be workplace of future there's no play book, it hasn't happened before, so its something new. 271643830540615:19:35:40 There are you know of course number of companies that experienced hybrid workplaces dozens of articles on the topic many of us read. Nothing really compares to the scale of this transition and actually going through its. So, good news is that we're going to have more options on where we do our work challenge will be to make sure we have cohesive effective team to meet our mission. 281643830563978:19:36:03 We make sure that we're prepared to execute on our mission now and in the future through strategic planning. This year marks end of RMS plan. We received one question about where to find the goals and reports associated with current plan. So I wanted to highlight we did not develop separate gels under strategic plan for last several years as the FDIC performance goals and annual performance plan goals we submit to Congress outlined all of our efforts. 291643830595707:19:36:35 We've shared this in detail tin national meeting day gatherings one of the reasons we devoted time to discussing our goals under those plans. Because that is our game plan under the strategic plan. So last fall we conducted survey to get feedback on 2021 national meeting day related all hands call I do want to thank everybody for taking time to provide thoughtful comments and feedback it was helpful. For those who are new to the FDIC since last year couldn't set of national meeting day developed by team of employees who conducted focus groups a crosses division to gather feedback on ways we can enhance the communication. Idea once a year in early part of the year we would talk about what are all of our goals? What is or focus going to be this year? What are we going to be doing besides our daily work. Big strategic initiatives, making sure everybody has common understanding what those gols are. They can understand how they contribute. 301643830657151:19:37:37 So, we scuct conduct td last year's survey to make sure the program was meeting goals relatively new. Answer we got was yes, but with recommendations for changes to the meeting format, so based on feedback we got, we planned several changes to 2022 national meeting day. So first of all, all of the activity will occur one day. We'll start by having the Washington office executive management team share 2022 goals and objectives with all RMS staff. So, we will do this after the FDIC performance goals and annual performance plans for 2022 are finalized. So as reminder you can review and submit feedback on 2022FDIC goals. That you what global message way link to goals to allow you to provide comment. 311643830706919:19:38:26 Then after we conduct that divisional meeting to talk about goals, regional and field office management teams will host follow on meetings Washington office teams this is going to allow everyone to participate in discussion about how they are working will contribute to broader goals and any other challenge fs that are faced. We'll get out meeting materials to everybody at least a week before the meeting to provide sufficient time to review the materials and our hope that is going to give us some better interaction and discussion during the meet tionz. Then finally, we'll issue short survey or questionnaire at the end of the day to solicit feedback. And see how well the changes addressed recommendations that were made. 321643830750339:19:39:10 So, back to the question about where to find the reports of progress on last year's goals we do report on our progress on the FDIC performance goals each quarter division of finance. We will post our end of year report once finalizes review, you'll get actual report showing quarterly milestones and where wended up in the course of the year fl. 331643830774240:19:39:34 You'll also see our performances under the annual performance plan goals this in or annual report. And the annual report for 2021 will be issued by mid February those will be two places you can check to see what we did in response to our goals. 341643830790770:19:39:50 So far our strategic plans two plans 2013 to 2017 and 2018 to tboo have outlined our goals with respect to embed lg supervision into our supervision program providing for knowledge transfer and building of bench strength and areas of complexity being nimble and innovative in policy responses focusing on hiring and retaining statement I am grateful to everybody who is contributed to the tremendous progress we made over the past eight years. 351643830820747:19:40:20 As we wrap up 2018 to 22 plan you'll see a lot of effort in the middle of the year to start planning process for the next iteration of our plan. We'll be slifting in puts around mid-year please start thinking about areas that you think we should be focused on. 361643830835931:19:40:35 Some of other past areas of focus are going to continue such as knowledge transfer, forward looking supervision and focusing hiring, developing and retaining staff S I really, appreciate so much all continued support enthusiasm around training, which is so important to model of examiner development. Be new areas offer focus as well given exciting developments occurring in industry. And the innovation and modernization of our own sls. Studying analyzing digital assets, understanding Artificial Intelligence and machine learning really just keeping pace with changes in technology in general as they relate to cybersecurity risks. 371643830876550:19:41:16 And these new activities will be evaluated. Its going to be important that we understand how these changes can impact financial you institutions. 381643830887983:19:41:27 It was the Greek philosopher who said that the only constant is change that is certainly been true in or field of work. The industry changes in make up and activities we have to change with it and anticipate what the future changes will hold. Soaring soaring exciting time, we have busy agenda for this year let's go ahead and jump in. First topic cybersecurity reminder about cybersecurity response plan requirements and thank you to the colleague who sent recommendation that we talk about this topic at our first all hands call for the year. Martin. 391643830926911:19:42:06 >> Martin: Great. Thanks you, thank you. H, Doree nirks good morning good afternoon to everybody. We can go to the next slide. As you would expect continues to be very active cyber threat and cyber vulnerability environment that our banks and service providers face. So, the work you all do whether IT examiner or safety examiner assigned to do IT exam is very very important. 401643830960687:19:42:40 We picked out a few of the threats and vulnerabilities top of mind for us here at headquarters and regional offices as well. Ransomware is probably not surprise to anybody on the call. The at taxes using Ransomware where mal lishz actor [ attack scwhroap cloap employ software in krifts computer tion, service provider they continue to increase. 411643830989879:19:43:09 The data you see here from FINSIN suspicious activity reports that they published last year and I indicating 635 ransom related during the first six months of 2021. You compare that to 487 ransom wear related in 2020 you start to get sense for the level of increase in the pace. 421643831019763:19:43:39 Now, as we look at the data and we have spent some time coming into 2022 on Ransomware analysis, not that they are 635 banks that were attacked, banks will report both service providers, they'll report sometimes on customers that have been attacked, bottom line is Ransomware is still very significant threat and the number of times malicious actors are using Ransomware is increasing. 431643831051327:19:44:11 Second thing on our list widespread vul ner R5B89 detection of those, boy we were geared up had calls with [ vulnerability ] field in regions 2021 preparing for what is typically a busy tile at the end of the year the malicious actors like to take advantage of holidays. 441643831072887:19:44:32 And we weren't disappointed in that again this year like last year, very significant vulnerability was discovered in, in December, it's called log 4J. But important thing to take away is the word prolific there, it's a vulnerability that exists almost all companies. Whether in the financial services sector or not, whether a bank or not. It's just a vulnerability that exists everywhere across not only United States but internationally. 451643831108730:19:45:08 There were a lot of banks many of our banks hopefully most of our banks were taking action quickly in December when this vulnerability was discovered trying to find where it existed and take to mitigate it. Not only was vulnerability discovered in software, but very very quickly there were reports of mal lishz actors taking advantage of the vulnerability. 461643831135099:19:45:35 We say they are exploiting vulnerability. So, we sent message to banks making sure they understood its not just hypothetical threat, it's threat that's resulting in incidents. 471643831150591:19:45:50 Karla, if we could go to the next slide. Last thing I'll mention in terms of threats and vulnerabilities is the current environment in Eastern Europe, geopolitical tensions, we have seen Russia in the past shown willingness to engage in cyber operations in addition to and sometimes as precursor to physical actions here already in the second week of January, we seen another attack on Ukrainian government websites and networks. 481643831187655:19:46:27 In the past when there has been conflict it has sometimes trickled out into other areas and other nations. So, we're very concerned about this Department of Homeland Security does assess that there's potential for Russia to use kinds of malicious activity in cyberspace that they have used against Ukraine on US or US allies if there's interference with Russia's intentions. So, there's been heightened state of alert: If DIC you probably saw sent message through FDIC Connect it was private, it wasn't financial institution letter we sent message jean wear 14th short message DHS's cybersecurity and infrastructure security agency information about the threat. Very specific information that that DHS published along with [ January 14th ] steps a bank could take to mitigate, steps a bank could take to see if there had been malicious activity on their network. 491643831260767:19:47:40 So, one of the words we use to describe when we send these messages really just amplifying good information that FBI and others put out. So, it is an active environment. That's why we thought it was a great suggestion coming into talk to you all about what you do if you learn of cyber incident at a bank or service provider for that I'm going to turn it over to my colleague Mike. 501643831289739:19:48:09 >> Mike: Thank you, Martin. Karla if we could have the next slide. Before we jump into specifics of procedures, I want to engage in stage setting exercise. First I'd like to kind of think about how you might discover that a bank is victim of cyber incident. 511643831309059:19:48:29 This slide were multiple choice question that you could answer the correct answer would be all of the above and then some other ways we haven't contemplatessed. 521643831319212:19:48:39 Most likely way you would find out about cyber incident by direct contact from bank management or service provider management. This could be phone call. Or email to case manager or to the regional office. 531643831331887:19:48:51 Another way we discovered incidents by reading about them on social media. Twitter. Threat actors will often post notes about compromised activities to websites social media platforms as a way to show they are serious. 541643831348671:19:49:08 Third way you might find out is that the bank files a SAR as Martin mentioned report they did Ransomware related SARS. You might learn during ongoing examination, management might come up to you if you are experiencing live eept, examiners might learn of incident that occurred in the past by reading about it in the board minutes. Or seeing evidence of cyber insurance claim. 551643831375347:19:49:35 Point I want to make is that there's no one answer to this question. Multiple ways we might find out out about cyber incident. Next slide. 561643831385759:19:49:45 Detailed incident response procedures are outlined in our memo 2017-018RMS amend the March 12th, 2021: At high level this slide depicts primary steps you would follow when you learn of cyber incident. 571643831409655:19:50:09 Gather facts by contacting entity. The facts should be recorded by creating incident report in Vision. During this fact gathering discussion time to provide helpful information. Checklist of useful information to provide to entity and appendix A of the memo. 581643831430759:19:50:30 Next step to assess incident severity and escalate as appropriate. RD memo includes severity schema should be used to evaluate incident. Severity incidents should we escalated to Washington office by sending incident report to the mailbox. Sample in RMS incident report appendix B of RD memo. 591643831457607:19:50:57 If incident is not escalated might be specific regional procedure you should follow. Then next step sort of monitor mediation and update facts as appropriate. Continue to mop tore situation through ongoing communications with bank or service provider and update facts as appropriate. 601643831476407:19:51:16 These ongoing monitoring meetings might include states or other baipging agencies as appropriate. The vision records should be updated with new information. And if the incident was escalate tod to Washington incident report should also be updated. Will be placed on share point fold ber by regional and Washington. 611643831503307:19:51:43 Final step is to close out when its appropriate. Next slide, please. 621643831509391:19:51:49 On this slide is example of how severity scheme sna and RD number helps you assess. This is, you can't really read the part on the right especially, basically what you can see shows a chart with various levels of severity, ranging from low to medium to high to sphere to emergency. 631643831529787:19:52:09 And we've expanded blown up here the description of level two medium incident which describes that the incident may impact and disrupt financial services operations of one or more ensured depository institution or service provider fl level two medium is first level that requires escalation to Washington. 641643831549539:19:52:29 Table also includes information on who should be notified and associated timeframe expectations for escalating. So, using Ransomware example, that probably is incident Ransomware, financial institutions would likely fall into this category level. Next slide. 651643831571862:19:52:51 See if there's any questions that came in in Q and A. I don't see any. So, I just want to remind everybody that ARD responsibility for IT supervision. IT examination specialists, and ITSE's in your region familiar with these procedures and often help case managers and examiners through initial process and ongoing monitoring, so, you can certainly feel free to contact them for assistance. We in Washington always here to help. We don't mind phone kawlsz calls. Thanks I'll turn it back over to Dore, n. 661643831613487:19:53:33 >> Doreen: One thing maybe I'll emphasize here is Mike talked about level two highlighted level two on that of the schema on the slide, and one of the reasons that's important we have obligation under memorandum of understanding to highlight those kinds of events to the Department of the treasury. 671643831634835:19:53:54 And through financial banking information and infrastructure committee. So, information that's being reported up from the field will be shared in that way and that's so that treasury is the sector-specific lead for the financial services sictd can be aware and can monitor across the industry if there are things popping multiple different agencies reporting up an reent one of the ways to monitor. Wanted to just highlight that as well. 681643831666571:19:54:26 So, next up is Ryan and Ryan is going to talk about impact of inflation on financial institutions. 691643831674434:19:54:34 >> Ryan: Couple, received number of questions about impact of monetary policy and inflation on financial institutions. Many of you probably saw last week, target raimple funds unchanged year zero. They did site high in, to raise funds in the short term. 701643831706163:19:55:06 Telegraphed rate hike at the march meeting market consensus for rate hikes little all over the place but current consensus suggests between four and five quarter point rate hiebz this year. You might have seen projections as high as seven would imply rate high at every meeting for remainder of year. You may see some suggest probability of 50 bases point rate hike as early as march. One thing fed unlikely to chit itself to rate path. 711643831745291:19:55:45 With respect to fed's balance sheet, FOMC continuing to reduce monthly pace of asset purchase. Bringing as purchases to zero probably early March. Feds expected to reduce size of balance sheet fed funds begins to increase. 721643831768434:19:56:08 Thinking about monetary and economic issues in context of liability management, earnings and financial reporting. Impact our institutions likely to be mixed for example, rising rates may benefit banks earnings. They contended with rates for a long time, declining asset yields difficult to maintain, -- generally speaking, yields for these banks particularly the ones that have sensitive positions didn't reach far out for yield or compromise on credit standards. 731643831806571:19:56:46 On the other hand, some examiners pointed out tows inflation is impacted personnel, other over head expenses for all companies including bank customers and borrowers. And this could impact many elements that contribute to bank's bottom line. 741643831821535:19:57:01 There's accounting considerations inflation factor that may be incorporated in method -- snreutions may use multiple scenarios in for cast with adjustments how inflation might, institutions might address some in flaises a qualitative factor adjustment as part of reasonable supportable for cast. Encourage institutions to speak with auditors in terms of inflation impact on their expected credit losses. 751643831858607:19:57:38 Next market risks important things to think about in this context. Subset community banks extended asset maturity, bonds, higher rates, would, and this is risk you are well aware of. 761643831880443:19:58:00 One other consideration is the robust deposit risk we've seen since pandemic's onset. Contributed to broad in kriens liquid assets increase liquid assets to provide banks with flexibility to address risk of inflation and higher rates. 771643831899483:19:58:19 Last couple things I would mention one issue we're trying to focus on how per sis stant inflation could lead to potential inflation problems. Inflationary precious and rising rates, -- probability of de tawlt change economic growth factor we're considering, often read about fed's trying to execute what soft landing of raising rates will not [ Indiscernible ] to be mindful O we'll continue to communicate with you all as the year progresses. 781643831937290:19:58:57 Last note Capitol markets and accounting planning webinar to discuss current interest rate environment point out supervisory considerations for sensitivity to market risk reviews, team will Sherry sent findings from, monitoring program, currently vetting this presentation within targeting early mflt alrch release, that's ail I have [ March ] 791643831968791:19:59:28 >> Doreen: Maybe I can call Martin back there was one question that came in on your presentation about effective date of the cyber incident notification rule. 801643831981474:19:59:41 >> April or May. 811643831982990:19:59:42 >> Martin: I believe it's May. I think we're targeting certainly targeting financial institution letter much sooner than that to guide institutions on how they can report consistent with the rule. 821643831999259:19:59:59 >> Doreen. Thanks next up is RayAnn status of continuous examination program and some other supervisory examination matters. 831643832012475:20:00:12 >> RayAnn: Yeah, so last year we embarked on review of our large bank supervision program, it's first stin review I'm sure we will be, I know we will entering in other phases this year flts paferg paragraph we gathered feedback from regions there were regions that had already been starting to look at some of these issues on their own, incorporated that kind of feedback as well as focus groups and steering committee and subgroups on various topics. Now we're working through recommendations and I will just kind of talk about high level recommendations we're sort of still going through some of them when they involve things like hiring and staffing flexibilities we do need to clear that with with appropriate parties. 841643832071867:20:01:11 From high level, some of other things that we're looking at is, increasing transparency of the program and when I say that, we don't really talk about continuous exam procedures in our manual. We have mention of it in or annual report, draft annual report for 2022. We're working on getting nose concepts into into our manual so the public is more clear on differences between a point in time process and continuous exam process. 851643832106883:20:01:46 They are all exams, all are designed to assign you first and understand and complete the core analysis decision factors but how we get there and the processes we use will differ. So, other transparency initiatives we are working on updating our large bank procedures and in particularly supervisory planning processes, which if you read those procedures I think authors had intended some pretty significant flexibilities, but over time, it looks as if there's a ceiling to the types of deliverables and other activities that need to be per formed. One size fits all flavor although that wasn't what was intended. 861643832165327:20:02:45 We're working to increase the risk focused flavor of the large bank procedures and we'll also incorporate that into the manual. And just like with community banks, we have a floor for the type of procedures that need to be completed to come up with the UFERS, there is no ceiling and no one size fits all that's another big lift. We're looking at sphaffing and flexibilities there. We want to improve interest in the large bank program. 871643832207763:20:03:27 Retention, we've got some additional tools that we think will be very helpful for examiners. Add modules that would be maybe not specific, but largely focused on large institutions that have more sophisticated risk management procedures. Add modules training with respect to these concepts. 881643832234683:20:03:54 We try to do them on ad hoc bases we're looking at program particular approach to training. As part of that too in training we're also working on large bank 101 that would be delivered to all examiners introduction to large bank concepts of heightened risk management. 891643832258055:20:04:18 Introduction to how procedures might differ with respect to point in time in continuous examination program. So, those are sort of high level things that we're looking for in terms of staffing, like I said we would need to vet some of these recommendations, but the things that we're thinking about all hinge around increasing flexibilities and increasing flexibilities and improving interest. 901643832292307:20:04:52 So, I'll move real quickly to Doreen asked to talk about examination priorities for the coming year as you know supervision and policy you heard from Mike and Martin, they cover operational risks, cyber is all over the news. 911643832312619:20:05:12 Old fashion credit risk hasn't gone away. So, we will be interested in continuing to look at CRE, in particular over the year, certainly, during the pandemic, it was, we always have CRE as regional risk committee topic, but we will continue to focus on that. 921643832338523:20:05:38 We've been waiting if you asked me maybe a year ago, two years ago we didn't know what was going to happen, but we would have maybe thought we would see more disruption in CRE sector. 931643832353743:20:05:53 One issue money had been very very cheap. So, there's a lot of dry powder on the side looking for deals that probably picked up those deals and as Ryan mentioned perhaps, the low cost party might be coming to an end or at least be curtailed by rate hikes. Interesting to see what happens to pricing. What happens to the cap rates. And other aspects of all sector of real es stairkts CRE has caused us the most volatility in the past. 941643832390035:20:06:30 Looking that. Another several other risks topics that I think are very new and they'll be more to come you are reading a lot in the newspaper about climate risk what will regulators do if anything there and so, our chairman talked about climate risk vis-a-vis part 364 and our expectations for risk management and banks to manage all risks, physical transition, and we've expected that for a long period of time and examined for that for long period we don't use words climate, 364 it wasn't contemplated we do participate in committee that has recently issued high level set of principles, recently I think it was October or November. 951643832449479:20:07:29 So, we participate in that: If SOC has also [ FSOC discussed convening a group that's going to address climate risks and FSOC as you know, maybe some of you don't, market and entity regulators so group of 10 voting members five non voting members but includes SEC, FHA, and we're going to have a group first meeting is this week on how as government we would tackle climate change in the financial system. So that's really very new and I think they'll be more to tum there. 961643832500535:20:08:20 Another knewish topic digital assets stable coins, you may remember that the FDIC, OCC and federal reserve issued calling sort of road map for review of this area it's still very new. 971643832521359:20:08:41 So, we're treading very carefully. As a government, the, there's a lot of pressure as well to come up with government-wide what are our views on these topics, stable coin, crypto assets, digital assets, some of these terms kind of come together. 981643832542435:20:09:02 So, we're working with OCC and federal reserve to achieve our road map and what we set ut which is to tackle some use cases. Some topics that might be things that banks are doing now, so things like custody lepping on digital assets. [ lend offing cloap cloach some of you may be ostled in supervising some institutions tiptoeing into those activities, we talked with case managers and ARD's and try to keep at least a informal listing and understanding of banks that are getting into these activities. So, if you know about them, please do drop us a line. It's again something that's happening right now. I fully expect that they'll be more to come both supervisory aspect and policy aspect digital this year. 991643832601599:20:10:01 And then I think high might have some questions in the chat but before I move to those questions. I did want to just touch on another topic, not a new topic, but certainly something you've seen in the knews on appraisals, potential bias in appraisals. 1001643832621163:20:10:21 So, I don't have specific due date or deliverable that will happen, but, the appraisal subcommittee and a committee led by HUD are all looking at the regulatory framework around appraisals and appraisal foundation and use PAP and all things implemented. Some might remember in FIREA and seeing whether now might be appropriate time to make a change there. 1011643832656427:20:10:56 So, again, definitely emerging issue something we're keeping our eyes on. So, I have some questions is it okay there's two questions I have. 1021643832672211:20:11:12 >> Doreen: Yes. 1031643832677811:20:11:17 >> One about timeline in getting recommendations and sending information to the field. We are work tion on timeline right now where 2022 is our timeline. And we have some staged deliverables. So easier lift is some of other policy and transparency issues that I mentioned z. So, we're working on embedding definitions of continuous and point in time examinations into our manual. I think that will be one of the earlier and kind of easier lifts. 1041643832715627:20:11:55 I have we're also working on the supervisory planning piece that we would like to push out and start testing before the 2023 plans are due. So, we start working on those May, June timeframe so I'm expecting those will come out then. Staffing pieces, I have to call it as soon as possible. Because we do have other parties administration and things that we need to consult with. I think we have pretty good sense of direction where we want to go there. Like I said to make hit more flexible and lower some bars to participation. 1051643832758287:20:12:38 Will there be second question will there be any opportunities for examiners in the regions to assist with implementing some kairchs as large bank examiner I would be willing, yes, I mean that would be fantastic. We do have working groups. We solicited volunteers for input back when we started this project. And if anybody's interested in participating please drop me or, a line, there's going to be plenty of opportunities. 1061643832794379:20:13:14 In particular, when we start launching the training and knowledge, knowledge transfer piece I think there will be a lot of opportunities for trainers and people to really help, I don't like and Doreen doesn't like it, the idea that there's two worlds here. We have one manual. We have one examination. The way you get there, might be different depending on the size and complexity of the institution, I really would love to broaden knowledge of what's expected in larger institutions and how you examine for that. I'm looking forward to seeing people share their knowledge of that. 1071643832840288:20:14:00 I think that's all the questions I see in my topics. I'll turn it back to you. 1081643832846631:20:14:06 >> Doree, in: I think that's it thank you Rae-Ann. We have focus groups nudge number of regions conducted information gathering activities to solicit feedback from existing dedicated examination team members. 1091643832866187:20:14:26 And folks that hadn't worked in large bank as dedicated staff member. But participated. So, we got just volumes volumes lots and lots of information. Which has been helpful really do want to thank everybody for all of that. 1101643832881971:20:14:41 And I think next up is Shannon who is going to talk to us about kind of final year of implementation, Shannon take it away. 1111643832892855:20:14:52 >> Shannon: This topic is timely as Cecil was discussed this morning. I'm happy to report that Cecil accounting standard is on schedule to be effective or all institution ss beginning 2023. Institutions that have not yet implemented Cecil, they should be ramping up preparations in 2022 that would include parallel runs of incur ready loss meth dollars and Cecil memed lodges, institutions encouraged to discuss preparation plans and questions with examination or regional office staff. Updates to the Cecil questionnaire are in process in RD notice planned to guide examiner discussions with bankers as we move closer to Cecil implementation for all supervised institutions. 1121643832944139:20:15:44 With that, I'll turn presentation back over. 1131643832950727:20:15:50 >> Doreen: Thanks next up is Betty to give us update on NDI program. 1141643832958095:20:15:58 >> Betty: Before we jump into sort of genre update I wanted to respond to question we received in advance of the meeting. 1151643832968495:20:16:08 The question was about fire side chat that mac Williams participated in, event was titled advancing die sersity and equity across financial services. Cohosted with national bayingers association trade group representing minority depository institutions or MDIs. Question related to to how well examiners understand MDI business models, how FDIC supports them with training on this topic P question addressed causes of MDI failures. 1161643833008608:20:16:48 So, I'll just say that in response to the question I mentioned on MDI program at all hands call in December, that examiners field supervisors and -- all play key role in examining institutions as do case managers and regional office staff. Last year the FDIC board approved updated statement of policy regarding how we implement goals related to MDIs. In 2020RMS and DCP published RD memo with examiner instructions for supervising MDI's. 1171643833051052:20:17:31 Both policy statement and the RD memo reinforced requirement in uniform financial institutions rating system that examiners recognize characteristics and differences in core objectives of all financial institutions including MDI's consider those factors when evaluating bank's financial condition and risk management practices. 1181643833076933:20:17:56 So, on all hands call in December, I noted we would beholding training in first quarter of 22 on these topics with case studies to address questions that examiners might vt about looking at MDIs and context of business models. So, size and sophistication, nature and complexity of business activities and risk profile. 1191643833099789:20:18:19 This is important in light of lot of new funding opportunities from both public sebtd and private sector that have come along recently for MDI's. So we've been working with training office to schedule training. As of today, I think we're considering couple of dates in April so we'll have one session Atlanta, Chicago and New York regions one for Dallas, Kansas City and San Francisco regions. Training will be offered to all exam staff that have MDI's in port foil yoas and this includes about thousand RMS employees. 1201643833137364:20:18:57 So in addition to delivering training, we recently partnered with colleagues in decision of insurance and research to release new MDI economic and banking dashboard. Dashboards are hopeful resource for examination staff to understand communities that MDI serve includes demographics on poverty rates, household incomes, share of homeowners, versus renders and many more statistics on specific community served by MDI's. 1211643833169340:20:19:29 So dashboard which is available on RMS website as well as DCP and DIR websites allows user to pull key information on demographics of communities where the MDI operates. 1221643833182780:20:19:42 Can really help exam staff understand better several aspects of bank's primary market and that in turn is key part of understanding the institution and its business model. 1231643833195716:20:19:55 Regarding question about MDI failures, FDIC conducted study 2019 showed 10 year period from 2008 to twint 18 so sort of great recession and following, the number of MDI's declined clun% but community banks over all declined 33% over same time period. There were 40 failures and 80 emergency jers of MDI's these trended to structural changes in over all banking industry. Decline in African American MDI's over that period significantly higher than MDI's over all. 1241643833238956:20:20:38 As a result in 2016, we took look at the root causes of failures of these banks. The study covered 11MDI's failed and found common threads of failure. So a lot of these banks had traditional sink family residential lending as primary lending product. They were, these were all quite small and failed fairly early in crisis. Several others commercial real estate as major lending product including concentrations in loans to religious organizations or convenience stores gas stations. Other causes related to turn over in management or lending staff rapid growth or problems with new lending programs. 1251643833281356:20:21:21 Another key factor was that many of these institutions did not have sufficient scale to survive. So I'd like to wrap up by sharing few initiatives we will be pursuing in 2022. First will be developing strategic plan for new Office of minority and community development banking that the chairman established in November of last year. 1261643833305228:20:21:45 We met with the regional coordinators in mid January to get input P we'll wrap up this plan in the next month or so. Second, postering the positions to staff up office build capacity and strengthen program operations. And we expect to post initial set of positions in the very near future. 1271643833329600:20:22:09 And third will be working this year to facilitate partnerships and collaborations that support mission driven banks. And in addition we'll work to promote encourage creation of new MDI's one of our statutory goals. 1281643833344832:20:22:24 I believe while I was talking there might have been couple of questions that came in is that right. 1291643833352208:20:22:32 >> Couple the first one is envision April training sessions will be recorded so that if folks are not available they can watch them later. 1301643833362361:20:22:42 >> Betty: Great question the answer is yes. 1311643833365145:20:22:45 >> And then another question will the states get the same training or could we invite them. 1321643833370976:20:22:50 >> Betty: Yes, I think we should invite the states one of the things I didn't mention cause its longer term in our training plan is developing sort of module that's state examiners could go through during commissioning process just to understand MDI's and business model dels from the beginning absolutely that's great suggestion to invite the states to that training. I think with that I'll turn it back to you. 1331643833399952:20:23:19 >> Doreen: Thanks a lot next up John to talk about our diversity, equity inclusion and accessibility sta tea generic plan and other matters, John. 1341643833412384:20:23:32 >> John: Thanks, good afternoon everybody and happy 2022. As was mentioned I'll give brief update on our diversity equity and inclusion accessibility strategic plan talk little bit about lessons learned project, I believe we've given highlights before. Let me start with DEIA strategic plan before I get into details I do want to thank frank acting regional direct Atlanta permanent regional director in New York, his a sis Stan Tara, Ben on my team, along with Jen and Carlos who round out my team done a nice job developing the plan and bringing it to the plan where he weather now getting ready to release. Thank you folks for your feedback so we disseminated plan, put it out for feedback got a lot of great suggestions that were in process incorporating into the document. 1351643833470020:20:24:30 As you know plan outlines commitment to build maintain workforce that's talented, diverse and committed to fostering inclusive workplace. We also created supplemental plan provides series of measurable actions to fulfill strategies outlined in the plan. 1361643833486804:20:24:46 Tracking actions and accomplishments keep us accountable engaged, we'll be reporting to you on our efforts under the plan. Going to be pofted on the RMS website. In the coming weeks we hope to unveil web page dedicated to DEIA efforts. From there you'll be able to review the plan including supplemental, access calendar upcoming events, find links to various resources including those provided by Office of minority women inclusion. DEA web page find shared mailbox dedicated to devment II live now you can send questions comments and suggestioning. RMSDEIA@FDIC.gov comment and share ideas we look forward to hearing from you. Excited to move forward and hope to have it announced next week or after. 1371643833548472:20:25:48 Let me talk about another issue that Doreen had us superior head that's effort to document key lessons learned from response to pandemic. So, in other words, how did our shift to telework environment go what lessons do we have as we look to work in hybrid work environment as we interface return to work office plan. Purpose of project was to identify and further promote efficient cost effective business processes from how we examine to how we use technology and how we interact and collaborate with each other so you can imagine there's a lot of lessons during learned. Wide ranging evident we had great sponsorship under Jessica acting RD in New York and Paul DRD in San Francisco along with Anthony Perry on my team associate direct of technology and services in Washington fl. 1381643833608936:20:26:48 We have Ashley from New York. Megan Cory management information am list in Washington, and Erin, field supervisor San Francisco. Group identified action items and recommendations to enhance operations as we continue to shift from our current environment to future work environment. 1391643833632028:20:27:12 We'll be announcing a lot of initiatives soon. Most, one coming up soon is our training on enhanced work environment how to effectively work in hybrid work environment, we're going to kick off training on mar 28th at the communications and technology branch developing and superior heading. Lot to look forward with or project and DEIA initiative. So we look forward to your continued feedback and comments. So, let me turn it back to you. 1401643833668309:20:27:48 >> Doree, in: One question here on the student loan repayment program is there any chance that the student loan repayment returning will be dispersed before zero%, I'm not sure we can answer this, before, -- distributed in October or later. 1411643833692676:20:28:12 >> We'll have to look up that response. 1421643833696236:20:28:16 >> Doree, in: Next up is Lisa Roy she is going to give us update on Subject Matter Expert programs and other training information. 1431643833706400:20:28:26 >> Lisa: I appreciate opportunity to talk and give brief update on our program and training updates. Program now that or training session sis up and running fully staffed which I'm grateful for, we have wonderful team, made progress over last six months. 1441643833729260:20:28:49 This year we anticipate issuing at least two on-the-job training programs and that would be trust and the bank secrecy act. We're going to release minor up disaits to ITOJT programs issued in 2018 and 2019. Continue to improve software that we use for the OJT programs. For those who aren't or having participated in any OJT programs, called OJT track our central processing point and tracking pont for OJT programs. We issued major update in November. Working on next update to be released later this year. 1451643833769612:20:29:29 And the last point I'll mention is that as we get further into the year, once we met bargaining unit obligations look forward to proid 52ing ble briefing start with over all briefing for all employees, anyone interested in listening and learning more and then as we release specific prals, we'll have additional briefings focused on those particular programs. 1461643833792204:20:29:52 Real quickly on training efforts John alluded to this 2022 training session plans to deliver more virtual training. See global message announce one training date per quarter. These are going to be relatively short sessions trying to keep them brief recognizing virtual fatigue ld hold them to about three hours one in march P additional training sessions as needed those could be broad training sessions applicable to most RMS or dedicated limited attendance sessions we'll e vool wait that with program areas but we look forward to offering more prals in 2022. I'd be happy to take any questions about training. Thank you. 1471643833837640:20:30:37 >> Doreen: Thanks. All right so, we will move to Q and A we got in a couple Shannon after your presentation asking if we could provide additional Cecil training for examiners, could you address those. 1481643833852616:20:30:52 >> Shannon: So, in addition to the Cecil presentation materials on accounting website we are planning training regarding messaging and disaits to the questionnaire and more expansive Cecil training as we get closer to third quarter of 2022. That would be consistent with or internal Cecil training program we initiated before COVID-19. There are several years of codification improvements as part of the project implementation review process. 1491643833884868:20:31:24 Those we will be communicating with training as well so stay tuned thank you. 1501643833889700:20:31:29 >> Dore en: We got questions that came in ahead of call John first question goes to you. 1511643833900592:20:31:40 First couple actually for you. So, first one is when would it be appropriate to begin scheduling in person PLA opportunities? 1521643833909368:20:31:49 >> John: Thank I know folks are anxious to attend training. What we've been telling folks if there's training that you need to undertake for credentialing not offered virtually go ahead and schedule that training but work with your supervisor to get approval we understand that its necessary to maintain those credentials important to us, important tow we want to make sure you have opportunities. 1531643833934904:20:32:14 Secondly, regarding scheduling PLA later in the year advice I've been given schedule if it's cansable if there's option for virtual we don't know what the situation is going to be as you've seen we've extended mandatory telework again through April 3rd I don't know what its going to look like post April I don't want to put is in a position where we've made commitments we can't honor as far as travel and attendance. Schedule training but see if you can cancel, if you need for -- check with your supervisor. 1541643833972712:20:32:52 >> Doreen: Next question kind of comment question it says that suggest, understaffed in examiner ranks asks what's being done to address the situation and then there's some what related question about mix of commissioned precommissioned staff in offices why differences across the country can you address those two please. 1551643833996816:20:33:16 >> John: Let me step back and talk little bit about how we undertake staffing for examiners. So, there are couple of processes we take when we look to next budget cycle. Last year, starting in June and July, we ran what we call examiner staffing model, which is designed for institutions that are not involved in continuous exam program. You heard Rae talk about. We run a model that was developed years ago we've been using year after year to develop that core examiner staffing number based on benchmark hours and benchmark hours are you know, relate to size and complexity of institution, rating, et cetera, et cetera. 1561643834045102:20:34:05 So, that model gives us a staffing number for exams that are not part 06 the CEP, so for exams under the program we undertake yearly planning session and that planning that exam planning that exam strategy feeds number of examiners we need under continuous exam program. So we take those numbers add them together that gives us examiner staffing. 1571643834071272:20:34:31 So, we fully understand that these are, there was a lot of estimating done last year when at scenarios still in the midst of the pandemic we weren't sure what vee was going to look like. So we obtained commit toment maintain over hire position in RMS we committed to maintain 150 examiners above and beyond that number I described. So staffing model, CEP, plus 150 that's the number that we've been targeting. We'll see what 2023 looks like but for this year we are going to continued to hire and continued to be over staffed. I will say over staffed miss know me, we do no our efficiency has been impacted by pandemic it was mentioned 130% benchmark that means we need more examiners to get traditional work, we are not efficient operating in completely virtual environment. That caused strain. 1581643834144160:20:35:44 So, that said I also very much appreciate and understand disparity of commissioned examiners,, it really is a range, we have offices where you have hyper taches of commissioned examiners, able to do them efficiently, offices up to 50% commissioned examiners, that does create training obligation and resource stress on those offices. 1591643834176929:20:36:16 But it's part of ow apprenticeship model, we are working folks through the commissioning process. Commit od to hire at least 120 individuals year over year, starting to see those folks progress through commissioning even through pandemic, our numbers are getting better that said there's still a lot of training that needs to be done. It is not ideal in the virtual environment, we're all looking forward to getting back into banks where we can continue to foster that team approach and that apprenticeship model that served us so well for many many years. 1601643834212464:20:36:52 So, I'm not sure I answered all aspects of the question happy to elaborate. 1611643834217808:20:36:57 >> Doreen: I thank you did. Thank you. Okay. Martin, related question for you. This one asserts we have shortage of IT examiners and asks what is being done so can you address this commented? 1621643834233796:20:37:13 >> Martin: Yeah, I would just offer that there are a lot of things we are trying and doing so, my team here in Washington working with regional staff, IT, ARD's a lot of variables and ways to think about adequacy of IT examiners for IT exams,, examiners or IT exams. I'll touch on a few things. 1631643834262236:20:37:42 We've done one of the things for example just few years ago, received post higher greated IT examiner positions, grade 15 for one of their primary jobs is to be lead examiners at the most significant service providers. So there is more opportunity when you build up the skill and experience to conduct IT examinations. 1641643834291216:20:38:11 We've also at the other end we realize that it takes a long time for us to create IT examiner for a person to go through commissioning process and then go through the mandatory training and begin working in IT exams. So, come pel years ago we began hiring IT and cybersecurity analysts. These are folks that begin their career at the FDIC working on IT exams, right out of the gate. 1651643834322949:20:38:42 Folks who general vl some sort of undergrad degree that's related to IT examinations either engineering software engineering degree or cybersecurity degree, we've leveraged the program that US OPM put in place for any agency called cyber core in fact, we just went to another cyber Cory kreuting session here in January folks from re junsz recruiters from regions trying to identify new ITCA's people compete well for those positions. We're hiring I think we got around 25, 30 at the smoament of these entry level folks that are just doing great and we're going to hire more. We got authority to hire more or them. 1661643834376029:20:39:36 They will augment our examiners hopefully give little bit of a break to our examiners who might feel little bit spread, and again because of the nature where they are in their career, and what we're asking them to do, they're going to be able to be productive on the IT examinations at level C institutions lease complex institutions right away. 1671643834402752:20:40:02 We're also, maybe last on that thinking about their career trajectory and ITEA's as well who have been here quite a few years, we've got ITEA's come and worked in Washington and still working in Washington. We want to continue to be diligent and think about new ways to offer them great career path at the: If DIC. 1681643834427624:20:40:27 The other thing two more areas on this question monitoring the stress we feel in IT exams having the right examiners for the exam various by region and even field office. So here in Washington, and each regional office we have standardized reports, watching how many people we have going through OJT training programs, how many people graduated, how many senior graded IT examiners do we have. 1691643834460164:20:41:00 Then looking at complexity of banks. How many banks do we have at each of the three complexity level, C, B and A. Are there migrations as we've introduced [ Indiscernible ] that create need for hire proficiency and understanding level that we didn't have before. 1701643834480701:20:41:20 There are various answers to those questions but we do have standardized reports we do get together quarterly and look at those and use that data to think about where we need resources and what we can do to drive interest for example OJT program. 1711643834505332:20:41:45 Last thing I would just say is, is, that there was suggestion I think we talked about it maybe at the last all hands call, there's also a little bit of flexibility we think is available it was I think field examiner who suggested it in policy around how IT exams are conducted I don't want to get into too much depth we're working on it the commentator suggested that there was policy that was limiting and we've talked about that little bit with ITARD's we really agree with the suggestion. 1721643834539592:20:42:19 I think it's really important that we have somebody that has experience sign off on the IT exam at the particular complexity level. But just like EAIC of routine safety exam that person signing off reviewing results doesn't have to be the one that does every last bit of work on the IT exam. I hope that gives you little bit of breath to various dimensions the ways in which we're thinking about the problem appreciate the question. Thanks, Doreen. 1731643834573604:20:42:53 >> Doree, in: Thanks Martin I'm going to add couple of comments because we got a couple comments asking about are we going to reevaluate benchmark hours? Are there thoughts about spreading training beyond regional borders or even field office borders, I know there's so much going on in this area. 1741643834600260:20:43:20 Supervisor examiners have been creative in pairing multiple offices together to do training on one specific topic for precommissioned examiners that are all specific level at the same level get same training at the same time. And sharing resources to do that. 1751643834618780:20:43:38 But, yeah, we should be creative in thinking and thinking about how do we make sure that we're training everybody and giving them what they need, when they need it, and leveraging resources across the country to do it. 1761643834631980:20:43:51 We should absolutely be doing that. We do need to re e vool wait benchmark hours and we will do that at some point [ reevaluate ] the question is will we do it we're we toking hybrid environment, might make sense to it after we've been in hybrid environment little bit and get feel for how that's working what impact that's having on us. If any at all fl. 1771643834657624:20:44:17 In terms of efficiency so that, it will be helpful to understand that. And then the other thing I wanted to mess on Subject Matter Expert program, with each one of these program we develop complexity scripts we hope to build those into our examiner staffing model program. So that it gives us information let's us know what is complexity level of industry that we have responsibility for supervising relative to each of those specialty areas. That gives us information on what kind of expertise do we need to be developing in examiner ranks. 1781643834701871:20:45:01 And then how many examiners we need as the more complex institution will take more time to examine not just asset and rating of institution as we all know there are small institutions that can take a lot of time to examine because of their complexity. 1791643834719553:20:45:19 So, I did want to add those comments in. The next question was for you this is question expressing disappointedment that a colleague did not get retirement resolution and wanted background rationale behind that can you address that matter? 1801643834746188:20:45:46 >> Sure thanks, once we went on mandatory telework, we were unable to access the official personnel files of people also the graphics department stopped working so we couldn't do traditional resolutions the nice printed framed ones that we always have done. 1811643834767524:20:46:07 We have been trying to give people something electronic in the, when they have retired in the meantime. But we are planning to hopefully go back to that, that way of producing resolutions in the future. Once we are able to get graphics department together and have access to the full OPM personnel file. 1821643834795432:20:46:35 >> Doreen: Thanks, Sherry. Trying to get back to unmute. 1831643834800500:20:46:40 Then I think the last question that came in ahead we really already answered so, John, I'll see if you want to elaborate, this question asks is all of the hard work that the agency has done on diversity equity inclusion and accessibility front will continue with Chairman mac Williams I think that's a hard yes. 1841643834824864:20:47:04 >> John: When I think it is hard yes, you'll see our continued commitment. 1851643834832764:20:47:12 >> Doreen: Thank you. All right. So, few more questions in here there's a question about, couple Rae for you, will we develop formal position to track -- for banks system to aggregate issues nationwide I'm not sure facility this is specific to large bank or in general, but let me start with kind of RMS business process modernization and then Rae can get more specific. But we set sup system for tracking matters, across agency and then gathering information about what the [ Indiscernible ] was related to so we could aggregate across industry. When we get to business process modernization and we're replacing functionality that now exists in educate TS and vision and other systems, with business processes cloud platform we are going to be structuring all examination information [ ETS ] differently behind scenes than we are today so that we can really use machine learning and that capabilities that are there today to analyze that data. Right now all information is captured in PDF's and RAD. So, that's key point of our business process modernization initiative to get all data into format to capture into format in original sense to create it in format where it is super accessible structured and we can do that kind of analysis so, yes, is the short answer to the question that's big, piece of a bigger goal effort anything you want to add to that. 1861643834953112:20:49:13 >> RaeAnn: What I was going to answer there is cost benefit to everything we track. And we made a conscious decision to track the items that are not correctable in normal course of business, MERBO subset of supervisory recommendations. There is cost associated with tracking things and in the systems that we had highly manual, we have high error rate or high p potential for error rate on something that is lower risks type of output. 1871643834990648:20:49:50 Look rg forward to what Doreen's mentioning end to end system we have recently undergone audit on vision and they have findings on things that require manual entry. So, every additional thing that we add and I know you guys especially case managers are stressed as we do add things and then we change them just creates additional opportunity for error. So we do do cost benefit when deciding under current methodology. 1881643835026220:20:50:26 >> Doreen: Another question related to large bank continuous exam program asks for guidance on hybrid option for continuous program you want to address. 1891643835038388:20:50:38 >> RaeANN: I sure will I couldn't characterize it as hybrid at all, we have risk focused examination process. Just look at is this way at point and time examination process you've got you know say run of the mill if there is such a thing community bank well run. It's done in week and a half, two weeks whatever sort of going rate is, if you will. Versus institution that's three rated or four rated same size. 1901643835072176:20:51:12 So, we have risk-focused examination process regardless. So, I don't think there's a third group or third program hybrid, it's an extension of our risk focusing. So, imagine a smaller bank or large bank that's less complex, say, or a bank that traditionally wasn't considered large bank wasn't over 10 billion dollar threshold. 1911643835105198:20:51:45 Very risk on in its business model. That's kinds of what we're talking about in risk ksh focus approach. You wouldn't have team of 30 like we do at true ift, you wouldn't have full, of deliverables on something like that, but you would have something more than traditional two to six week point in time examination on something like that. But I wouldn't call it hybrid, I would call it extension of our risk ksh focused examination procedures. 1921643835137952:20:52:17 >> Doreen: Thanks RaeAnn. I'll address the net question anything being done with state agencies to ex pa tied processing time on examination with comment that state delays are inflating processing time and we have no control over it. But criticized for delays. This is something I'd ask you to raise your regional management and I will say though that we certainly have heard about few states a around the country that are really and pretty extreme stress right now in terms of staffing of their prals. 1931643835181132:20:53:01 To the extent that that's happening, we want to [ programs ] a sit, we have obl particularly where states can't meet their examination obl gargss under the alternating examination program, the statutory responsibility remains with us to complete the examination. So, if a state can't you know do what meet their half of the examination schedule, we need to step in and do it. 1941643835208300:20:53:28 To the extent that we've had states that had trouble processing reports of examination in the past, we've agreed in cases that FDIC would do processing on joint reports. So there are options for addressing that. But especially where states have challenges not being tilely with examination findings cause examination findings are best if they are tilely. We have ways to work through that. So please do talk to management about it. 1951643835236524:20:53:56 And then there's comment on question asking about status and timeline of business process modernization programs, and maybe John I'll let you back to assist with this and RaeAnn we'll have kick off of the program. We are still in planning, we've been planning for a long time. And I would say to you that that's the hallmark of IT program that's going to be successful is really good up front planning and doing all of that work that needs to be done to understand exactly what it is we're going to do. We have recently staffed a program Amy is our corporate expert that's leading as the product owner for RMS. CIO staffed up a team has product manager. Project manager. And number of other positions dedicated to program. I think, John we still have some positions that we are in process of filling. 1961643835303136:20:55:03 >> John: Sure, we've got CM1 team lead Amy is interviewing for always as we speak started yesterday, finish this week. Then posting out there for some more tech well positions that will su port a pro jek. So, we spent an awful lot of time thanks to folks who participated we did have staff from around the country help Amy with evident to start and document and outline business processes which will help when we get system integrated on board to start development. Foot work being done now, once we have integrated on board we'll be able to hit the ground rinning. 1971643835342640:20:55:42 >> Disor reen: Thanks. We're gearing up to develop case to take to board of directs that will be the both John I may need help both investment and the contracting authority for specific case, we got conceptual approval now comes money and the. 1981643835366236:20:56:06 >> John: Investment and business case. 1991643835368780:20:56:08 >> Doreen: Thank you money and the contract and we'll be going through number of processes to get ready for that. But we'll do something more formal to kick it off once we really are ready to hit the ground running. And when that happens, we'll be looking for help we will be looking for Subject Matter Expert folks who use ETS and vision who know it best know what needs to change, processes that work well, what is business process in discrete activity like branch ap pliz or reviewing a loan? To help with speaking to the contractors that will be doing coding. And testing it right away. These will be short busker its of activity two to three weeks, many of them. All in individual activities and it will be exciting we'll have things that we can use right after those periods of time. 2001643835433028:20:57:13 So, really looking forward to kidding that off later this year. But we'll do it informal way and give you lots of information. Down to three minutes. I was asked evidently some folks have trouble getting on I was asked to repeat initial comments about home based option. I'll do that Matthew, if you can be getting online I'll turn it over to you after thn see if you have any comments before we close out. 2011643835461236:20:57:41 What I wanted to say we did get a lot of questions ahead of time. Didn't address them today. I can't jump ahead of frequently asked questions and training that division of administration is developing. 2021643835475188:20:57:55 I did get okay to clarify couple of things. And so, what I did say is that way wanted to caution everybody to read agreement language closely make sure you understand it. 2031643835485929:20:58:05 The agreement indicates management will generally provide 24 hours notice of assignment in the offers. And we agreed to that language because we think that's generally what we can do. It says generally. I want to make make cheer it doesn't say or suggest there's rule you'll have 24 hours to get there. I think that's being interpreted not quite the way the language is wrirt 10 in the agreement. 2041643835510752:20:58:30 I want to make sure that everybody understands that if you are offered home based option you will be assigned to, would in office on regular basis regardless of where you work whether field office regional or Washington office not rarely remote work option.. So I just want you to take that into consideration there are a number of questions about people thinking about moving residence. Remember that if you are home based you are not entitled to official travel time or travel expenses when you come to the office you have to travel on your home time and expense of please take that into consideration. 2051643835549364:20:59:09 I said that we would share types of activities that we expect to bring staff to office to conduct and these will be things more effective in person like training and certain meetings, examiners will also be expected to travel to the field office from time to time to support training in the new hybrid approach to exams. 2061643835568896:20:59:28 And then also said that we would expect HBO examiners to travel to banks for examinations we did get specific question about that. So I wanted to make certain that you understood, yes, examiners will be required to travel for on site exam activities board meetings like before pandemic. And reminder that requirement for on site exam activity and RMS -- we'll expect case managers to travel por board meetings and other foyer events like director colleges keep travel regs in mind, everybody knows rules. For those that are knew to FDIC van traveled and don't know rules we're going to point to training that is available I didn't mention this earlier, we will be pointing to training that [ Indiscernible ] has available so you can understand what the rules are. 2071643835623477:21:00:23 Ask folks in your field office, they there are to help you, so, that was what I wanted to emphasize II'll turn it over to Matt to see if you had comments. 2081643835636160:21:00:36 >> Matt: Thanks, briefly I know we're running out of time, two quick things: I know people still have questions I'm receiving questions almost daily basis. We are working with management to have frequently asked questions page on that page you'll be able to submit additional questions I want to encourage everyone to continue to submit questions regarding telework policies. And I had a question for you, Doreen, real quick regarding some of the technical innovations talking about business process improvements, departure of SENO affect that role out at all. 2091643835680064:21:01:20 >> Doreen. Fl will not we are moving forward have commit toment move forward with this. Like I said, we've invested a lot of planning into this. And laid a lot of ground work and have commitment across the agency to move forward on that process, so we will absolutely do it. Thanks for gathering together questions we've asked admin ARD's to send questions we've collected quite a few. And we want to make sure that folks have information they need to make informed decision when given options. 2101643835711004:21:01:51 >> We working close. 2111643835720625:21:02:00 >> Doreen:. Thank you everybody, thanks for time, thanks for questions. We have few that we didn't get to. And we'll get to those we will share all telework questions with DOA to make sure they are covered in FAQ's and at the very least may not be individually addressed addressed by theme. And we'll get answers to other questions out as soon as we can thank you very much have a great afternoon.