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Online EducationCompliance AllianceABA Banking Journal: FDIC’s Hill: Agency to expand nonbank participation in bidding on failed banksOctober 15, 2025
Speaking at a conference in Brussels on bank resolution, Hill said the FDIC is working on “a better-understood, competitive and nimble failed-bank marketing process” for banks in receivership. As part of that effort, the agency is revising its bidding process as the current criteria for bidder eligibility are “too restrictive when it comes to large failures.” “Today, nonbanks control substantial pools of capital that can be deployed to bid on assets of failed institutions and can be used in partnership with banks to bid on entire institutions,” Hill added. “As an example of our work in this area, the FDIC has developed a seller-financing program for nonbank bidders, to increase competition by including private equity firms and other nonbank entities in the marketing process, and thereby ultimately reduce costs to the DIF.” In addition, Hill said the FDIC has developed a pre-qualification process for nonbank bidders, with the pilot including parties who participated in the bidding process following the 2023 failures of Republic First Bank and Signature Bank, as well as other nonbank firms that have expressed interest in pre-failure loan sales. The pilot will launch in January 2026. Hill also noted that the 2023 bank failures imposed significant short-term liquidity demands on the FDIC as receiver, so the agency is taking steps to be better prepared to confront a similar situation in the future. “For example, the FDIC has engaged with the Federal Financing Bank to implement a rapid process for securitizing assets assumed from large failed IDI (insured depository institution),” he said. “These assets could include purchase money notes used to cover asset/liability mismatches of a failed IDI, or to provide leverage for asset purchases to facilitate the sale of large complex transactions.” Large bank resolution planningThe FDIC has begun work on a proposal to make amendments to the large bank resolution planning rule that, at a minimum, would codify changes made earlier this year to the agency’s FAQ on the topic, Hill said. He noted that among the changes to the FAQ was the requirement that institutions build their resolution plans around a bridge bank strategy. Instead, they must describe “the potential suitable resolution strategy or strategies that reasonably could be executed by the FDIC.” “We are also evaluating other content elements that could be adjusted or streamlined to further improve the value of these filings, and we will remain focused on what is most critical for the FDIC’s ability to successfully execute a resolution,” he said. “Finally, we will continue to consider ways to shift the [resolution] rule process towards engagement and capabilities testing, focusing on operational capabilities, and away from static plans.” ABA recommendationsAn American Bankers Association task force in August released a series of proposals for deposit insurance reform, including proposed reforms to the bank resolution process. The proposed resolution reforms are:
Back to TopABA: Stablecoins, crypto and quantum risk: Preparing the banking sector for what’s nextBanks that are best positioned will be those that learn the risks, strengthen security and support post-quantum standards.October 15, 2025 | Joshua Hubbard and Uche Obiora
According to IBM, quantum computing is advancing faster than many experts expected. Quantum computers could one day solve problems that today’s classical computers cannot, such as complex quantitative financial modeling or advanced drug discovery. IBM’s development roadmap shows that quantum systems may soon work alongside traditional technology to power real-world applications. Most banks as of today do not deal directly with cryptocurrencies such as Bitcoin or Ethereum, particularly within a bank’s commercial services operations. However, digital assets are becoming harder to ignore, as they have already been integrated in virtually every asset class, including ETFs and 401k retirement plans. One type of digital asset, stablecoins, is gaining particular importance, notably with the passage of the Genius Act in July. They are appearing more often in payments, money transfers and fintech applications. Because stablecoins link the crypto ecosystem with traditional banking, it is important for banks to understand the risks that quantum computing may introduce. How crypto is secured and why it’s at riskCryptocurrencies Bitcoin and Ethereum rely on encryption to safeguard transactions and wallets. Encryption is also used by banks and other financial institutions to safeguard information. For cryptocurrencies, there are two core security components:
ECDSA is exceedingly difficult for current classical computers to break. A classical computer cannot reverse engineer a private key from its public key given that the estimated time needed for a classical computer to solve far exceeds the age of our universe (~13.8 billion years). Quantum computing changes this. A quantum computer running Shor’s Algorithm could solve the mathematical problem behind ECDSA much faster if given the public key. However, this is limited to certain circumstances, including reused wallet addresses where the public key could be visible to the blockchain or other distributed ledgers to an attacker before a cryptographic signature can verify the transaction with correct authenticity. Shor’s algorithm, however, is not usable against attacks on SHA-256 as it does not reverse cryptographic hashes (output of encrypted plaintext) by not utilizing the same public-key infrastructure as ECDSA. This means there is urgency for banks regarding attacks against ECDSA and other private and public key-pairing algorithms. The exact time needed for full deployment is still unknown. IBM indicates that unlocking the full power of quantum computing to scale of this magnitude is estimated to be at least 2033. Google, on the other hand, projects a real breakout to occur closer to 2030. Why this matters to banksEven without direct involvement in cryptocurrencies, banks are exposed indirectly to the risk that cryptocurrencies are vulnerable to quantum computing, and this could manifest via involvement in stablecoins. Stablecoins such as USDC (coin) and USDT (Tether) connect the traditional financial system with the crypto market. These coins are pegged to the U.S. dollar and backed by real assets such as cash and short-term government bonds. They are used in cross-border payments, fintech platforms and decentralized finance systems. Deloitte warns that when quantum computers become powerful enough, they could break the encryption protecting blockchain networks. Because stablecoins operate on the same blockchains as cryptocurrencies such as Bitcoin and Ethereum, a breach could significantly erode trust in stablecoins. A loss of confidence might lead investors to question whether stablecoins are backed by adequate safe assets. Issuers might respond by holding more Treasurys or increasing transparency. Such changes could influence liquidity, interest rates and the U.S. Treasury market. These are issues that matter to banks and regulators. Customers may also look to banks for guidance on protecting digital assets and managing crypto-related risks. Institutions unprepared for these conversations could fall behind. How a quantum attack could workTo break this down in simple terms, here’s how a quantum attack on a cryptocurrency could unfold:
What banks can do nowAs stablecoin pilots and projects proliferate, here are several steps banks can consider to be ready for the potential breakout in quantum computing capability:
Quantum computing is moving from theory to reality. Once powerful enough, it could break the encryption that secures cryptocurrencies and the blockchain and other distributed ledgers on which stablecoins operate. A breach in that infrastructure would not only undermine trust in digital assets but could also affect liquidity, bank reserve ratios, interest rates and broader market stability. The potential damage from these operational risks is enough to undermine the broader financial services industry, including banks. For banks, this is not about whether they hold crypto. It is about preparing for a change that could impact customers, partners and core financial systems. Some may argue that banks will just choose to not deal transactionally in crypto at all. But with an evolving customer base with expressed interest in digital currencies, it may close doors to serving clients, businesses and everyday consumers. The best time to act is now. Learn the risks, strengthen security measures, work with trusted partners and support post-quantum standards. Banks that prepare early will be better positioned to protect trust and stability in the years ahead. Back to topABA's Nichols: Change is coming for compliance regulationOctober 14, 2025
Bankers from across the nation gathered at the conference for three days of sessions and networking on key compliance topics, ranging from anti-money laundering enforcement reform to a new law on stablecoins. Nichols kicked off the event with an overview of the policy outlook for the banking sector with respect to financial crime and compliance. “One year ago, we were caught up in what I called the regulatory tsunami, ABA had several legal challenges in play, and we were dealing with a slew of new rules and guidance that, quite frankly, were not supporting banks to serve their customers, clients and communities,” Nichols said. Today, leadership at banking agencies “fully appreciate and understand” how banks work, he said. “They understand the pain points, and they are deeply invested in creating a regulatory framework that is appropriately tailored and ensures that banks’ compliance resources are being used efficiently and effectively.” According to Nichols, bankers are ready for meaningful reform to reduce the compliance burden while ensuring they remain focused on keeping bad actors out of the financial system. Among other things, he noted efforts underway to revise currency transaction reporting, suspicious activity reporting and the customer due diligence rule. “As we continue to forge ahead with the policy objectives I just outlined, our goal is twofold — to promote safety and soundness in the banking sector while empowering banks to shift resources from low-risk customers and activities to tracking down actual illicit activity,” he said. Back to TopCISA News: Windows 10 support has ended, but here's how to get an extra year for freeWindows 10 'end of life' is official, but thanks to Extended Security Updates, you've got another 12 months to figure things out.October 15, 2025Still running Windows 10 on your PC? Did you know that as of October 14, Microsoft moved the software to its "end of life" phase? So while Windows 10 PCs will continue to work, they'll stop getting important security updates by default. The good news is you still have three options to make sure your computer remains secure:
Option three is pretty easy — and can now be done for free in many cases — so we'll focus on that one here. We'll walk you through the steps of keeping Windows 10 on your PC… for now, at least. How to sign up for Windows 10 Extended Security Updates on your computerWe can question Microsoft's motives for killing off Windows 10, even though it works perfectly well on most older PCs. But without those periodic security updates, your PC will become increasingly susceptible to malware with each passing week. To that end, enrolling in Extended Security Updates (ESU) will give you another year of using Windows 10 securely. At one point, Microsoft suggested the 12-month extension would require a $30 fee. While that's still an option, there's now a free path for Windows 10 users in the US. Here's how to make it happen. Step 1: Make sure your PC is up to dateYou can find out if your computer is up-to-date by going into your Settings > System > About, then scroll down to see what version you're running. If not, you'll want to make sure you also install all the Windows 10 updates available. Step 2: Make sure you're using an administrator accountIf you share a computer with multiple people in your household, make sure you're signed in to the administrator account. Typically, it's the first account created on the computer. You'll know it's the right one when you see "Administrator" under the name. (You can double-check under Settings > Your Info.) Step 3: Verify if your PC is eligible to upgrade to Windows 11 (or not)If you see an option to upgrade to Windows 11, just do that. It's free and it keeps you in the Windows loop. Otherwise, continue following the steps below so you can keep your computer safe with security updates. Step 4: Enroll in Extended Security UpdatesSign up for ESU by selecting Update & Security from the Settings menu. Click the "Enroll Now" sign-up link, as pictured below. Again, you may see an option to download Windows 11 if your computer meets the requirements (again, definitely do that if you see it). Step 5: Choose your upgrade methodNext up is choosing how you want to enroll, and you have a few options. The easiest way is to back up your PC settings. It's free, but it takes a little bit of time since you'll need to back up your data. Again, you'll need to use your administrator account to get started. That said, the free option here comes with two catches, at least for users in the US. (European users will get the free option with no strings attached.) The first is that you'll be linking your Windows login to Microsoft's cloud-based online service. Most users have likely already done this (if they're using CoPilot, Office 365, GamePass, OneDrive or one of Microsoft's other various online services). But if you've specifically opted for a local login to Windows, the price you're paying for this "free" extension is joining the cloud-connected Microsoft universe. The other potential issue is that the free backup only applies to the first 5 GB of storage. Anything more, and you’ll need to pay up for Microsoft's OneDrive services. But thankfully, you can turn off anything you don't want to back up by going to Settings > OneDrive and toggling off options like Documents, Pictures and Videos to get in under the free threshold to start. Once you're signed in, a window will pop up that says "Add this device to receive Extended Security Updates." Click Add Device to enroll it. Click Done. A note: Thanks to YouTube's Explaining Computers channel, where we grabbed the screenshot above (since our test PC was already signed up for cloud backups, and didn't provide the splash screen to choose options). You can watch their full video if you'd like a deeper dive into the process. That's it, you're done! (Until next year)You've got 12 more months to figure out an alternative upgrade path to Windows 11. If anything changes next year, we'll update this story with what your next steps are. Full ArticleBack to Top |
The FDIC will allow private equity firms and other nonbanks to bid on failed banks to soften the blow to the Deposit Insurance Fund after an institution’s closure, Acting FDIC Chairman Travis Hill said today. Hill also said the agency is drafting a proposal to revise its large bank resolution planning rule.
“Change is in the air” with respect to federal banking regulation, and that change has been overwhelmingly positive, American Bankers Association President and CEO Rob Nichols told attendees today at the 
This two-part workshop series is designed to help community banks establish a robust succession planning process. Participants will learn how to create a comprehensive succession plan, conduct talent assessments to identify skills gaps, and develop personalized development plans for their successors, focusing on leadership, management, and technical skills.
The Dakota School of Lending Principles, hosted by the South Dakota Bankers Association and co-sponsored by the North Dakota Bankers Association on April 7-10, 2026, in Pierre, S.D., is a learning event with one foot grounded in the classroom and one foot in the bank. This school allows students to learn the theory and process of basic lending and then put this knowledge to work in actual nuts and bolts sessions.
