Federal Regulators Request Banks’ Leniency for BP Oil Spill Victims

By Matt Jaffe

Jul 14, 2010 11:35am

ABC News' Matthew Jaffe reports:


Federal regulators, including the Federal Reserve and the FDIC, today asked financial institutions to go easy on victims of the BP oil spill.


In a statement released this morning, the regulators urged banks to try to help borrowers who have been affected by the disaster in the Gulf.


“Financial institutions are encouraged to work with their customers and consider measures to assist creditworthy borrowers affected by the Gulf oil spill,” the regulators said. “Such measures can help customers recover financially and be better positioned to honor their obligations. In the affected areas, these efforts can also contribute to the health of local communities and the long-term interests of institutions and their customers.”


Possible measures that banks can take to help these customers include waiving late payment charges and ATM fees, expediting loans, easing credit terms, and restructuring debt obligations in anticipation of the customers receiving funds based on claims they have filed with BP.


The regulators also stressed in the release that they are “committed” to helping banks respond to any issues that arise in the aftermath of the oil spill.


Other regulators participating in the statement along with the Fed and the FDIC included the Office of Thrift Supervision, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Conference of State Bank Supervisors.


- Matthew Jaffe


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