On December 17, CFPB Director Rohit Chopra, as a member of the FDIC Board of Directors, released a discussion draft outlining the FDIC’s enforcement policy on bank stock buybacks and dividends during “unusual and exigent circumstances.” The draft stressed the importance of a healthy and stable banking sector during times of stress when banks are vital credit sources. The FDIC observed that during past economic crises, such as the 2008 financial crisis and the Covid-19 pandemic, banks often continued paying dividends and engaging in share buybacks — actions that Director Chopra asserted could deplete capital and weaken banks when the economy needs them most. The draft proposed that capital distributions to shareholders during periods of established emergency lending programs would be presumed to be unsafe and unsound practices. The agency may enforce this policy through its cease-and-desist authority and potentially complement it with rulemaking under relevant statutes.