Dear Mr. Astrada:
The Bank Policy Institute[1] respectfully submits this comment in opposition to the application for a national trust bank charter (the “Application”) made by Texas Global Bank & Trust Company, National Association (“Trust Bank”) on August 4, 2026, to the Office of the Comptroller of the Currency. Trust Bank will be a direct, wholly owned subsidiary of Texas Global, LLC, which is in turn a direct, wholly owned subsidiary of Dade Hollow Holdings, LLC. As we describe in detail below, we have concerns that approval of the Application would exceed the scope of the OCC’s authority under 12 U.S.C. 27(a), which limits national trust bank charters to institutions predominantly engaged in trust and fiduciary activities.
We note at the outset that the publicly available portions of the Application provide only a high-level, generic description of Trust Bank’s proposed activities and do not provide adequate information for the public to assess or provide meaningful comment on Trust Bank’s proposed activities or business plan, or for the public to consider any relevant legal or policy issues that may be presented by such activities. While the Application refers to an appended confidential business plan, which would provide helpful information, that plan is hidden from the public as part of the application process. We submitted a Freedom of Information Act request for the Application and all exhibits. As of the date of this letter, we have not received a response to our request. This lack of transparency is wholly inconsistent with the present administration’s explicit commitment to this principle.[2]
Nonetheless, based on the information made available, it appears that Trust Bank may intend to engage in activities beyond the scope of what is authorized for a national trust bank. Namely, Trust Bank may intend to engage in a general payments business. Therefore, we urge the OCC to carefully evaluate and ensure the following questions are appropriately answered and addressed before any action is taken on the Application. In particular, we recommend that the OCC:
- Confirm that Trust Bank will engage predominantly in trust and fiduciary activities within the meaning of the relevant provisions of the National Bank Act;
- Confirm that other than trust deposits,[3] Trust Bank will not hold customer funds as liabilities on its balance sheet;
- Confirm that Trust Bank will not receive, hold, or use customer funds in a custodial capacity as a means to engage in deposit-taking, payments, or lending activities;
- Confirm that Trust Bank will not accept, hold in its name, or commingle with its own accounts (including in any master account it may maintain at a Federal Reserve Bank) any trust deposits it may accept;
- Confirm that Trust Bank will maintain sufficient capital (for example, by maintaining capital on at least a one-to-one basis with any funds it places with an insured depository institution);
- Consider whether Trust Bank’s parent can adequately provide capital and liquidity support to Trust Bank; and
- Consider whether the OCC’s procedures for resolving uninsured national trust banks provided in 12 CFR Part 51 would be adequate to protect customers, consumers, and the banking system in the event of Trust Bank’s failure.
To read the full comment letter, please click here, or click on the download button below.
[1] The Bank Policy Institute is a nonpartisan public policy, research and advocacy group that represents universal banks, regional banks, and the major foreign banks doing business in the United States. The Institute produces academic research and analysis on regulatory and monetary policy topics, analyzes and comments on proposed regulations, and represents the financial services industry with respect to cybersecurity, fraud, and other information security issues.
[2] FDIC, Notice of Proposed Rulemaking, Resolution Submissions Required for Covered Insured Depository Institutions, 91 Fed. Reg. 39546 (June 30, 2026).
[3] Trust deposits must be received and maintained consistent with the limitations and requirements pursuant to 12 U.S.C. 92a and 12 CFR Part 9.
