Top Stories for September 2003

42 CRA Evaluations Released

The OCC has released the CRA evaluations for forty-two national banks. Nine were rated outstanding, thirty-two were satisfactory and one was needs to improve.OCC CRA 9/30/03

September Corporate Applications Online

The OCC has placed online the September 2003 issue of Corporate Applications which includes interpretive letters, CRA decisions, approvals, final enforcement actions and CRA evaluations. OCC Electronic Interpretations and Actions 9/30/03

NCUA Posts Latino Connection Kit

Credit unions looking for ways to reach America's largest and fastest growing minority can now access a free Latino Connection Kit posted by NCUA on the agency's website. The kit features detailed descriptions of how leading credit union organizations have succeeded in serving Latinos in their communities.Latino Connection Kit 9/30/03

FDIC Web Site Has New Look

The FDIC has redesigned its Web site. New features include: a Quick Links by User section at the top of every page; Alerts and Updates on the menu pages; and a "breadcrumb trail" on menus to help users locate where they are in the site. Users are asked to to browse the site and let the FDIC know what they think by e-mailing the web staff directly at website@fdic.gov. FDIC Web Site 9/29/03

Financial Education Opens New Markets

In a presentation before the 33rd Annual Legislative Conference of the Congressional Black Caucus, FRB Chairman Greenspan discussed the importance of financial education for consumers. He noted that many bankers participate in consumer literacy programs because they want to be recognized as good corporate citizens; however, many other bankers have realized that their activities may help them reach hard-to-serve markets such as immigrants or people without a relationship with a bank.Speech 9/29/03

FRB Written Agreement with Institutions

The FRB has announced the execution of a Written Agreement by and among United National Corporation, Sioux Falls, South Dakota; First PREMIER Bank, Sioux Falls, South Dakota; PREMIER Bankcard, Inc., Sioux Falls, South Dakota; and the Federal Reserve Bank of Minneapolis.Written Agreement 9/26/03

Community Development Investments Directory

The OCC has published the 2002 Directory of National Bank Community Development Investments which lists and summarizes national bank investments that support a public welfare purpose.Investments Directory 9/26/03

Treasury Amends FOIA and Privacy Act Regs

Treasury has published a final rule which establishes the administrative procedures that FINCEN will follow in processing FOIA requests and in implementing the Privacy Act.Final Rule 9/26/03

Violations of Sarbanes-Oxley Lead To Arrest

Thomas C. Trauger, a former Ernst & Young partner who allegedly altered and destroyed audit working papers, was arrested by FBI agents on criminal charges for obstructing investigations by both the OCC and the SEC. A criminal complaint charged Mr. Trauger with obstructing the examination of a financial institution and falsification of records in a federal investigation in violation of the Sarbanes-Oxley Act of 2002.SEC NR 9/26/03

Relationship Banking and Tying

The OCC has published a white paper which examines banks’ market power and economic performance for evidence of tying, discusses the market competitiveness of diversified banking organizations, and recognizes the costs savings that can result from relationship banking.OCC Tying White Paper 9/26/03

The Financing of Terror

Treasury General Counsel Aufhauser testified before the Senate Banking, Housing and Urban Affairs Committee regarding the ways terrorists finance their activities and what is being done to address the problem.Opening Statement; Testimony 9/26/03

Thrift Activities Regulatory Handbook Updated

OTS has announced the update of the Thrift Regulatory Handbook. A new Section 221, Asset-Backed Securitizations, has been added which addresses the securitization and sale of asset pools, such as loans, leases, and credit card receivables.OTS Regulatory Handbook 9/25/03

FFIEC September Reporting Forms Online

The FFIEC has added the September 2003 009, 009a and 019 reporting forms to its Web page.009009a 019 9/25/03

NCUA Revises Business Lending Rule

NCUA has announced the issuance of revisions to the agency's member business lending rule for federally insured credit unions. NCUA NR 9/25/03

PACS Program to Be Expanded

Currently, there are 638 users representing a total of 289 depository institutions and money services businesses who use the PACS system for secure online filing of CTRs and SARs. Together, these institutions file 3.8 million CTRs and SARs annually. FinCEN has announced that it will expand the system as of October 1 to also process the MSB-SAR, SF-SAR, SARC and CTRC forms. PACS Fact Sheet   PACS Web site 9/24/03

CIP Deadline Alert

Don't forget that your CIP program must be in place and fully implemented on October 1. If you have any last minute questions, review the articles, threads and Q & As from our CIP Week. The BOL CIP Tools contain implementation pointers, sample CIP notices, writing tips, and customer identification aids. You will also find training scenarios in our CIP Training section. 9/24/03

Reg Z Changes Effective October 1

The FRB final rule revising the official Reg Z commentary which was effective April 1, becomes mandatory on October 1. The revisions, as previously reported in BOL Top Stories, cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. 9/24/03

OFAC Adds SDGTs

As reported in a BOL Special Briefing yesterday, OFAC has updated the SDN list by adding 8 individuals as SDGTs. The information regarding the new listings has been placed on the BOL OFAC page. 9/24/03

September FEDS Working Papers Published

The FRB has published four new working papers in the Finance and Economic Discussion Series. Papers with the following topics were released: Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?; Further Evidence on the Link between Finance and Growth: An International Analysis of Community Banking and Economic Performance; Modeling Aggregate Investment: A Fundamentalist Approach; and Does Mortgage Hedging Amplify Movements in Long-term Interest Rates?. Rational Expectations    Further Evidence    Modeling    Mortgage Hedging 9/24/03

Foreign Bank Structure And Share Data Report

The June 2003 Structure and Share Data for U. S. Offices of Foreign Banks report has been issued by the FRB.Structure and Data Report 9/24/03

Banks Encouraged to Assist Isabel Victims

The OCC has outlined measures to assist national banks and their customers affected by Hurricane Isabel.OCC NR 9/24/03

Final 2nd Quarter Interest Rate Risk Measures

OTS has released the final Second Quarter 2003 Thrift Industry Interest Rate Risk Measures.Interest Rate Risk Measures 9/24/03

FDIC Consumer News Summer 2003 Edition

The Summer 2003 edition of the Consumer News has been published by the FDIC. What consumers need to know about

credit protection and minimum payments on credit cards are two of the many topics covered in this issue.Consumer News 9/24/03

CRA Evaluations Released

OTS has released its CRA performance evaluations for July and August.CRA July    CRA August 9/23/03

Special Alert Issued by FDIC

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Wakulla Bank, Tallahassee, Florida and counterfeit checks drawn on Commonwealth Co-operative Bank, Boston, Massachusetts payable through Fleet Bank, Boston, Massachusetts. Information regarding the counterfeit checks, in addition to contact information, has been placed on the BOL Alerts & Counterfeits page. 9/23/03

Regulators Speak to ABA Conference

FDIC Chairman Powell and Comptroller Hawke made presentations regarding new regulations and the challenges facing the banking industry to the attendees at the ABA Conference in Hawaii.FDIC    OCC 9/23/03

Electronic Filing of Ownership Reports

The OCC is issuing an interim rule, with a request for comments, to amend rules, policies, and procedures to require the electronic filing of beneficial ownership reports by officers, directors, and major shareholders of national banks that have equity securities registered under the Securities Exchange Act of 1934 (registered national banks). 68FR54981 (txt) 68FR54981 (pdf) 9/22/03

Same Day Tax Information Via FedMail

Effective immediately, FRB Financial Services is offering a new daily tax transaction report available through the FedMail® email delivery service. FRB Services Sameday 9/22/03

Treasury Agrees with Section 326 Comments

Treasury has announced that it agrees with the majority of the 34,000 comments received in response to the notice of inquiry issued in July regarding possible changes to Section 326 of the USA PATRIOT Act. The notice of inquiry sought comment on two specific issues: (1) whether financial institutions should be required to retain photocopies of identification documents used to verify customers’ identities; and (2) whether financial institutions should be prohibited from accepting foreign government issued identification documents other than passports as an acceptable form of identification. Treasury PR 68FR55335 (txt) 68FR55335 (pdf)9/19/03

October HOEPA APR Reference Rates

The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in October will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application.H. 15 Daily RatesH. 15 Weekly Rates 9/19/03

Assistance to Victims of Isabel

The OTS has announced steps thrifts could take to assist their customers in the areas affected by Hurricane Isabel. Suggested assistance ranges from temporarily waiving late payment charges and early withdrawal of savings penalties to restructuring borrowers’ debt obligations by altering or adjusting payment terms.OTS Isabel Assistance 9/19/03

Term Investment Option Auction Results

Treasury has released the results of the Tax and Loan Investment Program Term Investment Option auction held September 18, 2003.Action Results 9/19/03

Bank Offices May Close Due to Isabel

The OCC has issued a proclamation allowing national bank offices affected by Hurricane Isabel to close at their discretion.OCC Proclamation 9/18/03

Enforcement Actions Announced

The OCC has announced six new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Indiana, Arkansas, Missouri, Pennsylvania, and Oklahoma. OCC NR 9/18/03

Four International Finance Papers Released

The FRB has released four International Finance Discussion papers. Topics include: Revisiting the Border: An Assessment of the Law of One Price Using Very Disaggregated Consumer Price Data; News or Noise? An Analysis of Brazilian GDP Announcements; Contagion: An Empirical Test; and How do Canadian Hours Worked Respond to a Technology Shock? Revisiting    News    Contagion   Canadian Hours 9/18/03

FYI Evaluates Consumer Lending

The FDIC has placed a new edition of FYI online. This issue of the electronic bulletin features an article evaluating the consumer lending revolution.FDIC FYI 9/18/03

OTS September 2003 FRB Online

OTS has placed the September 2003 edition of the Financial Reporting Bulletin on its website. Articles covering Third Quarter Deadlines and the September 2003 TFR Instruction Manual Updates are included in the issue.OTS FRB 9/17/03

Special Alerts Issued by FDIC

The FDIC has issued a Special Alerts regarding cashier's checks drawn on Inwood National Bank, Dallas, Texas, which were lost in transit from its printing company; counterfeit cashier's checks drawn on Bank of Lincolnwood, Lincolnwood, Illinois; and counterfeit money orders drawn on First United Bank, Crete, Illinois. Information regarding the missing and counterfeit items in addition to contact information has been placed on the BOL Alerts & Counterfeits page. 9/17/03

SEC and NY AG Charge BOA Broker

The SEC and the New York State Attorney General have announced that state criminal and federal civil charges have been filed against a Bank of America (BOA) broker for his role in a scheme involving unlawful trading of mutual funds.Broker Charged 9/17/03

Fed Funds Rate Target Released

The Federal Open Market Committee has announced the target for the federal funds rate. FRB PR 9/17/03

G.17 Report Issued

The FRB has issued the September 15, 2003 Industrial Production and Capacity Utilization Report.FRB G.17 9/16/03

Basel Accord Discussed in FRB Bulletin

The September 2003 FRB Bulletin contains an article regarding capital standards for banks and the evolving Basel Accord.FRB Bulletin 9/16/03

Cost of Funds Reports Released

The OTS has released the historical and current reports regarding the cost of funds for OTS regulated SAIF insured institutions.Historical Report    Current Report 9/16/03

Term Investment Option Auction Results

Treasury has released the results of the Tax and Loan Investment Program Term Investment Option auction held September 15, 2003.Auction Results 9/16/03

Risk Based Capital Interim Rule and NPR

The financial regulators have requested public comment on an interim final rule and issued a notice of proposed rulemaking to amend their risk-based capital standards for the treatment of assets in asset-backed commercial paper programs consolidated under the recently issued FIN 46.Interim Rule   NPR    FRB NR    OCC NR    OTS NR    FDIC PR 9/15/03

OFAC CMP To Be Released Monthly

OFAC has announced that it will post certain civil penalties information on the agency's website on the first Friday of each month. The next publication date will be October 3, 2003. OFAC CMP 9/15/03

OCC Issues Phishing Alert

The OCC has issued an alert regarding unsolicited e-mails directing consumers to a phony "customer service" Web site or directly asking for customer information. This increasingly common Internet fraud is called "phishing." Banks are encouraged to educate their customers, strengthen monitoring systems, and enhance response programs to reduce the risk to their organizations and customers. OCC Alert 9/15/03

2002 Corporate Medium-Term Notes Report

The FRB has released the 2002 corporate medium-term notes report. Corporate Notes Report 9/15/03

Derivatives Volume Surpasses $65 Trillion

The OCC has issued its quarterly Bank Derivatives Report which indicates that derivatives held by U. S. commercial banks increased $4.4 trillion in the second quarter to $65.8 trillion.  Derivatives Report 9/15/03

Cease and Desist Order Involving BSA

The FRB has announced the issuance of a Cease and Desist Order against a former senior vice president, chief financial officer, and cashier of the Premier Bank, Denver, Colorado, addressing his compliance with the Bank Secrecy Act.Cease and Desist Order 9/12/03

NCUA Prohibition Orders Issued

NCUA has announced the issuance of prohibition orders against four former officers and employees of credit unions in California and Massachuettes. NCUA NR 9/12/03

SEC Amends Rules and Proposes Changes

The SEC has adopted amendments to its rules dealing with custody of client assets; proposed a rule that would provide foreign banks meeting certain conditions with exemption from insider loan prohibitions; and voted to propose changes to Form F-6 with regard to registration of certain unsponsored American depositary receipts (ADRs).SEC PR 9/12/03

International Reserve Position

Treasury has issued the U. S. International reserve position for the week ending September 5, 2003.Reserve Position 9/12/03

War on Terrorism Progress Report

A report on the progress in the war on terrorism financing has been issued by Treasury. Since September 11, 2001, 1439 accounts containing more than $13.7 million in assets has been frozen worldwide.Progress Report 9/12/03

Revision to OFAC Civil Penalties Regulations

OFAC is issuing an interim final rule to provide revisions to its civil penalties regulations promulgated pursuant to the Trading with the Enemy Act. These revisions consolidate substantive changes to the Foreign Assets Control Regulations, and the Cuban Assets Control Regulations, in a new subpart of the Reporting and Procedures Regulations, renamed Reporting, Procedures, and Penalties Regulations. Conforming changes are made to the other parts of the regulations. 68FR53640 (txt final rule)     68FR53640 (pdf final rule) 68FR53662 (txt proposed rule)     68FR53662 (pdf proposed rule) 9/11/03

Uniform Residential Loan Application Updated

The FRB has published in the Federal Register a technical amendment to Regulation B (Equal Credit Opportunity). The amendment updates the model application form ``Uniform Residential Loan Application". 68FR53491 (txt) 68FR53491 (pdf) 9/11/03

FRB Interpretations Regarding 23A

The FRB has released five legal interpretations regarding grants of exemptions from the quantitative limits of section 23A of the Federal Reserve Act, 12 U.S.C. 371c. Feb. 14, 2003    March 1, 2002    June 19, 2002    February 27, 2003    August 14, 2003    9/11/03

Credit Quality Stabilizes

The quality of large syndicated bank loans stabilized this year, according to the Shared National Credit (SNC)1 review released by federal bank regulators. FRB PR    OCC PR    OTS PR    FDIC PR 9/11/03

Get the Scoop on the New Currency

The first newly redesigned Series-2004 $20 notes, featuring background colors and improved security features, will be issued October 9. Read Series-2004 $20 Bills to be Issued in October. 9/10/03

Z. 1 Flow of Funds Report Released

The FRB has released the second quarter 2003 Z.1 Flow of Funds Accounts of the United States.Z. 1 9/10/03

Banks Face New Challenges

The FDIC has issued the fall 2003 edition of the FDIC Outlook which states the faster economic growth in the second half of 2003 could pose new challenges for banking and thrift institutions, particularly those that specialize in mortgage lending.FDIC Outlook 9/10/03

Reg F Final Rule Issued

The FRB has adopted final, technical amendments to its Regulation F that remove an obsolete section of the rule and correct severaltypographical errors. 68FR53283 (txt)68FR53283 (pdf)9/10/03

FRB Application Information Available Online

An online guide for U.S. and foreign banking organizations submitting applications to the Federal Reserve has been added to the FRB public web site. FRB SR 03-16 Applications Information 9/9/03

FDIC Announces CRA Evaluations

The FDIC has issued the September list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in June 2003. CRA Evaluations 9/9/03

OTS Audit Requirements Final Rule

OTS has adopted a final rule that amends the annual independent audit requirements for certain savings institutions. Final Rule 9/9/03

OTS Issues Fiduciary Activities Final Rule

OTS has issued a final rule amending its regulation governing agency offices of federal savings associations. Final Rule    68FR53204 (txt)    68FR53204 (pdf) 9/9/03

Fed ACH International Services to Offer LPIs

FedACH International Services will offer limited production implementations (LPIs) of Transatlantic and Mexico services expected to begin November 3, 2003. FedACH LPIs 9/9/03

Twenty New SDGTs

OFAC has designated twenty new individuals as SDGTs. Information regarding the designations has been added to the BOL OFAC page. 9/8/03

UBPR and FFIEC Report Forms Online

The FFIEC has made available on its web site the June 30, 2003 UBPR and the September 2003 FFIEC 031 and 041 report forms.UBPRFFIEC 031 FFIEC 041 9/8/03

New MSA Questions Answered

The FFIEC has issued answers to the most common questions that have been asked regarding the June 2003 changes in MSA boundaries and terminology.FFIEC HMDA Q & As FFIEC CRA Q & As 9/8/03

U.S. International Reserve Position

The Treasury Department has released the U.S. reserve assets data for the latest week. Reserve Position 9/8/03

Comments Sought Regarding FRB Reports

The FRB has issued proposals for comment regarding the approval of extensions for three years of the Monthly Report of Traveler's Checks Outstanding (FR 2054); and the following Government Securities Dealers Reports: FR 2004A, FR 2004B, FR 2004C, FR 2004SI, FR 2004SD, and FR 2004WI.FRB Proposals 9/8/03

Subprime Lender Charged by FTC

The FTC has charged subprime lender Stewart Finance Company, its owner, and nine related companies with violating federal lending laws and has asked a U.S. District Court to immediately halt their practices and order redress for consumers who were victims.FTC PR   Complaint 9/5/03

Bond Trading Enforcement Actions

The SEC has announced enforcement actions against Goldman Sachs, Massachusetts Financial Services Company, and three individuals relating to trading based on non-public information about Treasury's decision to cease issuance of the 30-year bond.SEC PR   Goldman Sachs Order    Mass. Financial   Compliant Against Individuals 9/5/03

Charge-Off and Delinquency Rates Released

The FRB has released the quarterly report of charge-off and delinquency rates on loans and leases at commercial banks.Charge-Off Rates 9/5/03

Earnings Record Set in Second Quarter

Commercial banks and savings institutions insured by the FDIC posted record earnings in the second quarter of 2003, breaking the previous quarterly high set in the first quarter of this year.FDIC PR Quarterly Banking Profile 9/5/03

September Treasury Bulletin Available Online

The FMS has placed the September 2003 Treasury Bulletin on its web page.Treasury Bulletin 9/5/03

FTC Issues ID Theft Survey Results

The results of a survey regarding identity theft conducted by the FTC indicate over 27 million Americans have been victims of ID theft in the last five years and losses for business and consumers exceed $50 billion. Review the highlights of the survey data in a BOL article from Mary Beth Guard, "ID Theft: The Real Numbers". 9/4/03

Executive Order Blocks Iraqi Assets

President Bush has issued Executive Order 13315 blocking property of the former Iraqi Regime, its senior officials and their family members. Information regarding the Executive Order has been placed on the BOL OFAC page. 9/4/03

FDIC Enforcement Actions Announced

The FDIC has announced 18 enforcement orders. The actions include two cease-and-desist orders, four removal-and-prohibition orders, two civil money penalty orders, one termination of insurance order, seven terminations of cease-and-desist orders, and two adjudicated decisions. Enforcement Orders 9/4/03

Counterfeit Cashier's Checks

The FDIC has issued Special Alerts regarding counterfeit cashier's checks drawn on First National Bank of Abilene, Abilene, Texas and counterfeit official checks drawn on Nevada State Bank, Las Vegas, Nevada. Information concerning the counterfeit checks has been placed on the BOL Alerts & Counterfeits page. 9/4/03

OCC Bulletin Regarding Auditing Final Rule

The OCC has issued Bulletin 2003-38 regarding the joint final rule previously issued by the financial regulators concerning the removal, suspension, and debarment of accountants from performing annual audit and attestation services. Information pertaining to the final rule was published in BOL Top Stories on August 11, 2003. 9/4/03

FTC Issues ID Theft Survey Results

The results of a survey regarding identity theft conducted by the FTC indicate over 27 million Americans have been victims of ID theft in the last five years and losses for business and consumers exceed $50 billion. Review the highlights of the survey data in a BOL article from Mary Beth Guard, "ID Theft: The Real Numbers". 9/4/03

Beige Book Economic Report Released

The FRB has released the informal review by the Federal Reserve Banks of current economic conditions in their districts.Beige Book Summary   Beige Book Full Report  9/4/03

New FEDS Working Papers Available

Three new working papers in the Federal Economic and Discussion Series have issued by the FRB. The topics include: "Interest Rates as Options": Assessing the Markets' View of the Liquidity Trap; The Replacement Demand for Motor Vehicles: Evidence from the Survey of Consumer Finances; and Inflation Targets Credibility and Persistence in a Simple Sticky-Price Framework.Interest Rates  Replacement Demand   Inflation Targets 9/4/03

Four FedACH File Deliveries Per Day

FR Services has announced that starting September 19, 2003, FedACH output files will be delivered four times daily. FedACH Files 9/4/03

Minnesota Bank Enforcement Actions

The FRB has announced the execution of a Written Agreement by and between the Ridgedale State Bank, Minnetonka, Minnesota and the Federal Reserve Bank of Minneapolis and the issuance of a Cease and Desist Order against the president of the bank.Written Agreement Cease and Desist Order 9/3/03

Written Agreement Involving BSA and AML

The FRB has announced the entering into a written agreement with Gold Banc Corporation and Gold Bank of Leawood, Kansas regarding BSA, AML, information technology, customer due diligence, Reg O and Reg Y.Written Agreement 9/3/03

Regulators Release CRA Exam Schedules

The OCC and OTS have released their fourth quarter 2003 CRA examination schedules.OCC CRA Exam Schedule    OTS CRA Exam Schedule 9/3/03

Application Web Site Launched by FRB

The FRB has launched a new web site which contains general information about the types of filings required by the Federal Reserve and how they are processed.FRB Application Information 9/3/03

June 30 Call Report Data Released

The FDIC has released the June 30, 2003 call and thrift financial report data.FDIC Reports 9/3/03

TFR Filing Due Date Unchanged

The OTS has decided to not change the TFR filing date and released the March 2004 form, schedules, forms and mapping information.TFR Filing Date    March 2004 Form    2004 Schedules    2004 Forms   Mapping 9/2/03

Uncertainty and Monetary Policy

Chairman Greenspan observed in remarks presented at a FRB symposium that uncertainty was the defining characteristic of the money policy landscape. He stated conducting U. S. monetary policy involves crucial elements of risk management and devising a strategy directed at achieving price stability and sustainable economic growth. He also identified a set of key relationships that are utilized to approximate the economy's dynamics.Greenspan Remarks 9/2/03

FRB Reassigns a few Routing Symbols

The FRB is amending appendix A of Regulation CC to delete the reference to the Pittsburgh check processing office of the Federal Reserve Bank of Cleveland and reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Cleveland. 68FR52077 (txt) 68FR52077 (pdf) Correction 9/2/03