Top Stories for May 2004

OCC Exclusive Visitorial Powers Upheld

The U.S. District Court for the District of Connecticut has issued an opinion in a case regarding whether a state regulator could exercise "visitorial powers" over a subsidiary of a national bank. The Court determined that the OCC's recent issuance of a Final Rule regarding the exclusive nature of federal regulator's powers was a reasonable interpretation and must be upheld. The Court reject the arguments presented by banking officials and attorneys general representing forty-three states who filed a brief in support of the Connecticut Bank Commissioner. Information regarding the Final Rule was posted January 7, 2004 in BOL Top Stories.

Court Decision;   
Other Top Stories Regarding the Final Rule January 14 and 29, 2004    February 13, 2004    March 10, 2004    April 8, 2004 5/28/04

$70 Million CMP Assessed Against Citigroup

The FRB has announced the issuance of a consent Order to Cease and Desist and an Order of Civil Money Penalty in the amount of seventy million dollars against Citigroup, Inc. and a non-banking subsidiary for alleged violations of Reg. B regarding the requirement of co-applicant signatures on loan documents and other violations of HOEPA and Reg. Z.
Order 5/28/04

May Electronic Interpretations And Actions Announced

The OCC has released the May 2004 issue of Electronic Interpretations and Actions which contains infromation regarding community development letters, corporate decisions, approvals, final enforcement actions, and CRA evaluations.
Electronic Interpretations 5/28/04

OTS Issues Final Rule

OTS has issued a Final Rule regarding holding company assessments.
Final Rule 69FR30554 (txt) 69FR30554 (pdf) 5/28/04

Participation in Group Mortgage Guaranty Reinsurance Program Authorized

A legal opinion has been issued by OTS that authorizes federal savings associations to participate directly, or indirectly, in a group mortgage guaranty reinsurance program. Opinion 5/28/04

Structure Note Holdings Examiner Guidance Issued

The FDIC has issued a FIL that provides guidance to examiners on the review of structured note holdings at FDIC-supervised institutions.
FIL-59-2004 5/28/04

Information Systems Guidance Issued

The FFIEC has issued revised guidance for examiners, financial institutions, and technology service providers on the development, acquisition, and maintenance of information systems. IS Guidance 5/28/04

First Quarter Record Earnings Reported

The FDIC has announced that FDIC-insured institutions have reported record earnings for the First Quarter 2004.
Earnings 5/28/04

QBP For First Quarter Released

The FDIC has released the Quarterly Banking Profile for First Quarter 2004.
QBP 5/28/04

FDIC Enforcement Actions Announced

The FDIC has announced thirty-six Enforcement Actions against institutions and individuals in April, 2004. The actions included: four cease-and-desist orders, six removal-and-prohibition orders, ten civil money penalty orders, thirteen terminations of insurance orders, two terminations of cease-and-desist orders, and one termination of a consent order. Enforcement Actions 5/27/04

Phishing Report Released By Treasury

Treasury has announced the release of a report regarding the prevention, detection and response to phishing schemes.
Phishing 5/27/04

Online Subscriptions Offered By FDIC

An online subscription service has been announced by the FDIC. Subscribers can select the publications that they want to receive free via email. Online Subscriptions 5/27/04

NCUA Announces Express Emails

NCUA has announced the activation of its Express email subscription service which offers expedited electronic retrieval of NCUA information. Express Email 5/27/04

Thrift Industry First Quarter Results

OTS reports that the thrift industry profitability remains strong in the First Quarter 2004.
Profitability;
Highlights;
Charts;
Selected Indicators 5/27/04

Changes Made To UPBR

The FDIC has issued an FIL regarding changes made to the UPBR peer grouping methodology and the distribution of the report.
FIL-58-2004 5/27/04

Outlook Examines Bank Earning

The Summer 2004 issue of the FDIC Outlook examines the earnings performance of FDIC-insured depository institutions in three different reports: addressing the role of net interest margin in industry earnings, the effect of higher interest rates on securities gains, and how demographic trends are affecting banks in rural areas. Outlook 5/27/04

Federal Court Reaffirms SAR Safe Harbor

The federal financial regulators have issued an Interagency Advisory regarding a recent federal court case that reaffirmed the protection from civil liability afforded financial institutions and their employees who file SARs. Interagency Advisory
FRB SR 5/26/04

Twelve Enforcement Actions Announced

The OCC has announced 12 enforcement actions against national banks and individuals who are current or former affiliates of the institutions. The actions involved banks and individuals in the District of Columbia, Nevada, Ohio, Virginia, Kansas, Illinois, Louisiana, Texas, California, and New York. Enforcement Actions 5/26/04

Counterfeit FDIC Expense Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit FDIC expense checks which are drawn on Mellon Bank, N.A., Pittsburg, Pennsylvania. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits Page. 5/26/04

FDIC Website Updates Include BSA, Analysis Report and Payment Changes

The FDIC has added information on its Web site concerning BSA and AML, the March 2004 Financial Analysis Report, and the impact on U.S. banking of payment system payments. BSA;
Analysis Report;
Payment Changes 5/26/04

Greenspan Urges Participation in Consumer Study

The FRB has announced plans to conduct a study of household finances to provide insight regarding the economic condition of American families. The study, known as the Survey of Consumer Finances, has been conducted every three years since 1983. A letter from Chairman Greenspan has been sent to approximately 10,000 households urging their participation in the study. Letter;
FRB PR 5/26/04

Storm Relief FIL Issued

The FDIC has issued a FIL announcing a series of steps to facilitate the rebuilding process in areas recently impacted by severe weather in the state of Nebraska, Kansas, Iowa, and Missouri. FDIC FIL-57-2004 5/26/04

International Reserve Position Released

Treasury has release the U.S. International Reserve Position for the week ending May 21, 2004.
International Reserve 5/26/04

$10 Million In Restitution Ordered

The OCC has ordered a Las Vegas based bank to set aside at least $10 million as restitution for customers who were charged excessive interest and opening fees on a credit card with limit of $260 which resulted in an initial available balance of $2.50. The OCC contended the practice was unfair and deceptive and violated the FTC Act. Order
5/25/04

62 CRA Ratings Released

The OCC has released the CRA ratings for sixty-two national banks. Seven banks received an outstanding rating, fifty-five were satisfactory and none were needs to improve or substantial noncompliance. CRA
5/25/04

Counterfeit Cashier's Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Florida Bank, N.A., Tampa, Florida. Information regarding the counterfeit items has been placed on the BOL Alerts & Counterfeits page.
5/25/04

Is Inflation Targeting Best-Practice Monetary Policy?

The latest International Finance Discussion paper issued by the FRB examines the inflation targeting framework and monetary policy.
Discussion Paper 5/25/04

23A Exemption Granted

The FRB has released a legal interpretation which grant the request of Citigroup, Inc. for an exemption from the provisions of 23A of the FRA and Reg W which would allow the acquisition of all the shares of an affiliate.
Exemption 5/24/04

Check 21 FIL Issued

The FDIC has issued an FIL advising institutions that they should start planning for the operational changes that will be necessary to implement Check 21.Check 21 5/24/04

OTS Issues Electronic Initiatives CEO Letter

The OTS has issued a CEO Letter regarding electronic initiatives which describes the availability and transferability of electronic information between OTS and the institutions it regulates.CEO Letter 5/24/04

Registration For FDICconnect Encouraged

The FDIC is encouraging institutions to immediately register for FDICconnect, a secure Website developed to facilitate transactions with the regulator.
Registration 5/24/04

FDIC Insurance Funds First Quarter Results

The First Quarter 2004 financial results for BIF and SAIF have been announced by the FDIC.
Results.5/24/04

FDIC SDN FIL

A FIL has been issued by the FDIC regarding previously announced entries designated as SDNs buy OFAC. Information concerning the new designations was posted May 18, 2004 on the BOL OFAC page.5/24/04

The FFIEC has updated the Technical Information section of the UBPR User's Guide. User's Guide 5/21/04

Bulletin Issued On Fact Act NPR

The OCC has issued a Bulletin concerning the previously announced NPR regarding implementation of section 411 of the Fact Act. Information regarding the NPR was posted in the April 26, 2004 BOL Top Stories. Fast Act NPR 5/21/04

Effects Of Interest Rates on MMMFs

The FDIC has published an analysis of the effects of interest rates on money market mutual funds in the latest edition of FYI. FYI 5/21/04

Check 21 Services Introduced By FRB

The FRB has announced three new services: FedForward, FedReturn, and FedReceipt, which are designed to help financial institutions take advantage of Check 21 opportunities. New Products 5/19/04

NPR Concerning BSA And Syrian Bank

FinCEN has issued pursuant to the provisions of the BSA a NPR regarding the imposition of a special measure against a Syrian Bank as financial institution of primary money laundering concern. NPR 5/19/04

Amendments to Reg CC

The FRB has announced additional amendments to Appendix A of Reg CC which reflect the restructuring of the check processing operations in the Seventh and Eight Districts. These amendments have now been published in the Federal Register. 69FR28819 (txt) 69FR28819 (pdf) 5/19/04

Comments Sought For Prescreened Study

The FRB is seeking comments to assist on a study concerning prescreened solicitations required by the FACT Act.
Study 5/19/04

Greenspan Accepts Nomination

In response to the announcement that President Bush intends to nominate Alan Greenspan as Chairman of the FRB for an additional four year term, the Chairman issued a statement indicating his willingness to serve. Statement; Announcement 5/19/04

Trends In Community Banking Subject Of FYI

The latest issue of FYI contains three new reports dealing with trends in community banking. The reports are the second installment of papers in the FDIC's Future of Banking Study. FYI 5/19/04

Uday's Business Partners Added To OFAC List

OFAC has designated six individuals and two business that were associated with Uday Saddam as SDNs. Information regarding the additions has been posted on the BOL OFAC page. 5/19/04

FRB To Study Debit Card Fees

A study will be conducted by the FRB regarding debit card fees. Comments are sought concerning the adequacy of the disclosures currently given to consumers. Debit Card Study 5/19/04

International Reserve Position Released

Treasury has released the U.S. International Reserve Position for the week ending May 14, 2004.
Reserve Position 5/19/04

FinCEN Issues Special Measure for Syria Bank

FinCEN is issuing a notice of proposed rulemaking to impose a special measure against Commercial Bank of Syria as a financial
institution of primary money laundering concern. 69FR28098 (txt) 69FR28098 (pdf) 5/18/04

Cash Letters Delayed By Plan Crash

Due to the crash of a plane transporting items between Fed offices, the FRB has given notice that some cash letters have been lost. The missing letters are being reconstructed which will cause a delay in the presentment of some items.
Cash Letters 5/18/04

Amendments To Reg CC Continue

The FRB has announced additional amendments to Appendix A of Reg CC which reflect the restructuring of the check processing operations in the Seventh and Eight Districts.
Amendments 5/18/04

Fedwire Hours Extended

The FRB has announced that beginning May 16, 2004 the operating hours of the Fedwire Funds Services have been extended to 21.5 hours per day. Fedwire 5/18/04

Hawke Reviews OCC And Banking History

In a presentation before the Conference on Credit rating and Credit Scoring, Comptroller Hawke reviewed the history of the OCC, the evolution of its examination process and changes in the banking industry.
Speech 5/18/04

Regulators Seek Comments Regarding Structured Financial Activities

The OCC, OTS, FRB, SEC, and FDIC have issued an interagency statement requesting public comments on a proposal regarding complex structured financial activities of regulated institutions.
Statement;
OCC PR;
OTS PR;
FRB PR;
SEC PR;
FDIC PR 5/17/04

Counterfeit Cashier's Check Special Alert

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on the Oceanside Bank, Jacksonville Beach, Florida, Information concerning the counterfeit items has been posted on the BOL Alerts & Counterfeits page.

FRB Enters Written Agreement With Georgia Institutions

The FRB has entered into a Written Agreement with a Georgia BHC and its subsidiary banks.
Written Agreement 5/17/04

Payroll Card System Advisory Issued

The OCC has issued an AL in response to inquiries that the OCC has received from bankers and examiners regarding supervisory expectations for payroll card systems. AL
5/17/04

FATF Mandate Renewed

The representatives of FATF's thirty-three member countries have reaffirmed their commitment to FATF it's mandate to combat money laundering and terrorist financing for an additional eight years. Mandate Renewed 5/17/04

Cost Of Funds Reports Released

OTS has release the current and historical National Cost of Funds Ratio to OTS Regulated Institutions reports
Current; Historical 5/17/04

Riggs Assessed $25 Million CMP

The OCC and FinCEN have announced that a CMP in the amount of $25 million has been assessed against Riggs Bank N.A. for numerous violations of BSA including the failure to implement an effective AML program and file SARs. The assessment is the largest CMP brought against a U.S. financial institution BSA violations. Consent Order; CMP; FinCEN 5/14/04

Largest FCRA Penalty Imposed

A debt collection firm has agreed to pay the largest penalty ever imposed by the FTC, $1.5 million, for violations of the FCRA by reporting inaccurate consumer account information to credit bureaus. FCRA Compliant; Consent Decree 5/14/04

Prohibition Orders Issued Against Former CU Officials

NCUA has announced the issuance of Orders of Prohibition against five former CU officials and employees from Texas, Wyoming, New York, and Louisiana. Orders 5/14/04

Financial Holding Company Elections Released

The FRB has released the list of bank holding companies that have elected as of May 7, 2004 to be treated as financial holding companies. Financial Holding Companies 5/14/04

FDIC Votes On Assessment Rates

The FDIC Board of Directors has voted to keep the current assessment rates for the remainder of 2004.
Assessment Rates 5/14/04

Community Banks Survival Threatened

In testimony before the House Subcommittee on Financial Institutions and Consumer Credit, FDIC Vice Chairman Reich warned that existing bank regulations may threathen the survival of community banks. Speech 5/13/04

APRWIN And APY Software Available

The OCC has updated its APRWIN and APY compliance software programs, both which can be downloaded free. Software 5/13/04

International Reserve Position Updated

The U.S. International Reserve Position for the week ending May 7, 2004 has been released by Treasury.
Reserve Position 5/13/04

Managing Risks Of New Products

The OCC has issued a bulletin which provides guidance regarding managing risks associated with new products or the expansion or modification of existing products and the regulator's expectations of management action to implement an effective risk management process. Guidance 5/12/04

$100 Million CMP Assessed

The FRB has announced the issuance of a civil money penalty in the amount of $100 Million against UBS, AG, Zurich, Switzerland for violations of OFAC program sanctions. $100 Million 5/11/04

C & D Against BHC and Sole Shareholder

A Cease and Desist Order has been issued by the FRB against CAB Holdings, LLC, Wilmington, Delaware and its sole shareholder.
C & D 5/11/04

SDGTs FIL

The FDIC has issued a FIL regarding previously announced SDGT additions to the OFAC SDN list. Information concerning the additions was placed May 6, 2004 on the BOL OFAC page. 5/11/04

Reg CC Appendix Amended

Amendments to Appendix A of Reg CC resulting from the restructuring of check processing operations in the Eleventh District have now been published in the Federal Register. 69FR25826 (txt)
69FR25826 (pdf) 5/10/04

Six FIs Penalized By OFAC

The OFAC Civil Penalties Enforcement Information list for May 2004 contained six financial Institutions cited for violations of the Cuban, Sudan, Iran, and Kosovo sanctions programs with penalties ranging from $850 to over $25,000.
Civil Penalties 5/10/04

SAR Report Published

FinCEN has published the May 2004 issue of The SAR Activity Review - By the Numbers which contains data from SARs filed from April 1996 to December 2003. SAR Review 5/10/04

Senior Loan Officer Opinion Survey Results

The FRB has announced the results of the April 2004 Senior Loan Officer Opinion Survey on Bank Lending Practices.
Survey Results 5/10/04

CU Closed

NCUA has announced the placing of the Dallas Educators Federal Credit Union of Selma, Ala. into liquidation and the issuance to checks to members as their account are verified. Closing 5/10/04

G.19 Consumer Credit Report Issued

The March 2004 G.19 Consumer Credit Statistical Release has been issued by the FRB.
G.19 5/10/04

Household Debt Service Burden Announced

The FRB has released the household debt service and financial obligations ratios for the 4th Quarter 2003.
Household Ratios 5/10/04

OCC Bulletin Regarding Reg. Z

The OCC has issued a bulletin regarding the previously announced revisions of Reg. Z and its official commentary. Information concerning the revisions and the commentary was included in the March 31, 2004 BOL Top Stories. 5/10/04

OFAC Additions FIL Issued

A FIL has been issued by the FDIC regarding previously announced additions to the OFAC list of SDNs. Information regarding the additions was posted April 30, 2004 on the BOL OFAC page. 5/10/04

Credit Card Fee Income Guidance Issued

Treasury and the IRS have issued guidance on the timing of income recognition of credit card annual fees and late fees.
Fee Income 5/7/04

NPR Regarding Trust Preferred Securities and Tier 1

The FRB has issued a NPR that would retain trust preferred securities in the tier 1 capital of BHCs. The comment deadline is July 11, 2004.  NPR 5/7/04

Greenspan On Globalization

Chairman Greenspan noted in a presentation before the Conference on Bank Structure and Competition that global and technological innovations will be among the most significant developments affecting banking in the next decades. He also remarked that protectionism could significantly erode global flexibility and undermine the global adjustment process. Speech 5/7/04

Terrorist Financing Report Published

FATF has published its 2003-2004 Money Laundering and Terrorist Financing Typologies report which contains case studies of terrorist financing activities. ML Report 5/7/04

New SDGTs Added to OFAC List

OFAC has added three new SDGTs to the SDN list. Information regarding the additions has been posted on the BOL OFAC page. 5/7/04

CRA Exam Results Announced

The FDIC has announced the ratings assigned to banks examined for CRA compliance in February 2004.
CRA Ratings 5/6/04

OCC Licensing Manual Revised

The OCC has announced the revision of the "Conversions" booklet of the Comptroller's Licensing Manual to incorporate recent policy and procedure changes. Conversions 5/6/04

International Reserve Position Updated

Treasured has issued the U.S. International Reserve Position for the week ending April 30, 2004.
International Reserve 5/6/04

Quarterly Refunding Statement Issued

Treasury has issued the May 2004 Quarterly Refunding Statement.
Refunding 5/6/04

FRB Publishes Eleven Working Papers

The FRB has published eleven new working papers in the International Finance Discussion series.
Working Papers 5/6/04

Burmese Banks Bulletin Issued By OCC

The OCC has issued a Bulletin regarding the special measure previously imposed by FinCEN against Burma (Myanmar) and two Burmese banks. Information concerning the final rules issued by FinCEN under the provisions of the USA PATRIOT Act was posted in the April 12, 2004 BOL Top Stories. 5/6/04

Reg CC Appendix Amended

The FRB has announced amendments to Appendix A of Reg CC resulting from the restructuring of check processing operations in the Eleventh District. Amendments
5/5/04

Fed Funds Target Rate Announced

The FOMC has announced its target for the federal funds rate. Target Rate 5/5/04

UBPR User's Guide Updated

The FFIEC has updated the UBPR User's Guide.
UBPR User's Guide 5/4/04

Special Measures Imposed Against Burmese Banks

The FRB has issued a SR Letter regarding special measure previously imposed by FinCEN against Burma (Myanmar) and two Burmese banks. Information concerning the final rules issued by FinCEN under the provisions of the USA. PATRIOT Act was posted in the April 12, 2004 BOL Top Stories. 5/4/04

Evaluating Retail Payment Systems Guidance FIL Issued

The FDIC has issued an FIL regarding the previously announced FFIEC booklet which provides guidance on evaluating retail payment systems. Information concerning the FFIEC booklet was posted in the April 1, 2004 BOL Top Stories. 5/4/04

Marketing Financing Estimates Announced

Treasury has announced the Marketing Financing Estimates for the Second Quarter 2004.
Estimates 5/4/04

FRB Issues 90th Annual Report To Congress

The FRB has issued its 90th Annual Report to Congress.
Index;
Full Report 5/4/04

FDICSales.com Utilizes Outcry Auction

The FDIC has completed its first quarter 2004 asset sales offering by utilizing for the first time the outcry auction process.
Outcry Auction 5/4/04

FRB And Utah BHC Execute Written Agreement

The FRB has announced the execution of a Written Agreement with a Utah BHC and its subsidiary bank.
Written Agreement 5/3/04

Twenty Enforcement Actions Announced By FDIC

The FDIC has announced that twenty enforcement actions were processed in March 2004 resulting in orders concerning cease-and-desist, removal-and-prohibition, civil money penalties, and termination of insurance.
Actions 5/3/04

April 2004 Issue of Interpretations And Actions Published

The OCC has published and placed online the April 2004 issue of Interpretations And Actions.
Interpretations 5/3/04

OFAC Adds Four SDGTs

Four individuals have been added to the OFAC SDN list as SDGTs. Information regarding the new listings has been posed on the BOL OFAC page. 5/3/04