Top Stories for September 2004

$1 Million CMP Announced

OTS has announced that a CMP of $1 million has been imposed against the former president of Dollar Savings Bank, Newark, New Jersey. In addition, prohibition orders have been issued against the former president and a former employee.
CMP 9/30/04

FRB Check 21 FAQs

The FRB has posted on its Web page information regarding Check 21 and FAQs which cover general items, substitute checks, original checks and consumer protection. Check 21 Info; Check 21 FAQs 9/30/04

OCC Counsel Discusses New HMDA Reporting Requirements

In a presentation before the Consumer Bankers Association, OCC Chief Counsel Williams noted that the new HMDA reporting requirements present challenges, but also offer opportunities for banks to grow and enhance their business.
Speech 9/30/04

Treasury Delivers Terrorist Financing Report

Under Secretary Levey testified before the Senate banking committee regarding the 9/11 Commission report and the efforts Treasury is making to combat terrorist financing. Testimony 9/30/04

Counterfeit Cashier's Checks Special Alerts Issued

The FDIC has issued two Special Alerts regarding cashier's checks drawn on The Poca Valley Bank, Inc., Walton, West Virginia and First Collinsville Bank, Collinsville, Illinois. Information concerning the counterfeit cashier's checks has posted on the BOL Alerts & Counterfeits page. 9/29/04

New Issue Electronic Interpretations and Actions Posted

The September 2004 electronic issue of Interpretations and Actions has been posted online by the OCC.
Interpretations 9/29/04

New Grants Distributed Hamiltons Next

The distribution of the new $50 notes has begun with the new $10 note scheduled for release in the Spring of 2004.
New Notes 9/29/04

FTC Encourages Public and Private Sectors To Jointly Fight ID Theft

In testimony before a House subcommittee, the FTC noted that the cooperative efforts of law enforcement agencies and the private sector can reduce identity theft and help victims recover. Since SS numbers play a pivotal role in the crime, the FTC is studying whether it would be more effective to require consumer reporting agencies to match more data points before releasing a consumer report to a user. ID Theft Testimony 9/29/04

New OFAC Director Named

Treasury Secretary Snow has announced the naming of Robert Werner as the new Director of OFAC effective October 1, 2004.
New Director 9/29/04

September Working Papers Released

The FRB has released new working papers in both the IFDP series and the FEDS series.
IFDP; FEDS 9/29/04

FinCEN Official Testifies

FinCEN Director Fox presented both oral and written statements to the Senate Committee on Banking, Housing and Urban Affairs regarding the agency's efforts to combat money laundering in the money services and casino industries.
Written Statement; Oral Statement 9/29/04

Future Reg CC Amendments Published in FR

The FRB has issued a Final Rule regarding closing of one check processing office and information about future amendments to Appendix A of Reg CC that the Board will make in 2005 and 2006 to reflect the restructuring of other check-processing operations.
69FR57837 txt 9/28/04

Jeanne Closes National Banks

The OCC has issued a proclamation that allows national banks to close offices affected by Hurricane Jeanne.
Jeanne Closings 9/28/04

CRA Evaluations Released

The OCC has released the CRA ratings for twenty-nine national banks. Four banks were rated outstanding, twenty-four were satisfactory, one was needs to improve and none were in substantial noncompliance. CRA Evaluations 9/28/04

Comments Sought Regarding Improving Prescreen Opt-Out Notices

The FTC is seeking public comment on a proposed regulation to improve notices of consumers’ right to opt out of prescreened solicitations of pre-approved credit card and similar credit offers mailed to consumers. Comments must be submitted on or before October 28, 2004. Opt-Out Comments 9/28/04

FRFS Offers Online Check 21 Seminar

The FRFS has announced a free online Check 21 seminar that can be viewed at any time day or night from anywhere you have Net access. Check 21 Seminar 9/28/04

International Reserve Position Updated

Treasury has released the U.S. International Reserve Position for the week ending September 24, 2004.
Reserve Position 9/28/04

HSA Offers New Deposit Account Opportunities

Health Savings Accounts (HSAs), which were created as part of the Medicare reform legislation as a health benefits option for individuals, are being touted by Treasury as a great new deposit account for banks and credit unions. Treasury has created a HSA Web page and previously issued a guidance that outlines how easy it is for banks and credit unions to offer this new product. Information regarding the guidance was first posted on the December 23, 2003 BOL Top Stories. Treasury PR; HSA Web Page; HSA Guidance 9/27/04

Derivatives Volume Breaks Record

The OCC has announced that the notional amount of derivatives held by U. S. commercial banks in the second quarter increased to $81 trillion, a new record. Quarterly Derivatives Report
9/27/04

Balkans Entries Changed

OFAC has changed two Balkans entries on the SDN List. Information regarding the changes has been posted on the BOL OFAC page. 9/24/04

FRB Revises Overdraft Policy

The FRB has revised its Policy Statement on Payments System Risk (PSR) to modify the daylight overdraft measurement rules concerning interest and redemption payments on securities issued by government-sponsored enterprises (GSEs) and certain international organizations.
Policy Statement 9/24/04

Assets Reports Issued

The FRB has issued the 3.12 U.S. Reserve Assets Report and the 3.13 Foreign Official Assets Held at Federal Reserve Banks Report for July 2004. Reports 9/24/04

Fall 2004 State Profiles Posted

The FDIC has posted on its Web site the Fall 2004 State Profiles which contain banking and economic conditions for each state.
Fall 2004 Profiles 9/24/04

FDIC Announces Technology Challenges Conference

The FDIC will host on November 17, 2004 in New Orleans a conference on the business challenges that financial institutions face regarding changes in technology. Online registration is available. Conference Information; Registration 9/24/04

FRB Issues FR on Rules of Practice for Hearings

The FRB is amending its rules of practice and procedure to adjust the maximum amount, as set by statute, of each civil money penalty (CMP) within its jurisdiction to account for inflation. 69FR56929 txt 69FR56929 pdf 9/24/04

Future Reg CC Amendments Disclosed

The FRB has issued a Final Rule regarding closing of one check processing office and information about future amendments to Appendix A of Reg CC that the Board will make in 2005 and 2006 to reflect the restructuring of other check-processing operations.
Reg CC Amendments 9/23/04

Summer 2004 FR Bulletin Published

The FRB has published and posted online the Summer 2004 edition of the FR Bulletin which contains various articles of interest including: Monetary Policy Report to Congress; Summary of papers presented at the Models and Monetary Policy Conference; Credit Report Accuracy and Access to Credit; and the First Quarter 2004 Report on the Condition of the U.S. Banking Industry.
2004 Summer Bulletin 9/23/04

OCC Bulletin Regarding Institutions Of Primary ML Concern

The OCC has issued a Bulletin regarding the previous designation by Treasury of two financial institutions as " institutions of primary money laundering concern" under section 311 of the USA PATRIOT ACT. Information regarding the institutions was posted August 25, 2004 on BOL Top Stories. OCC Bulletin 9/23/04

FYI Discusses Financial Education Delivery Systems

FOMC Raises Rates

The FOMC has announced a 25 basis points increase in both the target rate for fed funds and the discount rate.
Increase 9/22/04

Counterfeit Cashiers Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit cashiers checks drawn on The First National Bank Of Syracuse, Syracuse, Kansas. Information concerning the counterfeit cashiers checks has been posted on the BOL Alerts & Counterfeits page. 9/22/04

International Reserve Position Updated

Treasury has issued an update of the U.S. International Reserve Position as of the week ending September 17, 2004.
Position 9/22/04

Minority-Owned Banks Report Released

The FRB has issued the report of Minority-Owned Banks as of June 30, 2004.
Minority-Owned Banks 9/22/04

Foreign Bank Structure And Share Data Reports Issued

The June 2004 Structure and Share Data Reports for U.S. offices of foreign banks has been issued by the FRB.
Structure And Share 9/22/04

Libyan Sanctions Terminated

An Executive Order has been signed by the President that terminates the Libyan Sanctions Regulations effective 12:01 am EDT September 21, 2004 and unblocks all property and interests in property previously blocked. Information regarding the Executive Order has been posted on the BOL OFAC page. 9/21/04

Ivan Stil Causing Delays

The Atlanta FRB has announced that all of its offices previously closed due to problems with Hurricane Ivan are now open, but some processing delays presist. Delays 9/21/04

IFD Working Papers Released

The FRB has released four working papers in the International Financial Discussion series on the following topics: PPP Rules, Macroeconomic (In)stability and Learning; Look at Me Now: The Role of Cross-Listing in Attracting U.S. Investors; Corporate Governance and the Shareholder Base; and The Performance of International Portfolios. PPP;
Look;
Governance;
Portfolios 9/21/04

CRA Comment Period Extended Published in FR

The proposed rule to extended the comment period from September 20 to October 20, 2004 on its proposed changes to CRA has been published in the FR. 69FR56175 (txt) 9/20/04

FDIC Issues FIL Regarding Rebuilding

The FDIC has issued a FIL that encourages banks to work constructively with borrowers who, because of the natural disasters, are experiencing difficulties beyond their control. The FIL also contains a series of steps which could be implemented to facilitate the rebuilding process in areas damaged by the recent hurricanes and severe storms. FIL 9/20/04

FDIC CFR Information Available Online

The FDIC has posted information on its Web site regarding the Center For Financial Research's Fall 2004 Conference and Call for 2005 Funding Proposals.CFR 9/20/04

NCUA Disaster Relief Policy Activated

NCUA has activated its disaster relief policy to assist credit unions and their members in areas where offices and homes were damaged and destroyed by wind, rain and flooding caused by Hurricane Ivan and Tropical Storm Gaston.
Disaster Relief 9/20/04

CRA Comment Period Extended

The FDIC has extended the comment period from September 20 to October 20, 2004 on its proposed changes to CRA.
Comment Period; CRA Proposal 9/17/04

October HOEPA 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 2004 will be subject to HOEPA under the APR trigger test. Use the daily or weekly 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.
Daily H. 15; Weekly H.15 9/17/04

NCUA Issues Prohibition Order

An order of prohibition for a former loan officer of the School Employees of Washington Credit Union, Spokane, Washington has been issued by NCUA.Order 9/17/04

Ivan Processing Delays Update

The FRB of Atlanta has updated the information regarding the expected check processing delays caused by Hurricane Ivan.
Update 9/17/04

OCC Encourages Banks To Work With Ivan's Victims

National banks have been encouraged by the OCC to work with customers who were affected of Hurricane Ivan.
Victims 9/17/04

July International Capital Released

Treasury has released the July 2004 International Capital Data.
International Capital 9/17/04

Z.1 Released

The FRB has released the Second Quarter 2004 Z. 1 Flow of Funds report.
Z. 1 9/17/04

Household Ratios Issued

The household debt service and financial obligation ratios for the Second Quarter 2004 have been issued by the FRB.
Household Ratios 9/17/04

Reg E PR Published in FR

Published in the FR is a proposal that would revise the official staff commentary to Reg E. The commentary interprets the requirements of Regulation E to facilitate compliance primarily by financial institutions that offer electronic fund transfer services to consumers. 69FR55996 txt 69FR55996 pdf 9/17/04

Ivan Impacts Check And Item Processing

The Federal Reserve Bank of Atlanta has released a status update of the activities of its Jacksonville, Birmingham and New Orleans branch offices as they relate to Hurricane Ivan. Processing Update 9/16/04

OTS Urges Thrifts To Protect Employees

OTS is urging thrifts in the path of Hurricane Ivan to exercise the utmost care and caution to protect the personal safety of their employees while continuing to assist their customers in need. In addition, a Guidance has been issued that authorizes thrifts to close offices at their discretion. Employees; Closings Guidance 9/16/04

Fake Internet Bank Alert

An Alert has been issued by the OCC regarding a fictitious Internet bank with a Belize address that appears to be conducting unauthorized banking activities. OCC Alert 9/16/04

OCC Enforcement Actions Announced

The OCC has announced that six enforcement actions have taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions 9/16/04

Bulletin Issued Regarding Reg Z Annual Dollar Trigger

The OCC has issued a Bulletin regarding the previously announced Reg Z annual dollar trigger for certain home mortgage loans. Information regarding the trigger was posted in theAugust 16, 2004 BOL Top stories . Bulletin

Bank Loan Quality Improves

The Federal financial institution regulators have released the Shared National Credit review that indicates the quality of large syndicated bank loans has shown marked improvement over the last year. FRB PR; OCC NR: OTS PR; FDIC PR 9/16/04

G. 17 And G.20 Reports Issued

The FRB has issued the July 2004 G. 17 Industrial Production and G. 20 Finance Companies statistical reports.
G.17; G.20 9/16/04

September 2004 FedFocus Online

The latest edition of FedFocus features articles on FedLine Advantage, Check 21 Compliance, Check Restructuring News, and New Access to Treasury Services. September 2004 FedFocus
9/16/04

Insights Addresses Remittances

The September 2004 issue of Community Development Insights has been released by the OCC and contains a discussion regarding how remittances provide a gateway to banking services for unbanked immigrants.
Insights 9/16/04

Interactive CBI Money Smart Program Now Available

The FDIC has announced the release of its Money Smart financial education curriculum in an interactive CBI format on CD-ROM.
Interactive Money Smart 9/16/04

Unacceptable Credit Card Marketing And Management Guidance Issued

The OCC has issued an AL which provides guidance to national banks on three specific credit card practices that the regulator regards as unacceptable because they may constitute unfair or deceptive acts or practices, or could otherwise expose a bank to compliance and reputation risk. Credit Card AL 9/15/04

Unauthorized Banking Alert

An Alert has been issued by the OCC regarding an entity in the District of Columbia that represents that it is a national bank, but has not been authorized to conduct banking activities. Unauthorized 9/15/04

OFAC Adds Cartel Interests

Treasury has designating as SDNTs 23 Colombian businesses and 118 individuals that were acting as fronts for the Cali drug cartel and its leaders. Information regarding these additions to the OFAC List has been posted on the BOL OFAC page. 9/15/04

Reg. E Amendments Proposed Comment Sought

The FRB has proposed amendments to Reg. E that would provide guidance regarding the rights, liabilities, and responsibilities of parties engaged in electronic check conversion transactions in addition to providing that payroll card accounts are "accounts" covered by the regulation. Comments are due November 19, 2004. Reg. E Amendments 9/14/04

September 031 And 041 Forms Online

The FFIEC has posted the September 2004 031 and 041 report forms on its Web site. 031; 041 9/14/04

FHC List Released

A list of the BHCs that have elected to be treated as a FHC by the FRB has been released.
FHC List 9/14/04

International Reserve Position Updates

Treasury has updated the U.S. International Reserve Positions for the weeks ending August 27, September 3 and September 10, 2004.
August 27; September 3, 10 9/14/04

Ivan Causes Presentment Delays

The FRB has announced that there may be check presentment delays in the Florida Keys as a result of the expected arrival of Hurricane Ivan. Presentment Delays 9/13/04

National Banks Can Close For Ivan

The OCC has advised national banks that they can close if affected by Hurricane Ivan.
Ivan Closings 9/13/04

OTS Schedules 35 CRA Exams

OTS has announced that 35 CRA examinations are scheduled for the 4th Quarter 2004.
CRA Exams 9/13/04

FDIC Warms Consumers Of Fraudulent E-Mails

The FDIC has issued a Special Alert to consumers that unknown parties have been sending fraudulent e-mails to consumers that appear to have been sent by the FDIC. The fake e-mails request the consumers to update their financial information or their account(s) may be closed. Fake E-mails 9/13/04

Sprint and AT&T To Pay For FCRA Violations

The FTC has announced that Sprint and AT&T will pay a combined penalty of nearly $1.5 million for violations of FCRA. The FTC charged that Sprint used consumers’ credit reports to deny them telephone service, and that both AT&T and Sprint placed conditions or restrictions on consumers’ service, without disclosing information required by FCRA. FCRA Penalties 9/13/04

Comptroller Hawke To Retire

Comptroller Hawke has informed the President of his intention to retire effective October 13, 2004, the expiration date of his current term. Letter To President 9/10/04

FRB Requests New Board Resolutions

The FRB has requested that all financial institutions who have established account and service relationships with the FRB to utilize new standard forms to submit by October 1, 2004 a new resolution of the board and a list of the individuals who are authorized to establish business relationships with the regulator.
Board Resolution Forms 9/10/04

Special Alerts Issued For Counterfeit Cashier's Checks

The FDIC has issued two Special Alerts regarding counterfeit cashier's checks drawn on Bank Trust, Mobile, Alabama and United Southern Bank, Umatilla, Florida. Information regarding each of the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 9/10/04

Islamic Foundation Placed On OFAC List

OFAC has announced that the U.S. branch of an Islamic foundation along with one of its directors and another foreign branch have been designated SDGTs and placed on the SDN List. Information regarding the new designations has been posted on the BOL OFAC page. 9/10/04

FEDS Working Papers Released

The FRB has released two working papers in the FEDS series with the following titles: Convenience or Necessity? Understanding the Recent Rise in Credit Card Debt and Monetary Policy Alternatives at the Zero Bound: An Empirical Assessment.
Credit Card Debt; Monetary Policy 9/10/04

OCC Issues Bulletin Regarding Median Family Income Data

The OCC has issued a Bulletin regarding the previously announced U.S. Census and 2004 HUD Estimated Median Family Income numbers. Information regarding the new data was posted August 6, 2004 on BOL Top Stories. OCC Bulletin 9/10/04

Regulators Publish Phishing Brochure

The federal financial institution regulators have jointly published a camera ready brochure regarding phishing that can be downloaded for distribution to customers to inform them of the threat to their confidential information and what them can do to protect themselves. Brochure;
FRB;
OCC; FDIC; OTS; NCUA 9/9/04

Greenspan Forecasts Decease In Budget Deficit

In testimony before the House Budget Committee, Chairman Greenspan noted that recent data indicates the nation's stalled economic expansion has gained traction and with the economy continuing to improve, the deficit is more likely to decline than to increase in the year ahead. Speech 9/9/04

September 2004 Beige Book Released

The FRB has released the latest edition of the Beige Book based on information collected prior to September 1, 2004.
Beige Book Summary;
Full Report 9/9/04

July 2004 Consumer Credit Report Issued
The G.19 Consumer Credit Report for July 2004 has been issued by the FRB. G.19 9/9/04

Savings Bonds Processing Consolidations Underway

In December 2003, Treasury announced that three of the five current processing centers for savings bonds would be closed in the near future. Additional information is now available regarding the consolidations which are expected to be completed by the fourth quarter 2005. Consolidations 9/8/04

Deposit Guidelines For Non-Imageable Checks Issued

The FRB has announced that institutions that include items in high-speed forward and return cash letters that don't meet the standard for readability will assume all Check 21 liability for losses.Non-Imageable 9/8/04

National Banks Encouraged To Work With Victims

The OCC has urged national banks to work with customers who are victims of Hurricane Frances by considering extending loan terms, restructuring obligations and easing credit terms for new loans. Victims 9/8/04

Disaster Relief Policy Activated

NCUA has activated its disaster relief policy to assist CU members who are victims of the Florida hurricanes.
Disaster Relief 9/8/04

Lending Limits Pilot Program Bulletin Issued

OTS has issued a Bulletin regarding the Lending Limits Pilot Program which has been extended for an additional three years.
Pilot Program 9/8/04

Bulletin Regarding Third Party Arrangements Issued

A Bulletin has been issued by OTS regarding business relationships with third parties.
Third Parties 9/8/04

August CRA Ratings Released

OTS has release the CRA performance evaluations for August 2004.
CRA Ratings 9/8/04

OFAC Changes SDN File Format

OFAC has announced that it has developed new automated procedures to expedite the creation of the SDN files. The new procedures have been implemented on some existing files and will be used to create free-format files the next time the SDN list is changed.
OFAC File Changes 9/7/04

Sixteen Banks Pay OFAC CMP

OFAC has announced that sixteen banks were cited for funds transfer violations of various OFAC sanctions programs and paid civil money penalties ranging from $450 to $29,000.
OFAC CMP 9/7/04

23A Exemption Granted

The FRB has issued a legal opinion regarding reasons why an exemption to the provisions of 23A and Reg W was granted to permit a bank to acquire commercial mortgage credits from an affiliate. 23A Exemption 9/7/04

Check Restructuring Dates Announced

The Federal Reserve Banks have announced the schedule for the 2005-2006 check processing restructuring resulting from the elimination of nine current check processing locations and the transfer of service to other locations.
Restructuring Schedule 9/3/04

Counterfeit Cashier's Checks Special Alerts

The FDIC has issued two Special Alerts regarding counterfeit cashier's checks drawn on The Farmers National Bank of Emlenton, Emlenton, Pennsylvania, and Lafayette State Bank, Mayo, Florida. Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 9/3/04

OCC Authorizes Emergency Bank Closings

The OCC has issued a proclamation declaring an emergency and authorizing national banks in the areas threatened by Hurricane Francis to close at their discretion. Bank Closings 9/3/04

Banks To Make SS Payments Available Early

The Florida Bankers Association and Treasury have requested Florida banks to make social security payments available early due to the expected arrival of Hurricane Frances. SS Payments 9/3/04

Bulletins Issued Regarding FFIEC IT Booklet and Loan To Deposit Ratios

The OCC has issued two Bulletins regarding the previously announced availability of a FFIEC booklet concerning IT operations and wholesale payments systems and the 2004 host state loan-to-deposit ratios. Information regarding the booklet and the ratios was posted August 27, 2004 on BOL Top Stories. IT Bulletin; Loan-To-Deposit Bulletin 9/3/04

Third Party Arrangements Guidance Issued

OTS has issued a guidance for thrifts who enter into business relationships with third parties.
Thrift Guidance 9/3/04

June Large Commercial Banks Ranking Released

The FRB has released the ranking by consolidated assets as of June 30, 2004 of commercial banks having consolidated assets of $300 million or more. Large Bank Ranking 9/3/04

New Guidelines For Fed Deposits Now In Effect

The FRB "Guidelines For Fed Deposits" became effective September 1, 2004. The guidelines are not mandatory, but reflect the FRB's preferred way of receiving cash letter deposits nationwide and are intended to foster accuracy and efficiency in handling and processing deposits. Information regarding the guidelines was initially posted on August 9, 2004 BOL Top Stories.
Guidelines 9/2/04

OCC Issues Fourth Quarter CRA Exam Schedule

The fourth quarter 2004 CRA examination schedule for national banks has been issued by the OCC. CRA Exam Schedule 9/2/04

"Primary Money Laundering Concern" FILs Issued

The FDIC has issued two FILs regarding foreign banks that have been previously designated by Treasury to be financial institutions of "primary money laundering concern" under Section 314 of the USA PATRIOT Act. Information regarding the institutions and the restrictions imposed were posted on the August 25, 2004 BOL Top Stories. FIL-101-2004; FIL-102-2004 9/2/04

Bank Of Bedrock Second Alert

The FDIC has issued a Special Alert regarding an entity that claims to be a national bank insured by the FDIC that may be conducting unauthorized financial transactions. The OCC previously issued an alert regarding the same entity.
Special Alert 9/2/04

August Foreign Exchange Rates Released

The FRB has released the G.5 Foreign Exchange Rates report for August 2004. G.5 9/2/04

Risk Management Of Tax Lien Purchases

The OCC has issued a Bulletin regarding the risk management practices it expects a national bank to exercise when purchasing tax lien certificates. Tax Lien Bulletin 9/1/04

CDR Implementation Delayed

The federal banking agencies have announced that the implementation of the new CDR system, a web-based central repository for bank financial data, will be delayed until the first or second quarter of 2005. The new system originally was scheduled to be unveiled in October 2004. FRB PR;
OCC NR;
FDIC PR 9/1/04

June Call And Thrift Report Data Online

The FDIC has posted the Call and Thrift Report data for June 30, 2004 on its Web site. June Data 9/1/04

FDIC Consumer News Summer 2004 Issue Posted

The FDIC has posted online the Summer 2004 issue of Consumer News which features articles on new strategies for bank customers in the 21st century. Consumer News 9/1/04

Updated EDIE Now Available

An updated version 2.0 of the FDIC interactive electronic deposit insurance estimator, EDIE, is now available online.
FIL; Download EDIE 9/1/04