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Top Stories for July 2003

Beneficial Ownership Report Filings System

Searchable database of Beneficial Ownership Reports filed with FDIC, FRB and OCC.Beneficial Ownership Reports 7/31/03
July 2003 Beige Book Issued

The FRB has published the July 21, 2003 issue of the Beige Book which contains summaries of the economic conditions in each of the twelve Federal Reserve Districts. Beige Book 7/31/03
Executive Order Adds SDNs

The President has issued an Executive Order with respect to Burma (Myanmar) that adds four new entries to the SDN list, blocks property of the government of Burma, and prohibits certain transactions. Information regarding the Executive Order has been placed on the BOL OFAC page. 7/30/03
OCC Issues Advisory Letter

The OCC has issued Advisory Letter 2003-6 to inform national banks of the withdrawal by FinCEN of Advisory Issue 27, regarding St. Vincent and the Grenadines. As a result, enhanced scrutiny with respect to transactions involving St. Vincent and the Grenadines is no longer necessary. The FinCEN action was previously reported on July 3, 2003 in BOL Top Stories. 7/30/03
Regulators Testify Regarding FCRA

Representatives of the FRB, FDIC and FTC all testified before the Senate Committee on Banking, Housing, and Urban Affairs regarding their agencies respective roles under FCRA.FRB Testimony FDIC Testimony FTC Testimony 7/30/03
July Financial Holding Company List

The FRB has issued the July list of bank holding companies that have elected to become financial holding companies or be treated as financial holding companies.FRB FHC List 7/30/03
U. S. Reserve Assets Increase

Treasury has released the U.S. reserve assets data for the week ending July 25, 2003. U.S. reserve assets totaled $81,757 million as of the end of that week, compared to $80,950 million as of the end of the prior week.International Reserve Position 7/30/03
Enron Mess Entangles Two FIs

Following the review of transactions involving Enron Corporation, J.B. Morgan Chase & Company and Citigroup, Inc., along with their respective subsidiaries, have entered into separate written agreements with the Federal Reserve to strengthen their risk management practices. In related actions, Citigroup has entered into a written agreement with the OCC; J.P. Morgan Chase agreed to pay $135 million to settle SEC allegations that it helped Enron commit fraud; and Citigroup agreed to pay $120 million to settle SEC allegations that it helped Enron and Dynegy commit fraud.J. B. Morgan Chase Agreement Citigroup FRB Agreement Citigroup OCC Agreement SEC Agreements 7/29/03
Interagency Electronic Filing System Announced

The three major bank regulators have announced a new electronic filing system that will allow faster and easier submission and public retrieval of beneficial ownership reports filed by directors, officers, and principal shareholders of publicly traded institutions.FRB OCC FDIC FIL 7/29/03
OCC Quarterly Journal Released

Read about the performance of commercial banks, peruse a collection of interpretative letters, see how bank supervision in the U. S. compares with other countries and more in the March 2003 issue of the OCC's Quarterly Journal, Volume 22,No.1. OCC Quarterly Journal 7/29/03
Counterfeit Cashier's Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Perkins State Bank, Williston, Florida. The counterfeit checks have the institution's correct routing number, but do not use the correct account number. Information regarding the checks and contact information has been placed on the BOL Alerts & Counterfeits page. 7/29/03
DNC Registry Is a Hit

As of July 28, 2003, 28.7 million telephone numbers were listed in the National Do Not Call Registry. As a side note, this shows the power of the Internet, 80% of the registrations were made online.FTC DNC Registry 7/29/03
NCUA Realignment Plan Released

NCUA released its realignment plan which provides a timeline for the agency's transition from six regional offices to five and the relocation of one office.NCUA Realignment Plan 7/29/03
FRB Issues Primary Credit Supervisory Letter

The FRB has issued supervisory letter SR-03-15 regarding the Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management recently issued by the FRB, FDIC, OCC, OTS, and NCUA. The release of the Advisory was previously reported BOL Top Stories on July 24, 2003. 7/28/03
Comptroller Says Change The Way We Combat Predatory Lending

Comptroller Hawke in a presentation before the Federalist Society expressed concern that the current approach to fighting predatory lending has resulted in making it more difficult for creditworthy subprime borrowers to obtain credit. He suggested a better approach would be to focus regulatory enforcement powers on abusive lenders, most of which are outside of the traditional banking industry.Comptroller's Speech 7/25/03
Regulators Explain Differences in Capital and Accounting Standards

The OCC, FRB, FDIC, and OTS have issued a joint annual report to Congress which describes the differences between the accounting and capital standards used by and among the agencies. This is the first joint annual report to be submitted by the agencies, previously they reported separately.Joint Annual Report 7/25/03
Unique Slogan Placed On Some Treasury Checks

Treasury has announced that in an effort fight check fraud a unique slogan, "TAX RELIEF FOR AMERICA'S FAMILIES", is printed on the bottom of the 26.3 million Child Tax Credit Advance Payment checks which will be mailed to eligible taxpayers. In addition, it was noted that the stated amount of most of the checks will be a multiple of $400. The checks will also contain the standard security features of other Treasury checks.Child Tax Credit Checks 7/25/03
Two Canadian Entities Subject of Special Alert

The FDIC has issued a Special Alert regarding two Canadian entities that may be conducting unauthorized banking activities in the United States and Canada. Financial institutions are instructed to view with extreme caution any proposed transactions involving Starlife Financial Limited, Toronto, Ontario and Allied Asset Management, Vancouver, British Columbia.FDIC SA-42-2003 7/25/03
Discount Window Interagency Guidance Issued

The FRB, FDIC, OCC, OTS and NCUA have issued guidance on the appropriate use of the Federal Reserve's new primary credit discount window program in depository institutions' liquidity risk management and contingency planning. The guidance provides background on the discount window programs, including the new primary and secondary credit programs introduced in January, 2003.FRB FDIC FDIC FIL-59-2003 OCC OTS NCUA Interagency Guidance 7/24/03
New Electronic Issue of Interpretations and Actions Available

The OCC has placed online the July 2003 issue of Interpretations and Actions containing interpretative letters, corporate decisions, approvals, enforcement actions, and CRA performance evaluations.OCC Electronic Interpretations and Actions 7/24/03
Federal Thrifts Can Ignore New Jersey Law

The OTS has determined that the recently enacted New Jersey Home Ownership Security Act is pre-empted by the federal Home Owners' Loan Act and OTS regulations. As a result, the state law does not apply to federal savings associations and their operating subsidiaries.OTS 03-22 7/24/03
Inflation Rate - Can It Drop Too Low

In a presentation before the Economics Roundtable of the University of California, FRB Governor Bernanke discussed the views of the Federal Open Market Committee regarding the current rate of inflation. He noted that earlier this year the Committee for the first time indicated it was concerned that inflation might actually fall too low. He indicated that should the funds rate approach zero, the Committee is prepared to implement nontraditional monetary policy measures.Presentation 7/24/03
Comment Deadline Approaches

The deadline for submitting a comment letter to Treasury regarding the proposal to require financial institutions to retain photocopies of the documents used to verify a customer's identity is July 31, 2003. Don't miss this opportunity to express your opinion on this important issue. For more information review this previously issued BOL Special Banker Briefing. 7/23/03
Risk Based Component Added to OCC Handbook

The "Community Bank Supervision", a booklet in the OCC's Handbook series, has been revised to include risk-based consumer compliance and asset management information. The additions provide managers with more flexibility in determining the scope and timing of supervisory activities in addition to stressing the importance of evaluating and validating the audit and internal control functions.Community Bank Supervision Appendixes 7/23/03
FDIC Enforcement Actions Released

Information regarding enforcement actions taken against fourteen banks and one individual in June, 2003 has been released by the FDIC. The actions included three cease and desist orders, two civil money penalties and four terminations of insurance. The largest civil money penalty assessed was $16,400.FDIC Enforcement Actions 7/23/03
2003 Income Data Added to CRA/HMDA Software

The FFIEC has announced CRA/HMDA date entry software containing 2003 income data is now available for download. FFIEC CRA/HMDA Software 7/23/03
Special Alerts Regarding Counterfeit and Stolen Checks

The FDIC has issued two Special Alerts regarding five official checks stolen from the RBC Centura Bank, Rocky Mount, North Carolina; counterfeit official checks drawn on the Winchester Branch of Farmers State Bank, Pittsfield, Illinois; and counterfeit cashier's checks drawn on the San Francisco Branch of Northern Trust Bank, National Association, Phoenix, Arizona; and EverTrust Bank, Everett, Washington. Information regarding the counterfeit and stolen items has been placed on the BOL Alerts & Counterfeits page. 7/23/03
International Reserve Position Declines

The Treasury Department has released U.S. reserve assets data for the weeks ending July 4, 11, and 18, 2003. The U.S. reserve assets totaled $80,950 million as of the week of July 18, 2003, compared to $81,438 million as of the end of the prior week.International Reserve Position 7-4 7-11 7-18 7/23/03
FRB Publishes July Working Papers

The FRB has published the July edition of the working papers in the Finance and Economic Discussion Series. Topics include: Tunnels and Reserves in Monetary Policy Implementation; Declining Required Reserves, Funds Rate Volatility, and Open Market Operations; Inventory Dynamics and Business Cycles: What Has Changed?; and What Did the Credit Market Expect of Argentina Default? Evidence from Default Swap Data.
Tunnels and Reserves Declining Required Reserves Inventory Dynamics What Did the Credit 7/23/03
Seven Banks Receive Outstanding CRA Rating

The OCC has released the CRA performance evaluations for eighty national banks. Seven of the banks were rated outstanding and seventy-three received a satisfactory rating. OCC CRA 7/22/03
Finance Companies Owned and Managed Receivables

The FRB has issued the G.20 owned and managed receivables report for May 2003. FRB G.20 7/22/03
OFAC Issues Civil Penalties Against Two Banks

The weekly release by OFAC of Civil Penalties Enforcement Information included two banks; one cited for violation of the OFAC Sanction Program regarding Cuba and the other for violations of both the Iran and the Kosovo Programs. The civil penalties ranged from $250 to $9,725.OFAC Civil Penalties 7/21/03
Median Interest Rate Sensitivity Stable

The OTS has released the first quarter 2003 issue of The Quarterly Review of Interest Rate Risk. The median thrift sensitivity improved slightly to 91 basis points from 93 basis points in December while the yield curve steepened.Interest Rate Risk Review 7/21/03
SAR Filing Tips

FinCEN has added a new Q & A to the Regulatory FAQs which lists resources available to aid SAR filers. The information includes instructions for filing the various SAR forms and guideance on when to file a SAR.Q & A 7/18/03
Investment Schemes Use Altered Federal Reserve Notes

The Federal Reserve has issued a Supervisory Letter regarding bogus investment schemes that utilize altered Federal Reserve Notes. The altered notes are in face amounts of $50 million or some other astronomically large amount, but some investors are still taken in. You will want to alert your investment officers and your customers about these schemes.FR SR 03-14 7/18/03
OCC States Accounting Views

The OCC has released the June 2003 edition of its Bank Accounting Advisory Series which conveys the OCC's views on various accounting topics. Advisory Series 7/18/03
OTS Issues Interest Rate Projections

OTS has issued its second quarter 2003 interest rate projections for capital plans.OTS 7/18/03
Eight Enforcement Actions Announced by OCC

The OCC has announced eight enforcement actions involving six national banks and two individuals. The actions include cease and desist orders, a civil money penalty, formal agreements and removal actions.OCC Enforcement Actions 7/17/03
HOEPA APR Reference Rates for August Released

The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in August 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 Rates H.15 Weekly Rates 7/17/03
USA PATRIOT Act Implementation Reviewed

The actions of Treasury to implement provisions of the USA PATRIOT Act were detailed in a presentation by Deputy Assistant Dawson to the Bankers' Association for Finance and Trade. He noted that efforts have been taken to minimize the compliance burden on financial institutions regarding Section 314 information requests. The majority of the requests submitted have been related to the investigation of terrorist financing cases. He also remarked that the joint rule issued by bank regulators regarding Section 326 was one of the largest, most complicated joint rules ever issued. Remarks 7/17/03
Industrial Output Declines in Second Quarter

The G.17 Second Quarter 2003 Industrial Production and Capacity Utilization report has been released by the Federal Reserve. Despite the recent gains, industrial output decreased at an annual rate of 3.2 percent in the second quarter. G.17 Report 7/17/03
SEC Publishes Proxy Process Review

The SEC has published a report of an internal review of its rules and regulations regarding the nomination and election of directors. The report notes the need to improve the existing proxy process and recommends action in two areas: improved disclosure and improved shareholder access to the director nomination process. A summary of public comments received on the subject, including those received from the American Bankers Association, was also released.SEC Report Summary of Comments 7/16/03
FOMC to be Accommodative According to Greenspan

Chairman Greenspan presented the Federal Reserve's semiannual Monetary Policy Report to Congress. He noted the Federal Open Market Committee is prepared to maintain a highly accommodative policy stance as long as necessary to promote economic performance. Improvements in measures of default risk, a decline in actual defaults, and a moderation in the pace of debt-rating downgrades have prompted a marked narrowing of credit spreads and credit default swap premiums. As a result, banks remain well-capitalized and willing lenders. Testimony Monetary Policy Report PDF ASCII 7/16/03
State Profiles Published by FDIC

The FDIC has published the Summer 2003 quarterly analysis of state economic and banking trends and aggregate financial data covering insured institutions in all 50 states, Puerto Rico and the U.S. Virgin Islands.State Profiles 7/16/03
International Finance Discussion Papers Released

The FRB has released three International Finance Discussion Papers. Titles include: Loans to Japanese Borrowers, What Happens After A Technology Shock?, and IT Investment and Hicks' Composite-Good Theorem: The U.S. Experience.Loans; Asbtract Full Report What Happens; Abstract Full Report Hick's Composite Abstract Full Report 7/16/03
Cost of Funds Reports Issued

OTS has issued the July 15, 2003 and the historical national average cost of funds ratio to OTS regulated, SAIF - insured institutions reports.July report Historical report 7/16/03
Financial Holding Company Election Released

The FRB has released the July list of those bank holding companies that have elected to become or be treated as financial holding companies for Banking Holding Company purposes. FRB Release 7/15/03
Societe Generale Assessed $11,000 by OFAC

The New York City office of Societe Generale was the only financial institution listed by OFAC on its weekly release of Civil Penalties Enforcement Information. A funds transfer in 2001, which violated the Libya Sanction Program, resulted in an $11,000 assessment.OFAC Enforcement Information 7/14/03
Regulators Seek Comments on Basel Accord and Guidance

The FRB, OCC, OTS and FDIC have issued an interagency advance notice of proposed rulemaking seeking public comment on the implementation of the New Basel Capital Accord in the United States. Comments are also sought on two drafts of interagency supervisory guidance regarding internal-ratings based systems for corporate credits and approaches for measuring operational risk. FRB PR FRB Memorandum OCC NR OCC Notice OCC Corporate IRB Guidance OCC Operational Risk Guidance 7/14/03
OTS To Hold Financial Management Seminars

The OTS will host five financial management seminars during the months of July and August in San Francisco, Dallas, Atlanta, Newark, and Chicago. The program will be of interest to auditors and financial managers with responsibility for accounting or financial reporting, risk management and internal rate risk analysis. Agenda Online Registration 7/11/03
FDIC Issues Letter to Stakeholders

The FDIC has issued its fifth letter to stakeholders which lists priorities and activities for the second quarter of 2003.FDIC FIL-58-2003 Letter 7/11/03
Korean Version of Money Smart Program Available

The FDIC has released a Korean language version of the Money Smart adult financial education curriculum. FDIC PR 7/11/03
Credit Unions Seek Latino Customers

Participants in a NCUA workshop were urged to market their services to the Latino community. The acceptance of Matricula Consular and other foreign government cards as valid IDs and the providing of extra seating and activities for children were among the ideas shared at the workshop. NCUA NR 7/11/03
Submit Your 2003 Summary of Deposits Report Online

A new electronic filing option is now available for FDIC-insured institutions that submit paper SOD surveys. A link to the online filing form has been posted on the FDIC website. You must use your User ID and PIN listed on the paper SOD form you received from the FDIC. File SOD Online 7/10/03
Treasury Proposes FCRA Amendments

Treasury Secretary Snow has proposed that the Fair Credit Reporting Act be amended to direct the FTC and bank regulators to make it easier for consumers to say no to unsolicited credit offers. In testimony regarding the renewal of FCRA before the House Committee on Financial Services, he also presented examples of ways FCRA helps fight identity theft. Testimony 7/10/03
Retention of ID Photocopies Subject of OTS Transmittal

The OTS has issued Transmittal TR-320 concerning the request by Treasury for comments regarding the retention of photocopies of identification documents utilized by institutions to verify identity pursuant to Section 326 of the USA PATRIOT Act. The comment notice was published in the Federal Register and previously reported in Top Stories on July 1, 2003. Notice 7/10/03
Special Alert Regarding Counterfeit Checks

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on the Long Beach, California, branch of California Bank & Trust, San Diego, California. Information regarding the counterfeit items has been placed on the BOL Alerts & Counterfeits page. 7/10/03
FTC Complaint Names Electronic Payment Processor

The FTC has filed a complaint in the U.S. District Court for the Western District of Texas charging Electronic Financial Group, Inc. (EFG) and its principals with providing assistance to fraudulent telemarketers seeking to drain funds from consumers' checking accounts. The defendants are charged with violating the law by processing ACH transactions for numerous fraudulent telemarketers and by engaging in the deceptive marketing of their own advance-fee debit cards.FTC Release 7/10/03
International Reserves Decline Slightly

Treasury Department has released the U.S. reserve assets data for week ending July 4, 2003. U.S. reserve assets totaled $81,112 million, compared to $81,453 million as of the end of the prior week.International Reserve Position 7/10/03
Operation Cornerstone for Financial Investigations

Department of Homeland Security Director Tom Ridge made several announcements of interest to the banking industry. DHS is launching Operation Cornerstone, a new financial investigations program that will identify vulnerabilities in financial systems through which criminals launder their illicit proceeds, bring criminals to justice and work to eliminate the vulnerabilities. The Bureau of Immigration and Customs Enforcement will run it and will share information learned from these investigations with bankers to eliminate industry-wide security gaps that could be exploited by money launderers and other criminal organizations. Plus, the Secret Service is expanding Electronic Crimes Task Forces to Cleveland, Houston, Dallas and Columbia, South Carolina. DHS Press Release Press Kit Details 7/9/03
2004 CRA File Formats and Edits Published

The FFIEC has issued the file formats to be used when sending 2004 Community Reinvestment Act data to your regulator via diskette, CD-ROM, e-mail or cartridge tape. The CRA edits are modified each year to include new data fields and enhance data quality.File Formats Edits 7/9/03
Two More to Look Out For

Be on the watch for counterfeit cashier's checks drawn on Wilson State Bank, Wilson, Texas, and counterfeit official checks drawn on International Bank of Commerce, Laredo, Texas. Information regarding these counterfeit items and more are found on our Alerts & Counterfeits page. 7/9/03
May Consumer Credit Report Shows Moderate Gains

The FRB has released the G.19 Consumer Credit Report for May 2003. In May, both revolving and non-revolving credit posted moderate gains. Consumer credit rose at an annual rate of 5 percent in May, following a 5-1/2 percent increase in April.FRB G.19 May 2003 7/9/03
Contact OFAC Online

You can avoid talking to voice mail by sending your questions to OFAC electronically. Just complete the online form on the OFAC website to submit questions or comments regarding "in process" wire-transfers. As soon as possible, you will be contacted concerning your request. Note, inquiries regarding other subjects must still be submitted by phone or mail. Information regarding this new service is posted on our OFAC page. 7/8/03
HMDA HELP Page Announced

The St. Louis FRB has created a new HMDA page which is a fabulous resource for information about the recent HMDA changes that will take effect January 1, 2004. The new page features information which supplements the existing HMDA data available on the FFIEC site. The new page has a Frequency Asked Questions section along with LAR forms, FFIEC software and practical compliance tips. We added the link to this new resource under the HMDA category on the BOL Launch Pad. Just click on HMDA Help Page. 7/8/03
New SDNs Added By OFAC

Three new individuals have been added by OFAC as SDNs. They have also been included on the listing of BALKANS entries. Information regarding the new listings has been placed on the BOL OFAC page. 7/8/03
NCUA Share Insurance Estimator Now Online

Credit Union members can now estimate the amount of insurance protection provided by the National Credit Union Share Insurance Fund by using the Estimator is found on NCUA's website.NCUA PR Insurance Estimator 7/8/03
Community Reinvestment Act Ratings Released

The FDIC has issued the July 2003 list of state nonmember banks evaluated for compliance with the Community Reinvestment Act and the evaluation ratings for the respective institutions.FDIC CRA List 7/7/03
Instructions for Reporting Trust Preferred Securities

The FRB has issued a Supervisory Letter that provides instructions on how trust preferred securities are to be reported on bank holding companies' financial statements. The Federal Reserve has become aware that Financial Accounting Standards Board Interpretation No. 46 (FIN 46) may have implications for how trust preferred securities are reported. Until changes are made to form FR Y-9C, the current instructions regarding the reporting of trust preferred securities on Schedule HC-R should continue to be followed.Supervisory Letter 03-13 7/7/03
FDIC Issues New SAR Form Reminder

The FDIC has issued FIL-56-2003 regarding the July 1 utilization date of the new SAR form. The release of the new form by FinCEN on May 2, 2003 and a BOL reminder notice on June 24, 2003 were previously posted on BOL Top Stories.7/7/03
Counterfeit Checks Alert

Instruct your tellers to watch out for cashier's checks drawn on the Los Angeles branch of OneUnited Bank, Boston, Massachusetts and cashier's checks drawn on 1st National Bank & Trust, Bradenton, Florida. They may be counterfeit. Information regarding the items has been placed on the BOL Alerts & Counterfeits page. 7/7/03
Special Alert - Unauthorized Institutions

The FDIC has issued a Special Alert regarding three institutions that may be operating unauthorized banking operations in the United States and Canada. The entities are Golden Trust Bank, Oshawa, Ontario; National Bank, Etobicoke, Ontario; and Banquedenationale Bank, Hong Kong. Any information about these entities should be forwarded to the FDIC's Special Activities Section or forwarded electronically to alert@fdic.gov.FDIC SA-36-2003 7/7/03
March 2003 UMPR Available Online

The FFIEC has placed the March 31, 2003 Uniform Bank Performance Report (UBPR) online.FFIEC PR 7/7/03
Treasury to Issue Depositary Compensation Securities

The Treasury Department has announced that it will in mid-July begin issuing non-marketable securities, called Depositary Compensation Securities, to compensate those financial institutions who serve as financial agents of the United States for essential banking services, including the collection and deposit of all Treasury receipts.Treasury PR 7/7/03
NCUA Begins Review of Regulatory Burdens

The NCUA Board has published a notice in the Federal Register of the beginning of a review of its regulations to reduce burdens imposed on federally-insured credit unions. The notice is the first in a series and regards "Applications and Reporting" and "Powers and Activities".68FR39863 (txt) 68FR39863 (pdf) 7/7/03
Proposal to Clarify NCUA Loan Participation Rule

NCUA has published in the Federal Resister a notice of a proposal to update and clarify the definitions of the terms, "credit union organization'" and `"financial organization", as used in NCUA's loan participation rule. 68FR39866 (txt) 68FR39866 (pdf) 7/7/03
Deceptive Claims of FDIC Insurance Coverage

The FDIC has issued a Special Alert concerning two entities that are falsely representing on their Web sites to potential customers that the entities are members of the FDIC. The two entities are Citi Trust Bank, Grand Cayman, Cayman Islands, and Banquedenationale Bank, Hong Kong, a Special Administrative Region of China.FDIC Special Alert SA-37-2003 7/7/03
Share Insurance Rule Amendment Proposed by NCUA

The notice of a proposal to amend its share insurance rules has been published in the Federal Register by NCUA. The amendments simplify and clarify the rules regarding how revocable trust accounts are established and insured; provide continuation of coverage following the death of a member; provide separate coverage after the merger of insured credit unions for limited periods of time; and clarify that there is coverage for Coverdell Education Savings Accounts, formerly Education IRAs.68FR39868 (txt) 68FR39868 (pdf)7/7/03
Census and HUD Data Used for CRA Released

The OCC has issued a bulletin regarding the release of the 2000 U.S. Census and the 2003 HUD estimated median family incomes for MSA and non-MSA portions of each state. The annual HUD data are used to determine borrower income levels in Community Reinvestment Act (CRA) performance evaluations.OCC Bulletin Census and HUD Median Family Income Data 7/3/03
Payday Lending Examination Guidance Issued

The FDIC has issued a guidance regarding the examination of the payday lending activities of FDIC supervised institutions. Special examination procedures will be utilized to verify and monitor an institution's performance. The guidance also instructs examiners to include in Community Reinvestment Act public evaluations an expansive discussion of the payday lending practices and strategies of the institutions. Guidelines for Payday Lending 7/3/03
FinCEN Withdrawals AML Advisory

FinCEN has announced the withdrawal of Advisory 27 regarding St. Vincent and the Grenadines. Due the adoption of new anti-money laundering laws, FinCEN has determined that the enhanced scrutiny of transactions involving St. Vincent and the Grenadines is no longer necessary. The withdrawal of the Advisory does not relieve institutions of their pre-existing and on-going obligation to report suspicious activity.FinCEN Withdrawal 7/3/03
FRB Issues Final Rule to Amend Reg Y

The amendment would permit bank holding companies to (i) take and make delivery of title to commodities underlying commodity derivative contracts on an instantaneous, pass-through basis; and (ii) enter into certain commodity derivative contracts that do not require cash settlement or specifically provide for assignment, termination, or offset prior to delivery. 68FR39807 (txt) 68FR39807 (pdf) 7/3/03
2004 HMDA File Formats and Edits Released

The FFIEC has posted the final 2004 HMDA File Formats and Edits online. The File Formats describe the required electronic format in which all institutions must submit their data. The Edits provide an explanation of errors that can result from the submission of invalid data.File Formats Edits 7/3/03
OCC Capital and Dividends Manual Revised

The OCC has updated and placed online its Capital and Dividends booklet, which is part of the Comptroller's Licensing Manual series. The revision, which replaces the 1998 version, incorporates recent policy and procedure changes regarding blank check preferred stock, innovative and hybrid capital instruments, and issuance of no par stock.OCC Capital and Dividends Manual 7/3/03
Comments Sought on Insurance of Living Trust Accounts

The FDIC has issued a FIL which requests public comments on two proposed alternative rules to clarify and simplify the regulations on the insurance coverage of living trust accounts. The first alternative is to provide coverage up to $100,000 per qualifying beneficiary named in the living trust, regardless of contingencies in the trust. The second alternative is to create a separate category of coverage for living trust accounts and to insure such accounts up to $100,000 per owner of the account. Comments on the proposals are due by August 29, 2003. The proposals were published in the Federal Register on June 30, 2003 and previously reported in BOL Top Stories.FDIC FIL-54-2003 Notice HTML PDF 7/3/03
Homeownership Counseling Examination Procedures

The OCC has issued a bulletin announcing the FFIEC Homeownership Counseling Examination Procedures. The examination objectives and procedures are described along with an examination checklist. The procedures are effective immediately. OCC Bulletin 2003-29 Exam Procedures 7/2/03
Spanish Version ARM and Home Equity Brochures

The FRB has published Spanish language versions of two of its most popular consumer brochures. The Consumer Handbook on Adjustable Rate Mortgages and What You Should Know About Home Equity Lines of Credit are available in both print and electronic form.Spanish ARM Spanish Home Equity 7/2/03
FRB Web Site Gets New Look

The FRB is in the process of reorganizing the categories on its Web site with the goal of making it more informative and easier to use. It even provides a "What's Changed " page to walk you through the new sections.FRB Home Page FRB "What's Changed" 7/2/03
Enhanced Cash Ordering Options Now Online

Take advantage of a new facility from Federal Reserve Financial Services that lets you submit batch transaction files via FedLine for the Web. It offers an efficient alternative to entering individual orders and a convenient way to generate the transaction file. Contact your local FRB Cash Representative for instructions. FRB Services FRB Cash Representative List 7/2/03
International Reserve Position Declines

The Treasury Department has released U.S. reserve assets data for the week ending June 27, 2003. U.S. reserve assets totaled $81,453 million as of the end of the week, compared to $82,350 million as of the end of the prior week.Treasury Release 7/2/03
Agricultural Finance Databook Released

The FRB has released the E.15 Agricultural Finance Databook for March and June 2003. The databook contains the amount and characteristics of farm loans made by commercial banks, selected statistics from the quarterly reports of condition of commercial banks and Reserve Bank surveys of farm credit conditions and farm land values.FRB E.15 7/2/03
June Foreign Exchange Rates Released

The G.5 June 2003 foreign exchange rates report has been released by the FRB.It shows the monthly average rates of exchange based on daily noon buying rates for cable transfers in New York City. FRB G.5 7/2/03
BancorpSouth Joins Money Smart

The FDIC announced that BancorpSouth has joined the Money Smart Alliance Program. As a partner in the program, BancorpSouth will reach low- and moderate-income individuals in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas. It will provide staff for training, classroom space and grants to community-based partners who teach the Money Smart curriculum to local citizens.FDIC Money Smart 7/2/03
Treasury Seeks Comments on Retaining Copies of CIP ID

Here is your opportunity to submit comments regarding the Section 326 final rule. They would like to know: 1.) Whether and under what circumstances financial institutions should be required to retain photocopies of identification documents relied on to verify customer identity; and, whether there are situations when the regulations should preclude reliance on certain forms of foreign government-issued identification to verify customer identity. 68FR39039 (txt) 68FR39039 (pdf) 7/1/03
FCRA Improvements Include Identity Theft Alert System

Secretary Snow has endorsed the proposed renewal and improvement of the Fair Credit Reporting Act by Congress. A national security alert system would be created to notify banks and merchants of consumers who have been victimized or are in danger of being victimized by identity theft. He also noted the national uniform standards of the Act serve consumer interests by expanding the opportunity for every consumer to access credit and financial services in addition to helping to ensure that the consumer's personal information is more accurate and secure. Speech 7/1/03
OFAC Amends Final Rule to Reflect OFAC List Changes

OFAC has issued an amended Final Rule which reflects the addition or removal of the names of individuals and entities on the OFAC List. The Final Rule, which is amended periodically, reflects the complete alphabetical listing of Blocked Persons, SDNs, SDTs, SDGTs, FTOs and SDNTs, as of June 9, 2003.Amended Final Rule 7/1/03
Final Rule Issued on Title Transfer Pass-Through of Commodities

The FRB announced approval of a final rule modifying Regulation Y. Bank holding companies engaged in permissible derivatives activities will be allowed to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis. The effective date of the final rule is August 4, 2003 Final Rule 7/1/03

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Top Stories for July 2003

Beneficial Ownership Report Filings System

July 2003 Beige Book Issued

Executive Order Adds SDNs

OCC Issues Advisory Letter

Regulators Testify Regarding FCRA

July Financial Holding Company List

U. S. Reserve Assets Increase

Enron Mess Entangles Two FIs

Interagency Electronic Filing System Announced

OCC Quarterly Journal Released

Counterfeit Cashier's Checks Special Alert

DNC Registry Is a Hit

NCUA Realignment Plan Released

FRB Issues Primary Credit Supervisory Letter

Comptroller Says Change The Way We Combat Predatory Lending

Regulators Explain Differences in Capital and Accounting Standards

Unique Slogan Placed On Some Treasury Checks

Two Canadian Entities Subject of Special Alert

Discount Window Interagency Guidance Issued

New Electronic Issue of Interpretations and Actions Available

Federal Thrifts Can Ignore New Jersey Law

Inflation Rate - Can It Drop Too Low

Comment Deadline Approaches

Risk Based Component Added to OCC Handbook

FDIC Enforcement Actions Released

2003 Income Data Added to CRA/HMDA Software

Special Alerts Regarding Counterfeit and Stolen Checks

International Reserve Position Declines

FRB Publishes July Working Papers

Seven Banks Receive Outstanding CRA Rating

Finance Companies Owned and Managed Receivables

OFAC Issues Civil Penalties Against Two Banks

Median Interest Rate Sensitivity Stable

SAR Filing Tips

Investment Schemes Use Altered Federal Reserve Notes

OCC States Accounting Views

OTS Issues Interest Rate Projections

Eight Enforcement Actions Announced by OCC

HOEPA APR Reference Rates for August Released

USA PATRIOT Act Implementation Reviewed

Industrial Output Declines in Second Quarter

SEC Publishes Proxy Process Review

FOMC to be Accommodative According to Greenspan

State Profiles Published by FDIC

International Finance Discussion Papers Released

Cost of Funds Reports Issued

Financial Holding Company Election Released

Societe Generale Assessed $11,000 by OFAC

Regulators Seek Comments on Basel Accord and Guidance

OTS To Hold Financial Management Seminars

FDIC Issues Letter to Stakeholders

Korean Version of Money Smart Program Available

Credit Unions Seek Latino Customers

Submit Your 2003 Summary of Deposits Report Online

Treasury Proposes FCRA Amendments

Retention of ID Photocopies Subject of OTS Transmittal

Special Alert Regarding Counterfeit Checks

FTC Complaint Names Electronic Payment Processor

International Reserves Decline Slightly

Operation Cornerstone for Financial Investigations

2004 CRA File Formats and Edits Published

Two More to Look Out For

May Consumer Credit Report Shows Moderate Gains

Contact OFAC Online

HMDA HELP Page Announced

New SDNs Added By OFAC

NCUA Share Insurance Estimator Now Online

Community Reinvestment Act Ratings Released

Instructions for Reporting Trust Preferred Securities

FDIC Issues New SAR Form Reminder

Counterfeit Checks Alert

Special Alert - Unauthorized Institutions

March 2003 UMPR Available Online

Treasury to Issue Depositary Compensation Securities

NCUA Begins Review of Regulatory Burdens

Proposal to Clarify NCUA Loan Participation Rule

Deceptive Claims of FDIC Insurance Coverage

Share Insurance Rule Amendment Proposed by NCUA

Census and HUD Data Used for CRA Released