Top Stories for December 2006

Annual CRA Asset-Size Threshold Adjustments Published in FR

As required by the 2005 CRA regulatory amendments, the federal bank regulatory agencies have announced the annual adjustment to the asset-size thresholds used to define "small bank" and "intermediate small bank". 71FR78335 txt 71FR78335 pdf    12/29/06

Fraudulent and Counterfeit Checks Special Alerts Issued

The FDIC has issued seven Special Alerts regarding fraudulent and counterfeit checks bearing the names of the following institutions:

• The New Washington State Bank, New Washington, Indiana (Counterfeit Cashier's Checks);
• First Star Bank, Arlington, Texas (Fraudulent Checks);
• South Georgia Bank, Glennville, Georgia (Counterfeit Checks);
• HFS Federal Credit Union, Hilo, Hawaii (Counterfeit Cashier's Checks);
• Security State Bank, Odessa, Texas (Counterfeit Cashier's Checks);
• The Cape Cod Five Cents Savings Bank, Harwich Port, Massachusetts (Counterfeit Cashier's Checks); and
• Heritage Federal Credit Union, Newburgh, Indiana (Counterfeit Cashier's Checks).

Information concerning the fraudulent and counterfeit checks has been posted on the BOL Alerts & Counterfeits page.    12/29/06

FRB Board of Governors To Close On National Day Of Mourning

The Board of Governors of the Federal Reserve System in Washington, D.C. have announced that their office will be closed on Tuesday, January 2, 2007, in observance of the national day of mourning for former President Ford. The twelve regional Reserve Banks will be open and operating during normal business hours and will provide all financial services as usual.
Day of Mourning    12/29/06

Prohibition Order Issued

NCUA has issued an order prohibiting Christopher T. Renzo from participating in the affairs of any federally insured financial institution. The former teller of Hudson Valley Federal Credit Union was convicted of 2nd degree grand larceny, sentenced to five years of supervised probation, and ordered to pay $105,886 in restitution.
Order    12/29/06

Revocation of Banking License Special Alert

The FDIC has announced that the Financial Institutions Commission, Republic of Palau, has revoked the banking license of Pacific Savings Bank, Ltd., and placed the bank into receivership.
Special Alert    12/29/06

FDIC Publishes in FR a rule to Repeal Reports and Public Disclosure of Indebtedness of
Executive Officers and Principal Shareholders to a State Nonmember Bank and Its Correspondent Banks

The FDIC is repealing its regulations governing reporting on lending by a State nonmember bank and its correspondent banks to executive officers and principal shareholders. 71FR78337 txt 71FR78337 pdf    12/29/06

Fraudulent Checks and Counterfeit Money Orders Special Alerts

The FDIC has issued two Special Alerts regarding fraudulent official checks bearing the name of Harrison Bank, Arlington, Texas, and counterfeit money orders bearing the name of Basin State Bank, Stanford, Montana. Information concerning the fraudulent and counterfeit items has been posted on the BOL Alerts & Counterfeits page.    12/28/06

$800,000 CMPs Announced

FinCEN, the FDIC, and the Florida Office of Financial Regulation have announced the assessment of civil money penalties totaling $800,000 against Beach Bank, Miami Beach, Florida, for failing to implement an adequate anti-money laundering program and monitor the bank's high-risk accounts, which resulted in the failure to timely report suspicious activity.
FinCEN;
FDIC;
Florida    12/28/06

Annual CRA Asset-Size Threshold Adjustments Announced

As required by the 2005 CRA regulatory amendments, the federal bank regulatory agencies have announced the annual adjustment to the asset-size thresholds used to define "small bank" and "intermediate small bank".
Adjustments;
FRB PR;
FDIC PR;
OCC NR    12/28/06

FDIC Signage Final Rule

The FDIC has issued a FIL announcing the approval of the final rule amending FDIC Part 328, regarding the Advertisement of Membership. Recent amendments to the FDIC Act required the agency to prescribe an official sign that all FDIC-insured depository institutions would be required to display. New signs are available from the FDIC and must be displayed on or before November 13, 2007.
Final Rule;
FIL;
New Signs    12/28/06

Federal ID Theft Task Force Seeks Comments

Comments are being sought by the Federal Identity Theft Task Force on ways to improve the effectiveness and efficiency of federal government efforts to reduce identity theft. Additional information is available on the task force Web site.
Comments;
Web site    12/28/06

Loan Fraud and ML Reports Released

OTS has released two reports regarding assessments based upon suspicious activity report analysis of mortgage fraud and money laundering in the commercial real estate industry.
Mortgage Fraud Report;
ML Report    12/28/06

Operating Circular 4 Amended

The FRB Financial Services has announced that a technical amendment has been made to Operating Circular 4. The amendment, which is effective January 30, 2007, concerns the "Fedline Command Security and Implementation Guide" as part of the security procedures for sending banks.
Amendment

Five Names Removed From OFAC List

OFAC has removed from the SDN List the names of five individuals who had been previously designated as SDNTs. Information regarding the deleted names has been posted on the BOL OFAC page.

December Call Report FIL Issued

A FIL has been issued by the FDIC regarding the December 31, 2006 Call Report deadlines, current filing information, and elimination of certain previously required report information.
FIL

ARM Consumer Handbook Revised

The Consumer Handbook on Adjustable-Rate Mortgages (ARM) has been revised.
ARM Handbook

Third Quarter DSR and FOR Data Released

The FRB has released the household debt service (DSR) and financial obligations (FOR) ratios for the third quarter 2006.
Ratios

Interagency Capital Notice Published

The bank regulators have published proposed revisions to the existing risk-based capital framework that would apply to banks that don't use the BASEL II NPR and are extending the comment period. TXT, PDF .

Agencies Publish Proposed Capital Revisions

Proposed revisions to the existing risk-based capital framework have been published. They are intended to enhance the capital framework's risk sensitivity without unduly increasing regulatory burden. The changes would apply to banks, bank holding companies, and savings associations. TXT, PDF .

HMDA Asset Size Exemption Published

The Federal Reserve Board has published in the Federal Register the 2007 asset-size exemption threshold increase for 2007. This action amends the staff commentary for Regulation C to adjust to $36 million the asset-size exemption threshold for coverage under HMDA. TXT, PDF .

SEC and FRB Publish Bank-Related Proposals in FR

The Securities and Exchange Commission and the Federal Reserve Board have jointly published two sets of proposed rules in the Federal Register. The first would implement certain of the exceptions for banks from the definition of "broker" and would define terms used in the statutory exceptions and certain related exemptions. The second requests comment on proposed rules to implement the broker exceptions for banks relating to third-party networking arrangements, trust and fiduciary activities, sweep activities, and safekeeping activities. In addition, the SEC published an order extending the temporary exemption of banks from the definition of broker. Definitional changes: TXT, PDF ; Implementation of broker exceptions:
TXT, PDF ; Temporary Exemption Extension: TXT, PDF .

NCUA Publishes Final Rule in FR for Conversion of Insured Credit Unions to
Mutual Savings Banks

NCUA is issuing final revisions to its rules regarding the conversion of insured credit unions to mutual savings banks or mutual savings associations. The final rule
includes revised disclosures, revised voting procedures, procedures to facilitate communications among
members, and procedures for members to provide their comments to directors before the credit union board votes on a conversion plan. TXT, PDF .   12/22/06

Counterfeit Cashier's checks Special alert

A Special Alert has been issued by the FDIC regarding counterfeit cashier's checks bearing the name of The Grundy National Bank of Grundy Center (d/b/a Grundy National Bank), Grundy Center, Iowa. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.   12/22/06

SAR Filing Form Revised

FinCEN and the federal banking agencies have announced that the format for the Suspicious Activity Report by Depository Institutions (SAR-DI) has been revised to support a new joint filing initiative, which will reduce the number of duplicate SARs filed for a single suspicious transaction. The approved final form should not be filed until the actual effective implementation date of June 30, 2007. Form; FinCEN PR; FRB PR; OCC NR; FDIC PR; OTS PR; NCUA PR    12/22/06

Weather Closes Denver FRB Branch

The Denver Branch of the Federal Reserve Bank of Kansas City was closed due to weather conditions on Thursday, December 21, 2006. The Federal Reserve will grant credit availability for check deposits received by the deposit deadline. Branch Closed   12/22/06

Flood and BSA Enforcement Actions Announced

The FRB has announced CMPs in the amounts of $ 6,750 have been assessed against Planters Bank and Trust Company, Staunton, Virginia, and $4,950 have been assessed against Oregon Pacific Bank, Florence, Oregon, regarding alleged violations of the Board's Regulations implementing the National Flood Insurance Act. A written agreement was also entered into with Habib Bank Limited, Karachi, Pakistan, and the bank's branch in New York, New York, concerning BSA and anti-money laundering compliance. CMP Planters Bank; CMP Oregon Pacific Bank; Written Agreement Habib Bank   12/22/06

FDIC Enforcement Actions Announced

The FDIC has announced the list of Enforcement Decisions and Orders taken in November 2006. Enforcement Actions   12/22/06

Large-bank Deposit Insurance Proposal Comments Sought

The FDIC has issued a FIL regarding comments on whether and how the largest insured depository institutions should be required to modify their deposit systems so that the FDIC may calculate deposit insurance coverage quickly in the event of an institution's failure. FIL; Proposal   12/22/06

TIL Booklet Revised

The OCC has revised the TIL Booklet in the Comptroller's Handbook. TIL Booklet   12/22/06

OCC Announces Amendments to FCRA Examination Procedures

The OCC has issued a Bulletin that announces amendments to FCRA examination procedures which update section 604(g) of Module 2 of the interagency examination procedures and address provisions in the medical information rule. Bulletin; Amendments   12/22/06

FinCEN and SEC Sign BSA Information Sharing Agreement

FinCEN and the SEC have announced that the agencies have reached an agreement for the routine exchange of examination and enforcement information relating to SEC-regulated firms' compliance with the BSA. Agreement   12/22/06

Fall 2006 Issue of FDIC Outlook Published

The FIDC has published the Fall 2006 issue of the FDIC Outlook which contains articles on how financial innovation and information technology have widened institutions' options for funding their activities through off-balance sheet securitization structures, explore the relevance of traditional balance sheet measures of liquidity, and describe strategies banks have used to manage their net interest margins under the various yield curve environments. FDIC Outlook   12/22/06

FED Working Paper Published

A working paper in the FEDS series has been published by the FRB on the topic of "The Competitive Effects of Risk-Based Bank Capital Regulation: An Example from U.S. Mortgage Markets." Summary; Full Paper   12/22/06

Community Development Newsletter Features Minority-Owned Institutions

The OCC has published the Winter 2006/2007 edition of its Community Developments newsletter which focuses on minority-owned financial institutions and the strategies many employ to serve their niche markets. Newsletter   12/22/06

HSA Options Increased

President Bush has signed the Health Opportunity Patient Empowerment Act of 2006. New opportunities for health savings account (HSA) participants to build their funds, include: rollovers from health FSAs and HRAs into HSAs through 2011, an increase in the annual HSA contribution, full HSA contribution regardless of month individual becomes eligible, a one-time transfer from IRAs to HSAs, certain FSA coverage treated as disregarded coverage, earlier indexing of cost of living adjustments, and allowing greater employer contributions for lower-paid employees. HSA   12/21/06

Reg O Revisions Bulletin Issued

The OCC has issued a Bulletin regarding the previously announced amendments to 12 CFR 215 (Regulation O) made by the FRB which removing certain reporting requirements regarding extensions of credit to bank insiders. Information concerning the amendments was posted in the December 11, 2006, BOL Top Stories. Bulletin   12/21/06

FTC Stops Credit Card Fraud

A federal court order requested by the FTC has halted a payment processing operation that allegedly helped fraudulent telemarketers take millions of dollars from consumers' bank accounts. The operation aided at least nine Canada-based, advance-fee credit card schemes that induce consumers to allow an electronic debit of several hundred dollars from their bank account in exchange for an unsecured credit card that they never received. Summary; Order    12/21/06

IFDP Working Papers Published

The FRB has published five working papers in the International Finance Discussion Paper (IFDP) series on the following topics: The Monetary Origins of Asymmetric Information in International Equity Markets; Monetary Policy, Oil Shocks, and TFP: Accounting for the Decline in U.S. Volatility; Informed and Strategic Order Flow in the Bond Markets; A Bivariate Model of Fed and ECB Main Policy Rates; and An Empirical Analysis of Specialist Trading Behavior at the New York Stock Exchange. Monetary Origins Abstract; Monetary Origins Full Paper; Monetary Policy Abstract; Monetary Policy Full Paper; Informed Abstract; Informed Full Paper; Bivariate Abstract; Bivariate Full Paper; Empirical Abstract; Empirical Full Paper    12/21/06

IRS Reminder of Tax Law Change for IRA Participants

The IRS issued a reminder of tax law changes included in the 2006 Pension Protection Act that provide incentives for charitable donations by IRA owners who have reached the age of 70 1/2. The option is available only for tax years 2006 and 2007, and does not apply to employer-sponsored plans such as SIMPLE IRAs and SEP plans. Transferred amounts are counted in determining whether the owner has met the IRA's required minimum distribution rules. Where individuals have made nondeductible contributions to their traditional
IRAs, a special rule treats transferred amounts as coming first from taxable funds, instead of proportionately from taxable and nontaxable funds, as would be the case with regular distributions.
IR-2006-192    12/20/06

NCUA Investment Rule Published in FR

NCUA is amending its investments rule to allow federal credit unions to enter into investment repurchase transactions in which
the instrument consists of first-lien mortgage notes subject to certain limitations. The final rule expands FCU authority to invest in
mortgage-related securities while addressing safety and soundness concerns associated with this new investment activity. 71fr76122 txt 71fr76122 pdf    12/20/06

SDGT Added To OFAC List

A naturalized British citizen who provides material and logistical support to al Qaida and other terrorist organizations has been designated a SDGT and added to the SDN List. Information regarding the individual has been posted on the BOL OFAC Page.    12/20/06

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with the inclusion of data as of December 15, 2006.
Reserve Position    12/20/06

Exchange Rate Report Issued

Treasury has released its Semiannual Report on International and Economic and Exchange Rate Policies.
Report    12/20/06

New Reg R Proposed

The FRB and the SEC have announced the release of joint proposed rules to implement the "broker" exceptions for banks under Section 3(a)(4) of the Securities Exchange Act of 1934 which were adopted as part of the Gramm-Leach-Bliley Act of 1999 (GLB Act). The proposed rules, to be known as Regulation R, would implement the statutory exceptions that allow a bank, subject to certain conditions, to continue to conduct securities transactions for its customers as part of the bank's trust and fiduciary, custodial and deposit "sweep" functions, and to refer customers to a securities broker-dealer pursuant to a networking arrangement with the broker-dealer. Reg R; FRB PR; SEC NR   12/19/06

FFIEC Form 004 Eliminated

The FDIC has issued a FIL regarding the elimination of the FFIEC 004 report by executive officers and principal shareholders in complying with the annual reporting requirements pertaining to extensions of credit from correspondent banks. The statutory reporting requirements relating to insider lending by insured banks and savings associations were removed effective October 13, 2006, by provisions of the Financial Services Regulatory Relief Act of 2006. FIL   12/19/06

Enforcement Actions Announced Against Japanese Bank

The FDIC, the FRB, and the New York State Banking Department have announced the issuance of separate but coordinated enforcement actions regarding The Bank of Tokyo-Mitsubishi UFJ, Ltd., Tokyo, Japan, and some of its U.S. operations. The actions include an Order to Cease and Desist and a Written Agreement regarding the failure to implement adequate Bank Secrecy Act and anti-money laundering compliance programs. Order; Written Agreement; FRB PR; FDIC PR   12/19/06

January 2007 HOEPA Rates Established

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for which applications are received in January 2007 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. Daily H.15; Weekly H.15   12/19/06

CRA Ratings Released

The OCC has released the ratings received by twenty-five national banks that were recently examined for compliance with CRA. Ratings   12/19/06

Third Quarter Interest Rate Risk Report Issued

The OTS has issued the Aggregate Exposure and CMR Report for the Third Quarter 2006. Report   12/19/06

First Quarter CRA Exam Schedule Released

The OTS released a list of 64 savings associations that are scheduled for Community Reinvestment Act (CRA) examinations during the first quarter of 2007. CRA Examinations   12/18/06

FDIC Publishes Final Rule for Procedures for Corporate Debt Collection

The FDIC published a final fule in the Federal Register today to amending 12 CFR part 313, Procedures
for Corporate Debt Collection, to include delinquent criminal restitution debt within the debt covered by part 313.TXT, PDF .   12/18/06

TIC Data Report

Treasury has published the Treasury International Capital (TIC) data report for October 2006. TIC   12/18/06

U.S. Government Financial Report Released

Treasury and the Office of Management and Budget (OMB) have released the fiscal year 2006 Financial Report which details the financial position and condition of the United States Government. The report also provides information about significant future obligations by looking at prospective Social Security and Medicare costs. Summary; Index; Full Report   12/18/06

Bernanke Discusses Chinese Economy

In a presentation at the Chinese Academy of Social Sciences in Beijing, China, FRB Chairman Bernanke discussed the progress made by and the challenges facing the Chinese economy. He noted that for the past twenty years, the Chinese economy has achieved a growth rate averaging nearly 10 percent per year, resulting in a quintupling of output per person. He observed that the continued growth and modernization of the Chinese economy will require a substantial loosening of current restrictions on the flow of financial capital into and out of the country. He also stated, the economic relationship between China and the United States is of extraordinary importance, and both countries have much to gain from interactions with each other. Speech   12/18/06

Cost of Funds Reports Released

OTS has released the historical and current National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions reports. Historical; Current   12/18/06

November Industrial Production Report Issued

The FRB has issued the November 2006 G.17 Industrial Production and Capacity Utilization report. G.17   12/18/06

Fedwire Funds Transfer System Assessment Published

The FRB has published the results of an assessment of the Fedwire Funds Transfer System for compliance with the Core Principles for Systemically Important Payment Systems. Assessment   12/18/06

Business Lending Survey Results Released

The FRB has released the results of the most recent E.2 Survey of Terms of business Lending. The data is collected during the middle month of each quarter and is released in the middle of the succeeding month. E.2   12/18/06

FRB Data Download Available

The FEB has posted on its Web site links to download data related to selected Federal Reserve Board statistical releases. Downloads   12/18/06

Third Quarter Bank Trading Revenues Announced

The OCC issued the Quarterly Report on Bank Derivatives Activities that indicates that insured U.S. commercial banks generated revenues of $4.5 billion from trading cash instruments and derivative products in the third quarter of 2006. Summary; Full Report   12/18/06

Failure to Implement BSA Plan Results In $2 Million CMP

FinCEN has imposed a $2 Million CMP against The Foster Bank, Chicago, Illinois, for failure to implement an adequate BSA compliance program including an AML program with adequate controls and failure to file SARs and CTRs. CMP  12/15/06

Impact of FAS 158 on Regulatory Capital Decision Announced

The federal financial institution regulatory agencies have announced an interim decision that the Statement of Financial Accounting Standards No. 158, Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans (FAS 158), will not affect banking organizations' regulatory capital. FAS 158; FRB PR; OCC NR; OTS NR; FDIC PR  12/15/06

New FedReceipt Routing Numbers Announced

FRB Financial Services has announced new FedReceipt routing numbers. Routing Numbers  12/15/06

New HUD Settlement Statements Available Online

HUD has posted new HUD-1 and HUD 1-A settlement statements on its Web site. The new statements reflect the new OMB expiration date of November 30, 2009. HUD-1; HUD 1-A  12/15/06

Structure and Share Data Report Released

The FRB has released the September 2006 Structure and Share Data Report for U.S. Offices of foreign banks. Report  12/15/06

OCC Annual Report Released

The OCC has released the agency's Fiscal Year 2006 Annual Report. Annual Report  12/15/06

Counterfeit Cashier's Checks Alerts Issued

The OCC has issued two Alerts regarding counterfeit cashier's checks issued in the name of City National Bank of New Jersey, Newark, New Jersey, and First National Bank of Shelby, Shelby, North Carolina. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.   12/14/06

New HUD Requirement Imposes SCRA Default Notification

HUD has issued a Mortgage Letter regarding obligations under the provisions of the Servicemembers Civil Relief Act (SCRA) and a new legal requirement to notify homeowners in default of the mortgage and foreclosure rights of servicemembers and their dependents. All homeowners who are in default on a residential mortgage must be sent within 45 days from the date a missed payment was due, a notice that includes the toll-free military one-source number to call for assistance.
HUD Letter   12/14/06

Agencies Issue ALLL Guidance

A new interagency policy statement on the Allowance for Loan and Lease Losses (ALLL) and supplemental Frequently Asked Questions (FAQs) has been announced by the federal financial regulatory agencies. The new statement updates the 1993 policy statement to ensure consistency with GAAP and more recent guidance.
Statement;    
FAQs;    
FRB SR Letter;    
OCC Bulletin;    
FDIC FIL;    
OTS CEO Letter;    
NCUA PR   12/14/06

Enforcement Actions Announced

The OCC has announced the enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks.
Enforcement Actions   12/14/06

Legal Opinion Issued Regarding Securities Clearing Activities and Paying Interest on Free Credit Balances

The OTS has issued a legal opinion regarding the permissibility of certain securities clearing activities and the payment by an operating subsidiary of interest on customers' free credit balances.
Legal Opinion   12/14/06

Prohibition Order Issued

NCUA has issued an order prohibiting Crystal Bottomley, a former employee of NATCO Credit Union, Richmond, Indiana, from participating in the affairs of any federally insured financial institution.
Order   12/14/06

Names Removed From OFAC List

Three names with the WMD designation have been removed from the SDN list by OFAC. Information regarding the entities removed has been posted on the BOL OFAC page.  12/13/06

CIP Programs and Banks As Insurance Agents Guidance Published

FinCEN has published a Guidance in the frequently asked question (FAQ) format concerning CIP programs and banks serving as insurance agents. Guidance  12/13/06

Lending Concentration Guidance FIL Issued

The FDIC has issued a FIL regarding the previously announced interagency Guidance concerning concentrations in commercial real estate lending. Information regarding the Guidance was posted in the December 7, 2006, BOL Top Stories. FIL  12/13/06

FDIC proposes rulemaking for Large Bank Deposit Insurance Determination Modernization

The FDIC is seeking comment on whether and how the largest insured depository institutions should be
required to modify their deposit account systems to speed depositor access to funds in the event of a failure. In December 2005 the FDIC issued a prior advance notice of proposed rulemaking on this subject (2005 ANPR).1 This ANPR is a follow-up to that issuance. TXT, PDF .  12/13/06

Fed Funds Rate Unchanged

The Federal Open Market Committee (FOMC) has decided to keep its target for the federal funds rate at 5-1/4 percent. FOMC  12/13/06

Preliminary Third Quarter Interest Rate Measures Published

OTS has published the preliminary Interest Rate Measures for the Third Quarter 2006. Preliminary   12/13/06

FEDS Working Papers Published

Two working papers in the FEDS series have been published by the FRB on the following topics: Shifting Trends in Semiconductor Prices and the Pace of Technological Progress and A Quantitative Comparison of Sticky-Price and Sticky-Information Models of Price Setting. Shifting Abstract; Shifting Full Paper; Quantitative Abstract; Quantitative Full Paper   12/12/06

Annual Revision Of Industrial Production Report Issued

The FRB has issued the Annual 2006 historical and annual revision of the G.17 Industrial Production and Capacity Utilization report. G.17   12/12/06

October Finance Companies Reports Released

The October 2006 G.20 Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit report has been released by the FRB. G.20   12/12/06

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position report with the addition data current as of November 8, 2006. Reserve Position   12/12/06

Defense Secretary Asks for Comments on Lending Regulations

The Department of Defense has published a notice in the Federal Register asking for public comment in advance of issuing proposed regulations implementing § 670 of Public Law 109-364, the John Warner National Defense Authorization Act for Fiscal Year 2007. That section of the law creates new limits on the terms of consumer credit extended to members of the armed forces and their dependents. The Secretary of Defense is charged with issuing regulations to be effective by October 1, 2007. The Department "views this requirement as an opportunity to ensure the protections included in the statute do not create unintended limitations on Service members and their families obtaining favorable credit products." TXT, PDF. BankersOnline featured Andy Zavoina's analysis of the new law in its January 7, 2007, Executive Briefing.   12/11/06

2007 CRA/HMDA Entry Data Available

The free FFIEC CRA and HMDA Data Entry Software, version 3.30 for CY 2007 data due March 1, 2008, is only available by download from the FFIEC web site. Download   12/11/06

CMP Issued Against Grant Thornton

A $300,000 civil money penalty and a cease and desist order has been issued by the OCC against Grant Thornton LLP for reckless conduct in performing an audit of First National Bank of Keystone. In a written decision, Comptroller Dugan noted that Grant Thornton ignored "unequivocal, written evidence" that nearly 25 percent of the bank's assets could not be accounted for. Decision; Appendix to Decision; Order    12/11/06

Supplement To FRB Bulletin Issued

The FRB has issued a statistical supplement to the Federal Reserve Bulletin. Index Full Supplement   12/11/06

OTS Adjusts Fees

The Thrift Bulletin announcing the semi-annual adjustment of fees for inflation and loans serviced for others has been issued by OTS. Bulletin  12/11/06

FRB publishes Interim Rule for Loans to Executive Officers, Directors, and Principal Shareholders of Member Banks

The FRB published an interim rule in the Federal Register for Reg O, adopting, on an interim basis, and soliciting comment on amendments to the Board's Regulation O to eliminate certain
reporting requirements. TXT, PDF .  12/11/06

Terrorist Facilitators Added To OFAC List

Treasury has designated five individuals as SDGTs and added their names to the SDN List for providing financial support to al Qaida and other terrorist organizations, as well as facilitating terrorist activity. Information regarding the new entries has been posted on the BOL OFAC page.    12/08/06

BSA Advisory Group Application

The FFIEC is soliciting applicants for membership in its Bank Secrecy Act Advisory Group.
Application Information    12/08/06

314a Fact Sheet Update

FinCEN has updated the 314a Fact Sheet with the addition of data current as of December 5, 2006.
Fact Sheet    12/08/06

Consumer Credit Report Issued

The FRB has issued the October 2006 G.19 Consumer Credit Report which indicates that consumer credit decreased at an annual rate of 1/2 percent in October, following an upward-revised increase of 5-3/4 percent in the third quarter.
G.19    12/08/06

Fictitious Email Warning

The OCC has issued a warning regarding fictitious emails that are circulating worldwide claiming to be authored by the agency and fraudulently encouraging recipients to reply to receive funds owed by the OCC and other agencies.
Warning    12/08/06

Flow Of Funds Report Released

The Z.1 Flow of Funds Accounts of the United States Report for December 7, 2006 has been released by the FRB.
Z.1    12/08/06

Counterfeit Checks Special Alerts Issued

The FDIC has issued four Special Alerts regarding counterfeit official, cashier's and treasurer's account checks bearing the name of the following institutions:

• Astoria Federal Savings, Lake Success, New York
• Beneficial Mutual Savings Bank (also known as Beneficial Savings Bank), Philadelphia, Pennsylvania
• Bay State Savings Bank, Worcester, Massachusetts
• Bank of Ripley, Ripley, Tennessee

Information regarding the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   12/07/06

Comment Sought On Elimination Of Certain Reg O Reporting Requirements

The FRB is seeking comments on a proposed interim rule that would eliminate several Reg O reporting and disclosure requirements relating to insider lending by insured depository institutions. The interim rule does not alter the substantive restrictions on loans by insured depository institutions to their insiders or to insiders of their correspondent banks. Interim Rule   12/07/06

Hizballah Fundraisers Added To OFAC List

Treasury has designated as SDGTs and added to the SDN List the names of nine individuals and two entities located in the Tri-Border Area (TBA) of Argentina, Brazil, and Paraguay that have provided financial and logistical support to the Hizballah terrorist organization. Information regarding the additions has been posted on the BOL OFAC page.   12/07/06

Commercial Real Estate Lending Concentration Guidance Issued

A Guidance has been issued by the federal banking agencies regarding sound risk management practices for concentrations in commercial real estate lending. The guidance is intended to help ensure that institutions pursuing a significant commercial real estate lending strategy remain healthy and profitable while continuing to serve the credit needs of their communities. Guidance; FRB PR; OCC Bulletin; FDIC PR   12/07/06

CRA Ratings Released

The FDIC has released the list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). CRA   12/07/06

Unauthorized Banking Special Alert

The FDIC has issued a Special Alert regarding CanadaBank, a Canadian entity, that may be conducting unauthorized banking activities in the U.S. and Canada. Special Alert   12/07/06

Counterfeit Checks Special Alerts Issued

The FDIC has issued three Special Alerts regarding counterfeit official and cashier's checks bearing the name of the following institutions:

• North Valley Bank, Thornton, Colorado
• First Bank of Northern Kentucky, Inc., Fort Mitchell, Kentucky
• Jefferson Bank and Trust, Eureka, Missouri

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   12/06/06

$1 Million Settlement For Deceptive Debt Collection Practices

The FTC has announced that Capital Acquisitions and Management Corp. and affiliated companies will pay $1 million to settle charges that their debt collection practices violated federal law. Settlement   12/06/06

FTC Issues FACT Act Report

The FTC has issued a report to Congress as required by the FACT Act regarding the accuracy and completeness of information in consumers' credit reports and to consider methods for improving the accuracy and completeness of such information. Report    12/06/06

MSB Renewal Registration Notice

The FinCEN has issued a guidance to certain MSBs that the registration renewal deadline in December 31, 2006. Guidance   12/06/06

Commercial RE ML Grows

FinCEN has released an assessment showing considerable growth in money laundering-related suspicious activity reporting associated with the commercial real estate industry. Assessment   12/06/06

Enforcement Decisions Released

The FDIC has released the October 2006 report of recent enforcement decisions. Enforcement    12/06/06

Basel IA Rule Proposed

The FRB has released a draft interagency notice of proposed rulemaking that would revise the existing risk-based capital framework by giving many financial institutions the option of either continuing to use the existing Basel I-based capital rule or adopting a more risk sensitive rule, known as Basel IA. Summary; Preamble; Draft Notice    12/06/06

Insurance Fund Third Quarter Financials Released

The FDIC has released the Third Quarter 2006 financial report for the deposit insurance fund. Third Quarter   12/06/06

Insured Deposits Additional Comments Sought

The FDIC is soliciting additional comments on proposed improvements to the process of determining the insurance status of depositors of larger institutions in the event of a failure. Comments were initially sought in December 2005 and the agency has decided that more input is desired. Comments   12/06/06

Assets Reports Released

The 3.12 U.S. Reserve Assets and 3.13 Foreign Official Assets Held at Federal Reserve Banks reports fro October 2006 have been released by the FRB. Reports   12/06/06

FFIEC Reporting Forms Online

The FFIEC has posted the December 2006 031 and 041 reporting forms on the agency's Web page. 031; 041   12/05/06

504 CDC Teleseminar Scheduled

The OCC will host a teleseminar from 2:00 to 3:30 p.m. (EST) on January 31, 2007 for those interested in taking advantage of the Small Business Administration 504 Certified Development Company (CDC) Loan Program. Brochure; Registration    12/05/06

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position report with the addition of data as of December 1, 2006. Reserve Position   12/05/06

Counterfeit Official Checks Special Alert Issued

The FDIC has issued a Special Alert regarding counterfeit official checks bearing the name of The Huntington National Bank, Columbus, Ohio, and the routing number assigned to Central Bank, Lebanon, Missouri. Information concerning the counterfeit official checks has been posted on the BOL Alerts & Counterfeits page.   12/04/06

Proposed Rulemaking for Supplemental Standards of Ethical
Conduct for FDIC Employees

FCID publishes notice of of proposed rulemaking in FR that would amend existing FDIC ethics regulations
involving extensions of credit, ownership of stock, and definitions. This proposal would implement the
Preserving Independence of Financial Institution Examinations Act of 2003. TXT, PDF .   12/04/06

CRA Ratings Announced

OTS has announced the ratings received by savings associations recently evaluated for compliance with the CRA. Ratings   12/04/06

CRA Exam Schedule Released

The OCC has released the list of national banks scheduled for a CRA examination during the first quarter 2007. Schedule   12/04/06

CRA/HMDA Reporter Published

The 2006 issue of the CRA/HMDA Reporter, a yearly newsletter that provides information on various topics to assist in the collection and reporting of CRA and HMDA data, has been published by the FFIEC. Reporter   12/04/06

OFAC CMP Announced

OFAC has announced the issuance of new civil money penalties (CMP) for violations of various sanctions programs as of December 1, 2006. No financial institutions were listed. OFAC CMP   12/04/06

2007 OCC Fees

The OCC has issued a Bulletin regarding the agency's 2007 fee structure. Bulletin   12/04/06

Money Laundering Report Published

The FATF has issued a report that examines the ways in which money can be laundered through the exploitation of new payment technologies such as: prepaid cards, Internet payment systems, mobile payments, and digital precious metals. ML Report   12/04/06

NCUA and NASCUS to Hold Joint Meeting

The NCUA and the National Association of State Credit Union Supervisors (NASCUS) have announced that the agencies will hold a joint meeting March 25-27, 2007, in Salt Lake City. Joint Meeting   12/04/06

Foreign Exchange Rates Report Released

The FRB has released the G.5 Foreign Exchange Rates report for November 2006. G.5   12/04/06

Charge-Off Report Issued

The December 1, 2006 Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks report has been issued by the FRB. Charge-Off   12/04/06

FedFlash Published

The December 1, 2006 issue of FedFlash has been published and features articles on new FedLine Customer Access Services, new FedReceipt routing numbers, special ordering procedures for the $1 Presidential coins, date for non-acceptance of contaminated coin, and changes in procedures for access solutions and FedCash Services requests. FedFlash   12/04/06

CRA Exam Schedule Announced

The FDIC has announced the CRA examination schedule for the first quarter of 2007. Schedule   12/01/06

Deposit Insurance Assessment Final Rules Announced

The FDIC has issued two FILs that announce Final Rules regarding amendments to Part 327 of the FDIC Rules and Regulations. The first FIL concerns assessments and the designated reserve ratio and the second FIL regards the operational processes intended to make the deposit insurance assessment system react more quickly and more accurately. Assessments and Reserve Ratio FIL; Operational Processes FIL   12/01/06

OCC and State Banking Department to Share Complaint Information

The OCC and the New York State Banking Department have announced the signing of a Memorandum of Understanding (MOU) that provides a mechanism for sharing consumer complaint information between their two agencies. The agreement is patterned on a template created by the OCC and the Conference of State Bank Supervisors. Agreement    12/01/06

FRB Seeks Comment for proposed Rulemaking for Electronic fund transfers (Regulation E):

The Board is proposing to amend Regulation E, which implements the Electronic Fund Transfer Act, and
the official staff commentary to the regulation, which interprets the requirements of Regulation E. The
proposed amendments would create an exception for certain small-dollar transactions from the requirement that terminal receipts be made available to consumers at the time of the transaction. TXT, PDF .   12/01/06

FRB publishes Final Rule in FR for Electronic Fund Transfers

The Board is amending Regulation E, which implements the Electronic Fund Transfer Act, and the
official staff commentary to the regulation. The final rule clarifies the requirement to obtain a consumer's authorization to initiate an electronic fund transfer to the consumer's account. TXT, PDF .   12/01/06