Top Stories for March 2007

Counterfeit Checks and Fraudulent Bank Guarantees Alerts

The OCC has issued two Alerts regarding counterfeit cashier's checks issued in the name of First National Bank of Dozier, Dozier, Alabama, and fraudulent bank guarantees issued in the name of Central Bank of Ecuador. Information concerning the counterfeit cashier's checks and the fraudulent guarantees has been posted on the BOL Alerts & Counterfeits page.   3/30/07

Compliance Training and CRA Updates Scheduled

OTS has announced that a training regarding compliance with the CRA will be held in Boston, Massachusetts on Thursday, May 24, 2007. Training  3/30/07

Consumer Alert Issued

The OCC has issued a Consumer Alert regarding solicitations about a CRA program that entitles certain homeowners to cash grants or equity disbursements. Consumer Alert  3/30/07

Structure and Share Data Report Issued

The FRB has issued the December 2006 Structure and Share Data for U.S. Offices of Foreign Banks Report. Report  3/30/07

New Quarter and Dollar Information

FRB Financial Services has posted information regarding the distribution of the new Washington State quarter and the new John Adams dollar commemorative coins online. Coins  3/30/07

Drug Trafficker and Associates Added to OFAC List

OFAC has added a major drug trafficker along with related 45 companies and 64 individuals in Colombia, Belize, Ecuador, Guatemala, Honduras, Jamaica, Mexico, and Panama to the SDN List with the SDNT designation. Information concerning the additions has been posted on the BOL OFAC Page.  3/29/07

Small Dollar Lending Pilot Project Proposed

The FDIC staff has proposed and the agency advisory committee has endorsed a two-year small-dollar loan program pilot project. Project  3/29/07

Joint Agencies Propose Rulemaking for Model Privacy Form Under Gramm-Leach-
Bliley Act

The OCC, Board, FDIC, OTS, NCUA, FTC, and SEC (the Agencies) are proposing amendments to
their rules that implement the privacy provisions of the Gramm-Leach-Bliley Act (GLB Act), Title V, Subtitle A. These rules require financial institutions to provide initial and annual privacy notices to their customers.TXT; PDF  3/29/07

FEDS Working Paper Published

A working paper in the Finance and Economics Discussion Series (FEDS) series on the topic of "Natural Rate Measures in an Estimated DSGE Model of the U.S. Economy" has been published by the FRB. Abstract; Full Paper  3/29/07

Bernanke's Economic Outlook

In testimony before the Joint Economic Committee of Congress, Chairman Bernanke presented an update on the outlook for the U.S. economy. He observed that the Federal Open Market Committee has left its target for the federal funds rate unchanged, at 5-1/4 percent, since last June and that future policy decisions will depend on the evolution of the outlook for both inflation and economic growth. Testimony  3/29/07

Interest Rate Risk Reports Released

The Aggregate Exposure and CMR Report along with the Historical and Current National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions Reports for the Fourth Quarter 2006 have been released by OTS. Aggregate Exposure; Historical; Current  3/29/07

Financial Reporting Bulletin Published

OTS has published the March 2007 Financial Reporting Bulletin. Bulletin  3/29/07

Counterfeit Checks Special Alerts Issued

The FDIC has issued four Special Alerts regarding counterfeit official checks, cashier's checks and money orders bearing the names of the following financial institutions:

• Orange County Teachers Federal Credit Union, Santa Ana, California (Counterfeit Money Orders);
• Westside Community Bank, University Place, Washington (Counterfeit Cashier's Checks);
• Farmers & Merchants Bank of Central California, Lodi, California (Counterfeit Cashier's Checks); and
• McIntosh State Bank, Jackson, Georgia (Counterfeit Official Checks).

Information concerning the counterfeit checks and money orders has been posted on the BOL Alerts & Counterfeits page.  3/28/07

Second Quarter 2007 CRA Exam Schedule Announced

OTS has announced that seventy savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the second quarter of 2007. Schedule  3/28/07

314a Fact Sheet Update

FinCEN has updated the 314a Fact Sheet and the Law Enforcement Information Sharing with the Financial Industry Report with data current as of March 27, 2007. Fact Sheet; Information Sharing Report  3/28/07

Call Report Instruction Book Update and Optional Worksheet

The FFIEC has published and posted online an update to the Call Report Instruction Book and an Optional Worksheet for calculating Call Report applicable income taxes. Instruction Book; Worksheet  3/28/07

Guidance Issued For Financial Institutions To Facilitate Recovery in Southeast

The FDIC has issued a FIL that announces a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in counties affected by severe storms and tornadoes in Georgia and Alabama. FIL  3/28/07

Court Stops "Reduce Debt Now" Scheme

At the request of the FTC, a Federal Court has issued an Order that temporarily halts an operation that falsely claimed it could reduce consumers' credit card interest rates or the total amount of their credit card debt. Order  3/28/07

Online Survey For FRB Financial Services Customers

FRB Financial Services is requesting its customers to complete an online survey regarding how the agency's Website can better support their business needs. Survey  3/28/07

New Electronic Interpretations and Actions

The OCC has announced the new electronic interpretations and actions for March 2007. Interpretations and Actions  3/28/07

International Reserve Position Update

Treasury has updated the U. S. International Reserve Position Report with the addition of data current as of March 23, 2007. Reserve Position  3/28/07

First Quarter 2007 Call Report Information

The FDIC has issued a FIL and the FFIEC has issued Supplemental Instructions regarding the filling of the March 31, 2007 Call Report. FIL; Supplemental Instructions  3/27/07

Enforcement Actions Announced

The FDIC has announced twenty-one orders of administrative enforcement actions taken against banks and individuals in February. Enforcement Actions  3/27/07

Faith Based Credit Union Chartered

NCUA has approved a charter and low-income designation for New Covenant Dominion Federal Credit Union of Bronx, New York. The new CU will serve the members of the New Covenant Christian Church and students of New Covenant Christian Church schools. Faith Based  3/27/07

NCUA Announces Proposed Rulemaking for Catastrophic Preparedness

NCUA proposes to amend its regulations to address a federally insured credit union's obligation to
maintain a records preservation program. The proposed rule draws from existing guidance to clarify
requirements for preserving vital records and to suggest important items for consideration in restoring vital member services.TXT; PDF  3/27/07

OTS Gives Notice of Proposed Rulemaking for Permissible Activities of Savings and Loan Holding Companies

The Office of Thrift Supervision (OTS) is proposing to revise its regulations to expand the permissible activities of savings and loan holding companies (SLHCs) to the full extent permitted under the Home Owners' Loan Act (HOLA). It also proposes to amend the regulation to the statute that it is intended to implement by replacing the absolute prohibition on certain SLHC transactions that is currently in the regulation with a prior approval requirement.TXT; PDF  3/27/07

Financial Holding Company List Update

The FRB has updated the list of bank holding companies that have elected to be treated as financial holding companies as of March 23, 2007. FHC List  3/27/07

March 2007 FedFocus Published

FRB Financial Services has published and posted online the March issue of FedFocus that features an article regarding the accelerating adoption rate of electronic payments throughout the nation. Other topic of interest include: comments from one of the first Federal Reserve Financial Services customers to use FedLine Direct, how a credit unions utilizes Directo a México to help its customer base move electronic payments, and how the Electronic Check Adjustments Service makes some customers' jobs easier. March FedFocus  3/27/07

FDIC 2007 Performance Plan

The FDIC has published its 2007 Performance Plan that sets out specific annual performance goals, indicators and targets for each of FDIC's three major business lines (Insurance, Supervision, and Receivership Management). Plan
  3/27/07

Counterfeit Cashier's Check Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Citizens National Bank, Cameron, Texas. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits Page.  3/26/07

Cease And Desist Order Issued

The FRB has announced the issuance of a consent Cease and Desist Order against Cache Valley Banking Company and Cache Valley Bank, both of Logan, Utah. The termination of a previously issued Written Agreement by and among Cache Valley Bank Company, Cache Valley Bank, the Federal Reserve Bank of San Francisco, and the Utah State Department of Financial Institutions was also announced. Order  3/26/07

Imposition of Special Measures SR Letter

A SR Letter has been issued by the FRB regarding the previously announced imposition of special measures by FinCEN against Banco Delta Asia SARL and its branches, offices, and subsidiaries. Information concerning the Special Measures was posted in the March 15, 2007 BOL Top Stories. SR Letter  3/26/07

IFDP Working Paper Published

The FRB has published a working paper in the International Finance Discussion Paper series on the subject of "Markov Switching GARCH Models of Currency Turmoil in Southeast Asia". Abstract; Full Paper  3/26/07

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Bank of Kimberling City, Kimberling City, Missouri. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  3/23/07

Social Security Setoff Case To Be Reviewed

The decision by a California state appellate court that Bank of America (BofA) did not act illegally when it accepted direct deposits of government benefits to overdrawn customer accounts will be reviewed by the California Supreme Court. In the case of Miller v. Bank of America, NT & SA, the appellate court overturned a lower court decision that could have cost BofA over one billion dollars in damages and agreed with BofA that applying direct deposits of Social Security and other government benefits to clear overdraft balances is not exercising a right of setoff. More information regarding this potentially landmark case can be found on the BOL Court Watch Page. California Supreme Court  3/23/07

FRB Announces Written Agreement With Ohio Bank

The FRB has announced the execution of a Written Agreement by and among the North Valley Bank, Zanesville, Ohio, the Ohio Division of Financial Institutions and the Federal Reserve Bank of Cleveland. Written Agreement  3/23/07

Counterfeit Checks Alerts Issued

The OCC has issued three alerts regarding counterfeit official and cashier's checks issued in the names of the following national banks:

• Platte Valley National Bank, Scottsbluff, Nebraska (Counterfeit Cashier's Checks);
• Unity National Bank, Houston, Texas (Counterfeit Cashier's Checks); and
• Great Lakes Bank, N.A., Blue Island, Illinois (Counterfeit Official Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  3/22/07

Model Privacy Notice Comment Sought

The federal financial institution regulators along with the FTC, SEC and CFTC have released a notice of proposed rulemaking (NPR) requesting comment on a model privacy form that financial institutions can use for their privacy notices to consumers required by the Gramm-Leach-Bliley Act (GLB Act). The proposed model privacy form is a prototype privacy notice and the NPR proposes that a financial institution that chooses to use the model form would satisfy the disclosure requirements for the notices and so could take advantage of a legal safe harbor. NPR; FRB PR; FDIC PR; OCC NR; OTS PR; NCUA NR; FTC PR; SEC PR; CFTC PR  3/22/07

Chairman Blair Discusses Large Bank Failure Procedures

In a presentation at the Exchequer Club in Washington, D.C., FDIC Chairman Blair reviewed the procedures that the regulator would follow in the unlikely event of the failure of a large bank. She noted, "Stability and public confidence are easy to take for granted, and in good times such as these it is tempting to discount the probability of banking problems and the potential instability. The FDIC is resisting this temptation and is using this time to plan and prepare for what we hope will never happen." Speech  3/22/07

FDIC Enforcement Decisions Announced

The FDIC has announced the Enforcement Decisions and Orders recently issued regarding financial institutions. Enforcement Decisions  3/22/07

Final Rule for OTS Community Reinvestment Act - Interagency Uniformity

The Office of Thrift Supervision published a Final Rule in the Federal Register, changing
its Community Reinvestment Act (CRA) regulations in four areas to reestablish uniformity between its
regulations and those of the other federal banking agencies. It is making these revisions to promote consistency and facilitate objective evaluations of CRA performance across the banking and thrift industries. TXT PDF  3/22/07

Fed Funds Rate Unchanged

A statement has been released by the FOMC that target for the federal funds rate will remain unchanged at 5-1/4 percent. Statement   3/22/07

Counterfeit Checks Special Alerts

The FDIC has issued two Special Alerts regarding counterfeit cashier's checks bearing the names of Berkshire Bank, Pittsfield, Massachusetts, and The Farmers State Bank of Waupaca, Waupaca, Wisconsin. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.   3/21/07

CRA Ratings Released

The OCC has released a list of the ratings received by national banks that were recently examined for compliance with the Community Reinvestment Act (CRA). Ratings   3/21/07

Credit Card Fraudsters To Pay $8.1 Million

A federal district court in Illinois has entered an order against several Canadian cross-border fraudsters that permanently bans their deceptive telemarketing pitches and requires them to pay $8.1 million gained from their sale of non-existent advance-fee Visa and MasterCard credit cards to U.S. consumers. $8.1 Million   3/21/07

OCC Publishes Strategic Plan

The OCC has published its strategic plan for 2007-2012 that outlines long range goals and how the agency intends to accomplish them. Strategic Plan   3/21/07

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with the addition of data current as of March 16, 2007. Reserve Position   3/21/07

Counterfeit Checks and Money Orders Special Alerts

Five Special Alerts have been issued by the FDIC regarding counterfeit cashier's checks and money orders bearing the names of the following institutions:

• American Bank & Trust of the Cumberlands, Livingston, Tennessee (Counterfeit Cashier's Checks);
• Central Progressive Bank, Lacombe, Louisiana (Counterfeit Cashier's Checks);
• Tecumseh Federal Bank, Tecumseh, Nebraska (Counterfeit Cashier's Checks);
• Community State Bank of Orbisonia, Orbisonia, Pennsylvania (Counterfeit Money Orders); and
• MidSouth Bank, Beaumont, Texas (Counterfeit Cashier's Checks).

Information concerning the counterfeit cashier's checks and money orders has been posted on the BOL Alerts & Counterfeits page.   3/20/07

Enforcement Actions Announced

The OCC has announced the new enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks. Actions   3/20/07

OTS Final CRA Rule

OTS has announced the publication of a final rule revising four areas of its Community Reinvestment Act (CRA) regulations to reestablish uniformity between its rules and those of the other federal banking agencies. OTS Director John Reich remarked that OTS is making the revisions to promote consistency and facilitate objective evaluations of CRA performance across the banking and thrift industries. Final Rule; Reich Remarks   3/20/07

New Community Bank Directors Workshop

The OCC will host a workshop for new national community bank directors at the Westin Embassy Row Hotel in Washington, D.C. on April 16-18, 2007. The sessions are geared primarily for directors with less than three years of experience and will provide practical information to expand their skills and understanding of issues facing their banks. Online registration is available. Workshop   3/20/07

Eleven Counterfeit Checks Special Alerts Issued

The FDIC has issued eleven Special Alerts regarding counterfeit cashier's and treasurer's checks bearing the names of the following financial institutions:

• Guaranty Bond Bank, Mount Pleasant, Texas, (Counterfeit Cashier's Checks)
• Washington Federal Savings Bank, Washington, Pennsylvania, (Counterfeit Cashier's Checks)
• Skagit State Bank, Burlington, Washington, (Counterfeit Cashier's Checks)
• Farmington Savings Bank, Farmington, Connecticut, (Counterfeit Cashier's Checks)
• Capital Bank & Trust Company, Albany, New York, (Counterfeit Cashier's Checks)
• PBI Bank, Louisville, Kentucky, (Counterfeit Cashier's Checks)
• Palmetto State Bank, Hampton, South Carolina, (Counterfeit Cashier's Checks)
• Clarke County State Bank, Osceola, Iowa, (Counterfeit Cashier's Checks)
• New York Community Bank, Westbury, New York, (Counterfeit Cashier's Checks)
• Hyde Park Bank and Trust Company, Chicago, Illinois, (Counterfeit Cashier's Checks) and
• Lebanon Valley Farmers Bank, Lebanon, Pennsylvania (Counterfeit Treasurer's Checks).

Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.   3/19/07

Wal-Mart Withdraws ILC Application

The President of Wal-Mart Financial Services has announced that the FDIC has been notified that Wal-Mart is withdrawing the application that was filed in July 2005 for an Industrial Loan Company (ILC) charter. FDIC Chairman Blair issued a statement regarding the Announcement. Withdrawal; Blair Statement   3/19/07

FEMA Announces Change in Notification Method for New or Modified Flood Maps

FEMA currently publishes a legal notice in a local newspaper when a new or revised Flood Insurance Rate Map (FIRM) is prepared and new or modified Base Flood Elevations (BFEs) including revisions that are effected by Letter of Map Revision (LOMR) are for proposed for a community. Beginning April 1, 2007, the BFE notices will also be posted on a FEMA Website. BFE Notices   3/19/07

April HOEPA Rates Set

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for which applications are received in April 2007 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release that 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   3/19/07

FedACH Implements 2007 ACH Rules

A letter has been issued by FedACH that encourages financial institutions to obtain a copy of the National Automated Clearing House Association (NACHA)'s 2007 ACH Rules that provides detailed information regarding the 2007 rule changes, their operational impact, and whether any software changes are required. Letter   3/19/07

Treasury Publishes Final Rule to impose a special measure relative to the BSA

The Department of the Treasury Publishes Final Rule in FR to impose a special measure against the Banco Delta Asia SARL pursuant to the authority contained in 31 U.S.C. 5318A of the Bank Secrecy Act, including its subsidiaries, Delta Asia Credit Limited and Delta Asia Insurance Limited, as a Financial Institution of Primary Money Laundering Concern.TXT PDF  3/19/07

Minority Owned Thrifts List Updated

OTS has updated its list of minority owned thrifts with data current as of March 2007. List   3/19/07

Industrial Production Report Released

The G. 17 Industrial Production and Capacity Utilization Report for February 2007 has been released by the FRB. G.17   3/19/07

FEDS Working Paper Published

A working paper in the Finance and Economics Discussion Series (FEDS) on the topic of "Estimating Probabilities of Recession in Real Time Using GDP and GDI" has been published by the FRB. Abstract; Full Paper   3/19/07

314a Fact Sheet Update

FinCEN has updated the 314a Fact Sheet and the Law Enforcement Information Sharing with the Financial Industry Report with information current as of March 15, 2007. Fact Sheet; Sharing Report   3/16/07

Credit Card Terms Survey Released

The FRB has released its semi-annual survey of the terms of credit card plans offered by financial institutions that includes information from the largest credit card issuers in the country as well as other financial institutions that participated in the survey. Survey   3/16/07

FedCash Services Announces New Due Diligence Procedures

The FRB has implemented new due diligence procedures for certain FedCash Services requests to use information collected through the Board Resolution and Official Authorization List (OAL) process. Procedures   3/16/07

FedFlash March Issue Published

The March 15, 2007 issue of FedFlash has been published by FRB Financial Services and features articles on the following topics: CheckImage Central Web site as a valuable Check 21 resource; Cash Letter forms update; enhancements to FedACH Derived Returns functionality; and contaminated coin no longer accepted beginning March 31, 2007. FedFlash   3/16/07

NCUA Town Hall Meeting Online Registration

NCUA has announced that registration is now open for the first of six upcoming Outreach Task Force "Town Hall" meetings. Registration   3/16/07

Cost of Funds Reports Released

OTS has released the Historical and Current Reports of National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions. Historical; Current   3/16/07

January TIC Data Online

The Treasury International Capital (TIC) data for January 2007 has been released and posted online. TIC   3/16/07

Treasury Cuts Off Bank From U.S. Financial System

Treasury has issued a final rule against Banco Delta Asia SARL (BDA) under Section 311 of the USA PATRIOT Act that bars BDA from accessing the U.S. financial system, either directly or indirectly. Under the final rule, which takes effect in 30 days, U.S. financial institutions will be prohibited from opening or maintaining correspondent accounts for or on behalf of BDA. Summary; Final Rule   3/15/07

New SAR Form Bulletin Issued

The OCC has issued a Bulletin regarding the previously announced revision of the format for the Suspicious Activity Report by Depository Institutions (SAR-DI). Information concerning the revision was posted in the December 22, 2006 BOL Top Stories. Bulletin; New SAR-DI   3/15/07

Counterfeit Cashier's Checks Special Alerts Issued

Two Special Alerts have been issued by the FDIC regarding counterfeit cashier's checks bearing the names of ESSA Bank & Trust, Stroudsburg, Pennsylvania, and First United Bank and Trust Company, Durant, Oklahoma. Information concerning the counterfeit cashier's checks has been posted on the BOL Alert & Counterfeits Page.   3/14/07

BSA and AML Written Agreement Announced

The FRB and the New York State Banking Department have announced the execution of a Written Agreement with Intesa Sanpaolo S.p.A., Turin, Italy, that addresses BSA and anti-money-laundering compliance policies and practices at the institution's New York branch. Written Agreement   3/14/07

Survey of Terms of Business Lending Released

The E. 2 Survey of Terms of Business Lending report for February 7-9, 2007, has been released by the FRB. E.2    3/14/07

Household Ratios Published

The FRB has published the household debt service ratio (DSR) and financial obligations ratio (FOR) for the Fourth Quarter 2006. Ratios   3/14/07

New Electronic Interpretations and Actions Announced

The OCC has announced the New Electronic Interpretations and Actions for February 2007. The entries include an Interpretive Letter that concludes that banks can hold a non-controlling investment in company that sells fraud prevention, identity verification, credential validation, and payment/deposit risk services to financial institutions, credit card issuers, check acceptance companies, brokerage firms, mutual fund companies, retailers, government agencies, and others. Interpretations and Actions   3/13/07

International Reserve Position Update

Treasury has updated the U. S. International Reserve Position Report with data current as of March 9, 2007. Reserve Position   3/13/07

OFAC CMPs Announced

Treasury has announced the civil money penalties (CMPs) recently issued for violations of various Sanctions Programs. No financial institutions were listed. CMPs   3/12/07

Subprime Lending FIL Issued

The FDIC has issued a FIL regarding the previously announced Interagency Proposed Statement on Subprime Mortgage Lending. Information concerning the proposed statement was posted in the March 5, 2007 BOL Top Stories. FIL   3/12/07

Economic Update Released

Treasury has released its update of U.S. economic strength. Update   3/12/07

BSA Magnetic Media Filers Notice

FinCEN has issued a notice reminds financial institutions who file Bank Secrecy Act (BSA) forms by magnetic media that the only approved filing media are 3.5 inch diskettes and 18/36 track cartridges. Filers Notice   3/09/07

NCUA Publishes Rule for Sharing Insurance Appeals and to Clarify Enforcement Authority of the NCUA
Board

The National Credit Union Administration (NCUA)publishes a final rule in the Federal Register to implement amendments to the Federal Credit Union Act (FCU Act) made by the Financial Services Regulatory Relief Act of 2006 (Reg Relief Act) enacted by Congress on October 13, 2006. This final rule amends NCUA's regulations to assure they are consistent with the statutory changes made by the Reg Relief Act and adopts the amendments as stated in the interim final rule issued in November 2006.TXT, PDF    3/09/07

Fourth Quarter Flow of Funds Report Issued

The FRB has issued the Z.1 Flow of Funds Accounts of the U.S. Report for the Fourth Quarter 2006. Z.1    3/09/07

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Santa Clara Valley Bank, N.A., Santa Paula, California. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.   3/08/07

Two Added To SDN List

Treasury today added two U.S. companies to the OFAC SDN list of Specially Designated Narcotics Traffickers (SDNTs) for their ties to Colombia's North Valle drug cartel. In addition, changes have been made to existing entries. The new information has been added to the BOL OFAC page.   3/08/07

Early Savings Bonds Redemptions Authorized

FRB Financial Services has announced that the early savings bonds redemptions are authorized in certain areas affected by recent storms. Early Redemptions   3/08/07

C&D Order Issued

The FDIC has issued a Cease and Desist (C&D) Order against Fremont Investment & Loan, Brea, California, and its parent corporations for operating without effective risk management policies and procedures in place in relation to subprime mortgage and commercial real estate lending operations. C&D   3/08/07

Beige Book Update

The March 7, 2007 issue of the Beige Book that contains an informal review by the Federal Reserve Banks of current economic conditions in their Districts has been published by the FRB. Beige Book Summary; Beige Book Full Report   3/08/07

Blair and Dugan Address ICBA Convention

The Chairman of the FDIC and the Comptroller of the Currency each addressed the annual convention of the Independent Community Bankers of America. Chairman Blair noted that community banks play a critical role in the economic well-being of the towns and neighborhoods they serve. Comptroller Dugan observed that more than 90 percent of the banks supervised by the OCC are community institutions. Blair Speech; Dugan Speech   3/08/07

January Consumer Credit Report Released

The G.19 Consumer Report for January 2007 has been released by the FRB. G.19   3/08/07

Unauthorized Banking Alert

The OCC has issued an Alert regarding unauthorized banking activities that may be conducted by Deltec Financial & Trust Services, an entity that is not licensed under the to conduct banking and/or trust business in or from within The Bahamas or the United States. Unauthorized Banking   3/07/07

Reich On Community Banking

OTS Director Reich the addressed the annual conference of the Independent Community Bankers of America (ICBA)in Honolulu, Hawaii, and discussed why community banking matters. Presentation   3/07/07

Bernanke Discuses Freddie and Fannie

In a presentation by satellite, before the Independent Community Bankers of America's Annual Convention and Techworld in Honolulu, Hawaii, Chairman Bernanke discussed the regulation and supervision of the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). Presentation   3/07/07

Fourth Quarter Legal Developments Report Released

The FRB has released the Legal Developments Report for the Fourth Quarter 2006. Legal Developments   3/07/07

CRA Ratings Released

The FDIC has issued a list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). CRA   3/06/07

FinCEN Director Named

James Freis, Jr., the current Deputy Assistant General Counsel for Enforcement & Intelligence, has been named the new Director of FinCEN by Treasury Secretary Paulson. New Director   3/06/07

Reserve Position Updated

Treasury has updated the U. S. International Reserve Position Report with the addition of data as of March 2, 2007. Reserve Position Report   3/06/07

Counterfeit Checks and Money Orders Special Alerts Issued

The FDIC has issued four Special Alerts regarding counterfeit checks and money orders bearing the names of the following institutions:

• Patriot Bank Minnesota, Wyoming, Minnesota (Counterfeit Money Orders),
• cPort Credit Union, Portland, Maine (Counterfeit Official Checks),
• Pierce Commercial Bank, Tacoma, Washington (Counterfeit Checks), and
• The Ravalli County Bank, Hamilton, Montana (Counterfeit Cashier's Checks)

Information regarding the counterfeit checks and money orders has been posted on the BOL Alerts & Counterfeits page.   3/05/07

Comments Sought on Subprime Lending Proposed Guidance

The federal financial regulatory agencies are seeking comments on a proposed Guidance that address certain risks and emerging issues relating to subprime mortgage lending practices, specifically, particular ARM lending products. Proposed Guidance; FRB PR; FDIC PR; OCC NR; OTS PR; NCUA PR   3/05/07

Enforcement Decisions Released

The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in January. One bank was ordered to pay a civil money penalty (CMP) of $24,480 for violations of the Flood Disaster Protection Act. Enforcement Decisions   3/05/07

FIL Issued Regarding Call Report and TFR Revisions

The FDIC has issued a FIL regarding the FFIEC approved revisions to the reporting requirements for the Consolidated Reports of Condition and Income (Call Report) and the Thrift Financial Report (TFR). The effective date of the revisions is March 31, 2007. FIL; FFIEC Revisions   3/05/07

"419" Scam E-mail Alert

An Alert has been issued by the OCC regarding fraudulent correspondence, including e-mails that refer to the U.S. House Committee on Financial Services and appear to use the Committee's letterhead. The communications appear to be part of a Nigerian "419" scam. The potential victims are informed that they are due to receive large sums of money from an inheritance, but that they must first pay a large fee through lawyers to the Financial Services Committee in order to verify that the funds are not tied to terrorist financing. Recipients are requested to forward the emails to the United States Secret Service. Alert    3/05/07

OCC Revises Licensing Manual Booklet

The OCC has revised the Charters booklet in its Licensing Manual series regarding cumulative voting rights for election of directors. Charters   3/05/07

4th Quarter Interest Rate Measures Preliminary Report Issued

OTS has issued the preliminary interest rate measures report for the 4th Quarter 2006. Preliminary Report   3/05/07

Bank Directors Workshops Announced

The OCC has announced the 2007 schedule of the workshops that the agency will host for national bank directors at various locations. The one and two day workshops will be presented depending on the topics covered. Online registration is available. Workshops; Registration   3/05/07

FEDS Working Paper Published

The FRB has published a working paper in the Finance and Economic Discussion Series (FEDS) on the topic of "A Closer Look at the Sensitivity Puzzle: The Sensitivity of Expected Future Short Rates and Term Premia to Macroeconomic News". Abstract; Full Paper   3/05/07

Counterfeits Checks Alert

The OCC has issued an Alert regarding counterfeit official checks issued in the name of AMCORE Bank, N.A., Rockford, Illinois. Information concerning the counterfeit official checks has been posted on the BOL Alerts & Counterfeits page.   3/02/07

CRA Ratings Announced

OTS has announced the ratings received by saving associations recently evaluated for compliance with the CRA. CRA Ratings   3/02/07

CRA Examination Schedules Released

The OCC and the FDIC have released their respective CRA examination schedules for the second quarter 2007. OCC Schedule; FDIC Schedule   3/02/07

New Routing Numbers Announced

FRB Financial Services has announced new FedReceipt routing numbers that will be effective March 12, 2007. Routing Numbers   3/02/07

March Issue FedFlash Published

The March 2007 issue of FedFlash has been published and posted online. The issue features articles regarding new studies to examine payments usage, a new case numbering scheme for Checks Adjustment cases, revisions to Operating Circular 1, security access review for certain FRB services, and the 2007 daylight saving time shifts. FedFlash   3/02/07

Paulson On Trade

In a presentation to the Economic Club of Washington, Treasury Secretary Paulson detailed the major benefits trade and openness brings to our economy, addressed some of the concerns raised about trade, and discussed efforts to help more Americans tap into the potential of the economy. He noted that for more than 60 years, the United States has been the world's leader in advocating greater openness and increased trade. Speech   3/02/07

FR Bulletin Statistical Supplement Published

The FRB has published the February 2007 Statistical Supplement to the Federal Reserve Bulletin. Supplement   3/02/07

Foreign Exchange Rates Report Issued

The G.5 Foreign Exchange Rates Report for February 2007 has been issued by the FRB. G.5   3/02/07

Large Commercial Banks Ranking Report Released

The FRB has released the ranking by consolidated assets of insured U.S. chartered commercial banks that have consolidated assets of $300 million or more as of December 31, 2006. Ranking   3/02/07

Operating Circular 1 Revision Effective Date

FRB Financial Services has announced April 1, 2007 as the effective date of the revisions to Operating Circular 1. Effective Date   3/01/07

Gift Card Guidance Issued

OTS has issued a CEO Letter on the subject of Guidance on Gift Card Programs. CEO Letter   3/01/07

Basel II FIL and Bulletin Issued

The FDIC has issued a FIL and the OCC has issued a Bulletin regarding the previously announced proposed Guidance concerning the implementation of Basel II. The initial announcement by the regulators of the proposed Guidance was featured in BOL Top Stories on February 16, 2007. FIL; Bulletin; Proposed Guidance   3/01/07

Special Process For Ordering Presidential Coins Announced

FRB Financial Services has announced that a special process will be implemented regarding the ordering of the $1 Presidential coins. Ordering   3/01/07

Bernanke Discusses Long Term Challenges for the Economy

In testimony before the House Budget Committee, FRB Chairman Bernanke presented his views on the federal budget and related issues. He noted that while projections suggest that the budget deficit may stabilize or moderate further over the next few years, spending on entitlement programs will begin to climb quickly during the next decade. He indicated that addressing the country's fiscal problems will take persistence and a willingness to make difficult choices by the Congress, the Administration, and the American people. Testimony   3/01/07

Reserve Assets Report Released

The FRB has released the 3.12 U.S. Reserve Assets and 3.13 Foreign Official Assets Held at Federal Reserve Banks Reports for January 2007. Reports   3/01/07