Top Stories for August 2007

DoD Lending Rules Finalized

The Department of Defense has published final rules setting forth new requirements for loans to servicemembers and their dependents under the John Warner National Defense Authorization Act. The implementation date is October 1, 2007. While banks, thrifts and credit unions are not exempted from coverage by the new regulation, the impact on those entities will likely not be substantial because of the narrow scope of the final rules. For example, loans secured by an interest in a dwelling are exempt, as are open-end credit products. The three loan types that are covered under the new §232.3 include:

1. payday loans, which are 91 days or less and do not exceed $2,000,
2. vehicle title loans, which are 181 days or less and exclude purchase money loans, and
3. tax refund anticipation loans.

TXT; PDF   8/31/07

Counterfeit Checks Special Alerts

The FDIC has issued five Special Alerts regarding counterfeit cashier's, expense and official checks bearing the names of the following institutions:

• First FarmBank, Greeley, Colorado (Counterfeit Cashier's Checks);
• First PREMIER Bank, Sioux Falls, South Dakota (Counterfeit Expense Checks);
• The Bank of Delmarva, Seaford, Delaware (Counterfeit Official Checks);
• Peoples Bank, Clifton, Tennessee; and
• Bank of the San Juans, Durango, Colorado (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeit page.  8/31/07

Colombian Drug Traffickers and Related Interests Added to OFAC List

OFAC has designated four Colombian drug traffickers and five of their related interests (entities and individuals) as Specially Designated Narcotics Traffickers (SDNT) and added their names to the Specially Designated Nationals (SDN) List. Information regarding the new entries has been posted on the BOL OFAC Page.  8/31/07

Fraudulent OCC Letters Alerts

The OCC, the FDIC, and the European Commission have issued Alerts regarding fraudulent letters appearing to be sent by the OCC concerning the release of funds supposedly under the control of the European Commission in Belgium. The letter is being sent to U.S. bank customers and indicates that monies are being held until the recipient can produce the necessary documents, which will cost the customer $25,000. FDIC Special Alert; European Commission Warning  8/31/07

CHARM Booklet Deadline Approaches

This is a reminder that you can use your existing stock of Consumer Handbook on Adjustable-Rate Mortgages (CHARM) booklets until September 30, 2007. To comply with Regulation Z beginning October 1, 2007, creditors must provide a copy of the revised CHARM booklet, or a suitable substitute, to consumers with every application for an adjustable rate mortgage loan. Deadline; CHARM Booklet English; CHARM Booklet Spanish  8/31/07

OCC Issues BSA Bulletins

Three Bulletins have been issued by the OCC regarding previously announced compliance with the provisions of the Bank Secrecy Act (BSA):

• BSA Enforcement Policy Interagency Statement:
• 2007 National Money Laundering Strategy; and
• Suspicious Activity Report (SAR) Supporting Documentation.

Interagency Statement Bulletin; Strategy Bulletin; SAR Bulletin  8/31/07

Treasury Updates Homepage

Treasury's homepage has a new look and allows web-users to access press releases, speeches and reports on key issues. Links have been consolidated and reorganized to provide easier access and a new feature called the Secretary's Corner has been added. Homepage  8/31/07

Counterfeit Checks Special Alerts Issued

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

• Brenham National Bank, Brenham, Texas (Counterfeit Cashier's Checks);
• Commerce Bank/Harrisburg National Association (Commerce Bank), Lemoyne, Pennsylvania (Counterfeit Cashier's Checks);
• Citizens Bank, Mooresville, Indiana (Counterfeit Cashier's Checks);
• Haven Savings Bank, Hoboken, New Jersey (Counterfeit Official Checks);
• First Western Bank, Wall, South Dakota (Counterfeit Cashier's Checks); and
• Liberty Bank, Alton, Illinois (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  8/30/07

Counterfeit Money Orders Alert

The OCC has issued an Alert regarding counterfeit personal money orders issued in the name of Canandaigua National Bank & Trust, Canandaigua, New York, are being presented for payment nationwide in connection with a mystery shopping scam. Information concerning the counterfeit money orders has been posted on the BOL Alerts & Counterfeits page.  8/30/07

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among Premier Bank, Denver, Colorado, the State of Colorado Division of Banking, Denver, Colorado, and the Federal Reserve Bank of Kansas City. Agreement   8/30/07

Banks Encouraged to Work with Customers Affected by Flooding

The OCC has announced that prudent efforts by national banks to adjust or alter terms on existing loans in areas affected by flooding and related problems flooding in Wisconsin, Minnesota, Illinois, and Ohio should not be subject to bank examiner criticism. Flooding   8/30/07

Reserve Position Update

Treasury has updated the U.S. International Reserve Position report with data current as of August 24, 2007. Reserve Position  8/30/07

Illegitimate Checks and Currency Alerts Given

The FRB has issued an Alert regarding illegitimate checks being drawn on an entity named TUC Private Currency Office and currency called "The United States Private Dollar" being promoted by The United Cities Corp., Miami, Florida. Information regarding the illegitimate checks and currency has been posted on the BOL Alerts & Counterfeits page.  8/29/07

Counterfeit Checks Special Alerts Issued

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

• S&T Bank, Indiana, Pennsylvania (Counterfeit Treasurer's Checks);
• First Lowndes Bank, Fort Deposit, Alabama (Counterfeit Cashier's Checks);
• CapitalBank, Greenwood, South Carolina (Counterfeit Official Checks); and
• The Talbot Bank of Easton, Easton, Maryland (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits Page.  8/29/07

$85,045 Flood CMP Announced

The FRB has announced that a civil money penalty (CMP) in the amount of $85,045 has been assessed against Capital City Bank, Tallahassee, Florida, for alleged violations of Reg. H. CMP  8/29/07

Early Savings Bond Redemptions Authorized

FRB Financial Services has announced that savings bond agents serving specified Minnesota, Wisconsin and Oklahoma counties recently affected by severe weather are authorized to redeem EE and I savings bonds less than one year old presented during the months of August, September, and October 2007. Early Redemptions  8/29/07

Section 312 Final Rule Bulletin Issued

The OCC has issued a Bulletin regarding the previously announced FinCEN Final Rule concerning Section 312 of the USA PATRIOT Act. Information regarding the Final Rule was posted in the August 9, 2007 BOL Top Stories. Bulletin  8/29/07

FOMC Minutes Published

The minutes of the August 7, 2007 meeting of the Federal Open Market Committee have been published by the FRB. Minutes   8/29/07

Employer-Assisted Mortgage Programs Report Released

The OCC has released a Community Developments Insights report entitled, "Understanding Employer-Assisted Mortgage Programs: A Primer for National Banks," which highlights key features of employer assisted mortgage programs and opportunities for bank involvement with these initiatives. Report  8/28/07

Annual Dollar Trigger Final Rule Bulletin Issued

The OCC has issued a Bulletin regarding the previously announced annual adjustment by the FRB to its Regulation Z Commentary related to the dollar amount that triggers requirements for certain home mortgage loans. Information concerning the 2008 dollar amount was posted in the August 7, 2007 BOL Top Stories. Bulletin  8/28/07

Prohibition on Bank Political Contributions Bulletin

The OCC has issued a Bulletin that describes and emphasizes the prohibitions on political contributions or expenditures by national banks pursuant to the Federal Election Campaign Act of 1971. Bulletin  8/28/07

BSA/AML Manual Revised

The Federal Financial Institutions Examination Council (FFIEC) has issued the 2007 Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. Revised Manual; Interagency Statement; FRB SL; FDIC FIL; OCC Bulletin; OTS PR; NCUA PR  8/27/07

Early Savings Bond Redemption Authorized

FRB Financial Services has announced that the early redemption of certain savings bonds has been authorized in specified counties of Minnesota recently affected by severe weather. Early Redemption  8/27/07

Revised Exam Procedures Announced

The OCC has issued a Bulletin that announces the examination procedures for compliance with the provisions of the Telephone Consumer Protection Act and Junk Fax Prevention Act have been revised. Bulletin; Procedures; Worksheet  8/27/07

FRB Legal Interpretations Published

Three legal interpretations have been published by the FRB regarding: 1) granting exemptions from section 23A of the Federal Reserve Act and Regulation W for certain securities financing transactions between a bank and an affiliate: and 2) a nonvoting convertible preferred stock investment permissible under section 4(c)(6) of the Bank Holding Company Act. Exemptions; Stock Investment  8/27/07

Preventing and Detecting Child Pornography

The FDIC has issued a FIL regarding the distribution of "Internet Merchant Acquisition and Monitoring Best Practices for the Prevention and Detection of Commercial Child Pornography," a brochure prepared by the Financial Coalition Against Child Pornography. FIL; Brochure  8/27/07

Prohibition Orders Issued

NCUA has issued orders prohibiting five individuals from participating in the affairs of any federally insured financial institution. One former credit union manager was ordered participate in a Pretrial Intervention Program, pay $20,000 in restitution, undergo 36 months of supervised probation, and provide 50 hours of community service. Orders  8/24/07

Mergers and Asset Purchases Working Paper Published

The FRB has published a working paper in the Financial and Economic Discussion Series (FEDS) on the topic of "An Efficiency Perspective on the Gains from Mergers and Asset Purchases". Abstract; Full Paper  8/24/07

FRB Publishes Final Rule in FR for eExtensions of credit by Federal Reserve Banks (Regulation A):

The Board of Governors of the Federal Reserve System (Board) has adopted final amendments to its
Regulation A to reflect the Board's approval of a reduction in the primary credit rate at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board's primary credit rate action. TXT; PDF  8/24/07

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of the First National Bank of Holdrege, Holdrege, Nebraska. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  8/23/07

Eight New Flood CMPs

The FDIC has announced that eight institutions were recently assessed civil money penalties in excess of $126,000 for flood violations. The year-to-date fines average $3,927 per day for a current total of $914,941. Annualized, at the current pace, $1.4 Million in files will be imposed in 2007. Information regarding all of the fines has been posted on the BOL Flood Penalties Watch page.  8/23/07

Change in Control Legal Interpretation Released

A legal interpretation has been released by the FRB regarding an inquiry on the appropriate risk-based capital treatment of certain collateralized loans of cash under the Board's risk-based capital guidelines for state member banks and bank holding companies. Interpretation  8/23/07

Second Quarter Bank Earnings Released

The FDIC has released the earnings at FDIC insured banks for the second quarter 2007. Summary; Full Report  8/23/07

Mid-Year CU Earnings Released

NCUA has released the earning at federally insured credit unions for the second mid-year 2007. Summary; Full Report  8/23/07

Consumer Foreclosure Resources Webpage

The FRB has created a Web page that contains links to regulatory information for consumers having difficulty making mortgage payments. Webpage  8/23/07

FATF Annual Report Issued

The Financial Action Task Force (FATF) has issued its Annual Report which provides an overview of the achievements of the FATF against its mandate over the course of 2006-2007. FATF is an inter-governmental body whose purpose is the development and promotion of national and international policies to combat money laundering and terrorist financing. Abstract; Full Annual Report  8/23/07

Enforcement Actions Announced

The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in June 2007. List  8/22/07

Compliance Risk Workshop Scheduled

The OCC will hold a compliance risk workshop for community bank directors on September 25, 2007 in Lexington, Kentucky. The workshop is limited to the first 50 registrants and is geared primarily to outside directors of national community banks with assets of less than $1 billion. Online registration is available. Agenda; Registration   8/22/07

Nontraditional Mortgage Products Bulletin Issued

A Bulletin has been issued by the OCC regarding the previously announced interagency Final Rule contains illustrations of consumer information on nontraditional mortgage products. Information concerning the Final Rule was posted in the June 1, 2007 BOL Top Stories. Bulletin   8/22/07

Thrift Industry Second Quarter Earnings Solid

OTS has reported that the nation's thrift industry posted solid earnings and profitability in the second quarter of 2007 despite the effects of a slowing housing market and flat-to-inverted yield curve. Highlights; Charts; Selected Indicators  8/22/07

Transaction Costs Working Paper Published

A working paper in the Financial and Economic Discussion Series (FEDS) on the topic of "Transaction Costs and Consumption" has been published by the FRB. Abstract; Full Paper  8/22/07

Large Commercial Banks Report Issued

The FRB has issued the Report of Insured U.S. Chartered Commercial Banks That Have Consolidated Assets of $300 Million or More, Ranked by Consolidated Assets as of June 30, 2007. Report  8/22/07

Wyoming State Quarter Information Available

FRB Financial Services have published information regarding the distribution of the Wyoming State quarter. Quarter  8/22/07

FinCEN Launches Search Engine

A new search engine has been launched by FinCEN which allows users to search through more than 220 file types, including forms and regulations. Users will also have the capability to sort results by relevancy or date and the option to fine tune searches for all materials. Search Engine  8/21/07

Cross-Shipping Waivers Granted

FRB Financial Services has announced that cross-shipping waivers may be granted for certain weather related and natural disasters. Waivers  8/21/07

Second Quarter 2007 TRF Data Released

OTS has released the Aggregated Thrift Financial Report (TFR) Data for the 2nd Quarter 2007. TRF  8/21/07

FHC List Published

The list of bank holding companies that have elected as of August 17, 2007 to be treated as financial holding companies (FHCs) has been published by the FRB. List  8/21/07

Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with data current as
of August 17, 2007. Reserve Position  8/21/07

Counterfeit Cashier's Checks Special Alerts

The FDIC has issued two Special Alerts regarding counterfeit cashier's checks bearing the names of the Mid-America Bank, Baldwin City, Kansas, and Pacific Global Bank, Chicago, Illinois. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  8/20/07

Fed Reduces Rates

The FRB has approved a 50 basis point reduction in the primary credit rate to 5-3/4 percent which narrows the spread between the primary credit rate and the Federal Open Market Committee (FMOC) target federal funds rate to 50 basis points. In addition, the FRB will allow the provision of term financing for as long as 30 days, renewable by the borrower. Rate; FOMC Statement  8/20/07

314a Fact Sheet Updated

FinCEN has updated the 314a Fact Sheet and the Law Enforcement Information Sharing with the Financial Industry Report with data current as of August 15, 2007. 314a; Sharing Report  8/20/07

FDIC Consumer News 2007 Summer Special Edition

The FDIC has published the Summer 2007 issue of the FDIC Consumer News, a Special Edition featuring 51 Ways to Save Hundreds on Loans and Credit Cards. Consumer News  8/20/07

Reserve Position Report Issued

Treasury has issued the U.S. International Reserve Position Report for August 10, 2007. Reserve position Report  8/20/07

Worthless and Counterfeit Checks Alerts

The OCC has issued an Alert regarding worthless checks listing The United Cities Corp., Miami, Florida, as the maker, drawn on an unknown entity by the name of TUC Private Currency Office, Kissimmee, Florida, and using an invalid ABA routing number. In addition, the FDIC has issued a Special Alert regarding counterfeit official checks bearing the name of Century Bank, FSB, Santa Fe, New Mexico. Information concerning the worthless and counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  8/17/07

September HOEPA Rates Posted

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for which applications are received in September 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  8/17/07

FRB Publishes Technical Amendment to Availability of Funds and Collection of Checks

The FRB is amending appendix A of Regulation CC to delete the reference to the Helena branch office of the Federal Reserve Bank of Minneapolis and reassign the Federal Reserve routing symbols currently listed under that office to the Denver branch office of the Federal Reserve Bank of Kansas City.TXT; PDF  8/17/07

Written Agreements Announced

The FRB has announced that it has entered into two written agreements, one by and among Marco Community Bank, Marco Island, Florida, the Florida Office of Financial Regulation, and the Federal Reserve Bank of Atlanta; and the other by and among Anadarko Bank & Trust Company, Anadarko, Oklahoma, the Oklahoma State Banking Department, and the Federal Reserve Bank of Kansas City. Marco Agreement; Anadarko Agreement  8/17/07

June Receivables Report Released

The G.20 Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit Report for June 2007 has been released by the FRB. G.20  8/17/07

FR Bulletin Statistical Supplement Published

The July 2007 Statistical Supplement to the Federal Reserve Bulletin has been published. Supplement  8/17/07

46 Names Added To OFAC List

OFAC has added 23 individuals and 23 companies tied to a leader of Colombia's North Valle drug cartel to the SDN list with the designation of Specially Designated Narcotics Traffickers (SDGT). Information regarding the additions has been posted on the BOL OFAC page.  8/16/07

Consumer Credit Score Tips Brochure

The FRB has issued a consumer brochure containing five tips for ways to improve a credit score. Brochure  8/16/07

August FedFlash Published

FRB Financial Services has published the August 2007 issue of FedFlash which contains articles on minimizing the impact of Check Relay changes, compliance with Check 21, same-day Federal tax payment wire transfers, new FedReceipt RTNs, and cash letter deferment deadlines. FedFlash  8/16/07

Credit Scoring Report Delivered to Congress

As required by the Fair and Accurate Credit Transactions Act of 2003, the FRB and the FTC have delivered a report to Congress regarding the effects of credit scoring on credit and insurance markets. Report  8/16/07

Defined Benefit Pension Plans Working Paper

The FRB has published a working paper in the Finance and Economic Discussion Series (FEDS) on the topic of "Why Do Firms Offer Risky Defined Benefit Pension Plans?". Abstract; Full Paper  8/16/07

Cost of Funds Reports Issued

OTS has issued the historical and current National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions Reports for August 15, 2007. Historical; Current  8/16/07

June 2007 TIC Data

Treasury has issued the TIC Data Report for June 2007. TIC  8/16/07

Industrial Production Report Released

The G.17 Industrial Production and Capacity Utilization Report for July 2007 has been released by the FRB. G.17  8/16/07

Counterfeit Checks Special Alerts

The FDIC has issued five Special Alerts regarding stolen expense checks and counterfeit cashiers, official and treasurer's checks bearing the names of the following institutions:

• Sun West Bank, Las Vegas, Nevada (Stolen Expense Checks);
• First State Bank of Newcastle, Newcastle, Wyoming (Counterfeit Cashier's Checks);
• MainSource Bank, Greensburg, Indiana (Counterfeit Official Checks);
• Merchants Bank, Burlington, Vermont (Counterfeit Treasurer's Checks); and
• Bank of Tennessee, Kingsport, Tennessee (Counterfeit Official Checks).

Information concerning the stolen and counterfeit items has been posted on the BOL Alerts & Counterfeits page.   8/15/07

Consumer Subprime Lending Illustrations Proposed

The federal financial regulatory agencies are requesting comments on proposed illustrations of consumer information for certain adjustable-rate mortgage (ARM) products described in the agencies previously issued Statement on Subprime Mortgage Lending (Subprime Statement). Information regarding the Subprime Statement was posted in the July 2, 2007 BOL Top Stories. Illustrations; Statement; FRB PR; OCC NR; FDIC FIL; OTS PR; NCUA PR  8/15/07

$16,245 Flood Violation CMP Announced

The FRB has announced the issuance of a consent Order of Assessment of a Civil Money Penalty (CMP) of $16,245 against Chemical Bank, Midland, Michigan, in connection with alleged violations of the Board's Reg. H which implements the National Flood Insurance Act. Read about this and other flood related civil money penalties on BOL Flood Penalties Watch.  8/15/07

Enforcement Actions Announced

The OCC has announced new enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks. Actions  8/15/07

Flood Relief Guidance Updated

The FDIC has issued a FIL announcing the update of a previously issued Guidance regarding a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in additional areas of Texas and Oklahoma that are suffering from storms and flooding. FIL  8/15/07

Entity Added To OFAC List

An entity designated as a SDGT has been added to the OFAC SDN List. Information regarding the addition has been posted on the BOL OFAC page.  8/14/07

CRA Ratings Released

The OCC has released the ratings received by twenty-two national banks that were recently evaluated for compliance with the provisions of the CRA. Ratings  8/14/07

FRB Restructures Check Processing Operations

The FRB has announced amendments effective October 20, 2007, to Appendix A of Regulation CC that reflect the restructuring of the Federal Reserve's check processing operations in the Ninth and Tenth Districts. These amendments are part of a series of amendments to Appendix A associated with the previously-announced restructuring of the Reserve Banks' check processing operations. Amendments  8/14/07

Pandemic Readiness Testing Urged

The Federal Financial Institutions Examination Council (FFIEC) agencies are inviting financial institutions to participate in the Treasury sponsored industry-wide business continuity exercise for members of the financial services sector. The purpose of the exercise is to test the financial sector's ability to respond to a pandemic like crisis, such as an influenza pandemic. The exercise will simulate one wave of a pandemic like event and is scheduled to begin September 24, 2007, and conclude on October 10, 2007. Test; OCC NR; FFIEC PR  8/14/07

FEDS Executive Compensation Working Paper Published

A working paper in the Finance and Economics Discussion Series (FEDS) on the topic of " Executive Compensation: A New View from a Long-Term Perspective, 1936-2005" has been published by the FRB. Abstract; Full Paper  8/14/07

Loan Officer Opinion Survey Results

The FRB has issued the results of the July 2007 Senior Loan Officer Opinion Survey on Bank Lending Practices. Summary; Full Report  8/14/07

Counterfeit Official Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit official checks bearing the name of Sentry Bank & Trust, Cheraw, South Carolina. Information concerning the counterfeit official checks has been posted on the BOL Alerts & Counterfeits page.  8/13/07

CRA Ratings Announced

The OTS has announced the ratings received by savings associations recently evaluated for compliance with the provisions of the CRA. Ratings  8/13/07

Fed To Provide Liquidity

The Federal Reserve has announced that it will provide reserves as necessary through open market operations to promote trading in the federal funds market at rates close to the Federal Open Market Committee's (FOMC) target rate of 5-1/4 percent. Fed  8/13/07

SSN Use SR Letter Issued

The FRB has issued a SR Letter regarding the previously announced request for comments by the FTC on the use of SSNs in the financial services industry, and within the private sector more generally, in response to recommendations established by the President's Task Force on Identity Theft. SR Letter; Comments  8/13/07

CMPs Announced

The Treasury has announced the civil money penalties (CMPs) recently assessed individuals and entities for violations of various OFAC Sanctions Programs. No financial institutions were listed. CMPs  8/13/07

Community Bank Directors Compliance Risk Workshop

The OCC will a Compliance Risk Workshop for community bank directors on September 11, 2007 in Little Rock, Arkansas. The workshop entitled, "Compliance Risk: What Directors Need to Know," will provide practical information to expand bank directors' skills and understanding of issues facing their banks. Workshop; Registration  8/13/07

Counterfeit Checks and Money Orders Special Alerts

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

• Pinnacle Bank, Lincoln, Nebraska (Counterfeit Cashier's Checks);
• Citizens Bank, Batesville, Arkansas (Counterfeit Cashier's Checks);
• American National Bank of Sidney, Sidney, Nebraska (Counterfeit Money Orders); and
• Muenster State Bank, Muenster, Texas (Counterfeit Cashier's Checks).

Information concerning the counterfeit items has been posted on the BOL Alerts & Counterfeits page.   8/10/07

Flood Violation CMP Assessed

The FRB has announced the issuance of a consent Order of Assessment of a Civil Money Penalty in the amount of $8,835 against Hanmi Bank, Los Angeles, California, in connection with the institution's alleged violations of the Board's Reg H implementing the National Flood Insurance Act. CMP  8/10/07

Fake "Guarantees" or "Proof of Funds" Letters Special Alert

The FDIC has issued a Special Alert regarding the publication of a "Warning Notice" by the Office of the Superintendent of Financial Institutions (OSFI) of Canada concerning "guarantees" or "proof of funds" letters reflecting the name Banco Central del Ecuador that are circulating in international financial markets. Special Alert  8/10/07

State of the Economy Working Paper Published

A working paper in the Finance and Economic Discussion Series (FEDS) on the topic of "News, Noise, and Estimates of the 'True' Unobserved State of the Economy" has been published by the FRB. Abstract; Full Paper  8/10/07

OCC Booklet to Help Banks Fight Child Pornography

In a letter to CEOs of national banks and other interested groups, Comptroller Dugan announced that the OCC is collaborating with The Financial Coalition Against Child Pornography to distribute a booklet, "Internet Merchant Acquisition and Monitoring Best Practices for the Prevention and Detection of Commercial Child Pornography", to national banks and other interested parties. Booklet  8/10/07

Five Counterfeit Cashier's Checks Alerts Issued

The OCC has issued one Alert and the FDIC has issued four Special Alerts regarding counterfeit cashier's checks issued in or bearing the names of the following institutions:

• The First, National Association, Damariscotta, Maine;
• Town Center Bank, Frankfort, Illinois;
• Northmark Bank, North Andover, Massachusetts;
• First National Bank of the Mid-Cities, Bedford, Texas; and
• Jefferson Bank of Missouri, Jefferson City, Missouri.

Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  8/09/07

Section 312 of the USA PATRIOT ACT Final Rule Issued

FinCEN has issued a Final Rule which implements a key provision of Section 312 of the USA PATRIOT Act by clarifying the risk-based procedures that U.S. financial institutions should use in tailoring their enhanced due diligence to assess the risks of some foreign banking relationships. The rule applies to the accounts of three specific and relatively small categories of foreign banks, including those with an offshore banking license and certain high-risk banks subject to well-recognized international or Treasury determinations. Final Rule  8/09/07

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among Marshall BankFirst Corp., Minneapolis, Minnesota; BANKFIRST, Sioux Falls, South Dakota; the South Dakota Department of Revenue and Regulation, Division of Banking; and the Federal Reserve Bank of Minneapolis. Agreement  8/09/07

First Quarter Issue Quarterly Review of Interest Rate Risk Published

OTS has published the First Quarter 2007 issue of the "Quarterly Review of Interest Rate Risk" which features a Q & A with Indymac Bank's Chris Pappalardo on ALM Models. Quarterly Review   8/09/07

IFDP Working Papers Published

Two working papers in the International Finance Discussion Papers (IFDP) series on the topics of "Three Great American Disinflations" and "What Can the Data Tell Us about Carry Trades in Japanese Yen?" have been published by the FRB. Three Abstract; Three Full Paper; What Abstract; What Full Paper   8/09/07

Reserve Position Updated

Treasury has updated the U.S. International Reserve Position Report with data current as of August 3, 2007. Reserve Position  8/09/07

Counterfeit Checks Special Alerts

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

• Indiana First Savings Bank, Indiana, Pennsylvania (Counterfeit Official Checks);
• Financial Bank USA, Dakota Dunes, South Dakota (Counterfeit Bank Checks);
• Union Bank and Trust Company, Lincoln, Nebraska (Counterfeit Cashier's Checks); and
• Paragon National Bank, Memphis, Tennessee (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  8/08/07

Fed Funds Rate Unchanged

The Federal Open Market Committee has announced that it has decided to keep the target for the federal funds rate at 5-1/4 percent. Rate  8/08/07

Unauthorized Banking Alert

The OCC has issued an Alert regarding IFT Bank, N.A. aka IFT N.A., an entity that is not authorized to conduct banking activities, that is representing itself as a national bank on the Internet and is offering banking products and services to the general public. Alert  8/08/07

Business Relationships and Director Interlocks Legal Interpretations Published

The FRB has published two legal interpretations regarding whether or not certain proposed investments, proposed business relationships and director interlocks between investors and a financial institution would cause the investors to be deemed in control of the financial institution for purposes of the Bank Holding Company Act. Legal 1; Legal 2  8/08/07

OTS To Hold Housing Forum

OTS will hold its Second Annual National Housing Forum (NHF) on December 3, 2007, at the National Press Club in Washington, D.C. The NHF will address the outlook for housing markets nationwide, challenges and risks in the home mortgage market, the influence of the capital markets on the housing sector, and key consumer protection issues, including the growing problem of foreclosures, and other issues. NHF  8/08/07

FDIC Issues Stakeholder Letter

A FIL has been issued by the FDIC regarding the publication of a Letter to Stakeholders which reports on the regulator's priorities and activities for the second quarter of 2007. FIL; Letter  8/08/07

Consumer Credit Report Released

The FRB has released the G. 19 Consumer Credit Report for June 2007. G. 19   8/08/07

Monetary Policy FEDS Working Paper Published

A working paper in the Finance and Economic Discussion Series (FEDS) on the topic of "Robust Monetary Policy with Imperfect Knowledge" has been published by the FRB. Abstract; Full Paper  8/08/07

Eight Counterfeit Alerts Issued

The OCC and the FDIC have issued eight Alerts regarding counterfeit accounts payable, cashier's, official and treasurer's checks issued in or bearing the names of the following institutions:

• Bridgehampton National Bank, Bridgehampton, New York (Counterfeit Accounts Payable Checks),
• Colonial American Bank, West Conshohocken, Pennsylvania (Counterfeit Cashier's Checks),
• Keystone Nazareth Bank & Trust Company, Bethlehem, Pennsylvania (Counterfeit Cashier's Checks),
• First Harrison Bank, Corydon, Indiana (Counterfeit Cashier's Checks),
• Affinity Bank of Pennsylvania, Wyomissing, Pennsylvania (Counterfeit Cashier's Checks),
• Bank of the Sierra, Porterville, California (Counterfeit Cashier's Checks),
• Skylands Community Bank, Hackettstown, New Jersey (Counterfeit Treasurer's Checks), and
• Commercial Bank & Trust Company, Paris, Tennessee (Counterfeit Official Checks).

Information concerning the counterfeit items has been posted on the BOL Alerts & Counterfeits page.  8/07/07

CMP Assessed Against American Express Entities

The FRB and FinCEN have announced the assessment of $20 million in civil money penalties (CMP) against American Express Bank International (AEBI) of Miami, Florida, for violations of the Bank Secrecy Act (BSA). In addition, FinCEN announced a separate $5 million civil money penalty against American Express Travel Related Services Company, Inc., a money services business, located in Salt Lake City, Utah, also for violations of the BSA. Adding in a related Department of Justice Deferred Prosecution Agreement and forfeiture order, the two companies are obliged to pay a total of $70 million. A summary of the orders has been added to BOL's BSA/AML Penalties Page. FRB CMP; FinCEN CMP  8/07/07

Names Added to OFAC List

OFAC has announced that one name has been added to the SDN list in addition to several entities. Information regarding the deletions has been posted on the BOL OFAC page.  8/07/07

FRB Publishes Final Rule in FR for Truth in Lending (Reg Z)

The Board is publishing a final rule amending the staff commentary that interprets the requirements of Regulation Z (Truth in Lending). The Board is required to adjust annually the dollar amount that triggers requirements for certain home mortgage loans bearing fees above a certain amount. In keeping with the
statute, the Board has annually adjusted the $400 amount based on the annual percentage change reflected in the Consumer Price Index that is in effect on June 1. The adjusted dollar amount for 2008 is $561.TXT; PDF  8/07/07

CRA Ratings Released

The FDIC has issued the list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Ratings   8/07/07

Counterfeit and Stolen Checks Special Alerts

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

• Liberty Bank, Geraldine, Alabama (Counterfeit Cashier's Checks);
• Citizens First Bank, Wartburg, Tennessee (Stolen Certificate of Deposit Interest Checks); and
• First Georgia Banking Company, Franklin Georgia (Counterfeit Official Checks).

Information concerning the counterfeit and stolen checks has been posted on the BOL Alerts & Counterfeits page.  8/06/07

Executive Order Blocks Property of Persons Undermining the Sovereignty of Lebanon

President Bush has issued an Executive Order blocking the property and interests in property of persons determined by the Secretary of the Treasury to have taken, or to pose a significant risk of taking, actions, including acts of violence, that have the purpose or effect of (1) undermining Lebanon's democratic processes or institutions; (2) contributing to the breakdown of the rule of law in Lebanon; (3) supporting the reassertion of Syrian control or contributing to Syrian interference in Lebanon; or (4) infringing upon or undermining Lebanese sovereignty. Since no determinations have been made at the present time, no new entries have been added to the OFAC SDN List. Executive Order  8/06/07

OTS Publishes Proposed Rulemaking for Unfair or Deceptive Acts or Practices in Federal Register

OTS has issued an Advance Notice of Proposed Rulemaking (ANPR) seeking public comment on approaches for the OTS to consider in expanding its regulatory authority to address unfair or deceptive acts or practices (UDAP) in the thrift industry. Public comments are sought on whether, and how, a UDAP regulation could provide greater clarity to supervised institutions and benefit customers by promoting fair and equitable practices in lending, deposit-taking and related activities. ANPR; TXT; PDF  8/06/07

Treasury Issues Economic Update

An U.S. economic update as of August 3, 2007 has been issued by Treasury. Update  8/06/07

Town Hall Meeting Registration Available

Online registration is now available for the last of the NCUA 2007 Outreach Task Force Town Hall meetings to be held on October 2, 2007, in Washington, D.C. Registration  8/06/07

Working Papers Published

A working paper in the Finance and Economics Discussion Series (FEDS) has been published by the FRB on the subject of "Labor Reallocation over the Business Cycle: New Evidence from Internal Migration". The OCC has also published a working paper on the subject of "Loss Given Default of High Loan-to-Value Residential Mortgages". Labor Abstract; Labor Full Paper; Loss Full Paper  8/06/07

Counterfeit Cashier's and Official Checks Alerts

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Winona National Bank, Winona, Minnesota. In addition, the FDIC has issued two Special Alerts regarding counterfeit official checks bearing the names of Colony Bank of Dodge County, Eastman, Georgia, and Farmers & Merchants Bank, Eatonton, Georgia. Information concerning the counterfeit cashier's and official checks has been posted on the BOL Alerts & Counterfeits page.  8/03/07

Order of Prohibition Issued

The FRB has issued a Consent Order of Prohibition against Richard N. DeLong, a former chief lending officer, director, and institution-affiliated party of Mid America Bank and Trust Company, Dixon, Missouri. The action resulted from his alleged participation in unsafe and unsound practices and breaches of fiduciary duty to the Bank involving the Bank's granting of loans to alleged nominee borrowers and the granting of loans based on allegedly false purpose statements, to the alleged misapplication of loan proceeds, and to the alleged submission of false and misleading information to the Bank's board of directors. Order  8/03/07

New Electronic Interpretations and Actions Announced

The OCC has announced and posted online the July 2007 New Electronic Interpretations and Actions. Electronic  8/03/07

Seminar for Thrift Financial Managers Scheduled

OTS will hold a seminar for Thrift Financial Managers which is designed for chief executive officers, chief financial officers, controllers, or others responsible for accounting and financial reporting. The agenda focuses on various technical accounting issues, and regulatory capital standards. The sessions are scheduled for September 11 in Denver, Colorado; September 13 in Los Angeles, California; and September 17 in Seattle, Washington. Seminar  8/03/07

FDIC and China Sign MOU

A Memorandum of Understanding (MOU) has been signed by the FDIC and the People's Republic of China. The is designed to forge a formal international working relationship between the two entities, with the purpose of developing expanded methods of interaction on economic and financial issues. MOU  8/03/07

Reg Z Loan Disclosures Triggers Adjusted

The FRB has published the amendment to Reg Z regarding the annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for home mortgage loans that bear rates or fees above a certain amount. The adjustments are effective January 1, 2008. Adjustments  8/02/07

Cross-Shipping Waiver Request Forms Available

In limited circumstances, the Federal Reserve Banks will waive the cross-shipping fees that went into effect on July 2, 2007. Customers who experience special circumstances that they believe qualify for a waiver should notify their Federal Reserve cash office within 5 days of the onset of the situation and submit the waiver request form. Waiver Information; Form  8/02/07

314a Fact Sheet Update

Fin CEN has updated the 314a Fact Sheet and the Law Enforcement Information Sharing with the Financial Industry Report with data current as of July 31, 2007. 314a; Report  8/02/07

NCUA Publishes Final Rule in FR for Records Preservation Program and Appendices—Record Retention
Guidelines

This final rule clarifies the meaning of catastrophic act and the requirements for preserving vital records. The agency also provides a new Appendix B that offers guidelines for developing a program to prepare for a catastrophic act.TXT; PDF  8/02/07

TBAC Meeting Minutes Released

Treasury has released the minutes of the July 31, 2007 meeting of the Minutes of the Meeting of the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association (TBAC). Minutes   8/02/07

August FedFlash Online

FRB Financial Services has posted online the August 1, 2007 issue of FedFlash which contains articles on accessing Technical and Service-Setup Support starts with having current CCC telephone numbers, the Treasury check data verification service, the released date for the Thomas Jefferson $1 coin, a savings bond seminar series, and changes to consolidated deadlines. FedFlash  8/02/07

Summer 2007 Community Liaisons Published

OTS has published the Summer 2007 issue of Community Liaisons, the regulator's community affairs newsletter. Community Liaisons  8/02/07

Foreign Exchange Rates Report Issued

The G.5 Foreign Exchange Rates Report for July 2007 has been issued by the FRB. G.5   8/02/07

Counterfeit Money Orders Alert

The OCC has issued an Alert regarding counterfeit money orders issued in the name of The Canandaigua National Bank & Trust, Canandaigua, New York. Information concerning the counterfeit money orders has been posted on the BOL Alerts & Counterfeits page.  8/01/07

Fraudulent Correspondence Alert

An Alert has been issued by the OCC regarding fraudulent correspondence that appears to be from the OCC regarding funds controlled by the European Commission. The letter is being sent to United States bank customers in an attempt to elicit funds from them. Alert  8/01/07

Mortgage Banking Bulletin and CEO Letter Issued

OTS has issued a Regulatory Bulletin and a CEO Letter regarding Mortgage Banking. Bulletin; CEO Letter  8/01/07

NCUA Proposes Rulemaking for Permissible Foreign Currency Investments for Federal and Corporate Credit Unions

NCUA is considering whether to amend its investment rules to permit natural person federal credit unions
(FCUs) and corporate credit unions (corporates) to make certain investments denominated in foreign currency.TXT; PDF  8/01/07

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with data current as of July 27, 2007. Reserve Position  8/01/07

Receivables and Auto Loans Report Issued

The G.20 Owned and Managed Receivables Outstanding and Auto Loans: Terms of Credit Report for May 2007 has been issued by the FRB. G.20  8/01/07