Top Stories for June 2005

WMD Providers Added To OFAC List

President Bush has issued an Executive Order which designates and adds to OFAC's SDN list eight organizations in North Korea, Iran and Syria responsible for WMD and missile programs. Information regarding the organizations has been posted on the BOL OFAC page.   6/30/05

FACT Act Deadline Approaches

Under the consumer information disposal rules promulgated under the FACT Act, all financial institutions should ensure their information security programs are revised, if necessary, by July 1, 2005 to address the proper disposal of information derived from credit reports.
Final Rule   6/30/05

FFIEC CDR Required Enrollment Begins Soon

The FFIEC Call Report agencies (the FDIC, the FRB and the OCC) have created a secure, shared database for collecting, managing, validating and distributing Call Report data which will be implemented for the third Call Report period of 2005 and will be the only method available for banks to submit their Call Reports. In preparation for the October 2005 implementation of the CDR, financial institutions are required to enroll in the CDR during an eight-week period beginning in July, 2005.
CDR Enrollment;
CRD Information   6/30/05

SEC Charges Individuals In Bank Stock Fraud Scheme

The SEC has announced the filing of civil fraud charges against five individuals in connection with the initial public offering of NewAlliance Bancshares, Inc.
Charges;
Complaint   6/30/05

FOMC 2006 Schedule Announced

The Federal Open Market Committee has announced its tentative meeting schedule for 2006.
Schedule   6/30/05

June Call Report Information

A FIL has been issued by the FDIC which provides information and forms for the June 30, 2005 Call Report.
FIL   6/29/05

Enforcement Orders Issued

The FRB has announced the issuance of an Order of Prohibition and Order to Cease and Desist against a former financial advisor at J.P. Morgan Chase & Co., New York, New York, based on his alleged participation in violations of law and breaches of fiduciary duty to the bank and its customers.
Orders   6/29/05

Counterfeit Checks Special Alerts

The FDIC has issued two Special Alerts regarding counterfeit official checks drawn on America California Bank, San Francisco, California, and counterfeit expense checks drawn on First Coweta Bank, Newnan, Georgia. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   6/29/05

Mutual-to-Stock Conversions Investor Guidance Issued

The FDIC, SEC and OTS have issued an Investor Alert which provides useful information on mutual-to-stock conversions and highlights key concepts that eligible depositors need to be mindful of when participating in the initial public offering of a converting mutual bank or savings association.
Guidance;
FDIC Special Alert   6/29/05

International Reserve Position Updated

Treasury has updated the U. S. International Reserve Position report to include data as of June 24, 2005.
Reserve Position   6/29/05

FRB Cash Infrastructure Changes Announced

The Federal Reserve Banks have announced changes to cash services that are intended to improve operating effectiveness by switching in the next six to twelve months from branch-based cash services to cash depots in Birmingham, Ala.; Oklahoma City, Okla.; and Portland, Ore.
Changes   6/29/05

Structure And Share Data Report Released

The March 2005 Structure and Share Data for U.S. Offices of Foreign Banks report has been released by the FRB.
Structure And Share Data   6/29/05

Spring 2005 Federal Reserve Bulletin Published

The Spring 2005 issue of the Federal Reserve Bulletin has been published and posted online.
Spring 2005 FRB Bulletin   6/29/05

Summer 2005 State Profiles Issued

The FDIC has issued the State Profiles for the Summer of 2005 which provide a quarterly summary of state banking and economic conditions.
State Profiles   6/29/05

FDIC Says New Internet Banking Safeguards Needed

A supplement to an FDIC study issued in December about ways to fight "phishing" scams indicates that new ways are needed to safeguard Internet banking. The FDIC has concluded that the risk assessment financial institutions are required to perform regarding information security also should utilize "multifactor authentication” to verify a customer's identity.
Supplement   6/28/05

Summer Issue Supervisory Insights Released

The FDIC has issued a FIL announcing the release of the Summer 2005 issue of Supervisory Insights, a professional journal that promotes the practice of bank supervision, which includes articles on the following topics: "A Changing Rate Environment Challenges Bank Interest Rate Risk Management"; "Fair Lending Implications of Credit Scoring Systems"; and "The Changing Landscape of Indirect Automobile Lending".
FIL;
Supervisory Insights   6/28/05

Financial Holding Company List Update

The FRB has revised the list of bank holding companies that have elected to the treated as financial holding companies as of June 24, 2005.
FHCs   6/28/05

BOS Released

OTS has released the results of its 2005 annual branch office survey.
BOS   6/28/05

Counterfeit Cashier's Check Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Parish National Bank of Covington, Louisiana that are being presented for payment. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  6/27/05

Survey of Terms of Business Lending Results Released

The FRB has released the results of the E.2 Survey of Terms of Business Lending for May 2-6. 2005.
E.2   6/27/05

Derivatives Volume Tops $90 Trillion

The OCC has reported that the derivatives volume for the first quarter 2005 has topped $90 Trillion.
Derivatives   6/27/05

Summer 2005 FDIC Outlook Published

The FDIC has published the Summer 2005 edition of FDIC Outlook which features a series of reports by FDIC analysts addressing several different aspects of expanding global trade and finance.
FDIC Outlook   6/27/05

CRA Evaluations Released

The OCC has released the CRA evaluations for thirty-one national banks examined for CRA compliance that became public during the period of May 15, 2004 through June 14, 2005. CRA  6/24/05

Greenspan Speaks Out On China

In testimony before the Senate Committee on Finance, Chairman Greenspan expressed his views on China's trade and exchange rate regime. He noted that he was aware of no credible evidence that supports the conclusion that a marked increase in the exchange value of the Chinese RMB relative to the U.S. dollar would significantly increase manufacturing activity and jobs in the United States. Testimony  6/24/05

Counterfeit Checks Special Alerts Issued

The FDIC has issued two Special Alerts regarding counterfeit official checks drawn on Gate City Bank, Fargo, North Dakota and counterfeit cashier's checks drawn on Bank of the Pacific, Aberdeen, Washington. Information regarding the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   6/23/05

Bulletin Issued Regarding TISA Final Rule

The OCC has issued a Bulletin concerning the previously announced Final Rule under the Truth in Savings Act (Reg DD) which addresses bounced check or courtesy overdraft protection and requires institutions to disclose total fees for these services on periodic statements for both the statement period and the calendar year to date. Information about the Final Rule was posted in the BOL Top Stories on May 24, 2005. Bulletin   6/23/05

June 2005 New Electronic Interpretations and Actions Announced

The OCC has announced the New Electronic Interpretations and Actions for June 2005.
Interpretations and Actions   6/23/05

314(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet to include data as of June 21, 2005.
314(a) Fact Sheet   6/23/05

Alert Issued For Bogus Emails

The FTC has issued a Consumer Alert regarding bogus emails containing false and misleading information about the alleged release of personal information starting July 1, 2005 by the major credit bureaus. Consumer Alert   6/22/05

Regulators Urge New Approach to Consumer Disclosure Requirements

In testimony before the Senate Banking Committee, acting Comptroller of the Currency Williams, FDIC Vice Chairman Reich and acting OTS Director Riccobono each spoke in favor of regulatory burden relief legislation to streamline the massive consumer disclosure requirements and improve the quality of information provided to consumers.
Williams Statement;
Williams Testimony;
Riccobono Statement
Reich Testimony;   6/22/05

FRB Issues Assets Reports

The 3.12 U.S. Reserve Assets and 3.13 Foreign Official Assets Held at Federal Reserve Banks reports have been issued by the FRB.
Reports   6/21/05

Minority-Owned Banks Data Released

The FRB has released the list of minority-owned banks and their branches as of March 31, 2005.
Minority-Owned Banks http://www.federalreserve.gov/releases/mob/current/default.htm   6/21/05

Aggregate Exposure Reports Issued

OTS has issued the First Quarter 2005 Interest Rate Exposure Reports for the FHLB 11th District, the Northeast, the Southeast, the Midwest; the West; the State of Ohio; Assets > $1 Billion; Assets $100 Million to $1 Billion; and Assets < $100 Million.
11th District;   
Northeast;   
Southeast;   
Midwest;   
West;   
Ohio;   
Assets > $1 Billion;   
Assets $100 Million to $1 Billion;   
Assets < $ 100 Million   6/21/05

OCC Files Suit Against NY AG

A suit has been filed against the New York Attorney General by the OCC, seeking a declaratory judgment and preliminary injunction to prevent him from interfering in the OCC's fair lending examination and supervision processes at national banks. News Release; Motion for Preliminary Injunction;
Compliant; Memo In Support of Motion  6/20/05

Iraq Insurgency Financial Supporter Added To OFAC List

Treasury has added the name of an individual who is a financial facilitator and instrumental in providing guidance, financial support and coordination of insurgent attacks throughout Iraq to the SDN list. Information regarding the individual has been posted on the BOL OFAC page which also contains the updated BOL OFAC Sanctions Matrix.  6/20/05

Order of Prohibition Issued

The FRB has announced that an Order of Prohibition has been issued against a former branch manager of the former Farmers Bank of Maryland, Annapolis, Maryland, for alleged embezzlement of funds and falsification of the bank's books and records. Order.  6/20/05

New FedFlash Issue Published

The June 17, 2005 issue of FedFlash has been published by FRB Services. The issue features information regarding service fees, the noncash collection service paying agent database, a Check 21 cash letter form, the updated FedACH Security Procedure Agreement and new services available through the FedLine Web. FedFlash.  6/20/05

OFAC Amends Sudanese Sanctions

OFAC has amended its Sudanese Sanctions Regulations pertaining to the transfer of funds from the United States to Sudan, as well as the operation of accounts in U.S. financial institutions for individuals ordinarily resident in Sudan. Information regarding the amendments has been posted on the BOL OFAC page.  6/17/05

July HOEPA Reference Rates Posted

The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in July 2005 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; < href="http://www.federalreserve.gov/releases/h15/Current/">Weekly H. 15  6/17/05

OTS Updates Examination Handbook

The Asset Quality section of the OTS Examination Handbook has been updated with a new section added and others being substantially revised. Handbook  6/17/05

FFIEC Posts Comment Letters

Comment Letters received by the FFIEC regarding the proposed advisory on the limitation of liability provisions in audit engagement letters have been posted on the FFIEC Web site. Comment Letters; Proposal  6/17/05

Call Report Validation Criteria for June 2005 Posted

The FFIEC has posted the June 2005 Call Report Validation Criteria. Criteria (Excel); Criteria (PDF)  6/17/05

First Quarter Household Debt Service Report Released

The FRB has released the Household Debt Service and Financial Obligations Ratios report for the First Quarter 2005. Report  6/17/05

May G.17 Industrial Production Report Issued

The G.17 Industrial Production and Capacity Utilization report for May 2005 has been issued by the FRB. G.17  6/17/05

Reporting Forms Posted Online

The FFIEC has posted the June 2005 FFIEC 031 and FFIEC 041 reporting forms on its Web site.
Forms  6/16/05

TIC Report Released

Treasury has released the Treasury International Capital (TIC) data for April 2005. TIC  6/16/05

CAC Nominations Sought

The FRB has announced that it is seeking nominations for appointments to its Consumer Advisory Council. Ten new members will be appointed to serve three-year terms beginning in January 2006. Nominations  6/16/05

Beige Book Published

The FRB has published a new edition of the Beige Book containing information collected before June 6, 2005 by the Federal Reserve Banks of current economic conditions in their Districts. Summary; Full Report  6/16/05

Cost Of Funds Reports Released

OTS has released the April 2005 and Historical National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions reports. April; Historical  6/16/05

Enforcement Actions Announced By OCC

The OCC has announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and five terminations of existing enforcement actions. Enforcement Actions  6/15/05

FDIC Issues OFAC FILs

The FDIC has issued two FILs regarding previously announced changes made by OFAC to the SDN List. Information regarding the changes was posted June 1 and June 9, 2005, on the BOL OFAC page. FIL-49-20005; FIL-50-2005  6/15/05

FinCEN Seeks Comments

FinCEN has requested comments on a proposed extension of a currently approved requirement that futures commission merchants and introducing brokers establish a customer identification program. Comments  6/15/05

SEC Issues C&D To Ford Motor Credit

A Cease and Desist Order was issued by the SEC to Ford Motor Credit regarding solicitation information that did not meet SEC requirements being provided to prospective investors in the Ford Money Market Account. C & D  6/15/05

Five Counterfeit Checks Special Alerts Issued

The FDIC has issued five Special Alerts regarding: a) counterfeit cashier's checks drawn on The Citizens Banking Company, Sandusky, Ohio; Frontier Bank, Everett, Washington; and Sonoma Valley Bank, Sonoma, California; b) counterfeit trust checks drawn on Pacific Capital Bank, National Association, operating as Santa Barbara Bank & Trust, Santa Barbara, California; and c) counterfeit official checks drawn on Community Bank of Southern Indiana, New Albany, Indiana. Information on all of the counterfeit items has been posted on the BOL Alerts & Counterfeits page.  6/14/05

Unauthorized Banking Special Alert

A Special Alert has been issued by the FDIC regarding Gulf International Bank, Bahrain and Dubai, and Gulf Aviation International, Ltd., Philadelphia, Pennsylvania, that may be conducting unauthorized banking activities. Special Alert  6/14/05

International Reserve Position Update

Treasury has updated the U.S. International Reserve Position report to include data as of June 10, 2005.
Reserve Position   6/14/05

Paying Agent Database Online

Federal Reserve Financial Services has made its Noncash Collection Service Paying Agent Database available online. Database   6/14/05

OFAC Changes Designations And Removes One

OFAC has announced the removal of one individual from the SDN list and changes to other existing entries. Information regarding the removal and the changes has been posted on the BOL OFAC page.  6/13/05

FRB Consumer Information Brochures Published

Two consumer information brochures have been published by the FRB on the subjects of mortgage lock-ins and mortgage settlement costs. Lock-ins; Settlement Costs.  6/13/05

FACT Act Medical Information Interim Rule Published in FR

The interim final rules create exceptions to the statute's general prohibition on creditors obtaining or using medical information pertaining to a consumer in connection with any determination of the consumer's eligibility, or continued eligibility, for credit for all creditors. 70FR33957 txt 70FR33957 pdf 6/10/05

Saddam Supporters Added To OFAC List

Treasury has announced the addition to the SDN list with the IRAQ2 designation of a Syrian-based company and two senior officials that acted on behalf of Saddam Hussein's fallen regime. Information regarding the new entries has been posted on the BOL OFAC page. 6/10/05

CMP Assessments For Flood Violations

The assessment of CMPs against the Bank of Pontiac and the First Bank and Trust Company for alleged violations of the National Flood Act and Reg H has been announced by the FRB.
Bank of Pontiac;
First Bank 6/10/05

Regulators Seek Reduction in Regulatory Burdens

In presentations before the House Subcommittee on Financial Institutions and Consumer Credit, Acting Comptroller Williams; FDIC Vice Chairman Reich; and Acting OTS Director Riccobono all urged Congress to reduce unnecessary regulatory burden on financial institutions.
Williams Testimony;
Reich Testimony;
Riccobono Testimony 6/10/05

Prohibition Orders Issued By NCUA

NCUA has issued orders prohibiting eight individuals from participating in any manner in the affairs of federally insured financial institutions.
Orders 6/10/05

Flow Of Funds Report Issued

The FRB has issued the Z.1 Flow of Funds accounts of the United States for the First Quarter 2005.
Z.1 6/10/05

Greenspan Gives Economic Outlook To Congress

Chairman Greenspan discussed his views regarding the economic outlook in a presentation before the Joint Economic Committee of the U.S. Congress. He noted that despite some of risks, the U.S. economy seems to be on a reasonably firm footing, and underlying inflation remains contained.
Speech 6/10/05

First Quarter Interest Rate Measures Published

OTS has published the First Quarter 2005 Interest Rate Measures report.
Interest Rate Measures 6/10/05

FDIC Launches Hispanic Education Media Campaign

FDIC Chairman Powell has announced the launch of a Hispanic media campaign to raise awareness of the importance of financial education in Hispanic communities across the United States.
Campaign;
En Español 6/10/05

OFAC Fraud Alert

Treasury has issued an Alert regarding a scam involving a contract that looks like it originated from OFAC and contains the forged signatures of OFAC officials. Victims of this scam would allegedly receive a substantial sum of money in exchange for a small initial investment.
Fraud Alert 6/9/05

Summary Of Deposits Survey

The FDIC has issued a FIL concerning the annual Summary of Deposits Survey which all FDIC-insured institutions with branch offices must submit by June 30, 2005 unless they are filing electronically. Forms and instructions will not be mailed out automatically for the 2005 survey; however, instructions, contact information, survey facsimiles and electronic filing information can be found on the FDIC's Interactive SOD Survey Web site.
Survey FIL; SOD Web Site 6/9/05

314a Fact Sheet Updated

FinCEN has updated its 314a Fact Sheet to include data as of June 8, 2005.
314a Fact Sheet 6/9/05

FDIC Interim Rule on 529 Plans Published in FR

The FDIC is revising its insurance regulations for accounts of qualified tuition savings programs under section 529 of the Internal Revenue Code. 70FR33689 txt 70FR33689 pdf 6/9/05

CRA Exam Results Released

The FDIC has issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in March 2005.
CRA List 6/8/05

Enforcement Orders Announced

The FRB has announced the issuance of a Final Decision and Cease and Desist Order against eighteen former institution-affiliated parties of First Western Bank, Cooper City, Florida, and an Order of Prohibition against one of the former institution-affiliated parties.
Enforcement Orders 6/8/05

April Consumer Credit Repost Released

The G. 19 Consumer Credit Report for April 2005 has been released by the FRB.
G. 19 6/8/05

OCC Web Site Enhanced

The OCC has “freshened" it's Web site by changing the appearance to include new banners and menus with blue backgrounds in addition to changing the organization of the home page to make it easier to use. A new "Features" section spotlights new or high-priority OCC information and a new "Resource Highlights" column provides quick access to popular information for either consumer or bankers.
OCC Web Site 6/8/05

International Reserve Position Update

Treasury had updated the U.S. International Reserve Position to include data from the week ending June 3, 2005.
International Reserve Position 6/8/05

FACT Act Medical Information Interim Final Rules Issued

The federal financial regulatory agencies have issued interim final rules under the FCRA that create exceptions to the statutory prohibition against obtaining or using medical information in connection with credit eligibility determinations and also address the sharing of medically related information among affiliates.
Interim Final Rules;
FRB NR;
OCC NR;
FDIC PR;
OTS PR;
NCUA PR 6/7/05

Fedwire Funds Service Fees Announced

The Federal Reserve Banks have announced in a letter sent to current customers that Fedwire Funds service fees will be maintained at current levels.
Letter 6/7/05

OCC Publishes Ombudsman Report and Customer Assistance Brochure

The OCC has published the 2004 Report of the Ombudsman along with a customer assistance brochure that outlines how to file a written complaint and what happens when a customer contacts the Customer Assistance Group.
Report;
Brochure 6/7/05

Hispanic Education Program Announced

The FDIC has launched a Hispanic Outreach Financial Education Program intended to reach "unbanked" persons with little or no banking experience.
Hispanic Program;
Extensión hispana del programa de educación financiera 6/7/05

FDIC To Discuss Preemption Petition

In a presentation before the CSBS annual conference in San Antonio, Chairman Powell indicated that the board will discuss the Financial Services Roundtable's preemption petition later this year. The FDIC was asked to issue a rule that would preempt the application of certain state laws to the interstate operations and activities of state banks.
Speech 6/6/05

Enforcement Actions By FDIC Announced

Information regarding thirteen Enforcement Actions taken in April 2005 against banks and individuals has been released by the FDIC. The actions include three cease and desist orders, two removal and prohibition orders, four civil money penalty orders, three terminations of cease and desist orders, and one termination of a suspension and prohibition order.
Enforcement Actions 6/6/05

FinCEN Rules Now Cover Precious Metal Dealers

An interim Final Rule and a FAQ have been issued by FinCEN that requires dealers in precious metals, stones or jewels to establish AML programs.
Final Rule;
FAQ 6/6/05

Counterfeit Cashier's Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Banner Bank, Walla Walla, Washington. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 6/3/05

FinCEN And State Banking Agencies To Share Information

FinCEN has announced that it has signed Memorandums of Understandings regarding the sharing of information with thirty state banking agencies and Puerto Rico. The agreements will allow FinCEN to better administer the BSA and also assist the state agencies in their roles as financial regulators.
Agreements 6/3/05

Additions Made To OFAC List

OFAC has announced that eight individuals and one entity have been designated as SDNTKs and added to the SDN list. Information regarding the new entries has been posted on the BOL OFAC Page. 6/2/05

OCC CRA Exam Third Quarter Schedule Released

The list of national banks scheduled for CRA compliance examinations during the Third Quarter 2005 has been released by the OCC.
CRA Exam Schedule 6/2/05

CRA Ratings Released By OTS

The CRA ratings for thrifts examined for compliance with CRA in May 2005 have been released by OTS.
CRA Ratings 6/2/05

Guidance Issued Regarding Pre-Employment Screening

The FDIC has issued a FIL that contains guidance regarding developing an effective pre-employment background screening process.
FIL 6/2/05

FACTA Disposal Goes Into Effect

The FTC has issued a Business Alert regarding the FACTA Disposal Rule that requires businesses (including financial institutions) and individuals to take appropriate measures to dispose of sensitive information derived from consumer reports that went into effect June 1, 2005. The Rule requires disposal practices that are reasonable and appropriate to prevent the unauthorized access to or the use of information in a consumer report.
Business Alert 6/2/05

International Reserve Position Updated

Treasury has updated the U.S. International Reserve Position to include data as of May 27, 2005.
Reserve Position 6/2/05

May Foreign Exchange Rates Released

The FRB has released the G.5 Foreign Exchange Rates report for May 2005.
Exchange Rates 6/2/05

FRB Issues First Quarter Fedwire Data

The Fedwire data for the First Quarter 2005 has been issued by the FRB.
Fedwire Data 6/2/05

June Issue FedFlash Published

The June 1, 2005 issue of FedFlash has been published and contains highlights of national and district Federal Reserve Financial Services operational news.
FedFlash pdf;
FedFlash html 6/2/05

Third Quarter CRA Exam Schedule Released

The FDIC has released the schedule of institutions that will be examined for CRA compliance in the Third Quarter 2005.
CRA Exam Schedule 6/1/05

Cashier's Checks Special Alert

A Special Alert has been issued by the FDIC regarding two hundred cashier's checks bearing the name of East West Bank, San Marino, California, that are missing, lost or stolen. Information concerning the cashier's checks has been posted on the BOL Alerts & Counterfeits page. 6/1/05

Asset Size Ranking Report Released

The FRB has released the rankings of insured U.S. chartered commercial banks that have consolidated assets of $300 million or more as of March 31, 2005.
Bank Rankings 6/1/05

FHC List Updated

The list of BHCs that have elected as of May 27, 2005 to be treated as a FHC has been issued by the FRB.
FHC List
6/1/05