Top Stories for April 2008

Enforcement Actions Announced

The FDIC has released a list of twenty-eight orders of administrative enforcement actions taken against banks and individuals in March 2008. The actions include eight cease-and-desist orders; seven removal and prohibition orders; eight civil money penalties; one prompt corrective action, three terminations of cease-and-desist orders; and one termination of an 8(b) proceeding and 8(c) order. Actions  4/30/08

$15 Million CMP Paid For BSA Violations

FinCEN and the OCC have announced the assessment of concurrent civil money penalties, each $15 million, against the New York Branch of United Bank for Africa, PLC for violations of the Bank Secrecy Act (BSA), which will be satisfied by a single payment of $15 million to Treasury. FinCEN CMP; OCC CMP  4/29/08

Nauru Advisories Withdrawn

FinCEN has issued an Advisory announcing the withdrawal of previously issued Advisories 21 and 21A concerning transactions with the Republic of Nauru. Advisory; 21; 21A  4/29/08

New Electronic Interpretations and Actions Published

The OCC has published and posted online the April 2008 issue of New Electronic Interpretations and Actions. April 2008  4/29/08

Marketable Borrowing Estimates Announced

The estimates of marketable borrowing for the Second and Third Quarters of 2008 have been announced by Treasury. Estimates  4/29/08

FRB Annual Report

The FRB has delivered its 94th Annual Report to Congress. Annual Report  4/29/08

Relationships Cost Wachovia Estimated $143.9 Million

The OCC has announced that a Settlement Agreement has been entered into with Wachovia Bank, National Association that directs the bank to make restitution of estimated $125 million to consumers harmed by its lack of due diligence and risk management of account relationships with several telemarketers and third party payment processors. An additional contribution of approximately $8.9 million will be made to consumer education programs for the elderly along with payment of a $10 million civil money penalty (CMP) to the U.S. Treasury. Settlement Agreement; CMP  4/28/08

Payment Processors Risk Management Guidance Issued

A Bulletin has been issued by the OCC regarding containing guidance for national banks regarding the higher risk presented by relationships with companies that process payments for telemarketers and certain other merchants. Bulletin  4/28/08

TIS and EFT Rules Compliance

A CEO Letter has been issued by OTS regarding compliance with Truth in Savings (TIS) and Electronic Funds Transfer Act (EFT) rules. CEO Letter  4/28/08

NCUA Proposes Rulemaking Relative to the Low-Income Definition

The NCUA is proposing to use median family income (MFI) to determine if a credit union qualifies for a low-income designation and assistance from the Community Development Revolving Loan Fund (CDRLF). The proposed rule will eliminate the confusion associated with adjusting median household income (MHI) in metropolitan areas with higher costs of living. Text  PDF  4/28/08

NCUA Proposes Rulemaking to Revise the Official Advertising Statemnt

The NCUA Board proposes revising the requirements for use of the official insurance sign and official advertising statement to permit insured credit unions to use the basic form of the official advertising statement, a shortened form, or the official sign in advertisements. The proposed rule will give credit unions added flexibility in advertisements. Text  PDF  4/28/08

Month Market Monitor Published

OTS has published the April 2008 issue of the Monthly Market Monitor (MMM) which features articles concerning market commentary, economic conditions, inflation and housing conditions. MMM  4/28/08

Thrift Satisfaction Survey Results Released

OTS has issued a CEO Letter announcing the results of the 2007 Annual Thrift Satisfaction Survey. CEO Letter  4/28/08

Receivables Report Released

The G.20 Owned and Managed Receivables Outstanding Report for February 2008 has been released by the FRB. G.20  4/28/08

OFAC TSRA Report Released

The quarterly report of licensing activities undertaken by OFAC pursuant to the provisions of the Trade Sanctions Reform and Export Enhancement Act of 2000 (TSRA) has been released. Report  4/25/08

NCUA Proposes Rulemaking for Revisions for the Freedom of Information Act and Privacy Act Regulations

The changes to FOIA provisions largely relate to recent amendments to the Freedom of
Information Act addressing several procedural issues concerning fee practices, time limits for complying with requests, and new reporting requirements. The changes reflect the agency's efforts to clarify the procedures whereby individuals may obtain notification of whether an NCUA system of records contains information about the
individual and access or amend a record. Text  PDF  4/25/08

CTR NPRM Issued

FinCEN has issued a Notice of Proposed Rulemaking (NPRM) to significantly simplify the requirements to exempt eligible customers from currency transaction reporting. Three existing requirements would be eliminated. Comments are due by June 23, 2008. Text  PDF  4/24/08

Check 21 Freeze Announced

FRB Financial Services has announced that two Check 21 operation freezes are necessary to conduct national contingency tests. During a freeze customers will not be able to send Check 21 deposit files and access to all Check Service via FedLine Web will not be available. The first test will be conducted beginning 8 p.m. ET Friday, May 9 and 8 p.m. ET Saturday, May 10, 2008.  Freeze  4/24/08

CRA Ratings Released

The OCC has released the ratings received by thirty-four national banks recently evaluated for compliance with the provisions of the Community Reinvestment Act (CRA).
Ratings   4/24/08

OCC Publishes Reg Review Amendments

The Office of the Comptroller of the Currency (OCC) is revising its rules "in order to reduce unnecessary regulatory burden, update certain rules, and make certain technical, clarifying, and conforming changes to its regulations. These revisions result from the OCC's most recent review of its regulations to ensure that they effectively advance our mission to promote the safety and soundness of the national banking system, ensure that national banks can compete efficiently in the financial services marketplace, and foster fairness and integrity in national banks' dealings with their customers, without imposing regulatory burden unnecessary to the achievement of those objectives." The rules changes affect OCC regulations at 12 CFR Parts 1, 2, 3, 4, 5, 7, 9, 10, 11, 12, 16, 19, 21, 22, 23, 24, 26, 27, 28, 31, 32, 34, 37, and 40, with an effective date of 7/1/2008. Text; PDF  4/24/08

FEDS Working Paper Published

The FRB has published a working paper in the Finance and Economics Discussion Series (FEDS) on the topic of "A New Look at the Wealth Adequacy of Older U.S. Households."Abstract; Full Paper  4/24/08

FARC Network Related Parties on OFAC List

Pursuant to the provisions of the Kingpin Act, OFAC has designated two entities and four individuals as Specially Designated Global Terrorists (SDNTs) for acting on behalf of the Revolutionary Armed Forces of Colombia or FARC, a narco-terrorist group. Information regarding the individuals and entities has been posted on the BOL OFAC page.  4/23/08

Counterfeit Cashier's Checks Special Alerts

The FDIC has issued two Special Alerts regarding counterfeit cashier's checks bearing the name of First Sentry Bank, Inc., Huntington, West Virginia; and Town & Country Bank, Las Vegas, Nevada. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  4/23/08

Special Alert Unauthorized Banking

A Special Alert has been issued by the FDIC regarding the revision by The Cayman Islands Monetary Authority of its list of entities that provide a Cayman Islands contact address, but are not licensed or registered to conduct business activities regulated by the Cayman Islands Monetary Authority. Special Alert   4/23/08

Interest Rate Risk CEO Letter

OTS has issued a CEO Letter regarding interest rate risk and interim changes to the NPV Model and TB13a. CEO Letter  4/23/08

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 April 22, 2008. 314a Fact Sheet; Sharing Report  4/23/08

Credit Auction Results

The Federal Reserve has announced the results of the auction of $50 billion in 28-day credit held on April 21, 2008. Results  4/23/08

IFDP Working Paper Published

A working paper in the International Finance Discussion Paper series (IFDP) on the topic of "Competitive Search Equilibrium in a DSGE Model" has been published by the FRB. Abstract; Full Paper  4/23/08

Counterfeit Official Checks Special Alert

The FDIC has issued a Special Alert regarding counterfeit official checks bearing the name of Union State Bank, Arkansas City, Kansas. Information concerning the counterfeit official checks has been posted on the BOL Alerts & Counterfeits page.   4/22/08

Proposed CFIUS Regs Issued

Treasury has issued proposed regulations that implement the Foreign Investment and National Security Act of 2007 (FINSA). The proposed regulations provide an update to regulations that govern the Committee on Foreign Investment in the United States (CFIUS) and its process for national security review of certain foreign investments in U.S. businesses. CFIUS   4/22/08

Reserve Position Update

The U.S. International Reserve Position Report has been updated by Treasury with data current as of April 18, 2008. Position Report   4/22/08

OCC Counsel Williams Credit Card Testimony

Chief Counsel and First Senior Deputy Comptroller Williams has testified on H.R. 5244, the Credit Cardholders' Bill of Rights Act of 2008, before the Subcommittee on Financial Institutions and Consumer Credit of the House Committee on Financial Services. Testimony; Written Statement  4/18/08

SAR Guidance Issued

FinCEN has issued a Guidance to enable financial institutions to file more precise SARs regarding proceeds of foreign corruption. Guidance  4/18/08

NCUA Board Meeting Results

The results of the NCUA Board meeting held on April 17, 2008 have been released. Results  4/18/08

Assets Reports Issued

The FRB has issued the 3.12 U. S. Reserve Assets and 3.13 Foreign Assets Held at Federal Reserve Banks Reports. Reports  4/18/08

May HOEPA Rates Established

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for certain applications received in May 2008, 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, use the yield in effect on the 15th of the month that precedes the month you received the application. Daily H.15  4/17/08

City Zone Eliminated

FRB Financial Services has announced that effective July 1, 2008, the Federal Reserve Banks will eliminate city zones in restructured offices and move these items to RCPC. City Zones  4/17/08

FRB Publishes Technical Amendment to Final Rule for Definitions of Terms and Exemptions Relating to the "Broker" Exceptions for Banks

The Board and the Securities and Exchange Commission jointly are adopting technical amendments to Regulation R, which the Agencies jointly adopted in September 2007. Regulation R implements certain of the exceptions for banks from the definition of the term "broker" in section 3(a)(4) of the Securities Exchange Act of 1934 ("Exchange Act"), as amended by the Gramm-Leach-Bliley Act ("GLBA"). TXT; PDF  4/17/08

Community Bank Directors Workshops Scheduled

The OCC will host workshops for national community bank directors at the Hyatt Regency Hotel, Indianapolis, May 20-22, 2008 to provide practical information that expands bank directors' understanding of issues facing their banks. Workshops  4/17/08

Former Lessons Learned To Help OCC

In a presentation at the Exchequer Club, Comptroller Dugan stated that, with problem loans rising, it's imperative that bank management identify and address problems realistically and that the OCC deal with national banks in a consistent and balanced way. He noted that the lessons learned from the late 1980s and early 1990s, including a recognition of mistakes made by the OCC, will help the agency deal with problems in the current environment. Speech  4/17/08

Beige Book Published

The FRB has published the April 16, 2008 issue of the Beige Book. Beige Book  4/17/08

FEDS Working Papers Published

Four working papers in the Finance and Economics Discussion Series on the following topics have been published by the FRB:

• "Corporate Hedging, Investment and Value";
• "Expectations of Risk and Return Among Household Investors: Are Their Sharpe Ratios Countercyclical?";
• "Exchange Rates, Optimal Debt Composition, and Hedging in Small Open Economies" and
• "Maintenance and Asset Prices".

Corporate Abstract; Expectation Abstract; Corporate Full Paper; Expectation Full Paper; Exchange Abstract; Exchange Full Paper; Maintenance Abstract; Maintenance Full Paper  4/17/08

Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with data current as of April 11, 2008. Reserve Position  4/17/08

FinCEN Annual Report Published

FinCEN has published its 2007 Annual Report. Annual Report  4/17/08

FR Bulletin Supplement Released

A statistical supplement to the Federal Reserve Bulletin has been released by the FRB. Supplement  4/17/08

Industrial Production Report Issued

The FRB has issued the March 2008 G.17 Industrial Production and Capacity Utilization Report. G.17  4/17/08

Minority Owned Banks and Thrifts Reports Released

The report of minority owned banks as of December 31, 2007 and thrifts as of April 2008 have been released by the FRB and OTS. Banks; Thrifts  4/17/08

Columbian SDNTs Added To OFAC List

OFAC has added nine individuals and fifteen companies to its list of Specially Designated Narcotics Traffickers (SDNTs). The designations target long-time associates of the only remaining leader of Colombia's North Valle drug cartel, and the U.S. is offering up to $5 million for information leading to his capture. Information regarding the new entries has been posted on the BOL OFAC page.  4/16/08

New FedReceipt Routing Numbers Announced

FRB Financial Services has announced two new FedReceipt routing numbers. Routing Numbers  4/16/08

FedFlash Published

The April 15, 2008 issue of FedFlash has been published and contains articles on FRB structuring; the fuel surcharge on cash letters; electronic check presentment and imaging; FedEDI Plus; the new International ACH Transaction SEC code; savings bond seminars; and two Check 21 "freeze" periods. FedFlash  4/16/08

Discount Rate Meeting Minutes

The FRB has released the minutes of its discount rate meetings from February 19 through March 18, 2008. Minutes  4/16/08

TIC Data Released

Treasury has released the Treasury International Capital (TIC) data for February 2008. TIC  4/16/08

New Mexico Quarter Information

FRB Financial Services has announced the availability dates of the New Mexico State quarter. Dates  4/16/08

Cost of Funds Reports Issued

OTS has issued the historical and February 2008 National Average Cost of Funds Ratio to OTS Regulated, SAIF - Insured Institutions reports. Historical; February  4/16/08

Seven Counterfeit Checks Special Alerts

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

• Haverhill Bank, Haverhill, Massachusetts (Counterfeit Cashier's Checks);
• First Sentry Bank, Inc., Huntington, West Virginia (Counterfeit Cashier's Checks);
• Falcon International Bank, Laredo, Texas (Counterfeit Cashier's Checks);
• First Priority Bank, Malvern, Pennsylvania (Counterfeit Official Checks);
• The First National Bank of Jeffersonville, Jeffersonville, New York (Counterfeit Cashier's Checks);
• Town & Country Bank, Las Vegas, Nevada (Counterfeit Cashier's Checks); and
• High Desert State Bank, Albuquerque, New Mexico (Counterfeit Official Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   4/15/08

Illegal Offshore Activities Special Alert

A Special Alert has been issued by the FDIC regarding illegal offshore activities being exercised by unofficial organizations acting as banks, financial services companies and other financial institutions of the island of Anjouan, Union des Comores. Special Alert   4/15/08

Fraudulent Traveler's Checks Special Alert

The FDIC has issued a Special Alert regarding fraudulent traveler's checks which do not indicate any affiliation with a major traveler check issuer and are referred to as "TRAVELERS CHEQUES." The front of the items, which have been presented in $100 denominations, shows an American flag overlaid with the Statue of Liberty and the U.S. Capitol Building. "Support Our Freedom" is directly beneath the image. Information concerning the fraudulent traveler's checks has been posted on the BOL Alerts & Counterfeits page.  4/15/08

Enforcement Actions Released

Enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks have been released by the OCC. Actions  4/15/08

MSB Pays CMP for BSA Violations

FinCEN has announced that El Noa Noa, a Florida financial institution and money service business, has paid a civil money penalty of $12,000 for failing to file currency transaction reports (CTRs). CMP   4/15/08

FSF Recommends Financial Markets Enhancements

The Financial Stability Forum (FSF) has presented to the G7 Finance Ministers and central bank Governors a report containing recommendations for enhancing the resilience of markets and financial institutions. Report  4/15/08

FEDS Working Papers Published

The FRB has published two working papers in the Finance and Economic Discussion Series (FEDS) on the topics of "Corporate Hedging, Investment and Value" and "Expectations of risk and return among household investors: Are their Sharpe ratios countercyclical?" Corporate Abstract; Corporate Full Paper; Expectations Abstract; Expectations Full Paper  4/15/08

Money Smart for Young Adult

The FDIC has announced that its financial education program, Money Smart, is now available for young adults. The Money Smart for Young Adults curriculum will help instructors teach youth between ages 12 and 20 the basics of handling their money and finances, including how to create positive relationships with financial institutions. Young Adults  4/15/08

Counterfeit Checks Special Alerts

The FDIC has issued eight Special Alerts regarding counterfeit checks bearing the name of the following institutions:

• Sovereign Bank, Dallas, Texas (Counterfeit Cashier's Checks);
• The Richland Trust Company (doing business as Richland Bank), Mansfield, Ohio (Counterfeit Official Checks);
• Big Sky Western Bank, Bozeman, Montana (Counterfeit Cashier's Checks);
• Bank of Westminster, Westminster, South Carolina (Counterfeit Official Checks);
• Landmark Bank, Clinton, Louisiana (Counterfeit Cashier's Checks);
• Independent Bank, McKinney, Texas (Counterfeit Cashier's Checks);
• Meridian Bank, Paoli, Pennsylvania (Counterfeit Official Checks); and
• Damascus Community Bank, Damascus, Maryland (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   4/14/08

341(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet and the Law Enforcement Information Sharing With Financial Industry Report with data current as of April 11, 2008. Fact Sheet; Sharing  4/14/08

OFAC CMPs Released

The civil money penalties (CMPs) recently by OFAC against entities and individuals for violations of various Sanctions Programs have been released. One financial institution paid $2,970 for alleged violations of the Cuban Assets Control Regulations. CMPs  4/14/08

Disclosures Practices Report Released

The senior financial supervisors from five countries have issued a report that reviews the disclosure practices of financial services firms concerning their exposure collateralized debt obligations, residential mortgage-backed securities, commercial mortgage-backed securities, other special purpose entities and leveraged finance loans. Report  4/14/08

Survey to Study Unbanked Marketing Efforts

The FDIC has announced that it will conduct during the Spring of 2008 a first of its kind nationwide survey of FDIC insured depository institutions to assess their efforts to serve unbanked and underbanked individuals and families. Survey  4/14/08

9th Issue - The SAR Activity Review by the Numbers

The FDIC has issued a FIL announcing the release by FinCEN of the 9th issue of The SAR Activity Review by the Numbers which contains the compilation of numerical data gathered from Suspicious Activity Reports (SARs) filed by depository institutions, certain money services businesses, casinos and card clubs, and by certain segments of the securities and futures industries. FIL; SAR Activity Review  4/11/08

Bernanke Discusses Global Markets Weakness

In a presentation at the World Affairs Council of Greater Richmond's Virginia Global Ambassador Award Luncheon, FRB Chairman Bernanke discussed the report of the President's Working Group (PWG) on financial markets regarding the weakness in the global markets. He noted that given the global nature of our financial markets and institutions, international cooperation is essential to making the regulatory and supervisory structure more effective. He stated, "In the mortgage area, the PWG recommended action at both the federal and state levels, including, for example, stronger nationwide licensing standards for mortgage brokers and more consistent government oversight for all originators." He indicated that the FRB will review the use of credit ratings as a risk metric and be sure that we are working effectively with both the private sector and other domestic and international regulators to help the system function better. Speech  4/11/08

Bank Supervisors ITA Training Announced

The FRB has announced that international training and assistance (ITA) is being offered for supervisors and staff of other central banks and bank supervisory authorities in order to promote sound supervisory practices abroad and to foster strong bilateral and multilateral relationships with the central banks and bank supervisory authorities of other countries. Catalog and Schedule  4/11/08

IFDP Working Papers Published

Two working papers in the International Finance Discussion Paper (IFDP) series have been published by the FRB on the topics of "Emerging Market Business Cycles Revisited: Learning about the Trend" and "Interpreting Long-Horizon Estimates in Predictive Regressions." Emerging Abstract; Emerging Full Paper; Interpreting Abstract; Interpreting Full Paper   4/11/08

Bair and Dugan Testify On Proposed FHA Act

In testimony before the House Committee on Financial Services, FDIC Chairman Bair and OCC Comptroller Dugan indicated that the plan proposed in the FHA Housing Stabilization and Homeownership Retention Act of 2008 could provide a possible tool for helping banks avoid large losses from foreclosure without raising significant safety and soundness issues. Bair stated that a major difficulty in refinancing proposals for many troubled mortgages is the significant percentage of them that are subject to second liens and resolving this issue is essential to ensuring the effectiveness of any proposal. Dugan noted that the alternative would be less costly than foreclosure for many such loans and that it would allow borrowers to remain in their homes with lower mortgage payments. Bair Testimony; Dugan Oral Statement; Dugan Written Statement  4/10/08

Testimony Deadline Extended

The deadline for the submission of a requests to testify at public meeting to be held by the FRB in May 2008 in Los Angeles, California, and Chicago, Illinois, on the notice by Bank of America Corporation to acquire Countrywide Financial Corporation. Testimony  4/10/08

Financial Restatements Study Released

Treasury has released, "The Changing Nature and Consequences of Public Company Financial Restatements", a financial restatements study commissioned as part of the agency's efforts to encourage U.S. capital markets competitiveness. Study  4/10/08

Enforcement Actions Announced

The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in February 2008. Actions  4/09/08

Credit Auction Results

The Federal Reserve has announced the results of auction of $50 billion in 28-day credit held on April 7, 2008. Auction  4/09/08

FOMC Minutes Released

The minutes of the March 10 and 18, 2008, meetings of the Federal Open Market Committee (FOMC) have been released by the Federal Reserve. Minutes  4/09/08

Minimum Security Devices and Procedures Proposed

OTC has published a proposed Final Rule and Request for Comment regarding Minimum Security Devices and Procedures. Final Rule  4/09/08

IFDP Working Papers Published

Three working papers in the International Finance Discussion Papers (IFDP) series have been published by the FRB on the following topics:

• "A Solution to the Default Risk-Business Cycle Disconnect";
• "Bank Integration and Financial Constraints: Evidence from U.S. Firms"; and
• "Predicting Cycles in Economic Activity."

Solution Abstract; Solution Full Paper; Bank Integration Abstract; Bank Integration Full Paper; Predicting Cycles Abstract; Predicting Cycles Full Paper  4/09/08

CRA Ratings Released

The FDIC has released the list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Ratings  4/08/08

Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with data current as of April 4, 2008. Reserve Position  4/08/08

Consumer Credit Report Released

The FRB has released the February 2008 G.19 Consumer Report. G.19  4/08/08

Retirement of the Magnetic Media Program Notice

In preparation for the retirement of the Magnetic Media program, FinCEN is no longer accepting new applications to batch file BSA forms using tapes and/or diskettes. New users who wish to batch file their BSA forms should submit these files using the BSA E-Filing system. E-Filing  4/07/08

Treasury Economic Update

Treasury has issued its economic update based on data current as of April 4, 2008. Update  4/07/08

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and between First Pryority Bank, Pryor, Oklahoma, the Federal Reserve Bank of Kansas City, and the Oklahoma State Banking Department. Written Agreement  4/04/08

Bernanke Discusses Financial Markets Developments

In testimony before the Senate Banking Committee, FRB Chairman Bernanke discussed current economic and financial conditions and the actions the Federal Reserve has taken to stabilize financial markets and the economy. He noted that the adverse impact of a default by Bear Stearns would not have been confined to the financial system but would have been felt broadly in the real economy through its effects on asset values and credit availability. He stated, "The purpose of our action, as with our other recent actions--including our provision of liquidity to financial firms and our reductions in the federal funds rate target--was, as best as possible, to improve the functioning of financial markets and to limit any adverse effects of financial turmoil on the broader economy." Testimony  4/04/08

JPMC Granted 23A Exemption

The FRB has released a Letter containing a legal interpretation granting JPMorgan Chase & Co. (JPMC) a temporary exemption from section 23A of the Federal Reserve Act and Reg. W for certain covered transactions between JPMC and its affiliates in connection with the acquisition of The Bear Stearns Companies, Inc. (Bear Stearns); and providing JPMC with a transition period to incorporate fully the assets and exposures of Bear Stearns into JPMC for purposes of the Board's risk-based and leverage capital guidelines for bank holding companies. Letter  4/04/08

Mortgage Loan Fraud Report Updated

FinCEN has updated its November 2006 mortgage loan fraud assessment, which is based upon analysis of suspicious activity reports (SARs) provided by the financial industry, to include reports filed through March 2007. Update  4/04/08

Bernanke’s Economic Outlook

In testimony before the Joint Economic Committee of Congress, FRB Chairman Bernanke offered his views on conditions in financial markets, the outlook for the U.S. economy, and discussed the recent actions taken by the Federal Reserve. He noted that the capacity and willingness of some large institutions to extend new credit remains limited and the nonconforming segment of the mortgage market continues to function poorly. He stated "It now appears likely that real gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly." Testimony  4/03/08

CRA Ratings Released

OTS has released the ratings received by savings associations recently evaluated for compliance with the provisions of the Community Reinvestment Act (CRA). Ratings   4/03/08

23A Exemption Granted

The FRB has released a letter containing a legal interpretation granting an exemption from section 23A of the Federal Reserve Act and Regulation W in order that a wholly owned bank subsidiary may acquire all the shares of an affiliate and the subsequent purchase by a second wholly owned subsidiary of certain lease participations originated by the affiliate. Letter  4/03/08

Fourth Quarter Bank Trading Loss of $9.97 Billion

The OCC has released its Quarterly Report on Bank Trading and Derivatives Activities which indicates that insured U.S. commercial banks lost $9.97 billion trading cash and derivative instruments in the fourth quarter 2007. Quarterly Report  4/03/08

ID Theft Red Flags Guidelines CEO Letter

A CEO Letter has been issued by OTS regarding identity theft red flags and address discrepancies final rules and guidelines. CEO Letter  4/02/08

2008 Regulatory Reports Filing Schedule

OTS has released the filing schedule for filing regulatory reports in 2008. Schedule  4/02/08

Subprime and Alt-A State Mortgage Maps Available

The FRB has announced the availability of a set of dynamic maps and data that illustrate subprime and alt-A mortgage loan conditions in each state. The maps display regional variation in the condition of securitized, owner-occupied subprime, and alt-A mortgage loans can be used to assist in the identification of existing and potential foreclosure hotspots. Maps  4/02/08

FRB Publishes Final Rule in FR for Equal Opportunity

The Board of Governors of the Federal Reserve System has adopted a final rule that amends the section of its Rules Regarding Equal Opportunity (EEO Rules) which governs the employment of persons who are not United States citizens consistent with the Board's requirements for the security of its information.TXT; PDF  4/02/08

Paper Cash Letter Fuel Surcharge Announced

FRB Financial Services has announced that due to increased transportation costs, effective May 1, 2008 a fuel surcharge will be imposed on all paper cash letters. Surcharge  4/02/08

FinCEN Revises RSMB, CTRC and BSA Forms

FinCEN has released drafts of the revision of the following forms:

• Registration of Money Services Business (RSMB) Form 107;
• CTRC Form 103; and
• BSA E-File Electronic filing specifications.

The drafts should not be used until September 1, 2008. RSMB; CTRC; BSA  4/02/08

March Financial Reporting Bulletin Published

OTS has published the March 2008 Financial Reporting Bulletin. Bulletin  4/02/08

March Foreign Exchange Rates

The G.5 Foreign Exchange Rates Report for March 2008 has been released by the FRB. G.5  4/02/08

Counterfeit and Fraudulent Checks Special Alerts

The FDIC has issued eight Special Alerts regarding counterfeit checks bearing the name of the following institutions:

• Freedom Bank, Columbia Falls, Montana (Counterfeit Cashier's Checks);
• Grant County Bank, Medford, Oklahoma (Counterfeit Cashier's Checks);
• Penn Liberty Bank, Wayne, Pennsylvania (Counterfeit Official Checks);
• Lotus Bank, Novi, Michigan (Counterfeit Cashier's Checks);
• Alliance Bank, Lake City, Minnesota (Fraudulent Traveler's Checks);
• Legends Bank, Linn, Missouri (Counterfeit Official Checks); and
• QNB Bank (formerly known as The Quakertown National Bank), Quakertown, Pennsylvania (Counterfeit Official Checks); and
• Equity Bank, Dallas, Texas (Counterfeit Cashier's Checks).

Information concerning the counterfeit and fraudulent checks has been posted on the BOL Alerts & Counterfeits page.   4/01/08

Stronger Regulatory Structure Blueprint Released

Treasury has released its "Blueprint for a Modernized Financial Regulatory Structure" which is intended to strengthen consumer protections, improve tools for market stability and enhance financial innovation. The plan recommends creating a new federal commission for mortgage origination, modernizing the President's Working Group on Financial Markets, and clarifying the Federal Reserve's liquidity provisioning. Blueprint; Fact Sheet  4/01/08

Check Processing Restructuring Schedule Changed

The Federal Reserve Banks have announced modifications to the schedule for previously announced check processing infrastructure changes. Check Processing; Fact Sheet  4/01/08

Arkansas Storm and Flood Damage Regulatory Relief

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 areas of Arkansas affected by recent severe storms, tornadoes and flooding. FIL  4/01/08

Forms 031 and 041 Updated

The FFIEC has posted online updates to Forms 031 and 041. 031; 041  4/01/08

IFDP Working Paper Published

The FRB has published a working paper in the International Finance Discussion Paper series on the topic of "Do Differences in Financial Development Explain the Global Pattern of Current Account Imbalances?" Abstract; Full Paper  4/01/08

Receivables Report Released

The G.20 Owned and Managed Receivables Outstanding Report for January 2008 has been released by the FRB. G.20  4/01/08

Reserve Position Update

Treasury has updated the U.S. International Reserve Position report with data current as of March 28, 2008. Report  4/01/08