Top Stories for September 2007

REPLACE Your CHARM Booklets Now

You can only 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. Replace; Revised CHARM Booklet English; Revised CHARM Booklet Spanish  9/28/07

Fourteen Added To OFAC List

Treasury has designated and added the names of 14 senior Burmese Government officials to the SDN List in the wake of that government's longstanding oppression of the Burmese people and its recent use of violence against peaceful demonstrators. Information regarding the new additions has been posted on the BOL OFAC page.  9/28/07

Dugan Supports Credit Card Opt-Out

In a presentation to the Financial Services Roundtable, Comptroller Dugan stated that consumers should be given the opportunity to opt out of certain credit card rate increases and be given the alternative of paying off the card balance at the old rate. He suggested that when consumers are notified that their rates will surge to a penalty rate they be allowed to opt out, subject to several exceptions. Speech  9/28/07

TFR Instruction Manual Updated

OTS has updated the March 2007 edition of the TFR Instruction Manual with information current through September 2007. Manual  9/28/07

MSB Outreach Brochures in Eight Languages Available

FinCEN has announced that MSB Outreach Brochures are now available in the following languages: English, Spanish, Chinese, Korean, Arabic, Vietnamese, Farsi, and Russian. In addition, an online MSB Registration Renewal Calculator is available and the brochures can be ordered online. Brochures; Calculator  9/28/07

FRB Publishes Final Rule in FR for Unfair or Deceptive Acts or Practices (Reg AA)

The Board is publishing amendments to Regulation AA (Unfair or Deceptive Acts or Practices) to update the address where consumer complaints regarding a state member bank may be sent.TXT; PDF   9/28/07

FRB Publishes Final Rule in FR for Equal Credit Opportunity (Reg B)

The Board is publishing amendments to Regulation B (Equal Credit Opportunity Act) to update the
address where questions should be directed concerning creditors for which the Federal Reserve System administers compliance with the regulation. TXT; PDF   9/28/07

2008 Reg D Reserve Requirement Exemption

The FRB has announced the annual indexing of the Reg D reserve requirement exemption amount and of the low reserve tranche for 2008. These amounts are used in the calculation of reserve requirements of depository institutions. The Board also announced the annual indexing of the nonexempt deposit cutoff level and the reduced reporting limit that will be used to determine deposit reporting panels effective 2008. Reg D  9/27/07

Dividend ANPR Issued

The FDIC has issued a FIL regarding an Advance Notice of Proposed Rulemaking (ANPR) that seeks comments on alternative methods for allocating dividends to implement the dividend requirements of the Federal Deposit Insurance Reform Act of 2005 and the Federal Deposit Insurance Reform Conforming Amendments Act of 2005. Comments are due by November 19, 2007. FI  9/27/07

Written Agreement Announced

The execution of a Written Agreement by and between Great River Bank & Trust, Davenport, Iowa, and the Federal Reserve Bank of Chicago has been announced by the FRB. Written Agreement  9/27/07

Bank Supervision Process Booklet Updated

The OCC has replaced the 1996 version of the Bank Supervision Process booklet in the Comptroller's Handbook. The new booklet incorporates examination planning, control, and communications standards that were published in the Examination Planning and Control booklet in 1997. Booklet  9/27/07

NCUA Schedules Washington D.C. Town Hall Meeting

NCUA has announced that registration is filling up quickly for the final of six scheduled Outreach Task Force "Town Hall" meetings, which will be held in Washington, DC on Tuesday, Oct. 2, 2007. Online registration is available. Registration  9/27/07

FRB Publishes Final Rule in FR for Extensions of Credit by Federal

Reserve Banks
The FRB has adopted final amendments to its Regulation A to reflect the Board’s
approval of a decrease in the primary credit rate at each Federal Reserve Bank.TXT; PDF   9/27/07

FDIC Offers Free Seminars for Bank Employees

A FIL has been issued by the FDIC regarding a series of free telephone seminars for bank employees on deposit insurance coverage. Two identical series of seminars will be offered in October and November 2007 and will cover Basic Concepts of Deposit Insurance Coverage, Coverage for Retirement and Employee Benefit Plan Accounts, Trust Account Coverage, and Coverage for Business and Government Accounts. FIL  9/26/07

314(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet and the Law Enforcement Sharing with the Financial Industry Report with data current as of September 25, 2007. 314(a); Sharing Report  9/26/07

Online EIN Applications

The IRS has announced that taxpayers can request an Employer Identification Number (EIN) through a Web-based system that instantly processes requests and generates identification numbers in real time. EIN  9/26/07

SNC Report Released

The financial institution regulators have released the Shared National Credit (SNC) Report for the Second Quarter 2007 which shows an increase in the volume of criticized credits and weakened underwriting standards in the syndicated lending market, particularly in non-investment grade or leveraged credit facilities. The report states that volume of criticized credits as a share of total SNC commitments remains low by historical comparison and is indicative of satisfactory credit quality. FRB PR; OCC NR; FDIC PR; OTS PR  9/26/07

Receivables Report Published

The FRB has published the G.20 Finance Companies Owned and Managed Receivables Outstanding Report for July 2007. G.20  9/26/07

Role of China Working Paper

A working paper in the International Finance Discussion Papers (IFDP) series on the topic of "The Role of China in Asia: Engine, Conduit, or Steamroller?" has been published by the FRB. Abstract; Full Paper  9/26/07

Regulators Issue DoD Lending Rules Reminders

The FRB has issued a CA Letter, the FDIC a FIL, and OTS has issued a CEO Letter regarding the previously published Department of Defense 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, and information concerning the final rules was posted in the August 31, 2007 BOL Top Stories. Final Rules; CA Letter; FIL; CEO Letter  9/25/07

Interest Rate Risk Report Released

OTS has released the Second Quarter 2007 Aggregate Exposure and CMR Report Report. Report   9/25/07

Joint Agencies Publish Final Rule in FR for Expanded Examination Cycle for Certain Small Insured Depository Institutions, U.S. Branches and Agencies of Foreign Banks

The Office of the Comptroller of the Currency (OCC); Board of Governors of the Federal Reserve System (Board); Federal Deposit Insurance Corporation (FDIC); and Office of Thrift Supervision (OTS), Treasury are jointly adopting as final the interim rules issued on April 10, 2007, that implemented section 605 of the Financial Services Regulatory Relief Act of 2006 (FSRRA) and related legislation (collectively the Examination Amendments). These Amendments permit insured depository institutions that have up to $500 million in total assets, and that meet certain other criteria, to qualify for an 18-month onsite
examination cycle. TXT; PDF   9/25/07

CU Financial Trends Report Published

NCUA has published the Credit Union Financial Trends Report for the First Half of 2007. Trends; Attachments  9/25/07

Bernanke Discusses Education and Economic Competitiveness

In a presentation at the U.S. Chamber Education and Workforce Summit, Washington, D.C., FRB Chairman Bernanke noted that he is often asked for investment advice and the answer is "Education is the best investment." He also stated, "If we are to successfully navigate such challenges as the retirement of the baby-boom generation, advancing technology, and increasing globalization, we must work diligently to maintain the quality of our educational system where it is strong and strive to improve it where it is not." Speech  9/25/07

Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with the addition of data current as of September 21, 2007. Reserve Position  9/25/07

Counterfeit Checks Alerts

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

• Emprise Bank, Wichita, Kansas (Counterfeit Official Checks);
• East Boston Savings Bank, Boston, Massachusetts (Counterfeit Cashier's Checks); and
• Western Bank, Lordsburg, New Mexico (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.   9/24/07

CRA Ratings Released

The OCC has released the ratings received by thirty national banks that were recently examined for compliance with the provisions of the CRA. Ratingsnbsp; 9/24/07

Regulators Expand Examination Cycle

Final Rules have been issued by the federal bank and thrift regulators which expand the range of small institutions eligible for an extended 18-month on-site examination cycle. The final rules allow well-capitalized and well-managed banks and savings associations with up to $500 million in total assets and a composite CAMELS rating of 1 or 2 to qualify for an 18-month on-site examination cycle. Final Rules; FRB PR; OCC NR; FDIC PR; OTS PRnbsp; 9/24/07

FedFocus Features Risk Management Articles

"Safeguarding Against Risk: A Look at Risk Management" is the theme of the September issue of FedFocus. The issue contains articles on following topics;

• Three levels of FedCash Services access help institutions manage risk;
• Plan today for an uncertain tomorrow;
• Technology refresh pays off with long-term benefits;
• October conferences offer opportunities to meet with the Fed;
• Reducing transportation worries with Check 21;
• Why business continuity makes good business sense;
• FS-ISAC Center helps to safeguard U.S. from physical and cyber security threats;
• What's in AMI for me?...An array of risk management features;
• The advantages add up with AMI Premium Services;
• Examining ACH risk;
• Successfully spreading the word about Directo a Mexico;
• Ushering in a new era for FedEDI.

FedFocus  9/24/07

Agricultural Finance Databook Updated

The FRB has published September 2007 update to the E.15 Agricultural Finance Databook. E.15  9/24/07

Counterfeit Checks Alerts

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

• RBC Centura Bank, Raleigh, North Carolina (Counterfeit Official Checks); and
• New Resource Bank, San Francisco, California.

Information concerning the counterfeit checks has been posted on the BOL Alerts and Counterfeits page.  9/21/07

Bernanke and Paulson Discuss Mortgage Markets

In testimony before the House Committee on Financial Services, Treasury Secretary Paulson presented the Department's perspective on the recent events in the credit and mortgage markets and their impact upon consumers and the economy. FRB Chairman Bernanke discussed the origins of the problems in the subprime-mortgage market and the response of the Federal Reserve to these developments. Paulson Testimony; Bernanke Testimony  9/21/07

Federal Reserve Bulletin Supplement Published

The FRB has published the August 2007 Statistical Supplement to the Federal Reserve Bulletin. Index; Supplement  9/21/07

FRB Releases New $5 Bill at Wi-5 Event

The U.S. government today digitally unveiled a new, more secure design for the $5 bill that will be issued and enter circulation in early 2008. A new $100 bill will follow. This is the first time in history that U.S. paper money has ever been unveiled entirely online. Press Release  9/20/07

SEC Approves GLB Bank Securities Broker Rules

The SEC has voted to adopt, jointly with the FRB, rules that will implement the bank broker provisions of the Gramm-Leach-Bliley Act of 1999. The FRB is scheduled to take action at its Sept. 24, 2007 meeting. Joint Rules  9/20/07

Guidance Regarding Garnishment of Federal Benefit Payments

The federal financial regulatory agencies have requested public comment on a proposed statement that encourages federally regulated financial institutions to follow best practices to protect federal benefit payments from garnishment orders. The statement covers Social Security benefits, Supplemental Security Income benefits, Veterans’ benefits, Federal Civil Service retirement benefits, and Federal Railroad benefits. Statement; FRB PR; OCC NR; FDIC PR; NCUA PR  9/20/07

Risk-Based Capital Exemption Granted

A Legal Interpretation has been released by the FRB that grants an exemption from the Board’s risk-based capital guidelines for bank holding companies to permit Bank of America Securities LLC, Charlotte, North Carolina, to assign a 10% risk weight to its Regulation T margin loans. Legal Interpretation  9/20/07

FedCash Access Manager Roadmap Now Available

FRB Financial Services has announced that a roadmap is now available to aid institutions in taking control of their FedCash Services. The FedCash Access Manager allows an institution manage FedCash Services via FedLine Web and assign staff to one of three roles: Administrator, Subscriber or Read-only. Roadmap  9/20/07

FRB Issues Reports

The FRB has issued reports regarding the following: Second Quarter 2007 Household Debt Service and Financial Obligations Ratios; August 2007 3.12 U.S. Reserve Assets and 3.13 Foreign Official Assets Held at Federal Reserve Banks; and the September 7, 2007 Financial Holding Companies List. Household Debt; 3.12/3.13 Assets; FHC  9/20/07

IFDP Working Papers Published

Two working papers in the International Finance Discussion Paper series (IFDPs) have been published by the FRB on the topics of "Real-Time Measurement of Business Conditions" and "Exchange Rate Pass-Through to Export Prices: Assessing Some Cross-Country Evidence." Real-Time Abstract; Real-Time Full Paper; Exchange Rate Abstract; Exchange Rate Full Paper

Counterfeit Cashier's Checks Alerts Issued

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

• Sun West Bank, Las Vegas, Nevada (Counterfeit Cashier's Checks);
• Dollar Bank, FSB, Pittsburgh, Pennsylvania (Counterfeit Cashier's Checks);
• Basin State Bank, Stanford, Montana (Counterfeit Cashier's Checks); and
• First Texas Bank, Georgetown, Texas (Counterfeit Cashier's Checks).

Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  9/19/07

Fed Funds and Discount Rates Lowered

The Federal Open Market Committee (FOMC) has announced that the target for the federal funds rate has been lowered by 50 basis points to 4-3/4 percent. A 50-basis-point decrease in the discount rate to 5-1/4 percent was also approved by the Board of Governors. Rates  9/19/07

Enforcement Actions Released

The OCC has released a list of the new enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions  9/19/07

Call Report Changes Comments Sought

The federal banking regulators are requesting comment on several proposed revisions to the Call Report. The proposed reporting changes, which have been approved by the Federal Financial Institutions Examination Council (FFIEC), would take effect as of March 31, 2008. FIL; Changes  9/19/07

23A and Reg W Exemption Granted

The FRB has published a Legal Interpretation which grants an exemption from section 23A of the Federal Reserve Act and Regulation W, for certain securities financing transactions between Deutsche Bank AG's New York branch and its U.S. securities affiliate. Legal Interpretation  9/19/07

New FedReceipt Routing Numbers Announced

FRB Financial Services has announced effective the business day of September 24, 2007, the Reserve Banks will modify the credit availability and pricing schedule on new FedReceipt routing numbers for FedForward deposits. Routing Numbers  9/19/07

Forecast Working Paper Published

The FRB has published a working paper in the Federal Economics Discussion Series (FEDS) on the topic of "Combining Forecasts From Nested Models." Abstract; Full Paper  9/19/07

Bank Pays $31.6 Million in CMPs and Forfeiture for BSA Violations

FinCEN and the OCC have announced the assessment of concurrent civil money penalties (CMPs) of $10 million each, against Union Bank of California, N.A. of San Francisco, California, for violations of the Bank Secrecy Act, which will be satisfied by a single payment of $10 million to the Department of Treasury. The enforcement actions are part of coordinated actions with the Department of Justice, which issued a Deferred Prosecution Agreement and an accompanying $21.6 Million forfeiture order in connection with charges that Union Bank failed to maintain an effective anti-money laundering program, particularly regarding activities of Mexican casas de cambio. FinCEN CMP; OCC CMP; DOJ Agreement  9/18/07

October 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 October, 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, use the yield in effect on the 15th of the month that precedes the month you received the application. Since September 15 was a Saturday, use the rate on September 14, the business day immediately preceding the 15th. Weekly H.15  9/18/07

Mandatory Purchase of Flood Insurance Guidelines Booklet Updated

FEMA has updated the Mandatory Purchase of Flood Insurance Guidelines booklet which provides guidance for implementing the mandatory purchase provisions of the National Flood Insurance Reform Act of 1994, and the National Flood Insurance Program (NFIP). The 2007 update clarifies some of the complex issues that have arisen since the 1999 edition, and incorporates industry best practices and lessons learned for implementing statutory requirements. Booklet  9/18/07

FDIC Publishes Advanced Notice of Proposed Rulemaking for Assessment Dividents

The FDIC is seeking comments on alternative methods for allocating dividends as part of a permanent final rule to implement the dividend requirements of the Federal Deposit Insurance Reform Act of 2005 (Reform Act) and the Federal Deposit Insurance Reform Conforming Amendments Act of 2005 (Amendments Act). The existing FDIC regulations on assessment dividends expire December 31, 2008. TXT; PDF   9/18/07

FRB Revamps Web Site

The FRB website has a new look, with additional features designed to improve usability. The updates include: navigational tools, new fonts, and updated graphics and layouts to help users access information more quickly and easily. The list of main categories has moved to the top of the home page; the "Breaking News" section has been renamed "Recent Developments", to more accurately describe the information listed there, and the "Features" section has been expanded. Web Site  9/18/07

FRB Statistical Releases Published

The Second Quarter 2007 Z.1 Flow of Funds Accounts of the United States and the August 6-10, 2007, E.2 Survey of Terms of Business Lending statistical releases have been published by the FRB. Z.1; E.2   9/18/07

Counterfeit and Stolen Cashier's Checks Special Alerts

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

• Community Bank of Florida, Inc., Homestead, Florida (Stolen Cashier's Checks);
• First Citizens Bank and Trust Company, Inc., Columbia, South Carolina (Counterfeit Cashier's Checks);
• Fremont Bank, Fremont, California (Counterfeit Cashier's Checks); and
• The Delaware County Bank and Trust Company, Lewis Center, Ohio.

Information concerning the counterfeit and stolen cashier's checks has been posted on the BOL Alerts & Counterfeits page.  9/17/07

Terrorist Assets Report Released

OFAC has released the 2006 Annual Report on Assets in the United States of Terrorist Countries and International Terrorism Program Designees as of September 13, 2007. Report  9/17/07

Industrial Production Report Issued

The G. 17 Industrial Production and Capacity Utilization Report for August 2007 has been issued by the FRB. G.17  9/17/07

FedFlash Online

The September 15, 2007 issue of FedFlash has been posted online and contains articles on the following topics:

• Verification procedures for FedACH® Services requests;
• VPN device changes and relocation;
• A change to same-day Federal tax payment wire transfers effective November 3, 2007;
• Online Check 21 Business Value Calculator soon to include FedReceipt® and FedReturn® products;
• SNA CI based access migration plan now available; and
• The announcement of new FedReceipt RTNs.

FedFlash  9/17/07

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 July 2007. Historical; Current  9/17/07

Counterfeit Cashier's Checks Alerts

The FDIC has issued four Special Alerts regarding counterfeit cashier's checks bearing the name of the following financial institutions:

• Federal Home Loan Bank of Des Moines, Des Moines, Iowa;
• Community State Bank of Orbisonia, Orbisonia, Pennsylvania;
• Louisa Community Bank, Louisa, Kentucky; and
• Imperial Capital Bank, La Jolla, California

Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  9/13/07

Don't Forget To Replace Your CHARM Booklets

Remember that you can only 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; Revised CHARM Booklet English; Revised CHARM Booklet Spanish  9/14/07

OFAC SDNT Designation Changes

Changes have been made by OFAC to the SDN List regarding the text of existing SDNT designations for three entities and five individuals. Information regarding the changes has been posted on the BOL OFAC Page.  9/13/07

2006 HMDA Data Available

The Federal Financial Institutions Examination Council (FFIEC) has announced the availability of 2006 data on mortgage lending transactions at 8,886 financial institutions covered by the Home Mortgage Disclosure Act (HMDA) in metropolitan statistical areas (MSAs) throughout the nation. 2006 HMDA Data; FFIEC PR  9/13/07

2006 HMDA Data Analyzed

The FRB has published the draft of an article to be included in a future FR Bulletin which analyzes the 2006 HMDA data. The review focuses primarily on the pricing information and includes an assessment of factors that account for the variation in rates of serious delinquency on mortgage loans across U.S. metropolitan area counties observed as of March 31, 2007. Draft  9/13/07

Order of Prohibition and CMP Announced

The OTS has announced the issuance of two enforcement orders against Gregory S. Cipa, the former president of Fox Savings Bank of Hatboro, Pennsylvania. He is prohibited from participating in the conduct of the affairs of any financial institution without the prior approval of the OTS and also assessed Civil Money Penalties (CMP) in the amount of $10,000. Orders  9/13/07

Trust Directors Training Opportunities Announced

OTS Director John Reich appeared in a seven-minute video to announce a series of training seminars for members of the Boards of Directors of thrift institutions. He emphasizes the importance of bank Boards of Directors setting corporate values for bank directors, managers and other employees. Reich highlighted the four principles that should guide directors: integrity, independence, involvement, but not interference. The first OTS seminar will be held November 6, 2007, in Schaumburg, Illinois. Director Video  9/13/07

New OFAC Enforcement Information Released

OFAC has released the enforcement actions recently taken against individuals and entities for violation of various Sanctions Programs. One financial institution remitted $100,000 and another $1,484 to settlement allegations of violations of separate programs. Actions  9/12/07

FTC Issues Warning To Lenders Regarding Ads

The FTC has issued a letter more than 200 advertisers and media outlets that some mortgage ads are potentially deceptive or in violation of the Truth in Lending Act. Warning  9/12/07

314(a) Fact Sheet Update

FinCEN has updated the 314(a) Fact Sheet and the Law Enforcement Information Sharing with the Financial Industry Report with data current as of September 11, 2007. 314(a); Sharing Report  9/12/07

FFIEC March 2008 031 and 041 Draft Forms Online

The March 2008 031 and 041 Federal Register Notice and Draft Forms have been posted online by the FFIEC. Notice; 031 Draft Form; 041 Draft Form  9/12/07

Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with data current as of September 7, 2007. Reserve Position  9/12/07

Bernanke Discusses Global Imbalances

In a presentation at the Bundesbank Lecture in Berlin, Germany, FRB Chairman Bernanke discussed a number of important and interrelated developments in the global economy, including the substantial expansion of the current account deficit in the United States, the equally impressive rise in the current account surpluses of many emerging-market economies, and a worldwide decline in long-term real interest rates. Speech  9/12/07

Second Quarter 2007 Financial Results for the Deposit Insurance Fund

The FDIC has released the Second Quarter 2007 Financial Results for the Deposit Insurance Fund. Summary; Detailed Results  9/12/07

FEDS Working Papers Published

The FRB has published two working papers in the Finance and Economic Discussion Series (FEDS) on the following topics: "Forecasting with Small Macroeconomic VARs in the Presence of Instabilities" and "Averaging Forecasts from VARs with Uncertain Instabilities." Forecasting Abstract; Forecasting Full Paper; Averaging Abstract; Averaging Full Paper  9/12/07

FinCEN Director Freis Discusses BSA

In a presentation at the National Association of Federal Credit Unions 2007 Congressional Caucus, FinCEN Director Freis discussed why the BSA information provided by financial institutions is important and how law enforcement agencies, FinCEN, and other financial regulators use the information. Speech   9/11/07

Consumer Credit Report Released

The G.19 Consumer Credit Report for July 2007 has been released by the FRB. G.19  9/11/07

BHC Supervision Manual Updated

The Bank Holding Company (BHC) Supervision Manual has been updated by the FRB. Manual  9/10/07

CRA Exam Schedule Announced

The OTS has announced its CRA Exam Schedule for Fourth Quarter 2007. Exam Schedule  9/10/07

Disease Management and Mail-Order Pharmacy Activities Authorized

The FRB has issued an order determining that disease management and mail-order pharmacy activities are complementary to the financial activity of underwriting and selling health insurance and are therefore permissible for a financial holding company under the Bank Holding Company Act. Order  9/10/07

OCC To Host Credit Risk Workshop

Community Bank Directors Workshop on Credit Risk - A credit risk workshop for national community bank directors will be hosted by the OCC on October 10, 2007, at the Gaylord Texan, Grapevine, Texas. Workshop; Online Registration  9/10/07

State Profiles Updated

The FDIC has updated the State Profiles with data for the second quarter 2007. State Profiles  9/10/07

August 2007 Economic Update

Treasury has issued its economic update for August 2007. Economic Update  9/10/07

OTS Senior Management

A list of the names and telephone numbers of senior management has been released by OTS. List  9/07/07

Reaching Unbanked People Conference

The federal financial regulators have announced that online registration is now open for the Eastern Regional Conference on Reaching Unbanked People to be held on October 4, 2007, in New York City. The conference is free, but advance registration is required as space is limited. Online registration will close on September 25 or when full. Conference Brochure; Registration  9/07/07

IFDP Working Paper Published

The FRB has published a working paper in the International Finance Discussion Papers Series (FEDS) on the topic of "Bargaining, Fairness, and Price Rigidity in a DSGE Environment." Abstract; Full Paper  9/07/07

CRA Ratings Released

The FDIC has released the September, 2007 list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings assigned to institutions in June, 2007. CRA  9/06/07

Beige Book Update

The FRB has updated the Beige Book with data current as of August 27, 2007. Summary; Full Report  9/06/07

Debt Elimination Schemes Alert

The OCC has issued an Alert noting that fraudulent schemes to eliminate debt of borrowers are increasing in volume and variety. The schemes are designed to steal victims' money by appropriating their identities.
Alert  9/06/07

Electronic Submission Of Branch Applications Secure

The FDIC has issued a FIL regarding enhancements to the FDICconnect to allow secure two-way communication with the FDIC for electronic submissions of branch applications. FIL  9/06/07

314(a) Fact Sheet Update

FinCEN has updated the 314(a) Fact Sheet and the Law Enforcement Information Sharing with the Financial Industry Report with data current as of September 5, 2007. 314(a); Sharing Report  9/06/07

Regulators Comment On Condition Of Banking System

In testimony before the House Committee on Financial Services, OCC Comptroller Dugan stated that despite challenging conditions in mortgage and credit markets, the national banking system remains safe and sound. In addition, FDIC Chairman Bair noted that because insured financial institutions entered this period of uncertainty with strong earnings and capital, they are in a better position both to absorb the current stresses and to provide much needed credit as other sources withdraw. Dugan Speech; Dugan Written Testimony; Bair Statement and Testimony  9/06/07

Ombudsman Report Issued

The FDIC has issued an online report to the financial services industry about the issues and problems raised to the FDIC Office of the Ombudsman. The report covers the period January 1 through June 30, 2007. Report  9/06/07

Privatizing Deposit Insurance and Money Smart Studies Results

The FDIC has issued the results of two studies, one regarding the feasibility and consequences of privatizing deposit insurance and the other on the effectiveness of the FDIC's Money Smart financial education program. The results are highlighted in the Second Quarter 2007 issue of FDIC Quarterly. FDIC Quarterly Summary; Full Issue  9/06/07

Servicers of Residential Mortgages Urged To Pursue Loss Mitigation

The federal financial regulatory agencies and the Conference of State Bank Supervisors (CSBS) have issued a statement encouraging federally regulated financial institutions and state-supervised entities that service securitized residential mortgages to identify borrowers at risk of default and pursue appropriate loss mitigation strategies designed to preserve homeownership. Statement; FRB PR; OCC NR; FDIC FIL1; FDIC FIL2; OTS CEO Ltr; NCUA PR  9/05/07

Additional Counties Added to Flood Relief List

The FDIC has issued two FILs that update previously issued Guidance regarding providing regulatory relief to financial institutions and to facilitate recovery in areas of Minnesota, Wisconsin, Ohio, and Oklahoma that are suffering from storms and flooding. Flood FIL 1; Flood FIL2  9/05/07

CRA Exam Schedule Published

The OCC has published the list of national banks that have been scheduled for examination during the fourth quarter 2007 for compliance with the provisions of the CRA. Schedule  9/05/07

Discount Rate Meeting Minutes Released

The Federal Reserve Board has released the minutes of its discount rate meetings from July 9 through August 6, 2007. Minutes  9/05/07

Capital Exemption Granted

A Legal Interpretation has been issued by the FRB regarding the granting of an exemption from the Board's risk-based capital guidelines for bank holding companies and the assignment of a 10% risk weight to Regulation T margin loans. Legal Interpretation  9/05/07

New Electronic Interpretations and Actions Announced

The OCC has announced New Electronic Interpretations and Actions for August 2007. Actions  9/05/07

Reserve Position Update

Treasury has updated the U.S. International Reserve Position Report with data current as of August 31, 2007. Reserve Report  9/05/07

Foreign Exchange Rates Report Released

The G.5 Foreign Exchange Rates Report for August 2007 has been released by the FRB. G.5  9/05/07

Early Savings Bond Redemptions Authorized

FRB Financial Services has announced that savings bond agents serving certain counties in Minnesota, Wisconsin, Oklahoma, Ohio and Illinois 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  9/04/07

Fourth Quarter CRA Exam Schedule Issued

The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2007. Schedule  9/04/07

OTS Publishes Final Rule for Prohibited Service at S&L Holding Companies Extension of Expiration Date of Temporary Exemption

OTS is amending its rules implementing section 19(e) of the Federal Deposit Insurance Act (FDIA), which prohibits any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering (or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense) from holding certain positions with respect to a savings and loan holding company.TXT; PDF   9/04/07

OTS Comment Letters

The OTS has posted seven Comment Letters online, that were received recently regarding various proposals published in the Federal Register. Comment Letters  9/04/07

Homeowner Mortgage Assistance Program Proposed

President Bush has announced a series of steps to help certain homeowners with high-cost subprime adjustable rate mortgages refinance their mortgages with Federal Housing Administration (FHA) backing. The proposal, which could take effect in early 2008, would aid homeowners who are 90 days delinquent, but paid their loans on time before the interest rates reset as long as they have 3 percent equity in their homes. Homeowner Program  9/04/07

Bernanke Discusses Housing, Housing Finance, and Monetary Policy

In a presentation at the Federal Reserve Bank of Kansas City's Economic Symposium in Jackson Hole, Wyoming, Chairman Bernanke noted that historically institutional changes in U.S. housing and mortgage markets have significantly influenced both the transmission of monetary policy and the economy's cyclical dynamics. He remarked, "It is not the responsibility of the Federal Reserve, nor would it be appropriate, to protect lenders and investors from the consequences of their financial decisions." He also indicated that the interaction of housing, housing finance, and economic activity has for years been of central importance for understanding the behavior of the economy, and it will continue to be central to the FRB's thinking as it tries to anticipate economic and financial developments. Speech  9/04/07

September Issue of FedFlash Published

The September 1, 2007 issue of FedFlash has been published and contains articles on the following topics: the October 3, 2007, deadline for recertification required for all Savings Bond Direct users by October 3, 2007; the testing phase for FedEDI Plus online; the topic of the Fourth Check Adjustments Webinar; and availability of the eLearning module for Secure Transport Client software users. FedFlash  9/04/07

FEDS Working Paper Published

The FRB has published a working paper in the Finance and Economic Discussion Series (FEDS) on the topic of "Housing and the Monetary Transmission Mechanism." The paper examines what is known about the role of housing in the monetary transmission mechanism and then explores the implications of this knowledge for the conduct of monetary policy. Abstract; Full Paper  9/04/07