Top Stories for November 2010

NCUA Proposes Rulemaking for Corporate Credit Unions

NCUA is issuing proposed amendments to its rule governing corporate credit unions (corporates). The amendments include internal control and reporting requirements for corporates similar to those required for banks under the Federal Deposit Insurance Act and the Sarbanes-Oxley Act. TXT; PDF  11/30/10

FDIC Publishes Interim Final Rule in FR for Securities of Nonmember Insured Banks

The FDIC is revising its securities disclosure regulations applicable to state nonmember banks with securities required to be registered under section 12 of the Securities Exchange Act of 1934 (Exchange Act). The final rule cross references changes in regulations adopted by the Securities and Exchange Commission (SEC) into the provisions of the FDIC's securities regulations. TXT; PDF  11/30/10

FRB Legal Developments

The FRB has published the Legal Developments section of the Third Quarter 2010 Bulletin which contains five orders issued under the Bank Holding Company Act, the Bank Merger Act and the International Banking Act. Legal Developments  11/30/10

CU Call Report Quarterly Data

The NCUA has announced that the Third Quarter 2010 Credit Union (CU) Call Reports indicate earnings increased and shares and loans continued to grow at a slow, steady pace. Earnings; Call Report  11/30/10

FRB Proposes Rulemaking for Conformance Period for Entities Engaged in Prohibited Proprietary Trading or Private Equity Fund or Hedge Fund Activities

The Board is requesting comment on a proposed rule that would implement the conformance period during which banking entities and nonbank financial companies supervised by the Board must bring their activities and investments into compliance with the prohibitions and restrictions on proprietary trading and relationships with hedge funds and private equity funds imposed by section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act). Section 619 is commonly referred to as the "Volcker Rule". TXT; PDF  11/29/10

Pakistani Terrorists and Financiers Added to OFAC List

The Treasury has designated three senior members and financiers of Pakistan-based terrorist organization as Specially Designated Global Terrorists (SDGTs) and added their names to the SDN List. Information concerning the additions has been posted on the BOL OFAC page.  11/29/10

Enforcement Actions Announced

The FDIC has announced fifty-seven orders of enforcement actions taken in October 2010 against banks and individuals. Orders  11/29/10

TDF Auction Today

The Federal Reserve will offer $5 billion in 28-day term deposits through its Term Deposit Facility (TDF) on Monday, November 29, 2010. Auction  11/29/10

Credit and Liquidity Programs Report

The November 2010 monthly report on the Credit and Liquidity Programs and the Balance Sheet has been released by the FRB. Report  11/29/10

Consumer Gift Card Tips

The FTC has issued Tips and a Consumer Alert containing tips and information for those who plan to give gift cards for holiday gifts. Tips; Alert  11/29/10

Reserve Position Updates

The U.S. International Reserve Position Report has been updated with data for the weeks of November 5 and 12, 2010. Nov 5; Nov 12   11/29/10

FDIC Proposes Rulemaking for:Assessments, Assessment Base and Rates

The FDIC is proposing to amend its regulations to implement revisions to the Federal Deposit Insurance Act made by the Dodd-Frank Wall Street Reform and Consumer Protection Act regarding the definition of an institution's deposit insurance assessment base; alter the unsecured debt adjustment in light of the changes to the assessment base; add an adjustment for long-term debt held by an insured depository institution where the debt is issued by another insured depository institution; eliminate the secured liability adjustment; change the brokered deposit adjustment to conform to the change in the assessment base and change the way the adjustment will apply to large institutions; and revise deposit insurance assessment rate schedules, including base assessment rates, in light of the changes to the assessment base. TXT; PDF  11/24/10

Assessments, Large Bank Pricing

The FDIC proposes to revise the assessment system applicable to large insured depository institutions (IDIs or institutions) to better differentiate IDIs and take a more forward-looking view of risk; to better take into account the losses that the FDIC may incur if such an IDI fails; and to make technical and other changes to the rules governing the risk-based assessment system, including proposed changes to the assessment base necessitated by the Dodd-Frank Wall Street Reform and Consumer Protection Act. TXT; PDF  11/24/10

NCUA Publishes Technical Corrections for Interim Final Rule for Corporate Credit Unions

NCUA is issuing technical corrections to its corporate credit union rule, published in the Federal Register of October 20, 2010. The amendments: Correct the definition of collateralized debt obligation (CDO) in Sec. 704.2; correct the list of investments exempt from the single obligor limits and credit rating requirements in Sec. 704.6; and correct a date contained in Model Form H of Appendix A to part 704. TXT; PDF  11/24/10

SAR Sharing Final Rule

FinCEN has released a Final Rule, an Advisory, a depository institutions guidance, a securities/brokers Guidance and a Notice of Availability of Guidance to clarify the scope of Suspicious Activity Report (SAR) confidentiality and expand the ability to share information with affiliates. FinCEN NR; Final Rule; Advisory; DI Guidance; Securities Guidance; Notice  11/24/10

Earnings Up $12.5 Billion

The FDIC has published the Third Quarter 2010 issue of the Quarterly Banking Profile which indicates that insured commercial banks and savings institutions reported an aggregate profit of $14.5 billion in the third quarter of 2010, a $12.5 billion improvement from the third quarter of 2009. The number of institutions on the "Problem List" rose from 829 to 860 and total insured deposits declined by $15 billion. Summary; Quarterly Banking Profile  11/24/10

FOMC Minutes

The minutes of the October 15 and November 2-3, 2010, meetings of the Federal Open Market Committee have been released. Minutes  11/24/10

CRA Ratings Released

The OCC has released the list of ratings received by eighteen national banks recently evaluated for compliance with the Community Reinvestment Act (CRA). List  11/23/10

Prohibition Orders Issued

The NCUA has issued Orders against two individuals prohibiting them from participating in the affairs of any federally insured financial institution. They were also ordered to pay $2,080,000 and $175,000 in restitution. Orders  11/23/10

CU Liquidated

The NCUA has announced that the liquidation of the Constitution Corporation Federal Credit Union, which was placed in receivership on September 24, 2010, will take place November 30, 2010. Constitution  11/22/10

Enforcement Actions Announced

The OCC has announced the enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks. Actions  11/22/10

Charge-Off and Delinquency Rates Reports

The FRB has released the Third Quarter 2010 Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks Reports. Reports  11/22/10

NCUA Board Meeting Minutes

The minutes of the November 18, 2010, meeting of the NCUA Board have been released. Minutes  11/22/10

Mortgage Relief Scams Charged

The FTC has announced a series of law enforcement actions to crack down on scams that target homeowners behind in their mortgage payments or facing foreclosure. Scams  11/22/10

North Korean Bank Added to OFAC List

Treasury has designated and added to the SDN List the Korea Daesong Bank and Korea Daesong General Trading Corporation for being owned or controlled by Office 39 of the Korean Workers' Party, a secretive branch of the government of the Democratic People's Republic of Korea (North Korea) that engages in illicit economic activities and manages slush funds. Information regarding the entities has been posted on the BOL OFAC page.   11/19/10

314(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet with data current as of November 16, 2010.   11/19/10

FHC List Updated

The list of bank holding companies that elected to become or be treated as financial holding companies (FHCs) as of November 18, 2010, has been released by the FRB. FHC List  11/19/10

FinCEN Advisory Regarding FATF Guidance - AML/CFT Risks

FinCEN has issued an advisory to inform U.S. banks and other financial institutions of the risks associated with jurisdictions identified by the Financial Action Task Force (FATF) as having strategic deficiencies in their anti-money laundering and counter-terrorist financing (AML/CFT) regimes.   11/19/10

Bernanke: Emerging from the Crisis and Rebalancing the Global Recovery

Chairman Bernanke made two presentations at the Sixth European Central Bank Central Banking Conference in Frankfurt, Germany, on the topics of "Emerging from the Crisis: Where Do We Stand?" and "Rebalancing the Global Recovery."   11/19/10

Flood PRP Eligibility Bulletin Issued

The OCC has issued a Bulletin regarding preferred risk policy (PRP) eligibility after flood zone remapping. Bulletin  11/18/10

Volcker Rule Implementation Proposed

The FRB is requesting comments on proposed rule to implement provisions of the Dodd-Frank Act regarding the Volcker Rule. Proposed Rule  11/18/10

Large BHCs Capital Guidelines Issued

The FRB has issued guidelines for capital action proposals by large bank holding companies (BHCs) and an addendum to SR Letter 09-4. Guidelines; SR Letter  11/18/10

Bair on the Crisis and Regulatory Reform

In a speech at the SIFMA National Conference on the Securities Industry in New York City, Chairman Bair discussed the financial crisis and regulatory reform. Speech  11/18/10

Bowman Discusses Thrift History and Future

In a presentation at the 21st Special Seminar on International Finance in Tokyo, Acting Director Bowman discussed the history of the thrift industry and the prospects of the future. Speech  11/18/10

December 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 December 2010, 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. H.15  11/17/10

OFAC CMPs Report Released

OFAC has released the list of civil money penalties (CMPs) recently issued for violations of various Sanctions Programs. No financial institutions were cited. CMPs  11/17/10

Banks Selected for Model Safe Accounts Pilot Program

The FDIC has announced the selection of the banks which will participate in the Model Safe Accounts Pilot Program. Program; Banks  11/17/10

September TIC Data

The Treasury International Capital (TIC) Data Report for September 2010 has been released by the Treasury. TIC  11/17/10

October G.17

The G.17 Industrial Production and Capacity Utilization Report for October 2010 has been released by the FRB. G.17  11/7/10

New FedReceipt Routing Numbers Announced

The FR has announced new Check 21 related FedReceipt routing numbers. Numbers  11/16/10

Daylight Overdrafts and Related Fees

The FRB has issued the Third Quarter 2010 peak and average daylight overdrafts and related fees data. Data  11/16/10

FedFlash Issue Posted

The November 2010 issue of FedFlash has been posted online by the FR. FedFlash  11/16/10

Enforcement Actions

The OTS has announced the Order of Assessment of Civil Money Penalties against the former CEO and six Directors of Imperial S&LA, Martinsville, VA. Order 1; Order 2; Order 3; Order 4; Order 5; Order 6; Order 7  11/16/10

Cost of Funds Reports

The historical and current cost of funds reports have been released by the OTS. Historical; Current  11/16/10

FDIC and NCUA Promote Financial Education and Savings Programs

The FDIC and the NCUA have announced a partnership to promote financial education and savings programs. FDIC PR; NCUA PR  11/16/10

FDIC Publishes Final Rule in FR for Deposit Insurance Regulations

The FDIC is adopting a final rule amending its deposit insurance regulations to implement section 343 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, providing for unlimited deposit insurance for "noninterest-bearing transaction accounts" for two years starting December 31, 2010. TXT; PDF  11/15/10

Commercial Bank Examination Manual Updated

The semi-annual update of the Commercial Bank Examination Manual has been published by the FRB. Manual  11/15/10

FRB's Role in Implementing Dodd-Frank

The FRB has released a list of the actions recently completed and the estimated timetable for several of the initiatives that will be addressed over the next few months to implement the provisions of the Dodd-Frank Act. Role  11/15/10

Two Bridge FCUs Chartered

The NCUA has announced the creation of two new bridge corporate credit unions to assume the operations of Members United Corporate of Warrenville, IL, and Southwest Corporate of Plano, TX. FCUs  11/15/10

Reg X Web Page

The FinCEN has created a web page regarding the transfer of regulations from 31 CFR Part 103 to 31 CFR Chapter X on March 1, 2011. Chapter X  11/15/10

Credit Reports and Scores Guide Online

The Consumers Guide to Credit Report and Credit Scores, which provides practical answers to questions about credit reports, credit scores, and the importance of protecting personal credit histories has been posted online by the Federal Reserve.
Consumer's Guide   11/12/10

November 2010 FedFocus

FRB Financial Services has posted online the November 2010 issue of FedFocus which features an article regarding embracing processing innovations.
FedFocus   11/12/10

Tropical Storm Relief FIL

A FIL has been issued by the FDIC announcing a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of the U.S. Virgin Islands affected by Tropical Storm Otto.
FIL   11/12/10

Unlimited FDIC Insurance for Noninterest-Bearing Transaction Accounts

The FDIC has issued a FIL regarding the approval of a Final Rule to implement section 343 of the Dodd-Frank Act to provide temporary unlimited coverage for noninterest-bearing transaction accounts. BOL has updated the copy of the FDIC's Deposit Insurance regulations (12 CFR Part 330) in ABC Soup. FIL  11/10/10

Dodd-Frank Assessment Changes Implementation Proposed

Two Notices of Proposed Rulemaking (NPRs) that would amend the deposit insurance assessment regulations have been approved by the FDIC. The first would implement changes in the assessment base and the other changes in the deposit insurance assessment system for large institutions. Assessment Base NPR; Large Institutions NPR  11/10/10

2011 CRA Edits and File Specifications

The FFIEC has posted the 2011 CRA Edits and File Specifications. Edits; File Specifications  11/10/10

ComE-IN Meeting Agenda Released

The agenda for the FDIC Advisory Committee on Economic Inclusion (ComE-IN) meeting on November 16, 2010, has been released and includes discussion of children's savings programs and recent studies of underserved consumers. Agenda  11/10/10

Travel Rule Q&A Revised

FinCEN has issued a revised Guidance Question & Answers (Q&A) regarding the transmittal of funds "Travel" rule. Guidance  11/10/10

Senior Loan Officer Opinion Survey

The October 2010 Senior Loan Officer Opinion Survey results have been published by the FRB. Summary; Full Survey  11/09/10

314(a) FACT Sheet

The Treasury has updated the 314(a) Fact Sheet with data current as of November 2, 2010. 314(a)  11/09/10

RB and TRs Issued

A Regulatory Bulletin (RB) regarding sampling, and two Transmittal Letters (TRs) concerning Reg D and Reg Z Final Rules have been published by the OTS. Sampling; Reg Z; Reg D  11/09/10

FEDS Working Paper

A working paper in the Finance and Economics Discussion Series (FEDS) on the topic "Inflation Persistence, Backward-Looking Firms, and Monetary Policy in an Input-Output Economy" has been published by the FRB. Abstract; Full Paper  11/09/10

CRA Ratings Released

The ratings received by state nonmember banks recently evaluated for compliance with the CRA have been released by the FDIC. Ratings  11/08/10

Severe Weather Relief FIL

A FIL has been issued by the FDIC regarding guidance to help financial institutions and facilitate recovery in areas of South Dakota. FIL; Guidance  11/08/10

Consumer Credit Report

The G.19 Consumer Credit Report for September 2010 has been released by the FRB. G.19  11/08/10

CRA Ratings Released

The OTS has released the rating received by savings associations recently evaluated for compliance with the CRA. Ratings  11/05/10

Fair Lending Teleconference FIL

The FDIC has issued a FIL announcing a Fair Lending Teleconference to be held on November 16, 2010 from 2-4 PM EST. Advance registration is required. FIL; Registration  11/05/10

Pakistan Based Terrorist Organizations and Mumbai Attacks Commander Added to OFAC List

The financial and support networks of two Pakistan based terrorist organizations, their leaders, and the mastermind of the Mumbai attack have been designated as SDGTs and their names added to the SDN List. Information regarding the organizations and the individuals has been posted on the BOL OFAC page.  11/05/10

Office of Financial Stability Policy and Research Established

The Federal Reserve has announced the establishment of the Office of Financial Stability Policy and Research. Office  11/05/10

CMPs Announced

Civil Money Penalties (CMPs) of have of $75,000 been announced by the OTS for a HMDA violation and a total of $21,560 for four flood violations. Information regarding the CMPs has been posted on the BOL HMDA Heaven and Flood Penalties Watch pages.  11/04/10

Iranian Movement Added to OFAC List

An Iranian resistance movement has been designated as a SDGT and added to the SDN List. Information regarding the movement has been posted on the BOL OFAC page.  11/04/10

FOMC to Purchase $600 Billion Treasury Securities

The Federal Open Market Committee (FOMC) has announced it will purchase $600 billion longer-term Treasury securities by the end of the second quarter of 2011. The target rate of federal funds will be maintained at the current level of 0 to 1/4 percent. Purchase; Target Rate Statement  11/04/10

Treasury Borrowing Committee Minutes

The minutes of the November 2, 2010, meeting of the Treasury Borrowing Advisory Committee of the Securities Industry and Financial Markets Association have been released along with the Committee's Report to Secretary Geithner. Minutes; Report  11/04/10

Quarterly Refunding Statement

The Treasury has issued the November 2010 Quarterly Refunding Statement. Statement  11/04/10

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and between Northern California Bancorp, Inc. and the Federal Reserve Bank of San Francisco. Agreement  11/03/10

Reserve Position Report

The October 29, 2010, International Reserve Position Report has been released by the Treasury. Report  11/03/10

2011 FRB Fee Schedules

The fee schedules for payment services the Federal Reserve Banks provide to depository institutions effective January 3, 2011, have been released. Schedules  11/02/10

FEMA Risk Policy CEO Letter

A CEO Letter has been issued by the OTS regarding the two year extension of eligibility for purchasing a FEMA Preferred Risk Policy. CEO Letter  11/02/10

Indirect Lending Webinar Agenda

The agenda for the "Indirect Lending: Balancing the Risks and Rewards" webinar to hosted by the NCUA on November 9, 2010, in Alexandria, VA. has been released. Agenda  11/02/10

Otto Relief FIL

A FIL has been issued by the FDIC: "Guidance to Help Financial Institutions and Facilitate Recovery in the Commonwealth of Puerto Rico Affected by Tropical Storm Otto". FIL; Guidance  11/02/10

October Exchange Rates Report

The October 2010 G.5 Foreign Exchange Rates Report has been released by the FRB. G.5  11/02/10

OFAC CMPs Announced

Payment of $229,380 by a financial entity to settle allegations that it violated Sudanese Sanctions Regulation was one of the six Civil Money Penalties (CMPs) announced by OFAC. CMPs  11/01/10

CU Closed

The Union Credit Union, Spokane, WA, has been closed by the Washington Department of Financial Institutions. The NCUA was appointed liquidating agent and entered into agreements with the Alaska USA Federal Credit Union of Anchorage and Numerica Credit Union of Spokane to purchase certain assets and liabilities. The Union Credit Union  11/01/10

Flood and HMDA CMPs Announced

The FDIC has released the list of orders of administrative enforcement actions taken against banks and individuals in September 2010. Information regarding fifteen flood civil money penalties (CMPs) totaling $51,000 and eight HMDA CMPs totaling $38,000 have been posted on the BOL Flood Penalties Watch and HMDA Heaven pages. Enforcement Actions  11/01/10

Money Smart Curriculum Updated

The Money Smart Curriculum for Adults has been updated by the FDIC. Curriculum  11/01/10

FEDS Working Papers Published

Two working papers in the Finance and Economics Discussion Series (FEDS) on the following topics have been published by the FRB:

1. "Mortgage Contract Choice in Subprime Mortgage Markets",
2. "Financial Integration, Entrepreneurial Risk and Global Dynamics".

Mortgage Abstract; Mortgage Full Paper; Financial Abstract; Financial Full Paper  11/01/10

Reserve Position Updated

The October 22, 2010, U.S. International Reserve Position report has been updated by the Treasury. Reserve Position  11/01/10