Top Stories for March 2010

FEMA Flood Insurance Authority Lapses

A Consumer Affairs (CA) Letter has been issued by the FRB to provide Informal Guidance regarding the lapse of the authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance contracts under the National Flood Insurance Program (NFIP). CA Letter; Guidance  3/31/10

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among BankTennessee Bancshares, Inc., Collierville, TN, a registered bank holding company, BankTennessee, Collierville, TN, a state chartered member bank, and the Federal Reserve Bank of St. Louis. Agreement  3/31/10

Consumer Credit Cards CA Letter Issued

The FRB has issued a Consumer Affairs (CA) Letter regarding the Reg. Z (Truth In Lending) requirements concerning the submission of consumer credit card agreements. CA Letter  3/31/10

FHC List Updated

The FRB has updated the list of bank holding companies (BHCs) with the addition of those that have become or elected to be treated as financial holding companies (FHCs) as of March 29, 2010. List  3/31/10

Exam Procedures Regarding Reporting of Consumer Information

A Consumer Affairs (CA) Letter has been issued by the FRB the development of an examination module regarding the duties of furnishers of consumer information to a consumer reporting agency. CA Letter; Exam Procedures  3/31/10

G. 20 Report Released

The January, 2010, G. 20 Finance Companies Report has been released by the FRB. G.20  3/310/10

$5M BSA CMP

The OTS has the assessed a civil money penalty of $5 million against Pamrapo Savings Bank, SLA, of Bayonne, NJ for violations of the Bank Secrecy Act. The CMP will be satisfied through an asset forfeiture payment to the Justice Department. CMP  3/30/10

FinCEN Withdraws AML/CFT Advisory

The Advisory previously issued regarding Uzbekistans anti-money laundering and countering the financing of terrorism (AML/CFT) regime has been withdrawn and Uzbekistan is no longer subject to the Financial Action Task Force (FATF) enhanced monitoring process. Advisory  3/30/10

UBPR Available Online

The FFIEC has announced that the Uniform Bank Performance Report (UBPR) is available to the public through the interagency Central Data Repository (CDR) Public Data Distribution (PDD) web site. Web Site; FFIEC PR  3/30/10

Counterfeit Checks Alerts

The OCC has issued two alerts regarding counterfeit cashier's checks isued in the name of the following banks: Valley National Bank, Wayne, NJ, and First National Bank of Darlington, Darlington, WI. Information concerning the counterfeit checks has been posted on the Alerts & Counterfeits page.  3/29/10

CMPs Announced

The FDIC has released a list of sixty-four orders of administrative enforcement actions taken against banks and individuals in February, 2010. The actions include four civil money penalties (CMPs) totaling $40,450 for flood violations and six totaling $24,000 for HMDA violations. Information regarding the violations and CMPs have been posted on the Flood Penalties Watch page and the HMDA Civil Money Penalties page. Enforcement Actions  3/29/10

HAMP and FHA Programs Modified

The Treasury has announced adjustments to the Home Affordable Modification Program (HAMP) and to the Federal Housing Administration (FHA) programs. The modifications expand flexibility for mortgage servicers and originators to assist more unemployed homeowners and to help more people who owe more on their mortgage than their home is worth. HAMP; FHA; FAQs; Examples  3/29/10

NCUA Proposes Rulemaking for Fiduciary Duties at Federal Credit Unions; Mergers and Conversions of Insured Credit Unions

The proposal documents and clarifies the fiduciary duties and responsibilities of Federal credit union directors, and adds new provisions establishing the procedures for insured credit unions merging into banks. It also amends some of the existing regulatory
procedures applicable to insured credit union mergers with other credit unions and conversions to banks. TXT; PDF  3/29/10

OFAC Designates al-Qai'da Financial Supporter

The support network of al-Qai'da in Iraq (AQI) has been targeted by OFAC with the designation of a key supporter for providing financial, material, or technological support and financial or other services and adding his name to the SDN List. Information regarding the addition has been posted on the OFAC page.  3/26/10

Written Agreements Announced

The FRB has announced the execution of the following written agreements:

1. by and among Coconut Grove Bank, Miami, FL, a state chartered member bank, the Federal Reserve Bank of Atlanta, and the State of Florida, Office of Financial Regulation;
2. by and among United Security Bancshares, Inc., a registered bank holding company, United Security Bank, a state chartered member bank, both of Fresno, CA, and the Federal Reserve Bank of San Francisco;
3. by and between Royal Bancshares of Pennsylvania, Inc., Narberth, PA, a registered bank holding company, and the Federal Reserve Bank of Philadelphia.

United Security; Coconut Grove; Royal Bancshares  3/26/10

Mortgage Metrics Report Released

The Fourth Quarter, 2009, Mortgage Metrics Report has been released. Report  3/26/10

Geithner Hosts Military Family Roundtable

A roundtable was hosted by Secretary Geithner for military advocacy groups and Department of Defense personnel to discuss the core consumer protection issues facing service members and their families. Roundtable; Geithner's Remarks  3/26/10

Bernanke Discusses Exit Strategy

In testimony before the House Financial Services Committee, Chairman Bernanke discussed the Federal Reserve's strategy for exiting from the extraordinary lending and monetary policies that it implemented to combat the financial crisis and support economic activity. Testimony  3/26/10

Mexican Cartel Members added to OFAC List

OFAC has designated 54 principal lieutenants and enforcers for two drug trafficking cartels that are responsible for much of the current bloodshed in Mexico as Specially Designated Narcotics Traffickers (SDNTs) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act). Information regarding the additions has been posted on the OFAC page.  3/25/10

FDIC Publishes Final Rule Correction in FR for Transitional Safe Harbor Protection

The FDIC is correcting a final rule that appeared in the Federal Register of March 18, 2010 (75 FR 12962). This rule added a new provision in order to continue for a limited time the safe harbor provision for securitizations that would be affected by recent changes to generally accepted accounting principles. It permanently "grandfathered all securitizations for which financial assets were transferred or, for revolving trusts, for which securities were issued prior to September 30, 2010 so long as those securitizations complied with the preexisting requirements under generally accepted accounting principles in effect prior to November 15, 2009. TXT; PDF  3/25/10

NCUA Proposed Rulemaking for Fixed Assets, Member Business Loans, and Regulatory Flexibility Program

NCUA proposes to revise certain provisions of its Regulatory Flexibility Program (RegFlex) to enhance safety and soundness for credit unions. Those provisions pertain to fixed assets, member business loans (MBL), stress testing of investments, and discretionary control of investments. Some of these revisions will require conforming amendments to NCUA's fixed assets and MBL rules. TXT; PDF  3/25/10

New Electronic Interpretations and Actions

The OCC has announced the March, 2010, New Electronic Interpretations and Actions. New  3/25/10

314(a) Fact Sheet Updated

The FinCEN has updated the 314(a) Fact Sheet with data current as of March 23, 2010. 314(a)  3/25/10

Survey of Terms of Business Lending Released

The Federal Reserve has released the February 1-5, 2010, E.2 Survey of Terms of Business Lending statistical release. E.2  3/25/10

Agricultural Finance Databook Released

The March, 2010, E.15 Agricultural finance Databook has been released by the FRB. E.15  3/25/10

NCUA on Twitter

To follow NCUA on Twitter, log on and select TheNCUA. Twitter  3/25/10

Student Loans may be Discharged in Bankruptcy

The U. S. Supreme Court has issued a 9-0 opinion that a debtor in a Chapter 13 bankruptcy proceeding may obtain a discharge of government-sponsored student loan debts if failure to discharge that debt would impose an "undue hardship" on the debtor and his dependents. Opinion  3/24/10

Gift Cards Final Rule

The FRB has announced a final rule which will be effective August 22, 2010, to restrict fees and expiration dates on gift cards. Highlights; Final Rule  3/24/10

Private Investors of Failing Banks Roundtable

The FDIC held a roundtable discussion with a wide variety of interested groups, including public interest organizations, pension funds, private investors, investment managers, and others, to discuss the application of the FDIC Statement of Policy on the Acquisition of Failed Insured Institutions. Roundtable; Statement  3/24/10

Large Commercial Banks Data Released

The FRB has released the Fourth Quarter, 2009, data on domestically chartered insured commercial banks that have consolidated assets of $300 million or more. Data  3/24/10

Geithner on the Housing Crisis

In written testimony to the House Committee on Financial Services, Secretary Geithner discussed the functions of the Government Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, and the actions by the Treasury and the Federal Reserve to restore stability in the housing market and to maintaining the availability of mortgage credit. Testimony  3/24/10

TARP Executive Compensation Ruling Issued

The Special Master for TARP Executive Compensation has issued his rulings on 2010 executive pay packages for the 'Top 25' executives at the five firms that received exceptional assistance from taxpayers and have not repaid the assistance. Ruling  3/24/10

Counterfeit Checks Special Alerts

The FDIC has issued two Special Alerts regarding counterfeit cashier's and official checks bearing the name of Beal Bank, SSB, Plano, TX, and First Bank & Trust, Sioux Falls, SD. Information concerning the counterfeit checks has been posted on the Alerts & Counterfeits page.  3/23/10

Written Agreement Announced

The FRB has announced the execution of a written Agreement by and among Belvedere Capital Partners II LLC, San Francisco, CA; Belvedere Capital Fund II LP, San Francisco, CA; Socal Bancorporation, San Francisco, CA, registered bank holding companies, and the Federal Reserve Bank of San Francisco. Agreement  3/23/10

Interagency Policy Statement Bulletin

The OCC has issued a bulletin regarding the previously announced Interagency Policy Statement on Funding and Liquidity Risk Management. Information concerning the Statement was posted in March 18, 2010 Top Stories. Bulletin  3/23/10

FEDS Working Paper

A working paper in the Finance and Economics Discussion Series (FEDS) on the topic of "Variance Risk Premia, Asset Predictability Puzzles, and Macroeconomic Uncertainty" has been published by the FRB. Abstract; Full Paper  3/23/10

Seven Banks Closed

The FDIC has announced that the following seven financial institutions have been closed by their primary regulator and the actions taken:

1. American National Bank, Parma, OH, by the OCC; the FDIC as receiver entered into a purchase and assumption agreement with The National Bank and Trust Company, Wilmington, OH, to assume all of the deposits;
2. Century Security Bank, Duluth, GA, by the Georgia Department of Banking and Finance; the FDIC as receiver entered into a purchase and assumption agreement with Bank of Upson, Thomaston, GA, to assume all of the deposits;
3. Advanta Bank Corp., Draper, UT, by the Utah Department of Financial Institutions; the FDIC as receiver approved the payout of the insured deposits;
4. Appalachian Community Bank, Ellijay, GA, by the Georgia Department of Banking and Finance; the FDIC as receiver entered into a purchase and assumption agreement with Community & Southern Bank, Carrollton, GA, to assume all of the deposits;
5. Bank of Hiawassee, Hiawassee, GA, by the Georgia Department of Banking and Finance; the FDIC as receiver entered into a purchase and assumption agreement with Citizens South Bank, Gastonia, NC, to assume all of the deposits;
6. First Lowndes Bank, Fort Deposit, AL, by the Alabama Banking Department; the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Citizens Bank, Luverne, AL, to assume all of the deposits;
7. State Bank of Aurora, Aurora, MN, by the Minnesota Department of Commerce; the FDIC as receiver entered into a purchase and assumption agreement with Northern State Bank, Ashland, WI, to assume all of the deposits.

American; Century; Advanta; Appalachian; Bank of Hiawassee; First Lowndes; State Bank  3/22/10

CU in Conservatorship

The Tracy Federal Credit Union of Tracy, CA, has been placed in conservatorship by the NCUA and as authorized by Federal Credit Union Act the NCUA Board was appointed as conservator. Tracy Federal  3/22/10

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  3/22/10

OFAC CMPs Announced

The civil money penalties (CMPs) recently assessed by OFAC against individuals and entities for violations of various Sanctions Programs have been announced. No financial institutions were cited. CMPs  3/22/10

Regulators on Community Banking

In presentations at the Independent Community Bankers of America National Convention, FRB Chairman Bernanke, FDIC Chairman Bair, Comptroller Dugan and OTS Acting Director Bowman discussed the challenges faced by and the role for community banking to provide credit and services supporting small businesses, home purchases, and commercial development. Bernanke Speech; Bair Speech; Dugan Speech; Bowman Speech  3/22/10

Quarterly Bank Trading and Derivatives Report

The OCC has released the Quarterly Report on Bank Trading and Derivatives Activities for the Fourth Quarter, 2009, which indicates the credit exposure from derivatives activities declined 18 percent in the fourth quarter and by 50 percent during 2009. Report  3/22/10

FDIC Consumer News

The Winter 2009/2010 issue of the FDIC Consumer News has been posted online and contains articles regarding ways to protect online banking, the deposit of paper checks online, internet commerce, new federal rules concerning ODs, and tips for managing medical debt. News  3/22/10

OFAC Adds SDNTs and SDGTs

OFAC has designated and added to the SDN List the names of fifteen individuals and eight companies as Specially Designated Narcotics Traffickers (SDNTs) for their ties to a Colombian narcotics trafficker and also designated the Islamic National Bank of Gaza for being controlled by Hamas, a Specially Designated Global Terrorist (SDGT), and Al-Aqsa Television, a television station in Gaza financed and controlled by Hamas. Information regarding the additions has been posted on the OFAC page.  3/19/10

CRA Ratings Released

The OCC has released the ratings received by national banks recently evaluated for compliance with the provisions of the CRA. Ratings  3/19/10

Prohibition Orders Issued

The NCUA has issued orders prohibiting three individuals from participating in the affairs of any federally insured financial institution. Orders  3/19/10

FinCEN AML/Counter-Terrorist Financing Risks Guidance

Two guidances have been issued by FinCEN regarding statements issued by the Financial Action Task Force concerning anti-money laundering (AML) and counter-terrorist financing risks. Guidance 1; Guidance 2  3/19/10

Wachovia to Pay $160 CMP and Forfeiture

The OCC has announced a $50 million Civil Money Penalty (CMP) and a Cease and Desist Order against Wachovia Bank, N.A. for violations of the BSA as part of a coordinated action with the Department of Justice, Financial Crimes Enforcement Center and other federal agencies. Wachovia also entered into a deferred prosecution agreement with the U.S. Attorneys Office in the Southern District of Florida and the Asset Forfeiture and Money Laundering Section of the Criminal Division of the Department of Justice and agreed to forfeit $110 million to the United States. CMP; Consent Order; OCC NR; Justice PR  3/18/10

Funding and Liquidity Risk Management Interagency Policy Statement

The Federal banking agencies have issued a joint interagency policy statement on funding and liquidity risk management. Statement; FRB PR; FDIC PR; OTS CEO Ltr; OCC NR; NCUA NR  3/18/10

FDIC Publishes Final Rule in FR for Transitional Safe Harbor Protection for Treatment by the Federal Deposit Insurance Corporation as Conservator or Receiver of Financial Assets

This amendment adds a new provision in order to continue for a limited time the safe harbor provision for securitizations that would be affected by recent changes to generally accepted accounting principles. This Final Rule permanently "grandfathers" all securitizations for which financial assets were transferred or, for revolving trusts, for which securities were issued prior to September 30, 2010 so long as those securitizations complied with the preexisting requirements under generally accepted accounting principles in effect prior to November 15, 2009. The transitional safe harbor will apply irrespective of whether or not the securitization satisfies all of the conditions for sale accounting treatment under generally accepted accounting principles as effective for reporting periods after November 15, 2009. TXT; PDF  3/18/10

Community Bank Directors Workshops Schedules

The OCC will host workshops in Philadelphia and Shreveport for community bank directors.
Philadelphia; Shreveport  3/18/10

Bernanke Discusses Federal Reserve's Role in Bank Supervision

In testimony before the House Committee on Financial Service Services, Chairman Bernanke discussed the Federal Reserve's role in bank supervision and the actions taken to strengthen its supervisory oversight. He noted the Federal Reserve's wide range of expertise makes it uniquely suited to supervise large, complex financial institutions and to help identify risks to the financial system as a whole. Testimony  3/18/10

DSR and FOR Ratios Released

The FRB has released the Fourth Quarter household debt service ratio (DSR) and the financial obligations ratio (FOR). Ratios  3/18/10

Reserve Position Updates

The Treasury has released the U.S. International Reserve Position Reports for March 5 and 12, 2010. March 5; March 12  3/18/10

FEDS Working Paper Published

A working paper in the Finance and Economics Discussion Series (FEDS) on the topic of "A Reliable and Computationally Efficient Algorithm for Imposing the Saddle Point Property in Dynamic Models" has been published by the FRB. Abstract; Full Paper  3/18/10

April 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 April, 2010, will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury seecurities 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  3/17/10

Fed Funds Rate Unchanged

The Federal Open Market Committee (FOMC) has announced that it will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic condition, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. FOMC  3/17/10

FedFlash Online

The March 15, 2010, issue of FedFlash has been posted online. FedFlash  3/16/10

FDIC Safe Online Banking

The Winter 2009/2010 issue of FDIC Consumer News, published by the FDIC contains ten ways to protect against theft and errors online regarding online banking, bill paying and shopping. Summary; Consumer News  3/16/10

TIC Data Released

The Treasury has released the Treasury International Capital (TIC) data for January, 2010. TIC  3/16/10

Cost of Funds Reports Issued

The OTS has issued the Current and Historical Cost of Funds to OTS Insured Institutions Reports. Current; Historical  3/16/10

February G.17 Released

The G.17 Industrial Production and Capacity Utilization Report for February, 2010, has been released by the FRB. G. 17  3/16/10

FRB Proposes Rulemaking for Truth in Lending

The Board proposes to amend Regulation Z, which implements the Truth in Lending Act, and the staff commentary to the regulation in order to implement provisions of the Credit Card Accountability Responsibility and Disclosure Act of 2009 that go into effect on August 22, 2010. In particular, the proposed rule would require that penalty fees imposed by card issuers be reasonable and proportional to the violation of the account terms. The proposed rule would also require credit card issuers to reevaluate at least every six months annual percentage rates increased on or after January 1, 2009. TXT; PDF  3/15/10

Order Of Prohibition

The FRB has announced the issuance of a Final Decision and Order of Prohibition against Adam L. Benarroch, a former employee of Midwest Bank and Trust of Elmwood Park, IL, which prohibits him from participating in the conduct of the affairs of any financial institution or holding company. The Order is the result of allegations that he fabricated documents, forged signatures, and altered loan agreements. Order  3/15/10

Revised Interagency Questions and Answers on Community Reinvestment

A Consumer Affairs (CA) letter has been issued by the FRB regarding the previously announced new and revised Interagency Questions and Answers Regarding Community Reinvestment. Information concerning the Q&A were posted in the March 12, 2010, Top Stories. CA Letter   3/15/10

Fourth Quarter 2009 State Profiles

The FDIC has released the FDIC State State Profiles for the Fourth Quarter 2009 which contain a quarterly data sheet summation of banking and economic conditions in each state. Profiles  3/15/10

RBMS Notes Sale

The FDIC has closed on a sale of notes backed by residential mortgage backed securities (RMBS) from seven failed bank receiverships. Summary; Diagram  3/15/10

Warrants Pricing Announced

The Treasury has announced the pricing of a secondary public offering of 758,086 warrants to purchase common stock of Texas Capital Bancshares, Inc. Warrants  3/15/10

CRA Interagency Q&A

The federal financial institution regulatory agencies recently updated the Interagency Questions and Answers Regarding Community Reinvestment that provide additional guidance regarding the CRA regulations. The update supersedes all previously published Interagency Questions and Answers. Q&A; OCC Bulletin; FDIC FIL; FFIEC  3/12/10

Bank Closed

LibertyPointe Bank, New York, NY, was closed by the New York State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Valley National Bank, Wayne, NJ, to assume all of the deposits of LibertyPointe Bank. LibertyPointe Bank  3/12/10

Written Agreements Announced

The FRB has announced the execution of Written Agreements:by and among NW Services Corporation, Ringgold, GA, a registered bank holding company, the Federal Reserve Bank of Atlanta, and the Banking Commissioner of the State of Georgia; and by and between Florida First City Banks, Fort Walton Beach, FL, a registered bank holding company, and the Federal Reserve Bank of Atlanta. NW; Florida  3/12/10

CRA Ratings Released

The OTS has released the ratings received by savings associations that were recently evaluated for compliance with the provisions of the CRA. Ratings  3/12/10

Signature Bank Warrants Priced

The Treasury has announced the pricing of a secondary public offering of 595,829 warrants to purchase common stock of Signature Bank. Warrants  3/12/10

Flow Of Funds Report

The FRB has released the Z.1 Flow of Funds Report for the Fourth Quarter, 2010. Z.1  3/12/10

S.A.F.E. Act FAQs

The FFIEC has posted frequently asked questions (FAQs) online concerning the Secure and Fair Enforcement for Mortgage Licensing Act (S.A.F.E. Act). FAQs  3/11/10

Written Agreements Executed

The FRB has announced the execution of two Written Agreements: by and between Olmsted Holding Corporation, Rochester, MN, a registered bank holding company, and the Federal Reserve Bank of Minneapolis; and by and among Idaho Bancorp, a registered bank holding company, Idaho Banking Company, a state chartered member bank, both of Boise, ID, the Federal Reserve Bank of San Francisco and the State of Idaho Department of Finance. Olmsted; Idaho  3/11/10

OFAC CMPs Released

The civil money penalties (CMPs) recently assessed against individuals and entities for violations of the various Sanctions Programs have been released by OFAC. No financial institutions were cited. CMP 1; CMP 2  3/11/10

Pricing of Warrants Announced

The Treasury has announced the pricing of a secondary public offering of 1,707,456 warrants to purchase common stock of Washington Federal, Inc. Pricing  3/11/10

Geithner on the Budget

In written testimony to the General Government and Financial Services Subcommittee of the House Committee on Appropriations, Secretary Geithner discussed the Treasury FY 2011 Budget. He noted that it focuses on repairing and reforming the financial system to make it safer, and help assure that its benefits are broadly shared, boosting voluntary compliance with our tax code to pay for vital government functions, advancing our global economic interests and national security, and rebuilding the Treasury's professional staff. Testimony  3/11/10

Economics Working Paper Published

The OCC has published an Economics Working Paper on the topic "Limits to Relative Performance Evaluation: Evidence from Bank Executive Turnover". Full Paper  3/11/10

Written Agreement Announced

The execution of a Written Agreement has been announced by the FRB by and among Ravalli County Bankshares, Inc., a registered bank holding company, Ravalli County Bank, a state chartered member bank, both of Hamilton, MT, the Federal Reserve Bank of Minneapolis, and the Montana Division of Banking and Financial Institutions. Agreement  3/10/10

Prompt Corrective Action Directive Issued

The issuance of a Prompt Corrective Action Directive against Horizon Bank, Bradenton, FL, a state chartered member bank, has been announced by the FRB. Directive  3/10/10

314(a) Fact Sheet Updated

The FinCEN has updated the 314(a) Fact Sheet with data current as of March 9, 2010. 314(a)  3/10/10

FFIEC Web Site Changes

The E.16 Country Exposure Lending Survey and Country Exposure Information Report for June 26, September 25 and December 28, 2009, were revised to reflect corrections to data submitted by financial institutions. E.16  3/10/10

Credit Auction Results

The FRB has announced the results of the auction of $25 billion in 28-day credit held on March 8, 2010. Auction  3/10/10

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and between Heritage Oaks Bancorp, Paso Robles, CA, a registered bank holding company, and the Federal Reserve Bank of San Francisco. Agreement  3/09/10

FDIC Consumer Tips Online

The FDIC has announced that consumers can receive quick tips online. FDIC PR; Tip of the Week  3/09/10

Public Offering of Warrants

The Treasury has announced the commencement of secondary public offerings of warrants to purchase the common stock of Washington Federal, Inc., Signature Bank, and Texas Capital Bancshares, Inc. Warrants  3/09/10

Bair Discusses The Economic Crisis

In a presentation to the National Association for Business Economics Washington Policy Conference, Chairman Bair discussed the extraordinary policy actions taken by the FDIC and other government agencies. She noted the initial crisis has receded, but various problems remain including persistent high unemployment, impaired household balance sheets, and high levels of problem loans and troubled financial institutions. Speech  3/09/10

Reserve Position Report Updated

The U.S. International Reserve Position Report has been updated by the Treasury with data current as of March 5, 2010. Report  3/09/10

Banks Closed

The following three banks have been closed by their primary regulator and the FDIC, as the appointed Receiver, has taken the listed actions:

1. Sun American Bank, Boca Raton, FL by the Florida Office of Financial Regulation; the FDIC as receiver entered into a purchase and assumption agreement with First-Citizens Bank & Trust Company, Raleigh, NC, to assume all of the deposits;
2. Bank of Illinois, Normal, ILs, by the Illinois Department of Financial Professional Regulation – Division of Banking; the FDIC as receiver entered into a purchase and assumption agreement with Heartland Bank and Trust Company, Bloomington, IL, to assume all of the deposits;
3. Waterfield Bank, Germantown, MD, by the OTS; FDIC as receiver created Waterfield Bank, FA, a new depository institution chartered by the OTS and insured by the FDIC to take over the operations.

Sun; Bank of Illinois; Waterfield  3/08/10

CU Liquidated Accounts Assumed

NCUA has liquidated Lawrence County School Employees Federal Credit Union of New Castle, PA, and accepted New Castle, PA, based First Choice Federal Credit Union's offer to purchase and assume the credit union. Lawrence County  3/08/10

CRA Ratings Released

The FDIC has released a list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). Ratings  3/08/10

Beneficial Ownership Interagency Guidance

The federal financial institution regulators and the SEC, in consultation with the Commodity Futures Trading Commission, have issued an interagency Guidance on Obtaining and Retaining Beneficial Ownership Information clarifies and consolidates existing regulatory expectations for financial institutions obtaining beneficial ownership information for certain accounts and customer relationships. Guidance; FRB SR Letter; FinCEN NR; FDIC FIL; OCC Bulletin; OTS CEO Letter  3/08/10

G.19 Report Released

The FRB has released the January, 2010, G.19 Consumer Credit Report. G.19  3/08/10

BHC Supervision Manual Updated

The FRB has issued the January, 2010, update of the Bank Holding Company (BHC) Supervision Manual. By Section; Entire Manual  3/05/10

Bair on Housing and Mortgages

In a presentation at the 2010 Multicultural Real Estate and Policy Conference, Chairman Bair stated "Restoring stability to our real estate markets will be essential to our economic recovery." She noted that as the policy challenges of today are being addressed, the groundwork needs to be laid for a fairer, more stable, and more inclusive financial system. Speech  3/05/10

Reverse Mortgage Fraud Case

The FinCEN has announced that it is assisting the U.S. Attorney's Office in the prosecution of a case against the individuals indicted by a federal grand jury on charges of conspiracy to commit financial institution fraud involving so-called "reverse" mortgages. Case  3/05/10

FEDS Working Papers Published

Two working papers in the Finance and Economic Discussion Series (FEDS) have been published on the topics of "Managing Beliefs about Monetary Policy under Discretion" and "Mergers and Sequential Innovation: Evidence from Patent Citations". Managing Abstract; Managing Full Paper; Mergers Abstract; Mergers Full Paper  3/05/10

FedFocus March 2010

The March, 2010, issue of FedFocus has been published by Federal Reserve Financial Services. FedFocus  3/05/10

Reg Z Credit Card Rules Proposed

A rule amending Regulation Z (Truth in Lending) to protect credit card users from unreasonable late payment and other penalty fees and to require credit card issuers to reconsider increases in interest rates has been proposed by the FRB. Rule  3/04/10

C & D Order Issued

The NCUA Board has issued an Order to Cease and Desist which addresses various regulatory and safety and soundness concerns related to a credit union0308s plans to build a new main office. Order  3/04/10

Beige Book

The FRB has updated the Beige Book with information collected on or before February 22, 2010. Summary; Full Report  3/04/10

FRB Legal Developments Report

The FRB has published the Fourth Quarter 2009 Legal Developments Report. Report  3/04/10

IFDP Working Papers Published

The FRB has published two working papers in the International Finance Discussion Paper (IFDP) series on the topic of "Heterogeneous Firms and Import Quality: Evidence from Transaction-Level Prices" and "Technology Shocks: Novel Implications for International Business Cycles". Heterogeneous Abstract; Heterogeneous Full Paper; Technology Abstract; Technology Full Paper  3/04/10

78 Drug Traffickers Added to OFAC List

OFAC has designated two of Colombia's most wanted drug traffickers, as Specially Designated Narcotics Traffickers (SDNTs), due to their significant roles in international narcotics trafficking and also today designated 29 other individuals and 47 entities as SDNTs. The names of the designated individuals and entities were added to the SDN List. Five names were also deleted from the List and two entries were changed. Information regarding the additions, deletions and changes has been posted on the OFAC page.  3/03/10

Check Processing Changes Completed

The FRB has announced that they have completed the reduction in paper check processing infrastructure that was begun in late 2003. Check Processing  3/03/10

New Electronic Interpretations and Actions

The OCC has released the February, 2010, New Electronic interpretations and Actions. New  3/03/10

CRA Exam Schedule Released

The OCC has released its Second Quarter 2010 CRA exemption schedule. Schedule  3/02/10

Written Agreement Executed

The FRB has announced the execution of a Written Agreement by and between Northwest Community Bancorp, Inc., Shoreline, WA, a registered bank holding company, and the Federal Reserve Bank of San Francisco. Agreement  3/02/10

Dugan Discusses Basel Proposals

In a presentation to the Institute for International Bankers, Comptroller Dugan noted that the Basel Committee is focusing on the quality of capital, as well as the amount of capital banks must hold. It is utilizing a calibration exercise that will help regulators squarely confront the tension between capital and liquidity on the one hand and credit availability on the other. Speech  3/02/10

MSB Registration List Updated

The FinCEN has updated the MSB Registration list with data current as of February 10, 2010. Lis  3/02/10

OFAC Annual Report Released

The Calendar Year 2009 Annual report on Assets in the United States of Terrorist countries and International Terrorism Program Designees has been released by OFAC. Report

Reserve Position Report

The Treasury has released the U.S. International Reserve Position Report for February 26, 2010. Report  3/02/10

Public Offerings of BOA Warrants Announced

The Treasury has announced commencement of secondary public offerings of warrants to purchase the common stock of Bank of America Corporation (BOA). Offerings  3/02/10

Foreign Exchange Rates Report

The G.5 Foreign Exchange Rates Report for February, 2010, has been released by the FRB. G.5  3/02/10

Enforcement Actions Released

The FDIC has released a list of 67 orders of administrative enforcement actions taken against banks and individuals in January, 2010. Actions  3/01/10

Retail Payments Booklet SR Letter

The FRB has issued a SR Letter regarding the previously announced update of the FFIEC Retail Payment System Booklet. Information concerning the update was posted in the February 26, 2010, Top Stories. SR Letter  3/01/10

Clarification of FDIC Loss-Sharing Agreements

The federal banking agencies have issued a statement in response to questions received regarding the treatment of loss-sharing agreements entered into with the FDIC as conditional guarantees for risk-based capital purposes. Statement; FRB SR Letter; FDIC FIL; OTS CEO Letter  3/01/10

FBAR Changes Proposed

The FinCEN has issued a Notice of Proposed Rulemaking (NPRM) proposing to amend the Bank Secrecy Act (BSA) implementing regulations regarding the Report of Foreign Bank and Financial Accounts (FBAR). NPRM  3/01/10

FRB Publishes Final/Proposed Rules in FR:Final Rule for Extensions of Credit by Federal Reserve Banks

The Board of Governors of the Federal Reserve System has adopted final amendments to its Regulation A to reflect the Board's approval of an increase in the primary credit rate at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically increased by formula as a result of the Board's primary credit rate action. TXT; PDF  3/01/10

Proposed Rule for Electronic Fund Transfers

On November 17, 2009, the Board published final rules amending Regulation E, which implements the Electronic Fund Transfer Act, and the official staff commentary to the regulation. The final rule limited the ability of financial institutions to assess overdraft fees for paying automated teller machine (ATM) and one-time debit card transactions that overdraw a consumer's account, unless the consumer affirmatively consents, or opts in, to the institution's payment of overdrafts for those transactions. The Board proposes to amend Regulation E and the official staff commentary to clarify certain aspects of the final rule. TXT; PDF  3/01/10

Proposed Rule for Truth in Savings

On January 29, 2009, the Board published final rules amending Regulation DD, which implements the Truth in Savings Act, and the official staff commentary to the regulation. The final rule addressed depository institutions' disclosure practices related to overdraft services, including balances disclosed to consumers through automated systems. The Board proposes to amend Regulation DD and the official staff commentary to clarify the application of the rule to retail sweep programs and the terminology for overdraft fee disclosures, and to make amendments that conform to the Board's final Regulation E amendments addressing overdraft services, adopted in November 2009. TXT; PDF  3/01/10

Dugan Warns of Loan Growth Challenges

In testimony before the House Committees on Financial Service and Small Business, Comptroller Dugan warned that lower demand, distressed banks, and tighter underwriting presented ongoing challenges to loan growth. Written Statement; Oral Testimony  3/01/10

IFDP Working Paper

The FRB has issued a working paper in the International Finance Discussion Papers (IFDP) service on the topic of Firm-Specific Capital, Nominal Rigidities and the Business Cycle. Abstract; Full Paper  3/01/10