Top Story Compliance Related

• Banking Agencies Issue Host State Loan-to-Deposit Ratios

  The FRB, FDIC and OCC issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. FRB Joint Press Release, OCC 2001-29, FDIC-PR-47-2001 FDIC:FIL-56-2001 6/29/01

• OFAC CORRECTS ERRORS IN DOWNLOADABLE FILES

  At 1:30 p.m. yesterday, OFAC corrected errors in the downloadable delimited .zip and .exe files it makes available on its Web site. Earlier yesterday, as noted in yesterday's special BOL OFAC alert, the Office of Foreign Assets Control updated the OFAC list to add 35 new specially designated nationals who are believed to threaten stabilization efforts in the Western Balkans. The errors in the downloadable files related to those earlier changes and affect only those people who downloaded the files within the few hours between when the list changed and when the delimited file errors were discovered and corrected by OFAC.6/28/01

• Comptroller Views Underwriting Tightening Rational Response to Previous Lending Excesses

  The OCC's seventh annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened during the 12-month period ending March 31, 2001. OCC:NR 2001-59 6/28/01

• FOMC Lowers Target for Federal Funds by 25 Basis Points

  The FOMC at its meeting decided to lower its target for the federal funds rate by 25 basis points to 3-3/4 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 3-1/4 percent. FRB Press Release 6/28/01

• OFAC List Updated with New SDNs

  The Office of Foreign Assets Control has updated its SDN list June 27, 2001, in light of a new Executive Order from President Bush blocking property of persons "who threaten international stabilization efforts in the Western Balkans." The names of 35 new Specially Designated Nationals (SDNs) have been added to the list. Get the details. 6/27/01

• Douglas W. Roeder Appointed Senior Deputy Comptroller for Large Banks

  Comptroller of the Currency John D. Hawke, Jr. announced that Douglas W. Roeder has been appointed Senior Deputy Comptroller for Large Banks. In this newly established position, Mr. Roeder will be responsible for examinations and supervision activities in the largest national banks and for overseeing operations in the OCC's London office. OCC:NR 2001-58 6/26/01

• FDIC Press Briefing on Wednesday, June 27, at 9:30 a.m.

  At a press briefing on Wednesday, June 27, at 9:30 a.m., FDIC staff analysts will provide details on first-quarter 2001 earnings for the commercial banking and thrift industries. 6/26/01

• FRB Issues Correction to Proposed Regulation W Rule

  This Proposed Rule seeks comment on whether the Board should exempt extensions of credit by a bank to any person that are secured by shares of a mutual fund for which the bank or an affiliate of the bank acts as investment adviser. 66FR33649 (text) 66FR33649 (pdf) 6/25/01

• FDIC Reports On Banking Industry Readiness

  U.S. banks generally are well positioned to deal with difficulties if the economy continues to slow, the
  FDIC reported. FDIC:PR-46-2001 6/25/01

• Regulators Mail Second Quarter Call Report Information

  Reports of Condition and Income (Call Report) for Second Quarter 2001 aree due by July 30, 2001. FDIC:FIL-55-2001 6/25/01

• NCUA amends Truth in Savings Act (TISA)

  NCUA is amending the Truth in Savings Act (TISA) to address electronic
  advertisements. These amendments conform to the Electronic Signatures
  in Global and National Commerce Act (E-Sign Act). This rule is effective
  June 21, 2001, however the mandatory compliance date is October 1, 2001
  to allow time for any necessary operational changes. NCUA: 66FR33159 6/21/01

• NCUA proposes amendments to various rules

  The NCUA Board is proposing amendments to various rules to make technical corrections and add and revise certain definitions. Comments must be received on or before August 20, 2001. NCUA: 66FR33211 6/21/01

• OTS increases costs of supervising 3-, 4-, and 5-rated institutions

  The Office of Thrift Supervision (OTS) is amending its assessments rule to more accurately reflect the increased costs of
  supervising 3-, 4-, and 5-rated institutions. As amended, OTS will compute the condition component of a savings association's assessment at 50 percent of the size component for 3-rated institutions, and 100 percent of the size component for 4- and 5-rated institutions. The new rates will be effective July 23, 2001. OTS: 66FR33157 6/21/01

• OTS Issued Two Enforcement Orders In April

  The OTS reported that it issued a cease and desist order and civil money penalty both dated April 17, to Dennis M. Ware, former employee of Banco Popular, Newark, New Jersey. OTS 01-40 6/21/01

• OTS and Thrifts Strong and Prepared, Director Seidman Tells Senate

  The nation's thrift industry and its primary regulator, the Office of Thrift Supervision, are “strong and prepared to meet the challenges ahead,” OTS Director Ellen Seidman testified at a Senate Banking Committee oversight hearing on the condition of the U.S. financial system. OTS 01-39 6/21/01

• Comptroller Cites Industry Trends that Give Cause for Concern

  Comptroller of the Currency John D. Hawke, Jr. told a Senate panel that while banks are far better prepared to deal with a slowing economy than they were at the onset of the last economic downturn in 1990, there are trends in the industry that give cause for concern. OCC: NR 2001-57, Speech 6/21/01

• OCC Announces New Enforcement Actions

  The OCC announced 9 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2001- 56 6/21/01

• Identity Theft Highlighted in SAR Activity Review

  There has been a dramatic increase in the number of incidents of identity theft reported by banks on suspicious activity reports (SARs). This finding is reported in the second issue of the SAR Activity Review – Trends, Tips and Issues, a collaborative report being released today which provides feedback to the financial, law enforcement and regulatory communities based on analysis of the SAR data. FinCEN News 6/19/01

• FDIC Takes Steps to Help Rebuild Areas Affected by Tropical Storm Allison

  The FDIC has announced a series of steps intended to facilitate the process of rebuilding in Houston and surrounding communities damaged by the storm. The FDIC has issued guidelines encouraging banks to work constructively with borrowers who are experiencing difficulties due to conditions beyond their control. FDIC:FIL-54-2001 6/19/01

• OCC Reports Record Derivatives Trading Revenue for Banks

  U.S. commercial banks earned a record $4 billion from cash instruments and derivatives activities in the first quarter of 2001, an increase of $1.2 billion over the fourth quarter of 2000. The notional amount of derivatives in insured commercial bank portfolios increased by $3.4 trillion in the first quarter, to $43.9 trillion. OCC:NR 2001-54 6/19/01

• OCC Releases CRA Evaluations for 18 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of May 15 through June 14. The list contains only national banks and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance. OCC:NR 2001-55 6/19/01

• FDIC Circulates Fictitious Regulatory Agency Issuances

  The OCC has asked the FDIC to circulate information to FDIC-supervised institutions about fictitious documents that contain
  proposals suggesting that individuals can claim certain international payments reportedly being held by the OCC. FDIC:FIL-52-2001 6/14/01

• Donna Tanoue Announces her Resignation as Chairman of the FDIC

  Donna Tanoue announced that she has submitted her resignation as Chairman of the FDIC, effective July 11, 2001.FDIC:PR-45-2001, OTS 01-38 6/13/01

• OCC Encourages National Banks to Work with Customers Affected by Floods in Houston Area

  The OCC has outlined measures to assist national banks and their customers affected by the floods in the Houston area.
  The OCC recognizes that the effects of natural disasters on individuals and businesses are often temporary, and that prudent efforts to adjust or alter terms on existing loans in areas affected by the disasters and related problems should not be subject to bank examiner criticism. OCC:NR 2001- 53 6/12/01

• FRB Announces New Appointments

  Appointments of Donald Kohn as Advisor to the Board for Monetary Policy in the Office of Board Members, Vincent Reinhart as Director of the Division of Monetary Affairs, and Brian Madigan as Deputy Director of the Division of Monetary Affairs, all
  effective July 2, 2001. FRB Press Release 6/12/01

• NACHA Approves E-Sign For ACH Debits

  The Electronic Payments Association has approved an E-Sign provision for the NACHA Operating Rules that govern the Automated Clearing House Network. Under the new rule, any electronic signature that complies with the Electronic Signatures in Global and National Commerce Act will be deemed to comply with NACHA's requirements for "similarly authenticating" a consumer ACH debit authorization. NACHA News Release 6/12/01

• OTS Requests Comment on Study of Banking Regulations Regarding the Online Delivery of Financial Services

  Pursuant to section 729 of the Gramm-Leach-Bliley Act (GLBA), OTS and the other federal banking agencies are studying their
  regulations on the delivery of financial services. The purpose of the study is to report findings and conclusions to Congress, together with recommendations for appropriate legislative or regulatory action to adapt existing requirements to online banking and lending. 64FR31186 (text), 64FR31186 (pdf) 6/11/01

• OCC Issues Final Rule to Amend the Percentage of Capital and Surplus a Bank may Loan

  This final rule establishes a three-year pilot program that creates new special lending limits for 1-4 family residential real estate loans and loans to small businesses. Eligible national banks with main offices located in states that have a lending limit available for residential real estate, small business or unsecured loans that is higher than the current Federal limit may apply to take part in the pilot program. OCC:NR 2001-52 Final Rule 6/11/01

• OTS Reports Highest Quarterly Earnings Since March 2000; 1-4 Family Mortgage Originations Near Record Level

  Earnings for the nation’s thrift industry jumped 12 percent in the first quarter of 2001 to $2.16 billion, the OTS reported. In its First Quarter 2001 Thrift Industry Data Report, OTS said that earnings were the highest since the first quarter of 2000 when they stood at $2.23 billion. OTS 01-37 6/8/01

• FDIC Reports Commercial Banks Report Record Quarterly Earnings

  Commercial banking industry profits rebounded in the first quarter of 2001 to a record $19.9 billion, up from $17.7 billion in the fourth quarter of 2000, the Federal Deposit Insurance Corporation announced. FDIC:PR-44-2001 6/8/01

• FDIC Spotlights OFAC Change

  FDIC has issued its FIL-51-2001 to notify nonmember banks of the May 16, 2001 changes to the OFAC list. FDIC:FIL-51-2001 6/7/01

• FinCEN Issues Bulletin on Suspicious Activity Related to Phone Card Businesses

  A review of SARs filed with the Treasury Department's Financial Crimes Enforcement Network identified over 160 reports indicating suspicious financial activity related to businesses involved in phone card sales. SAR Bulletin 6/7/01

• OTS Announces 48 CRA Exams Scheduled for 3rd Quarter 2001

  The OTS announced that 48 savings associations are scheduled for Community Reinvestment Act examinations during the third quarter of 2001. OTS 01-36 6/6/01

• OCC Issues Third Quarter 2001 CRA Examination Schedule

  The OCC today released its schedule of Community Reinvestment Act examinations to be conducted in the third quarter of 2001. OCC:NR 2001- 51 6/6/01

• FDIC Issues June List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in March 2001. FDIC:PR-43-2001 6/6/01

• Disclosing Account Numbers

  Regulators issue a Privacy rule: Interagency letter, concerning sharing of account numbers for use in marketing. 6/5/01

• OFAC Changes

  Weeks with no activity, then four changes to the OFAC list in under three weeks. We show you where to find the complete list of changes in Top Stories, including the changes on May 16, 23, 31 and June 1. You can always get the information for the last change at http://www.treas.gov/ofac/bulletin.txt. To get a list of updates for the entire click here: http://www.treas.gov/ofac/t11edit.html 6/5/01

• FDIC Publishes Bank Technology Bulletin

  The FDIC Bank Technology Bulletin introduces three short documents containing practical ideas for banks to consider when they engage in technology outsourcing. FDIC:FIL-50-2001 6/5/01

• Governor Edward W. Kelley, Jr., announces intention to resign from the Board of Governors

  The FRB released a statement from Governor Edward W. Kelley, Jr., announcing his plans to resign from the Board after at least one of the current vacancies is filled. Kelley said he will submit a formal letter of resignation to the President when an additional Governor has been nominated and confirmed, and is at work at the Board. FRB Press Release 6/5/01

• GE Bank Subsidiary Granted Federal Thrift Charter

  GE Capital Consumer Card Co., Mason, Ohio, received approval from the OTS May 31 to switch from a state bank charter to a federal savings bank charter. Upon adopting the new charter, the savings bank will change its name to GE Financial Corp. OTS 01-35 6/4/01

• OCC Publishes Amended Year 2001 Fee Schedule

  This Bulletin supersedes material contained in Bulletin OCC 2000-30 concerning semiannual assessments for independent credit card banks and the assessment surcharge for problem banks. Fees OCC:2001-27
  6/4/01

• Former FDIC Employee Sentenced in Identity Fraud Scheme

  FDIC Inspector General Gaston L. Gianni, Jr., announced that former FDIC employee Theresa A. Hill of Seat Pleasant, MD, was sentenced on May 29, 2001, to five years of probation, including six months of home confinement, in connection with an identity fraud scheme. FDIC:PR-41-2001 6/4/01

• Former Illinois Bank President Indicted

  FDIC Inspector General Gaston L. Gianni, Jr., announced that Clark K. Bush, former president of the Murphy-Wall State Bank in Pinckneyville, Illinois, has been indicted on eight criminal charges relating to alleged misconduct while serving as the bank's president. FDIC:PR-42-2001 6/4/01

• FDIC Issues Third Quarter CRA Examination Schedule

  The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the third quarter of 2001. FDIC:PR-39-2001 6/4/01

• The Federal Reserve Board has just issued guidance for examiners to follow in examining banks for compliance with the guidelines for safeguarding customer information security.

  The new guidance, which includes an Examination Questionnaire, should give bankers insight into what the examiners will focus on. FRB:SR 01-15 6/1/01

• The OFAC list was updated today to include the names of twelve new Specially Designated Nationals and Blocked Persons. OFAC 6/1/01

• Risk-Based Examination Program May Require Call Reports For All Credit Unions

  NCUA Acting Chairman Dennis Dollar told a group of Pennsylvania and New Jersey credit union leaders today that a proposed flexible examination schedule which seeks to extend the exam cycle from 12 to 18 months for certain credit unions with strong CAMEL ratings and make NCUA examinations more risk-focused will carry “great benefits to both credit unions and the NCUA while maintaining the highest standards of safety and soundness. NCUA Press Release 6/1/01

• OCC Issues Final Rule to Assessment Rule

  The OCC is changing the way they assess "independent credit card banks." They are also raising the surcharge for all institutions with composite ratings of 3, 4, or 5 under the CAMEL Rating. 66FR29889 (text) 66FR29889 (pdf) 6/1/01

• FRB Requests Comment on Proposed Changes to Policy on Payments System Risk

  The FRB is requesting comment on a proposed interim policy statement and a package of short- and long-term proposals pertaining to its Payments System Risk (PSR) policy. In addition, the Board is rescinding the interaffiliate transfer policy. FRB Press Release 5/31/01

• OCC Bulletin Focuses on Privacy Exam Procedures

  OCC has issued its OCC Bulletin 2001-26 to advise national banks of the privacy exam procedures recently adopted by the federal banking agencies. OCC 2001-26 5/31/01

• FDIC Issues Alert on Missing/Stolen Official Checks

  The FDIC has been informed by the IndyMac Bank, FSB, Pasadena, California, that 100 of the bank's official checks are missing and presumed stolen from a shipment from the check printer. The missing official checks are numbered 256064500 through and including 256064599. FDIC: FIL-49-2001 5/31/01

• FDIC Issues Alert on Missing Cashier's Checks

  The FDIC has been informed by the Banco Tejano, Branch of Texline State Bank, Houston, Texas, that 100 of the bank's cashier's checks are missing. The missing checks are numbered 1801 through and including 1900. FDIC:FIL-48-2001 5/31/01

• FDIC Makes Public March Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in April. No administrative hearings are scheduled for June. FDIC:PR-39-2001 5/31/01

• OFAC Updates Listing of Specially Designated Narcotics Traffickers

  As earlier reported, a new Presidential order affecting the OFAC list was released on May 23, 2001, but it does not add new SDNs to the list or new countries. It is instead directed at prohibiting the direct or indirect importation into the United States of all rough diamonds from Liberia. 66FR29229 (text) 66FR29229 (pdf) 5/30/01

• Federal Reserve Board announced that it is seeking nominations for appointments to its Consumer Advisory Council

  The Council advises the FRB on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks advice. The group meets in Washington, D.C., three times a year. FRB Press Release 5/30/01

• Consumer Advisory Council Announces Meeting Date

  The FRB announced that the Consumer Advisory Council will hold its next meeting on Thursday, June 28. FRB Press Release 5/30/01

• FDIC Issues Alerts on Entities That May Be Conducting Banking Operations in the United States Without Authorization
  

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published a "Monthly Warning Advisory", which contains the name of an entity recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-47-2001 5/30/01

• FRB Issues Final Rule to Decrease the Basic Discount Rate

  The FRB amended its Regulation A on Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. The FRB acted on requests submitted by the Boards of Directors of the
  twelve Federal Reserve Banks. 66FR29009 (text) 66FR29009 (pdf) 5/29/01

• Don't Sweat 5/23 OFAC Change

  A new Presidential order affecting the OFAC list was released on May 23, 2001, but it does not add new SDNs to the list or new countries. It is instead directed at prohibiting the direct or indirect importation into the United States of all rough diamonds from Liberia.OFAC Change 5/24/01

• OTS Announces 12 April CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act performance evaluation ratings that became available in April 2001. OTS 01-34 5/23/01

• Comptroller Hawke Tells Bankers that Regulators Must Respond In Measured and Predictable Way to Credit Problems

  Comptroller of the Currency John D. Hawke, Jr. said that the OCC learned from the experience of the late 1980s and early 1990s how important it is to maintain a supervisory approach that is both carefully measured and predictable. OCC:NR 2001-50 , Speech 5/22/01

• Julie L. Williams Speaks Before the Consumer Bankers Association

  Read her speech on CRA. OCC:NR 2001-49 5/22/01

• Study of regulations; request for comment

  Pursuant to section 729 of the Gramm-Leach-Bliley Act, the FRB is conducting a study and preparing a report about its banking regulations with respect to the online delivery of financial services. 66FR27912 (text) 66FR27912 (pdf) 5/21/01

• FDIC Publishes Semiannual Agenda of Regulations

  The FDIC has published its semiannual agenda of regulations in the Federal Register to inform the public of the Corporation's regulatory actions and encourage participation in the rulemaking process. FDIC:PR-38-2001 5/18/01

• OCC Releases CRA Evaluations for National Banks

  The OCC released a list of Community Reinvestment Act performance evaluations that became public during the period of April 15 through May 14. OCC:NR 2001- 48 5/18/01

• OCC Announces Enforcement Actions and Terminations

  The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 2 terminations of existing enforcement actions. OCC:NR 2001- 47 5/18/01

• FRB Requests Comment on how Regulations May Be Adapted to Online Banking and Lending

  The FRB is currently reviewing pertinent regulations to assess their suitability for transactions that
  are conducted through the Internet. FRB Press Release 5/18/01

• Privacy Exam Procedures

  The new exam procedures for consumer financial privacy have been adopted by the federal bank regulatory agencies through the FFIEC. As anticipated, the exam procedures are tailored to institutions' information-sharing practices. The procedures describe how institutions are to be examined for compliance with the privacy regulation. They also include an examination checklist for use in verifying compliance. (Scroll down to page 11 of the pdf document to reach the Exam Objectives.) 5/17/01

• OFAC Updates Listing of Specially Designated Narcotics Traffickers

  On May 16, 2001, the Office of Foreign Assets Control issued an update to its SDN list and updated its brochure on Terrorism to incorporate new entries. The new entries were added to the list of Specially Designated Nationals after the Secretary of State published the designation of the REAL IRA.OFAC 5/17/01

• Fed Lowers Interest Rate

  The FOMC at its meeting decided to lower its target for the federal funds rate by 50 basis points to 4 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 3-1/2 percent. FRB Press Release 5/16/01

• FDIC Issues Alert on Missing/Stolen Cashier's Checks

  The FDIC has been informed by the Bank of Prescott, Prescott, Arkansas, that packages containing 700 of the bank's cashier's checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-45-2001 5/16/01

• OFAC Updates List of Specially Designated Nationals and Blocked Persons

  On April 24, 2001, the Department of the Treasury's OFAC amended its listing of specially designated nationals and blocked persons to include the names of additional Specially Designated Narcotics Traffickers. FDIC:FIL-44-2001 5/16/01

• FDIC Issues Alert Fictitious Invoices

  The FDIC has learned that a number of financial institutions nationwide are receiving fictitious invoices from International Distributors LTD, P.O. Box 3841-1000, San Jose, Costa Rica, for 12 dozen "Ribbon Black NCR encoding MICR-80." FDIC:FIL-43-2001 5/16/01

• FDIC Issues Alert on Counterfeit Checks

  The FBI Baltimore, Maryland, office has asked the FDIC to alert all FDIC-supervised banks about the circulation of counterfeit checks drawn on the National Cancer Institute's account at the National Institutes of Health Federal Credit Union in Bethesda, Maryland. In December 2000 and January 2001, at least seven counterfeit checks were fraudulently negotiated. FDIC:FIL-42-2001 5/16/01

• FDIC Issues Alert on Stolen Western Union Money Orders

  The FDIC has learned that a substantial number of Western Union Money Orders were stolen during a robbery. Many of the stolen items have been deposited to bank accounts in several states. FDIC:FIL-41-2001 5/16/01

• FRB Announces Availability of Identity Theft: Protect Yourself Video

  The 15-minute video explains how easily someone can obtain your personal financial information and unlawfully use that information to obtain credit or other financial information under your name. Included in the video are interviews with identity theft victims, law enforcement officers and industry representatives. FRB Press Release 5/15/01

• OCC Updates Large Bank Supervision Guidance

  The OCC issued a revised version of the Large Bank Supervision booklet, updating the guidance and procedures used in
  supervising large and complex mid-sized national banks. OCC:NR 2001- 46 5/15/01

• FRB Issues Guidance on Securities Activities of State Member Banks

  This guidance addresses issues and questions that have been raised by examiners and other
  supervisory personnel regarding this change to the permissible securities activities of state member banks. FRB:SR 01-13
  5/15/01

• Electronic Delivery of Consumer Disclosures

  As earlier report in the Federal Register, the FRB published interim final rules establishing uniform standards for the electronic delivery of federally mandated disclosures under five consumer protection regulations. Reg B, Reg E, Reg M, Reg Z, Reg DD
  5/14/01

• Agencies Remind Bankers of Risks Associated with Reliance on Brokered and Rate-Sensitive Deposits

  The federal bank and thrift regulatory agencies issued an advisory on the risks of brokered and other rate-sensitive deposits. The agencies warn that excessive reliance on these types of funding products without proper risk management safeguards has the potential to weaken an institution's financial condition. OTS 01-33, FDIC:PR-37-2001 OCC:NR 2001-44, FRB Press Release 5/14/01

• The FRB is proposing a new rule to implement comprehensively sections 23A and 23B of the Federal Reserve Act.

  The proposed rule would combine statutory restrictions on transactions between a bank and its affiliates with numerous existing and proposed Board interpretations and exemptions in an effort to simplify compliance with sections 23A and 23B. 66FR24185 (text) 66FR24185 (pdf) 66FR33649 (correction)5/11/01

• FRB Issues Final Rule on Applicability of Section 23A of the Federal Reserve Act to the
  Purchase of Securities From Certain Affiliates

  The FRB is adopting an interpretation that would expand the types of asset purchases that are eligible for the exemption in section 23A(d)(6), which exempts the purchase from an affiliate of an asset that has a readily identifiable and publicly available market quotation. 66FR24219 (text) 66FR24219 (pdf) 5/11/01

• FRB Issues Final Rule on Loans and Extensions of Credit Made by a Member Bank to a Third Party

  The FRB is adopting an interpretation and exemptions from section 23A for certain loans made by an insured depository institution to customers who use the loan proceeds to purchase a security or other asset through an affiliate of the depository institution acting exclusively as a broker or riskless principal in the transaction. 66FR24226 (text) 66FR24226 (pdf) 5/11/01

• FRB Adopts Interim Rule to Address the Application of Sections 23A and 23B

  The rules require institutions to adopt policies and procedures reasonably designed to monitor, manage, and control credit exposures arising out of the transactions and clarify that the transactions are subject to section 23B. 66FR24230 (text) 66FR24230 (pdf) 5/11/01

• OCC Publishes the FFIEC Availability of "A Guide to CRA Data Collection and Reporting" available on the Internet

  The FFIEC agencies developed the guide as a resource for financial institutions required to report Community Reinvestment Act (CRA) data. CRA data reports are due annually on March 1. OCC 2001-25 5/11/01

• FDIC Issues a Guide to Federal Microenterprise Programs

  The publication, Crossing the Bridge to Self-Employment: A Federal Microenterprise Resource Guide, describes various microenterprise programs available through the federal government, and how financial institutions, practitioners and others can access these resources. FDIC:FIL-38-2001 5/10/01

• FDIC Issues Guidance On Identity Theft And Pretext Calling

  The FDIC issued guidance on measures to prevent identity theft and pretext calling. The guidance reminds financial institutions how to report such activities to regulators using Suspicious Activity Reports (SARs), suggests educating consumers on identity theft and pretext calling, and summarizes relevant federal laws.
  FDIC:PR-36-2001 and FDIC:FIL-39-2001 5/10/01

• FDIC Report Risky Underwriting Practices Rise at Banks but General Underwriting Risks Show a Slight Decline

  FDIC examiners have reported an increase in the occurrence of risky underwriting practices by banks in both construction and consumer lending but found that the percentage of banks in the high-risk categories for general underwriting practices declined slightly, according to the agency's latest Report on Underwriting Practices. FDIC:PR-35-2001 5/10/01

• FDIC Reports First Quarter 2001 Financial Results for Bank and Thrift Insurance Funds

  The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $451 million for the first quarter, compared to $325 million for the same period last year. FDIC:PR-34-2001 5/9/01

• OTS is proposing to amend its regulation on conversions from stock form depository institutions
  to federal stock savings associations

  This proposed rule would clarify that the resulting federal stock savings association in such transactions succeeds to all the rights, property, and obligations of the converting institution. This amendment merely codifies OTS's interpretation of its existing regulation. 66FR23198 (txt) 66FR23198 (pdf) 5/8/01

• OTS is amending its regulation on conversions from stock from depository institutions to federal stock savings associations

  This direct final rule clarifies that the resulting federal stock savings association in such transactions succeeds to all the rights, property, and obligations of the converting institution. This amendment merely codifies OTS's interpretation of its existing regulation. 66FR23153 (txt) 66FR23153 (pdf) 5/8/01

• OCC Issues Final Rule to amend its assessment regulation

  The OCC is amending its assessment regulation to clarify that the OCC has authority to charge a national bank when the OCC conducts a special examination of a third party that provides services to the bank. 66FR23151 (txt) 66FR23151 (pdf) 5/8/01

• FDIC Issues May List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in February 2001. FDIC:PR-33-2001 5/8/01

• OTS Advises Thrifts on Measures to Reduce Incidents of Identity Theft and Pretext Calling

  The OTS advised thrifts to take steps to prevent the unauthorized disclosure of customer financial information. The agency also called on the financial institutions it supervises to detect and deter fraudulent access to such information. OTS 01-32 5/8/01

• FDIC Issues Alert on Fictitious Cashier's Checks

  The FDIC has learned that fictitious cashier's checks drawn on "Ferndale Trust & Loan" are in circulation. The address shown on the checks is 22750 Woodward Avenue, Ferndale, MI 48226. The Michigan Division of Financial Institutions has advised that Ferndale Trust & Loan does not exist. FDIC:FIL-37-2001 5/7/01

• OCC Issues Proposed Rule on Debt Cancellation Contracts and Debt Suspension Agreements

  As earlier reported in the Federal Register, the OCC is requesting comment on a proposed rule that would establish the standards that apply to a national bank's provision of DCCs and DSAs, enhance consumer protections for customers who buy DCCs or DSAs from banks, and ensure that national banks providing DCCs or DSAs do so on a safe and sound basis. OCC 2001-24 5/7/01

• FDIC Insurance Big Factor in Investment Decisions, Gallup Survey Shows

  More than half of the people who make household financial decisions took federal deposit insurance into account when considering recent investments, a survey conducted by The Gallup Organization reveals. FDIC:PR-31-2001 5/4/01

• OTS Issued One Enforcement Order In March

  The OTS reported that it issued a prompt corrective action enforcement order March 23 to Life Bank, San Bernadino, Calif. OTS 01-31 5/4/01

• Basel Committee Report Outlines Risk Management Principles for Electronic Banking

  The Electronic Banking Group of the Basel Committee on Banking Supervision, set forth fourteen risk management principles on electronic banking for financial institutions in a report. OCC:NR 2001- 42 5/4/01

• FRB Requests Comment on a Proposed New Reg W to Implement Sections 23A and 23B

  Regulation W would unify in one document various Board and staff interpretations issued over the years as well as several new interpretations of the statute. It also would provide several additional exemptions from the statute. The purpose of sections 23A and 23B and Regulation W is to limit a bank's risk of loss in transactions with affiliates and limit a bank's ability to transfer to its affiliates the benefits arising from its access to the federal safety net. FRB Press Release FRB Board Press Release 5/4/01

• Comptroller Closes Malta National Bank

  The FDIC reports that the OCC closed The Malta National Bank, Malta, Ohio, and appointed the FDIC as receiver. The FDIC, as receiver, entered into an agreement with North Valley Bank, Zanesville, Ohio, to assume all the deposits of the failed bank.
  OCC: NR 2001-43 FDIC: PR-32-2001 5/4/01

• Missing Cashier's Checks

  The FDIC has been informed by the Hudson City Savings Bank, Paramus, New Jersey, that 200 of the bank's cashier's checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-36-2001 5/3/01

• OCC and FRB Issue Guidance on How to Protect Against ID Theft

  The OCC has issued an advisory letter and the Federal Reserve Board has issued a Supervisory Letter giving institutions under their jurisdiction guidance on how to protect customer information against identity theft and pretext calling. 5/1/01

The NMLS has announced the closing of Renewal Period for 2014 and the beginning of the Reactivation Period. Information on reactivation is posted on the NMLS's Renew/Reactivate page.

The FDIC has released four new technical assistance videos in its third installment of videos to provide useful information to bank directors, officers, and employees on regulatory issues and proposed regulatory changes. The videos cover the following topics:

• Municipal securities—supervisory expectations, investment policies, and basic and expanded pre-purchase analysis and on-going monitoring of municipal securities
• ALLL (allowance for loan and lease losses)—overview of applicable interagency policy statements, discusses pertinent accounting standards, reviews measuring impairment and estimating credit losses, and illustrates an effective loss migration analysis
• TDR (troubled debt restructuring)—how to identify a TDR, the related accounting and regulatory treatment, and the multiple note concept
• Managing fair lending risk—summarizes the fair lending laws, discusses the concepts of disparate treatment and disparate impact, and reviews fair lending risk indicators, mitigation strategies, and the components of an effective compliance management system

The FDIC has released four new technical assistance videos in its third installment of videos to provide useful information to bank directors, officers, and employees on regulatory issues and proposed regulatory changes. The videos cover the following topics:

• Municipal securities—supervisory expectations, investment policies, and basic and expanded pre-purchase analysis and on-going monitoring of municipal securities
• ALLL (allowance for loan and lease losses)—overview of applicable interagency policy statements, discusses pertinent accounting standards, reviews measuring impairment and estimating credit losses, and illustrates an effective loss migration analysis
• TDR (troubled debt restructuring)—how to identify a TDR, the related accounting and regulatory treatment, and the multiple note concept
• Managing fair lending risk—summarizes the fair lending laws, discusses the concepts of disparate treatment and disparate impact, and reviews fair lending risk indicators, mitigation strategies, and the components of an effective compliance management system

• OTS Issues Proposed Rule to Amend Assessment Rule

  The OTS is proposing to amend its assessments rule to more accurately reflect the increased costs of supervising 3-, 4-, and 5-rated institutions. 66FR21288 (4/30/01)

• OTS Reports Interest Rate Risk Reduction For Thrift Industry in 4th Quarter

  The OTS reported that only 3.5 percent of thrifts were at high risk from a hypothetical 200
  basis point fluctuation in interest rates at the end of the fourth quarter. That’s a 42 percent reduction from six percent at the end of the third quarter and eight percent last June. OTS 01-30 (4/30/01)

• OTS Approves Charter Switch From Credit Union to Thrift

  The OTS announced that it approved the charter application of AGE Federal Credit Union in Albany, Ga., to become HeritageBank of the South, a federal thrift. OTS 01-29 (4/30/01)

• NCUA Issues Proposed rule that relaxes certain provisions in NCUA's regulations

  This proposed rule relaxes certain provisions in NCUA's regulations for advertising and posting notice of nondiscrimination in
  real estate-related lending. Currently, the regulations provide that a federal credit union (FCU) must include notice of nondiscrimination through use of a particular logotype and specified language. The proposed rule will provide an FCU with more flexibility in how it gives notice when advertising. 66FR20945 (text) 66FR20945 (pdf) (4/30/01)

• NCUA Issues Final Rule to Revise its Regulations pertaining to the Community Development Revolving Loan Program For Credit Unions

  The NCUA is revising its regulations pertaining to the Community Development Revolving Loan Program For Credit Unions (CDRLP)
  to make more flexible the manner in which NCUA may deliver technical assistance to participating credit unions. This revision reflects the broad authority granted to NCUA by the Federal Credit Union Act (Act) in this context. 66FR20901 (text) 66FR20901 (pdf) (4/30/01)

• FDIC Makes Public March Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in March. No administrative hearings are scheduled for May. FDIC:PR-30-2001 (4/27/01)

• OFAC Updates Listing of Specially Designated Narcotics Traffickers

  OFAC (4/25/01)

• OCC Advises Banks to Ensure Information Systems Security is Maintained

  The OCC issued an alert outlining steps that national banks should take to protect and maintain network security. OCC:NR 2001-40 (4/25/01)

• OCC, Julie L. Williams Speaks at ABA Conference on Account Aggregation Services

  Technology innovations, such as aggregation, make possible today the creation, transfer and manipulation of information in ways we didn't even dream of 10 years ago. Because the financial industry is fundamentally information-based and driven, advances in technology have had and will continue to have a profound affect on financial services and particularly on the evolution of the banking business. Aggregation services are a perfect illustration of both the promise and the new challenges that technology present for the banking industry. OCC:NR 2001-39 (4/24/01)

• Regflex Approach Begins Long-Term Process for NCUA Rule and Regulation Evaluation

  The innovative risk-based approach for the RegFlex proposed rule is the first major step in an expected long-term strategic process for NCUA to evaluate current and future rules and regulations, NCUA Acting Chairman Dennis Dollar said. NCUA Press Release (4/23/01)

• NCUA donates computers nationwide and joins the Adopt-A-School Program in Alexandria

  The NCUA donated over 1,000 computers to nonprofit organizations in recent years, and the Alexandria office has officially
  adopted a local elementary school where agency volunteers tutor students. NCUA Press Release (4/23/01)

• FDIC Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  As earlier report, in the Federal Register, this proposal amends the regulatory prohibition against branches being used as deposit production offices to include any bank or branch of a bank controlled by an out-of-State bank holding company, including a bank consisting only of a main office. FDIC:FIL-34-2001 (4/23/01)

• FDIC Publishes the FRB's Final Rule Revising Reg E Commentary

  The FRB has adopted a final rule revising the Official Staff Commentary to Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The final rule took effect on March 15, 2001; however, the mandatory compliance date is January 1, 2002. FDIC:FIL-33-2001 (4/23/01)

• FDIC Issues Alert on Possible Attempted Fraud By Convicted Fugitive

  The U.S. Marshals Service has asked the FDIC to alert all U.S. banks about the current activities of fugitive John Ruffo, who was convicted in 1998 for his role in defrauding several banks of over $350 million and may now be attempting another fraud scheme. FIL-32-2001 (4/20/01)

• FRB Issues Interagency Guidance on Leveraged Financing

  The FRB, along with the other federal banking agencies, issued guidance concerning sound risk management practices for institutions engaged in leveraged financing. FRB:SR 01-9 (4/20/01)

• FDIC Proposes Rule on Applicants for Deposit Insurance

  The FDIC is proposing to codify into a regulation a requirement previously interpreted in a General Counsel Opinion that an applicant for deposit insurance must be "engaged in the business of
  receiving deposits other than trust funds". The requirement was first
  interpreted in General Counsel Opinion No. 12, which was published by
  the FDIC in March of 2000. 66FR20102 (text) 66FR20102 (pdf) (4/19/01)

• Donna A. Tanoue elected Chairman of the FFIEC

  Donna A. Tanoue, Chairman of the FDIC, was elected Chairman of the FFIEC for a two-year term beginning April 1. Chairman Tanoue succeeds Dr. Laurence H. Meyer, member of the Board of Governors of the Federal Reserve System. FFIEC Press Release (4/19/01)

• OCC Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  As earlier reported in the Federal Register, this proposal amends the regulatory prohibition against branches being used as deposit production offices to include any bank or branch of a bank controlled by an out-of-State bank holding company, including a bank consisting only of a main office. OCC 2001-22 (4/19/01)

• OCC Announces 4 New Enforcement Actions

  The OCC announced 4 new enforcement actions taken against national banks and individuals currently and
  formerly affiliated with national banks. OCC:NR 2001- 38 (4/19/01)

• FRB Cuts Interest Rate by 50 Basis Points

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 4-1/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 4 percent. FRB Press Release (4/19/01)

• OCC Issues Proposed Rule to Address Debt Cancellation Contracts and Debt Suspension Agreements

  The purposes of the customer protections set forth in the proposed rule are to facilitate customers' informed choice about whether to purchase DCCs and DSAs, based on an understanding of the costs, benefits, and limitations of the products and to discourage inappropriate or abusive sales practices. 66FR19901 (text) 66FR19901 (pdf) (4/18/01)

• OCC Publishes the FRB's Revisions to Reg E

  As earlier reported in the Federal Register, the FRB published a final rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The rule took effect on March 9, 2001. However, compliance with the amendments is not mandatory until October 1, 2001. OCC 2001-21 (4/18/01)

• FRB Issues Final Rule Regarding Access to Personal Information Under the Privacy Act

  In accordance with the Privacy Act, the FRB is amending its Rules Regarding Access to Personal Information under the Privacy Act regarding monitoring of individuals who may pose a possible threat to the safety of Board members. 66FR19717(text), 66FR19717 (pdf) Notice    Correction(4/17/01)

• FDIC Issues Alert on Stolen Credit Cards

  The FDIC has been informed by the USAA Federal Savings Bank, San Antonio, Texas, that a number of the bank's credit cards have been stolen from the mail in the upper New England area. FDIC:FIL-30-2001 (4/17/01)

• OCC Releases CRA Evaluations for 10 National Banks

  The OCC released a list of Community Reinvestment Act performance evaluations that became public during the period of March 15 through April 14. OCC:NR 2001-37 (4/17/01)

• FRB Issues Final Rule to Adopt Technical Amendments to the Financial Holding Company Provision of Reg Y

  The restored provisions were adopted in December 2000, and inadvertently deleted from the Code of Federal Regulations. 66FR19081(text), 66FR19081 (pdf) (4/16/01)

• OCC Publishes Update on Status of Proposed FCRA Rule

  OCC has published its OCC-2001-20 to describe the status of the Notice of Proposed Rulemaking previously published by the banking agencies on October 20, 2000 (FCRA rule), to implement the
  provisions of the Fair Credit Reporting Act (FCRA). OCC 2001-20 (4/16/01)

• OCC Issues Proposed Rule to Amend the Formula it Uses to Assess Independent Credit Card Banks

  As earlier reported in the Federal Register, the rule as proposed would amend the formula the OCC uses to assess
  independent credit card banks. OCC 2001-19 (4/13/01)

• OTS Announces 13 March CRA Ratings

  The OTS announced savings associations' CRA performance evaluation ratings that became available in March 2001.
  OTS 01-28 (4/12/01)

• FRB Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  As earlier reported in the Federal Register, the FRB is requesting public comment on a proposal that would amend Regulation H to expand the prohibition against deposit production offices to include any branch of a bank controlled by an out-of-state bank holding company. FRB Press Release (4/12/01)

• FDIC Reports Year-End 2000 Financial Results For Bank And Thrift Insurance Funds

  The FDIC announced that the Bank Insurance Fund reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $1.6 billion for the 12 months ending December 31, 2000, compared to a
  loss of $198 million for the same period last year. Consequently, the fund balance increased to $31.0 billion at December 31, 2000. FDIC-PR-29-2001 (4/11/01)

• Agencies Issue Risk Management Practices for Leveraged Financing

  The federal bank regulatory agencies today issued guidance concerning sound risk management practices for institutions engaged in leveraged financing. FRB Press Release, OCC: NR 2001-36, OTS 01-27 FDIC-PR-28-2001 (4/10/01)

• NCUA Acting Chairman Says Risk-Based Regulatory Approach Can Keep Agency Budget From Unnecessary Growth

  NCUA Acting Chairman Dennis Dollar told Minnesota credit union leaders that the RegFlex proposed rule could facilitate the NCUA’s
  development of a more efficient resource allocation plan, while protecting against unnecessary budget increases in future years.
  NCUA Press Release (4/10/01)

• OCC, FRB and FDIC Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  This proposal amends the regulatory prohibition against branches being used as deposit production offices to include any bank or branch of a bank controlled by an out-of-State bank holding company, including a bank consisting only of a main office.
  66FR18411 (4/9/01)

• Comptroller Hawke Urges New Look at Funding Bank Supervision

  Comptroller of the Currency John D. Hawke, Jr. said that the U.S. must find a new method of funding bank supervision -- one that
  strengthens both state and federal supervisory agencies and ensures that they have the resources they need to do their jobs.
  OCC: NR 2001-35 (4/9/01)

• Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on the Exchange Bank, Santa Rosa, California, are in circulation. Circulation of the items seems to be widespread. FDIC:FIL-28-2001 (4/9/01)

• FRB Issues Final Rule Amending the Basic Discount Rate

  The FRB has amended its Regulation A on Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards of Directors of the
  twelve Federal Reserve Banks. 66FR18185 (4/6/01)

• NCUA Acting Chairman Dennis Dollar Seeks Options for Faith-Based Credit Unions to Provide Affordable Financial Services for Communities, Underserved Areas

  NCUA Acting Chairman Dennis Dollar announced that he is reviewing the options and opportunities to promote the enhancement of the charter and field of membership for the nation’s nearly 500 faith-based credit unions to serve their respective communities in providing affordable financial services especially in designated underserved areas. NCUA Press Release (4/6/01)

• Sale of Performing/Non-performing Loans

  The Dallas Field Operations Branch of the FDIC is offering to sell Loan Sale Packages located throughout the United States. (4/6/01)

• FRB Issues Guidance on Complex Wholesale Borrowings

  Over the past several years, commercial banks have become increasingly reliant on wholesale borrowings obtained
  from a number of financial intermediaries, including Federal Home Loan Banks, other commercial banks, and securities firms.
  These borrowings frequently have attractive features and pricing, and can, if properly assessed and prudently managed, enhance a
  bank's funding options and assist in controlling interest rate and liquidity risks. FRB Press Release (4/6/01)

• FDIC Issues Recommendations for Reform of Deposit Insurance

  FDIC Chairman Donna Tanoue released the agency's report on recommendations to reform the federal deposit insurance system, saying that the plan would enhance the safety and soundness of the banking industry and ensure that deposit insurance remains the anchor of public confidence in the banking system. FDIC: PR-27-2001 (4/6/01)

• FDIC Issues April List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in January 2001. FDIC:PR-26-2001 (4/6/01)

• FFIEC Announces Risk Management Planning Seminar for 2001

  Identifying and Managing Technology Risks, San Francisco, CA, October 11 - 12, 2001 FFIEC Press Release (4/5/01)

• OCC Issues Alert on Fraudulent Investment Programs

  The OCC urges all institutions to be wary of proposals to leverage investment portfolios through some type of secondary market activity. The programs are allegedly managed by or under the supervision of the Federal Reserve but this is not the case. The Federal Reserve does not support, issue or supervise any such programs. OCC:Alert 2001-3 (4/5/01)

• Comptroller Hawke Tells Congress that New Capital Proposal Would Permit Continued Investment in Small Business

  Comptroller of the Currency John D. Hawke, Jr. told a Congressional panel that a revised capital proposal for merchant
  banking investment activities would permit continued investment in small business while preserving bank safety and soundness.
  OCC:NR 2001-34, Statement, Testimony (4/5/01)

• FRB is Adopting an Interim Final Rule amending Reg DD to Establish Uniform Standards for Electronic Delivery of Disclosures

  The rule provides guidance on the timing and delivery of electronic disclosures to ensure that applicants have adequate opportunity to access and retain required information. 66FR17795 (4/4/01)

• FRB is Adopting an Interim Final Rule amending Reg B to Establish Uniform Standards for Electronic Delivery of Disclosures

  The rule provides guidance on the timing and delivery of electronic disclosures to ensure that applicants have adequate opportunity to access and retain required information. 66FR17779 (4/4/01)

• FRB is Adopting an Interim Final Rule amending Reg E to Establish Uniform Standards for Electronic Delivery of Disclosures

  The rule provides guidance on the timing and delivery of electronic disclosures to ensure consumers have adequate opportunity to access and retain information when shopping for electronic fund transfer services. 66FR17786 (4/4/01)

• OCC Issues Proposed Rule to Amend the Formula it Uses to Assess Independent Credit Card Banks

  A national bank is considered independent for purposes of this proposal if it engages primarily in credit card operations and is not affiliated with a full-service national bank. Under the revised assessment structure, all credit card banks would continue to be assessed based on balance sheet assets. Independent credit card banks would pay an additional assessment component based on the ``receivables attributable'' to credit card accounts owned by the bank. This additional assessment is intended to result in payment by these banks of a more appropriate share of the OCC's expenses than under the current book-asset assessment structure.
  66FR17821 (4/4/01)

• OTS Director Seidman Proposes Enhancing Thrift Charter, Questions Fairness Of Bank Supervision Charges

  OTS Director Ellen Seidman announced a series of legislative proposals designed to give thrifts the right to conduct some additional activities and take actions comparable to commercial banks. OTS 01-26 (4/4/01)

• Missing Cashier's Checks

  The FDIC has been informed by the Bank of Old Monroe, Old Monroe, Missouri, that a number of the bank's cashier's checks are missing and presumed stolen from a shipment from the check printer. FDIC: FIL-27-2001 (4/4/01)

• FDIC Issues Final Rule to Repeal Section 29A of the FDI Act

  As part of the Financial Regulatory Relief and Economic Efficiency Act of 2000, Congress repealed section 29A of the Federal
  Deposit Insurance Act (``FDI Act''). Section 29A imposed certain requirements on deposit brokers and authorized the FDIC to issue
  implementing regulations. 66FR17621 (4/3/01)

• PACA Director Bob Loftus to Retire

  The NCUA announted that Public & Congressional Affairs Director Robert E. Loftus plans to retire July 27, 2001. Mr. Loftus is the first director of NCUA’s Office of Public & Congressional Affairs, formed in 1985 when the offices of Public Affairs and Congressional Affairs were combined.
  NCUA Press Release (4/3/01)

• NCUA Chairman Meets with Australian Credit Union Leader; Discusses Regulations, Market Issues

  NCUA Chairman Dennis Dollar met with Phillip G. Elliott, chief executive officer of the National Credit Union Association,
  Inc., the second largest credit union trade association in the nation of Australia. Mr. Dollar and Mr. Elliott discussed credit union issues in both Australia and the United States, including the 1999 restructuring of Australia’s financial regulatory laws.
  NCUA Press Release (4/3/01)

• FDIC Mails First Quarter Call Report Information

  Reports of Condition and Income (Call Report) for First Quarter 2001 are due by April 30, 2001.
  FDIC:FIL-24-2001 (4/2/01)

• FDIC Makes Public February 2001 Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in February 2001. FDIC:PR-25-2001 (4/2/01)

• OTS Issued Six Enforcement Orders in February

  The OTS reported that it issued six enforcement orders to five individuals, entities, or institutions during February 2001.
  OTS 01-25 (4/2/01)

The Consumer Financial Protection Bureau has published in today's Federal Register a request for information on key consumer “pain points” associated with mortgage closing and how those pain points might be addressed by market innovations and technology. The request marks the beginning of the next phase of the Bureau's Know Before You Owe initiative, which will attempt to identify ways to improve the mortgage closing process for consumers. Comments are due by February 7, 2014.

The Federal Reserve Board has released seven Section 19 letters issued during December 2013. The recipients are prohibited from becoming or continuing as an institution-affiliated party with respect to any insured depository institutions, including, but not limited to, any bank, savings association or credit union, and their holding companies, as well as Edge corporations and Agreement corporations. Scroll down on the linked page for the links to the letters.

The Federal Reserve Board has released seven Section 19 letters issued during December 2013. The recipients are prohibited from becoming or continuing as an institution-affiliated party with respect to any insured depository institutions, including, but not limited to, any bank, savings association or credit union, and their holding companies, as well as Edge corporations and Agreement corporations. Scroll down on the linked page for the links to the letters.

• FRB Issues Interim Rule to Establish Uniform Standards for Electronic Delivery of Mandated Disclosures Under the Consumer Regs

  Under the rules, financial institutions, creditors, lessors, and others may deliver disclosures electronically if they obtain consumers' consent in accordance with the requirements of the Electronic Signatures in Global and National Commerce Act (the "E-Sign Act"), enacted in June 2000. Reg M Interim Rule, Reg Z Interim Rule, FRB Press Release (3/30/01)

• OCC Publishes the FFIEC Statement on Article 9 Revisions

  National banks and their legal counsel should consider carefully the changes in state law brought about by revised Article 9 in order to ensure the attachment and perfection of their existing and future security interests. OCC 2001-16 FFIEC Statement (3/29/01)

• Agencies Clarify Guidance on the Accounting and Reporting for Loans Held for Sale

  The federal financial institution regulatory agencies issued guidance to institutions and examiners about the appropriate accounting and reporting treatment for certain loans that are sold directly from the loan portfolio or transferred to a held-for-sale account. FRB Press Release, OCC 2001-15, OTS 01-24 FDIC: PR-24-2001 (3/28/01)

• Agencies Publish Proposed Regulation Implementing the Provisions of the Fair Credit Reporting Act

  As earlier reported by the agencies, they have published for comment proposed regulations implementing the provisions of the Fair Credit Reporting Act (FCRA) that permit institutions to communicate consumer information to their affiliates (affiliate information sharing) without incurring the obligations of consumer reporting agencies. 66FR16624 (3/27/01)

• FRB Issues Final Rule Amending Regulation E

  As earlier reported in the Federal Register, the FRB published a final rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The rule took effect on March 9, 2001. However, compliance with the amendments is not mandatory until October 1, 2001. FDIC:FIL-25-2001 (3/26/01)

• Regulators Issue Supervisory Guidance to Enhance Puplic Disclosures

  A private sector working group recommended several specific practices that would enhance disclosure by large banking organizations. These include quarterly disclosure of some market risk information that is now disclosed annually and enhanced quarterly disclosures about credit concentrations and credit quality of portfolios. FRB Press Release OCC 2001-14 - Guidance (3/26/01)

• FRB Announces Procedures for Filing of Documents Required by the CRA Sunshine Requirements

  The new CRA Sunshine provisions require nongovernmental entities or persons (NGEPs) and insured depository institutions or affiliates that are parties to certain written agreements that are in fulfillment of the Community Reinvestment Act (CRA) to (1) make the agreement available to the public and the relevant bank or thrift supervisory agency, and (2) file an annual report about the agreement with the relevant supervisory agency. FRB Press Release (3/23/01)

• FRB Revised its Brochure: When Your Home Is on the Line: What You Should Know about Home Equity Lines of Credit.

  Regulation Z, which implements the Truth in Lending Act, requires creditors to provide the brochure, or a suitable substitute, to consumers when an application form is provided for a home equity line of credit. FRB Press Release Brochure (3/23/01)

• FDIC Report Evaluates Prospects for Commercial Credit Quality

  Continuing increases in problem commercial loans are focusing a spotlight on declining conditions in business lending, according to the FDIC. On September 30, 2000, commercial banks reported noncurrent commercial loans of 1.52 percent of total commercial loans, the highest level in the past six years. FDIC:PR-23-2001 (3/22/01)

• FOMC Lowers Federal Funds by 50 Basis Points

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 5 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 4-1/2 percent. FRB Press Release (3/21/01)

• NCUA Issues Interim Final Rule on Membership Manual

  The NCUA Board is amending its chartering and field of membership manual to make two changes to ease the burden on applicants for community charters, expansions or conversions. First, applicants need not submit documentation to establish a community area that is the same as one the NCUA has previously determined to be a well-defined local community, neighborhood or rural district. Second, the Board is deleting the category of common characteristics and background of residents from the examples of acceptable documentation because it has proven to generate documentation of limited relevance. 66FR15619 (3/20/01)

• Agencies Extend Effective Date on Bank Insurance Rules

  As earlier reported by each agency, the effective date of consumer protection rules for the sale of insurance products by depository institutions on their premises has been changed. The new effective date will be October 1, 2001, rather than the original effective date of April 1, 2001. 66FR15345 (pdf) (3/19/01)

• OCC Releases CRA Evaluations for 15 National Banks

  The OCC released a list of Community Reinvestment Act performance evaluations that became public during the period of February 15 through March 14. OCC:NR 2001-32 (3/19/01)

• OTS Issued Three Enforcement Orders In January

  The OTS reported that it issued three enforcement orders during January 2001, one instituting a civil money penalty and two terminating previously issued cease and desist orders. OTS 01-22 (3/19/01)

• FRB Publishes Final Rule Revising Reg E Commentary

  The Rule provides guidance regarding electronic check conversion transactions, computer-initiated bill payments, authorization of recurring debits from a customers accounts and telephone-initiated transfers. 66FR15187 (3/16/01)

• Director Seidman Announces Staff Paper That Finds Real Estate Lending Less Risky
  Than Capital Rules Suggest

  OTS Director Ellen Seidman announced the preliminary findings of an OTS economist’s working paper that concludes that the 1988 Basel Capital Accord risk weights do not accurately track the historical credit experience of U.S. loan portfolios and suggests that residential mortgage and other real estate secured loans may be relatively overburdened by the current standards. OTS 01-21 (3/16/01)

• NCUA Issues Proposed Rule on Regulatory Flexibility Program

  The NCUA Board is proposing a new rule that would permit credit unions with advanced levels of net worth and consistently strong
  supervisory examination ratings to be exempt, in whole or in part, from certain NCUA regulations that are not specifically required by statute. The NCUA Board is also proposing an amendment to the appraisal regulation to increase the dollar threshold from $100,000 to $250,000 for when an appraisal is required. 66FR15055 (3/16/01)

• OTS Would Simplify Certain Capital Requirements And Revise Liquidity Standards

  The OTS proposed a rule change to reduce certain capital burdens and separately issued an interim final rule that would conform to recent changes in the law by eliminating a four percent liquidity requirement and replacing it with a general requirement that thrift institutions maintain sufficient liquidity. OTS 01-20 (3/15/01)

• Agencies Will Allow Privacy Notices Under Existing Fair Credit Reporting Act

  Federal banking agencies announced that any final Fair Credit Reporting Act rule will not require depository institutions to
  revise Gramm Leach Bliley Act privacy notices prepared in reliance on existing FCRA law and delivered to consumers before next January.FDIC-PR-22-2001, FRB Press Release, OCC: NR 2001-30, OTS 01-19, FDIC-PR-22-2001 (3/15/01)

• FIL Released on February's InfoSec Guidelines

  Nearly a month and a half after the guidelines were published in the Federal Register, FDIC has released an FIL alerting institutions to the guidelines. FIL-22-2001 (3/15/01)

• OCC Announces 5 New Enforcement Actions

  The OCC announced 5 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:NR 2001- 31 (3/15/01)

• Agencies Extend Effective Date on Bank Insurance Rules

  The federal banking regulatory agencies approved a joint rulemaking that extends the effective date of consumer protection rules for the sale of insurance products by depository institutions on their premises, or on their behalf. The new effective date will be October 1, 2001, rather than the original effective date of April 1, 2001. FDIC-PR-21-2001, FRB Press Release, OCC: NR 2001-29, OTS 01-18 (3/14/01)

• FRB Publishes Revisions to Reg E Commentary

  The revisions provide guidance on electronic check conversion transactions when a consumer authorizes the use of a check to capture information for initiating an electronic debit from the consumer’s account. FRB Press Release (3/14/01)

• President's Tax Cut Plan Count Benefit Credit Union's Liquidity

  NCUA Acting Chairman Dennis Dollar told state and federal regulators today that President Bush’s proposed tax cut plan provides credit unions with “an excellent opportunity to emphasize the value of savings and paying down debt while improving their liquidity position at the same time. NCUA Press Release (3/13/01)

• Uniform Bank Performance Report is Available

  The December 31, 2000 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public. For the most part, the formats for the commercial banks and the FDIC-ISB are identical; however, the FDIC-ISB has its own unique UBPR peer groupings. FFIEC Press Release (3/12/01)

• Latest FDIC Survey Finds Real Estate Slowing

  The latest results of the FDIC's Survey of Real Estate Trends indicated that conditions generally remained favorable in the nation's real estate markets during the second half of 2000 but there was some deterioration, especially involving single-family homes and local retail properties. FDIC:PR-20-2001 (3/12/01)

• OTS Announces 14 February CRA Ratings

  The OTS announced savings associations' CRA performance evaluation ratings that became available in February 2001. OTS 01-14 (3/12/01)

• OCC Reports Trading Revenues Remain Consistent As Derivatives Volume Reaches Record Level

  U.S. commercial banks earned $2.7 billion from trading activities during the fourth quarter 2000, off slightly from the revenue earned a quarter earlier. Trading revenue is earned from cash instruments and off-balance sheet derivative instruments. OCC: NR 2001-28 Report (3/12/01)

• Regulators Publish Correction to Disclose and Reporting CRA Rule

  Regulators make correction to the previously published final rule, concerning the disclosure
  and reporting of certain agreements related to the CRA. 66FR14071 (3/9/01)

• Federally insured credit unions will receive $99.5 million

  The NCUA voted to waive an insurance premium for 2001 and pay a 3 percent dividend of $99.5 million to the nation’s 10,316 federally insured credit unions. The dividend returns the National Credit Union Share Insurance Fund (NCUSIF) to the Board approved 1.3 percent normal operating level for calendar year 2000. NCUA Press Release (3/9/01)

• FDIC Publishes Consumer News

  The latest edition of the FDIC’s quarterly newsletter for consumers features a "how-to" guide to
  understanding and using new rights to financial privacy. Other stories address such topics as what the FDIC’s insurance rules say if you manage deposits for a friend or relative.
  FDIC Consumer News (3/9/01)

• Comptroller Hawke Says Bankers and Regulators Better Prepared to
  Deal with Challenging Economy

  Comptroller of the Currency John D. Hawke, Jr. said that bankers and regulators both learned from the problems of the early 1990s and are far better prepared to deal with a challenging economic
  environment today as a result. OCC:NR 2001- 26 (3/9/01)

• Interagency Task Force Publishes Spanish-Language Consumer Brochure about Shopping for and Negotiating the Best Mortgage

  The federal Interagency Task Force on Fair Lending has published a Spanish-language version of its popular brochure for consumers, Looking for the Best Mortgage: Shop, Compare, Negotiate. FRB Press Release, OCC: NR 2001-27, FTC, OTS (3/9/01)

• CAC Schedules Next Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 22. FRB Press Release (3/9/01)

• FDIC Chairman Tanoe Gives Preview of Deposit Insurance Reform

  FDIC Chairman Donna Tanoue previewed the deposit insurance reform recommendations the agency plans to issue at the end of this month. FDIC:PR-19-2001 (3/8/01)

• FDIC Issues Statement on Appraisal Standards

  The Appraisal Standards Board (ASB) of The Appraisal Foundation recently released Appraisal Standards Statement No.10, "Assignments for Use by a Federally Insured Depository Institution in a Federally Related Transaction." The statement was issued in response to indications that some appraisers are not following Uniform Standards of Professional Appraisal Practice (USPAP) for federally related transactions. FDIC: FIL-20-2001 (3/8/01)

• FDIC Releases Preliminary Fourth Quarter and Year-End Earnings for Commercial Banks

  Annual profits of the commercial banking industry fell in the year 2000, snapping an eight-year streak of annual earnings records, the Federal Deposit Insurance Corporation reported. FDIC:PR-18-2001 (3/8/01)

• OTS Reports Near Record Thrift Earnings in 2000; Industry Mortgage Originations Top
  $200 Billion

  The nation’s thrift industry recorded net income of $8 billion in 2000, down only $200 million from
  the record set in 1999, the OTS reported. In its fourth quarter Thrift Industry Financial Condition Report, the OTS said that earnings were $1.91 billion during the fourth quarter, up from $1.84 billion in the third quarter, a 3.8 percent hike. OTS 01-16 (3/8/01)

• Nicholas Owens Joins NCUA's Public Affairs Team

  NCUA Chairman Dennis Dollar has selected Nicholas N. Owens as special assistant to the chairman for public affairs. NCUA Press Release (3/7/01)

• OTS Supports Oxley Information Sharing Initiative Targeted at Financial Services
  Industry Wrongdoers

  The OTS supported Financial Services Committee Chairman Michael Oxley’s (R-Ohio) initiative to have the major financial services regulators share information about people and entities in the financial services industry that have committed crimes or engaged in other pertinent wrongdoing.
  OTS 01-15 (3/7/01)

• Comptroller Hawke Outlines the Global Challenges of Internet Banking

  Comptroller of the Currency John D. Hawke, Jr. addressed the cross-border and international challenges of Internet banking for bankers and bank supervisors in a speech to the Institute of International
  Bankers. OCC:NR 2001- 23
  (3/7/01)

• Comptroller Hawke Outlines the Challenges of Reaching the Unbanked

  Comptroller of the Currency John D. Hawke, Jr. outlined the challenges of bringing banking services to the unbanked in a speech to the National Community Reinvestment Coalition. OCC: NR 2001-24 (3/7/01)

• FRB Issues Revisions to Reg E

  The revisions implement amendments to the act contained in the Gramm-Leach-Bliley Act that require the disclosure of certain fees associated with automated teller machine transactions. The amendments require ATM operators that impose a fee for providing electronic fund transfer services to post a notice in a prominent and conspicuous location on or at the ATM. 66FR13409 FDIC: FIL-25-2001 (3/6/01)

• SEC Issues Proposed Rule Regarding the Electronic Signatures in Global and National Commerce Act of 2000

  The SEC announces several upcoming rulemaking activities regarding recordkeeping requirements under the federal securities laws consistent with the Electronic Signatures in Global and National Commerce Act of 2000. The action delays the effective date of certain provisions in the Act that may affect certain recordkeeping requirements under the federal securities laws. SEC: 33-7955 (3/6/01)

• FDIC Issues March List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in December 2000. FDIC:PR-17-2001 (3/6/01)

• OCC Issued Proposed Capital Rule for Nonfinancial Equity Investments

  As earlier reported in the Federal Register, the OCC has issued a proposed rule on the regulatory capital treatment of nonfinancial equity investments. OCC 2001-13 (3/6/01)

• Roger W. Ferguson, Nominated to Full term on FRB Board

  Federal Reserve Board member Roger W. Ferguson, Jr. issued the following statement: "I am pleased that President Bush has announced his intention to nominate me to a full term on the Federal Reserve Board. My experience on the Board has been enormously gratifying. I'm delighted to have the opportunity to continue my work with Chairman Greenspan and our colleagues on the Board." FRB Press Release (3/6/01)

• Former FDIC Employee Pleads Guilty to Identity Fraud Scheme

  FDIC Inspector General Gaston L. Gianni, Jr., announced that former FDIC employee Theresa A. Hill of Seat Pleasant, MD, pled guilty on March 1 to conspiracy in connection with an identity fraud scheme. FDIC: PR-16-2001 (3/5/01)

• OTS Makes Application Processing Easier

  The OTS issued rules designed to make application processing easier to understand and more predictable for both applicants and the agency. OTS 01-13 (3/5/01)

• OTS Announces CRA Examination Schedule for 2nd Quarter 2001

  The OTS announced that 43 savings associations are scheduled for CRA examinations during the second quarter of 2001. OTS-01-12 (3/5/01)

• OCC Issues Second Quarter 2001 CRA Examination Schedule

  The OCC released its schedule of CRA examinations to be conducted in the second quarter of 2001.
  OCC:NR 2000- 21 (3/5/01)

• OCC Issues Guidance on Bank-Provided Aggregation Services

  The OCC issued a bulletin that outlines the risks involved in the offering of account aggregation services by national banks and the management controls that are needed in connection with such services.
  OCC:NR 2001- 22 (3/5/01)

• FRB Publishes Final Rule to Implement Provisions of GLBA Requiring Disclosure of ATM Fees

  The GLBA amended the Electronic Fund Transfer Act by requiring disclosure of fees imposed by ATM operators (sometimes referred to as "surcharges"). Many ATM operators that impose such fees already disclose information about the fee to satisfy existing Regulation E and ATM interchange network requirements. FRB Press Release Board's Notice (3/5/01)

• Comptroller Hawke Praises Community Development Lenders

  Comptroller of the Currency John D. Hawke, Jr. said that community development organizations, through hard work and resourcefulness, have passed a critical turning point that ensures their future success in both good economic times and bad. OCC: NR 2001-20 Speech (3/2/01)

• FDIC Issued Proposed Capital Rule for Nonfinancial Equity Investments

  As earlier reported in the Federal Register, the FDIC is requesting public comment on a proposed rule governing the regulatory capital treatment for equity investments in nonfinancial companies held by FDIC-supervised banks. FDIC:FIL-19-2001 (3/2/01)

• FDIC Issues Second Quarter CRA Examination Schedule

  The FDIC has issued the public list of institutions that it has scheduled for a CRA examination during the second quarter of 2001. FDIC:PR-15-2001 (3/2/01)

• FDIC Spotlights FFIEC Statement on Revised Article 9

  The FFIEC has issued a statement concerning a major revision to Article 9 of the UCC and its effect on financial institutions. Article 9 governs transactions involving the granting of credit secured by personal property. FIL-18-2001 (3/1/01)

• FRB is Integrating the Examination Frequency for Trust and Transfer Agency Examinations with Safety and Soundness Exams

  The frequency and scope of examination coverage of fiduciary activities at banking organizations supervised by the FRB should be based on the guidelines provided by the FRB. Supervisory risk profiles, risk assessments, and supervisory plans should also reflect fiduciary activities. FRB: SR 01-5 (3/1/01)