Top Story Lending Related

The Government Accountability Office (GAO) has issued a report suggesting that more efforts are needed in fair housing controls and toward improved access for non-English speakers in a key government housing program. The Home Affordable Modification Program (HAMP) offshoot, MHA Outreach and Borrower Intake Project, includes a Treasury Department requirement that servicers monitor compliance with fair lending laws, but no assessment has yet been made of the extent to which servicers are meeting that requirement. Also, notwithstanding a 2000 Executive Order and a 2011 Attorney General's memorandum, says the report, Treasury has only recently developed guidelines and procedures for MHA programs relating to improving access for limited English proficiency persons.

The Government Accountability Office (GAO) has issued a report suggesting that more efforts are needed in fair housing controls and toward improved access for non-English speakers in a key government housing program. The Home Affordable Modification Program (HAMP) offshoot, MHA Outreach and Borrower Intake Project, includes a Treasury Department requirement that servicers monitor compliance with fair lending laws, but no assessment has yet been made of the extent to which servicers are meeting that requirement. Also, notwithstanding a 2000 Executive Order and a 2011 Attorney General's memorandum, says the report, Treasury has only recently developed guidelines and procedures for MHA programs relating to improving access for limited English proficiency persons.

• Treasury Withdraws and Reproposes Bank Deposit Interest Regulations

  The Treasury Department withdrew January 2001 proposed regulations that would have required reporting to the IRS for bank deposit interest paid to all nonresident alien individuals and issued new proposed regulations that will require reporting on a more limited basis. Treasury PO-3301 Bank Deposit Interest Regulations 7/31/02

• OFAC Publishes Interpretative Ruling

  The Office of Foreign Assets Control has published an interpretative ruling on computerized reservation systems (Cuba travel). Interpretative Ruling 7/31/02

• FDIC Makes Public June Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in June. No administrative hearings are scheduled for August. FDIC:PR-87-2002 7/31/02

• FDIC Issues Amended Statement of Policy on Bank Merger Act Transactions

  The FDIC has amended its Statement of Policy on Bank Merger Transactions to incorporate a statutory change made by the USA PATRIOT Act. FDIC:FIL-82-2002, Notice 7/31/02

• Hispanic Banking Forum Encourages Banks to Reach Growing Hispanic Population in Chicago Region

  The OCC, FRB of Chicago and the FDIC will co-sponsor a Hispanic Banking Forum in Chicago, Illinois on July 31. OCC:NR 2002-62 7/31/02

• OCC Publishes Bulletin on Customer ID Proposal

  As earlier reported in the Federal Register, this bulletin transmits a notice of proposed rule making jointly published by the U.S. Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), the federal banking agencies, and the National Credit Union Administration on July 23. OCC 2002-34 7/31/02

• Appeals Court Upholds Financial Privacy Regulations

  Trans Union May Not Sell Consumers' Personally Identifiable Financial Information without their Consent. The United States Court of Appeals for the District of Columbia Circuit has affirmed a lower court decision upholding regulations enacted by the Federal Trade Commission and six other federal agencies to implement the privacy provisions of the Gramm-Leach-Bliley Act (GLBA). FTC Press Release 7/30/02

• Written Agreement with Community First Bank and Trust

  The Federal Reserve Board announced the execution of a Written Agreement by and among the Community First Bank and Trust, Celina, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions. FRB Press Release 7/30/02

• HUD Issues Proposed Rule to RESPA

  HUD is issuing a proposed rule under RESPA, to simplify and improve the process of obtaining home mortgages and reduce settlement costs for consumers. 67FR49133 7/29/02

• OCC is Revising the Expedited Review Procedures for National Banks to Effect Reverse Stock Splits

  This advisory letter updates existing guidance to reflect the repeal of 12 USC 51 on minimal capital requirements. OCC:AL 2002-6 7/29/02

• Regulators Issue Proposed Collection of Data on Subprime Consumer Lending Programs

  As earlier reported in the fderal register, the FDIC, FRB, and the OCC are requesting comment on the addition of a proposed new schedule to the Reports of Condition and Income (Call Report) that would collect data on consumer loans in subprime lending programs. FDIC:FIL-81-2002, FFIEC 7/29/02

• 2002 National Money Laundering Strategy Roll Out

  The release of the 2002 National Money Laundering Strategy into a world that changed dramatically as a result of the villainous terrorist attacks on September 11, 2001. The Strategy directs the government's resources against money launderers and those who finance terrorist activities and individuals. It is a good plan and a critical mission. Press Release 2002 Money Laundering Strategy 7/26/02

• Treasury Requests Comments on Suspicious Activity Report Money Services Businesses

  It is anticipated that the form will be final and available for use on October 1, 2002. Until that time, Money Services Businesses are to continue to use the Bank SAR form, Form TD F 90–22.47. 67FR48704 7/26/02

• Approval of application of Nordea Bank Finland

  The Federal Reserve Board announced the approval of the application of Nordea Bank Finland Plc, Helsinki, Finland, to establish a branch in New York, New York and acquire ownership of a commercial lending company, American Scandinavian Banking Corp., New York, New York. FRB Press Release 7/26/02

• DIT Test Schedule

  Federal Reserves Financial Services publishes the DIT Test Schedule 7/26/02

• FDIC Merger Decisions: Annual Report to Congress

  Approval of bank absorptions when the resulting bank is a state nonmember bank. Report 7/26/02

• The Rise of Risk Management: Basel and Beyond

  FDIC hosts a symposium on risk management and the new Basel Capital Accord. Symposium Description 7/26/02

• FDIC Issues Rule on Corporate Debt Collection

  The regulation sets forth the procedures the FDIC will follow in collecting debts owed to the United States. These procedures include collection of debts through administrative offset, salary offset, administrative wage garnishment and tax refund offset. 67FR48525 (text) 7/25/02

• Enhancing Financial Transparency

  In response to the recent wave of corporate accounting controversies that has shaken investor confidence in U.S. financial markets, the FDIC gathered prominent policymakers, academic experts, and business and accounting professionals on June 4, 2002 to participate in a daylong symposium addressing transparency issues. This issue of FYI and an accompanying Bank Trends report summarize the comments provided by participants in the June FDIC symposium. FYI 7/25/02

• FinCEN Announces it is Rescinding an Exemption

  FinCEN is announcing that it is rescinding an exemption from the provisions of the Bank Secrecy Act regulations granted in 1972 to persons required to register as brokers or dealers in securities (``broker-dealers'') solely to permit the sale of variable annuities contracts issued by life insurance companies. 67FR48388 (text) 7/24/02

• Software Change to the Fedwire Funds Service Message Format

  A number of changes were made to the Fedwire Funds Service message format to facilitate mapping from a SWIFT MT103 to Fedwire . One of these changes was to add a second optional element to Business Function Code field tag {3600} to map to the SWIFT field 26T, Transaction Type Code. This second optional element of the Business Function Code {3600} is intended to be present only when the first element, Business Function Code, is CTR. Software Change and Clarification of Field {3600} 7/24/02

• FBIIC Policy on Sponsorship of GETS Cards

  In order to provide guidance to financial organizations seeking sponsorship for NCS services, the Financial and Banking Information Infrastructure Committee (FBIIC) is developing a series of policies on the sponsorship of priority telecommunications access for private sector entities through the NCS. OCC 2002-33 FBIIC GETS Process 7/24/02

• Prohibition Against Interstate Deposit Production: Annual Loan-to-Deposit Ratios

  The FRB, OCC and FDIC recently issued updated 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 (Interstate Act). OCC 2002-32, 2002 Host State Loan-to-Deposit Ratios 7/24/02

• OCC Issues Alert on Unauthorized Banking Entities

  This issuance alerts banks and financial regulators that Trinity Savings Bank and Goldman & Stein are not authorized to conduct banking or financial business in Belize. Neither entity has been authorized by the OCC to conduct banking in the United States. ALERT 2002-8 7/24/02

• 2001 FDIC Program Performance Report

  The Report compares actual performance to the goals established in the FDIC's 2001 Annual Performance Plan. 7/24/02

• OFAC

  The Office of Foreign Assets Control has issued guidance on transshipments to Iran. Guidance7/24/02

• Regulators Draft Guidance on Credit Card Lending

  Under the auspices of the FFIEC, the OCC, FRB, FDIC and OTS have developed account management and loss allowance guidance for credit card lending. FRB Press Release, OCC:NR 2002-61, OTS 02-32, FDIC-PR-86-2002, FFIEC Press Release , Guidance 7/23/02

• FDIC Issues Proposed Rule on State Banks Chartered as Limited Liability Companies

  The FDIC proposes to issue a regulation that would clarify that a bank that is chartered as an LLC under State law would be considered to be ``incorporated'' under State law if it meets certain criteria. 67FR48054 (text) 67FR48054 (pdf) 7/23/02

• Customer ID Proposals Published in Federal Register

  The proposed rules on customer identification and verification have now been published in the Federal Register. Written comments must be submitted within 45 days from today. 67FR48289 (text), 67FR48289 (pdf)7/23/02

• Treasury Issues Guidance on the USA PATRIOT Act, Pending Issuance of Final Rule

  The Department of the Treasury and FinCEN issued an interim rule advising financial institutions on how to comply with the statutory provisions of section 312 of the USA PATRIOT Act, pending issuance of the final rule that will be published by October 25, 2002. PO-3270 7/22/02

• FDIC Issues Alert on Missing Cashiers Checks

  The FDIC has been informed by Bank of America, Dallas, Texas, that 1,000 of the bank's cashier's checks have been stolen while in transit from the check printer to the bank. The bank's routing number is 114000019, and the account number is 001641003748. FDIC:FIL-80-2002 7/22/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization
  

  The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 30), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-79-2002 7/22/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-78 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-78-2002 7/22/02

• FTC Testifies on Identity Theft and the Impact on Seniors

  The FTC told the U.S. Senate Special Committee on Aging that about 10 percent of consumers who called the agency to report that they are victims of identity theft are age 60 or older. FTC Press Release 7/19/02

• OCC Unveils New Version of Web-based Manual To Ease Access to Updated Application Requirements

  The OCC announced that the first six booklets in the Comptroller's Licensing Manual are now available on the OCC's Internet site. OCC:NR 2002- 60 Licensing Manual 7/19/02

• Administrative Actions Against PNC Financial Services Group

  The Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission jointly announced the issuance of administrative actions addressing bank supervisory and securities law-related matters against The PNC Financial Services Group, Inc., Pittsburgh, Pennsylvania, a bank holding company. FRB Press Release 7/19/02

• OFAC Comment Deadline Looms

  July 19 is the deadline for submitting comments on OFAC's proposal to make information public on OFAC civil penalty actions Don't miss the opportunity to tell them what you think! OFAC Civil Penalties Proposal How to Write a Comment Letter 7/18/02

• OCC Issues Examination Procedures for COPPA

  Financial institutions are subject to COPPA if they operate a Web site(s) or online service(s) (or portion thereof) directed to children, or have actual knowledge that they are collecting or maintaining personal information from a child online. OCC 2002-31 Examination Procedures 7/18/02

• Treasury Department and Social Security Administration Announce Plans to Develop ID Verification System to Help Fight Identity Fraud

  The Treasury Department and the Social Security Administration (SSA) announced an agreement to develop and implement a system by which financial institutions may access a database to verify the authenticity of Social Security Numbers provided by customers at account opening. PO-3264 7/18/02

• Treasury and Federal Financial Regulators Issue Patriot Act Regulations on Customer Identification

  The Department of the Treasury and seven federal financial regulators issued proposed rules that would require certain financial institutions to establish minimum procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Written comments on the proposed rules may be submitted within 45 days of their publication in the Federal Register. FRB Press Release, FDIC: PR-85-2002, NCUA Press Release, SEC Press Release, OCC:NR 2002-59 , OTS 02-31 7/18/02

• OCC Announces New Electronic Interpretations and Actions

  Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 7/18/02

• OCC Releases CRA Evaluations For National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of June 15 through July 14, 2002. 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 2002-58 7/18/02

• THE WAIT IS OVER -- Proposed Rules on Customer ID Just Issued

  The proposed rules on customer identification and verification, required by Section 326 of the USA PATRIOT Act have now been issued by the various regulatory agencies. Proposed Rules on Customer ID Just Issued 7/17/02

• OCC Issues Correction to Previously Issued Rule

  On June 6, 2002, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC published a final rule in the Federal Register that amended each Agency's regulation governing deposit production offices. Today they issued a document that corrects a typographical error in the OCC's regulation. 67FR46842 7/17/02

• OCC Announces New Enforcement Actions and Terminations

  The OCC announced 11 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002- 57 7/17/02

• NCUA Submits Comment to SEC Supporting Credit Union Ability to Offer Sweep Accounts

  The NCUA announced that it has issued a letter to the SEC in response to the SEC's request for comment on the Notice of Application of Evangelical Christian Credit Union (ECCU) for Exemptive Relief (SEC File No. S7-12-01). In the letter, NCUA Chairman Dennis Dollar stated, We support exemptive relief for ECCU and for all federally-insured credit unions to permit them to offer sweep account services without registration to all their members on the same terms and conditions as banks and thrifts.” NCUA Press Release 7/17/02

• FBI Studying SSN Misusage for Terrorist Links

  The FBI has reported to Congress that it is undertaking a multi-phase data mining project that seeks to identify potential terrorist related individuals through Social Security Number misusage analysis. The report was in connection with a Congressional hearing on identity theft. FBI Statement to Congress on ID Theft 7/16/02

• Regulators are Hosting an Inter-agency Information Technology Security Conference

  The Regulators are hosting an inter-agency information technology security conference October 15 – 17, 2002 at the Hilton DFW Lakes Executive Center in Grapevine, Texas. OTS Press Release 7/16/02

• RESPA Proposed Rule to Simplify and Improve the Process Of Obtaining Mortgages to Reduce Settlement Costs to Consumers

  HUD submitted to Congress a draft of its proposed rule to reform the Real Estate Settlement Procedures Act ("RESPA"). Congress has 15 days from the date of submission to review this draft proposal before HUD can publish it in the Federal Register for public comment. The draft proposed rule has three major parts. First, the proposal clarifies disclosure rules applicable to transactions involving mortgage brokers. Second, the proposed rule amends the good faith estimate disclosure ("GFE") to increase clarity and make it more useful to consumers. Third, the draft proposal creates a system of guaranteed cost disclosures pursuant to a safe harbor under Section 8 of RESPA. Press Release (Word doc) 7/15/02

• FRB's Financial Services Publishes Operating Circular #7

  The Operating Circular sets forth the terms under which the Federal Reserve Bank of (City) maintains Securities Accounts and effects Transfers of Book-Entry Securities for Participants. By maintaining a Securities Account, a Participant agrees to all theprovisions of this Circular, as amended from time to time. Operating Circular #7 7/15/02

• Service Charge Information via FedLine for the Web

  FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Service Charge Information 7/15/02

• Account Management Information via FedLine for the Web

  FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Account Management Information 7/15/02

• Agenices Request Comment on Changes to the Call Report

  The FFIEC, of which the agencies are members, has approved the agencies' publication for public comment of proposed revisions to the Consolidated Reports of Condition and Income (Call Report) for banks and the Thrift Financial Report (TFR) for savings associations, which are currently approved collections of information. 67FR46250 7/12/02

• FedACH File Edit Change

  A change to FedACH edit procedures will align the stale date and duplicate file parameters. Beginning July 29, 2002, the stale date edit will check for file creation dates that are older than four days. Previously the stale date edit looked for files that were over five days old. FRB Financial Services 7/12/02

• New Quarterly Letter to FDIC Stakeholders to Communicate Significant Agency Activities

  The Letter to Stakeholders will be published at the end of each calendar quarter. It will appear in both electronic and hard-copy forms. This is just one of many tools we are using to communicate significant activities at the FDIC. FDIC:FIL-77-2002, Letter to Stakeholders FYI 7/11/02

• Minutes of Board discount rate meetings, April 1, 2002, to May 6, 2002

  The Federal Reserve Board released the minutes of its discount rate meetings from April 1 to May 6, 2002. FRB Press Release 7/11/02

• Written Agreement with Rurban Financial and State Bank and Trust

  The Federal Reserve Board announced the execution of a Written Agreement by and among Rurban Financial Corp., Defiance, Ohio; The State Bank and Trust Company, Defiance, Ohio; the Federal Reserve Bank of Cleveland; and the Ohio Division of Financial Institutions. FRB Press Release 7/11/02

• U.S. Lifts Financial Advisories on Israel, Lebanon and St. Kitts & Nevis

  FinCEN notified U.S. financial institutions that, based on the improvements in their anti-money laundering regimes and on the FATF action, the U.S. is withdrawing the FinCEN Advisories on Israel, Lebanon, and St. Kitts & Nevis. Treasury Press Release FinCEN Advisory #26A FinCEN Advisory #18A, FinCEN Advisory #17A, Financial Action Task Force (FATF) 7/10/02

• FTC Calls for Stiffer Penalties for Identity Thieves

  The Federal Trade Commission testified that it supports a Senate bill to increase penalties for identity thieves who use stolen identities to commit certain federal crimes. FTC Press Release 7/10/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 29), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-74-20027/10/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC:FIL-75-2002 7/10/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-76 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-76-2002 7/10/02

• Federal Reserves Financial Services Publishes the Summary of Billing Service Changes

  The survey results identified a need to improve the Summary Statement of Service Charges. Specifically, customers indicated they had trouble interpreting the Billing statement and reconciling their monthly charges. Summary of Billing Service Changes 7/9/02

• Written Agreement with First American Bank

  The Federal Reserve Board announced the execution of a Written Agreement by and among First American Bancorp, Inc., Stonewall, Oklahoma, the First American Bank, Stonewall, Oklahoma, the Federal Reserve Bank of Kansas City, and the Oklahoma State Banking Department. FRB Press Release 7/9/02

• Orders of Restitution against former directors of Great Eastern Bank

  The Federal Reserve Board announced the issuance of Orders of Restitution against William Chiang, Paul Lee, Joseph C.C. Kuo, Lih Yuh Kuo, and Ching-Tseh Yao, all former directors of the Great Eastern Bank, Flushing, New York. FRB Press Release 7/9/02

• FOMC Announces 2003 Schedule

  The Federal Open Market Committee announced its tentative meeting schedule for 2003 FRB Press Release 7/8/02

• FDIC Issues July 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 April 2002. FDIC:PR-84-2002 7/8/02

• Opportunities for Former FDIC Employees

  The FDIC is collecting the names of former employees who may be interested in working on projects, including foreign technical assistance projects, when needed by federal government agencies, international organizations, or private organizations seeking persons knowledgeable about banking and financial issues. These projects vary in nature, scope and duration. Employment Opportunity 7/5/02

• OCC Issues Bulletin on OFAC Proposed Rulemaking

  The OCC bulletin transmits a notice of proposed rulemaking published by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) on June 19 concerning the availability of information. This notice was previously announced on BOL. OCC 2002-30 7/5/02

• FFIEC Publishes Call Report Validation Criteria

  Added March 31, 2002 Call Report Validation Criteria Edits Expressed in Boolean Logic: PDF | Excel - FINAL, revised July 1, 2002 7/5/02

• OCC Issues Alert on Fictitious Regulatory Agency Issuances

  This issuance alerts banks and financial regulators to the distribution from an unknown source by e-mail, fax, or regular mail of fictitious regulatory agency issuances that contain proposals involving claims to certain international payments reportedly held by the OCC. The names and signatures on these documents are not those of real OCC officials. OCC:Alert 2002-7 7/3/02

• FDIC Sells Nextbank Owned Credit Card Portfolio

  The FDIC has announced the sale of the owned credit card portfolio from the former NextBank, National Association, Phoenix, Arizona (NextBank). NextBank was closed on February 7, 2002, by the Office of the Comptroller of the Currency and the FDIC was named receiver. FDIC:PR-83-2002 7/3/02

• FFIEC Publishes Statistical Release

  March 31, 2002 E16 Country Exposure Statistical Release 7/3/02

• Suspicious Activity Reporting Rule for Broker-Dealers Finalized

  In a continuing effort to expand the coverage of suspicious activity reporting to all potentially vulnerable sectors of the financial services industry, the Financial Crimes Enforcement Network announced a new rule requiring brokers and dealers in securities to report suspicious activity. FinCEN Press Release7/2/02

• FTC Charges of Violating Debt Collection and Credit Reporting Laws

  Canoga Park, California-based D.C. Credit Services, Inc. and company co-owner, David Cohen, have agreed to pay a $300,000 civil penalty as part of a settlement of Federal Trade Commission charges that they violated the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). In addition to requiring the civil penalty, the consent decree to settle the charges would permanently ban defendant David Cohen from engaging in debt collection activity. FTC Press Release 7/2/02

• FDIC Issues Final Rule on an Agency Reorganization

  On June 30, 2002, the FDIC, through an internal organizational order, merged the Division of Supervision and the Division of
  Compliance and Consumer Affairs and as a result of the merger, changed the name of the ``Division of Supervision'' and ``Division of Compliance and Consumer Affairs'' to the ``Division of Supervision and Consumer Protection'' (DSC). 67FR44351 (text) 7/2/02

• FDIC To Market Connecticut Bank of Commerce Assets

  The FDIC announced that it will market a $248 million loan portfolio from the failed Connecticut Bank of Commerce, Stamford, Connecticut, whose offices were located in several Connecticut cities and New York, New York, within the next 45 days. FDIC:PR-82-2002 7/2/02

• Testing, Testing

  Is it a subliminal message from the regulators emphasizing the importance of testing your compliance program and testing your information security measures, or is it simply a reflection of the fact that some Internet technology simply isn't ready for prime time? Start your day with a chuckle by viewing an FDIC Webcast on "Enhancing Financial Transparency". You'll see that even the regulators can get befuddled by technology. (And once you get past the humorous opening part, the Webcast really is excellent.) 7/1/02

• FRB of Philly Enters into Written Agreement with PA Bank

  The latest bank to bite the BSA dust is a Pennsylvania bank which entered into a written agreement with the Federal Reserve Bank of Philadelphia June 20, 2002. The Agreement requires the bank to conduct a comprehensive review of BSA compliance controls and procedures and identification and reporting of suspicious activity and make a written report of what it finds to the reserve bank, plus a lot more. You'll want to read the order. FRB Press Release 7/1/02

• Money Smart, a training program from the FDIC

  The FDIC recognizes the importance of financial education, particularly for people with little or no banking experience. That 's why they created Money Smart, a training program to help adults outside the financial mainstream enhance their money skills and create positive banking relationships. Money Smart 7/1/02

• FDIC Approves Assumption of the Insured Deposits and Certain Assets of the Universal Federal Savings Bank, Chicago, Illinois

  The FDIC has approved the assumption of the insured deposits of Universal Federal Savings Bank, Chicago, Illinois by Chicago Community Bank, Chicago, Illinois. FDIC:PR-81-2002, Spanish Version 7/1/02

• FDIC Approves Assumption of The Insured Deposits and Certain Assets of The Connecticut Bank of Commerce, Stamford, Connecticut

  The FDIC has approved the assumption of the insured deposits of The Connecticut Bank Of Commerce, Stamford, Connecticut, by Hudson United Bank, Mahwah, New Jersey. FDIC:PR-80-2002 7/1/02

• FDIC Makes Public May Enforcement Actions; One Administrative Hearing Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in May. One administrative hearing is scheduled for July. FDIC:PR-79-2002 7/1/02

• FDIC Chairman Appoints Cottrell L. Webster As Agency's Ombudsman

  FDIC Chairman Don Powell today announced the appointment of Cottrell L. Webster to the post of Ombudsman. Webster replaces Ronald F. Bieker, who will become the agency's Regional Director in Kansas City. Webster now serves as Director of the Division of Supervision's Memphis Regional Office. FDIC:PR-78-2002 7/1/02

• FDIC is Centralizing the Consumer Affairs Function

  The FDIC is pleased to announce that it is centralizing its consumer affairs function with the establishment of the National Consumer Response Center (CRC) within the Division of Supervision and Consumer Protection. This move will improve efficiency and enhance service to consumers needing assistance. The CRC will become operational on July 1, 2002. FDIC:FIL-73-2002 7/1/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Guaranty Bank of California, Los Angeles, California, are in circulation. The routing number is 122235902. It appears the checks may be circulating nationwide. FDIC:FIL-72-2002 7/1/02

• FDIC Issues Alert on Missing Cashier's Checks

  The FDIC has been informed by Bank West of Nevada, Las Vegas, Nevada, that 284 of the bank's cashier's checks are missing and may have been stolen. The bank's routing number is 122401778. FDIC:FIL-71-2002 7/1/02

• Statement by FTC Chairman Muris Regarding Proposed RESPA Rule Revisions by Housing and Urban Development

  Speaking at the National Press Club in Washington, D.C. , Department of Housing and Urban Development (HUD) Secretary Mel Martinez announced a proposal that would reform the regulatory requirements under the Real Estate Settlement Procedures Act (RESPA) that govern settlement fees paid by home buyers. FTC Press Release 6/28/02

• OCC Survey Shows Measured Response By Banks to Slowing Economy

  The OCC's eighth annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened for the second consecutive year in a measured response to a slowing economy and pockets of deteriorating product performance. OCC:NR 2002-56 6/28/02

• OCC Announces New Electronic Interpretations and Actions

  Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 6/28/02

• FDIC Expands Money Smart Alliance Program

  The FDIC announced that the U.S. Department of Housing and Urban Development, the U.S. Small Business Administration, the United Way of Greater Los Angeles and the CHARO Business Center have joined the FDIC in an effort to raise financial literacy in underserved communities and bring the unbanked into healthy banking relationships through the FDIC's Money Smart financial education program. The announcement was made at a news conference in Los Angeles. FDIC:PR-75-2002 6/28/02

• FDIC Announces Receivership of Universal Federal Savings Bank, Chicago, Illinois

  Universal Federal Savings Bank, Chicago, Illinois, was closed by the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-76-2002 Statement 6/28/02

• Fed Leaves Interest Rates Unchanged

  The Federal Open Market Committee decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 6/27/02

• Scam Artists Use Do Not Call Registry to Commit Fraud

  Scam artists capitalizing on the popularity of existing state "Do Not Call" lists and the proposed FTC "Do Not Call" registry have devised yet another method to trick consumers into giving up personal information, such as their Social Security number, bank account number, credit card number or telephone calling card number. FTC Press Release 6/27/02

• FFIEC Adds June Forms

  The FFIEC added the June 2002 FFIEC 002 Reporting Form and instructions and the June 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 6/27/02

• Financial Institution Guidelines for Making Same-day Federal Tax payments in EFTPS

  The guidelines provide consolidated information to financial institutions regarding same-day payment methods to remit Federal tax payments for business taxpayers. FRB Financial Services 6/27/02

• Reg C Changes Published in the Federal Register

  The FRB has published in the Federal Register, its amendments to Regulation C (the HMDA reg) and staff interpretations. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. 67FR43217 (text), 67FR43218 (text) 6/27/02

• FDIC Announces Receivership Of The Connecticut Bank Of Commerce, Stamford, Connecticut

  The Connecticut Bank of Commerce, Stamford, Connecticut, was closed by the Banking Commissioner, Connecticut Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-74-2002 Closing Information 6/27/02

• New Money Smart Initiatives Announced at San Antonio Event

  As part of the national rollout of the Federal Deposit Insurance Corporation's (FDIC) Spanish-language version of its highly successful Money Smart financial education program, several new initiatives were announced at a news conference in San Antonio, Texas. FDIC:PR-73-2002 6/27/02

• FDIC Announces Release of Spanish Language Version of Money Smart Program

  Calling financial education "key to building assets and achieving long-held dreams," FDIC Chairman Don Powell launched the Spanish language version of the FDIC's adult financial education curriculum, Money Smart, at a news conference in Pilsen, a Latino neighborhood in Chicago. FDIC:PR-71-2002 , Speech 6/26/02

• FDIC Issues Removal and Prohibition Order and a Civil Money Penalty Against a Texas Banker

  The FDIC has issued a removal and prohibition order and a civil money penalty of $2,500 against Vernon Beryl Murdock, Jr., formerly with the Kent County State Bank, Jayton, Texas. FDIC:PR-72-2002 6/26/02

• Banking agencies issue host state loan-to-deposit ratios

  The FRB, OCC and FDIC iissued 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. These ratios update data released in June 2001. Ratios, FRB Press Release, OCC:NR 2002-55 FDIC:FIL-70-2002, FDIC-PR-70-2002 6/25/02

• OCC Issues Booklet on Insurance Activities

  The OCC issued a booklet that provides information to national banks and OCC examiners on the risks, controls and supervision of national bank insurance activities. OCC:NR 2002- 54, Booklet 6/25/02

• Regulation C Changes Become Official

  The FRB has published its amendments to Regulation C (the HMDA reg) and staff interpretations reported on earlier in BOL Top Stories. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information.. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. FRB Press Release 6/24/02

• Regulators Distribute Call Report for Second Quarter 2002

  Banks should complete your second quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by July 30, 2002. FDIC:FIL-69-2002 6/24/02

• OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

  The OTS announced that 81 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the third quarter of 2002. OTS 02-30, Exam Schedule 6/24/02

• FATF Annual Report for 2001-2002 released

  The Financial Action Task Force on Money Laundering (FATF) issued its thirteenth annual report. The report outlines the main achievements of the FATF in 2001-2002 under the Presidency of Hong Kong, China, including the significant progress that has been made in combating terrorist financing and in the work on non-cooperative countries and territories (NCCTs). FATF Press Release 6/24/02

• OCC Issues Bulletin on Previously Issued Proposed Rule to Implement a Provision of the USA PATRIOT Act

  Section 312 of the act furthers this goal by requiring U.S. financial institutions to establish due-diligence policies,
  procedures, and controls reasonably designed to detect and report money laundering through correspondent accounts and private banking accounts of non-U.S. persons. Private banking accounts involve accounts of $1 million or more for individuals that are administered by an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account. OCC 2002-29 6/24/02

• Bill McPherson Named Deputy Comptroller for Large Banks; Michael Brosnan Appointed Examiner-in-Charge

  The Office of the Comptroller of the Currency announced that James W. (Bill) McPherson has been named Deputy Comptroller for Large Banks. Mr. McPherson, who has served as the Examiner-in-Charge for Bank of America, NA, since January, 1998, will report to Douglas W. Roeder, Senior Deputy Comptroller for Large Banks. OCC:NR 2002-53 6/24/02

• Federal Reserve Financial Services Issues Memo on Unilateral Repo Adjustments

  As previously announced in Clearing Memorandum #236, Fedwire ® Securities Service participants will be permitted on payment date to unilaterally cancel a preauthorized debit associated with a Repo Claim Adjustment to another Fedwire participant. This will be done by submitting a Unilateral Adjustment Request to the Federal Reserve, with the understanding that the Fedwire participant sending the request has not notified the Fedwire participant counterparty and has no agreement from that counterparty. Clearing Memo #238 6/21/02

• Fedwire Securities Service Enhanced Functionality

  Under the category of Book-Entry Securities, the Federal Reserve Financial Services has just posted information on repo tracking and interim accounting cash adjustments. Federal Reserve Financial Services 6/21/02

• Treasury and FRB Announce Plans for Redesigned Notes

  In keeping with their strategy of maintaining the security of Federal Reserve notes by enhancing the design of U.S. currency every seven to ten years, the Department of the Treasury's Bureau of Engraving and Printing (Bureau) and the Federal Reserve Board announced plans to release the next generation of redesigned notes, with improved security features to deter counterfeiting. FRB Press Release 6/21/02

• FFIEC Updates the June 2002 Validation Criteria for the FFIEC031 and FFIEC041 Call Reports

  Validity Edits: PDF | Word - FINAL, revised June 11, 2002
  Quality & Intraseries Edits: PDF | Word - FINAL, revised June 7, 2002 6/21/02

• FDIC Money Smart Curriculum Adopted By South Carolina Adult Education Program

  The FDIC and the South Carolina Department of Education's Workplace Resource Center (WRC) today announced the adoption of the FDIC's Money Smart financial education program as the financial literacy curriculum for use in South Carolina's statewide adult education system. FDIC:PR-69-2002 6/21/02

• OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

  The schedule reflects OTS's implementation of Section 712 of the Gramm-Leach-Bliley Act, which extends the CRA examination cycle from approximately every two years to four or five years for institutions with aggregate assets of not more than $250 million and CRA examination ratings of “Satisfactory” or “Outstanding” respectively. OTS 02-30 6/21/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 28), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-67-2002 6/20/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on eight separate financial institutions are in circulation. It appears these checks may be circulating nationwide. FDIC:FIL-68-2002 6/20/02

• OCC Issues Final Rule on Capital Equivalency Deposits

  The OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies, based on a supervisory assessment of the risks presented by the particular institution.
  67FR41619 (text) 6/19/02

• FRB Seeking Nominations for Consumer Advisory Council

  The Council advises the Board 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 6/19/02

• FRB Financial Services Makes Holiday District Announcement

  The Federal Reserve Banks will be closed on Thursday, July 4, for the Fourth of July holiday. Please refer to the instructions for information on your local office. Unless it is listed separately, all of the particular District's offices and branches will follow the same Cash schedule. Holiday District Announcement 6/19/02

• Banking Industry Performance Remains Strong Despite Lingering Economic Weaknesses

  A report released in the FDIC's Regional Outlook describes recent signs of a consumer-led recovery in the U.S. economy, but cautions that banks remain exposed to lingering economic risks, notably in the area of subprime consumer lending. FDIC:PR-68-2002 6/19/02

• FDIC Appoints 43 Executives as Part of Upcoming Reorganization

  The reorganization and the appointments, which were made through a competitive selection process, become effective June 30.
  "My vision for a reorganized, refocused, accountable and more proficient FDIC is taking shape," Chairman Powell said today. "With these selections, the FDIC now has in place the management structure and team to put a greater percentage of our resources on the line, where our most critical work gets done." FDIC:PR-67-2002 6/18/02

• EFT Newsclips

  The Treasury Department's Financial mangement Service has published its Summer 2002 edition of EFT Newsclips. Among the articles we think are noteworthy are a report on the number of banks (nearly 600) who are participating in the Electronic Transfer Account ("ETA") program; beginning 1/1/04, Treasury checks will no longer have personal identification numbers (such as SSNs) on them; more than 100,000 businesses and individuals have signed up for the online EFTPS program; free marketing materials are available to promote EFTPS; the policy for government ACH reclamations has been clarified; and new SSA procedures are being implemented to quickly resolve erroneous reports from financial institutions of the death of Direct Deposit benefit recipients. EFT Newsclips6/18/02

• OCC Issues Bulletin on Homeownership Counseling: Notice of Statutory Requirement

  This bulletin announces the renewal of a statute requiring all creditors to provide notice of the availability of homeownership counseling to certain first-time mortgage loan applicants and to certain homeowners who are delinquent on their home loans. OCC 2002-27 6/18/02

• OCC Issues Bulletion on Prohibition Against Use of Interstate Branches Primarily for Deposit Production

  As reported earlier in the Federal Register, the OCC has issued a final rule regarding the prohibition against using interstate
  branches for purposes of "deposit production" found in section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act (Riegle-Neal Act). OCC 2002-28 6/18/02

• OCC Releases CRA Evaluations For 38 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, 2002. OCC:NR 2002- 51 6/17/02

• FDIC Issues Several Alerts on Fictitious Checks

  The FDIC has learned that several fictitious cashier's checks are in circulation. The following alerts have been issued: FDIC:FIL-60-2002, FDIC:FIL-61-2002, FDIC:FIL-65-2002 6/17/02

• FDIC Issues Alert on Stolen Bank Note Security Paper

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of bank note security paper from the Denver County (Colorado) Vital Statistics Office. FDIC:FIL-62-2002 6/17/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 27), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-63-2002 6/17/02

• FDIC Issues FIL on FinCEN Advisory

  The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) published issues 28 through 32 of its FinCEN Advisory in April 2002. FDIC:FIL-64-2002 6/17/02

• OCC Announces 2 New Enforcement Actions and 1 Termination

  The OCC announced 2 new enforcement actions taken against national banks and 1 termination of an existing enforcement action. OCC:NR 2002-52 6/17/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-66 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-66-2002 6/17/02

• Settlement Agent Information

  Under the category of Net Settlement, the Federal Reserve Financial Services has just posted information for settlement agents, with operating hours, contacts and forms. Federal Reserve Financial Services 6/14/02

• FDIC Chairman Announces Money Smart Alliance Program to Promote Financial Education in Underserved Communities

  Speaking before a meeting of the National Association of Affordable Housing Lenders, Powell stressed that financial education — particularly of those who are outside the financial mainstream — is a matter of critical importance both to regulators and the American people as a whole. FDIC:PR-66-2002 6/14/02

• FFIEC Adds Forms and Call Report Edits

  The FFIEC has added the June 2002 FFIEC 031 Reporting Form and FFIEC 041 Reporting Form , updated the UBPR order form, and posted validation criteria for the FFIEC031 and FFIEC041 Call Reports. FFIEC 6/13/02

• FDIC Publishes Quarterly Banking Profile - First Quarter 2002

  The Quarterly Banking Profile is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured commercial banks and savings institutions. This report card on industry status and performance includes written analyses, graphs, and statistical tables. 6/13/02

• FDIC Minority Depository Institutions Program

  The FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. The new Policy Statement has been updated to reflect changes in certain regulations and to expand the FDIC's Minority Depository Institutions Program. Enhancements to the program include increased communication with Minority Depository Institutions, better coordination with trade associations that represent Minority Depository Institutions, defined roles of a national program coordinator and regional coordinators, and more opportunities for institutions to request technical assistance. 6/13/02

• FFIEC Updates Reporting Forms

  The FFIEC has updated two Reporting Forms for June 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices. FFIEC 031, FFIEC 041 6/12/02

• FFIEC Reports that the March 31, 2002 Uniform Bank Performance Report are Online

  The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release 6/12/02

• FATF to Publish Annual Report and Report on Non-Cooperative Countries and Territories

  The Financial Action Task Force on Money Laundering (FATF), will issue its thirteenth annual report on its anti-money laundering and anti-terrorist financing activities as well as a new report updating its findings on the non-cooperative countries and territories in the international fight against money laundering. FATF Press Release 6/12/02

• Chairman Details Progress Made in Implementing The Federal Trade Commission's New Privacy Agenda

  Remarks Presented at the Networked Economy Summit in Reston, Virginia
  Presenting remarks titled "Protecting Consumers' Privacy: Goals and Accomplishments" at the Networked Economy Summit in Reston, Virginia, Federal Trade Commission Chairman Timothy J. Muris said that the FTC has made significant strides in implementing the Privacy Agenda announced last October, and pledged continued diligence to ensure that consumers are protected as the "information economy" grows more complex. FTC Press Release 6/12/02

• OCC Issues Bulletin on Reg Z Final Rule

  As earlier announced by the Federal Reserve, the revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. OCC 2002-26, Final Rule 6/11/02

• OFAC

  Yesterdays OFAC change should not affect banks. It has simply issued License Application Guidelines for specific licenses for travel to Cuba to engage in educational exchanges not pursuant to a degree program. OFAC 6/11/02

• OTS Issues Proposed Rule for Recordkeeping and Confirmation Requirements that Effect Securities Transactions

  The proposal affords savings association customers the same protections and disclosures provided to bank customers; ensures that examiners will be able to evaluate a savings association's compliance with securities laws and to assess whether savings associations effect securities transactions safely and soundly; and provides savings associations with formal guidance for effecting securities transactions. 67FR39886 (text) 6/11/02

• OTS Proposes Standards for Thrift Broker-Dealer Activities Without SEC Registration

  The OTS is proposing standards for federal savings associations that may now perform certain broker-dealer activities, just like banks, without registering with the Securities and Exchange Commission. OTS 02-29 6/11/02

• OCC Notes FinCEN's Country Updates

  The OCC has issued AL 2002-5 to advise banks of a revision in the list of countries detailed in a previous OCC Advisory Letter (AL 2002-2). These deal with identification of countries with serious deficiencies in their counter-money-launder systems, as previously identified by FinCEN advisories. OCC: AL 2002-5 6/10/02

• FR-FMS Account Management Guide Revised

  The Federal Reserve Financial Management Service has revised its account management guide. It is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. Account Management Guide 6/10/02

• FDIC Points to FATF Guidance

  The FDIC has published FIL-59-2002 to alert banks to guidance on detecting terrorist financing recently published by the Financial Action Task Force on Money Laundering (and previously noted on BOL). FDIC:FIL-59-2002 6/10/02

• Exception Fax Forms

  The Federal Reserves Financial Services publishes ACH Return Item Exception Fax Form. 6/10/02

• Virginia Woman Indicted in Scheme to Steal Keystone Assets

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that Norma Faye Canipe of Virginia was indicted on June 5 in the Southern District of West Virginia, Charleston, West Virginia, in connection with a scheme to obtain property and other assets owned by Terry L. Church and her family. Church is the former Vice President of the failed First National Bank of Keystone, Keystone, West Virginia. FDIC:PR-65-2002 6/10/02

• FedWire Security Services Enchanced Functionality

  The implementation of Repo Tracking and Interim Accounting cash adjustments will not begin in June 2002, as previously announced. However, participants may continue to test Interim Accounting and Repo Tracking in the Depository Institution Testing (DIT) environment. FedLine 6/10/02

• Fed Announces FedImage Services

  The Federal Reserve announced FedImage Services, an all-new image service for financial institutions, recognizing the increasing role that image-based services are playing in the evolution of the U.S. payments system and the migration toward more electronic payments. FedImage Services 6/10/02

• FDIC Imposes Civil Money Penalties Against Five Ohio Bankers

  The FDIC has issued civil money penalties totaling $17,000 against five directors and officers of The Monitor Bank, Big Prairie, Ohio. FDIC:PR-64-2002 6/7/02

• OCC Speeches

  Mark A. Nishan, Chief of Staff, Office of the Comptroller of the Currency, Before a Bankers Outreach Meeting Minneapolis, Minnesota, NR 2002- 50 Remarks by John D. Hawke, Jr., Comptroller of the Currency, Before The Risk Management Association's Capital Management Conference Washington, D.C. , OCC: NR 2002- 49 6/7/02

• HUD Notice Clarifies Applicability of Homeownership Counseling Requirement

  In Mortgagee Letter 2002-12, the Department of Housing and Urban Development describes the braod scope of the types of loans to which the homeownership counseling notices apply. Mortgagee Letter 2002-12 6/6/02

• Agencies Amend Rule On Prohibition Against Using Interstate Branches Primarily for Deposit Production

  The Riegle-Neal Interstate Banking and Branching Efficiency Act prohibits any bank from establishing or acquiring a branch outside of its home state primarily for the purpose of deposit production. Section 106 of the Gramm-Leach-Bliley Act expands this prohibition to include any branch of a bank controlled by an out-of-state bank holding company. To conform their regulations to this statutory change, the agencies have amended their rules so that the prohibition against deposit production offices also applies to any bank or branch of a bank controlled by an out-of-state bank holding company. Joint Final Rule FRB Press Release, OCC:NR 2002- 47, FDIC-PR-63-2002, FDIC:FIL-58-2002 67FR38844 (pdf) 67FR38844 (txt) 6/6/02

• OCC Reports Bank Trading Revenues Over $3 Billion

  Earnings from cash instruments and derivatives trading activities at U.S. commercial banks grew to $3.1 billion in the first quarter 2002, an increase of $492 million from the previous quarter. The notional amount of derivatives grew by $946 billion this quarter to $46.3 trillion. OCC:NR 2002- 48, Bank Derivatives Report 6/6/02

• 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 2002. FDIC:PR-62-2002 6/6/02

• Call and Thrift Financial Reports

  The March 31, 2002, reports are now posted online. 6/5/02

• FDIC Consumer News

  Tips on banking long distance, saving for retirement and tracing old bank accounts are featured in the latest edition of Consumer News. 6/5/02

• Makes Public April Enforcement Actions; No Administrative Hearings Scheduled

  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-61-2002 6/5/02

• FDIC Announces Record Banking Industry Earnings; Returns at Large Banks Climb Most

  Commercial banks had record earnings of $21.7 billion in the first quarter, surpassing the previous quarterly record by 9.6 percent, the Federal Deposit Insurance Corporation reported today. The industry's return on assets (ROA), a basic yardstick of earnings performance, rose to 1.33 percent, the third-highest ever. FDIC:PR-60-2002 6/5/02

• CAC Schedules Next Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, June 27. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. FRB Press Release 6/4/02

• OCC Issues Bulletin on Independent Trust Bank Assessment

  Pursuant to newly revised 12 CFR 8.6(c), the independent trust bank assessment is based on "Fiduciary and Related
  Assets" as reported on Schedule RC-T of FFIEC Forms 031 and 041. OCC 2002-25 6/4/02

• FDIC Issues Preliminary Bank Earnings Report

  Wider net interest margins at large banks, combined with slow growth in noninterest expenses, helped propel commercial bank profits to a record $21.7 billion in the first quarter. Bank Earnings Report, FYI 6/4/02

• FinCEN Holds Law Enforcement Seminar on Informal Value Transfer Systems

  A seminar to discuss issues surrounding informal value transfer systems, to include hawala, was held May 29thy at the FinCEN. The seminar was attended by over 50 representatives from the law enforcement community. FinCEN News Release 6/4/02

• Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

  FinCEN publishes the Due Diligence Anti-Money Laundering Programs for Certain Foreign Accounts Implementing Section 312 of the USA PATRIOT ACT. This was earlier announced on BOL. Proposed Rule 6/4/02

• "Touring the Board" added to the FRB Web Site

  The site provides information about visiting the Federal Reserve in person and includes a "virtual tour" offering photos of the Board's buildings and art collection, as well as an architectural history of the Board's Eccles Building. FRB Press Release 6/4/02

• FFIEC Releases UBPR Schedule

  The FFIEC has announced that UBPR's will be available online 30 days after an institution's call report is filed. For the call reports which were due 4/30/02, UBPRs are available online beginning June 5. FFIEC Press Release 6/3/02

• OFAC Lists Changes

  OFAC has added new entities to its list, removed one entity, and revised the entry for another. BOL OFAC PAGE 6/3/02

• FATF Releases Public Consultation Paper on the Review of the Forty Recommendations

  The FATF is consulting all interested parties during its review of the Forty Recommendations on money laundering – the global anti-money laundering standard – to ensure that the Recommendations adequately address the changes in money laundering
  techniques and trends, new international developments, and other factors. FATF Press Release 6/3/02

• 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 2002. FDIC:PR-59-2002 6/3/02

• OCC Issues Final Rule on Assessment of Fees

  As earlier published in the Federal Register and reported by BOL, the final rule updates section 8.6 to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form
  currently referenced in section 8.6(c). OCC: 2002-24 6/3/02

• TO ACCESS PRIOR TOP STORIES

  To access previous Top Stories (such as the ones from May, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

The Federal Emergency Management Agency (FEMA) has published a notice [79 FR 6833] of its intent to suspend certain communities in Alaska, California, Florida, Georgia, Indiana, Oregon, Texas and Wisconsin from participation in the National Flood Insurance Program, because of their noncompliance with the floodplain management requirements of the program. The suspensions will be effective March 17, 2014, unless FEMA receives documentation of a community's corrective action.

The Federal Emergency Management Agency (FEMA) has published a notice [79 FR 6833] of its intent to suspend certain communities in Alaska, California, Florida, Georgia, Indiana, Oregon, Texas and Wisconsin from participation in the National Flood Insurance Program, because of their noncompliance with the floodplain management requirements of the program. The suspensions will be effective March 17, 2014, unless FEMA receives documentation of a community's corrective action.

• Unfair or Deceptive Acts or Practices: Applicability of the Federal Trade Commission Act

  The federal banking agencies are legally authorized to use enforcement powers under section 8 of the Federal Deposit Insurance Act against violations of this prohibition. FDIC:FIL-57-2002, FRB Press Release 5/31/02

• Financial Transparency and Regulatory Policy

  Financial transparency is of vital importance to market participants and regulators alike. The FDIC's mission to promote public confidence in the U.S. banking system gives it a shared responsibility for defining the rules of the road in the financial marketplace. To that end, the FDIC is hosting a June 4 symposium entitled Enhancing Financial Transparency where the nation's leading experts from the private and public sectors will address the issue from the perspective of financial analysis, accounting standards, and regulatory policy. FYI 5/31/02

• OCC Issues Third Quarter 2002 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the third quarter of 2002. OCC:NR 2002- 46 5/31/02

• FRB Approves proposal of JPMorgan Chase Bank

  The Federal Reserve Board announced its approval of the notice by JPMorgan Chase Bank, New York, New York, to establish a branch at the Newport Center, 575 Washington Boulevard, Jersey City, New Jersey. FRB Press Release 5/31/02

• OFAC List Changes

  OFAC has made a change but it simply consists of an update to its list of authorized service providers under the Cuban Assets Control Regulations. BOL OFAC Page 5/30/02

• FinCEN Launches E-Filing System

  FinCEN announced that it has begun its pilot testing of the Patriot Act Communications System (PACS).PACS is designed to allow participating financial institutions to quickly and securely file Bank Secrecy Act (BSA)reports over the Internet. FinCEN News Release 5/30/02

• OCC Issues Final Rule on Fees Assessment

  The OCC is amending its regulation that addresses assessments for independent trust banks. The final rule updates the regulation to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form currently referenced in the regulation. 67FR37664 (text), 67FR37664 5/30/02

• OTS Reports Record Quarterly Earnings, Profitability for Thrift Industry

  The OTS reported record thrift industry quarterly earnings of $3 billion for the first quarter of 2002. OTS 02-27 5/30/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 26), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-55-2002 5/30/02

• Summary of Deposits Survey for June 30, 2002

  The annual Summary of Deposits (SOD) survey and instructions for the period ending June 30, 2002, will be mailed on July 8 to institutions with more than a main office facility. FDIC:FIL-56-2002 5/30/02

• Mississippi Housing Initiative Adopts FDIC "Money Smart" Program

  The FDIC and the Mississippi Housing Initiative (MHI) announced the adoption of the FDIC's "Money Smart" financial education program to supplement the current homeownership curriculum used by MHI's Mississippi Home Buyer Education Center (MHEC) Program. FDIC:PR-58-2002 5/30/02

• Court Shuts down Cyberscam Permanently

  A U.S. District Court has ordered the perpetrator of an Internet scheme to halt his illegal practices. The defendant employed more than 5,500 copycat Web addresses to divert surfers from their intended Internet destinations to one of his sites, and hold them captive while he pelted their screens with a barrage of adult-oriented ads. FTC Press Release Related BOL Article 5/29/02

• FDIC Celebrates National NeighborWorks® Week

  June 1 - 8: The FDIC, a Neighborhood Reinvestment Corporation member, celebrates a week of neighborhood change. National NeighborWorks® Week 5/29/02

• Interagency Questions and Answers on the Capital Treatment of Recourse, Direct Credit Substitutes, and Residual Interests in Asset Securitizations

  The document clarifies several issues arising from the agencies' final rule on the capital treatment of these exposures. FDIC:FIL-54-2002 , OCC 2002-22, OTS CEO Ltr 162, Questions & Answers 5/28/02

• FRB Issues Proposed Rule to Restructuring Credit Programs

  This proposed restructuring of Federal Reserve credit programs is designed to improve the functioning of the discount window and does not represent a change in the stance of monetary policy. The proposed rule also would reorganize and streamline existing provisions of Regulation A. 67FR36544 5/28/02

• Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

  The Treasury Department issued a proposed rule implementing Section 312 of the USA PATRIOT Act. Section 312 requires certain U.S. financial institutions to take prescribed anti-money laundering measures with respect to correspondent and private banking accounts that they establish or maintain for non-U.S. persons. Treasury:PO-3125 5/24/02

• Interagency Advisory on the Unsafe and Unsound Use of Covenants Tied to Supervisory Actions in Securitization Documents

  This advisory alerts both bankers and examiners to the safety and soundness implications of covenants associated with supervisory actions in securitization documents. FDIC:FIL-53-2002, OCC 2002-21, OTS:CEO Ltr 161 5/24/02

• Interagency Guidance on Implicit Recourse in Asset Securitizations

  The guidance highlights the agencies' fundamental concern that implicit recourse may expose a bank's earnings and capital to potential losses. The guidance sets forth a range of supervisory actions that may be taken against a bank that provides implicit support to its securitizations. FDIC:FIL-52-2002, OCC 2002-20, OTS:CEO Ltr 163 5/24/02

• OCC Cautions National Banks on "Yield Chasing"

  The OCC issued guidance alerting national banks to the potential risk to future earnings and capital that arises when banks engage in "yield chasing" - taking on higher levels of credit, interest rate and liquidity risk to boost returns on their investment portfolios. OCC:NR 2002- 45 5/24/02

• 2003 FFIEC Examiner Education Course Catalogue

  5/24/02

• FDIC Publishes Bank Trends

  FYI 5/24/02

• FTC Issues Information Safeguards Rule

  The FTC has published in the federal register the final rule governing the safeguarding of customer records and information for the financial institutions subject to its jurisdiction. This was previously announced on BOL. 67FR36483 (text) 67FR36483 (pdf) 5/24/02

• Account Management Guide

  This Guide is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. The Guide assumes a familiarity with accounting practice and provides a detailed discussion of each major aspect of reserve management, together with descriptions and samples of the reports and other information tools available from the Federal Reserve System. Account Management Guide 5/23/02

• FFIEC Internet Reporting System

  The system now offers the following aggregate reports: List of Banks in Peer Group, Peer Group Data Report, Peer Group Distribution Report, State Average Report, and State Average Distribution Report. Internet Reporting System 5/23/02

• Preliminary Bank Earnings Report

  At a June 3 press briefing, the FDIC Chairman will summarize the Preliminary Bank Earnings Report for the first quarter 2001. This Report is the earliest comprehensive analysis of the commercial banking industry's performance, based on the quarterly data that banks file with the FDIC. 5/23/02

• 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-56-2002 5/23/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-51-2002 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-51-2002 5/23/02

• FDIC Issues Alert/Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Yukon National Bank, Yukon, Oklahoma, are in circulation. The bank's name is misspelled as "Yunkon National Bank" in the lower left corner of the counterfeit instruments, and the check number, routing number and account number appear to be typewritten and not MICR encoded. FDIC:FIL-50-2002 5/23/02

• FDIC Issues Special Alert/Counterfeit South Carolina Driver's Licenses and Identification Cards

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of equipment and supplies used to produce driver's licenses and identification cards. The equipment and supplies were stolen from two offices of the South Carolina Department of Public Safety on March 12, 2002, and March 25, 2002. The equipment has been recovered and the suspect has been arrested. However, it is believed that a number of counterfeit South Carolina driver's licenses and identification cards were produced. FDIC:FIL-49-2002 5/23/02

• Chairman Powell's Statement on Passage of Deposit Insurance Reform Legislation By House of Representatives

  FDIC:PR-57-2002 5/23/02

• FDIC and White House Office Sign Agreement Promoting Financial Education in U.S. Asian Communities

  Under an agreement the AAPI will support the FDIC's "Money Smart" financial education program and encourage its network of organizations to implement the curriculum in Asian communities. FDIC:PR-55-2002 5/22/02

• "Prime Bank" and Other Financial Instrument Fraud Schemes

  The FRB alerted financial institutions and the public to the continued proliferation of fraudulent schemes involving financial instruments. FRB Press Release
  5/21/02

• FDIC Lines Up Policy Leaders for June 4 Symposium on Enhancing Financial Transparency

  Lawrence B. Lindsey, Assistant to the President for Economic Policy; Sen. Jon Corzine, (D.-N.J.); Rep. Michael Oxley (R-OH), Chairman of the House Financial Services Committee; and Paul A. Volcker, former Chairman of the Federal Reserve Board, will share their perspectives on financial transparency at a one-day program sponsored by the Federal Deposit Insurance Corporation (FDIC) in Washington, D.C., on June 4, 2002. FDIC:PR-54-2002 5/21/02

• Interagency Advisory on the Regulatory Capital Treatment of Accrued Interest Receivable Related to Credit Card Securitizations

  The agencies are issuing this advisory to clarify the appropriate risk-based capital treatment for banking organizations (institutions) that securitize credit card receivables and record an on-balance sheet asset commonly referred to as an Accrued Interest Receivable. OCC 2002-17, FDIC:FIL-48-2002, Interagency Advisory on AIR 5/20/02

• FRB Issues Proposal to revise Federal Reserve discount window programs

  The FRB requested public comment on a proposal to revise the Federal Reserve's discount window programs, which provide credit to help depository institutions meet temporary liquidity needs. Adoption of the proposal would not entail a change in the stance of monetary policy. The Federal Open Market Committee's target for the federal funds rate would not change as a result of this proposal and the level of market rates more generally would be unaffected. FRB Press Release 5/20/02

• OCC Announces New Electronic Interpretations and Actions

  Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 5/20/02

• OCC Transmits the FATF Terrorist Financing Guide

  As earlier reported on BOL, the Financial Action Task Force on Money Laundering has published Guidance for Financial Institutions in Detecting Terrorist Financing. OCC:AL 2002-4 5/20/02

• FTC Finally Issues Information Safeguards Rule

  The Federal Trade Commission has issued a final rule governing the safeguarding of customer records and information for the financial institutions subject to its jurisdiction. The Rule will be published in the Federal Register shortly. The Rule implements the safeguards provisions of the Gramm-Leach-Bliley Act (GLB Act). FTC Press Release , FTC Business Alert, FTC Final Rule 5/17/02

• FTC to Host Public Workshop on Consumer Information Security

  The FTC will host a two-day public workshop to explore issues related to the security of consumers' computers and the personal information stored in them or in company databases. FTC Press Release 5/17/02

• Regulators Issue Corrected Final Rule for Risk-Based Capital

  The final rule amended the Agencies' risk-based capital standards for banks, bank holding companies, and savings associations with regard to the risk weighting of claims on, and claims guaranteed by, qualifying securities firms. This document clarifies the effective date of the rule, corrects errors made in the Supplementary Information section and in the Board's Regulation Y, and makes technical changes to the footnote numbers in the instructions to and text of the FDIC's Part 325. 67FR34991 (text), 67FR34991 (pdf) 5/17/02

• OCC Issues Final Rule on Electronic Banking

  The OCC published a final rule that will facilitate the use of electronic technologies by national banks, consistent with safety and soundness. OCC:NR 2002- 44, 67FR34992 (text), 67FR34992 (pdf), OCC 2002-23 5/17/02

• Consumer's Guide to Direct Payment

  A new brochure available from the Federal Reserve Financial Services can help you answer questions a consumer may have about direct deposit. Consumer's Guide to Direct Deposit, Press Release 5/17/02

• FRB Publishes Written Agreement with Allied Irish Banks and Allfirst Financial

  The Federal Reserve Board, the Maryland Commissioner of Financial Regulation, and the Central Bank of Ireland jointly announced the execution of a Written Agreement by and among Allied Irish Banks, p.l.c., Dublin, Ireland, Allfirst Financial Inc., Baltimore, Maryland, and Allfirst Bank, Baltimore, Maryland. FRB Press Release 5/17/02

• FDIC Issues Alert on Information About Fraudulent Bonus Checks For Non-Existent Jobs

  On March 28, 2002, the FDIC issued an alert about individuals and banks being victimized by a scheme involving online job applications This is to inform you that the FDIC has received responses to that announcement indicating that more individuals and banks are being victimized by the same scheme, and that checks appearing to be drawn on at least one other bank also are being used. FDIC:FIL-47-2002 5/16/02

• OCC Issues Risk Management Guidance for Banks that Use Foreign-Based Third-Party Service Providers

  The guidance outlines risk management principles to facilitate sound use of foreign-based providers and to ensure that national banks manage these relationships in a safe and sound manner. It also addresses the need for a national bank to establish such relationships in a way that does not diminish the ability of the OCC to access, in a timely manner, data or information needed to effectively supervise the bank's operations. OCC:NR 2002- 43, OCC 2002-16 5/16/02

• OFAC List Changes

  OFAC has made a change but it simply consists of an update to its list of authorized service providers under the Cuban Assets Control Regulations. Another change updates "a.k.a." information that has been added to OFAC's SDN list for a number of SDGTs. BOL OFAC Page 5/16/02

• FDIC Publishes List of Ten Largest Thrift Companies

  The Ten Largest Thrift Companies highlights the performance of the largest thrift companies in the most recently completed quarter. The report is based on earning announcements and other publicly available information and generally is published within 45 days of the completion of a calendar quarter. 5/16/02

• NCUA Board Releases Strategic Plan 2003-2008 As the Agency Plans for the Future

  The plan builds on the foundation laid in NCUA Strategic Plan 2000-2005, which reflected a need to focus more on positioning NCUA as more forward-looking with a vision that is more responsive to the rapidly changing financial marketplace. NCUA Press Release 5/16/02

• OCC Releases CRA Evaluations For 25 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of April 15 through May 14, 2002. OCC:NR 2002-41 5/16/02

• OCC Announces 15 New Enforcement Actions and 1 Terminations

  The OCC announced 15 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 2002-42 5/16/02

• FDIC Issues Interim Rule on Contractor Conflicts of Interest

  This rule establishes standards for independent contractors governing contracting prohibitions, conflicts of interest, ethical responsibilities, confidential information, and reportable information. 67FR34591 5/15/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-46 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-46-2002 5/15/02

• FDIC Issues Final Rule on Payment of Post-insolvency Interest In Receiverships With Surplus
  Funds

  The final rule establishes a single uniform interest rate, calculation method, and payment priority for post-insolvency interest.
  67FR34385 (text) 5/14/02

• IRS Warns of Fake W-8 BEN Forms & More

  The IRS has issued a warning regarding the use by identity thieves of bogus W-8BEN forms and totally fictitious W-888 and W-9095 forms to gain information from bank customers. The thieves send out correspondence that purports to be from a bank. Warnings had previously been issued by some of the bank regulators on the W-9095 form scam and some ficitious fraud questionnaires. IRS:IR-2002-55 5/10/02

• FRB and SEC Publish White Paper on Potential Structural Change in the Settlement of Government Securities
  

  The paper, to be published May 13 in the Federal Register, was developed with a goal of identifying issues and questions that need to be further explored. In releasing the paper, the staffs of the agencies emphasized they have not concluded that any of the approaches discussed represent an improvement over current arrangements or that structural change is necessary. FRB Press Release 5/10/02

• Anthrax Tested at the FRB

  Mail processed in a secure facility outside the Federal Reserve Board buildings has tested positive for traces of anthrax DNA. FRB Press Release

  • Mail Tests Positive for Anthrax DNA at Federal Reserve
  • FRB Press Release -- Fed tests positive for Anthrax
  • Fed mail shows anthrax

  5/10/02

• Comptroller Welcomes Growing Consensus that Fee Disparity Problem Must Be Fixed

  Basic flaws in the allocation of bank supervision costs are a threat to the independence of bank supervisors and to
  the dual banking system, Comptroller of the Currency John D. Hawke Jr. said. OCC:NR 2002-40 5/10/02

• OTS Adjusts Capital Requirements For 1-4 Family Mortgages

  The OTS announced that it is adjusting its capital requirements to bring them in line with the other federal banking agencies. Under a final rule, a one- to four-family residential first mortgage loan will qualify for 50 percent risk weight capital treatment if the loan is underwritten in accordance with prudent underwriting standards, including standards in the Interagency Guidelines for Real Estate Lending. 67FR31722 (text) 67FR31722 (pdf) OTS 02-26 5/10/02

• FFIEC 001 and FFIEC 006 Reporting Forms have been discontinued

  FFIEC 001 - Annual Report of Trust Assets | FFIEC 006 - Annual Report of International Fiduciary Activities 5/10/02

• Delay of Reg C Amendments Officially Published

  It's official. The FRB's final rule that postpones the effective date of the recent amendments to Regulation C (HMDA) from January 1, 2003, to January 1, 2004 has now been published in the Federal Register. (The FRB's informal notice of the delay was announced last week on BankersOnline.com.) 67FR30771 (text) 67FR30771 (pdf) 5/9/02

• OCC Issues Alert on Fictitious Bank Correspondence and Fraud Reporting Forms

  Some of your customers may be the unwitting subjects of another recently discovered fraud scheme that uses fictitious bank forms and fraudulent bank correspondence. The OCC has provided samples of fictitious documents (addressed to a bank customer) that purport to be from the fraud control department of the customer's bank. OCC:Alert 2002-6

  • Fictitious bank correspondence that purports to be from the customer's bank
  • Fictitious fraud questionnaire that purports to be from the customer's bank
  • Fictitious return envelope that purports to direct contents to a legitimate clearinghouse

  5/9/02

• Timothy W. Long Appointed Senior Deputy Comptroller for Mid-Size/Community Bank Supervision

  Comptroller of the Currency John D. Hawke, Jr. announced the appointment of Timothy W. Long as the agency's new Senior Deputy Comptroller for Mid-Size/Community Bank Supervision. In his new position, he will have responsibility for the supervision of the vast majority of national banks and oversee half the OCC workforce. OCC:NR 2002-39 5/9/02

• FDIC Enters into Removal and Prohibition Order and Civil Money Penalty Against an Illinois Banker

  The FDIC has issued a removal and prohibition order and imposed a civil money penalty of $25,000 against John C. Bollman, formerly of the Lena State Bank, Lena, Illinois. Mr. Bollman was the former President and Chairman of the Board of the bank. FDIC:PR-53-2002 5/9/02

• FDIC Reports First Quarter Net Income Rises Sharply, Sets Record at 25 Largest Banking Companies

  Amid signs of resurgence in the U.S. economy, earnings at the 25 largest banking companies grew significantly in the first quarter of 2002 - up $4.8 billion from the fourth quarter of 2001. Net income for the first quarter totaled $16.2 billion, surpassing the $15.8 billion mark set in the first quarter of 2000. FDIC:PR-52-2002 FYI 5/9/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization
  

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published an issue of its "Warning Notice" (Issues No. 23, 24 and 25), which contain the names of entities recently brought to OSFI's attention through inquiries or complaints. FDIC:FIL-44-2002 5/9/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Cambridge Bank, Lake Zurich, Illinois, are in circulation.
  FDIC:FIL-45-2002 5/9/02

• FDIC Issues FIL on Homeownership Counseling Notification Requirements

  The FDIC is advising banks that the VA/FHA Appropriations Act, signed into law on November 26, 2001, reinstates a requirement for creditors to notify delinquent mortgage borrowers of the availability of homeownership counseling. FDIC:FIL-43-2002 5/8/02

• FFIEC Updates Forms

  The FFIEC has updated the following forms: FFIEC 002, FFIEC 002s, FFIEC 019. 5/8/02

• FDIC Reports Year-End 2001 and First Quarter 2002 Financial Results for Its Insurance Funds

  The FDIC announced that the Bank Insurance Fund (BIF) reported a comprehensive loss (net loss plus current period unrealized gains/losses on available-for-sale securities) of $536 million for 2001, compared to income of $1.6 billion for the same period last year. FDIC:PR-51-2002 5/8/02

• FOMC Leaves Interest Rates Unchanged

  The FOMC decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. Press Release 5/8/02

• OCC Alerts Banks of Colorado stolen birth and death certificates

  On April 9, the City and County of Denver Vital Records Office was robbed of over 2,300 sheets of preprinted security paper that can be used to create birth and death certificates. In addition, the electronic seal machine that produces an embossed seal of the City and County of Denver was stolen. OCC:Alert 2002-5 5/8/02

• IRS Warns of Scheme to Steal Identity and Financial Data

  The IRS warned of a fraudulent scheme currently circulating that uses fictitious bank correspondence and IRS forms in an attempt to trick taxpayers into disclosing their personal and banking data. The information fraudulently obtained is then used to steal the taxpayer's identity and bank account deposits. Release No: IR-2002-55 5/6/02

• FTC Submit Second Annual Report to Congress on the GLBA

  In accordance with the reporting provisions of the Gramm-Leach-Bliley Act, the Commission has submitted its second annual report to Congress on the number and disposition of enforcement actions taken pursuant to Section 521 of the Act. Since submission of the first report, the FTC has filed complaints against three defendants allegedly engaged in, or soliciting others to engage in, "pretexting" - obtaining a consumer's financial information from financial institutions under false pretenses. FTC Release 5/6/02

• Matz Urges Credit Unions to Look to the Future

  NCUA Board Member Deborah Matz urged the Government Affairs Conference of the Michigan Credit Union League to be prepared. Meeting with the Michigan League is part of Matz’ national tour to familiarize herself with the needs of credit unions and learn how NCUA can further serve in the credit union spirit of people helping people. NCUA Press Release 5/6/02

• FRB Postpones Effective Date for Recent Reg C Amendments BIG NEWS!

  The FRB approved a final rule that postpones the effective date of the recent amendments to Regulation C (Home Mortgage Disclosure Act) from January 1, 2003, to January 1, 2004. The FRB is, however, adopting an interim amendment to Regulation C, effective January 1, 2003, mandating the use of 2000 census data in HMDA reporting. FRB Press Release, Notice 67FR30771 (text) 5/3/02

• Treasury Publishes USA PATRIOT Act Report to Congress

  The Treasury Department has published a number of reports to Congress that it was required to make under Sections 357 and 361 of the USA PATRIOT Act. 5/3/02

• FATF Releases Terrorist Financing Guide

  The Financial Action Task Force on Money Laundering has published Guidance for Financial Institutions in Detecting Terrorist Financing. 5/3/02

• FedACH System Quality and Volume Statistics Published

  The Federal Reserve Financial Services published a chart that provides performance measures for FedACHSM for 2002 (through first quarter). 5/3/02

• FDIC Report Risks in Banks' Underwriting Practices, Loan Portfolios and Loan Administration Continue to Increase Slightly

  FDIC examiners continue to report slight increases in risks in FDIC-supervised banks' underwriting practices, loan portfolios and in the way loans are administered, according to the agency's latest Report on Underwriting Practices, which covers the six months ending March 31, 2002. FDIC:PR-49-2002 5/3/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on the Foster Bank, Chicago, Illinois, are in circulation. FDIC:FIL-42-2002 5/3/02

• FDIC Issues Alert on Stolen Birth Certificate and Death Certificate Forms

  The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of official documents from the Denver County (Colorado) Vital Statistics Office on April 9, 2002. FDIC:FIL-41-2002 5/3/02

• BOL Adds Special PATRIOT Act Section

  BankersOnline has added a new section to the site to bring together articles, resources, tools and links on matters relating to the USA PATRIOT Act, anti-terrorism, anti-money laundering, customer identification, OFAC, Control list issues, and similar subjects. NEW PATRIOT/AML Section 5/2/02

• FDIC Posts Notice of Agency Meeting

  The FDIC Board of Directors will meet in open session on May 7, 2002. Notice 5/2/02

• Forms Used by the FDIC

  Forms and instructions used in connection with applications, reports, and other submittals used by the FDIC. 5/2/02

• FDIC Seeks Comment on Information Quality Guidelines

  The FDIC is requesting comment on in its Information Quality Guidelines, which relate to ensuring and maximizing the quality, objectivity, utility, and integrity of information disseminated to the public by the FDIC. Electronic Public Comment 5/2/02

• FIL about OFAC Change

  The FDIC has published FIL-40 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-40-2002 5/1/02

• OTS Signs Information Sharing Pact With Oregon Insurance Regulator

  Oregon became the 45th state during the last two years to sign an information sharing agreement between state insurance regulators and the OTS, and the National Association of Insurance Commissioners (NAIC) announced. OTS 02-24 5/1/02

• OTS Releases March Enforcement Statistics

  The OTS reported that it issued six enforcement orders to three individuals and three institutions during March 2002. OTS also terminated two orders previously issued to two institutions. OTS 02-25 5/1/02

The Fed has released the January 2014 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices.

The Fed has released the January 2014 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices.

• Treasury Report to Congress on FBAR Reporting

  As required by Section 361(b) of the USA PATRIOT Act, the Treasury Department filed a report with Congress about FBAR reporting. The FBAR is a report filed with the Secretary stating that the person filing has a financial interest in, or signature authority over, financial accounts in a foreign country with an aggregate value exceeding $10,000 at any time during the calendar year. Treasury News 4/29/02

• FTC Members Express Views about Online Personal Privacy Act

  Members of the Federal Trade Commission have submitted letters to regarding their views on the Online Personal Privacy Act, at the request of Senator John McCain. FTC 4/29/02

• OCC Issues Alert on Identity Theft and Embezzlement in connection with Outside Parties

  The OCC has been advised of fraud schemes involving organized gangs and newly hired bank tellers. OCC:Alert 2002-4 4/26/02

• FDIC Issues Alert on Bank Investment Securities and Custodial Accounts Held at Securities Broker-Dealers

  The FDIC is alerting you to concerns it has identified regarding bank custodial relationships with failed broker-dealers. These concerns have arisen following the failure of a large regional securities broker-dealer and its liquidation by the Securities Investor Protection Corporation (SIPC). FDIC:FIL-38-2002 4/26/02

• OTS Releases February Enforcement Statistics

  The OTS reported that it issued four enforcement orders to two individuals and two institutions during the month of February, 2002. OTS also terminated four orders previously issued to three institutions. OTS 02-23 4/26/02

• FDIC Report Discusses Challenges Bank Mortgage Lenders May Face If Interest Rates Rise

  The profitability of the nation's residential mortgage lending specialists has become more exposed to the effects of a rising interest rate scenario that would compress net interest margins and suppress noninterest revenues associated with mortgage production and sales, according to a report released by the FDIC. FDIC:PR-47-2002 4/26/02

• OTS Proposes Rule on a Preemption of the Alternative Mortgage Transaction Parity Act

  OTS proposes to revise its rule identifying the OTS regulations that apply to creditors under the Parity Act. OTS would no longer identify its regulations on prepayment and late charges for state housing creditors. 67FR20468 (text) 4/26/02

• OCC Proposes to Amend Assessments for Independent Trust Banks

  The proposal would update the regulation to reference the appropriate portion of new forms issued by the FFIEC which replace the FFIEC form currently referenced in the regulation. OCC 2002-15, 67FR20466 (text), 67FR20466 (pdf) 4/26/02

• FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

  The OCC has advised the FDIC that the following entity may be conducting banking business in the United States without authorization: Chase Trust Bank, 2706 Wisconsin Avenue, Washington, DC FDIC:FIL-37-2002 4/25/02

• FDIC Seeks Ideas on Reducing Burden on Banks and the Public, While Improving the FDIC's Efficiency

  One of the top priorities as Chairman of the Federal Deposit Insurance Corporation is to ensure that the FDIC is as efficient as it can be in its roles as supervisor and insurer of financial institutions. He is particularly interested in ways the FDIC can reduce burden on financial institutions and the public. FDIC:FIL-36-2002 4/25/02

• W3C Approves P3P

  The World Wide Web Consortium (W3C) has formally issued the Platform for Privacy Preferences (P3P) 1.0 as a W3C Recommendation, representing cross-industry agreement on an XML-based language for expressing Web site privacy policies. P3P is designed to help individuals make informed choices by providing a standard, simple, automated way for users to gain more control over the use of personal information on Web sites they visit. Financial institutions will need to consider the P3P implications for their own Web sites. Press Release 4/24/02

• Agencies Outline Risks of Parallel-Owned Banking Organizations

  This guidance describes various risks that may be increased because of the structure of parallel-owned banking organizations, including engaging in transactions that prefer the foreign bank member of the group over the U.S. depository institution. The agencies will address these risks by coordinating their supervision of the U.S. operations of parallel-owned banking organizations. Enhanced communication and cooperation with foreign bank supervisors is also important to this process. FRB Press Release, OCC:NR 2002-37, FDIC-PR-46-2002, Joint Release 4/24/02

• Comptroller Hawke Urges Senate to End Inequitable Treatment of National Banks

  Comptroller of the Currency John D. Hawke, Jr. told a Senate panel that Congress should address the unfair disparity in the fees paid by national and state chartered banks as part of any legislation on deposit insurance reform. OCC:NR 2002-38 4/24/02

• Treasury Department's USA PATRIOT Act Developments

  There are several new developments in the Treasury Department's implementation of the USA PATRIOT Act.

  • No new AML program regs for banks, thrifts and credit unions!
  • New regulations expand the requirement for an anti-money laundering program to new industries: mutual funds; operators of credit card systems; money services businesses, such as money transfer companies and check cashers; securities brokers and dealers registered with the Securities and Exchange Commission; and futures commission merchants and accompanying introducing brokers registered with the Commodity Futures Trading Commission.
  • New regulations are now available for those industries, all of whom have ninety days to develop AML programs (except broker dealers and futures commissions merchants).
  • The Treasury Department will study additional sectors over the next six months, such as loan or finance companies, pawnbrokers, insurance companies, travel agencies, dealers in precious metals, stones or jewels, telegraph companies, persons engaged in real estate closings and settlements, and others, in order to develop regulations applicable to them.
  • Additional working groups devoted to each of these industry sectors have been formed and will be responsible for drafting regulations.

  Click here to learn more about these developments and access the new regulations. 4/24/02

• FTC Extends COPPA Rule

  The FTC issued a final amendment to the Children’s Online Privacy Protection Rule to extend, until April 21, 2005, the time period during which website operators may use an e-mail message from the parent, coupled with additional steps, to obtain verifiable parental consent for the collection of personal information from children for internal use by the website operator. FTC Notice 4/23/02

• FTC Gets Tough on COPPA

  The Federal Trade Commission has announced a number of new initiatives under the Children's Online Privacy Protection Act, including a new enforcement action involving a $35,000 penalty, release of an FTC COPPA compliance survey, and warning letters to more than 50 children's sites. FTC Press Release 4/23/02

• IRS Issues Rule on Required Distributions From Retirement Plans

  IRS has issued both final and temporary regulations relating to required minimum distributions from IRAs, qualified plans, individual retirement plans, 457, and section 403(b) annuity contracts, custodial accounts, and retirement income accounts. The new distribution rules become effective January 1, 2003. 67FR18987 (text) 67FR18987 (pdf) 4/23/02

• OTS Proposes Revisions to Parity Act Regulations

  The OTS announced that it is proposing to remove prepayment and late fee rules from the list of OTS regulations that preempt state law under the Alternative Mortgage Transaction Parity Act. OTS 02-21 4/23/02

• OCC Announces New Electronic Interpretations and Actions

  Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 4/22/02

• Minority Depository Institutions Program

  Minority Depository Institutions often play a unique role in promoting the economic viability of under-served communities. The FDIC has historically taken steps to preserve and encourage minority ownership of insured financial institutions. On April 9, 2002, the FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. Minority Depository Institutions Program, FDIC: FIL-34-2002 4/22/02

• Terrorist Threat Against Banks

  Warning directly affects banks in Virginia, Maryland, Delaware, Pennsylvania, New York, New Jersey, Connecticut, Massachusetts, Rhode Island, Maine, Vermont, New Hampshire and the District of Columbia.

  • FBI Statement
  • FBI: New threat on banks 'unsubstantiated'
  • Terrorists may target U.S. banks
  • Northeast Banks on Terror Alert
  • Feds Received Threats Against Banks
  • Threat Warning
  • FBI Issues Alert of Threats on U.S. Banks
  • U.S. warns of threats to N.E. banks

• NCUA Issues Final Rule Repealing CAP Proposal

  Statement of NCUA Chairman Dennis Dollar: "From my first NCUA Board meeting in October 1997 when we put the initial ‘Community Service Amendments’ out for public comment through the first ‘Community Action Plan’ or ‘CAP’ comment period in 2000 and now through this - the second - official comment period on CAP which ended in February 2002, the commenters have spoken clearly. Statement of NCUA Board Member JoAnn Johnson, Statement of Board Member Deborah Matz 4/19/02

• FDIC Reminds Bankers of the Responsibilities and Activities of FDIC’s Community Affairs Program

  The FDIC established a Community Affairs Program (1990) that advances compliance with the Community Reinvestment Act and the fair lending laws by FDIC-supervised institutions. The FDIC's Division of Compliance and Consumer Affairs administers the program and provides Community Affairs staff to assist lenders and the public. 4/19/02

• FDIC And Operation Hope Sign Mou Agreement Promoting Financial Education In Underserved Communities

  The FDIC and Operation Hope, Inc. announced a pilot program to help strengthen communities across America through financial education. Under an agreement, Operation Hope has adopted the FDIC's "Money Smart" financial literacy program to train high school students and adults in basic money management skills. FDIC:PR-45-2002 4/19/02

• New Data Collection Offers Insight Into Noninterest Income Activity at U.S. Banks

  The FDIC reported new detail on commercial banks' noninterest income, added to their quarterly financial reports in 2001, sheds light on the fastest-growing component of banks' revenues. FDIC:PR-44-2002 4/19/02

• FDIC Chairman Asks for Input on Reducing Regulatory Burden

  The FDIC has established a special group to consider ideas on how to reduce burden on banks and the public and to make the FDIC more efficient. Suggested topics can be transmitted via the FDIC website. FDIC Press Release 4/18/02

• FDIC Chairman Powell's Statement on Passage of Deposit Insurance Reform Legislation by House Financial Services Committee

  The House Committee passed a good bill and we will continue working to pass deposit insurance reform this year." Don Powell, FDIC Chairman. FDIC:PR-43-2002 4/18/02

• $100 Billion Claim Against the Federal Reserve Rejected

  The United States Court of Appeals for the 7th Circuit on April 16, 2002 issued an opinion regarding one of the most ludicrous claims ever to be filed against the Federal Reserve System. The plaintiffs, in the case of Marques v. Federal Reserve Bank of Chicago, claimed to be agents of the owners of $25 billion in bearer bonds issued in 1934 in exchange for 1665 metric tons of gold. The suit sought an order requiring payment of the bonds at face value plus 4% interest for a total claim of $100 billion. Plaintiffs also contended there is an international conspiracy to deny the validity of the bonds. The Court noted there is no record of any such bond issue and the total debt of the U.S. in 1934 was only $28 billion. In addition, the entire stock of U. S. gold in 1934 had a value of $9 billion. The case was dismissed in the lower court upon the government's motion for summary judgment but the judgment was reversed by the Court of Appeals on purely procedural grounds. The plaintiffs were admonished that if a new similar suit were filed, they would be subject to appropriate civil or criminal sanctions. The Treasury has issued a warning regarding similar claims regarding the class of frauds called "Morgenthaus" named after Henry Morgenthaus, Jr. the Secretary of Treasury in 1934. 4/17/02

• FDIC Issues Final Rule Relating to Forms, Instructions, and Reports

  The FDIC is revising its regulation on forms, instructions, and reports to make the information contained in it current. The revised regulation includes current FDIC addresses and websites, and updated descriptions of FDIC forms. 67FR18793 (text) 4/17/02

• OCC Announces 12 New Enforcement Actions and 2 Terminations

  The OCC announced 12 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 2002-36 4/17/02

• OCC Releases CRA Evaluations For 27 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of March 15 through April 14, 2002. OCC:NR 2002-35 4/17/02

• BSA Violations Prove Expensive for PA Bank

  FinCEN has levied civil money penalties of $700,000 against a federally chartered savings bank in Pennsylvania for what it terms a "willful" failure to file Currency Transaction Reports. 4/16/02

• FinCEN Issues New Advisory Newsletters

  The advisories pertain to the following: Burma (Myanmar), Ukraine, Arab Republic of Egypt, Grenada, Federal Republic of Nigeria. The latest FinCEN advisories suggest that financial institutions should give enhanced scrutiny to all financial transactions originating in or routed to or through the affected countries. 4/16/02

• OTS Updates Thrift Holding Companies Handbook

  OTS updated the handbook to reflect its risk-focused approach to holding company examinations. It designates two risk classification categories: low risk or noncomplex, and high risk or complex. OTS 02-020 4/16/02

• FDIC and Neighborhood Reinvestment Corporation Announce Program to Promote Financial Education and Homeownership

  The Neighborhood Reinvestment Corporation will use the FDIC's "Money Smart" financial literacy program to train adult educators and teach money management skills to thousands of people, primarily low-income consumers, minorities or women who are potential homebuyers or existing homeowners having problems making ends meet. FDIC:PR-42-2002 4/16/02

• OFAC Updates Information on its Travel, Carrier, and Remittance Forwarding Service Provider Program

  The Circular summarizes the current regulatory program that permits certain transactions involving property in which Cuba has an interest with respect to the provision of travel services, carrier services and the forwarding of remittances under the Cuban Assets Control Regulations. 4/15/02

• Resumption of Critical Operations

  The OCC has published Discussion Notes and a Meeting Summary from a multi-agency meeting held in February to analyze events in the wake of the September 11 attacks in order to strengthen the resilience of the financial system and share insights about developing more robust business continuity plans. 4/12/02

• New Rule Affects Lockbox Arrangements for Federal Agencies

  If you operate a lockbox for a federal agency, you'll want to read about the revisions to the rule of the Department of the Treasury, Financial Management Service that will permit the conversion of checks to ACH debit entires at federal agency points-of-purchase and at lockbox locations to which payments to agencies are mailed or delivered. 67FR17895 (text) 67FR17895 (pdf) 4/12/02

• New FMS Interim Rule to Reflect NACHA Changes

  The Department of the Treasury, Financial Management Service has issued an interim rule to reflect certain changes NACHA has made to the ACH Rules since the publication of NACHA's 2001 rule book. The interim rule addresses four topics: l) affidavit and electronic communication issues; 2) reinitiation of entries; 3) electronic authorization; and 4) electronic terminals. 67FR17895 (text) 67FR17895 (pdf) 4/12/02

• NCUA Chairman Releases Study On Deposit Insurance Reform Legislation

  NCUA Chairman Dennis Dollar told a group of California and Nevada credit union leaders that a recently completed NCUA study of the potential impact of pending deposit insurance reform legislation shows the likelihood of a premium assessment as minimal, but a strong possibility exists that increasing coverage above $100,000 would reduce the NCUSIF equity ratio enough to require at least two years for the fund ratio to be re-built through earnings sufficiently to again begin paying credit unions a dividend. NCUA Press Release 4/12/02

• OTS Announces 21 March CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in March 2002. OTS 02-18 4/12/02

• Gilleran Announces OTS Restructuring Plans

  OTS Director James E. Gilleran announced today that he has begun implementing a restructuring plan designed to achieve greater operating efficiencies and consistency of regulation for the thrift industry. OTS 02-19 4/12/02

• OCC Chief Counsel Julie L. Williams Underscores Major Increase In the Beneficial Relationships Between Banks and CDCs

  Bank involvement with Community Development Corporations has increased significantly in recent years, Julie L. Williams, First Senior Deputy Comptroller and Chief Counsel, said in a speech. 4/11/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The Federal Deposit Insurance Corporation has learned that counterfeit cashier's checks drawn on three separate financial institutions are in circulation. FDIC:FIL-33-2002 4/11/02

• FDIC FIL about OFAC Change

  The FDIC has published FIL-32 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-32-2002 4/11/02

• FDIC's Credit Card Center Available Online

  The FDIC's Credit Card Center handles consumer complaints and inquiries for all FDIC-regulated Credit Card Specialty Banks. The staff provides an avenue for efficient and effective resolution of consumer complaints or inquiries. 4/11/02

• FRB Issues Final Rule Amending Reg Z Commentary

  The revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. In addition, the revisions provide guidance on disclosing costs for certain credit insurance policies and on the definition of ``business day'' for purposes of the right to rescind certain home-secured loans. 67FR16980 (txt) 67FR16980 (pdf) 4/9/02

• Regulators Issue Final Rule on Risk Based Capital Standards

  This rule amends their risk-based capital standards to permit a zero percent risk weight for certain claims on qualifying securities firms that are collateralized by cash on deposit in the lending institution or by securities issued or guaranteed by the United States or other OECD central governments. 67FR16971 (txt) , 67FR16971 (pdf), FRB Press Release , FDIC-PR-41-2002, FDIC:FIL-31-2002, OCC: NR 2002-33, OTS 02-17, OCC 2002-13 4/9/02

• Gilleran Announces New Proposal for Enhancing the Mutual Thrift Charter

  As part of an on-going, comprehensive review of the treatment of mutual thrifts, the OTS is proposing rule changes governing mutual thrifts, mutual holding companies and mutual-to-stock conversions. OTS 02-16 4/9/02

• Comptroller Outlines the Benefits of Financial Literacy Programs

  Financial education programs can be critical to combating predatory lending, to reaching the unbanked and to meeting the needs of the underbanked, Comptroller of the Currency John D. Hawke said. OCC:NR 2002-32, Speech 4/9/02

• Warning: Bogus Letters with Sham IRS Forms

  Ever heard of an IRS form W-9095? There's no such thing, but con artists are sending them to bank customers -- along with cover letters purporting to be from the bank asking the customer to complete the form (which requests a great deal of sensitive and confidential information) and fax it to a number designated on the letter. If completed and faxed back, the data would make it easy for the thief to commit ID theft. OCC has issued a special warning that includes a copy of the fake form and the bogus letter. Alert those who man the phones at your institution to be especially vigilant about verifying customer identity in the wake of this scam. OCC:Alert 2002-3, Customer Letter, Application Form 4/8/02

• 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 Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in January 2002. FDIC:PR-40-2002 4/8/02

• FR Financial Services Publishes International ACH Service Manual

  The Federal Reserve Financial Services has published a new manual that is intended to assist financial institutions in establishing a Canadian ACH program using the Federal Reserve’s International ACH Service. The manual will provide you with an overview of the service, implementation steps and technical requirements. 4/8/02

• OTS Announces Nine February CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in February 2002. OTS 02-15 4/8/02

• FFIEC Publishes Annual Report

  The Federal Financial Institutions Examination Council has issued its Annual Report for 2001. 4/5/02

• FRB Issues Revisions to Reg Z Commentary

  The commentary revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. In addition, the revisions provide guidance on disclosing costs for certain credit insurance policies and on the definition of "business day" for purposes of the right to rescind certain home-secured loans. FRB Press Release
  4/4/02

• Treasury Extends Public Comment Period on Information-Sharing Study

  The Treasury Department announced the extension of the public comment period from April 1, 2002 to May 1, 2002, for the Study of Information Sharing Practices Among Financial Institutions and Their Affiliates. This study was required by Section 508 of the Gramm-Leach-Bliley Act of 1999. Treasury News 4/4/02

• FDIC Announces Agency Meeting

  The FDIC's Board of Directors will meet in open session at 10:00 a.m. on Tuesday, April 9, 2002. Meeting Notice 4/4/02

• FFIEC Updates Reporting Forms

  The FFIEC has updated two Reporting Forms for March 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices. FFIEC 031, FFIEC 041 4/3/02

• Regulators Distribute Call Report for First Quarter 2002

  Banks should complete your first quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by April 30, 2002. FDIC:FIL-29-2002 4/2/02

• FRB Issues Notice on Derivative Contracts Hedging Trust Preferred Stock

  The Federal Reserve has issued SR 02-10 to express supervisory concerns about certain arrangements under which bank holding companies seeking to hedge the interest rate risk on their issues of trust preferred stock have been offered derivative contracts with terms that have the effect of contravening the strict conditions for the inclusion of the trust preferred stock in tier 1 capital. FRB:SR 02-10 4/1/02

• OCC Informs National Banks of Information Sharing Proposal and Interim Rule

  In OCC Bulletin 2002-12, the OCC transmits to national bank's the treasury department's recent proposed rule and interim rule on information sharing under Section 314(b) of the USA PATRIOT Act. The proposed rule, which was previously written about in Top Stories, has a comment deadline of April 3, 2002. OCC 2002-12 4/1/02

• FDIC Makes Public February Enforcement Actions; Two Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in February. Two administrative hearings are scheduled for April. FDIC:PR-39-2002 4/1/02