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FIL-6-2014 has been issued by the FDIC regarding a final rule requiring municipal advisors to register with the SEC. The FIL applies to any FDIC-supervised financial institution that meets the Dodd-Frank definition of "municipal advisor."

• Fraudulent Bonus Checks For Non-Existent Jobs

  In FIL-30-2002 the FDIC tells of individuals and banks being victimized by a convoluted scheme involving online job applications and checks for "signing bonuses". 3/29/02

• FTC to Announce Formation of NetForce

  On April 2 the FTC will have a press conference to announce the formation of an International NetForce to target deceptive spam and Internet fraud. Details about the press conference. 3/29/02

• FTC Extends Comment Deadline on Changes to Telemarketing Sales Rule

  The Federal Trade Commission announced it has extended the public comment period for proposed changes to its Telemarketing Sales Rule until April 15, 2002 3/29/02

• Michigan Bank Fails; FDIC Approves Payout

  The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of New Century Bank, Shelby Township, MI. The bank was closed today by the Michigan Commissioner of the Office of Financial and Insurance Services, and the FDIC was named receiver. PR-38-2002   Bank Closing Info 3/29/02

• FDIC Report Evaluates Mortgage Lending Changes

  A report released in the FDIC's Regional Outlook evaluates changes in mortgage lending during the economic expansion of the 1990s, and the possibility that weaker home price growth could bring difficulties to home borrowers and their lenders. The report concludes that the risk of significant downward correction in house prices is not geographically widespread, but that some previously booming locations are exhibiting heightened home price risk. PR-37-2002   FDIC's FYI 3/29/02

• The Importance of Managing Outsourcers

  A jury awarded a bank consultant a judgment of $276 million against a bank March 27, 2002 in a case where the consultant reportedly developed online loan application software for the bank and the bank subsequently formed its own subsidiary that allegedly used many of the consultant's methods. By utilizing its own company, the bank allegedly cut the consultant out of the processing fee he would have earned on each online loan application. Look at the news report on the case and consider your own outsourcing arrangements and precautions you should be taking now to avoid future disputes. 3/28/02

• SEC Obtains Emergency Court Orders to Shut Down a Prime Bank Scheme

  The Securities and Exchange Commission obtained emergency court orders to shut down a nationwide, $98 million prime bank scheme and recover victims%™ money. The complaint alleges a team of "facilitators" falsely claimed to investors that their money would be used in Europe to trade financial instruments with top 25% or top 50% banks in a program sponsored by the Federal Reserve and global organizations. However, neither the financial instruments touted by RDI nor the markets on which they purportedly trade exist. SEC Press Release 3/28/02

• FATF Issues Guidance Notes for Recommendations

  The Financial Action Task Force (FATF) on Money Laundering has issued guidance notes for its special recommendations on Terrorist Financing and the Self-Assessment Questionnaire. FATF Guidance Notes 3/27/02

• GLBA Pretexting Case Settled

  Information brokers who allegedly using deception to obtain consumers' confidential financial information have agreed to give up their ill-gotten gains as part of a settlement of Federal Trade Commission charges that their practices violated federal law. The settlements also bars the operators from obtaining or hiring others to obtain consumers' financial information through illegal means or by hiring or contracting with others who use illegal methods to obtain consumers' financial information. The scheme involved the use of Web sites. FTC Release 3/27/02

• Counterfeit Personal Money Orders in Circulation

  FDIC has issued FIL-28-2002 to alert banks that counterfeit personal money orders payable through Bank One, NA, Columbus, Ohio, and Bank of the Bluegrass & Trust Co., Lexington, Kentucky, are in circulation. The account numbers used on the counterfeit items are not the account numbers used by either bank for money orders. Attached for your information are copies of some of the counterfeit instruments. They were received as payment on credit card accounts in an attempt to fraudulently increase credit lines. This information was brought to the attention of FDIC by The New Millennium Bank, New Brunswick, New Jersey. 3/27/02

• FDIC Publicizes Recent OFAC Changes

  In FIL-26-2002 and FIL-27-2002, the FDIC informs state-chartered nonmember banks of the March 11 and March 15 changes made to the OFAC list (which were previously reported on Top Stories). 3/27/02

• Comptroller Hawke Spotlights Benefit of Regulator Independence

  Comptroller of the Currency John D. Hawke, Jr. said today that the banking industry's good health -- and its ability to support the economy as it emerges from economic difficulties -- owes in part to the independence of the bank regulatory agencies. NR 2002-31   Text of Speech(doc file) 3/26/02

• 2002 Annual Performance Plan

  The FDIC's Annual Performance Plan implements the FDIC's strategic goals and objectives by establishing annual performance goals. 3/25/02

• OCC Chief Counsel Julie L. Williams Urges Banks to be Vigilant In Avoiding Unfair and Deceptive Marketing Practices

  New guidance issued by the OCC will help banks maintain high-quality customer service, said Julie L. Williams, the OCC's First Senior Deputy Comptroller and Chief Counsel. The advisory letter on unfair or deceptive acts or practices "is part of our effort to identify potentially problematic practices and provide guidance to national banks on how to avoid them," Ms. Williams said in a speech before a compliance conference sponsored by the Maryland and Delaware banking associations. OCC:NR 2002- 30, Speech 3/25/02

• Reminder of Reg H Prior Approval Requirement for Biz Plan Changes

  The Federal Reserve has issued SR 02-9 to remind state-chartered member banks of the Regulation H requirement that they obtain prior approval of the FRB before making any significant change in business plans. SR 02-9 3/22/02

• OTS Summarizes PATRIOT Act

  A summary of the USA PATRIOT Act has been prepared by the staff of the Office of Thrift Supervision. The 11 page PDF document summaries the provisions which are applicable to thrift operations. OTS PATRIOT Act Summary 3/21/02

• The Yield Spread Premium Soap Opera Continues

  The 8th Circuit Court of Appeals on March 21, 2002, reversed the class certification in the case of Glover v. Standard Federal Bank and Heartland Mortgage. Previously, the district court had created a nationwide class all individuals who obtained a mortgage financed by Standard Federal and brokered by any mortgage broker. The 8th circuit accepts the loan-specific liability test promulgated by HUD, which recognizes that yield spread premiums may legitimately be used as way to finance closing costs. The court therefore holds that a loan-specific analysis is required in order to determine whether the payment of a yield spread premium is based upon services rendered or an illegal referral. Class certification is therefore impracticable. Individual plaintiffs can still sue on an individual basis, but the certification of all the borrowers as a class in this case was improper. Glover v. Standard Federal Bank 3/22/02

• FDIC Reports Weakened U.S. Office Markets Could Decline Further

  The demand for U.S. commercial office space deteriorated significantly in 2001 and conditions could weaken further in some key metro areas in 2002, according to a report released by the FDIC. FDIC:PR-35-2002 3/22/02

• FRB Releases Consumer Guide to Electronic Check Conversions

  The Federal Reserve Board has published a guide to help consumers better understand their rights and responsibilities with regard to electronic check conversion transactions. "When is Your Check Not a Check? Electronic Check Conversion," discusses what electronic check conversion is, how consumers can tell if their check will be electronically converted, some of the differences between a regular check transaction and electronic check conversion, consumers' rights in an electronic check conversion transaction, and what consumers can do if they have problems with such transactions. FRB Press Release Electronic Check Conversion Guide     PDF Version of Guide 3/22/02

• FRB Governor Susan S. Bies Speaks on Community Bank Challenges

  In a speech to the Ohio Bankers Day Conference, Ohio Department of Commerce, FRB Governor Susan S. Bies addressed financial performance of U.S. banks, in particular, of community banks; the improvements that banks large and small are making in measuring and managing risk; and finally, the responsibilities of directors and senior managers in corporate governance. Speech 3/22/02

• FRB Supervisory Letter on Section 327 Implementation

  The FRB has issued SR 02-8 relating to implementation of Section 327 of the USA PATRIOT Act in the applications process. Section 327 of the USA Patriot Act amends the Bank Holding Company Act to require the Federal Reserve to consider the effectiveness of an applicant company in combating money laundering activities, when it acts on an application filed under section 3 of the Bank Holding Company Act or when it acts on an application under the Bank Merger Act. SR 02-8 3/22/02

• Major Predatory Lending Settlement

  The FTC has announced the terms of their largest settlement in a subprime lending case. We've pulled together highlights from the FTC's press conference. Access our article Predatory Lending Practices Result in Large Settlement

  , as well as the FTC press release. 3/22/02

• FTC Testimony on Identity Theft

  The FTC told the Senate Judiciary Committee's Subcommittee on Technology, Terrorism, and Government Information that while there is good reason for consumers to be concerned about falling victim to identity theft, there are "real and positive steps" that can be taken to reduce the incidence of this crime and alleviate the harm to consumers. FTC Press Release 3/21/02

• OTS Will Examine for USA PATRIOT Act Compliance

  OTS and the thrift industry have been working together and along with law enforcement agencies to cut the purse strings of terrorists,% said Director James E. Gilleran. The USA Patriot Act enhanced our ability to cut off the financing of terrorism by strengthening the tools we have to prevent, detect and prosecute international money laundering.% OTS 02-13 3/21/02

• Verifying Customer Identification

  Proposed regulations are expected from Treasury on minimum standards for verifying customer identification under Section 326 of the USA PATRIOT Act. Until then, when verifying identity, keep in mind the ease with which a social security number may have been compromised and look for any evidence that may indicate a SSN is being fraudulently used. The Social Security Act requires state motor vehicle agencies (MVAs) to collect SSNs on drivers license applicants (although it does not require the number to be displayed on the license). A new GAO report mentions deficiencies in MVA protection of social security data. (See p. 14-18 of the GAO Report). Look also at whether similar deficiencies in protecting customer information might exist at your own institution. 3/21/02

• Latest FDIC Survey Finds Continued Slowing In Real Estate Markets

  The latest results of the FDIC's Survey of Real Estate Trends indicated continued deterioration in the nation's property markets during the second half of 2001. Reports of somewhat worsening conditions were significantly higher compared to six months ago for all property markets but were most prevalent for the commercial markets. FDIC:PR-30-2002 3/21/02

• Interagency Statement Regarding Arthur Andersen

  The federal financial institutions supervisory agencies announced that the financial institutions they supervise should follow the guidance issued by the U.S. Securities and Exchange Commission with respect to auditing and accounting work performed by Arthur Andersen LLP. FRB Press Release, OCC:NR 2002-29, FDIC-PR-33-2002 , OTS 02-14 3/20/02

• OCC Releases CRA Evaluations For 29 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of February 15 through March 14, 2002. The list contains only national banks and insured federal branches of foreign banks that have received ratings. OCC:NR 2002-28 3/20/02

• OCC Announces 11 New Enforcement Actions and 1 Terminations

  The OCC announced 11 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- 27 3/20/02

• Fed Leaves Interest Rate Unchanged

  The FOMC decided to keep its target for the federal funds rate unchanged at 1-3/4 percent. FRB Press Release 3/20/02

• OCC Files Notice of Charges Against People's National Bank of Paris, Texas

  The OCC filed a notice of charges against People's National Bank, Paris, Texas, alleging that the bank engaged in unsafe and unsound practices in connection with its high-risk, subprime payday lending operation. OCC:NR 2002- 26 3/19/02

• NCUA Issues Final Rule Concerning Financial and Statistical Reports

  NCUA is revising its rule concerning financial and statistical reports to require all federally-insured credit unions to file
  quarterly Financial and Statistical Reports with NCUA. Currently, only federally-insured credit unions with assets over $50 million must file these reports quarterly. All other federally-insured credit unions are required to file these reports semi-annually. 67FR12459 (text) 3/19/02

• FFIEC Updates Draft Reporting Forms

  The FFIEC has updated two Draft 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 Only). 3/19/02

• OFAC Updates SDN list and OFAC's Terrorism brochure

  OFAC's SDN list and OFAC's Terrorism brochure have been updated to include the information released on Friday, March 15th. OFAC Update 3/19/02

• OCC Concludes that GLBA and Barnett Decision Show Parts of Massachusetts Law do not Apply to National Banks

  The Massachusetts Bankers Association had asked the OCC for an opinion on whether three provisions of a Massachusetts law relating to the sale of insurance by banks apply to national banks. NR 2002-25 3/19/02

• Comptroller Urges Industry to Adapt Technology To Give Low-Income Americans Greater Access to Banking Services

  Low-income Americans constitute a large and potentially important market for financial services providers, and technology gives banks a means to serve that market in a cost-effective way, Comptroller of the Currency John D. Hawke Jr. said. OCC:NR 2002-24, Speech 3/19/02

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-25 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals and Blocked Persons by removing the a Specially Designated Narcotics Trafficker. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-25-2002 3/19/02

• FFIEC Reports that the December 31, 2001 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 3/18/02

• OCC Issues Alert on Suspicious Transactions

  The OCC has been advised by TCF National Bank, Minneapolis, MN, that certain "confirmation of funds" letters, issued from the bank's Arlington Heights Road branch office, were issued without the authority of the bank. OCC:Alert 2002-13/18/02

• OCC Issues Unauthorized Banking Alert

  The OCC has not granted a national bank charter to this entity and the District of Columbia has not granted permission for it to operate a banking business. This entity is not associated with Chase Manhattan Bank of New York or any of Chase Manhattan Bank of New York's subsidiaries or affiliates. OCC:Alert 2002-2 3/18/02

• Treasury Conducts Study of Information Sharing Practices Among Financial Institutions and Their Affiliates

  The Secretary of the Treasury, in conjunction with the federal functional regulatory agencies and the Federal Trade Commission is conducting a study of information sharing by financial institutions. The study is required by section 508 of the Gramm-Leach-Bliley Act of 1999. OCC 2002-113/18/02

• FRB Issues Supervisory Letter on Section 314 of the USA PATRIOT Act

  The SR letter describes a new, immediately effective regulation concerning the sharing of information about terrorist financing and money laundering among financial institutions that was issued by the U.S. Department of the Treasury, through its Financial Crimes Enforcement Network (FinCEN). The FinCEN rule was issued pursuant to section 314(b) of the USA Patriot Act on March 4, 2001. All banking organizations supervised by the Federal Reserve should take whatever steps are necessary to ensure that the appropriate staff learns about its provisions. (The proposal and interim rule were earlier reported on Top Stories when announced and when published.) FRB:SR 02-6 3/18/02

• Treasury Issues Final Rule to Amend the Treasury Tax and Loan Program

  The rule provides the Secretary greater flexibility to adjust the rate of interest charged on funds loaned through the existing TT&L investment option. 67FR11573 (text) 67FR11573 (pdf) 3/15/02

• FDIC Issues FIL on Section 314 of the USA PATRIOT Act

  The FDIC has issued FIL-24-2002 to alert banks to the Treasury Department's proposed rule and interim rule on Information Sharing promulgated under Section 314(b) of the USA PATRIOT Act. (The proposal and interim rule were earlier reported on Top Stories when announced and when published.) FDIC:FIL-24-2002 3/15/02

• FDIC Publishes Consumer News

  This issue features a story on Weathering a financial storm: how to protect yourself and your family. FDIC Consumer News 3/15/02

• Comptroller Hawke Says Industry Still Faces Challenges, But Emerged from Difficulties of 2001 in Good Condition

  Julie L. Williams, Chief Counsel and First Senior Deputy Comptroller for the Office of the Comptroller of the Currency, told a House Financial Services subcommittee that the OCC strongly supports provisions in pending legislation that would eliminate unnecessary regulatory burden on banks. OCC:NR 2002-23, Oral Statement, Testimony 3/15/02

• FDIC Report Shows Insurance Funds Erode In 2001

  Growth of insured deposits and recent increases in the reserves for future losses contributed to a decline in the reserve ratios of the deposit insurance funds in 2001, the Federal Deposit Insurance Corporation (FDIC) reported in the Quarterly Banking Profile. FDIC:PR-32-2002 , FYI 3/14/02

• OTS Director Gilleran Outlines Policy Prescriptions at ACB Conference

  OTS Director James Gilleran highlighted several important policy initiatives facing the thrift industry in remarks before America's Community Bankers in Washington. OTS 02-12 3/14/02

• NCUA Chairman to Testify Before U.S. House of Representatives

  NCUA Chairman Dennis Dollar will testify before a U.S. House of Representatives subcommittee regarding the Financial Services Regulatory Relief Act of 2002, a bill to be introduced. He is scheduled to testify with other federal financial regulators on Thursday, March 14, 2002, at 9:30 a.m. NCUA Press Release 3/13/02

• Federal Banking Regulatory Agencies Jointly Issue Statement on Sound Country Risk Management Practices

  The FDIC, FRB, and OCC have recently agreed on a joint statement addressing "Sound Risk Management Practices" for country risk. The statement describes the elements of an effective country risk management process. FDIC:FIL-23-2002, OCC 2002-10, FDIC:FIL-23-2002, FRB Press Release 3/12/02

• Regulators Issue Common Form for Charter and Federal Deposit Insurance Applications

  Effective immediately, the "Interagency Charter and Federal Deposit Insurance Application" form will be used to apply for a national bank or federal savings association charter and for federal deposit insurance. OCC:NR 2002-22, OTS 02-11, FDIC-PR-31-2002 3/12/02

• Interagency Loan Data Request to Improve the Bank Examination Process

  The federal bank supervisory agencies and the CSBS announced an interagency effort to improve the efficiency of the examination process by standardizing the request for electronic loan information. This information is used primarily to conduct community and mid-size bank safety and soundness examinations and is currently provided in a variety of formats that can be time consuming and costly for regulators, banks and service providers to administer. OCC:NR 2002-21, FDIC-PR-29-2002, FRB Press Release 3/12/02

• Bank Auditing in the Wake of Enron

  FDIC Chairman Don Powell believes financial institution regulators should consider strengthening the ground rules governing bank auditing and accounting. In his most recent speech, he mentions possible reforms and details the authority regulators already have to address auditing conflicts of interest, to mandate the retention of auditing documents, and to enhance sanctions imposed on auditors. FDIC Speech, FDIC:PR-30-2002 , FYI 3/12/02

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-22 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-22-2002 3/8/02

• The FDIC Reports The Effects Of The U.S. Economic Slowdown

  Houston's banks could face a challenging 2002, according to a report released by the FDIC. The latest edition of FYI is the first of a series of profiles that will highlight regional issues facing U.S. banks. FDIC:PR-28-2002
  3/8/02

• Comptroller Hawke Says Industry Still Faces Challenges, But Emerged from Difficulties of 2001 in Good Condition

  Comptroller of the Currency John D. Hawke, Jr. told bankers that the industry emerged from the difficult months of 2001 in far better shape than anyone could have anticipated, but reminded them that many challenges lie ahead. OCC:NR 2002-20, Comptroller's Speech 3/8/02

• OCC Reports Derivatives Volume Falls Below $50 Trillion

  U.S. commercial banks saw earnings from cash instruments and derivatives activities drop $805 million, to $2.65 billion, in the fourth quarter of 2001. OCC:NR 2002-19 Bank Derivatives Report 3/8/02

• OTS Posts 4th Quarter Thrift Industry Data

  The report covers earnings and a range of financial and other data collected from the thrift industry for the period October 1 through December 31, 2001. OTS 02-10 3/7/02

• OCC and ABA Cosponsor Community and Economic Development Conference

  The OCC and ABA will co-sponsor the 2002 National Community and Economic Development Conference titled "Grow Markets....Grow Profits" in Baltimore, Maryland on March 17-19. OCC:NR 2002-18 3/7/02

• FFIEC Releases UBPR Schedule

  The FFIEC has announced that UBPR's will be available online 35 days after an institution's call report is filed. For the call reports which were due 1/31/02, UBPRs are available online beginning March 6. Online UBPR Schedule 2002 Hints For Using The Online UBPR 3/6/02

• NCUA to Participate in HUD Project Focusing on the Colonias Gateway Initiative

  The NCUA will join the United States Department of Housing and Urban Development for a workshop focusing on housing and economic development issues in the Colonias region of the southwestern United States. NCUA Press Release 3/6/02

• FDIC Issues Alert on Counterfeit Official Bank Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Greenfield Banking Company, Greenfield, Indiana, are in circulation. FDIC:FIL-21-2002 3/6/02

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-20 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-20-2002 3/6/02

• FDIC Issues March List of Banks Examined For CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in December 2001. FDIC:PR-27-2002 3/6/02

• OTS Releases January Enforcement Statistics

  The OTS reported that it issued three enforcement orders to two individuals and one institution during the month of January, 2002. OTS also terminated four orders previously issued to three institutions. OTS 02-09 3/5/02

• OTS Announces 93 CRA Exams Scheduled for 2nd Quarter 2002

  The OTS announced that 93 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the second quarter of 2002. OTS 02-08 3/5/02

• OCC Reduces Regulatory Burden for Well-Managed Federal Branches

  The OCC announced that it is implementing more flexible capital equivalency requirements for federal branches of foreign banks to reduce costs for institutions that present low levels of risk. OCC:NR 2002-16 3/5/02

• FRB Issues Supervisory Letter on Capital Rules for Nonfinancial Equity Investments

  As previouly reported in the Federal Register, this rule establishes special minimum regulatory capital requirements for equity investments in nonfinancial companies. This advisory summarizes the key provisions of the new capital rule and attaches the text of the interagency preamble and the rules promulgated by the FRB for state member banks and bank holding companies. FRB Press Release, Jan. 2002 Joint Press Release 3/5/02

• Comptroller Hawke Says Good Progress is Being Made on Capital Accord

  Comptroller of the Currency John D. Hawke, Jr. said that the Basel Committee on Bank Supervision is making good progress toward developing a new capital accord to replace the international agreement that was put in place in 1988, although a number of thorny issues remain to be worked out. OCC: NR 2002-17, Speech 3/5/02

• FinCEN Issues Interim and Proposed Rule on Information Sharing in the Federal Register

  As earlier reported, the proposed rule would authorize the utilization of the FinCEN's existing communication resources to establish a link between federal law enforcement and financial institutions for the purpose of sharing information concerning accounts and transactions that may involve terrorist activity or money laundering. The interim rule will allow certain financial institutions to be able to share information among themselves for the purpose of identifying and reporting suspected terrorism and money laundering once the financial institutions have notified FinCEN that they intend to share such information and that they will take adequate steps to maintain confidentiality. Interim Rule, Proposed Rule 3/4/02

• Call and Thrift Financial Reports

  December 31, 2001, Call Reports and Thrift Financial Reports are now available. 3/4/02

• FDIC Issues Second 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 second quarter of 2002. FDIC:PR-25-2002 3/4/02

• OCC Closes Net First National Bank and Appoints FDIC Receiver

  Net First National Bank, Boca Raton, Florida, was closed by the OCC and the FDIC was appointed receiver. OCC:NR 2002-15 FDIC Approves the Assumption of the Insured Deposits of Net First National Bank, Boca Raton, Florida FDIC:PR-26-2002
  3/4/02

• TO ACCESS PRIOR TOP STORIES

  To access previous Top Stories (such as the ones from February, 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.

• FinCEN Requests Comment on the Exempt Person Form

  FinCEN invites all interested parties to comment on its continuing collection of information through its %˜%˜Designation of Exempt Person%™%™ form that is used by banks and other depository institutions to designate their eligible customers as exempt from the requirement to report transactions in currency over $10,000. 3/1/02

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in January. No administrative hearings are scheduled for March. FDIC:PR-24-2002 3/1/02

• FDIC Announces Loan Problems Grow Even as Commercial Bank Earnings Break Records

  Commercial banks earned a record $74.6 billion in 2001, up $3.5 billion from the record $71.1 billion in industry earnings in 1999, the FDIC reported. FDIC:PR-23-2002 , The FDIC Preliminary Bank Earnings Report Fourth Quarter, 2001
  3/1/02

• OCC Issues Second Quarter 2002 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the second quarter of 2002. OCC:NR 2002-14 3/1/02

• Treasury Announces Regs on Information Sharing

  The Treasury Department has announced its issuance of a proposed rule and a new interim regulation under the USA PATRIOT Act. The proposed rule would authorize the utilization of the FinCEN's existing communication resources to establish a link between federal law enforcement and financial institutions for the purpose of sharing information concerning accounts and transactions that may involve terrorist activity or money laundering. The interim rule, which will become effective upon publication in the Federal Register, will allow certain financial institutions to be able to share information among themselves for the purpose of identifying and reporting suspected terrorism and money laundering once the financial institutions have notified FinCEN that they intend to share such information and that they will take adequate steps to maintain confidentiality. Treasury Announcement 2/28/02

• Treasury Announces Regs on Information Sharing

  The Treasury Department has announced its issuance of a proposed rule and a new interim regulation under the USA PATRIOT Act. The proposed rule would authorize the utilization of the FinCEN's existing communication resources to establish a link between federal law enforcement and financial institutions for the purpose of sharing information concerning accounts and transactions that may involve terrorist activity or money laundering. The interim rule, which will become effective upon publication in the Federal Register

  , will allow certain financial institutions to be able to share information among themselves for the purpose of identifying and reporting suspected terrorism and money laundering once the financial institutions have notified FinCEN that they intend to share such information and that they will take adequate steps to maintain confidentiality. Treasury Announcement 2/28/02

• Updated Notice: FRB Schedules Next CAC Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 14. 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. This notice includes new security clearance procedures and supersedes the release issued February 20, 2002. FRB Press Release 2/28/02

• OTS Director Gilleran Reports Thrifts Reach Record $10.2 Billion in Earnings in 2001

  “Last year was one of the best in the thrift industry's history,” said OTS Director James E. Gilleran. He noted that net income reached an annual record of $10.2 billion in 2001, up 27 percent from $8 billion the prior year. OTS 02-07 2/28/02

• FDIC Alert List Altered

  FDIC has notified banks that it has deleted LiborBank from its list of entities that may be conducting banking operations without authorization. FDIC:FIL-16-2002 2/28/02

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Community Bank of the Cumberlands, Jamestown, Tennessee, are in circulation. FDIC:FIL-15-2002 2/28/02

• FDIC Issues Alert on Stolen Treasurer's Checks

  The FDIC has been informed by the Chittenden Bank, Brattleboro, Vermont, that 1,000 of the bank's treasurer's checks were stolen during a January 31, 2002, robbery of the Berkshire Armored Carrier Facility in Rutland, Vermont. The missing checks are numbered 6153451 through and including 6154450. FDIC:FIL-18-2002 2/28/02

• FDIC FILs about OFAC Changes

  The FDIC has published FIL-14-2002 and FIL-17-2002 to notify banks of a recent OFAC change where OFAC added additional SDGTs to its Terrorist list. [The OFAC change itself was previously covered on BOL.] 2/28/02

• FDIC Reports Commercial Loan Losses Continue To Grow

  Bank losses on commercial and industrial loans grew again in the fourth quarter of 2001, while key measures of capital and loan loss reserve adequacy also rose, according to a report issued by the FDIC. FDIC:PR-22-2002 2/28/02

• OTS Announces 13 January CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in January 2002. OTS 02-06 2/27/02

• FDIC Announces Sale of Residual Interests and Servicing Rights of Superior Federal Bank, FSB

  The FDIC has announced the sale of the servicing rights for and residual interests in $3.7 billion of securitized subprime mortgage loans from the former Superior Federal Bank, FSB, Hinsdale, Illinois. FDIC:PR-21-2002 2/27/02

• FFIEC Posts UBPR Schedule for 2002

  UPPR's will be available online 35 days after the call report is filed. FFIEC Memo 2/26/02

• Preliminary Bank Earnings Report

  On February 28 at 10:00 a.m. (ET) FDIC Chairman Donald Powell will conduct a press briefing on the 4th Quarter 2001 Preliminary Bank Earnings Report. 2/26/02

• FDIC Notice of Agency Meeting

  The FDIC Board of Directors will meet in open session on March 1, 2002. Agenda 2/26/02

• ABA Issues Money Laundering Resource Guide

  The American Bankers Association is making available a new resource guide it has developed in response to the USA PATRIOT Act requirements to identify and verify account holders. The 17 page publication, which is available online, contains numerous suggestions that institutions will find helpful in developing their own customer verification procedures. 2/26/02

• FDIC 2000 Annual Report

  The FDIC submits its Annual Report to the President of the U.S. Senate and the Speaker of the U.S. House of Representatives. 2/25/02

• OCC Revises the Procedures for National Bank to Appeal Agency Decisions and Actions

  National banks and federal branches and agencies of foreign banks are encouraged to contact the ombudsman to discuss any agency policy, decision, or action that might develop into an appealable matter. OCC 2002-9 2/25/02

• Jacquelyn Fletcher Appointed Chief Information Officer at the OCC

  The OCC announced the appointment of Jacquelyn Fletcher as the agency's new Chief Information Officer. In her new position, she will supervise the agency's information technology programs, including telecommunications, systems development and technology security policy. OCC:NR 2002-13 2/25/02

• New Savings Bond University

  The U.S. Treasury's Bureau of the Public Debt has launched a new Web-based application designed to help the financial institutions that serve as U.S. Savings Bonds issuing and paying agents train their personnel who handle savings bond transactions. This free, interactive training is called Savings Bonds University. 2/25/02

• FDIC Reports Business Credit Flowing Despite Recession

  Business credit is more plentiful in this recession than in any other recessionary episode since the early 1970s, according to an FDIC report released. The report cites a generally lower cost of capital, structural changes in banking and the financial markets, and a different regulatory landscape contributing to the current trend. FDIC:PR-20-2002, Business Credit Flowing Despite Recession 2/22/02

• FDIC Publishes Bank Trends

  This issue of Bank Trends focuses on Business Credit in 2001: More Available than in Past Recessions. 2/22/02

• FRB Issues List of Foreign Margin Stocks

  The List of Foreign Margin Stocks (Foreign List) is composed of certain foreign equity securities that qualify as margin securities under Regulation T. 67FR8182 2/22/02

• Revisions to the Call Report

  The FFIEC has approved a number of revisions to the Reports of Condition and Income (Call Report) for 2002. The FFIEC is providing this advance notification to assist you in planning for these changes. FDIC:FIL-13-2002 2/22/02

• FRB Says State Member Banks May Engage in Equity Hedging

  Any state member bank that seeks to acquire equity securities to hedge the bank's equity derivative transactions must receive the prior approval of the FRB's Director of Banking Supervision and Regulation. In addition, a state member bank may engage in equity hedging activities only to the extent permitted by state law, and the bank must comply with any applicable state notice or approval requirements. FRB Press Release, Board Statement 2/22/02

• FFIEC Issues Alert on SNMP Vulnerabilities

  The FFIEC has identified sites that are useful in reviewing recently published information on potentially serious vulnerabilities in the Simple Network Management Protocol (SNMP), a software protocol widely used in internal networks and the Internet. Financial institutions should be aware that these vulnerabilities may be exploited to gain unauthorized access to information systems or to cause denial of service attacks resulting in network disruptions. FFIEC recommends that information security personnel review these or other credible sites and take appropriate steps to implement the mitigation procedures to protect the integrity of information systems and safeguard customer information. FFIEC 2/21/02

• FRB Schedules Next CAC Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 14. FRB Press Release 2/21/02

• FDIC's Money Smart Program Celebrates First Anniversary by Announcing Roll-Out of Spanish Version

  In the twelve months since, a comprehensive curriculum was developed by the FDIC and implemented in a series of nationwide roll-outs. This year, Money Smart will become even more accessible through a Spanish version and an interactive CD-ROM. FDIC:PR-19-2002 2/21/02

• OCC Publishes Interpretive Letters

  OCC has now posted on its Web site the Interpretive Letters, CRA decisions, and conditional approvals it issued in February. The ILs are available in both Word and PDF format. 2/20/02

• OCC Releases CRA Evaluations For 24 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations. OCC:NR 2002-12 2/20/02

• Treasury Requests Comments on Information Sharing Practices Among Financial Institutions

  The Secretary of the Treasury, in conjunction with the federal functional regulatory agencies and the FTC, is conducting a study of information sharing practices among financial institutions and their affiliates, as required by the Gramm-Leach-Bliley Act of 1999. Survey responses and comments are due April 1. 67FR7213 2/20/02

• FDIC Establishes an Advisory Committee on Banking Policy

  The Committee will provide advice and recommendations on a broad range of issues relating to the FDIC's mission and activities, including, but not limited to: the delivery of services by the FDIC, its corporate infrastructure, and policy initiatives in the areas of deposit insurance, supervision of financial institutions, resolutions and management of failing and failed institutions, and other issues impacting the financial services industry. 67FR7373 2/19/02

• Credit union deposits post strong growth in 2001

  Federally insured credit unions are healthy and doing well based on statistics reported by the nation's 9,984 federally insured credit unions at year-end 2001. NUCA Press Release 2/19/02

• FRB Finalizes Numerous Changes to Reg C & the Commentary

  Highlights of the amendments to Regulation C include required reporting of some loan pricing, reporting that loans are covered by HOEPA, special requirements for mobile home applications, revisions of important definitions, including "preapproval", "refinancing, and "home improvement". Proposal Final Rule 2/15/02

• Additional Guidance on Signatures Under Regulation B

  The Federal Reserve Bank of Philadelphia has provided its own detailed guidance on the signature requirements of Regulation B. While it deals with the same subject as the recent FDIC guidance, it presents it in a different way and includes a useful flow chart. We've reworked the Philly Fed's flow chart to make it easier to read and more printer-friendly. You'll find our version under "Reg B - Required Signatures" in the Compliance Tools part of the Banker Tools page. 2/15/02

• FTC Takes New COPPA Enforcement Actions

  For the fitth time, the Federal Trade Commission has exercised its enforcement authority under the Children's Online Privacy Protection Act to obtain a settlement with a company that violated COPPA by collecting personal information children on the company's Web site without obtaining parental consent. FTC Press Release 2/15/02

• OCC Announces 20 New Enforcement Actions and 5 Terminations

  The OCC announced 20 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2002- 11 2/15/02

• Chairman Powell's Statement on Introduction of Deposit Insurance Reform Legislation

  Chairman Johnson has shown great leadership in developing legislation that will create a stronger, more effective deposit insurance system. FDIC:PR-18-2002 2/15/02

• Twenty-Five Largest Banking Companies

  The FDIC released a quarterly study of the 25 largest banking companies based on publicly-available data. FDIC:PR-17-2002 2/14/02

• Comptroller Calls Preemption a Major Advantage of National Bank Charter

  Comptroller of the Currency John D. Hawke, Jr. said that the creation in 1863 of a uniform charter which allows national banks to operate with immunity from many state and local laws has benefited both banks and the nation's consumers. OCC:NR 2001-10 2/13/02

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-10-2002 to notify banks of a recent OFAC change where OFAC added the Foreign Terrorist Organization (FTO) designation to two Specially Designated Global Terrorists (SDGTs)designated three entities as Specially Designated Global Terrorists. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-10-2002 2/13/02

• FDIC Issues Alert on Counterfeit Official Bank Checks

  The FDIC has learned that counterfeit official bank checks drawn on four separate financial institutions are in circulation. FDIC:FIL-12-2002 2/13/02

• 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. 22), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-11-2002 2/13/02

• OFAC List Updated

  OFAC has removed a number of names from the SDN list, including some banks. Get the details on the BOL OFAC page. 2/13/02

• Remarks by John D. Hawke, Jr. Comptroller of the Currency Before the Women in Housing and Finance Washington, D.C

  2/13/02

• FRB Issues Revisions to Procedures for Processing Applications and Prior Notifications under Regulation K

  The purpose of the FRB letter is to provide a general description of the procedural changes contained in the revised Regulation K. In addition, the letter establishes procedures for processing the new 12-day and 30-day prior notifications and revises existing processing procedures to be more consistent with procedures for other types of applications, including those filed under Regulation Y. New Procedures for Processing Prior Notifications and Applications under Regulation K, General Consent Limits Under Subpart A of Regulation K, FRB:SR 02-3 2/11/02

• FRB Issues Guidance on Monitoring Compliance with Reg K

  The FRB has revised its reporting requirements with respect to foreign investments made by U.S. banking organizations pursuant to Subpart A of Regulation K. FRB:SR 02-2 2/11/02

• Keep up with USA PATRIOT Act Developments

  We've created a special section on the BOL Launch Pad to help keep track of the links relating to regulations and other issuances under the USA PATRIOT Act, as well as a copy of the Act itself. 2/11/02

• FRB Published Revisions to Regulation C

  The FRB published revisions to its Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The Board approved the revisions at its meeting on January 23, 2002. FRB Press Release, Proposed rule, Final rule 2/8/02

• OCC Closes NextBank and Appoints FDIC Receiver

  NextBank NA, Phoenix, Arizona, was closed by the OCC and the FDIC was appointed receiver. OCC:NR 2002-09 2/8/02

• FDIC Approves the Payout of Insured Deposits of NextBank, National Association, Phoenix, Arizona

  The Board of Directors of the FDIC approved the payout of the insured deposits of NextBank, National Association, Phoenix, Arizona. The bank was closed by the OCC, and the FDIC was named receiver. FDIC:PR-16-2002 2/8/02

• FDIC Report Shows Subprime Mortgage Loan Performance Affected by Recession

  The incidence of significant repayment difficulties among subprime mortgage borrowers is increasing, according to the FDIC. FDIC:PR-14-2002 2/8/02

• Diamonds, anyone?

  Unless you are interested in the importation of rough diamonds from Sierra Leone and Liberia, there's no need for you to be concerned about the latest interim regulations posted by OFAC. They simply deal with the Rough Diamonds (Sierra Leone & Liberia) Sanctions 2/8/02

• Statement of FDIC Chairman Don Powell

  "I praise the leadership of Chairmen Oxley and Bachus, and Representatives LaFalce, Gillmor, and Ney, and look forward to swift enactment of deposit insurance reform this year. We appreciate Congress' leadership in recognizing the problems and their aggressive schedule to move forward with legislation." FDIC:PR-15-2002 2/8/02

• Agencies Publish "Privacy Choices for Your Personal Financial Information"

  In conjunction with National Consumer Protection Week, several federal agencies released a guide to help consumers make informed choices about whether to allow their personal financial information to be shared. Privacy Choices for Your Personal Financial Information guides consumers through the choices they face as a result of the privacy provisions of the Gramm-Leach-Bliley Act of 1999. FRB Press Release, OCC:NR 2002-08, OTS 02-05, FDIC-PR-13-2002, FTC Press Release , SEC:2002-21 2/7/02

• Federal Trade Commission Announces ID Theft Affidavit

  The FTC unveiled a new tool to assist victims of identity theft restore their good names. The ID Theft Affidavit provides a model form that can be used to report information to many companies, simplifying the process of alerting companies where a new account was opened in the victim's name. FTC Press Release 2/7/02

• OCC Calls Attention to Treasury Proposal

  The OCC has issued Bulletin OCC 2002-6 to call attention to the upcoming comment deadline on the Treasury Department's proposed rule relating to compliance with two anti-money laundering provisions of the USA PATRIOT Act. 2/6/02

• FDIC Issues February 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 November 2001. FDIC: PR-12-2002 2/6/02

• FDIC Issues Guidance on Avoiding Violations of the Spousal Signature Provisions of Regulation B

  The FDIC is issuing guidance to assist banks in complying with the spousal signature provisions of the Equal Credit Opportunity Act (ECOA) and Regulation B, 12 C.F.R. Part 202. Among other things, Regulation B prohibits lending policies and practices that discriminate on the basis of marital status. FDIC:FIL-9-2002 2/5/02

• OCC Issues Final Rule on Capital Treatment of Nonfinancial Equity Investments

  This final rule requires a series of marginal capital charges on equity investments that increase with the level of those investments relative to the bank's Tier 1 capital. OCC: 2002-5 2/5/02

• FDIC Approves Assumption of the Insured Deposits of the Oakwood Deposit Bank Company, Oakwood, Ohio

  The FDIC has approved the assumption of the insured deposits of The Oakwood Deposit Bank Company, Oakwood, Ohio, by The State Bank and Trust Company, Defiance, Ohio. FDIC:PR-11-2002 2/5/02

• FDIC Isssues Guidance on Managing Risks Associated With Wireless Networks and Wireless Customer Access

  Financial institutions are actively evaluating and implementing wireless technology as a means to reach customers and reduce the costs of implementing new networks. In light of this fast-developing trend, the FDIC is providing financial institutions with information about the risks associated with wireless technology and suggestions on managing those risks. FDIC:FIL-8-2002 2/4/02

• FDIC Announces Receivership of the Oakwood Deposit Bank Company, Oakwood, Ohio

  The Oakwood Deposit Bank Company, Oakwood, Ohio, was closed by the Ohio Superintendent of Financial Institutions, and the FDIC was named receiver. FDIC:PR-10-2002 2/4/02

• SAR Bulletin Describes Terrorist Activities

  The January SAR Bulletin from FinCEN provides synopses of financial transactions that may be associated with criminal fundraising activities. January SAR Bulletin 2/1/02

• FDIC Reports on Rising Trend of Corporate Bankruptcies

  The outlook for bank credit quality in 2002 rests on whether the current problems of large corporate borrowers filter down to smaller businesses and consumers, the Federal Deposit Insurance Corporation reports. FDIC:PR-7-2002 2/1/02

• FDIC Helps Launch Fourth Annual National Consumer Protection Week

  The FDIC has joined federal, state and local organizations and national advocacy groups to launch the fourth annual National Consumer Protection Week (NCPW), to be held from February 3-9. FDIC:PR-8-2002 2/1/02

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December. No administrative hearings are scheduled for February. FDIC:PR-9-2002 2/1/02

• FDIC Issues Electronic Bulletin on Emerging Issues in Banking and the Economy

  The FDIC has introduced FYI, an electronic bulletin summarizing FDIC analysis of emerging issues in banking and the economy. FYI brings to your desktop current information about the trends that are driving change in the banking industry, plus links to other FDIC publications and data tools. FDIC:FIL-7-2002 2/1/02

• FRB Explains Antiterrorism Initiatives

  In testimony before a committee of Congress, Richard Spillenkothen, Director of the Federal Reserve's Division of Banking Supervision and Regulation, provided information about the Federal Reserve's work on implementing the USA Patriot Act. Spillenkothen noted that the Treasury Department recently proposed rules on the prohibition of correspondent accounts with shell banks; the recordkeeping requirements on foreign bank ownership and designation of agents for service of legal process for correspondent accounts; and the broker-dealer suspicious activity reporting requirements all reflect consultation with the Federal Reserve. In addition, Treasury is expected to issue additional proposed rules soon to set forth minimum standards for financial institutions to verify the identification of their customers and to require financial institutions to conduct due diligence to identify suspicious activities involving correspondent and private banking accounts. 1/31/02

• Fed Leaves Interest Rate Unchanged

  The FOMC decided to keep its target for the federal funds rate unchanged at 1-3/4 percent. FRB Press Release 1/31/02

• OTS Releases December Enforcement Statistics

  The OTS reported that it issued ten enforcement orders to five individuals and five institutions during the month of December, 2001. OTS also terminated three orders previously issued to two individuals and one institution. OTS 02-04 1/31/02

• OCC Issues Interim Rule Amending its Regulation Regarding the Capital Equivalency Deposits

  This interim rule revises 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. The OCC is issuing this rule on an interim basis effective January 30, 2002. 67FR4325 (text) 67FR4325 (pdf) 1/30/02

• FDIC Publishes an International Visitors Training Program

  In response to the many training requests from our foreign visitors and in order to make more efficient and uniform use of resources, the FDIC has developed a three-day International Visitors Training Program designed specifically for officials of foreign banking, deposit insurance and resolution authorities serving in mid-level management or above. 1/30/02

• Chairman Powell's Statement on FDIC Board Approval of Special Examination Activities

  The agreement establishes a better process for determining when the FDIC will use its authority to examine any insured institution.FDIC:PR-6-2002 1/30/02

• OCC Publishes the December 2001 Bank Accounting Advisory Series

  The Bank Accounting Advisory Series expresses the OCC's current views on accounting topics of interest to national banks. 1/28/02

• Regulators Issue Final Rule to Amend their Capital Requirements

  The new capital requirements, which will apply symmetrically to equity investments of banks and bank holding companies, impose a series of marginal capital charges on covered equity investments that increase with the level of a banking organization's overall exposure to equity investments relative to the organization's Tier 1 capital. 67FR3783 (text) 67FR3783 (pdf) FDIC:FIL-6-2002 1/25/02

• Department of the Treasury's Notice of Funds Availability Invites Applications for the First Accounts Program

  The FDIC Published FIL-5-2002 to announce that the NOFA invites insured depository institutions, and other eligible entities, to apply for grants to provide low-cost electronic, checking or other types of accounts to low- and moderate-income individuals who currently do not have an account with an insured depository institution or an insured credit union. FDIC:FIL-5-2002 1/25/02

• NCUA Chairman Dennis Dollar's Statement Regarding the President's Recess Appointment of JoAnn Johnson and Deborah Matz

  President George W. Bush announced that he has appointed JoAnn Johnson and Deborah Matz as Members of the National Credit Union Administration Board as recess appointments. NCUA Press Release 1/25/02

• Statement By NCUA Chairman Dennis Dollar

  NCUA Chairman Dennis Dollar released a statement regarding the National Community Reinvestment Coalition's legal actions concerning the Community Action Plan (CAP). NCUA Press Release 1/25/02

• FRB Approves Regulatory Changes to HMDA

  The changes to Regulation C will facilitate fair lending analysis and enhance understanding of the home mortgage market generally and the subprime market in particular. FRB Press Release Proposed amendments to Regulation C based on a review of the regulationSupplemental recommendations regarding Regulation C. 1/24/02

• Identity Theft Is the Top Consumer Fraud Complaint

  The Federal Trade Commission has announced the Top 10 Consumer Fraud Complaints for 2001 and identity theft heads the list, with 42% of the 204,000 complaints entered into the FTC's Consumer Sentinel database last year. Number 5 on the list, with 5%, is "Advance Fee Loans and Credit Protection" fraud. Number 8 is "Foreign Money Offers". FTC has also released a list of tips to help consumers who want to protect themselves from fraud and deception. You may want to consider posting them in your institution or including them in a mailing to customers. 1/24/02

• Proposed National "Do Not Call" Registry

  The Federal Trade Commission is soliciting comments on a proposal to amend the Telemarketing Sales Rule (TSR) by, among other things, creating a national "do not call" registry. 1/23/02

• Considering The Unintended Audience

  The National Infrastructure Protection Committee (NIPC) has issued Advisory 02-001 to urge those putting content on the Internet to carefully consider the ramifications of information being accessed by an unintended audience and to encourage Internet content providers to review the data they make available online.1/23/02

• Obtaining EINs from IRS

  Taxpayers can now call a single toll-free telephone number (866)816-2065 to get an Employer Identification Number (EIN). IRS customer service representatives in three IRS Service Centers will respond to taxpayer calls Monday through Friday from 7:30 a.m.- 5:30 p.m. local time. Taxpayers also can fax requests for an EIN 24 hours a day/7 days a week by dialing the fax number at the location accepting applications from your state. The instructions on the revised Form SS-4 indicate which location will accept your faxed request. For detailed information on Employer Identification Numbers, the IRS has a special page on its Web site. 1/22/02

• FRB Issues Revisions to Bank Holding Company Supervision Procedures

  To further enhance its risk-focused supervision program, on January 1, 2002, the FRB implemented revised procedures for the supervision of bank holding companies1 with total consolidated assets of $5 billion or less. FRB:SR 02-01 1/22/02

• OCC and People's Bank of China Assess Money Penalties Against Bank of China

  The OCC and the People's Bank of China announced they have entered into separate actions against Bank of China and its U.S.-based federal branches for misconduct engaged in by prior management. OCC:NR 2002-07 Statement of Comptroller Hawke Statement of People's Bank Statement of Chairman Liu Consent Order1/22/02

• FDIC Approves the Assumption of the Insured Deposits of Bank of Sierra Blanca, Sierra Blanca, Texas

  The Board of Directors of the FDIC approved the assumption of the insured deposits of the Bank of Sierra Blanca, Sierra Blanca, Texas, by The Security State Bank of Pecos, Pecos, Texas. FDIC:PR-5-2002 1/22/02

• Change of Address for HMDA and CRA Data

  The OCC is informing all national banks, federal branches and agencies, and District of Columbia banks of the change of mailing address for CRA and HMDA data submissions, which are due March 1, 2002. OCC 2002-4 1/18/02

• OCC Releases Third Quarter Edition of Quarterly Journal

  The December 2001 issue of the Quarterly Journal, Vol. 20, No. 4 (for third quarter 2001), is now available on-line . This issue features the latest "Condition and Performance of Commercial Banks" and congressional testimony of the agency's executives, including the white paper attachment to Comptroller Hawke's testimony on "Reforming the Funding of Bank Supervision." 1/18/02

• Consumer Confidential: The Privacy Story

  The Federal Trade Commission has announced that February 3 - 9, 2002 has been designated National Consumer Protection Week ("NCPW") to highlight consumer protection and education efforts around the country. The subject of this year's NCPW is privacy. On the special site they've created for the NCPW, there are noncopyrighted materials freely available for you to use as part of your own NCPW campaign. No reprint permission is required. 1/18/02

• Fact Sheet on International ACH

  This month, Federal Reserve Financial Services has made available a Fact Sheet on its FedACH International ACH service. 1/18/02

• Borrower's Loan Number on Recorded Documents

  In case you missed it, there is an interagency opinion letter on the permissibility, under the GLB privacy regs, of putting a borrower's loan number on recorded mortgage documents. 1/18/02

• OCC Publishes Interpretive Letters

  OCC has now posted on its Web site the Interpretive Letters, CRA decisions, and conditional approvals it issued in December. The ILs are available in both Word and PDF format. 1/18/02

• OCC Releases CRA Evaluations For 28 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of December 15 through January 14, 2002. OCC:NR 2002-5 1/16/02

• OCC Announces 14 New Enforcement Actions

  The OCC announced 14 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:News Release 2002-6 1/16/02

• OCC Publishes Inter-Agency Examiner Guidance On Settlement Service Mark-Ups Under RESPA

  The Court of Appeals for the Seventh Circuit held that Section 8(b) of the Real Estate Settlement Procedures Act (RESPA) was not violated when a title company marked-up a fee of a third-party settlement servicer without performing any additional services. OCC 2002-3, Inter-Agency Guidance 1/16/02

• OCC Issues Guidance on ACH Transactions Involving the Internet

  This bulletin highlights the risks associated with automated clearing house (ACH) transactions that involve the use of the Internet and provides guidance for managing those risks. OCC 2002-2 1/15/02

• FDIC to Market Hamilton Bank, N.A., Assets

  The FDIC announced that it will market a $1 billion loan portfolio from the failed Hamilton Bank, N.A., Miami, Florida, within the next 60 days. FDIC:PR-4-2002 1/15/02

• Governor Laurence H. Meyer resigns from FRB

  Laurence H. Meyer submitted his resignation as a member of the Board of Governors of the Federal Reserve System, effective the last day of his term, January 31, 2002. FRB Press Release 1/15/02

• Hamilton Bank, N.A. Closed by the OCC and FDIC Appointed Receiver

  The OCC acted after finding that the bank, which had assets of $1.3 billion at the time of its closing, was undercapitalized and suffered from deteriorating asset quality, poor earnings, a high level of nonperforming loans and sharply declining capital levels. OCC:NR 2002- 04, FDIC:PR-3-2002 1/14/02

• FRB Makes Revisions to Bank Holding Company Supervision Procedures

  The FRB implemented revised procedures for the supervision of bank holding companies1 with total consolidated assets of $5 billion or less. FRB:SR 02-01 1/11/02

• OCC Proposes Interagency Bank Merger Act Application

  The OCC is soliciting comments on proposed revisions to the information collection titled: "‘Interagency Bank Merger Act". 1/11/02

• NCUA Chairman Dennis Dollar Announces Resumption Of Share Insurance Fund Updates At NCUA Board Meetings

  A once standard practice at NCUA Board meetings dropped in 1997 is making a comeback. NCUA Chairman Dennis Dollar announced today that a quarterly update on the status of the National Credit Union Share Insurance Fund (NCUSIF) will become a part of the official NCUA Board meeting agenda in 2002. NCUA Press Release 1/11/02

• OTS Withdraws Proposed Holding Company Rule

  The OTS announced that it is withdrawing a proposed rule it published in the November 8 Federal Register covering the authority of some thrift holding companies to engage in the same list of financial activities as the Federal Reserve Board permits financial holding companies under the Gramm-Leach-Bliley Act of 1999. OTS 02-03
  1/10/02

• FDIC Publishes "Your Insured Deposit" Booklet Available in Chinese and Korean

  The FDIC is pleased to announce that in addition to English and Spanish versions, its "Your Insured Deposit" booklet is now available in Chinese (traditional and simplified) and Korean. FDIC:FIL-4-2002 1/10/02

• Agencies Adopt Final Rules Concerning the Regulatory Capital Treatment of Nonfinancial Equity Investments

  The FRB, FDIC and OCC, announced the adoption of final rules governing the regulatory capital treatment of equity investments in nonfinancial companies held by banks, bank holding companies and financial holding companies. OCC:NR 2002-03 FDIC-PR-2-2002, FRB Press Release 1/09/02

• OTS Announces 12 December CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in December 2001. OTS 02-02 1/09/02

• FRB Publishes Income and Expense Data and Transfers to the Treasury

  Preliminary figures indicate that the Federal Reserve Banks distributed approximately $27.14 billion of their $31.87 billion total income to the U.S. Treasury during 2001. FRB Press Release 1/09/02

• OCC Issues Examiner Handbook on Custody Services

  The custody business is a bank asset management activity that involves the settlement, safekeeping and reporting of customer marketable securities and cash. The level of assets under custody has increased significantly, as has competition among financial institutions for this business. OCC:NR 2002- 02 "Custody Services" booklet 1/09/02

• FDIC Seeks Comment on Proposed Policy Statement on Minority-Owned Depository Institutions

  As previously reported in the Federal Register, the FDIC is requesting public comment on the proposed Policy Statement Regarding Minority-Owned Depository Institutions. FDIC:FIL-3-2002 1/09/02

• FDIC Issues January 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 October 2001. FDIC:PR-1-2002 1/08/02

• FRB Announces New Consumer Advisory Council Members

  The Council advises the FRB on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services. FRB Press Release 1/07/02

• OTS Releases November Enforcement Statistics

  The OTS reported that it took six enforcement actions against two individuals and four institutions during the month of November 2001. OTS 02-01 1/07/02

• OCC Orders Eagle to Cease Payday Lending Program

  The OCC announced that Eagle National Bank has signed a Consent Order directing it to cease all payday lending activities. Eagle has been engaged in payday lending through arrangements with Dollar Financial Group. The OCC acted after finding that Eagle was in material noncompliance with an earlier Memorandum of Understanding entered into with the OCC and was engaged in numerous unsafe and unsound activities. OCC: NR 2002-01 1/04/02

• FDIC Issues FILs Relating to OFAC

  The FDIC has issued FIL-01-2002 and FIL-02-2002 to alert bankers to OFAC updates that were previously reported on by BOL. Details of all recent OFAC changes are available on the BOL OFAC page.1/03/02

• FinCEN Proposes SAR Reporting Rule for Brokers and Dealers

  FinCEN is proposing to amend the Bank Secrecy Act regulations to require brokers or dealers in securities to report suspicious transactions to the Department of the Treasury. (text) 1/03/02

• FedACH Fees Lowered

  The Federal Reserve has announced lower FedACH fees for items
  originated, items received, and for all addenda records, effective February 1, 2002. 1/03/02

• OFAC List Updated Again

  OFAC has updated its list to add six new SDGTs to the list of terrorists whose assets must be blocked. Get the details on the BOL OFAC page.
  12/31/01

• 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. 21), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-111-2001 12/31/01

• FDIC Issues Interim Guidance Concerning Correspondent Accounts Established or Maintained for Certain Foreign Banking Institutions

  These amendments are intended to make it easier to prevent, detect and prosecute international money laundering and the financing of terrorism. FDIC:FIL-110-2001 12/31/01

• FDIC Considers New Factor in Bank Merger Act Transactions

  Beginning January 1, 2002, the FDIC, in evaluating and acting on applications filed under section 18 (c) of the Federal Deposit Insurance Act (commonly known as the Bank Merger Act), will expressly consider the anti-money laundering record of each involved insured depository institution in determining the appropriateness of granting consent to the proposed transaction. FDIC:FIL-109-2001 12/31/01

• OTS Announces 14 November CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in November 2001. OTS 01-88 12/31/01

• FRB Issues Correction to the Regulatory Capital Standards Rule

  This corrects the Federal Reserve's regulatory text of a final rule published in the Federal Register of November 29, 2001, regarding the capital treatment of recourse, direct credit substitutes, and residual interests in asset securitizations. 66FR67074 (text) 66FR67074 (pdf) 12/31/01

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in November. No administrative hearings are scheduled for January 2002. FDIC:PR-95-2001 12/28/01

• OFAC List Updated

  SDGTs have now also been designated FTOs. BOL OFAC Page 12/27/01

• Delays in Mail Delivery to FDIC Addressees in Washington, DC

  Since October 22, 2001, mail service provided by the United States Postal Service (USPS) to FDIC addressees in Washington, DC, has been disrupted, causing delays in mail delivery to the FDIC. FDIC:FIL-107-2001 12/24/01

• FDIC Issues Alert on Fictitious "Certified" Checks are in Circulation

  The checks bear the name Sanborne Trust Company Bank, 2501 3rd Avenue South, Birmingham, AL. A telephone number, 205-250-7151, is printed on the checks as well as "Member FDIC." The Sanborne Trust Company Bank does not exist. FDIC:FIL-108-2001 12/24/01

• OFAC List Updated

  OFAC has added five new SDGTs to its listing of Specially Designated Nationals and Blocked Persons. BOL OFAC Page 12/21/01

• FDIC Hold Line in 2002 Budget

  The Board of Directors of the FDIC approved a 2002 budget of $1.1 billion, which is virtually the same level it approved for 2001. FDIC:PR-94-2001 12/21/01

• OTS Announces Revised Lending Rule To Enhance Thrift Flexibility

  OTS Director James E. Gilleran announced that OTS changed its lending and investment regulations to allow federal savings associations greater flexibility to provide low-cost credit to their customers and to invest in their communities while still operating safely and soundly. OTS 01-87 12/21/01

• OCC Publishes the Treasury Guidance on the USA PATRIOT Act

  The notice provides interim guidance to financial institutions on how to comply with the requirements of sections 313 and 319(b) of the USA PATRIOT Act of 2001. These anti-money laundering provisions concern the relationship between U.S. financial institutions and foreign banking institutions. OCC:AL 2001-12 12/21/01

• FRB Issues Asset-Size Exemption Threshold for HMDA

  The Federal Reserve Board announced that the asset-size exemption threshold for depository institutions under Regulation C (Home Mortgage Disclosure) has been increased from $31 million to $32 million. FRB Press Release 12/20/01

• IRS Announces Retirement Plan limits that are effective on 1/1/02

  The IRS announced the dollar limitations applicable to pension plans that become effective January 1, 2002 under the
  Economic Growth and Tax Relief Act of 2001 (EGTRRA), and cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2002. IRS:Release No: IR-2001-115 12/20/01

• FDIC Issues Proposed Rule Regarding the Payment of Post-Insolvency Interest

  The purpose of the rule is to establish a single uniform interest rate, calculation method, and payment priority for
  post-insolvency interest. 66FR65144 (text) 66FR65144 (pdf) 12/18/01

• Uniform Bank Performance Reports Available to Public

  The September 30, 2001 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public. FFIEC Press Release 12/18/01

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

  The Central Bank of Belize has issued a warning concerning an entity that is not licensed to provide banking and/or financial business in or from within Belize. Any proposed transactions involving Caribbean Building Society should be viewed with extreme caution. FDIC:FIL-105-2001 12/18/01

• TWO OFAC CHANGES ON DECEMBER 14

  On December 14, 2001, OFAC updated its sanctions list twice, adding new entities whose assets and records are to be blocked each time. The second change was made late in the business day. Full details are available on the BOL OFAC page. 12/17/01

• Regulators Distribute Call Report for Fourth Quarter 2001

  Banks should complete your fourth 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 January 30, 2002. FDIC:FIL-104-2001 12/17/01

• OCC Issues Semiannual Assessment

  As earlier reported in the Federal Register, the OCC has established a minimum base amount for the semiannual assessment that is due to be paid by January 31, 2001. OCC 2001-52 Final Rule Correction 12/17/01

• OCC Announces 6 New Enforcement Actions and 2 Terminations

  The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 2 terminations of existing enforcement actions. OCC:NR 2001- 103 12/17/01

• OCC Releases CRA Evaluations For 19 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of November 15 through December 14, 2001. OCC:NR 2001-104 12/17/01

• FRB Announces New Members of its Thrift Institutions Advisory Council

  The Council is an advisory group made up of twelve representatives from thrift institutions. The Council meets three times each year with the Board of Governors to discuss developments relating to thrift institutions, the housing industry, mortgage
  finance, and certain regulatory issues. FRB Press Release 12/17/01

• OCC Offers New Guidance on Merchant Processing

  The OCC issued new guidance to help examiners and banks understand and manage the risks associated with the merchant processing business. OCC:NR 2001-102 12/14/01

• New Interagency Privacy Guidance

  The federal regulatory agencies just issued new staff guidance which is a series of Frequently Asked Questions covering various aspects of the privacy rules, from when financial institutions must delivery notices to how to comply with the exception for disclosures under a joint marketing arrangement with an unrelated financial institution. FRB Press Release,
  OCC:NR 2001-101, OCC 2001-51 FDIC-PR-93-2001, FDIC:FIL-106-2001
  NCUA Press Release, FTC Press Release, OTS 01-86 12/13/01

• FRB Issues Proposed Rule to Reg Z Commentary

  As earlier reported, the proposed update would 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. 66FR64381 12/13/01

• FRB Issues a Final Rule that Amends its Regulations Aimed at Curbing Predatory Lending

  The amendments to Regulation Z broaden the scope of loans subject to the protections of the Home Ownership and Equity Protection Act (HOEPA) of 1994 by adjusting the price triggers that determine coverage under the act. FRB Press Release 66FR65604 (text) 66FR65604 (pdf) 12/13/01

• Regulators Propose Common Form for Charter and Federal Deposit Insurance Applications

  To promote consistency and reduce regulatory burden, the OCC, OTS and FDIC have proposed a uniform charter and federal deposit insurance application form. OCC:NR 2001-100, FDIC PR-92-2001 12/13/01

• Governor Edward W. Kelley, Jr., resigns from FRB<

  Kelley, who has been a member of the Board since May 26, 1987, submitted his letter of resignation to President Bush. In view of his impending departure and in keeping with Board practice, he did not attend the December 11 meeting of the FOMC. FRB Press Release 12/13/01

• FRB Issues Proposed Revisions Regarding Consumer Credit Disclosures

  The proposed 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. FRB Press Release 12/12/01

• OCC Issues CRA Interagency Examination Procedures

  The Gramm-Leach-Bliley Act imposes disclosure and reporting requirements on national banks and other insured depository institutions with respect to certain agreements related to the Community Reinvestment Act. The OCC's implementing regulation is 12 CFR 35, Disclosure and Reporting of CRA-Related Agreements (CRA Sunshine Regulation). OCC 2001-50 12/12/01

• Michael J. Zamorski Named FDIC Director of Division of Supervision

  FDIC Chairman Donald E. Powell announced that veteran FDIC official Michael J. Zamorski has been named Director of the Division of Supervision. In this position, he is responsible for overseeing the FDIC's bank supervisory activities and eight Regional Offices.
  FDIC:PR-91-2001 12/12/01

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-103-2001 to notify banks of the most recent OFAC change where OFAC designated three entities as Specially Designated Global Terrorists. [The OFAC change itself was previously covered on BOL.]
  FDIC:FIL-103-2001 12/12/01

• FDIC Publishes Call and Thrift Financial Reports

  The September 30, 2001 Call Reports and Thrift Financial Reports are now available. 12/12/01

• FRB announced that it has revised its Policy Statement on Payments System Risk

  This policy allows certain depository institutions to pledge collateral to the Federal Reserve in order to access additional daylight overdraft capacity above their net debit caps. The revised policy also modifies the net debit cap calculation for U.S.
  branches and agencies of foreign banks. These changes should alleviate liquidity pressures identified during a broad review of the PSR policy. FRB Press Release
  12/12/01

• FRB eliminate five reprints from the Federal Reserve Bulletin

  The FRB announced that five documents that have regularly been reprinted in the Federal Reserve Bulletin will not appear in the Bulletin after the December 2001 issue. FRB Press Release 12/12/01

• Fed Lowers Discount Rate

  The Federal Open Market Committee decided to lower its target for the federal funds rate by 25 basis points to 1-3/4 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 1-1/4 percent. FRB Press Release 12/12/01

• Latest FDIC Consumer News Focuses on FDIC Insurance

  If your bank were to fail, would all your deposits be covered by the FDIC? Here's what you need to know and do to "insure" your money is safe. FDIC Consumer News 12/11/01

• FDIC, OTS Announce Agreement with Holding Companies of Superior Bank

  Under the terms of the agreement, the Superior holding companies and their owners (the Pritzker and Dworman interests) admit no liability and agree to pay the FDIC $460 million and other consideration. FDIC:PR- 90-2001, OTS 01-84 12/11/01

• U.S. Banks Generally Well Positioned Entering Recession, According to FDIC Report

  Despite the continuing contraction in the U.S. economy, FDIC-insured institutions remain in generally strong financial shape and will continue to provide credit to finance economic recovery. According to a report released by the FDIC, banks are likely to face
  significantly more difficult economic conditions in the months ahead. FDIC:PR- 89-2001 12/11/01

• FDIC Reports Third Quarter 2001 Financial Results For Bank and Thrift Insurance Funds

  The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $859 million for the first nine months of 2001, compared to $1.1 billion for
  the same period last year. FDIC:PR-88-2001 12/11/01

• FDIC Publishes the latest Regional Outlook

  12/11/01

• Susan Schmidt Bies and Mark W. Olson sworn in as members of the Board of Governors

  Susan Schmidt Bies and Mark W. Olson on Friday took the oath of office as members of the Board of Governors of the Federal Reserve System. The oath was administered by Chairman Alan Greenspan in the Chairman's office. FRB Press Release 12/10/01

• James E. Gilleran Sworn in as OTS Director

  James E. Gilleran was sworn in as the Director of the Office of Thrift Supervision (OTS), the federal agency that oversees
  the regulation and examination of savings associations. OTS 01-83 12/10/01

• OCC Reports Derivatives Volume Increases to $51.3 Trillion

  Derivatives held by U.S. commercial banks increased by $3.5 trillion in the third quarter of 2001, to $51.3 trillion, the Office of
  the Comptroller of the Currency reported in its quarterly Bank Derivatives Report. OCC:NR 2001-99 12/10/01

• Anthrax tests at the FRB

  A preliminary test of mail delivered to a secure, closed mail-handling facility outside the main
  FRB building tested positive for anthrax exposure late Thursday (12/6) afternoon. FRB Press Release 12/10/01

• OTS Extends Comment Deadline on Authority for Certain Savings and Loan Holding Companies To
  Engage in Financial Activities

  The OTS is extending the comment period for the proposed rule published on November 8, 2001. The proposed rule would clarify what financial activities are authorized for certain savings and loan holding companies after the Gramm-Leach-Bliley Act. This extension will allow interested persons until January 10, 2002 to provide comments on the proposed rule. 66FR63517 12/7/01

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in October. No administrative hearings are scheduled for December. FDIC:PR-87-2001 12/7/01

• FDIC Issues December 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 September 2001. FDIC:PR-86-2001 12/7/01

• Thrift Industry 3rd Quarter Earnings Set Record

  Thrift industry earnings rose by $100 million in the third quarter to a record $2.6 billion, the Office of Thrift Supervision reported. Earnings for the year through the quarter total $7.3 billion and are on pace to break the record earnings of $8.2 billion set in 1999. "This has been the fourth consecutive quarter of earnings growth," said Scott Albinson, OTS's managing director for supervision. "Low interest rates and the strong housing market have been the driving force of the thrift industry over the last year." OTS 01-82 12/7/01

• OCC Settles Case Against First National Bank of Marin

  The OCC has settled a case against First National Bank of Marin, Las Vegas, in which the bank agreed to cease practices that the OCC alleged are unlawful or unsafe and unsound, and to pay restitution to customers harmed by those practices. Consent Order, Fact Sheet 12/5/01

• New Harris Poll on Privacy

  There will undoubtedly be a lot of media attention to the new Harris survey on privacy notices. The Harris news release is titled "Privacy Notices Miss the Mark with Consumers" and one of its key findings is that most people find privacy notices too long and complicated. Arm yourself with the facts: l) this survey dealt with privacy notices in general, not financial institution privacy notices specifically; and 2) 70% of respondents agreed that companies "should use the same summary or checklist for their privacy policies". Financial institutions already utilize standardized content. 12/5/01

• FDIC Issues Guidance on Terrorist Info Requests

  The FDIC has issued a Special Alert to provide guidance for institutions on dealing with the list of FBI's suspected terrorists, as well as with the OFAC list. The guidance helps banks understand the different compliance responsibilities attendant to the two sets of lists. FIL-102-2001 12/5/01

• Vulnerabilities in I.E. Prompt NIPC Assessment

  The National Infrastructure Protection Center has issued Assessment 01-028 to address vulnerabilities in Microsoft Internet Explorer that are primary means through which several generations of recent mass-mailer computer worms (i.e., LoveLetter, Nimda, Klez, Badtrans.B) propagate. Under certain conditions, any e-mail or Web page with scripting that includes the command "GetObject()" as well as an ActiveX html file can view any file on the user's hard drive. The Assessment contains recommendations on guarding against the vulnerabilities. ASSESSMENT 01-028 12/4/01

• Regulatory Privacy Workshop Being Held Today

  The Interagency Public Workshop: "Get Noticed: Effective Financial Privacy Notices" is being held today in Washington, D.C. Due to the large volume of registrations, the Workshop had to be moved to a bigger location, and we're told they have a capacity crowd. The agenda includes regulators, representatives of academia and financial institutions, privacy specialists, communications experts, and consumer advocates. Information from the workshop will be available at a later point in time through the FTC Web site in audio, video, transcripts, and a CD-ROM. 12/4/01

• MORE COMPLIANCE HUMOR

  The latest addition to the BankersOnline.com e-card exchange is a new virtual greeting starring David Dickinson. Drawn straight from a Bankers' Thread post about flood insurance, it features humor only a compliance person could love -- or understand! Check it out now in the Office Humor category of the e-card exchange. And don't miss the "Rambo examiner" card while you're there. 12/4/01

• America’s Credit Unions Are Adopting Underserved Communities With A Record-Setting 12.5 Million Potential New Members In 2001

  Chairman Dollar Credits NCUA’s Streamlined Process and Regulatory Flexibility Approach With 2001 Numbers Surpassing Year 2000 Numbers By Over 10 Million NCUA Press Release 12/4/01

• OCC Publishes Its Fees for year 2002

  The purpose of this issuance is to inform all national banks, federal branches and agencies, and District of Columbia banks of fees charged by the OCC for year 2002. Changes are effective January 1, 2002.
  

  • OCC Assessments 2002
  • OCC Fees 2002
  • OCC Publications
  • Assessment Calculator
  • Assessment Return
  • Independent Trust Bank Fees
  • Independent Credit Card Bank Fees
  • OCC 2001-48 12/3/01

• FDIC Publishes Stats at a Glance

  FDIC-Stats at a Glance provides the latest quarterly and historical data on FDIC-insured institutions, the
  BIF and SAIF insurance funds, and the number of FDIC employees. FDIC Historical Trends, Industry Historical Trends 12/3/01

• OCC Issues First Quarter 2002 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the first quarter of 2002. OCC:NR 2001-98 12/3/01

• FDIC Reminds Institutions about HMDA and CRA Data Collection Deadlines

  The FDIC would like to remind institutions that Calendar Year 2001 (CY2001) Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA) data must be submitted by March 1, 2002. FIL-101-2001 12/3/01

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that additional counterfeit cashier's checks drawn on the Exchange Bank, Santa Rosa, California, are in circulation. The latest items bear the routing number of the Valley Bank of Kalispell, Kalispell, Montana. FDIC:FIL-100-2001 12/3/01

• FDIC Issues First 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 first quarter of 2002. FDIC:PR-84-2001 12/3/01

• Comptroller Underscores National Bank Efforts to Meet the Financial Services Needs of Native Americans

  Comptroller of the Currency John D. Hawke, Jr. highlighted the accomplishments of national banks in overcoming many of the barriers that have historically limited Native Americans' access to credit and financial services in Indian country. OCC:NR 2001-97 12/3/01

• NCUA Issues Order of Prohibition

  The NCUA has issued an Order of Prohibition against John Humpage, a former collection manager at Santa Fe Credit Union, Topeka, Kansas. NCUA Press Release 12/3/01

The Federal Reserve Board has issued a request for comment on proposed revisions to the Regulation HH risk-management standards for certain financial market utilities that have been designated as systemically important by the Financial Stability Oversight Council (FSOC). Comments are also requested on related revisions to part I of the Federal Reserve Policy on Payment System Risk (PSR policy). Comments on both proposals must be submitted by March 31, 2014.

The Federal Reserve Board has issued a request for comment on proposed revisions to the Regulation HH risk-management standards for certain financial market utilities that have been designated as systemically important by the Financial Stability Oversight Council (FSOC). Comments are also requested on related revisions to part I of the Federal Reserve Policy on Payment System Risk (PSR policy). Comments on both proposals must be submitted by March 31, 2014.

http://www.bankersonline.com/topstory/november01.html

• OTS Announces CRA Examination Schedule for First Quarter 2002

  The OTS published a list of 86 savings associations that are scheduled for Community Reinvestment Act (CRA) examinations during the first quarter of 2002. OTS 01-81 11/30/01

• FDIC Reports Commercial Banks Earn $17.4 Billion in the Third Quarter, 2001

  Insured commercial banks earned $17.4 billion in the third quarter of 2001, a drop of almost 10 percent
  from third quarter profits the year before, the Federal Deposit Insurance Corporation announced. FDIC:PR-83-2001 11/30/01

• Regulators issue final rule to change their regulatory capital standards

  The agencies are changing their regulatory capital standards to address the treatment of recourse obligations, residual interests and direct credit substitutes that expose banks, bank holding companies, and thrifts (collectively, banking organizations) primarily to credit risk. The final rule treats recourse obligations and direct credit substitutes more consistently than the agencies' current risk-based capital standards and adds new standards for the treatment of residual interests, including a concentration limit for credit-enhancing interest-only strips. 66FR59613 (text)
  66FR59613 (pdf) FDIC-PR-82-2001, FDIC:FIL-99-2001, FRB Press Release, OCC:NR 2001-96, OCC 2001-49 11/29/01

• FRB is Proposing to Amend its Risk-based Capital Guidelines

  The FRB is proposing to amend its risk-based capital guidelines to clarify that deferred tax assets in excess of the allowable amount (disallowed deferred tax assets) are included in the items that are deducted from tier 1 capital for the purpose of determining the maximum allowable amount of tier 2 capital that a banking organization may include in qualifying total capital and the maximum allowable amount of term subordinated debt and intermediate-term preferred stock that may be treated as supplementary capital. 66FR59176 text 66FR59176 pdf 11/28/01

• Treasury Issues Anti-Money Laundering Notice

  The notice provides interim guidance to financial institutions on how to comply with the requirements of sections 313 and 319(b) of the USA PATRIOT Act of 2001. These anti-money laundering provisions concern the relationship between U.S. financial institutions and foreign banking institutions. FRB:SR 01-29 Treasury Notice 11/27/01

• OCC Releases CRA Evaluations For 21 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of October 15 through November 14, 2001. OCC:NR 2001-95 11/28/01

• OCC Announces 10 New Enforcement Actions

  The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:NR 2001-94 11/28/01

• Large credit unions post strong 3rd quarter results

  Federally insured credit unions with assets over $50 million grew a significant 12.81 percent in the first nine months of 2001 while the number of institutions declined slightly, down from 1,558 to 1,547. These institutions represent 15 percent of federally insured credit unions and nearly 83 percent of federally insured credit union assets. NCUA Press Release 11/28/01

• FDIC Distributes Annual Report Form on Indebtedness of Executive Officers and Principal Shareholders to Correspondent Banks

  The FFIEC 004 report is designed to assist an institution's executive officers and principal shareholders in complying with the federal banking agencies' regulations implementing the Act. FDIC:FIL-98-01 11/27/01

• FDIC to Broadcast Preliminary Bank Earnings Live on the Web

  The FDIC will announce preliminary third-quarter 2001 earnings for the commercial banking industry on Thursday,
  November 29, at 10:00 a.m. FDIC Live Broadcast 11/27/01

• NCUA Issues Final Rule on Regulatory Flexibility Program

  The NCUA Board is issuing a final rule that will permit credit unions with advanced levels of net worth and consistently strong supervisory examination ratings to be exempt, in whole or in part, from certain NCUA regulations. The NCUA Board is also issuing a final amendment to the appraisal regulation to increase the dollar threshold from $100,000 to $250,000 for when an appraisal is required. 66FR58656 (text) 66FR58656 (pdf) 11/26/01

• FRB Publishes Correction to Reg K

  The FRB is adopting correcting amendments to the final rule published in the Federal Register of October 26, 2001, regarding international banking operations and the corresponding delegations of authority. 66FR58655 (text) 66FR58655 (pdf) 11/26/01

• OTS Announces 20 October CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in October 2001. OTS 01-79 11/26/01

• OTS Releases October Enforcement Statistics

  The OTS reported that it issued one enforcement order to an institution during the month of October. OTS 01-80 11/26/01

• FRB Releases Minutes from Discount Rate Meeting

  The FRB released the minutes of its discount rate meetings from September 24 to October 2, 2001. 11/19/01

• OCC Issues Semiannual Assessment

  The amendment revises the formula to establish a minimum base amount for the semiannual assessment for the first assessment bracket ($0-$2 million) of the assessment schedule. This change will enable the OCC to modestly adjust its assessments to better align with its costs of supervision. 66FR57645 (text) 66FR57645 (pdf) Correction 66FR58786 (text) 66FR58786 (pdf)11/16/01

• FRB publishes annual adjustment of trigger fee for additional mortgage loan disclosures

  Under the revision to the FRB’s staff commentary to Regulation Z, the dollar amount of the fee-based trigger has been adjusted from $465 for 2001 to $480 for 2002 based on the annual percentage change reflected in the Consumer Price Index that was in effect on June 1, 2001. FRB Press Release
  11/15/01

• Fed Announces Results of Study of the Payments System

  American consumers and businesses make 80 billion retail payments annually, nearly 50 billion by check and 30 billion by electronic instruments, such as credit cards, debit cards and the Automated Clearing House (ACH), according to the first comprehensive studies of the retail payments system by the Federal Reserve System in more than 20 years. FRB Press Release 11/15/01

• Agencies Issue Order Against the State Bank of India

  Federal and state banking regulators announced the issuance of a joint Order to Cease and Desist and Order of Assessment of a Civil Money Penalty and Monetary Payment against the State Bank of India, Mumbai, India, and the bank's three branches in New York, New York, its branch in Chicago, Illinois, and its agency in Los Angeles, California. FDIC-PR-81-2001 11/15/01

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued an Order of Prohibition against Roslyn Keen, former manager of Millard Fillmore
  Hospital Federal Credit Union in Buffalo, New York. NCUA Press Release 11/15/01

• NCUA Chairman Addresses 4th Faith-Based Conference

  NCUA Chairman Dennis Dollar told 150 representatives of faith-based credit unions that they have “a bright future and fill an important niche in the credit union community” and encouraged them to consider adopting their surrounding communities as a way to help offer a low-cost alternative to predatory lenders. NCUA Press Release 11/15/01

• NCUA Chairman Dennis Dollar releases a statement regarding the U.S. Court of Appeals decision

  "The Court of Appeals’ decision issued represents a tremendous victory for NCUA and credit unions, but it is most of all a decisive win for the concept of consumer choice. We believe strongly that our field of membership rules adhered to both the letter and the spirit of the Credit Union Membership Access Act, and we are so pleased that the court overwhelmingly agreed. It is my hope that this unanimous ruling will be the beginning of the end to the nearly two decades of legal conflict pursued by the banking industry on both NCUA and America's credit unions. NCUA Press Release 11/15/01

• Court Dismisses ABA Challenge to NCUA's Field of Membership Rule

  The United States Court of Appeals dismissed the American Bankers Association suit against NCUA's field of membership regulation issued pursuant to the Credit Union Membership Access Act (CUMAA) November 9, 2001. The court found the ABA's arguments without merit and affirmed the district court's dismissal of the case, except for one claim dismissed as moot and another dismissed as unripe. NCUA Press Release 11/15/01

• FRB Releases Senior Loan Officer Opinion Survey on Bank Lending Practices

  The October 2001 Senior Loan Officer Opinion Survey on Bank Lending Practices focused on changes in the supply of, and demand for, bank loans to businesses and households over the past three months. The survey included supplementary questions on banks' internal credit risk ratings for business loan customers, loans for the purpose of share buybacks, and liquidity in the secondary market for business loans. 11/14/01

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-972001 to notify state-chartered nonmember banks about the 11/7 OAC list changes. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-97-2001 11/14/01

• FRB Issues Advisory on the use of forward equity transactions by banking organizations

  The FRB has determined that shares covered by forward equity arrangements should not be included in the Tier 1 capital of a bank holding company or a state member bank. The amount to be excluded would be equal to the common stock, surplus, and retained earnings associated with the shares. FRB:SR 01-27 11/12/01

• Chairman Greenspan Designate Representatives to Air Transportation Stabilization Board

  FRB Chairman Alan Greenspan today designated Governor Edward M. Gramlich to serve in his place as the chairman of the Air Transportation Stabilization Board. Treasury Secretary Paul O'Neill designated Under Secretary for Domestic Finance Peter Fisher to serve in his place as a Board member and Transportation Secretary Norman Mineta designated DOT General Counsel Kirk Van Tine to serve in his place as a Board member. FRB Press Release 11/12/01

• Challenges Faced by Women in Building and Maintaining Assets

  Remarks by Julie L. Williams, First Senior Deputy Comptroller and Chief Counsel, Office of the Comptroller of the Currency
  Before the McAuley Institute’s 7th National Women and Housing Conference OCC:NR 2001- 93 11/12/01

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued an Order of Prohibition against Elizabeth A. Maxwell, former manager of Greater Southwest Federal Credit Union in Sugar Land, Texas. NCUA Press Release 11/9/01

• Thrift Holding Companies May Engage in Activities Approved for Financial Holding Companies, Says OTS

  The OTS published a proposed rule revising its regulations to make clear that all thrift holding companies are authorized under the Gramm-Leach-Bliley Act of 1999 to engage in the same list of financial activities as financial holding companies are permitted by the Federal Reserve Board. Gramm-Leach-Bliley gave financial holding companies new powers to engage in activities that are financial in nature, incidental to a financial activity or complementary to a financial activity. 66FR56488 (text) 66FR56488 (pdf) OTS 01-77 11/8/01

• FDIC Report Says Risks in Banks' Loan Portfolios and Loan Administration have Increased Slightly

  FDIC examiners have reported increases in risks in banks' 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 September 30, 2001. FDIC:PR-80-2001 11/8/01

• NCUA Chairman Visits New York Credit Unions Recovering from September 11 Attacks

  NCUA Chairman Dennis Dollar received a briefing from leaders of New York credit unions impacted by the tragedy on September 11, as well as NCUA regional staff and representatives of New York state regulatory authorities. NCUA Press Release 11/8/01

• Terrorist Additions to the OFAC SDN List

  OFAC has added additional entities and individuals to the list of SDGTs. The names have been inserted into all versions of the SDN list and the brochure on Terrorism. OCC:Alert 2001-14 11/7/01

• FRB Lowers Fed Funds Rate to 2 Percent

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 1-1/2 percent. FRB Press Release 11/7/01

• FDIC Publishes Historical Statistics on Banking

  The Historical Statistics on Banking provides annual statistical information on the banking industry beginning in 1934. These data can be used to identify and analyze long-term trends and to develop benchmarks to evaluate the current condition of the banking and thrift industries. 11/7/01

• FDIC Issues November 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 August 2001. FDIC:PR-79-2001 11/6/01

• NCUA Holds Historic Public Budget Briefing Announces 33.5 Staff Reductions In 2002 And Projection Of Planned Budget Decrease in Agency's 2003 Budget

  NCUA held its first open budget briefing with the agency's three-member Board participating with the public in the historic event. The Budget Briefing and Public Forum was announced in September by NCUA Chairman Dennis Dollar as a way to “shed additional light” on the NCUA budget process and allow the credit union industry and interested parties the opportunity to provide views and opinions for the agency's consideration. NCUA Press Release 11/6/01

• Seidman Recounts OTS Accomplishments In Farewell Address to Thrifts

  In her farewell address to the thrift industry, Office of Thrift Supervision Director Ellen Seidman reviewed her four-year
  tenure, a time of enhanced profitability and stability for both OTS and the thrift industry. She focused on her actions to rebuild OTS, enhance communication between the agency and thrifts, and improve the thrift charter. OTS 01-76 11/6/01

• Crossing the Bridge to Self-Employment

  A guide to state and federal programs for people who seek to start their own businesses. 11/6/01

• OTS Outlines Refinements to Mutual Examination Process

  The OTS issued updated guidance on the examination of mutual institutions. OTS 01-75 11/5/01

• OCC Guidance Cautions National Banks on Third Party Relationships

  The OCC issued guidance on managing the risks that arise when national banks have business relationships with third
  parties. OCC:NR 2001- 92 11/5/01

• The National Infrastructure Protection Center (NIPC) issued Advisory 01-026 to advise computer users of the increased potential for distributed denial of service (DDoS) attacks. A previous advisory on DDoS attacks had been issued in September, but the NIPC notes that cyber protests and hacktivist activity have increased since the previous advisory (01-021) was issued and the potential for targeting U.S. organizations is higher than in September. 11/5/01

• Washington Postal Federal Credit Union responds to an onsite crisis

  After two postal workers died from anthrax inhalation at the Brentwood Road Mail Processing Center in northeast Washington, D.C., the facility was shut down Sunday, October 21, 2001. No one can enter the quarantined building for what may be up to 12 weeks. NCUA Press Release 11/2/01

• OTS Issues Proposed Rule to Clarify its Lending and Investment Regulations

  The OTS proposes to revise and clarify its lending and investment regulations to give savings associations greater flexibility in a changing marketplace. The proposed regulatory amendments are intended to help thrifts take better advantage of the flexibility available under the Home Owners' Loan Act (``HOLA''), to provide low-cost credit to their customers, and to invest in their communities while still operating safely and soundly. 66FR55131 (text),
  66FR55131 (pdf) Correction 66FR59050 11/1/01

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

  The OCC recently published a final rule amending part 32, the regulation governing the percentage of capital and surplus that a national bank may loan to any one borrower. Inadvertently, six cross-references in the existing regulation were not amended to reflect changes made by the final rule. 66FR55071 (text),
  66FR55071 (pdf), Original Published Final Rule 11/1/01

• FRB Approves Fee Schedules for Payment Services

  The price level for Federal Reserve priced services in 2002 is projected to increase 2.1 percent from the 2001 level. Because of fee reductions in recent years, the overall price level has risen only 3.5 percent since 1996. FRB Press Release 11/1/01

• FDIC Approves Sale Of Superior Federal Bank, FSB, Hinsdale, Illinois

  The Board of Directors of the FDIC approved the sale of the branches and deposits of Superior Federal Bank, FSB. The winning bidder is Charter One Bank, FSB, Cleveland, Ohio. FDIC:PR-78-2001 11/1/01

• Dollar Calls Overhead Transfer Funding Process Both Congressionally Authorized And Historically Successful

  NCUA Chairman Dennis Dollar has called the agency’s funding process in which a portion of the agency’s budget is allocated to the share insurance fund as an “overhead transfer” to cover insurance-related costs “legally strong and proven successful over 30 years of credit union growth and increased financial stability. NCUA Press Release 11/1/01

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued an Order of Prohibition against Jill Marie Swatloski, former branch manager of Valley
  Communities Credit Union in Mosinee, Wisconsin. NCUA Press Release 11/1/01

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in September. One administrative hearing is scheduled for November. FDIC:PR-77-2001 11/1/01

• OTS Proposes Revising Lending Rule To Enhance Thrift Flexibility, Clarifies Existing Lending Rule, Starts Pilot Program To Ease Disparities

  The OTS proposed changing its lending and investment regulations to allow thrifts greater flexibility to provide low-cost credit to their customers and to invest in their communities while still operating safely and soundly. OTS also reminded thrifts of the lending and investment flexibility they already have under existing rules and announced a pilot program to alleviate competitive lending disparities for thrifts. OTS 01-74 11/1/01

• Joint Agency Release on SEC Action Against Robert L. Bentley, Entrust
  Group and Bentley Financial Services, Inc.

  The joint release notifies all financial institutions that the Securities and Exchange Commission has filed suit against the above-named defendants for suspected securities fraud and has obtained a Temporary Restraining Order to freeze the defendants' assets and appoint a receiver to take control over the defendants' assets until further order of the court. OCC:AL 2001-11 FDIC:FIL-95-2001, NCUA Press Release, FRB:SR 01-26 10/31/01

• FDIC Issues Final Rule Clarifying the Meaning of Engaged In The Business of Receiving Deposits Other Than Trust Funds

  This final rule amends the FDIC's regulations covering filing procedures and delegations of authority, to clarify the meaning of the phrase ``engaged in the business of receiving deposits other than trust funds'' in the Federal Deposit Insurance Act. Under the rule, an insured depository institution must maintain one or more non-trust deposit accounts in the aggregate amount of $500,000 in order to be "engaged in the business of receiving deposits other than trust funds". 66FR54645 (text) 66FR54645 (pdf) 10/30/01

• NCUA makes presentation to Financial Accounting Standards Board

  The NCUA staff participated with other credit union and financial organizations in presenting formal comments to the Financial Accounting Standards Board (FASB) regarding their September 1999 exposure draft “Combinations of Non-stock Depository Institutions. NCUA Press Release 10/30/01

• Dollar Has NCUA Staff Working To Develop “Cost Equity Formula” For Overhead Transfer Rate

  NCUA Chairman Dennis Dollar announced during remarks at the Founders Federal Credit Union annual planning conference that NCUA was working to develop a “cost equity formula” to make its overhead transfer process even œmore efficient and equitable. NCUA Press Release 10/30/01

• FDIC Issues Alert on Fictitious Checks

  The FDIC has learned that fictitious "certified" checks are in circulation. The checks bear the name Sanborne Savings & Trust Company, P.O. Box 1475, Birmingham, AL 35233. FDIC:FIL-94-2001 10/30/01

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

  The OCC has informed the FDIC that the Ministry of Administration, Republic of Palau, has revoked the corporate charter for an entity called First Pacific Development Bank, Ltd., effective August 27, 2001. Proposed transactions involving this entity should be viewed with extreme caution. FDIC:FIL-93-2001 10/30/01

• FTC Seeks Comment on Amending Children's Internet Privacy Rule

  The FTC is seeking public comment on a proposal to extend for two years the period during which Web sites directed to children can 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. FTC Press Release, Proposal 66FR54963 (text) 66FR54963 (pdf) 10/29/01

• FDIC Publishes 2000 Program Performance Report

  The 2000 Program Performance Report compares actual performance to the goals established in the FDIC's 2000 Annual Performance Plan. 10/29/01

• FDIC Publishes 2001 - 2006 Strategic Plan

  10/29/01

• OTS Publishes Thrift Bulletin on Lending Limit Pilot Program

  FIRREA revised the lending limits to one borrower for savings associations to parallel those applicable to national banks. Savings associations are now generally allowed to lend no more than 15 percent of their unimpaired capital and surplus to one borrower. TB 79 10/29/01

• FRB Release Board Meeting Minutes

  The FRB released the minutes of its discount rate meetings from May 21, 2001 to September 17, 2001. FRB Press Release 10/29/01

• U.S. Postal Service Mail Delivery to the OCC

  The OCC, along with other agencies and businesses in Washington, D.C., has not received mail from the U.S. Postal Service for the last three days, while the Postal Service deals with the anthrax crisis. If you need immediate assistance or information from the OCC, you may want to call, e-mail, or fax your request. 10/26/01

• OCC Issues General Information on SSCRA

  As a result of the recent activation of military reserves, the OCC has received inquiries about the Soldiers' and Sailors' Civil Relief Act of 1940, 50 USC App. 501 et seq. This advisory is issued to provide general information about certain provisions of the act that may affect national banks. OCC:AL 2001-10 10/26/01

• FRB Issues Proposed Rule to Amend Regulations Relating to International Lending

  The FRB is seeking public comment on a proposal to amend its regulations relating to international lending by simplifying the discussion concerning the accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP). 66FR54399 (text) 66FR54399 (pdf) 10/26/01

• FRB Issues Final Rule to Amend Reg K

  Consistent with section 303 of the Riegle Community Development and Regulatory Improvement Act of 1994 (the Regulatory
  Improvement Act), the Federal Reserve Act, and the International Banking Act of 1978 (the IBA), the Board has reviewed Regulation K, which governs international banking operations, and is amending subparts A, B, and C. 66FR54345 (text) 66FR54345 (pdf) Correction: 66FR58655 (text) 66FR58655 (pdf)10/26/01

• OTS Names Sonja White Director of Examination Policy

  The OTS announced that Sonja White has been appointed to the position of Director, Examination Policy. Ms. White replaces Duane Thorkildsen, who was named Deputy Director of OTS’s Dallas regional office in June. OTS 01-73 10/26/01

• FDIC Publishes Analysis on "How the Banking Industry Has Responded to Crisis"

  How commercial banks have faced crises; their current preparations to expand credit, provide depositors a refuge, sustain profitability. How the Banking Industry Has Responded to Crisis 10/26/01

• SPECIAL REPORT

  "Dark Clouds and Silver Linings -- How the Postal Service Problems May Affect You"

• SPECIAL LEGISLATIVE NEWS ALERT

  The USA PATRIOT ACT

  (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism) was approved by Senate on October 25, 2001. It had previously been passed by the House and may be on the President's desk for signature as early as Friday. The Act contains, in Title III, the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001.

  The intent of International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 is to increase the strength of United States measures to prevent, detect, and prosecute international money laundering and the financing of terrorism and to ensure that banking transactions and financial relationships do not contravene provisions of the US Code or the Federal Deposit Insurance Act.

  The Secretary of Treasury is given broad discretion to take measures tailored to particular money laundering problems presented by foreign institutions and international transactions and to provide guidance to domestic financial institutions on international transactions.

  The Act clarifies the terms of the safe harbor from civil liability for filing SARs and strengthens the authority of the Secretary of the Treasury to issue geographic targeting orders.

  In addition, the Act ensures that all appropriate elements of the financial services industry are subject to requirements to report potential money laundering transactions and jurisdictional disputes do not hinder the examination of compliance by financial institutions with the reporting requirements.

  The Act strengthens measures to prevent the use of the US financial system for personal gain and facilitates the repatriation of any stolen assets to the citizens of the countries to whom such assets belong. USA PATRIOT ACT
  10/25/01

• NCUA Receives Independent Study of Overhead Transfer, Dollar Says Study Backs Agency Approach

  NCUA Chairman Dennis Dollar told a group of community credit union leaders that NCUA has received its long awaited independent
  third-party study of its overhead transfer process and that the “agency came out very well.” NCUA Press Release 10/25/01

• SEC Charges Robert L. Bentley, Bentley Financial Services, Inc. and Entrust Group with Securities Fraud

  NCUA has been notified that the Securities and Exchange Commission charged Robert L. Bentley, Bentley Financial Services, Inc., (“BFS”) and Entrust Group (“EG”), Paoli, Penn., with securities fraud for selling securities misrepresented as insured certificates of deposit (CDs) to hundreds of financial institutions. BFS is a CD broker and EG acts as the custodian for CDs placed through BFS. NCUA Press Release 10/25/01

• OCC Releases Second Quarter Edition of Quarterly Journal

  The September 2001 issue of the Quarterly Journal, Vol. 20, No. 3 (for second quarter 2001), is now available on-line. This issue features the latest "Condition and Performance of Commercial Banks," and data on status of the corporate structure of the national banking system. In addition are the regularly featured speeches and congressional testimony of the agency's executives as well as the legal interpretations of the quarter, the financial performance tables for commercial and national banks based on the latest call-report data for the quarter, and recent corporate decisions. Quarterly Journal 10/24/01

• FDIC Issues FIL on Yugoslavian OFAC Sanctions

  The FDIC has published FIL 92-2001 to notify state-chartered nonmember banks about the 10/3 change that amended OFAC regulations concerning Yugoslavia. [The OFAC change itself was previously covered on BOL.]
  FDIC:FIL-92-2001 10/24/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 20), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL:91-2001 10/24/01

• FTC Launches Telemarketing Fraud Site

  The Federal Trade Commission says telemarketing fraud bilks American consumers out of billions of dollars each year. To provide information to help consumers protect themselves, and guidance for businesses to help them comply with the Telemarketing Sales Rule, the FTC has launched a new Web page "Telemarketing Fraud - Ditch the Pitch". 10/23/01

• FDIC Issues Alert on Counterfeit Official Bank Checks

  The FDIC has learned that counterfeit checks have been drawn on four separate banks and are in circulation. FDIC:FIL-89-2001 10/23/01

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-90-2001 to notify state-chartered nonmember banks about the 10/5 OFAC list changes. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-90-2001 10/23/01

• FDIC Spreads Word about Executive Order

  The FDIC issued FDIC Issues FIL-88-2001 to inform banks under its jurisdiction about the President's Executive Order on Targeting Terrorists. [The Executive Order itself was previously covered on BOL.] FDIC: FIL-88-2001 10/23/01

• FinCEN Releases New SAR Trends/Tips

  The latest issue of the SAR Activity Review is hot off the press. The Highlighted Trend for this issue of the SAR Activity Review is Computer Intrusion, but full statistics. Other notable trends include the use of money transmitters as a money laundering vehicle; use of Traveler's Checks to disguise identities; and more Nigerian letters. FDIC:FIL-96-2001 10/22/01

• OTS' Latest Quarterly Review of Interest Rate Risk Addresses Confusion over Structured Advances

  The OTS has just published an article addressing the, at times, confusing area of Federal Home Loan Bank (FHLB) advances.
  OTS 01-72 10/22/01

• HUD Position on Yield Spread Premiums

  HUD has issued Statement of Policy 2001-1 to clarify its position on yield spread premiums under RESPA in light of two recent court cases. 66FR53051 (text) 66FR53051 (pdf) 10/19/01

• FRB Announces Annual Adjustments for Reserve Calculations and Deposit Reporting

  The FRB announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff level used to determine the detail and frequency of deposit reporting. FRB Press Release 10/19/01

• Country Risk Management Booklet Online

  The "Country Risk Management" booklet, discusses country risk -- the risk that economic, social, and political conditions and events in a foreign country will adversely affect an institution’s financial interests. It describes the elements of the country risk management process and provides risk-focused examination procedures. 10/19/01

• Veteran NCUA Manager Named Region V Associate Regional Director of Operations

  The National Credit Union Administration Board has selected C. Keith Morton to direct operations for the NCUA regional office in Austin, Texas. NCUA Press Release 10/19/01

• New NIPC Report on Infrastructure Threat

  The National Infrastructure Protection Center has issued a new report "Cyber Protests: The Threat to the U.S.Information Infrastructure". NIPC notes that pro-active network defense and security management are imperative to the prevention of more serious damage to infrastructure assets. 10/18/01

• FRB Issues Final Rule to Reflect the Change in the Discount Rate

  The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. 66FR52850 (text) 66FR52850 (pdf) 10/18/01

• OCC Releases CRA Evaluations For 19 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of September 15 through October 14. OCC:NR 2001-91 10/18/01

• FRB Requests Comment on Proposed Revisions to Subpart D of Regulation K

  The proposal is intended to reduce the regulatory burden on banking institutions engaged in international lending by making the requirements concerning accounting for fees on international loans consistent with generally accepted accounting principles (GAAP).
  FRB Press Release 10/18/01

• FRB Approves Comprehensive Revisions to Regulation K

  The final rule will expand permissible activities abroad for U.S. banking organizations and reducing associated regulatory burdens. It also reduces regulatory burden on foreign banks operating in the United States by streamlining the application and notice processes. FRB Press Release 10/18/01

• Statement of FDIC Director John Reich on Failure of Superior Bank

  FDIC Statement 10/18/01

• Statement of FDIC Chairman on Deposit Insurance Reform

  FDIC Statement 10/18/01

• FDIC Agency Meeting

  The FDIC Board of Directors will meet in open session on October 23, 2001. Meeting Notice 10/18/01

• OCC Announces 6 New Enforcement Actions and 6 Terminations

  The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 6 terminations of existing enforcement actions. OCC:NR 2001- 90 10/18/01

• OTS Details Actions Responding to Attack and Superior Bank

  In the resumption of a Senate Banking Committee hearing on Superior Bank that was postponed shortly after it began on
  September 11, OTS Director Ellen Seidman announced that OTS has issued 27 subpoenas in the Superior case. She reported that agency officials have also had extensive discussions with investigators from the General Accounting Office, and Treasury and FDIC inspector generals. OTS 01-71 10/17/01

• On October 12th Terrorist Additions were Added to the OFAC SDN List

  As earlier reported on BOL, OFAC has added the names of 39 terrorists to its list of Specially Designated Global Terrorists (SDGTs). OCC:Alert 2001-13 10/17/01

• Address Change for CRA and HMDA Data Submissions

  The FFIEC has issued a memo which indicates that due to heightened security concerns, they are changing the mailing addresses for all CRA and HMDA data submissions effective immediately. Because this change may delay receipt of the submissions to the regulators, they strongly encourage all CRA and HMDA data reporters to submit data via email. Consult the memo for complete new address information. FFIEC Memo 10/16/01

• Business Continuity and Security Program Info

  The OCC has rounded up links to a number of issuances related to business continuity plans and security programs to help banks and servicers that are reviewing their business continuity plans and security programs following the terrorist attacks. Institutions of all charters will find these issuances helpful. OCC links 10/15/01

• FRB Allows Banking Organizations some Flexibility in Calculating Capital Ratios for the Third Quarter

  In the aftermath of the September 11 attacks on the World Trade Center, a number of banking organizations have experienced delays in the clearing and settlement of their capital market transactions, such as repurchase and reverse repurchase transactions, securities lending and borrowing transactions, and securities sales. The delays may expose institutions to short-term credit risks they typically do not have when the clearing and settlement systems are operating normally. These credit risk exposures are often greatly mitigated because they are collateralized, in many cases by cash or government securities. FRB:SR 01-24 10/16/01

• FRB Issues Guidelines for Using External Experts on Examinations, Inspections, and Other Bank Supervision
  Matters

  The use of an external expert to meet resource needs is permissible provided the appropriate safeguards are in place to ensure that the Reserve Bank and supervised financial institutions sufficiently are protected from any misuse of information or conflict of interest, and further provided that there are established practices to ensure that an external expert will comply with applicable laws and policies. FRB:SR 01-25 10/16/01

• Comptroller of the Currency speaks to the New York State Department of Banking

  Speech 10/16/01

• Your Insured Deposit Booklet

  Korean and Chinese versions of Your Insured Deposit booklet now available. 10/15/01

• OTS Announces 14 September CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in September 2001. OTS 01-70 10/15/01

• Charter for First Pacific Development Bank, Ltd. Revoke

  The OCC has been advised by the Ministry of Administration, Republic of Palau, that the corporate charter for First Pacific
  Development Bank, Ltd. has been revoked. OCC:2001-12 10/15/01

• OFAC Again Updates

  On October 12, OFAC made changes for the fifth time in less than a month. Today's change added new names and aliases of 39 terrorists to the list of SDGTs. Their assets must be blocked immediately. The SDN material has been revised and the Terrorism brochure has been updated. For details on all the new names and aliases, go to the BOL OFAC page. 10/12/01

• OTS Issued Three Enforcement Orders In August

  The OTS reported that it issued three enforcement orders to one individual and two institutions during August. OTS 01-69 10/12/01

• FRB Announces Modifications to the Method for Calculating PSAF

  The PSAF (private sector adjustment factor) imputes the costs that would have been incurred and profits that would have been
  earned if the Reserve Banks' priced services were provided by a private firm. The revised method will be used to determine the 2002 PSAF and fees for Federal Reserve priced services. FRB Press Release 10/11/01

• NIPC Warns Banks About Hackers

  The NIPC has issued a new warning to financial institutions after it has continued to observe hacking activity targeting the e-commerce or e-finance/banking industry. They point to third-party service providers that employ weak security practices as a particular target of the hackers. NIPC ADVISORY 01-023 10/11/01

• Joint Agency Request Relating to Information Pertaining to the Terrorist Attacks

  The OCC requests your participation in a system to facilitate cooperation with law enforcement authorities in their ongoing
  investigation of terrorist activity. OCC:NR 2001-88 Interagency Letter on the Terrorist Attacks, BOL Cooperating with Law Enforcement 10/8/01

• FDIC Issues October 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 July 2001. FDIC:PR-75-2001 10/8/01

• OCC Supports Efforts of National Banks to Aid in Recovery Efforts

  National banks that support recovery efforts in communities affected by the September 11 terrorist attacks will receive credit under the Community Reinvestment Act, the Office of the Comptroller of the Currency announced. OCC:NR 2001-88 10/8/01

• Interagency data show increase in adversely classified syndicated bank loans

  The 2001 Shared National Credit (SNC)1 review indicates continued deterioration in the quality of syndicated bank loans, consistent with general economic, sectoral, and credit market trends, according to data released Friday by three federal bank regulatory agencies. FRB Joint Press Release, OCC Press Release, FDIC-PR-74-2001 10/8/01

• FTC Unveils Aggressive Privacy Agenda

  In announcing an aggressive pro-consumer privacy agenda, the Federal Trade Commission chairman stated his intention to increase privacy protection resources by 50 percent. The agency revealed a detailed new enforcement plan that will involve initiatives ranging from the creation of a national do-not-call list to greater enforcement of the Fair Credit Reporting Act. Privacy Agenda Overview 10/5/01

• OFAC Again Updates Descriptors

  Late on 10/3/01, OFAC updated, for the second time, the descriptor information on the 27 terrorist-related individuals and entities
  previously added to the OFAC list. In some instances, the updates consist of additional aliases. In other instances, there is simply an alternate date of birth. In addition, it appears that new names not previously listed are found at the end of the
  update. Consult the SDN List and the SDN Changes List for full details of the designations. 10/5/01

• NCUA Chairman Dennis Dollar Takes To The Air; Urges Americans To "Fly And Shop" Again

  It was Dollar's first official travel by air since the events of September 11. He was accompanied to the Open Forum by his Chief of Staff Kirk Cuevas, Special Assistant for Public Affairs Nicholas Owens and Executive Secretary Lynn Calderwood. During the Open Forum, Chairman Dollar told the credit unions leaders that "we all need to be flying again and headed to the malls." NCUA Press Release 10/5/01

• Dollar Says Economic Downturn Emphasizes Need For Quarterly Call Reports

  NCUA Chairman Dennis Dollar told a group of Tennessee and Kentucky credit union leaders that the nation’s present economic downturn, made worse by the unexpected events of September 11, “points out once again that significant changes in the nation’s economy can happen suddenly and without warning.” NCUA Press Release 10/5/01

• FDIC Program Encourages Banks to Make Loans to Those Affected by the September 11 Attacks

  To support rebuilding in New York and Washington after the terrorist attacks of September 11, the FDIC will give the banks it supervises credit under a federal law designed to promote community development when they lend for reconstruction, the agency announced. FDIC: PR-73-2001 10/5/01

• FRB Approves Discount Rate Request

  The FRB approved action by the Board of Directors of the Federal Reserve Bank of Minneapolis and Philadelphia, decreasing the discount rate at the bank from 2-1/2 percent to 2 percent. FRB Press Release, FRB Press Release 10/5/01

• OFAC Special Alert

  A second update was made to the OFAC list on 10/3/01 in the late afternoon. OFAC has published updated descriptor information on the names included in the annex to Executive Order 13224 which was issued by the President with effective date of 12:01am Monday, September 24. The SDN List and the SDN Changes List contain full details of the designations. OFAC is expecting to update the "Terrorism" brochure sometime on 10/04/2001. More OFAC information is available from our OFAC Sanctions Matrix. 10/4/01

• OCC Concludes that GLBA and Barnett Decision Show Parts of West Virginia Law do not Apply to National Banks

  The OCC concluded in an opinion that will be published in the Federal Register that some provisions of a West Virginia
  insurance law would be preempted under the Gramm-Leach-Bliley Act (GLBA) and therefore would not apply to national banks. OCC:NR 2001- 86 Preemption Opinion 10/4/01

• OCC Issues Final Rule on Operating Subsidiaries of Federal Branches and Agencies

  As earlier reported in the Federal Register, the OCC is amending parts 5 and 28 of its regulations to clarify that a federal branch or agency may establish, acquire, or maintain an operating subsidiary in generally the same manner that a national bank may acquire or establish an operating subsidiary. OCC 2001-46 10/4/01

• Massachusetts Attorney Pleads Guilty to Wrongfully Converting Government Funds to Personal Use; Fined $100,000

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that attorney Michael J. Harrington of Beverly, MA, pled guilty on September 20, 2001, in U.S. District Court, Boston, MA, to wrongfully converting to his personal use $226,771 in money and funds of the Hawthorne Hotel, Salem, MA. Harrington was ordered to pay a $100,000 fine. FDIC:PR-72-2001 10/4/01

• Seidman Bids Community Groups and Financial Institutions to Look Beyond CRA

  In her last speech to community groups, OTS Director Ellen Seidman called on them and their financial institution partners to further the spirit of the Community Reinvestment Act by moving beyond it. OTS 01-67 10/4/01

• OFAC Special Alert

  OFAC has published in the Federal Register an amendment to its Yugoslav regulations. Certain blocked FRYK funds transfers can
  be returned to remitters. Others must go forward into blocked accounts at U.S. banks that are the primary holders of those
  accounts. NFA debt is unblocked; other debt needs to be specifically licensed. Yugoslav Summary 10/3/01

• FDIC Report Analyzes Effects of Slowing Economy on Demand for U.S. Office Space

  A slowing economy contributed to softening in some U.S. office markets during the first half of 2001.
  According to a report released by the FDIC, a combination of trends - a drop in demand for office space and an uptick in construction activity in some markets - has led to a slackening of office market conditions. FDIC:PR-71-2001 10/3/01

• FOMC Lower its Target for the Federal Funds Rate

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 2-1/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 2 percent. FRB Press Release 10/3/01

• OCC Announces Realignment of Technology and Compliance Units

  The OCC announced that Grace E. Dailey has been named Deputy Comptroller for Large Banks. The OCC also announced a reorganization involving the realignment of several units and the creation of two new positions. OCC:NR 2001- 85 10/2/01

• FTC to Unveil Aggressive Privacy Agenda

  The FTC announced that it will unveil an aggressive new privacy agenda on October 4, 2001 to increase protection of consumer privacy in the marketplace by focusing on: telemarketing, spam, ID theft, and pretexting, as well as enforcement under the Fair Credit Reporting Act, the Children's Online Privacy Protection Act (COPPA), the Gramm-Leach-Bliley Act and the Telemarketing Sales Rule. BOL will feature a full report on the anticipated impact of this agenda soon after it is released. FTC Press Release 10/2/01

• Help for 20 Worst Threats

  The FBI announced on 10/1/01 that it had teamed up with the computer industry to create a list of the 20 worst threats that have emerged on the Internet and to offer fixes for them in order to encourage users and companies to patch identified vulnerabilities before the next virus appears. The list addresses software bugs in Unix and Microsoft Windows operating systems, and common mistakes, such as inadequate passwords or failure to perform appropriate back-ups. The list and the fixes are available on the Web site of the non-profit Sans Institute, and the Top 20 scanner can be obtained for free by sending an email to the Center for Internet Security, using instructions found on the Sans Institute Web site.
  10/2/01

• FRB appointment of chairmen and deputy chairmen of the twelve Federal Reserve Banks for 2002

  Each Reserve Bank has a board of directors of nine members. The Board of Governors in Washington appoints three of these directors and designates one of its appointees as chairman and a second as deputy chairman. FRB Press Release 10/1/01

• FinCEN Hotline/Reporting Suspicious Transactions Relating to the Recent Terrorist Attacks

  National banks are required to report information concerning known or suspected criminal law violations relating to the recent terrorist attacks to law enforcement authorities by filing Suspicious Activity Reports (SARs) as expeditiously as possible.
  FinCEN Notice , OCC:Alert 2001-10, FDIC:FIL-87-2001, FRB Press Release 10/1/01

• OTS Reminds Thrifts About Law Providing Financial Relief to U.S. Military Personnel

  The OTS reminded thrifts about provisions of the Soldiers and Sailors Civil Relief Act of 1940 that affect certain financial liabilities of military personnel, including in particular military reservists called to active duty, and new members of the armed
  forces. OTS 01-66 10/1/01

• Consumer Advisory Council to hold meeting, open to the public, on October 25 at the Federal Reserve Board

  The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 8:45 a.m. and is open to the public. FRB Press Release 10/1/01

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in August. No administrative hearings are scheduled for October. FDIC:PR-70-2001 10/1/01

• Dollar Announces Historic Open NCUA Budget Briefing and Public Forum –

  NCUA Chairman Dennis Dollar announced that the National Credit Union Administration (NCUA) has scheduled an open Budget Briefing and Public Forum on NCUA’s 2002 budget for November 1, 2001, at the NCUA’s Central Office in Alexandria, VA. NCUA Press Release 10/1/01
  

• FDIC Issues FIL on Insurance Q&As

  FDIC FIL-84-2001 informs state nonmember banks about the Interagency responses to questions on the insurance consumer protection rules. The questions and answers, which we wrote about previously in Top Stories, were issued August 17, 2001. They can now be accessed in html format on BankersOnline.com. FDIC: FIL-84-2001 9/28/01

• Executive Order Targeting Terrorist Assets

  As earlier reported, President George W. Bush issued an Executive Order targeting terrorists. As a result, a number of new names have been added to Treasury's Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons list. FDIC:FIL-85-2001 9/28/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 19), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-86-2001 9/28/01

• OTS Announces 14 August CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in August 2001. OTS 01-65 9/28/01

• Federal Reserve Board launches interactive web site for students, educators, and the general public

  This site offers students, educators and the general public an introduction to the workings of the Federal Reserve System. FRB Press Release 9/28/01

• FRB of Boston Releases Guide On Check Imaging

  Federal Reserve Bank of Boston released a guide entitled "A Framework for Exchanging Image Returns ," (pdf version) to help banks handle the technical, operational, and legal issues involved in exchanging check images. 9/27/01

• FRB Extends Comment Deadline on Payments System Risk Issues

  The FRB has extended the deadline for its request for comment on the potential longer-term direction of its payments system
  risk policy. The new deadline is November 16, 2001. 66FR49385 (text) 66FR49385 (pdf) 9/27/01

• FRB Issues Final Rule to Change the Discount Rate

  The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. 66FR49098 (text) 66FR49098 (pdf) 9/26/01

• OCC Issues Final Rule on Operating Subsidiaries of Federal Branches and Agencies

  The OCC is amending its regulations to provide that a Federal branch or agency may establish, acquire, or maintain an operating subsidiary in generally the same manner that a national bank may acquire or establish an operating subsidiary. 66FR49093 (text) 66FR49093 (pdf) Correction 9/26/01

• NCUA Assists FBI Investigation In Correspondence With The Nation's Credit Unions

  NCUA Chairman Dennis Dollar issued a NCUA Letter to Credit Unions upon receiving a formal request for assistance by the Federal Bureau of Investigation (FBI). NCUA Press Release 9/26/01

• Community Bank, Covina, CA - Missing Official Checks

  The FDIC has been informed by the Community Bank, Covina, California, that 300 of the bank's official checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-83-2001 9/26/01

• Ventura Savings Bank - Fictitious Checks in Circulation

  The FDIC has learned that fictitious "official" checks and "certified" checks are in circulation. The checks bear the name Ventura Savings Bank, 1010 Huntcliff Blvd., Roswell, GA 33050. "MEMBER FDIC" is also printed on the checks. FDIC:FIL-82-2001 9/26/01

• Terrorist Additions to the OFAC SDN List

  As earlier reported by BOL, the president has issued a new Executive Order targeting terrorists, and a number of new names have been added to OFAC's Specially Designated Nationals List. Click here to access the summary. OCC:Alert 2001-9 9/26/01

• OCC Issues Proposed Rule to Set Forth the Formula for the Semiannual Assessment

  The amendment would revise the formula to establish a minimum base amount for the semiannual assessment for the first assessment bracket ($0-$2 million) of the assessment schedule. 66FR48983 (text) 66FR48983 (pdf) 9/25/01

• OTS Updates Locations for Filing CRA-Related Agreements

  In accordance with the joint rule titled “Disclosure and Reporting of CRA-Related Agreements,” the OTS has announced that all parties filing CRA-Related agreements or annual reports with OTS should mail paper copies to CRA Sunshine, c/o Dissemination Branch, Office of Thrift Supervision, 1700 G St., N.W., Washington, D.C. 20552 or may now file electronic versions at crasunshine@ots.treas.gov. OTS 01-63 9/25/01

• Interagency-sponsored public workshop on Gramm-Leach-Bliley Act privacy notices set for Dec. 4th

  The workshop will provide a forum to identify successful GLB Act privacy notices, discuss strategies for communicating complex information, and encourage industry self-regulatory efforts and consumer and business education. The workshop will bring together financial institutions, consumer and privacy groups, experts on readability and consumer communication, and others to discuss the issues through moderated panel discussions. Interagency Press Release, OTS, FTC , OCC:NR 2001-84, FDIC-PR-69-2001, NCUA Press Release 9/25/01

• NCUA Chairman Urges "Diligent Management" In America's Credit Unions As Nation Faces Economic Uncertainty
  

  Agency Chief Says Credit Unions “Well Positioned But Not Immune”. NCUA Chairman Dennis Dollar urged credit unions
  to provide “diligent management” as the nation faces a period of economic uncertainty and signs of a downturn. NCUA Press Release 9/24/01

• Credit Unions can make Charitable Contributions

  Credit unions are stepping forward to assist families, businesses and fellow credit unions affected by last week's tragic events by using their authority to make charitable contributions and donations. NCUA Press Release 9/24/01

• Institution Directory

  The FDIC's Institution Directory (ID) and Statistics on Depository Institutions (SDI) have been updated to reflect June 30, 2001 financial information. FDIC Institution Directory 9/24/01

• FDIC Issues Summaries of the Principal Requirements of the National Flood Insurance Act

  Flood hazard determinations must be performed before the closing of loans secured by buildings or
  mobile homes, including loans secured by commercial real estate. Lenders must document the
  determination using the Standard Flood Hazard Determination Form provided by the Federal Emergency
  Management Agency (FEMA) and retain that form for the life of the loan. FDIC:FIL-81-2001 Summary 9/24/01

• Regulators Distribute Call Report for Third Quarter 2001

  Banks should complete your third 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 October 30, 2001, in accordance with the filing requirements discussed below. FDIC:FIL-80-2001 9/24/01

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

  The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $706 million for the first six months of 2001, compared to $366 million for
  the same period last year. FDIC:PR-68-2001 9/24/01

• FRB Extends Deadline for Public Comment on Policy on Payment System Risk

  As a result of the September 11 terrorist attacks, some organizations with an interest in the potential longer-term policy direction of the Board's payments system risk policy have had to devote significant resources to ensuring the continued smooth functioning of the payments system and financial markets. The Board has extended the original October 1 comment deadline to
  provide these organizations with adequate time to analyze the issues raised in the notice and to incorporate their perspectives on recent financial market experiences. FRB Press Release 9/24/01

• Treasury Releases 2001 Money Laundering Strategy

  The Administration's 2001 Money Laundering Strategy is now available on the Treasury Department web site.
  9/21/01

• NCUA Lifts Mandatory Compliance Date Electronic Delivery of Disclosures Required by TISA

  Once a permanent final rule is issued, NCUA will afford credit unions a reasonable period of time to comply with the rule. 66FR48206 (text) 66FR48206 (pdf) 9/19/01

• NCUA Issues Final Rule on Nondiscrimination in Real Estate-Related Lending

  The rule provides a federal credit union (FCU) with flexibility in how it gives notice when advertising and allows an FCU to display either the NCUA lobby poster or a similar poster prepared by the United States Department of Housing and Urban Development. 66FR48205 (text) 66FR48205 (pdf) 9/19/01

• NCUA Chairman Dennis Dollar Statement Regarding JoAnn Johnson

  President George W. Bush has announced that he intends to nominate JoAnn Johnson of Iowa to serve on the National Credit Union Administration Board. NCUA Press Release 9/19/01

• FBI Request for Records Search by Banking Organizations

  The Federal Bureau of Investigation has provided the FRB and the other federal financial institutions supervisory
  agencies with a public list of the names of alleged subjects under investigation by the FBI in connection with the World Trade
  Center and Pentagon attacks, and asked all domestic and foreign banking organizations operating in the United States to check
  their records for any relationships or transactions with the named individuals. FRB:SR 01-22, FDIC:FIL-79-2001, OCC:2001-8 9/19/01

• FDIC Ribbon-Cutting Ceremony in Chicago Launches Nationwide Money Smart Program

  The FDIC held a ribbon-cutting ceremony at the Pilsen One-Stop Center in Chicago, Illinois to launch its Money Smart financial education program. FDIC:PR-67-2001 9/19/01

• Dennis Dollar Designated NCUA Chairman

  President George W. Bush announced that he has designated NCUA Board Member Dennis Dollar as the agency's Chairman. NCUA Press Release 9/18/01

• FRB Decreasing the Discount Rate

  The FRB approved actions by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta and Kansas City, decreasing the discount rate at the bank from 3 percent to 2-1/2 percent, effective immediately. FRB Press Release 9/18/01

• Federal Open Market Committee Lowers Target for the Federal Funds Rate

  The Federal Open Market Committee decided today to lower its target for the federal funds rate by 50 basis points to 3 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 2-1/2 percent. The Federal Reserve will continue to supply unusually large volumes of liquidity to the financial markets, as needed, until more normal market functioning is restored. Federal Reserve Press Release 9/17/01

• FFIEC Distirbutes the June 30, 2001 Uniform Bank Performance Report

  The June 30, 2001 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit
  Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public. FFIEC Press Release 9/17/01

• OCC Transmits Insurance Q& As

  OCC 2001-43 simply informs national banks about the interagency Q&As issued previously that relate to consumer sales of insurance and the Q&As themselves are transmitted to national banks as an attachment to OCC 2001-43. 9/17/01

• NCUA Disaster Assistance Activated for New York City and Arlington, Va. Credit Unions

  The NCUA activated its disaster relief policy to assist credit unions and their members in New York City and Arlington County, Va., following the destruction of the Twin Towers yesterday in New York City and the damage to the Pentagon in Arlington, Va. NUCA Press Release 9/17/01

• NCUA Acting-Chairman Dennis Dollar Statement

  9/17/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published a "Monthly Warning Advisory" (Issue No. 18), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-78-2001 9/17/01

• OTS Reports That Thrift Industry Has Been Operating Normally in Wake of Crisis

  The OTS reported that the thrift industry has been operating normally and that the industry has taken steps to assist customers affected by events related to the September 11 terrorist attacks. OTS 01-61
  9/17/01

• OCC and ABA Postpone Conference on Community and Economic Development

  The OCC and ABA announced that the 2001 National Community and Economic Development Conference scheduled for September 17-19 in Baltimore Maryland has been postponed due to the national tragedy of September 11 and the uncertainty of U.S. airline service.
  OCC:NR 2001-83 9/17/01

• OCC Announces 19 New Enforcement Actions and 5 Terminations

  The OCC announced 19 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2001- 81 9/17/01

• Swap arrangement between the Federal Reserve and the Bank of England
  

  The Federal Reserve and the Bank of England have agreed to establish a temporary swap facility
  in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars. FRB Press Release 9/17/01

• Federal Reserve encourages banks to work with customers affected by disaster

  The Federal Reserve encourages state member banks and bank holding companies to work with customers who directly or indirectly have been affected by the events of September 11. FRB Press Release 9/17/01

• Federal Reserve and Bank of Canada augment swap facility

  The Federal Reserve and the Bank of Canada have agreed to a temporary augmentation of their existing swap facility in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars. FRB Press Release 9/17/01

• Swap arrangement between the Federal Reserve and the European Central Bank

  In order to facilitate the functioning of financial markets and provide liquidity in dollars, the Federal
  Reserve and the European Central Bank have agreed on a swap arrangement. FRB Press Release 9/17/01

• Joint Interagency Statement

  Market responses in the aftermath of the tragic events of September 11 could lead to temporary balance
  sheet growth at some banking organizations, including thrifts. This growth could occur if, for example,
  during this period corporate borrowers make unusual draws on their existing lines of credit or request new
  lines in response to a perceived need for extra liquidity, or if a banking organization were to receive
  unusually large deposit inflows. Absent other factors, increases in extensions of credit or large deposit
  inflows would likely result in an increase in total assets. FDIC-PR-66-2001, FRB Press Release, OCC NR 2001-82 , OTS 01-62 9/17/01

• National Infrastructure Protection Center (NIPC) Issues Advisory for Increased Cyber Awareness

  The National Infrastructure Protection Center (NIPC) expects to see an upswing in incidents as a result of the tragic events of September 11, 2001. ADVISORY 01-020 9/14/01

• OCC Releases CRA Evaluations For 13 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of August 15 through September 14. OCC:NR 2001- 80 9/14/01

• Swap arrangement between the Federal Reserve and the European Central Bank

  In order to facilitate the functioning of financial markets and provide liquidity in dollars, the Federal
  Reserve and the European Central Bank have agreed on a swap arrangement. FRB Press Release 9/14/01

• Supervisory Flexibility Due to September 11 Disasters

  The FDIC has issued supervisory guidance that it issued to its examiners relating to the tragic events of September 11, 2001.
  FDIC:FIL-77-2001 9/14/01

• OTS Asks Thrifts to Assist Customers Affected by Terrorist Attacks

  The OTS announced steps thrifts can take to assist customers affected by events related to Tuesday's terrorist attacks in New York City and Washington, DC. OTS 01-60 9/13/01

• OCC Encourages National Banks to Work With Customers Affected by Terrorist Attacks

  The OCC is encouraging national banks to work with customers affected by Tuesday's terrorist attacks in
  New York and Washington. OCC:NR 2001- 79 9/13/01

• OTS Outlines Reasons for Superior Bank Failure and Suggests Remedies

  OTS Director Ellen Seidman detailed the history of the failed Superior Bank for the Senate Banking Committee. “I sincerely believe that this failure was the responsibility of those who owned and managed the institution and related parties,” Ms. Seidman said. However, she stressed that investigations into the failure are still underway by OTS, FDIC, Treasury Inspector General and the General Accounting Office. OTS 01-59 9/13/01

• OTS Issued Eight Enforcement Orders in July

  The OTS reported that it issued eight enforcement orders to three individuals and four institutions and terminated three others during July. OTS 01-58 9/13/01

• OCC Allows National Bank Offices Affected by Emergency to Close

  The OCC issued a proclamation allowing national bank offices affected by the emergency situation to close at their discretion. OCC:NR 2001-78 9/12/01

• Federal Reserve System is open and operating.

  The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs. FRB Press Release 9/12/01

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on the Interamerica Bank, Albuquerque, New Mexico, are in circulation. FDIC:FIL-76-2001 9/11/01

• OCC and ABA Co-Sponsor Community and Economic Development Conference

  The OCC and the ABA will co-sponsor the 2001 National Community and Economic Development Conference titled "Grow Markets....Grow Profits" in Baltimore, Maryland on September 17-19. OCC:NR 2001-77 9/11/01

• NCUA Chief Tells Texas Credit Unions Agency's Streamlined Approach to Adopting Underserved Areas May Open Doors for Greater Expansion into Hispanic Communities

  The nation's federal credit unions have added over 18 million potential members in 2001 and NCUA's streamlined process has helped create this expansion says NCUA Acting Chairman Dennis Dollar. He says these additions will extend low-cost financial services to many underserved Americans and open additional doors for credit unions in “meeting member needs from all walks of life.” NCUA Press Release 9/10/01

• OCC Issues Advisory Letter about obligations under the EFTA and Regulation E

  The OCC wishes to ensure that national banks fully comply with the EFTA's error resolution requirements and that they conduct adequate investigations of claims of unauthorized transactions. The purpose of this advisory letter is to assist banks in
  addressing the compliance and reputation risks of inadequate investigations under Regulation E. OCC:AL 2001-9 9/10/01

• Sinclair National Bank Closed by the OCC and FDIC Appointed Receiver

  Sinclair National Bank, Gravette, Arkansas, was closed by the OCC and the FDIC was appointed receiver. FDIC:PR-63-2001 , OCC:NR 2001-76 9/10/01

• Agricultural Loans Affected by the Drought Oregon and Northern California

  The FDIC is encouraging banks to work constructively with agricultural borrowers affected by the severe drought in the Klamath Basin of Southern Oregon and Northern California. FDIC:FIL-75-2001 9/10/01

• Latest FDIC Survey Finds Some Weakening In Real Estate Markets

  The latest results of the FDIC's Survey of Real Estate Trends indicated somewhat weaker conditions in the nation's real estate markets, particularly for local offices. Although reports of stability continued to dominate, the survey results indicate some deterioration in real estate markets. FDIC: PR-62-2001 9/10/01

• OCC Reports "More Normal" Derivatives Trading Revenue for Banks

  U.S. commercial banks earned $2.8 billion from cash instruments and derivatives activities in the second quarter of 2001, down from the $4.0 billion record revenue of the first quarter. The notional amount of derivatives in insured commercial bank portfolios increased by $3.9 trillion in the first quarter, to $47.8 trillion. OCC:NR 2001- 75 9/10/01

• Thrift Industry Earnings Set Quarterly Record

  Thrift industry earnings rose sharply during the second quarter of 2001 to a record $2.5 billion, the OTS reported. OTS Director Ellen Seidman attributed the strong earnings to continued strength in the housing market coupled with low mortgage interest rates. OTS 01-57 9/7/01

• FDIC Distributes HUD's 2001 Adjusted Median Family Income Figures

  The FDIC distributed the 2001 median family income figures developed by the Department of Housing and Urban Development (HUD) for each metropolitan statistical area (MSA) and the statewide portions of nonmetropolitan areas. FDIC:FIL-74-2001 9/6/01

• Commercial Banks Earn Almost $20 Billion In Second Quarter, 2001

  Insured commercial banks earned $19.2 billion in the second quarter of 2001, the Federal Deposit Insurance Corporation announced. FDIC:PR-61-2001 9/6/01

• FDIC Issues September 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 June 2001. FDIC:PR-60-2001 9/6/01

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

  As earlier reported in the Federal Register, this final rule establishes a three-year pilot program that creates new
  special lending limits for 1-4 family residential real estate loans and loans to small businesses. Eligible national banks with main offices located in states that have a lending limit available for residential real estate, small business or unsecured loans that is higher than the current Federal limit may apply to take part in the pilot program. OCC 2001-42 9/6/01

• OCC Issues Fourth Quarter 2001 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 2001. OCC:NR 2001- 74 9/6/01

• FDIC Issues Fourth 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 fourth quarter of 2001. FDIC:PR-59-2001 9/4/01