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

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

• Financial Transparency and Regulatory Policy

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

• OCC Issues Third Quarter 2002 CRA Examination Schedule

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

• FRB Approves proposal of JPMorgan Chase Bank

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

• OFAC List Changes

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

• FinCEN Launches E-Filing System

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

• OCC Issues Final Rule on Fees Assessment

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

• OTS Reports Record Quarterly Earnings, Profitability for Thrift Industry

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

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

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

• Summary of Deposits Survey for June 30, 2002

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

• Mississippi Housing Initiative Adopts FDIC "Money Smart" Program

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

• Court Shuts down Cyberscam Permanently

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

• FDIC Celebrates National NeighborWorks® Week

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

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

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

• FRB Issues Proposed Rule to Restructuring Credit Programs

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

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

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

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

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

• Interagency Guidance on Implicit Recourse in Asset Securitizations

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

• OCC Cautions National Banks on "Yield Chasing"

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

• 2003 FFIEC Examiner Education Course Catalogue

  5/24/02

• FDIC Publishes Bank Trends

  FYI 5/24/02

• FTC Issues Information Safeguards Rule

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

• Account Management Guide

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

• FFIEC Internet Reporting System

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

• Preliminary Bank Earnings Report

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

• FDIC Publishes Semiannual Agenda of Regulations

  The FDIC has published its semiannual agenda of regulations in the Federal Register to inform the public of the Corporation's regulatory actions and encourage participation in the rulemaking process. FDIC:PR-56-2002 5/23/02

• FDIC FIL about OFAC Change

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

• FDIC Issues Alert/Counterfeit Cashier's Checks

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

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

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

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

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

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

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

• "Prime Bank" and Other Financial Instrument Fraud Schemes

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

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

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

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

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

• FRB Issues Proposal to revise Federal Reserve discount window programs

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

• OCC Announces New Electronic Interpretations and Actions

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

• OCC Transmits the FATF Terrorist Financing Guide

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

• FTC Finally Issues Information Safeguards Rule

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

• FTC to Host Public Workshop on Consumer Information Security

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

• Regulators Issue Corrected Final Rule for Risk-Based Capital

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

• OCC Issues Final Rule on Electronic Banking

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

• Consumer's Guide to Direct Payment

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

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

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

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

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

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

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

• OFAC List Changes

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

• FDIC Publishes List of Ten Largest Thrift Companies

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

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

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

• OCC Releases CRA Evaluations For 25 National Banks

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

• OCC Announces 15 New Enforcement Actions and 1 Terminations

  The OCC announced 15 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2002-42 5/16/02

• FDIC Issues Interim Rule on Contractor Conflicts of Interest

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

• FDIC FIL about OFAC Change

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

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

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

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

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

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

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

• Anthrax Tested at the FRB

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

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

  5/10/02

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

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

• OTS Adjusts Capital Requirements For 1-4 Family Mortgages

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

• FFIEC 001 and FFIEC 006 Reporting Forms have been discontinued

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

• Delay of Reg C Amendments Officially Published

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

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

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

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

  5/9/02

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

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

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

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

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

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

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

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

• FDIC Issues Alert on Counterfeit Cashier's Checks

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

• FDIC Issues FIL on Homeownership Counseling Notification Requirements

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

• FFIEC Updates Forms

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

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

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

• FOMC Leaves Interest Rates Unchanged

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

• OCC Alerts Banks of Colorado stolen birth and death certificates

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

• IRS Warns of Scheme to Steal Identity and Financial Data

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

• FTC Submit Second Annual Report to Congress on the GLBA

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

• Matz Urges Credit Unions to Look to the Future

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

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

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

• Treasury Publishes USA PATRIOT Act Report to Congress

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

• FATF Releases Terrorist Financing Guide

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

• FedACH System Quality and Volume Statistics Published

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

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

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

• FDIC Issues Alert on Counterfeit Cashier's Checks

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

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

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

• BOL Adds Special PATRIOT Act Section

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

• FDIC Posts Notice of Agency Meeting

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

• Forms Used by the FDIC

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

• FDIC Seeks Comment on Information Quality Guidelines

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

• FIL about OFAC Change

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

• OTS Signs Information Sharing Pact With Oregon Insurance Regulator

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

• OTS Releases March Enforcement Statistics

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

In remarks at the Bipartisan Policy Center, Secretary of the Treasury Lew stated "this can and should be a breakthrough year for our economy." He noted it is imperative that Congress move right away to increase the government's borrowing authority. He commented that progress in Washington around the budget and the farm bill can mark the beginning of a productive period of bipartisan action.

In remarks at the Bipartisan Policy Center, Secretary of the Treasury Lew stated "this can and should be a breakthrough year for our economy." He noted it is imperative that Congress move right away to increase the government's borrowing authority. He commented that progress in Washington around the budget and the farm bill can mark the beginning of a productive period of bipartisan action.

• Treasury Report to Congress on FBAR Reporting

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

• FTC Members Express Views about Online Personal Privacy Act

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

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

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

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

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

• OTS Releases February Enforcement Statistics

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

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

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

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

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

• OCC Proposes to Amend Assessments for Independent Trust Banks

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

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

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

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

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

• W3C Approves P3P

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

• Agencies Outline Risks of Parallel-Owned Banking Organizations

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

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

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

• Treasury Department's USA PATRIOT Act Developments

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

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

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

• FTC Extends COPPA Rule

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

• FTC Gets Tough on COPPA

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

• IRS Issues Rule on Required Distributions From Retirement Plans

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

• OTS Proposes Revisions to Parity Act Regulations

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

• OCC Announces New Electronic Interpretations and Actions

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

• Minority Depository Institutions Program

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

• Terrorist Threat Against Banks

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

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

• NCUA Issues Final Rule Repealing CAP Proposal

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

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

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

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

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

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

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

• FDIC Chairman Asks for Input on Reducing Regulatory Burden

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

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

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

• $100 Billion Claim Against the Federal Reserve Rejected

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

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

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

• OCC Announces 12 New Enforcement Actions and 2 Terminations

  The OCC announced 12 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 2 terminations of existing enforcement actions. OCC:NR 2002-36 4/17/02

• OCC Releases CRA Evaluations For 27 National Banks

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

• BSA Violations Prove Expensive for PA Bank

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

• FinCEN Issues New Advisory Newsletters

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

• OTS Updates Thrift Holding Companies Handbook

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

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

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

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

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

• Resumption of Critical Operations

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

• New Rule Affects Lockbox Arrangements for Federal Agencies

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

• New FMS Interim Rule to Reflect NACHA Changes

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

• NCUA Chairman Releases Study On Deposit Insurance Reform Legislation

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

• OTS Announces 21 March CRA Ratings

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

• Gilleran Announces OTS Restructuring Plans

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

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

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

• FDIC Issues Alert on Counterfeit Cashier's Checks

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

• FDIC FIL about OFAC Change

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

• FDIC's Credit Card Center Available Online

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

• FRB Issues Final Rule Amending Reg Z Commentary

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

• Regulators Issue Final Rule on Risk Based Capital Standards

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

• Gilleran Announces New Proposal for Enhancing the Mutual Thrift Charter

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

• Comptroller Outlines the Benefits of Financial Literacy Programs

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

• Warning: Bogus Letters with Sham IRS Forms

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

• FDIC Issues April List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in January 2002. FDIC:PR-40-2002 4/8/02

• FR Financial Services Publishes International ACH Service Manual

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

• OTS Announces Nine February CRA Ratings

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

• FFIEC Publishes Annual Report

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

• FRB Issues Revisions to Reg Z Commentary

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

• Treasury Extends Public Comment Period on Information-Sharing Study

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

• FDIC Announces Agency Meeting

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

• FFIEC Updates Reporting Forms

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

• Regulators Distribute Call Report for First Quarter 2002

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

• FRB Issues Notice on Derivative Contracts Hedging Trust Preferred Stock

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

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

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

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

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

The January 2014 G.5 Foreign Exchange Rates Report has been released by the Federal Reserve Board.

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."

The January 2014 G.5 Foreign Exchange Rates Report has been released by the Federal Reserve Board.

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