Top Story Security Related

The FDIC has issued two Financial Institution Letters to distribute joint statements by the members of the FFIEC relating to the risks of cyber-attacks.

• FIL-10-2014 includes an FFIEC statement describing risks related to recent cyber-attacks on ATMs and card authorization systems that have resulted in large dollar frauds, often called Unlimited Operations.
• FIL-11-2014 transmits a statement notifying institutions of the risks associated with the continued distributed denial of service (DDoS) attacks on public-facing Web sites and the steps institutions are expected to take to address the risks posed by such attacks.

• Prohibition Orders Issued By NCUA

  NCUA has issued prohibition orders against three individuals following the embezzlement of funds.
  Release;
  Order 1;
  Order 2;
  Order 3 2/27/04

• Preliminary Interest Rate Risk Measures

  OTS has released the preliminary Thrift Interest Rate Measures Risk Measures for the Fourth Quarter 2003.
  Risk Measures 2/27/04

• FDIC Issues Quarterly Banking Profile

  The Quarterly Banking Profile for the Fourth Quarter 2003 has been issued by the FDIC.
  Quarterly Profile 2/27/04

• OFAC Removes Address And Grants License

  The address of a SDGT has been removed from the OFAC SDN list and a General License has been granted regarding the lifting of the travel ban to Libya. Information concerning the removal and the license has been posted on the BOL OFAC page. 2/27/04

• Living Trust Interim Rule for CUs

  The amendment changes the existing rules concerning coverage for beneficial interests in living trust accounts. The rules are amended by eliminating the provisions that would limit insurance coverage where the interest of the beneficiary is subject to a defeating contingency in a living trust agreement. With the amendment, share insurance coverage of up to $100,000 is provided per qualifying beneficiary who, as of the date of an insured credit union's failure, would become the owner of assets in the living trust upon the account owner's death. 69FR8798 (txt) 69FR8798 (pdf) 2/26/04

• Greenspan Suggests Changes in SS Benefits

  In testimony before the House Budget Committee, Chairman Greenspan expressed concern over the impact the payment of Social Security benefits to the baby boom generation will have on the long term federal budget. He proposed that Congress consider replacing the current "cost of living" adjustments with the chained consumer price index (CPI) introduced by the Bureau of Labor Statistics in 2002 and raising the age at which benefits will be provided. Testimony 2/26/04

• International Reserve Position

  Treasury has released the U.S. International Reserve Position as of the week ending February 20, 2004.
  Reserve Position 2/26/04

• Greenspan - Freddie & Fannie Need Regulator

  In testimony before the Senate Banking, Housing and Urban Affairs Committee, Chairman Greenspan expressed concern regarding growth and scale of the Freddie Mac and Fannie Mae mortgage portfolios and of their leverage policies. He indicated that Congress needs to create a regulator for the government sponsored enterprises with authority on a par with that of banking regulators. Speech 2/25/04

• OFAC Adds bin Laden Loyalist

  The name of a bin Laden loyalist and al-Qaeda supporter has been added as a new SDGT entry to the OFAC SDN List. Information regarding the addition has been posted on the BOL OFAC page. 2/25/04

• Written Agreement With Ohio Bank

  The FRB has announced the execution of a Written Agreement by and among The Custar State Bank, Custar, Ohio; the Ohio Division of Financial Institutions, Columbus, Ohio; and the Federal Reserve Bank of Cleveland. The Agreement includes a provision which requires the bank to retain an independent consultant to conduct a comprehensive review of the bank's AML compliance.
  Written Agreement 2/25/04

• Regulator's Accounting and Capital Standards

  The federal financial institution regulators have issued their annual joint report to Congressional committees regarding difference in the accounting and capital standards among the agencies. Report 2/25/04

• PALS Best Practices Web Site Launched

  NCUA has unveiled a new web site designed to help credit unions share innovative programs to help attract new members. Over 300 ideas are organized into more than 50 program areas. Best Practices 2/25/04

• Comments Requested on Fair Credit Reporting Provisions

  The recently enacted FACT Act requires the FTC to adopt rules to prevent consumer reporting agencies from avoiding treatment as
  nationwide consumer reporting agencies. In this action, the FTC is adopting, and seeking comment on, an interim final rule that prohibits consumer reporting agencies from avoiding these obligations through any means, including corporate structuring or technological methods. 69FR8531 (txt) 69FR8531 (pdf) 2/24/04

• Evaluation Of Household Debt By Greenspan

  In a presentation before the Credit Union National Association 2004 Governmental Affairs Conference, Chairman Greenspan gave his views on understanding household debt burdens and the changes in the debt service and financial obligation ratios over time.
  Speech 2/24/04

• Special Alert Counterfeit Cashier's Checks

  A Special Alert has been issued by the FDIC concerning counterfeit cashier's checks drawn on Valrico State Bank, Valrico, Florida and 1st Mariner Bank, Baltimore, Maryland. Information regarding the counterfeit items has been posted on the BOL Alerts & Counterfeits page. 2/24/04

• Unauthorized Banking Special Alert

  The FDIC has issued a Special Alert regarding three entities that may be conducting unauthorized banking activities in the United States and/or Canada. Special Alert 2/24/04

• Electronic Interpretations and Actions

  The OCC has announced the February 2004 issue of Electronic Interpretations and Actions which includes five Interpretative Letters and four Corporate Decisions along with Approvals with Conditions, Final Enforcement Actions and CRA Evaluations.
  February Issue 2/24/04

• Working Papers Released

  The FRB has released new working papers in both the FEDS and the International Finance Discussion Papers series.
  FEDS;
  International 2/24/04

• FIL Regarding Announced SDNTKs

  The FDIC has issued FIL-20-2004 regarding previously announced additions to the OFAC list regarding SDNTKs and the blocking of the assets of one organization. Information regarding the additions was posted on February 18, 2004 on the BOL OFAC page. 2/24/04

• Earnings Credits Calculation Changed

  The Federal Reserve System has changed the rate used to calculate earnings credits on clearing balances. Earnings credits are now calculated based on 90 percent of a three-month T-bill rate in order to align our practices with those of the marketplace. Detailed information regarding clearing balances and earnings credits are found in Section IV of the FRB Services Account Management Guide.
  Guide 2/23/04

• February Bank Accounting Advisory Series

  The OCC has released the February 2004 edition of the Bank Account Advisory Series which expresses the Office of the Chief Accountant's current views on accounting topics of interest to bankers.
  Accounting Advisory Series 2/23/04

• Greenspan On Education and The Economy

  Learn the views of Chairman Greenspan on the critical effect of education on the economy from his remarks before the Annual Meeting of the Greater Omaha Chamber of Commerce.
  Speech 2/23/04

• 2003 Thrift Charge-Off Rates

  The OTS has released the Thrift Industry charge-off rates by asset types for 2003.
  Charge-Off Rates 2/23/04

• OTS Charges Officials Of Closed Bank

  The OTS has announced charges regarding alleged violations of federal banking laws against the former president and a former institution affiliated party of Dollar Savings Bank, Newark, New Jersey which was recently closed by OTS. The former president was ordered to post security in excess of $4 million, representing the amount of questionable withdrawals from the bank which occurred in a one week period prior to closing. Charges 2/20/04

• Five OCC Enforcement Actions Announced

  OCC has announced Enforcement Actions against three national banks and two individuals.
  Enforcement Actions 2/20/04

• OCC CRA Ratings Issued for Forty-Two Banks

  Forty-two CRA ratings for national banks have been made public by the OCC. Six institutions were rated outstanding, thirty-six were satisfactory and none were rated either needs to improve or substantial noncompliance. CRA Ratings 2/20/04

• FDIC Publishes CRA Guide

  The FDIC released a new publication, the "FDIC Community Development Investment Guide", designed to assist banks that are considering community development investments. The Guide explains how to determine if an investment is permissible and how investments can be structured to achieve a community development purpose. CRA Guide 2/20/04

• FR-CA CPS Revised

  FRB Financial Services has announced the revision of CPS to incorporate new certificate issuance and revocation processes for certificates used to access the FedImage Gateway Retrieval Service. CPS Revisions 2/20/04

• OFAC Adds Forty SDNTKs and One BPI-PA

  OFAC has added three entities and thirty-seven individuals as SDNTKs to the OFAC List in addition to blocking all the financial assets and real property of an Islamic foundation which has be integraded into the SDN list with the descriptor, BPI-PA. Information regarding these additions and designation has been added to the BOL OFAC page. 2/20/04

• 2004 HMDA Preliminary Census Data Online

  The FFIEC has posted the 2004 HMDA Preliminary Census Data online. The census tracts have been drastically changed due to the 2000 census and the OMB's new geographic classifications that significantly changed the way metropolitan areas are defined.
  2004 HMDA Census Data 2/19/04

• Final 2004 TFR Form Available

  The Final 2004 TFR Form and Schedules have been posted online by OTS.
  TFR Form 2/19/04

• Second Edition of FedFocus Released

  The Federal Reserve Financial Services has released the Second Edition of FedFocus which contains a special supplement on Check 21.
  FedFocus 2/19/04

• Thrifts 2003 Earnings Set Records

  OTS has announced that the thrift industy reported record net income and profitability in 2003.
  Highlights;
  Charts;
  Selected Indicators 2/19/04

• Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding cashier's checks that are missing from California Bank & Trust, San Diego, California and counterfeit cashier's checks drawn on RBC Centura Bank, Rocky Mount, North Carolina. Information regarding the missing and counterfeit items has been posted on the BOL Alerts & Counterfeits page. 2/18/04

• Cumulative Unauthorized Banking List

  The OCC has updated its cumulative list of entities that may be conducting unauthorized banking activities. The OCC list does not contain the names of entities furnished by state or foreign governments. Beginning in 2003, unauthorized bank lists have been issued as Special Alerts by the FDIC. They were previously issued as Financial Institution Letters.
  List
  FDIC Special Alerts 2/18/04

• OTS CRA Evaluations Released

  OTS has released the CRA ratings for savings associations that were made public during December 2003 and January 2004.
  December January 2/18/04

• December 2003 TIC Data Released

  Treasury has released the International Capital data for December 2003.
  TIC 2/18/04

• January Financial Holding Company Elections

  The list of bank holding companies that have elected as February 13, 2004 to become or be treated as financial holding companies under the Bank Holding Company Act has been issued by the FRB. FHC List 2/18/04

• G. 17 Industrial Production Report

  The FRB has issued the G.17 Industrial Production and Capacity Utilization report for January 2004.
  G. 17 2/18/04

• December 2003 Cost of Funds Reports Released

  The OTS has released the historical and current reports as December 2003 regarding the cost of funds for OTS regulated SAIF insured institutions. Historical; Current 2/18/04

• FIL Regarding Announced SDNs

  The FDIC has issued FIL-18-2004 concerning additions to the Cuban and Balkans SDN designations that were made to the OFAC list on February 9, 2004. Information regarding the additions was previously announced in a BOL Special OFAC Alert and placed on the BOL OFAC page. 2/18/04

• FDIC Insurance Funds Year-End Reports

  The FDIC has released the 2003 Year-End Reports for the FDIC and SAIF insurance funds.
  Reports 2/18/04

• FRB Grants 23A Exemption Request

  The FRB has released a legal interpretation which grants a request for an exemption from the quantitative limits of section 23A of the Federal Reserve Act and the Regulation W to allow a financial institution to acquire all the capital stock of an affiliate.
  Legal Interpretation 2/17/04

• OTS Closes Dollar Savings Bank

  The OTS has announced the closing of Dollar Savings Bank, Newark, New Jersey and the appointment of the FDIC as receiver.
  Closing 2/17/04

• OCC Issues Bulletin on Reg. CC Proposal

  The OCC has issued Bulletin 2004-11 regarding the previously announced proposal by the FRB to add a new subpart D to Reg. CC to implement the Check 21 Act. Information regarding the proposal and request for comment was included in the January 8, 2004 BOL Top Stories. 2/17/04

• 2003 FDIC Annual Report Posted

  The FDIC has posted on its web site its 2003 Annual Report which provides an overview of FDIC activities and operations during the year.
  Full Report;
  Index 2/17/04

• FIND Call Report Web Site Launched

  The federal bank regulators have jointly announced the launch of a web site that provides information on the FFIEC's Call Report Modernization initiative. The FIND (Financial INstitutions Data - Bank Call Reports) web site provides details on the development and implementation of a central data repository (CDR) for collection, processing, and distribution of bank financial data.
  FIND Web Site;   
  FRB PR;   
  OCC NR;   
  FDIC 2/13/04

• OCC Preemption Rule Discussed

  OCC Chief Counsel and First Senior Deputy Comptroller Williams discussed the OCC's new Preemption Rule and position on visitorial powers in a presentation before the Annual Legal Conference of the Independent Bankers Association of Texas and the Texas Savings and Community Bankers Association. She emphasized the importance of continuing cooperation between the States and the OCC in furthering consumer protection with respect to the institutions they regulate. Speech 2/13/04

• Tax Shelter Schemes Information Online

  The IRS has launched a new section on its web site containing important information about abusive schemes involving employee retirement plans. The site is intended to warn promoters and plan professionals about the consequences of participating in such schemes.
  Tax Shelter Schemes 2/13/04

• Regulators Issue Interagency Advisory

  An Interagency Advisory was issued by the federal financial regulators regarding accounting for deferred compensation agreements and bank-owned life insurance. Advisory;   
  OCC Bulletin;   
  OTS CEO Letter;   
  FDIC FIL    FRB SR 2/12/04

• Unauthorized Banking Activities Special Alert

  The FDIC has issued a Special Alert regarding entities that may be may be operating in the Cayman Islands, offering banking or other financial services to individuals, businesses or financial institutions located in the United States. The Cayman Islands Monetary Authority (CIMA) has published a list of financial entities whose Web sites note a Cayman Islands address, but the entities are neither registered nor licensed to carry on activities regulated by the CIMA.
  SA-9-2004;
  CIMA List 2/12/04

• FRB Reassigns Routing Numbers

  The FRB is amending appendix A of Regulation CC to delete the reference to the head office of the Federal Reserve Bank of Richmond and reassign the Federal Reserve routing symbols currently listed under that office to the Federal Reserve Bank of Richmond's Baltimore office and delete the reference to the Omaha check processing office of the Federal Reserve Bank of Kansas City and reassign the
  Federal Reserve routing symbols currently listed under that office to the Des Moines office of the Federal Reserve Bank of Chicago. 69FR6917 (txt) 69FR6917 (pdf) 2/12/04

• OFAC Issues Iraqi Intellectual Property IR

  An Interpretative Ruling regarding protection and transfer of intellectual property rights in Iraq has been issued by OFAC.
  OFAC IR 2/12/04

• Greenspan - Economic Prospects Good

  Chairman Greenspan presented the FRB's semiannual Monetary Policy Report to Congress. He indicated that the GDP is now expected to grow at a faster rate than was forecast in July 2003 and prospects are good for sustained expansion of the U.S. economy. In addition, a Federal Reserve survey indicates that banks had continued to tighten lending conditions early in the year, but by the second half, terms and standards were being eased noticeably. Testimony;
  Report 2/12/04

• FTC Issues Charity Scams Publication

  The FTC has issued a new consumer publication, “Charitable Donations: Give or Take?”, advising consumers on how to avoid potential charity scams. The agency indicates that more than 700,000 federally recognized charities are soliciting for charitable contributors. It contains very good information regarding questions your customers may be, or should be, asking prior to making a contribution.
  Scam Information 2/12/04

• Legal Interpretations Issued By FRB

  The FRB has issued legal interpretations regarding the grant of an exemption from the quantitative limits of Section 23A of the Federal Reserve Act and clarification of Section 106 of the Bank Holding Company Act which allows banks to require borrowers that obtain securities-based credit from the bank to keep the securities collateral in an account at a broker-dealer affiliate of the bank.
  23A;   
  106 2/11/04

• Features Added To FRB Web Site

  The FRB has announced a number of improvements to its web site, including the capability to view and submit comments on regulatory proposals. You can now submit your comments by email, view comments, review updates regarding the proposed Basel II Capital Accord and access personal finance educational tools. Email;   
  View Comments;   
  Basel II;   
  Tools 2/11/04

• FACT Act Effective Date Published

  The final rule establishing the effective date for various provisions of the FACT Act has been published in the Federal Register. This was previously announced on 2/6/04 on Top Stories.
  68FR6526 (txt) 68FR6526 (pdf)2/11/04

• FRB Working Papers Released

  The FRB has released working papers in its International Finance Discussion and FEDS series.
  International Finance;    FEDS 2/11/04

• Flood Violations Cost Ohio Bank

  The FRB has announced the issuance of a CMP in the amount of $9,500 against the Hocking Valley Bank, Athens, Ohio as the result of alleged violations Reg H and the National Flood Insurance Act. Violations Plan to attend the March 30th Webinar - Flood: What Your Lenders Need to Know 2/10/04

• Bulletin Regarding Announced Reg C Changes

  The OCC has issued Bulletin 2004-9 regarding two previously announced changes to Reg C involving the raising of the asset size exemption threshold for reporting HMDA data and the standards for defining MSAs. Information regarding the changes and the publication in the Federal Register was included in BOL Top Stories on December 29, 2003.
  2/10/04

• Counterfeit Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks issued by Coastal Federal Bank, Myrtle Beach, South Carolina and First Minnetonka City Bank, Minnetonka, Minnesota. Details regarding the counterfeit cashier’s checks and contact information have been placed on the BOL Alerts & Counterfeits page. 2/10/04

• OFAC Adds CUBA and BALKANS SDNs

  Ten entities have been designated CUBA SDNs and added to the OFAC List along with thirteen individuals who have identified as BALKANS SDNs. Information regarding the additions has been posted on the BOL OFAC page. 2/10/04

• OFAC Cites Twelve Institutions

  The February 2004 OFAC Civil Penalties Enforcement Information cites twelve financial institutions for fifteen violations of various sanctions programs. The penalties imposed ranged from $1,000 to over $34,000. Information regarding the violations and penalties are found on the BOL OFAC page. 2/9/04

• Regulators Issue NPR Updating CRA

  The federal banking and thrift regulators have issued a NPR regarding proposed upates to CRA. An ANPR issued by the regulators on July 21, 2001 resulted in about 400 comments which were considered in the drafting of the proposed rule.
  FRB;   
  OCC;   
  FDIC;   
  FIL;  
  OTS 2/9/04

• 2003 G.19 Report Released

  The FRB has released the G.19 report for 2003.
  G.19 2/9/04

• FACT Act Effective Dates Final Rules Issued

  The FRB and FTC have announced approval of joint final rules to establish effective dates for all provisions of the FACT Act that do not have a statutorily prescribed effective date. Final Rules;
  FRB PR;
  FTC NR 2/6/04

• FDIC CRA Examination Ratings Issued

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in November 2003. CRA Ratings 2/6/04

• CRA Changes Published

  The proposed CRA changes have now been published in the Federal Register. Comments are due April 6, 2004. 68FR5729 (txt) 68FR5729 (pdf) 2/6/04

• FRB Proposes Changes To PRS Policy

  The FRB has announced that it intends, beginning in July 2006, to require Reserve Banks to release interest and redemption payments on securities issued by government-sponsored enterprises and international organizations only when the issuer's Federal Reserve account contains sufficient funds to cover these payments. Comments are requested by April 16, 2004 on how best to promote a smooth market adjustment while implementing this change in the Policy. PRS 2/6/04

• International Reserve Position Report Released

  Treasury has issued the U.S. International Reserve Position report for the the week ending January 30, 2004.
  International Reserve 2/6/04

• C & D Against Former Credit Lyonnais Official

  The FRB has issued a Consent Order to Cease and Desist against Dominique Bazy, a former executive with Credit Lyonnais, S.A., Paris, France. He is prohibited from participating in the conduct of the affairs of domestic insured depository institutions without the FDIC's approval. C & D 2/5/04

• FDIC Issues Living Trust Fact Sheet

  The FDIC has issued an FIL regarding the previously announced changes to FDIC insurance coverage of living trust accounts and a fact sheet which provides examples of how the new coverage rules will work in most common situations.
  FIL-14-2004; Fact Sheet 2/5/04

• Unauthorized Banking Special Alert

  A Special Alert has been issued by the FDIC regarding four Canadian entities that may be conducting unauthorized banking activities in the U.S. or Canada. SA-7-2004 2/5/04

• HOEPA Points and Fee Trigger For 2004

  The HOEPA points and fee trigger for 2004 have been posted on the HOEPA section of HMDA Help Web site.
  HOEPA Trigger 2/5/04

• MERIT Examination Program Expanded

  The FDIC has issued a FIL announcing the expansion of the MERIT examination program to eligible, well-rated banks with total assets of $1 billion or less. FIL-13-2004 2/5/04

• Corporate Activities Final Rule

  The OCC has published a final rule in the Federal Register amending 12 CFR 5.2 regarding electronic filings and procedures for filings under exceptional circumstances or for unusual transactions.
  Corporate Activities 2/4/04

• World Banking Systems Examined

  The OCC has issued a working paper, "Comparative International Characteristics of Banking", which compares the key characteristics of the world's banking systems.
  Characteristics 2/4/04

• FOIA 2003 Annual Report Released

  The FRB has released the Freedom of Information Act Annual Report for fiscal year 2003.
  FOIA Report 2/4/04

• Senior Loan Officer Opinion Survey

  The FRB has issued the results of the January 2004 Senior Loan Officer Opinion Survey regarding changes in the supply of, and demand for, bank loans to businesses and households over the past three months. Survey 2/4/04

• New Savings Accounts Proposed

  Treasury has announced that the President’s FY 2005 Budget includes the following new savings initiatives: Retirement Savings Accounts, Lifetime Savings Accounts, Employer Retirement Savings Accounts, and Individual Development Accounts.
  New Accounts 2/3/04

• Market Financing Estimates Announced

  Treasury has announced the estimates of net borrowing of marketable debt for the first two Quarters of 2004.
  Borrowing Estimates 2/3/04

• January Foreign Exchange Rates Released

  The FRB has issued the January 2004 monthly G.5 Foreign Exchange Rates Statistical Release.
  G.5 2/3/04

• November 2003 G.20 Report Released

  The FRB has released the G.20 Finance Companies report for November 2003.
  G.20 2/3/04

• December Enforcement Actions Released

  The FDIC has released the administrative enforcement actions taken against banks and individuals in December. A total of 18 orders in December, included two cease-and-desist orders, one removal-and-prohibition order, three civil money penalty orders, five terminations of cease-and-desist orders, six terminations of insurance, and one adjudicated decision.
  Enforcement Actions 2/2/04

• Formation of Dormant Bank To Be Studied

  The FRB has established a private-sector Working Group on New Bank Implementation to further develop the concept of a dormant bank that would be available for activation, if necessary, to clear and settle U.S. government securities.
  Dormant Bank 2/2/04

• IFDP Covers China and Deflation

  The FRB has posted a new International Finance Discussion Paper on its Web site, Is China "Exporting Deflation"?.
  China 2/2/04

An NCUA order has been issued prohibiting the former employee of a California credit union from participating in the affairs of any federally insured financial institution. He had been sentenced to five years of probation, with the first year served in county jail; ordered to stay away from the credit union; enter into a gambling addiction treatment program and pay restitution in the amount of $606,541.33.

A federal court judge has issued a temporary order halting a scam by the defendants who targeted and called senior citizens, lied to them to get their bank account information, and used this information to withdraw money from their bank accounts. The FTC alleges that the defendants' conduct violated the FTC Act and the FTC's Telemarketing Sales Rule, and that the telemarketing scheme drew in over $20 million between May 2011 and December 2013. The defendants used a telemarketing boiler room in Canada to cold-call seniors claiming to sell fraud protection, legal protection, and pharmaceutical benefit services.

An NCUA order has been issued prohibiting the former employee of a California credit union from participating in the affairs of any federally insured financial institution. He had been sentenced to five years of probation, with the first year served in county jail; ordered to stay away from the credit union; enter into a gambling addiction treatment program and pay restitution in the amount of $606,541.33.

• FinCEN's PACS Reaches One Million Filings

  In a presentation before The Financial Enforcement Network, FinCEN Director Fox noted that the number of filings made utilizing PACS had reached one million, but that accounts for only 4% of the total filings. He observed that one of FinCEN's toughest challenges is to streamline the CTR system to weed out unnecessary filings. He also stated that compliance is not a "check-the-box" exercise, but rather requires financial institutions to exercise their judgment, as informed by FinCEN's guidance and assistance. Speech 1/30/04

• Interpretations and Actions - January Issue

  The OCC has posted the January 2004 issue of Interpretations and Actions on its Web site.
  Electronic Interpretations and Actions 1/30/04

• January FEDS Papers Released

  The FRB has released three new working papers in the finance and economics discussion series on the topics of: Monetary Policy in Deflation: The Liquidity Trap in History and Practice; Market Structure and Market Definition: The Case of Small Market Banks and Thrifts; and Measuring the Effects of Monetary Policy: A Factor-Augmented Vector Autoregressive (FAVAR) Approach.
  Monetary Policy;
  Market Structure;
  Measuring 1/30/04

• International Reserve Positions Issued

  Treasury has issued the U.S. International Reserve Positions for the weeks ending January 9 and 16.
  International Reserve Positions 1/30/04

• OTS 2004 Performance Plan Released

  The OTS has release its budget/performance plan for 2004. 2004 Plan
  1/30/04

• Thirty-three CRA Evaluations Released

  The OCC has released the CRA evaluations for thirty-three national banks. Nine banks were rated were outstanding and twenty-four received a satisfactory designation. None were reported as improve or substantial noncompliance.
  CRA 1/29/04

• OCC Defends Preemption Rule

  Julie L. Williams, First Senior Deputy Comptroller and Chief Counsel for the OCC, indicated in testimony before the House Financial Services Subcommittee on Oversight and Investigations that new regulations regarding preemption and the OCC’s exclusive visitorial powers to regulate and supervise national banks are firmly grounded in Federal law, judicial precedent and the U.S. Constitution. She stated that the OCC has zero tolerance for lending that is unfair, abusive, deceptive or predatory.
  Testimony
  Oral Statement 1/29/04

• Debt Elimination Scams SR Letter Issued

  The FRB has issued a Supervisory Letter regarding various illegal schemes being offered to the public that purport to eliminate outstanding debt through the use of specially prepared documents which are presented to the borrower's creditor's in an attempt to satisfy the debt. The scams are reminiscent of the tax protesters' tax evasion schemes seen throughout the 1990s.
  SR 04-3 1/29/04

• 2003 Terrorist Asset Report Issued By OFAC

  OFAC has released the calendar year 2003 Annual Report on Assets in the United States of Terrorist Countries and International Terrorist Program Designees. Approximately $6 million in assets of designees have been blocked and almost $2 billion in assets of terrorist countries are under U.S. jurisdiction.
  Terrorist Asset Report 1/29/04

• Stolen Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding cashier's checks stolen from the Citizens Savings Bank and Trust Company, Nashville, Tennessee. Details regarding the counterfeit cashier’s checks and contact information have been placed on the BOL Alerts & Counterfeits page. 1/29/04

• Financial Literacy Meeting To Be Webcast

  The inaugural meeting of the Financial Literacy and Education Commission will be held on Thursday, January 29 and will be available for viewing on a live Webcast starting at 10:30 am EST.
  Treasury PR:
  Webcast 1/29/04

• FOMC Announces Fed Funds Target Rate

  The FOMC has announced its target for the Federal funds rate. The Committee believes that an accommodative stance of monetary policy, coupled with robust underlying growth in productivity, is providing important ongoing support to economic activity.
  Target Rate 1/29/04

• FIL Regarding Announced SDNs

  The FDIC has issued FIL-12-2004 concerning three SDNs that were added to the OFAC list on January 22, 2004. Information regarding the additions was previously announced in a BOL Special OFAC Alert and placed on the BOL OFAC page. 1/29/04

• Comments Sought on Call Report Revisions

  The OCC, FRB and FDIC have issued and published in the Federal Register a Notice and Request for Comments regarding proposed revisions of Call Report Forms FFIEC 031 and FFIEC 041. Notice
  1/28/04
  
  

• Greenspan On Economic Flexibility

  In a presentation before the HM Treasury Enterprise Conference in London, Chairman Greenspan noted deregulation and the newer information technologies have joined to advance financial flexibility which may be the most important contributor to the significant gains in economic stability over the past two decades. He also observed that the United States have not engaged in significant and widespread protectionism for more than five decades and the consequences of moving in that direction could be unexpectedly destabilizing. Speech 1/27/04
  
  

• Mad Cow Guidance Issued

  The OCC has issued the first AL of 2004 which offers guidance to national banks on compliance with legal lending limits related to declines in the collateral value of cattle as a result of public perception of the recent Mad Cow disease issue in the U.S. OCC examiners will treat noncompliance as an "extraordinary circumstance" for the next 180 days.
  OCC AL 2004-1 1/26/04

• FTC To File Amicus Brief in FCRA Case

  The FTC will file an amicus brief in the appeal of court decision involving FCRA and adverse action notices. The plaintiffs allege that Hartford Financial Services used information in credit reports to set the initial rate for the insurance it offers consumers. The plaintiffs claim that Hartford violated the FCRA by failing to provide customers with adverse action notices if a high rate was offered due to unfavorable credit information. The decision of the district court held that the FCRA’s definition of adverse action does not encompass setting a higher initial price for insurance.
  FTC Brief 1/26/04
  
  

• FDIC Insurance Fictitious Emails

  The OCC and FDIC have issued alerts to financial institutions and consumers regarding fraudulent e-mails that have the appearance of being sent from the agencies and informs recipients that their FDIC insurance has been suspended for alleged violations of the USA PATRIOT Act. The fake emails are the subject of a new BOL Blog which contains the text of the scam.
  BOL Blog
  OCC AL 2004-5
  FDIC SR-5-2004 1/26/04
  
  

• FinCEN Director Makes First Public Address

  In a presentation before the South Carolina Bar Association, FinCEN Director Fox discussed FinCEN’s implementation of anti-money laundering and anti-terrorism financing provisions of the USA PATRIOT Act.
  Speech 1/26/04
  
  

• Credit Union 2003 Highlights Detailed

  Chairman Dollar reviewed the highlights of credit union accomplishments during 2003 and the challenges of 2004 in a presentation at the winter meeting of the American Association of Credit Union Leagues.
  Speech 1/26/04

• Online Financial Education Newsletter Released

  The Treasury's Office of Financial Education (OFE) has released the first issue of its on-line, quarterly newsletter, The Treasury Financial Education Messenger. A featured article lists the eight elements of a successful financial education program and offers guidance to financial education organizations as they develop programs and strategies to achieve the greatest impact in their communities. Messenger 1/23/04

• ID Theft Tops FTC Complaint List

  The FTC has released its annual report listing the top 10 fraud complaint categories reported by consumers in 2003. The report indicates over 516,000 complaints were received in 2003 and also identifies the metropolitan areas that experienced the highest per capita rates of consumer fraud and identify theft. FTC Report 1/23/04

• Bank Strategies to Assist Small Businesses

  The OCC has published the Winter 2003 issue of the Community Developments Newsletter focusing on bank support for small businesses through innovative investments, loans, and technical assistance. Newsletter 1/23/04

• U.S. and Saudis Fight Terrorist Financing

  The United States has joined with Saudi Arabia to designate four branches of the Al-Haramain charitable organization in Kenya, Tanzania, Indonesia, and Pakistan for providing financial, material, or logistical support to terrorist organizations like al-Qaida. As a result, OFAC has added four new SDGTs, each with numerous a.k.a.s, to the SDN list. Information regarding the additions was included in a BOL OFAC Alert and has been posted on the BOL OFAC page. Joint Action 1/23/04

• Managing Through a Rising Rate Scenario

  OTS Director Gilleran examined the condition of the thrift industry and commented on how to manage through a rising rate scenario in a presentation before the Exchequer Club of Washington, D.C. Speech 1/22/04

• OCC Enforcement Actions Announced

  The OCC has announced 15 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks in Texas, Florida, Illinois, Oklahoma, Arizona, Colorado, California, and Ohio.
  Enforcement Actions 1/21/04

• FDIC Amends Insurance Coverage for Living Trust Accounts

  The FDIC is amending its regulations to clarify and simplify the deposit insurance coverage rules for living trust accounts. The
  rules are amended to provide coverage up to $100,000 per qualifying beneficiary who, as of the date of an insured depository institution
  failure, would become the owner of the living trust assets upon the account owner's death. 68FR2825 (txt) 68FR2825 (pdf) 1/21/04

• Regulators Announce CRA NPR

  The FDIC has announced approval of a joint interagency NPR regarding CRA. The FRB, OCC, and OTS are expected to announce their approval shortly. The NPR proposes to amend the CRA regulations definition of "small bank"; to expand and clarify the provision that an institution's CRA evaluation is adversely affected when the institution has engaged in specified discriminatory, illegal, or abusive credit practices in connection with certain loans; and to revise the regulations to provide that the CRA disclosure statement would contain the number and amount of the institution's small business and small farm loans by census tract. FDIC PR 1/21/04

• OTS Issues SCRA CEO Letter

  OTS has issued a CEO Letter that highlights the differences between the SCRA and the SSCRA.
  CEO Letter

• OTS Interest Rate Projections

  The Interest Rate Projections for Capital Plans for the Fourth Quarter 2003 have been released by OTS.
  Projections 1/21/04

• FIL Regarding Announced OFAC Changes

  The FDIC has Issued FIL-9-2004 regarding previously announced changes to the OFAC List involving FTO and SDN entries. Information concerning the changes was the subject of a BOL OFAC Alert on January 12 and has been posted on the BOL OFAC page. 1/21/04

• January Financial Holding Company Elections

  The list of bank holding companies that have elected as January 16, 2004 to become or be treated as financial holding companies under the Bank Holding Company Act has been issued by the FRB.
  FHC 1/21/04

• OCC Updates Licensing Manual

  The "Business Combinations" booklet of the Comptroller's Licensing Manual has been revised to incorporate recent regulatory and policy changes, such as a bank’s combination with a nonbank subsidiary or affiliate, transactions with affiliates, and anti-money laundering effectiveness. Update 1/20/04

• Transcript Regarding B of A/Fleet Application

  The transcript of the public meeting held regarding the application of Bank of America to acquire FleetBoston Financial Corporation has been released by the FRB.

  Transcript 1/20/04

• Budget Increase Proposed For FinCEN

  The Bush Administration has announced that it will propose a 12.7% increase in the budget of FinCEN to allow the continued acquisition and upgrading of technology and resources utilized in the fight against terrorism and financial crimes.

  Treasury JS-1100 1/20/04

• G. 17 Industrial Production Report

  The FRB has release the G. 17 Industrial Production and Capacity Utilization report for December 2003.
  G.17 1/20/04

• OFAC Adds SDGT

  A SDGT entry has been added to OFAC's SDN list. Information regarding the addition was the subject of a BOL OFAC Alert and has been posted on the BOL OFAC page. 1/20/04

• FDIC Expands Fair Lending Exam Program

  The FDIC has announced that it has expanded its fair lending examination program nationwide by appointing examination specialists in each of its six regions. FDIC PR 04-2004 1/16/04

• FRB Issues Business Continuity Guide

  The National Business Continuity Guide provides continuity information for all Federal Reserve products and services in the unlikely event of a business disruption. The guide provides specific product and service information on steps to take to prepare for and actions to be taken if a Federal Reserve business disruption occurs. Guide 1/16/04

• FTC Obtains $23.5 Million Settlement

  The FTC has accepted $23.5 million to settle charges that Certified Merchant Services violated the FTC Act while providing merchants with credit-card payment services. The payment to the FTC came from a forced sale of CMS’s assets, and the parties agree that it will provide full redress to merchants. Settlement 1/16/04

• Third Quarter 2003 Z. 1 Flow of Funds

  The FRB has released the Z. 1 Flow of Funds Accounts of the United States report for the Third Quarter 2003.
  Flow 1/16/04

• Securities Disclosures Final Rule

  The OCC has issued a Bulletin regarding the previously announced Final Rule regarding reporting and disclosure requirements for National Banks with securities registered under the Securities Exchange Act of 1934. Information regarding the Final Rule was posted in the December 10, 2003 BOL Top Stories. 1/16/04

• Credit Rating and Scoring Conference

  The OCC has posted the program and registration information online for a Credit Rating and Scoring Conference to be held on May 17-19 in Alexandria, Virginia. The conference will bring together technical experts from financial institutions, regulatory authorities, academia, and the model vendor community which specialize in retail or commercial risk rating model design, data collection, use and performance evaluation to discuss areas of common interest. Program 1/16/04

• Counterfeit Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks issued by Saehan Bank, Los Angeles, California and Coastal Community Bank, Everett, Washington. Details regarding the counterfeit cashier’s checks and contact information have been placed on the BOL Alerts & Counterfeits page. 1/16/04

• November 2003 Cost of Funds Reports Released

  The OTS has released the historical and current reports as November 2003 regarding the cost of funds for OTS regulated SAIF insured institutions. Historical Report Current Report 1/16/04

• March 2004 TFR Instructions

  OTS has issued revised instructions for the March 2004 TFR regarding only new, modified, or renumbered lines. The instructions for any line listed on the 2004 form that is not listed in the revision remain unchanged.
  TFR 1/15/04

• SEC Proposes Securities Law Reforms

  The SEC has proposed three regulatory initiatives designed to better protect the 95 million investors in mutual funds. These initiatives represent the next in a series of securities law reforms pursued by the Commission to address problems identified with the management and sale of mutual funds.
  Initiatives 1/15/04

• Beige Book Updated

  The FRB has released a new edition of the Beige Book based on information collected before January 6, 2004.
  Beige Book 1/15/04

• FDIC Letter To Stakeholders

  The FDIC has issued a Letter to Stakeholders which contains highlights of 4th Quarter 2003 activities and year-end financial statistics.
  Letter 1/15/04

• Fall 2003 Statistics of Income Bulletin

  The IRS has issued the Statistics of Income Bulletin for the Fall 2003 which contains a detailed look at 130.3 million individual returns for Tax Year 2001.
  Income Bulletin 1/15/04

• Reg B Spousal Signatures Guidance Issued

  The FDIC has issued a guidance to assist banks in complying with the spousal signature provisions of ECOA and Regulation B, 12 CFR Part 202.
  FIL-6-2004 Guidance 1/14/04

• Living Trust FDIC Insurance Rules Simplified

  The FDIC has decided to simplify the insurance rules for deposits held in connection with a living trust. The new rules will become effective April 1, 2004, but the FDIC will apply the new rules to living trust deposits at any insured institution that fails between now and April 1 if doing so would benefit the affected depositors.
  Living Trust Insurance 1/14/04

• OCC Bulletin Regarding Preemption

  The OCC has issued Bulletin 2004-6 regarding the previously announced Final Rules concerning Preemption and Visitorial Powers. The Final Rules were the subject a BOL Special Briefing on January 7. 1/14/04

• Greenspan On Globalization

  Chairman Greenspan expressed his opinion on the globalization of the economic framework of various nations during a presentation in Berlin. He noted the question of whether globalization will be allowed to proceed rests largely on the judgment of whether greater economic freedom is deemed by leaders in societies to enhance the interests of their populations.
  Speech 1/14/04

• FYI: Bull Market and Defined Benefit Plans

  The FDIC posted a FYI article entitled, "Could a Bull Market Be a Panacea for Defined Benefit Pension Plans?".
  FYI 1/14/04

• Quarterly Journal Online

  The June 2003 issue of the OCC Quarterly Journal, Vol. 22, No. 2 for the first quarter calendar year 2003, is now available on-line in PDF and in print.
  Quarterly Journal 1/14/04

• Bank Examiners Going to Iraq

  The OCC has announced that a team of bank examiners is going to Iraq to assist in the establishment of a Iraqi bank supervision department.
  Examiners 1/14/04

• Community Development Aids Introduced

  The FRB has announced the availability of three new products to promote community development activities. The Fiscal Impact Tool (FIT) is an automated system that analyzes the potential impact of economic development projects, Lessons Learned: Community and Economic Development Case Studies is a database that profiles the practices and programs used in various communities to finance economic development, and the Community Development Investments web site is a source for information about Federal Reserve policies and guidelines that promote investment by bank holding companies and state-member banks in community development activities.
  FRB PR;   Web Site 1/13/04

• FinCEN Updates Web Page

  FinCEN has added a link to subscribe to FinCEN QuickNews and a new section, Comments on Regulatory Proposals, to its Web Page.
  QuickNews;    Comments 1/13/04

• FFIEC 002 December Report Form

  The December 2003 FFIEC 002 Report Form has been posted on the FFIEC Web Site. 002 Report Form 1/13/04

• January Financial Holding Company Elections

  The list of bank holding companies that have elected as January 9, 2003 to become or be treated as financial holding companies under the Bank Holding Company Act has been issued by the FRB. Financial Holding Companies 1/13/04

• OFAC Updates SDGTs

  As noted in Monday's BOL OFAC Alert, OFAC some "[FTO][SDGT]" entries have been changed on OFAC's SDN list. Information regarding the changes has been added to the BOL OFAC page. 1/13/04

• Federal Register Publishes OCC Preemption and Visitorial Rules

  The OCC issued two regulations, one which clarifies what types of state laws apply to national banks, and a second which clarifies issues related to the OCC's exclusive visitorial powers over national banks. In addition, the OCC has published a number of documents explaining the rulemakings on national bank preemption and the OCC's visitorial powers. First announced in a special briefing from BOL on 1/7/04. 69FR1904 txt 69FR1904 pdf 69FR1895 txt 69FR1895 pdf 1/13/04

• FDIC Summarizes Reg B Changes

  The FDIC has issued a FIL that summarizes the FRB amendments to Regulation B and the Official Staff Interpretations of the regulation. Compliance becomes mandatory on April 15, 2004.
  FDIC FIL-5-2004 1/12/04

• OCC Licensing Manual Updated

  The revised "Branches and Relocations" booklet of the Comptroller's Licensing Manual series is available on the OCC's Internet site. The revisions incorporate recent policy and procedure changes regarding the bank's ability to file a branch or relocation application or notice electronically using e-Corp and include a modified discussion about opening temporary branches in disaster areas.
  Branches and Relocations 1/12/04

• EOs Issued Against Virginia Banker

  The FRB has issued an Order of Prohibition and Order to Cease and Desist against a former vice president of the James Monroe Bank, Arlington, Virginia based on his alleged participation in violations of law and unsafe or unsound practices regarding identity theft, falsification of bank records, misapplication of bank funds, self-dealing and violations of institutional internal controls that resulted in losses and other damage to the bank and personal gain.
  Orders 1/12/04

• FRB Makes Change to Processing Office

  The FRB is amending appendix A of Regulation CC to delete the reference to the Miami check processing office of the
  Federal Reserve Bank of Atlanta and reassign the Federal Reserve routing symbols currently listed under that office to the Jacksonville
  office of the Federal Reserve Bank of Atlanta. 69FR1655 (txt) 69FR1655 (pdf) 1/12/04

• 2004 CAC Members and Officers Named

  The FRB has named nine new members to its Consumer Advisory Council for three-year terms and designated a new Chair and Vice Chair of the Council for 2004.
  CAC 1/12/04

• December 2003 Agricultural Finance Databook

  The FRB has issued the December 2003 edition of the E.15 Agricultural Finance Databook which contains sections listing: Amount and Characteristics of Farm Loans Made by Commercial Banks; Selected Statistics from the Quarterly Reports of Condition of Commercial Banks; and Reserve Bank Surveys of Farm Credit Conditions and Farm Land Values.
  E.15 1/12/04

• FRB Enforcement Action Against French Bank

  The FRB and Commission Bancaire, the regulator of French banks, have announced the issuance of a consent enforcement action against Credit Lyonnais, S.A. and its parent company. This action results from Credit Lyonnais's participation in the rehabilitation of the Executive Life Insurance Co. of California.
  Enforcement Action 1/9/04

• 18 Entities Conducting Unauthorized Banking

  The FDIC has issued a Special Alert regarding 18 Canadian entities that may be conducting unauthorized banking activities in the U.S. and Canada. SA-3-2004 1/9/04

• Internet Con Artists Also ID Thieves

  A federal district court has pulled the plug on two defendants who used stolen identities to sell nonexistent goods in online auctions making it appear that innocent third parties were guilty of fraud. The defendants opened numerous accounts on Internet auction Web sites, sold merchandise, accepted payment from consumers, and then failed to deliver the promised merchandise. The defendants set up bank accounts and post office boxes in other people’s names and directing that payment be sent to them. As a result, consumers and law enforcers believed that the identity theft victims were responsible for the auction fraud. Case Information 1/9/04

• 2003 Reserve Bank Income

  The Reserve Bank income and expense data and transfers to the Treasury for 2003 have been released by the FRB. Income 1/9/04

• Four FEDS Papers Released

  The FRB has released four new FEDS papers entitled: The Responses of Wages and Prices to Technology Shocks, A Utility-Based Welfare Criterion in a Model with Endogenous Capital Accumulation, Optimal Monetary Policy in a Micro-founded Model with Parameter Uncertainty, and Testing Conflicts of Interest at Bond Rating Agencies with Market Anticipation: Evidence that Reputation Incentives Dominate.
  Responses;   
  Welfare Criterion;   
  Monetary Policy;   
  Testing Conflicts
  1/9/04

• November G. 19 Report Issued

  The FRB has issued the G.19 Consumer Report for November 2003. G. 19
  1/9/04

• FILs Regarding Recent OFAC Changes

  The FDIC has issued FIL-2-2004 and FIL-2004 regarding changes to the OFAC list and a general license issued under the Iranian Sanctions Program. Information regarding the changes and the license were previously posted on the BOL OFAC page. 1/9/04

• CIP FAQs

  The regulatory agencies have jointly released FAQs regarding CIP. While the agencies recognize that every question hasn't been ansewered, the list of Q&As contains a wealth of useful information.
  FINCEN CIP FAQ 1/8/04

• Court Lowers Boom On Credit Card Scam

  A federal district court has entered a temporary restraining order enjoining the owners of a nationwide telemarketing operation from making misrepresentations to consumers in addition to freezing the owners’ assets. The FTC filed an action against the defendants alleging that they violated the FTC Act by misrepresenting that consumers were likely to receive an unsecured major credit card and violated the GLBA by using false or fictitious statements to obtain consumers’ bank account information. Court Order 1/8/04

• Clearing Bank Interruption Recommendations

  The FRB has released the report of the private-sector Working Group on Government Securities Clearance and Settlement and endorsed its recommendations. The Working Group, formed by the Board following September 11, 2001, recommended nine steps to mitigate risks to the financial system from the interruption or termination of the services of a clearing bank as the result of either operational or non-operational problems. Report
  1/8/04

• Federal Register Publishes Reg CC Proposal

  The FRB is publishing for comment proposed amendments to Regulation CC that would add a new subpart D, with commentary, to implement the recently-enacted Check Clearing for the 21st Century Act. These proposed amendments (1) would set forth the requirements of the Act that apply to banks, (2) provide a model disclosure and model notices relating to substitute checks, and (3) set forth indorsement requirements and truncating bank and reconverting bank identification requirements for substitute checks. The proposed amendments also would clarify some existing provisions of the rule and commentary. 69FR1469 (txt) 69FR1469 (pdf) 1/8/04

• OCC Issues Preemption and Visitorial Rules

  The OCC issued two regulations, one which clarifies what types of state laws apply to national banks, and a second which clarifies issues related to the OCC's exclusive visitorial powers over national banks. In addition, the OCC has published a number of documents explaining the rulemakings on national bank preemption and the OCC's visitorial powers.
  Statement from the Comptroller;
  Press Release 2004-03; Final Rule: Preemption; Final Rule: Visitorial Powers;
  Questions and Answers on the Preemption Rulemaking; Questions and Answers on the Visitorial Powers Rule; A chart comparing OCC's preemption rule with those of the Office of Thrift Supervision and the National Credit Union Administration.

• SSCRA Rewritten

  A new federal law called the Servicemembers Civil Relief Act rewrites the Soldiers' and Sailors' Civil Relief Act of 1940. It clarifies various limitations on creditors and other parties who do business with service members, adds certain new protections for those in military service, and requires a servicemember to provide written notice and a copy of the military orders in order to invoke the interest cap provision. Servicemembers Civil Relief Act Webinar 1/7/04

• OTS CEO Letter Regarding HMDA

  OTS has issued a CEO Letter which summarizes the significant changes affecting the way thrifts report 2004 HMDA data as a result of the implementation of amendments to Reg C. CEO Letter 1/7/04

• OCC Proposed Change in Asset Composition of a Bank

  The OCC is proposing to amend its regulations to require a national bank to obtain the approval of the OCC before two types of fundamental changes in the composition of the bank's assets: (1) Changing the composition of all, or substantially all, of its assets through sales or other dispositions or, (2) after having sold or disposed of all or substantially all of its assets, subsequently purchasing or otherwise acquiring assets. The proposal also provides that, in the second case, the OCC will apply, among other factors,
  the same factors as it applies to the establishment of a de novo bank. 69FR892 (txt) 69FR892 (pdf) 1/7/04
  
  

• FTC Issues Enforcement Report To FRB

  The FTC has issued a report to the FRB regarding enforcement activities conducted during 2003 regarding violations of TILA, CLA, ECOA, and EFTA. The information will be incorporated into the FRB’s annual report to Congress. FTC Report 1/7/04

• International Reserve Position Issued

  Treasury has released the U. S. International Reserve Position for the week ending January 2. Reserve Position 1/7/04

• Providing Financial Support To Funds Alert

  Federal regulators have issued an interagency policy statement alerting financial institutions to the safety and soundness and legal issues involved in providing financial support to investment funds advised by the institution or its subsidiaries or affiliates.
  FRB PR;   
  FRB Statement;   
  OCC Bulletin 2004-2;   
  OCC Statement;   
  FDIC FIL-1-2004 ;   
  FDIC Statement;   
  OTS PR 1/6/04

• FDIC CRA Evaluations

  The January 2003 list of state nonmember banks recently evaluated for CRA compliance has issued by the FDIC. The list covers evaluation ratings that the FDIC assigned to the institutions in October 2003.
  FDIC CRA 1/6/04

• October 2003 G.20 Report Released

  The FRB has released the G.20 Finance Companies report for October 2003.
  G.20 1/6/04

• 314(a) Contact Information To Be Automated

  The OCC has issued an alert to provide notice to all national banks and federal branches that during the first quarter of 2004 an automated process will be implemented to create and maintain FinCEN’s electronic 314(a) distribution list utilizing the information provided on Call Reports.
  OCC Alert 2004-1 1/6/04
  
  

• FDIC Consumer News 10th Anniversary

  The FDIC has released a special 10th anniversary edition of the Consumer News containing articles on the following topics: Tips You Can Bank On; An FDIC Guide to Being a Smarter, Safer Financial Consumer; You and Your Bank; Deposits and Deposit Insurance; Loans and Credit Cards; Fighting Fraud; and Family Matters.
  Consumer News 1/6/04
  
  

• Electronic Filing Final Rule Published

  The OCC has published a final rule that permits national banks to file any class of corporate applications electronically. The final rule, which is effective February 2, 2004, adopts without change the interim rule which is currently in effect.
  Final Rule 1/5/04

• OCC Bulletin Regarding BSA Travel Rule

  The OCC has issued Bulletin 2003-1 regarding the notice issued by FinCEN of the permanent expiration of the conditional exception to the BSA Travel Rule which was previously reported in BOL Top Stories on December 2, 2003.
  Top Stories
  1/5/04

• Five Financial Institutions Penalized By OFAC

  The January 2004 OFAC Civil Penalties Enforcement Information cites five financial institutions for violations of various sanctions programs. The penalties imposed ranged from $4,000 to over $73,000. Information regarding the violations and penalties are found on the BOL OFAC Page.
  1/5/04

• Greenspan Reviews Monetary Policy

  The key developments of the past decade and a half of monetary policy were analyzed by Chairman Greenspan in a presentation before the American Economic Association. He observed that perhaps the greatest irony of the past decade is that the gradually unfolding success against inflation may well have contributed to the stock price bubble of the latter part of the 1990s.
  Speech
  1/5/04

• 2003 Foreign Exchange Rates Released

  The FRB has issued the 2003 annual and December monthly G.5 Foreign Exchange Rates Statistical Releases.
  G.5 Monthly;
  G.5A Annual
  1/5/04
  
  

• November FDIC Enforcement Actions

  The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in November which included three cease-and-desist orders, three civil money penalty orders, two removal-and-prohibition orders, one modification of a prohibition order, and one termination of a previously issued cease-and-desist order.
  Enforcement Actions 01/02/04

• Removal, Prohibition and CMP Issued

  The FDIC has issued a removal and prohibition order and imposed a $5,000 civil money penalty against a former executive vice president of Heartland Community Bank, Franklin, IN.
  Orders CMP 01/02/04

• FinCEN Terrorist Information Number

  FinCEN has added to the top of its Web page the telephone number that financial institutions should call to report suspicious activity that may relate to terrorist activity.
  FinCEN 01/02/04

• California Earthquake Relief Guidelines

  FDIC has issued an FIL encouraging banks to work constructively with borrowers who were adversely affected by the California earthquakes. The FDIC has prepared guidelines, which state that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution.
  FIL-100-2003 Guidelines 01/02/04

• OFAC Issues Iranian Relief License

  OFAC has issued a General License authorizing cash donations to nongovernmental entities engaged in humanitarian relief activities in response to the earthquake in Bam, Iran. Information regarding the license has been placed on the BOL OFAC page. 01/02/04

• E16 Country Exposure Data Released

  The FFIEC has issued the September 30, 2003 E16 Country Exposure Statistical Release and the Country Exposure Information Report. Release; Report. 01/02/04

• International Reserve Position Released

  The U. S. International Reserve Position for the week ending December 26 has been released by Treasury. Reserve Position 01/02/04

• OTS Quarterly Review of Interest Rate Risk

  OTS has released the Third Quarter 2003 Review of Interest Rate Risk which reports an increase in median interest rate sensitivity. Quarterly Review 12/31/03

• CU Share Insurance Rules Changed

  The Federal Register publication of final changes to NCUA's share insurance rules has been made. The final rules simplify and clarify the rules and provide parity with the deposit insurance rules of the Federal Deposit Insurance Corporation (FDIC).   68fr75111.txt (text) 68fr75111.pdf (pdf)12/30/03

• NCUA Loan Participation Rule Finalized

  The NCUA's final rule, which clarifies loan participation rules for credit unions, has been published in the Federal Register. It is effective January 29, 2004.    68fr75110.txt (text) 68fr75110.pdf (pdf)12/30/03

• Interagency Privacy Proposals Published

  Want more options when it comes to providing GLB privacy notices? The regulators are considering giving you some alternatives, as evidenced by this Interagency proposed to consider alternative forms of privacy notices published in the Federal Register. 68fr75164.txt (text) 68fr75164.pdf (pdf)12/30/03

• Assessing Consumer Compliance Risk

  The FRB has issued a SR regarding the development of an enhanced framework for the supervision of consumer compliance risk at LCBOs and LBOs that are subject to the regulator's continuous supervision program.   SR 03-22;   Framework 12/30/03

• Three New IFDPs Available Online

  The FRB has posted three new International Finance Discussion Papers on its Web site. The titles of the new items are: The Response of Hours to a Technology Shock: Evidence Based on Direct Measures of Technology; China and Emerging Asia: Comrades or Competitors?; and How Does the Border Affect Productivity? Evidence from American and Canadian Manufacturing Industries.  Response;   China;   How Does 12/30/03

• OTS Publishes Technical Corrections

  The OTS is amending its regulations to incorporate a number of technical and conforming amendments. They include clarifications, updated statutory and other references, and corrections of typographical errors.   68fr75108.txt (text) 68fr75108.pdf (pdf)12/30/03

• Reg C Asset Size and MSA/MA Info Published

  The FRB has published in the Federal Register a final rule amending Regulation C (Home Mortgage Disclosure) and the staff commentary to increase the asset-size exemption threshold to conform the rule and commentary to changes in the Standards for Defining Metropolitan and Micropolitan Statistical Areas published by the U.S. Office of Management and Budget. Depository institutions with assets of $33 million or less as of December 31, 2003, are exempt from data collection in 2004. 68fr74829.txt (text) 68fr74829.pdf (pdf)12/29/03

• FACT Act Interim Final Rules Published

  The Interim Final Rules establishing December 31, 2003 as the effective date of certain provisions under the FACT Act have been published in the Federal Register. December 31, 2003 will be the effective date forprovisions of the Act that determine the relationship between the Fair Credit Reporting Act (FCRA) and state laws and provisions that authorize rulemakings or other implementing action by various agencies. 68fr74467a.txt (text) 12/29/03

• FACT Act Proposed Rules Published

  A rule proposing effective dates for provisions of the FACT Act that do not contain specific effective dates has now been published in the Federal Register. 68fr74529.txt (text) 68fr74529.pdf (pdf)12/29/03

• OCC Publishes Technical Correction

  The OCC previously published in the Federal Register a final rule implementing authority provided to national banks by sections 1204, 1205, and 1206 of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA). Now, the OCC has published in the Federal Register technical corrections to that final rule. 68fr74467.txt (text) 12/29/03

• Regulators Issue GLB Privacy Notices ANPR

  Federal financial institution regulators have issued an ANPR requesting public comment on ways to improve the privacy notices financial institutions provide to consumers under the GLB Act.   FRB PR;   FRB ANPR;   OCC NR;   OCC ANPR;   OTS NR;   OTS ANPR;   FDIC PR;   NCUA PR;;   SEC PR;   FTC PR; 12/26/03

• FRB Written Agreement with Ohio Bank

  The FRB has announced the execution of a Written Agreement by and among Combanc, Delphos, Ohio; The Commercial Bank, Delphos, Ohio; the Ohio Division of Financial Institutions, Columbus, Ohio; and the Federal Reserve Bank of Cleveland.  Written Agreement 12/26/03

• BSA Policy Advisor Named By FinCEN

  FinCEN has announced the appointment of a Senior Policy Advisor regarding the strategic development and administration of regulations concerning BSA.  FinCEN PR 12/26/03

• Developments in Business Lending by Commercial Banks

  The December issue of the FRB Bulletin contains an article regarding recent developments in business lending which indicates that the real value of C&I loans at domestic commercial banks and at U.S. branches and agencies of foreign banks has fallen 19 percent since the beginning of 2001.  Article 12/26/03

• HSA Guidance Issued By Treasury

  Treasury has issued a guidance regarding the establishment of HSAs which are designed to help individuals save for qualified medical and retiree health expenses on a tax-free basis. Like MSAs, banks may serve as HSA custodians.Guidance 12/23/03

• Reg CC Check 21 Amendment Proposed

  The FRB has approved a proposed rule to amend Regulation CC and its commentary to implement the Check 21 Act.Proposed Amendment 12/23/03

• Counterfeit Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks issued by The Bank of Inverness, Inverness, Florida. Details regarding the counterfeit cashier's checks and contact information have been placed on the BOL Alerts & Counterfeits page. 12/23/03

• Public Meetings Regarding Bank Merger

  The FRB has announced that public meetings will be held regarding the application of Bank of America Corporation to merge with FleetBoston Financial Corporation. Public Meetings 12/23/03

• TFR Instruction Manual Updated

  OTS has updated the TFR Instruction Manual. Updates 12/23/03

• US and Canada Reach Enron Agreement

  The FRB and the OSFI Canada have announced they have reached an agreement to coordinated actions between OSFI and U.S. regulatory and enforcement authorities related to the involvement of the Canadian Imperial Bank of Commerce in certain structured finance transactions with the Enron Corporation.  Agreement 12/23/03

• New FEDS Paper Released

  The FRB has released a new FEDS paper entitled, The GSE Implicit Subsidy and Value of Government Ambiguity.  FEDS Paper 12/23/03

• Third Quarter Fedwire Data Published

  Checks services data for the Third Quarter 2003 has been published by the FRB.  Fedwire Data 12/23/03

• Foreign Bank Structure and Share Information

  The FRB has released the September 2003 structure and share data for U.S. offices of foreign banks.Data 12/23/03

• December Financial Holding Company Elections

  The list of bank holding companies that have elected as December 19, 2003 to become or be treated as financial holding companies under the Bank Holding Company Act has been issued by the FRB.
  Financial Holding Companies 12/23/03

• Enhanced Functionality for Check Adjustments

  FRB Financial Services has announced beginning December 21, 2003, new Check Adjustments via FedLine Web enhancements will provide customers with increased flexibility, ability to customize their inbox and outbox as well as additional selection options. Check Adjustments 12/23/03

• OFAC Designates SDGT and SDNT Changes

  A SDGT was added and changes were made to existing SDGT and SDNT entries on the SDN list. Information regarding the new entry and the changes has posted on the BOL OFAC page. 12/23/03

• 2004 Reg C Asset-Size Exemption Announced

  The FRB has announced its annual notice of the asset-size exemption threshold for depository institutions under Regulation C along with technical amendments to Regulation C and the staff commentary to conform them to changes in the standards for defining MSA boundaries made by the OMB. FRB PR   Reg C Final Rule 12/22/03

• Branches and Agencies Final Rule Issued

  The OCC has published a final rule to streamline and simplify regulations that apply to federal branches and agencies of foreign banks. The final rule reduces unnecessary regulatory burdens on national banks engaging in international activities, consistent with safety and soundness. Final Rule    68FR70691 (txt) 68FR70691 (pdf) 12/22/03

• Counterfeit and Missing Checks Special Alerts

  The FDIC has issued a Special Alerts regarding counterfeit cashier's checks issued by Republic Bank, St. Petersburg, Florida and Rockville Bank, Rockville, Connecticut plus cashier's checks missing in transit drawn on Industrial Bank of Korea, New York, New York. Details regarding the counterfeit and missing cashier's checks along with contact information have been placed on the BOL Alerts & Counterfeits page. 12/22/03

• FFIEC Site Adds Call Report Forms

  The FFIEC has posted the 031 and 041 Report Forms for December 2003 on its Web site along with a FIL containing the Call Report for Fourth Quarter 2003 and the December 2003 Quarterly Call Report Supplemental Instructions.  031 Report Forms    041 Report Forms    Call Report    Supp. Information    12/22/03

• FTC Announces FCRA Fee Disclosure Ceiling

  The FTC has approved a notice regarding the 2004 ceiling on allowable charges for certain disclosures under FCRA.   FCRA Ceiling 12/22/03

• One and a Half Million Dollars in CMPs Issued

  The FRB has announced the issuance of several enforcement actions involving Credit Lyonnais, S.A., a large French bank with several U.S. offices. The actions include a CMP of $1,000,000 against the bank and a CMP of $500,000 against the former CEO.$1 Million    $0.5 Million    Written Agreement 12/19/03

• OCC Bulletin Regarding New CTR Form

  The OCC has issued a bulletin regarding the new CTR Form 104 which was previously announced by FinCEN.OCC Bulletin 2003-48 12/19/03

• Fourth Quarter Financial Reporting Bulletin

  OTS has published the December 2003 Fourth Quarter Financial Reporting Bulletin and the Filing Schedule for 2004 Regulatory Reports.  Financial Reporting Bulletin    Filing Schedule 12/19/03

• File FDIC Branch Applications Online

  The FDIC has announced beginning December 19, 2003, the agency will accept online applications for branch openings, branch relocations, and main office relocations from FDIC-supervised institutions using the Electronic Branch Application (EBA).FIL-96-2003 12/19/03

• FDIC Orders Issued and CMP Assessed

  The FDIC has announced the issuance of Removal and Prohibition Orders against former bankers from Illinois, Louisiana and a Removal and Prohibition Order plus a CMP against a former Kentucky banker. Illinois Order    Louisiana Order    Kentucky Order    Kentucky CMP 12/19/03

• Organizational Changes Final Rule Issued

  The OCC has issued a Final Rule implementing sections of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA) which will allow national banks to make some organizational changes more efficiently. The changes permit a national bank, subject to OCC approval, to: become a subsidiary of a holding company; increase the maximum term for directors; allow staggered terms for directors; have more than 25 directors; and merge with a nonbank affiliate. Final Rule     Federal Register Notice 68FR70122 12/18/03

• OCC Preemption Positions Explained

  In a letter responding to concerns raised by Senator Sarbanes, Comptroller Hawke clarifies the positions taken by the OCC regarding the federal preemption of state laws and the ability of state law enforcement officials to exercise visitorial powers with respect to national banks. Preemption Letter 12/18/03

• 314(a) Reports Produce Valuable Leads

  FinCEN has issued a report that indicates the information provided by financial institutions responding to 314(a) requests have resulted in numerous leads in both terrorist financing and money laundering investigations. FinCEN Report 12/18/03

• Getting A ITIN Made More Difficult

  The IRS has announced, effective immediately, it has imposed more controls over the issuance of ITINs to help insure that they are being obtained for their intended tax administration purpose and not for other reasons, such as a providing personal identification. IRS ITIN 12/18/03

• Minority-Owned Banks Report

  The FRB has released list sorted by state containing one hundred thirteen minority-owned banks. Minority-Owned Banks 12/18/03

• FACT Act Effective Date Interim Rules

  The FRB and FTC have requested comments on interim final rules and proposed rules to establish effective dates for certain provisions of the FACT Act including provisions that preempt state laws that regulate areas governed by the FCRA.  Preemptive Rules   Other Rules    FTC FYI 12/17/03

• OCC CRA Ratings Released

  The OCC has issued the CRA evaluations for forty national banks. Five banks were rated outstanding, thirty-four were satisfactory, one was needs to improve, and none were substantial noncompliance. CRA
  12/17/03

• OCC Enforcement Actions Announced

  The OCC has announced fifteen new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in eight states. Enforcement Actions 12/17/03

• January HOEPA APR Reference Rates

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in January 2004 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application. H.15 Daily Rates    H.15 Weekly Rates
  12/17/03

• OFAC Issues Iranian Regulations IRs

  OFAC has issued interpretive rulings of limited application dealing with the payment of court costs or money judgments relating to litigation with an Iranian entity and the posting of information from Iran on Web sites.Court Costs    Posting 12/17/03

• Counterfeit Canadian Money Orders

  FinCEN has issued an Advisory concerning counterfeit Canadian Money Orders that are sent as payment for Internet purchases or are a part of the Nigerian or other scams. Victims are instructed to cash the items and send part of the proceeds to the scam artist. FinCEN Advisory 12/17/03

• December 2003 019 Report Form

  The FFIEC has posted the December 2003 019 Report Form with instructions on its Web page. 019 Report Form 12/17/03

• Deceptive Claims of FDIC Insurance

  The FDIC has issued a Special Alert regarding a New York City entity, which may be using multiple names, is falsely representing on its Web site that it is a member of the FDIC. Special Alert 80-03 12/17/03

• G.17 Industrial Production Report

  The FRB has released the G.17 Industrial Production statistical release for November 2003.G.17 12/17/03

• Final Third Quarter IRR Measures

  OTS has released the final Thrift Industry Interest Rate Risk Measures for the third quarter 2003.  Final Interest Risk Measures 12/17/03

• International Reserve Position Issued

  Treasury has released the U. S. International Reserve Position for the week ending December 12. Reserve Position 12/17/03

• Fed Offers Free Online Check Imaging Seminar

  The Fed is taking registrations for a free online seminar to be held on January 22, 2004, regarding how checking imaging can be implemented as part of a strategy to reduce costs, retain customers and enhance revenue streams. Check Imaging Seminar 12/16/03

• Basel II Issues Remain For U.S.

  Comptroller Hawke indicated in a presentation before the American Academy in Berlin that while the U.S. remains committed to completing work on the Basel II capital accord by mid-2004, many complex issues must still be worked out before the agreement can be implemented.
  Speech 12/16/03

• October 2003 Cost of Funds Reports Released

  The OTS has released the historical and current reports as of October 2003 regarding the cost of funds for OTS regulated SAIF insured institutions. Historical Report    Current Report 12/16/03

• 2004 HMDA Guide and New FAQs

  The FFIEC has issued the 2004 version of A Guide to HMDA Reporting and new regulatory and interpretative FAQs.
  2004 HMDA Guide      HMDA FAQs 12/15/03

• OTS Releases CRA Ratings

  OTS has released the November 2003 CRA performance evaluations for savings associations. CRA Ratings 12/15/03

• Prohibitions - Removals - Civil Money Penalties

  The FDIC has issued enforcement orders against former bankers from Iowa, Georgia, Missouri, Minnesota and California.  Iowa Banker 1    Iowa Banker 2    Georgia Banker   Missouri Banker    Minnesota Banker    California Banker 12/15/03

• Special Alert - Claims of FDIC Insurance

  The FDIC has learned that Banco Athlantic, Madrid, Spain, is falsely representing to potential customers on its Web site that it is a member of the FDIC. FDIC SA 79-2003 12/15/03

• Derivatives Volume Tops $67 Trillion

  OCC has issued the Bank Derivatives Report for the third quarter 2003. OCC NR    Derivates Report 12/15/03

• OCC Updates Licensing Booklets

  The OCC has revised the "Subordinated Debt" and "General Policies and Procedures" booklets in its Comptroller's Licensing Manual series and posted the updated items on the OCC's Web site. The revisions incorporate recent policy and procedure changes, among which were the bank's ability to file applications and notices electronically using e-Corp. Licensing Manuals    Subordinated Debt    General Policies 12/12/03

• 2004 HMDA and CRA Data Entry Software

  The FFIEC has announced that 2004 HMDA and CRA Data Entry Software is now available for download free of charge. The 2004 software will automatically install into a separate directory from previous versions of the software to ensure access to prior years' data.  Software Downloads 12/12/03

• Community Development Investments Guidance

  FRB has posted an update to the regulatory guidance and resource information found on its Community Development Investments Web page. Web Page 12/12/03

• Greenspan On Capitalism

  Read the comments of the Chairman regarding capitalism and the role of globalization in a presentation before the World Affairs Council of Greater Dallas. Speech 12/12/03

• Risk Management of Wireless Networks

  The OCC has issued an Advisory Letter that highlights risks associated with wireless networks and provides guidance for managing those risks.   Advisory Letter 2003-10 12/11/03

• FRB's Working Papers Released

  The FRB has released two new working papers in the finance and economics discussion series on the topics of Calculating and Using Second Order Accurate Solutions of Discrete Time Dynamic Equilibrium Models; and Asset Prices and Rents in a GE Model with Imperfect Competition.  Calculating; Asset Prices 12/11/03

• OCC Bulletin Announces FFIEC Actions

  The OCC has issued Bulletin 2003-46 that announces that the country of Burma has been designated as a jurisdiction of primary money laundering concern under the USA PATRIOT Act. The FFIEC had previously issued proposed regulations which would impose special measures against Burma. Information regarding the FFIEC proposal was previously posted on November 20, 2003 in BOL Top Stories. Final Rule 12/11/03

• OCC Issues Final Rule

  The OCC has revised its regulations to reflect amendments to the Exchange Act made by the Sarbanes-Oxley Act which give
  the OCC the authority to administer and enforce a number of new reporting, disclosure, and corporate governance requirements with respect to national banks that have a class of securities registered under the Exchange Act. The OCC also revised the securities offering disclosure rules for national banks that issue securities that are not subject to the registration requirements of Securities Act. Final Rule 12/10/03

• Outlook Discusses Interest Rate Volatility

  The FDIC has indicated that several related factors have contributed to an upward trend in the volatility of long-term U.S. interest rates, and that these factors could cause continued volatility going forward. According to a report released in the Winter 2003 FDIC Outlook, concerns about deflation, mortgage-related hedging activity, dependence on foreign capital and a rising federal budget deficit have all played a role in recent interest rate movements. FDIC Outlook 12/10/03

• Internet Mortgage Scam Settlement

  An Internet operation that advertised “3.95% 30 Year Mortgages” to obtain sensitive financial information from consumers has been barred from violating federal lending and privacy laws. The operation's principals have agreed to settle FTC charges that the scheme violated federal law and post $1 million bonds before sending unsolicited commercial e-mail - spam - in the future.Settlement Order 12/10/03

• Liquidity Management Handbook Update

  OTS has updated the Liquidity Management section of the Thrift Activities Regulatory Handbook.Update 12/10/03

• Consolidated Asset National Ranking Released

  The FRB has released the national ranking of commercial banks that have consolidated assets of $300 million or more.  National Ranking 12/10/03

• FIL Regarding Announced SDGT

  The FDIC has issued FIL 94-2003 concerning a SDGT that was added to the OFAC list on December 5, 2003. Information regarding the change was previously announced in a BOL Special OFAC Alert and placed on the BOL OFAC page. 12/10/03

• International Reserve Position

  Treasury has released the U. S. International Reserve Position for the week ending December 5. Reserve Position 12/10/03

• Fed Funds Target Rate Set

  The Federal Open Market Committee has set its target for the federal funds rate. Target Rate   12/10/03

• Federal Register Publishes Proposed Rules to Regs B, E, M, Z and DD

  The FRB has published proposed rules to establish more uniform standards for providing disclosures under five consumer protection regulations: B; E; M; Z; and DD . Comment on the proposed rules is requested by January 30, 2004. M,    E,    B,    Z and    DD 12/10/03

• EAs Issued Against Former Bankers

  The FDIC has issued Enforcement Actions including Civil Money Penalties ranging from $5,000 to $75,000 against former bankers from Illinois, Texas, Kentucky and South Carolina.  Illinois 1   Illinois 2    Illinois 3    Illinois 4    Texas 1    Texas 2    South Carolina    Kentucky 12/9/03

• December Fed Focus and Check 21

  The December 2003 edition of Fed Focus has been placed online by the FRB and contains a discussion on Check 21. Fed Focus 12/9/03

• HOLTA Investment Limitations Discussed

  OTS has issued a TB regarding the investment limitations of HOLTA which clarifies the flexibility a savings association may have in computing total assets. OTS TB-78a 12/9/03

• OTS Legal Opinions Issued

  The OTS has issued two legal opinions regarding the treatment of closed-end mortgages under the Alternative Mortgage Transaction Parity Act and applicability of SEC Rule 144A to securities offerings by regulated savings associations.AMTPA    Rule 144A 12/9/03

• Secure Web Site Announced By FDIC

  The FDIC has announced the nationwide availability of FDICconnect, a secure Web site developed to facilitate electronic communication with FDIC. A number of transactions, including the summary of deposits collection, the filing electronic branch applications, and online access to deposit insurance assessment invoices can be conducted online. Institutions are encouraged to register for FDICconnect beginning immediately. FDICconnect    List of Transactions 12/9/03

• December 2003 Treasury Bulletin Issued

  Treasury has posted the December 2003 issue of the Treasury Bulletin on the FMS Web Page. Dec Treasury Bulletin 12/9/03

• Federal Register Publishes Reg Y Changes

  The FRB has issued a final rule amending Regulation Y which expands the abilities of all bank holding companies to process, store and transmit nonfinancial data in connection with financial data activities. The rule which increases the revenue limit to forty-nine percent will be effective January 8, 2004. This was previously announced on BOL on December 5th.   68FR68493 (txt)   68FR68493 (pdf) 12/9/03

• FDIC Enforcement Orders Released

  The FDIC has released thirty orders of administrative enforcement actions taken against banks and individuals in October 2003 including four cease-and-desist orders, eleven removal-and-prohibition orders, five civil money penalty orders, four terminations of insurance, five terminations of cease-and-desist orders, and one adjudicated decision.
  October Enforcement Orders 12/8/03

• Deposit Broker Alert Issued By FDIC

  The FDIC has issued a Special Alert regarding the identification of potential concerns with brokered deposit arrangements that federally insured financial institutions have entered into with an unregistered financial services broker.FDIC SA-78-2003 12/8/03

• OFAC Penalty Against Bank

  In the December OFAC Civil Penalties Enforcement Information, one bank was listed for violations of sanctions and a penalty of $5,500 was imposed. BOL OFAC Page 12/8/03

• Unauthorized Banking Alert

  The OCC has issued an Alert regarding an Internet entity using the names Effex Bank NA; Effex Bank Ltd.; Effexbank Bank, Ltd.; or Effexbank International Bank Limited that may be operating a banking business without authorization. Financial institutions are asked to send any information they may have about this business to the OCC. OCC Alert 12/8/03

• FDIC Establishes Center For Financial Research

  The FDIC has announced the formation of the Center for Financial Research. The Center will sponsor research on key issues and developments affecting the banking industry. Six prominent economists will serve as Senior Fellows who will assist in guiding the activities of the Center.   FDIC Center 12/8/03

• OFAC Change Adds SDGT

  As noted in Friday's BOL OFAC Alert, OFAC has added an entry as a Specially Designated Global Terrorist. Information regarding the entry and AKAs has been added to the BOL OFAC Page. 12/8/03

• FFIEC Web Site Additions

  The FFIEC has posted online the following information for the FFIEC 002 form: the initial Federal Register notice, the draft instructions for March 31, 2004, and the draft reporting form for May 31, 2004.  Notice    Draft Instructions    Draft Form 12/8/03

• October G. 19 Report Issued

  The FRB has issued the G.19 Consumer Report for October 2003.G. 19 12/8/03

• Final Rule Amends Reg Y

  The FRB has issued a final rule amending Regulation Y which expands the abilities of all bank holding companies to process, store and transmit nonfinancial data in connection with financial data activities. The rule which increases the revenue limit to forty-nine percent will be effective January 8, 2004. Final Rule 12/5/03

• FFIEC Nixes Cartridge Tapes

  FFIEC has announced that cartridge tape submissions will not be accepted for calendar year 2004 HMDA and CRA data.2004 HMDA    2004 CRA 12/5/03

• CTR Form Revised

  FinCEN has revised the CTR form. Two lines have been added - one to enable the reporting of foreign cash in, the other for foreign cash out. Although the new form became effective December 1, 2003 and is available for use by financial institutions, FinCEN wants to assure that during this transition the prior form, IRS Form 4789, is still valid and can be used through August 31, 2004. Revised CTR 12/4/03

• Eighty-One CRA Exams Scheduled By OTS

  OTS has announced that 81 savings associations are scheduled for CRA examinations during the first quarter of 2004.  CRA Exam Schedule 12/4/03

• CRA Ratings Released

  The FDIC has issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in September 2003.CRA Ratings 12/4/03

• Thrift Activities Regulatory Handbook Updated

  OTS has updated the liquidity management section of the thrift activities regulatory handbook.RB 32-32 12/4/03

• Third Quarter QBP Issued

  The FDIC has issued the Quarterly Banking Profile for the Third Quarter 2003 which provides a comprehensive summary of financial results for all FDIC-insured institutions in addition to written analyses, graphs and statistical tables.
  QBP 12/4/03

• Record Earning In Third Quarter

  Commercial banks and savings institutions insured by the FDIC reported record earnings in the third quarter of 2003, marking the third quarter in a row that earnings set a new high.  Record Earnings 12/4/03

• International Reserve Position

  Treasury has released the U. S. International Reserve Position for the week ending November 28.International Reserve   12/4/03

• September UBPR Available Online

  The FFIEC has placed the September 30, 2003 issue of the Uniform Bank Performance Report on line. It contains 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. A User's Guide is also available online for technical explanations of UBPR data. UBPR 12/3/03

• Travel Rule Exception to Expire

  FinCEN has published notice in the Federal Register that the conditional exception to the BSA Travel Rule will permanently expire 7/1/04. 68FR66708 (txt)   68FR66708 (pdf) 12/2/03

• FRB Written Agreement With W. Virginia Bank

  The FRB has announced the execution of a Written Agreement by and among the Putnam County Bank, Hurricane, West Virginia; the West Virginia Division of Banking, Charlestown, West Virginia; and the Federal Reserve Bank of Richmond. The bank is required to take corrective measures to comply with BSA and the AML provisions of Reg H. Written Agreement 12/2/03

• First Quarter 2004 CRA Exam Schedule

  The OCC has issued the CRA examination schedule for the First Quarter 2004. CRA Exam Schedule 12/2/03

• New TIAC Members Named

  The FRB has announced the names of four new members of the Thrift Institutions Advisory Council and the designation of a new President and Vice President of the Council for 2004. TIAC Members 12/2/03

• November G. 5 Exchange Rates

  The FRB has released the G. 5 (405) Foreign Exchange Rates report for the month of November 2003. G.5 Release 12/2/03

• Securities Subsidiaries Listed

  The FRB has issued a listing of securities underwriting and dealing subsidiaries in the categories of Section 20 subsidiaries, Section (4)(k)(4)(E) securities subsidiaries, and financial subsidiaries of state member banks as of September 30, 2003.
  Securities Subsidiaries 12/2/03

• New FEDS Papers Released

  The FRB has released five new papers in the Finance and Economic Discussion Series on the following topics: Central Bank Talk: Does It Matter and Why?; The Effect of Restructuring on Unemployment; What If Welfare had no Work Requirements? The Age of Youngest Child Exemption and the Rise in Employment of Single Mothers; Getting Bad News Out Early: Does it Really Help Stock Prices?; and Forecasting Exogenous Fiscal Variables in the United States.  Central Bank   Effect of Restructuring    What If    Getting Bad News   Forecasting    12/2/03

• Disclosure Standards - Regs B, E, M, Z and DD

  The FRB has published proposed rules to establish more uniform standards for providing disclosures under five consumer protection regulations: B; E; M; Z; and DD . Comment on the proposed rules is requested by January 30, 2004.
  Reg B    Reg E    Reg M    Reg Z    Reg DD 12/1/03

• CMPs Assessed for Flood Violations

  The FRB has announced the assessment of a $34,100 civil money penalty against Provident Bank, Cincinnati, Ohio and a $16,000 civil money penalty against The Bank of Currituck, Moyock, North Carolina for alleged violations of the National Flood Insurance Act . Provident Bank    Bank of Currituck 12/1/03

• November Beige Book Released

  The November update to The Beige Book was prepared at the Federal Reserve Bank of Atlanta and based on information collected before November 17, 2003. Beige Book 12/1/03

• OCC 2004 Fee Schedule Announced

  The OCC issued a Bulletin that announces the OCC fees and assessments for 2004. OCC Bulletin 2003-45 12/1/03

• Assessment Risk Classifications

  The FDIC has issued a FIL which indicates a streamlined internal process for evaluating an insured institution's request for a review of its assessment risk classification will be utilized for the semiannual assessment period beginning January 1, 2004, and subsequent assessment periods. FIL-90-2003 12/1/03

• Third Quarter Charge-Off and Delinquency Rates

  The charge-off and delinquency rates on loans and leases at commercial banks for the Third Quarter 2003 have been released by the FRB. Charge-Off Rates 12/1/03

• G. 20 For November 2003

  The G. 20 statistical release for finance companies has been placed online by the FRB. G. 20 12/1/03

• Changes Made To UBPR Peer Group

  The FFIEC Task Force on Surveillance Systems has announced changes to the peer group structure and to the way income and expense are annualized in the UBPR. Peer Group Changes    Income and Expense 12/1/03

• Credit Union Loan Growth Expansion Reported

  NCUA has released preliminary call report data submitted by federally insured credit unions that indicates the most significant expansion in loan growth since 2001. The largest increases were shown in the categories of first mortgage real estate loans and used auto loans. Loan Growth 12/1/03

• Bank Dissolution Ordered

  The OCC, the SEC, and the New York Attorney General have jointly announced a series of actions against Phoenix, Arizona-based Security Trust Company, N.A. and three former executives, arising from their participation in mutual fund late trading and market timing schemes. The bank will begin a process that will result in an orderly dissolution by March, 31, 2004.OCC NR    SEC PR    Consent Order 11/26/03

• CMP Assessed For BSA and AML Violations

  FinCEN has assessed a $10,000 civil money penalty against a Georgia financial institution for willful violations of the BSA and AML Program requirements regarding correspondent accounts.Assessment 11/26/03

• FinCEN Issues Two NPRs

  FinCEN has issued one notice of proposed rule making regarding the imposition of special measures against Burma as a jurisdiction of Primary Money Laundering Concern and a second notice regarding Myanmar Mayflower Bank and Asia Wealth Bank as financial institutions of Primary Money Laundering Concern. Burma NPR    Banks NPR 11/26/03

• Counterfeit Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks issued by Affinity Bank, Ventura, California; Capital Bank & Trust Company, Nashville, Tennessee; and Suburban Bank & Trust Company, Elmhurst, Illinois. Details regarding the counterfeit cashier'
  s checks and contact information have been placed on the BOL Alerts & Counterfeits page. 11/26/03

• International Reserve Position

  Treasury has released the U. S. International Reserve Position for the week ending November 21.Reserve Position 11/26/03

• OTS Issues 2003 Financial Report

  The 2003 Financial Report has been issued by OTS.OTS Financial Report 11/26/03

• Thrift Charge-Off Rates Released

  OTS has released the thrift industry charge-off rates by asset types report for the third quarter 2003.Charge-Off Rates 11/26/03

• USA PATRIOT Act Section 311 Designations

  Published in the Federal Register the Treasury has announced the designation of Burma and two Burmese banks to be of "primary money laundering concerns" under Section 311 of the USA PATRIOT Act and a notice of proposed rulemaking that would require U.S. financial institutions to terminate correspondent accounts involving Burmese financial institutions, subject to certain specified exemptions. This announcement previously appeared on 11/20/03 on BOL. 68FR66305 (txt)    68FR66305 (pdf)    68FR66299 (txt)    68FR66299 (pdf) 11/25/03

• Injunction Against MasterCard Issuer

  The FTC has charged Platinum Universal, LLC, its principals, and its successor, Pulsar Data, Inc. with violating the FTC Act and the Telemarketing Sales Rule in connection with the offer of credit cards to consumers for an advance fee. The FTC alleges that the defendants falsely represented to English- and Spanish-speaking consumers that they would obtain a credit card after paying the defendants a fee, when, in fact, consumers did not receive a credit card. The defendants have stipulated to a preliminary injunction which appointed an individual to monitor all of the past, present and future activities, assets and financial transactions of the corporate defendants. Court Documents 11/25/03

• OFAC Interim Rule

  OFAC is amending the Iraqi Sanctions Regulations to incorporate a general license authorizing U.S. financial institutions to transfer certain claims against the Government of Iraq for unpaid loans and other debts to their home offices or to other foreign offices of the same institution. 68FR65844 (txt) 68FR65844 (pdf) 11/24/03

• SAR Preparation Guidance Issued

  FinCEN has issued a three part guidance package designed to provide assistance in the preparation of SARs to provide more useful narrative information to the authorities. Guidance 11/24/03

• FRB Issues Order of Prohibition

  The FRB has announced the issuance of a Final Decision and Order of Prohibition against Garfield C. Brown, Jr., a former employee of Mellon Bank, N.A., Pittsburgh, Pennsylvania.Final Decision    Order 11/24/03

• OTS Updates Holding Companies Handbook

  OTS has issued a regulatory bulletin which updates the Large and Complex Enterprises (Conglomerates) section of the Holding Companies Handbook. RB 35 11/24/03

• FedImage Services Check Image Retrieval

  The Federal Reserve has integrated FedImage Services with several home banking applications, including Fiserv's GalaxyPlus Netbranch, Fiserv's IntegraSys Virtual Branch and Worldwide Interactive Services' Your MSR.com to support image access. This integration enables customers of financial institutions to retrieve check images from the Federal Reserve's national archive.GalaxyPlus    IntegraSys    Worldwide 11/24/03

• SARs and EAs Regarding Individuals

  The FRB has issued a SR letter concerning SARs and Enforcement Actions against individuals. The Special Investigations Section of the Division of Banking Supervision and Regulation has recently had its responsibilities expanded and is now responsible for enforcement actions against current and former officers, directors, employees and other institution-affiliated parties. This SR letter provides guidance to Reserve Banks regarding the coordination of enforcement matters with the Special Investigations Section once a SAR against an institution-affiliated party has been identified for follow-up action. SR Letter 03-20 11/21/03

• Change in Control Procedures Guidance

  A SR Letter has been issued by the FRB regarding guidance on change in bank control procedures. The letter identifies when an individual or other affected party should contact the Federal Reserve regarding the filing of a notice under the Change in Bank Control Act and the Board's implementing regulations. SR Letter 03-19 11/21/03

• Thrift Regulatory Handbook Updated

  OTS has issued a Regulatory Bulletin which updates the Capital Adequacy section of the Thrift Regulatory Handbook.RB 32-31 11/21/03

• OTS Publishes Instructions for March 2004 TFR

  The new instructions are for only new, modified, or renumbered lines for the March 2004 TFR. 11/21/03

• Greenspan - International Impact of the Deficits

  Read the comments of Chairman Greenspan at the 21st Annual Monetary Conference regarding the impact of the U.S. trade deficits on the world economy and learn why he feels that current imbalances may be defused with little disruption.Speech 11/21/03

• SARs to be Filed by Brokers and Merchants

  FinCEN has announced a Final Rule that amends BSA to define futures commission merchants and introducing brokers in commodities as

  financial institutions and requires them to file SARs with FinCEN. Final Rule 11/21/03

• USA PATRIOT Act Section 311 Designations

  Treasury has announced the designation of Burma and two Burmese banks to be of "primary money laundering concerns" under Section 311 of the USA PATRIOT Act and a notice of proposed rulemaking that would require U.S. financial institutions to terminate correspondent accounts involving Burmese financial institutions, subject to certain specified exemptions. Designation 11/20/03

• Federal Register Publishes BSA Changes

  The amendments add futures commission merchants and introducing brokers in commodities to the regulatory definition of ‘‘financial institution'
  '
  and require that they report suspicious transactions to FinCEN. 68FR65392 (pdf) 68FR65392 (txt) 11/20/03

• 2003 National Money Laundering Strategy

  Treasury has issued the 2003 National Money Laundering Strategy which expands the framework for identifying, disrupting, and dismantling global terrorist financing and money laundering operations. National ML Strategy 11/20/03

• FTC Files Lawsuit Against AmeriDebt

  The FTC has filed a complaint in federal court charging that a national organization that promotes itself as a non-profit credit counseling agency is engaged in deceptive practices. The complaint contends that the organization failed to provide privacy notices to consumers as required by the GLB Act and misrepresented that they charge no up-front fee for their services, that they operate as a non-profit, and that they teach consumers how to handle their finances. Complaint 11/20/03

• December 2003 FFIEC 030 Report Online

  The FFIEC 030 Report Form for December 2003 along with instructions has been posted online.030 Report Form Instructions 11/20/03

• Third Quarter Thrift Earnings Strong

  The OTS has announced that the nation'
  s thrift industry reported net income in the third quarter of 2003 was up 16 percent from the third quarter of 2002 which made it the second best earnings quarter in history. Thrift Earnings 11/20/03

• International Reserve Position

  Treasury has released the U.S. reserve assets data for the week ending November 14, 2003.International Reserve Position 11/19/03

• Highly Profitable Thrifts Report

  OTS has released a special report reviewing the characteristics of highly profitable community thrifts.Report 11/19/03

• FinCEN Receives Over 6,900 314(a) Responses

  FinCEN has announced that from February through October of 2003, financial institutions had provided 6,987 responses to 314(a) requests. The information is contained in the November 2003 SAR Activity Review – Trends, Tips & Issues, Issue 6, which was released on November 17, 2003. SAR Activity Review 11/18/03

• December HOEPA APR Reference Rates

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in December will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application. H. 15 Daily Rates H. 15 Weekly Rates 11/18/03

• GLB Report To Congress

  As required by GLB Section 103(d), the FRB and Treasury have presented a report to Congress which discusses the new or expanded activities conducted by financial holding companies under the GLB Act, the actions that the Board and the Secretary of the Treasury have taken to expand the activities permissible for financial holding companies, and the effect that any nonbanking mergers and acquisitions by financial holding companies under the Act have had on market concentration. Report to Congress 11/18/03

• Morgan Stanley To Pay Customers $50 Million

  The SEC has announced the institution and simultaneous settlement of an enforcement action against Morgan Stanley DW Inc. (Morgan Stanley) for failing to provide customers important information relating to their purchases of mutual fund shares. As part of the settlement, Morgan Stanley will pay $50 million in disgorgement and penalties, all of which will be placed in a Fair Fund for distribution to certain Morgan Stanley customers. Settlement Order 11/18/03
  
  

• Counterfeit And Stolen Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks issued by Shoreline Bank, Shoreline, Washington and The First National Bank of Sonora, Sonora, Texas. In addition, Heartland Community Bank, Franklin, Indiana, has reported that 1,200 checks marked

  loan proceeds have been stolen. Details regarding the counterfeit cashier'
  s checks and the stolen checks along with contact information have been placed on the BOL Alerts & Counterfeits page. 11/18/03

• FIL Regarding Announced SDGTs

  The FDIC has issued FIL 89-2003 concerning SDGTs that were added to and those that were removed from the OFAC list on November 10, 2003. Information regarding the changes was previously announced in a BOL Special OFAC Alert and placed on the BOL OFAC Page. 11/18/03

• Acronyms Reference Sheet

  FinCEN has placed a list of commonly used acronyms for government agencies; U.S. statutes, laws and reports; and organizations on its Web site. Acronyms 11/18/03

• IRS Brochures Explain 501(c)(3) Exemption

  The IRS has published two new brochures to help charities understand the tax laws conferring tax-exempt status. One brochure is designed to help prospective charities apply for tax exemption under the tax law. The other is a compliance guide that explains the record keeping, return filing and disclosure rules for those organizations. Applying For 501(c)(3) 501(c)(3) Compliance Guide 11/18/03

• November FEDS Papers Released

  The FRB has released five new papers in the Finance and Economic Discussion Series on the following topics: The Excess Sensitivity of Long-Term Interest Rates: Evidence and Implications for Macroeconomic Models; Welfare Effects of Tax Policy in Open Economies: Stabilization and Cooperation; Estimating the Worldwide Volume of Counterfeit U.S. Currency: Data and Extrapolation; Bank Risk Ratings and the Pricing of Agricultural Loans; and Capital Flows Among the G-7 Nations: A Demographic Perspective.Excess Sensitivity    Welfare Effects    Estimating    Bank Risk    Capital Flows 11/18/03

• OCC Enforcement Actions Announced

  The OCC has announced 12 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions 11/17/03

• CRA Evaluations Released By OCC

  The OCC has released a list of CRA performance evaluations made public from October 15, 2003 through November 14, 2003. Of the 46 evaluations released, 8 were outstanding and 38 were satisfactory. None were needs to improve or substantial noncompliance.OCC CRA Evaluations 11/17/03

• OTS CRA Ratings Released

  OTS has released the CRA ratings for savings associations that were evaluated in October 2003. Of the 23 associations evalutated, 6 were rated outstanding and 16 were satisfactory. One was needs to improve and none were substantial noncompliance.OTS CRA Evaluations 11/17/03

• OTS Comment Letters

  OTS has added to its Web site the most recent comment letters it has received in response to proposed regulations.OTS Comment Letters 11/17/03

• NCUA Issues Prohibition Orders

  NCUA has issued Orders of Prohibition against three former officers and employee of credit unions in Hawaii, New Jersey and Massachuettes.Orders of Prohibition 11/17/03

• November Interpretations and Actions Online

  The OCC has placed the November 2003 issue of Interpretations and Actions online.Electronic Interpretations and Actions 11/17/03

• October G.17 Statistical Release

  The FRB has issued the G. 17 Industrial Production and Capacity Utilization statistical release for October 2003.October G. 17 11/17/03

• FRB Bulletin Featured Article Announced

  The FRB has selected "Global Integration in the Banking Industry " as the featured article from the November 2003 FRB Bulletin.Featured Article 11/17/03

• OCC Publishes FY 2003 Annual Report

  The OCC has published its 2003 Annual Report which lists accomplishments in supervision, regulation, risk analysis and chartering. It also describes management initiatives, financial management results and OCC partnerships and outreach to industry, community and consumer organizations.OCC Annual Report 11/17/03

• Cost of Funds Reports Released

  The OTS has released the historical and current reports regarding the cost of funds for OTS regulated SAIF insured institutions.Historical Report     Current Report 11/17/03

• Texas Bank Must Refund Fees and Interest

  The OCC has announced a precedent-setting enforcement action that requires the complete reimbursement of fees and interest charged by Clear Lake National Bank of San Antonio, Texas, in a series of predatory loans. The OCC found that the loans violated the HOEPA, TIL, and RESPA. The Consent Order entered into by the bank'
  s new owners requires $100,000 to be paid in restitution to 30 or more borrowers.Consent Order 11/14/03

• EO Indebtedness Report On FFIEC Web Site

  The FFIEC has posted the December 2003 Executive Office Indebtedness Report Form with Instructions on its Web site.Report Form 11/14/03

• OCC To Allow Florida Banks To Close

  The OCC has issued a proclamation allowing national bank offices to close during the week of November 17, 2003, if events related to the Ministerial Meeting of the Free Trade Area of the Americas in Miami, Florida, should necessitate such action.Proclamation 11/14/03

• HMDA Contacts Updated

  The St. Louis Fed has placed updated OCC District Offices and HUD contact information on its HMDA Help site.Contact Information 11/13/03

• Fairbanks Capital Refunds $40 Million

  The FTC has announced settlements with Fairbanks Capital Holding Corp., its subsidiary, and their founder and former CEO resulting in payments of over $40 million in refunds to consumers. In a complaint filed in federal district court, the FTC and HUD charged Fairbanks with engaging in a variety of unfair, deceptive, and illegal practices in the servicing of subprime mortgage loans.Court Documents 11/13/03

• FTC Consumer Rights Brochure

  The FTC has issued a consumer brochure, "Mortgage Servicing: Making Sure Your Payments Count", to help consumers understand their rights. The brochure explains mortgage servicers' responsibilities, in particular under RESPA.Consumer Brochure 11/13/03

• FIL Regarding Announced SDGT

  T
  he FDIC has issued FIL 87-2003 concerning a SDGT that was added to the OFAC list on October 31, 2003. Information regarding the SDGT was previously announced in a BOL Special OFAC Alert and placed on the BOL OFAC page. 11/13/03

• International Reserve Position

  Treasury has released the U.S. reserve assets data for the week ending November 7, 2003.Reserve Position 11/13/03

• G.17 Revision Report Released

  The G.17 (419) 2003 Historical and Annual Revision of the Industrial Production and Capacity Utilization report has been released by the FRB. The index of industrial production and the related measures of capacity and capacity utilization for the period from January 1972 to September 2003 has been revised. G.17 Revision 11/11/03

• OFAC Change Added SDGT

  As noted in Monday's BOL OFAC Alert, OFAC has added fifteen entries as Specially Designated Global Terrorists and removed three entries from the SDN list. Information regarding the entry and AKAs has been added to the BOL OFAC page. 11/11/03

• OFAC Civil Penalties Against Eleven Banks

  OFAC has issued the November list of civil penalties and informal settlements regarding violations of OFAC Sanctions Programs. Eleven banks were cited for violations of programs concerning Sudan, Iran, Libya and Cuba with penalties ranging from $2,684 to over $158,000.OFAC Civil Penalties 11/10/03

• Counterfeit Cashier'
  s Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks issued by Cornerstone Community Bank, St. Petersburg, Florida; Cache Bank & Trust, Greeley, Colorado; and HomeStreet Bank, Seattle, Washington. Details regarding the counterfeit cashier'
  s checks and contact information have been placed on the BOL Alerts & Counterfeits page. 11/10/03

• G. 19 Consumer Report Released

  The FRB has released the September 2003 G. 19 Consumer Credit report which indicates that the rate of consumer credit growth increased in the Third Quarter. G. 19 11/10/03

• Greenspan'
  s Economic Outlook

  Chairman Greenspan discussed his outlook for the US economy at the Securities Industry Association annual meeting. Greenspan Speech 11/7/03

• SOD Updates Online

  The FDIC has placed the June 30, 2003 Summary of Deposits data for more than 85,000 branches/offices of FDIC-insured institutions online. SOD Data 11/7/03

• IRS Launches Online Tools

  The IRS has launched the first of a suite of Internet-based business tools know as e-services that give financial institutions and tax professionals easier access to client information. The tools will provide new choices for working electronically with the IRS. The first three products provide a foundation for future services that will significantly enhance how the IRS does business with those who file selected information returns, such as banks and other financial institutions. E-Services 11/7/03

• CRA Ratings Released

  The FDIC has issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in August 2003. CRA 11/6/03

• FRB Written Agreement With Virginia Bank

  The FRB has announced the execution of a Written Agreement by and among the Bank of Gassaway, Gassaway, West Virginia; the West Virginia Division of Banking, Charleston, West Virginia; and the Federal Reserve Bank of Richmond.Written Agreement 11/5/03

• Flood Violation Civil Money Penalty

  The FRB has announced the issuance of a consent Order of Assessment of a Civil Money Penalty in the amount of $4,550 against the Gulf Bank, Miami, Florida in connection with alleged violations of FRB Regulations implementing the National Flood Insurance Act. Order 11/5/03

• HMDA Help Page Updated

  The HMDA Help page maintained by the St. Louis Fed has been updated to include high-cost mortgage worksheets, added a link to the standard disclosure, added new FAQs and modified the definition to Syntactical Edits.Updates 11/5/03

• SEC Adopts Corporate Governance Standards

  The SEC has approved new rules proposed and adopted by the New York Stock Exchange and the NASDAQ Stock Market requiring widespread strengthening of corporate governance standards for listed companies. The new rules establish a stricter, more detailed definition of independence for directors and require the majority of members on listed companies' boards to satisfy that standard.SEC Rules 11/5/03

• FDIC Sets 2004 Bank Assessment Rates

  The FDIC has announced the assessment rates charged to insured banks and savings associations for the first half of 2004.Assessment Rates 11/5/03

• BIF and SAIF Third Quarter Financials

  The FDIC has released the Third Quarter 2003 financial results for the Bank Insurance Fund and the Savings Association Insurance Fund.BIF & SAIF Third Quarter 11/5/03

• Emerging Risks in Banking Reviewed

  The FDIC FYI for November contains a paper entitled

  Economic Conditions and Emerging Risks in Banking that was provided to the FDIC Board as part of the FDIC insurance funds outlook and premium rate recommendations for the first semiannual period of 2004.FYI 11/5/03

• September Call Report Forms Online

  The FDIC has placed the September 30, 2003 Call Report forms online.September Call Report 11/4/03

• Senior Officer Lending Practices Survey

  The FRB has released the October 2003 Senior Loan Officer Opinion Survey on Bank Lending Practices which addresses changes in the supply of, and demand for, bank loans to businesses and households over the past three months. In addition, the survey contains a supplementary question on potential demand for C&I loans, a series of questions on banks' participation in the secondary market for C&I loans, and a question on loans secured by real estate but used for purposes other than the acquisition or improvement of real estateSurvey 11/4/03

• OTS Outsources Cash Collection

  OTS has given notice to customers making payment by check that its cash collection function has been outsourced to the Bureau of Public Debt'
  s Administrative Resource Center. Each check will be converted into electronic fund transfer.OTS Notice 11/4/03

• Treasury Market Financing Estimates

  Treasury has announced its estimate of net borrowing of marketable debt for the Fourth Quarter of 2003. Market Estimates 11/4/03

• International Finance Discussion Paper Released

  The FRB has released a new International Finance Discussion Paper entitled,

  The High-Frequency Response of Exchange Rates and Interest Rates to Macroeconomic Announcements.Discussion Paper 11/4/03

• October G.5 Issued

  The FRB has issued the October 31, 2003 edition of the G.5 Foreign Exchange Rates statistical release.October G. 5 11/4/03

• $1.4 Billion Settlement Approved

  The SEC has announced Court approval of the $1.4 billion global settlement of enforcement actions against ten of the nation's top investment firms and two associated individuals. The enforcement actions alleged undue influence of investment banking interests on securities research at brokerage firms. In addition to the monetary payments, the firms are required to undertake dramatic reforms to their future practices, including separating their research and investment banking departments. Settlement Information 11/3/03

• OFAC Change Added SDGT

  As noted in Friday's BOL OFAC Alert, OFAC has added a new SDGT to the OFAC List. Information regarding the entry and AKAs has been added to the BOL OFAC page. 11/3/03

• FRB Check Restructuring Changes

  The Federal Reserve is making changes to its check processing and adjustments operations in response to the changing market, including the decline of check volumes industry wide.Check Processing Changes    Check Adjustment Changes    FAQ    Communications 11/3/03

• FRB Cash Services Forms Online

  FRB Financial Services has place its standard cash service forms and instructions on its Web page. Cash Services Forms 11/3/03

• 2004 FRB Fee Schedule Announced

  New pricing information for 2004 has been announced by FRB Financial Services.2004 Fees 11/3/03

• 42 CRA Evaluations Released

  The OCC has released the CRA evaluations for forty-two national banks. Nine were rated outstanding, thirty-two were satisfactory and one was needs to improve.OCC CRA 9/30/03

• September Corporate Applications Online

  The OCC has placed online the September 2003 issue of Corporate Applications which includes interpretive letters, CRA decisions, approvals, final enforcement actions and CRA evaluations. OCC Electronic Interpretations and Actions 9/30/03

• NCUA Posts Latino Connection Kit

  Credit unions looking for ways to reach America's largest and fastest growing minority can now access a free Latino Connection Kit posted by NCUA on the agency's website. The kit features detailed descriptions of how leading credit union organizations have succeeded in serving Latinos in their communities.Latino Connection Kit 9/30/03

• FDIC Web Site Has New Look

  The FDIC has redesigned its Web site. New features include: a Quick Links by User section at the top of every page; Alerts and Updates on the menu pages; and a "breadcrumb trail" on menus to help users locate where they are in the site. Users are asked to to browse the site and let the FDIC know what they think by e-mailing the web staff directly at website@fdic.gov. FDIC Web Site 9/29/03

• Financial Education Opens New Markets

  In a presentation before the 33rd Annual Legislative Conference of the Congressional Black Caucus, FRB Chairman Greenspan discussed the importance of financial education for consumers. He noted that many bankers participate in consumer literacy programs because they want to be recognized as good corporate citizens; however, many other bankers have realized that their activities may help them reach hard-to-serve markets such as immigrants or people without a relationship with a bank.Speech 9/29/03

• FRB Written Agreement with Institutions

  The FRB has announced the execution of a Written Agreement by and among United National Corporation, Sioux Falls, South Dakota; First PREMIER Bank, Sioux Falls, South Dakota; PREMIER Bankcard, Inc., Sioux Falls, South Dakota; and the Federal Reserve Bank of Minneapolis.Written Agreement 9/26/03

• Community Development Investments Directory

  The OCC has published the 2002 Directory of National Bank Community Development Investments which lists and summarizes national bank investments that support a public welfare purpose.Investments Directory 9/26/03

• Treasury Amends FOIA and Privacy Act Regs

  Treasury has published a final rule which establishes the administrative procedures that FINCEN will follow in processing FOIA requests and in implementing the Privacy Act.Final Rule 9/26/03

• Violations of Sarbanes-Oxley Lead To Arrest

  Thomas C. Trauger, a former Ernst & Young partner who allegedly altered and destroyed audit working papers, was arrested by FBI agents on criminal charges for obstructing investigations by both the OCC and the SEC. A criminal complaint charged Mr. Trauger with obstructing the examination of a financial institution and falsification of records in a federal investigation in violation of the Sarbanes-Oxley Act of 2002.SEC NR 9/26/03

• Relationship Banking and Tying

  The OCC has published a white paper which examines banks’ market power and economic performance for evidence of tying, discusses the market competitiveness of diversified banking organizations, and recognizes the costs savings that can result from relationship banking.OCC Tying White Paper 9/26/03

• The Financing of Terror

  Treasury General Counsel Aufhauser testified before the Senate Banking, Housing and Urban Affairs Committee regarding the ways terrorists finance their activities and what is being done to address the problem.Opening Statement; Testimony 9/26/03

• Thrift Activities Regulatory Handbook Updated

  OTS has announced the update of the Thrift Regulatory Handbook. A new Section 221, Asset-Backed Securitizations, has been added which addresses the securitization and sale of asset pools, such as loans, leases, and credit card receivables.OTS Regulatory Handbook 9/25/03

• FFIEC September Reporting Forms Online

  The FFIEC has added the September 2003 009, 009a and 019 reporting forms to its Web page.009009a 019 9/25/03

• NCUA Revises Business Lending Rule

  NCUA has announced the issuance of revisions to the agency's member business lending rule for federally insured credit unions. NCUA NR 9/25/03

• PACS Program to Be Expanded

  Currently, there are 638 users representing a total of 289 depository institutions and money services businesses who use the PACS system for secure online filing of CTRs and SARs. Together, these institutions file 3.8 million CTRs and SARs annually. FinCEN has announced that it will expand the system as of October 1 to also process the MSB-SAR, SF-SAR, SARC and CTRC forms. PACS Fact Sheet   PACS Web site 9/24/03

• CIP Deadline Alert

  Don't forget that your CIP program must be in place and fully implemented on October 1. If you have any last minute questions, review the articles, threads and Q & As from our CIP Week. The BOL CIP Tools contain implementation pointers, sample CIP notices, writing tips, and customer identification aids. You will also find training scenarios in our CIP Training section. 9/24/03

• Reg Z Changes Effective October 1

  The FRB final rule revising the official Reg Z commentary which was effective April 1, becomes mandatory on October 1. The revisions, as previously reported in BOL Top Stories, cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. 9/24/03

• OFAC Adds SDGTs

  As reported in a BOL Special Briefing yesterday, OFAC has updated the SDN list by adding 8 individuals as SDGTs. The information regarding the new listings has been placed on the BOL OFAC page. 9/24/03

• September FEDS Working Papers Published

  The FRB has published four new working papers in the Finance and Economic Discussion Series. Papers with the following topics were released: Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?; Further Evidence on the Link between Finance and Growth: An International Analysis of Community Banking and Economic Performance; Modeling Aggregate Investment: A Fundamentalist Approach; and Does Mortgage Hedging Amplify Movements in Long-term Interest Rates?. Rational Expectations    Further Evidence    Modeling    Mortgage Hedging 9/24/03

• Foreign Bank Structure And Share Data Report

  The June 2003 Structure and Share Data for U. S. Offices of Foreign Banks report has been issued by the FRB.Structure and Data Report 9/24/03

• Banks Encouraged to Assist Isabel Victims

  The OCC has outlined measures to assist national banks and their customers affected by Hurricane Isabel.OCC NR 9/24/03

• Final 2nd Quarter Interest Rate Risk Measures

  OTS has released the final Second Quarter 2003 Thrift Industry Interest Rate Risk Measures.Interest Rate Risk Measures 9/24/03

• FDIC Consumer News Summer 2003 Edition

  The Summer 2003 edition of the Consumer News has been published by the FDIC. What consumers need to know about

  credit protection and minimum payments on credit cards are two of the many topics covered in this issue.Consumer News 9/24/03

• CRA Evaluations Released

  OTS has released its CRA performance evaluations for July and August.CRA July    CRA August 9/23/03

• Special Alert Issued by FDIC

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Wakulla Bank, Tallahassee, Florida and counterfeit checks drawn on Commonwealth Co-operative Bank, Boston, Massachusetts payable through Fleet Bank, Boston, Massachusetts. Information regarding the counterfeit checks, in addition to contact information, has been placed on the BOL Alerts & Counterfeits page. 9/23/03

• Regulators Speak to ABA Conference

  FDIC Chairman Powell and Comptroller Hawke made presentations regarding new regulations and the challenges facing the banking industry to the attendees at the ABA Conference in Hawaii.FDIC    OCC 9/23/03

• Electronic Filing of Ownership Reports

  The OCC is issuing an interim rule, with a request for comments, to amend rules, policies, and procedures to require the electronic filing of beneficial ownership reports by officers, directors, and major shareholders of national banks that have equity securities registered under the Securities Exchange Act of 1934 (registered national banks). 68FR54981 (txt) 68FR54981 (pdf) 9/22/03

• Same Day Tax Information Via FedMail

  Effective immediately, FRB Financial Services is offering a new daily tax transaction report available through the FedMail® email delivery service. FRB Services Sameday 9/22/03

• Treasury Agrees with Section 326 Comments

  Treasury has announced that it agrees with the majority of the 34,000 comments received in response to the notice of inquiry issued in July regarding possible changes to Section 326 of the USA PATRIOT Act. The notice of inquiry sought comment on two specific issues: (1) whether financial institutions should be required to retain photocopies of identification documents used to verify customers’ identities; and (2) whether financial institutions should be prohibited from accepting foreign government issued identification documents other than passports as an acceptable form of identification. Treasury PR 68FR55335 (txt) 68FR55335 (pdf)9/19/03

• October HOEPA APR Reference Rates

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in October will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application.H. 15 Daily RatesH. 15 Weekly Rates 9/19/03

• Assistance to Victims of Isabel

  The OTS has announced steps thrifts could take to assist their customers in the areas affected by Hurricane Isabel. Suggested assistance ranges from temporarily waiving late payment charges and early withdrawal of savings penalties to restructuring borrowers’ debt obligations by altering or adjusting payment terms.OTS Isabel Assistance 9/19/03

• Term Investment Option Auction Results

  Treasury has released the results of the Tax and Loan Investment Program Term Investment Option auction held September 18, 2003.Action Results 9/19/03

• Bank Offices May Close Due to Isabel

  The OCC has issued a proclamation allowing national bank offices affected by Hurricane Isabel to close at their discretion.OCC Proclamation 9/18/03

• Enforcement Actions Announced

  The OCC has announced six new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Indiana, Arkansas, Missouri, Pennsylvania, and Oklahoma. OCC NR 9/18/03

• Four International Finance Papers Released

  The FRB has released four International Finance Discussion papers. Topics include: Revisiting the Border: An Assessment of the Law of One Price Using Very Disaggregated Consumer Price Data; News or Noise? An Analysis of Brazilian GDP Announcements; Contagion: An Empirical Test; and How do Canadian Hours Worked Respond to a Technology Shock? Revisiting    News    Contagion   Canadian Hours 9/18/03

• FYI Evaluates Consumer Lending

  The FDIC has placed a new edition of FYI online. This issue of the electronic bulletin features an article evaluating the consumer lending revolution.FDIC FYI 9/18/03

• OTS September 2003 FRB Online

  OTS has placed the September 2003 edition of the Financial Reporting Bulletin on its website. Articles covering Third Quarter Deadlines and the September 2003 TFR Instruction Manual Updates are included in the issue.OTS FRB 9/17/03

• Special Alerts Issued by FDIC

  The FDIC has issued a Special Alerts regarding cashier's checks drawn on Inwood National Bank, Dallas, Texas, which were lost in transit from its printing company; counterfeit cashier's checks drawn on Bank of Lincolnwood, Lincolnwood, Illinois; and counterfeit money orders drawn on First United Bank, Crete, Illinois. Information regarding the missing and counterfeit items in addition to contact information has been placed on the BOL Alerts & Counterfeits page. 9/17/03

• SEC and NY AG Charge BOA Broker

  The SEC and the New York State Attorney General have announced that state criminal and federal civil charges have been filed against a Bank of America (BOA) broker for his role in a scheme involving unlawful trading of mutual funds.Broker Charged 9/17/03

• Fed Funds Rate Target Released

  The Federal Open Market Committee has announced the target for the federal funds rate. FRB PR 9/17/03

• G.17 Report Issued

  The FRB has issued the September 15, 2003 Industrial Production and Capacity Utilization Report.FRB G.17 9/16/03

• Basel Accord Discussed in FRB Bulletin

  The September 2003 FRB Bulletin contains an article regarding capital standards for banks and the evolving Basel Accord.FRB Bulletin 9/16/03

• Cost of Funds Reports Released

  The OTS has released the historical and current reports regarding the cost of funds for OTS regulated SAIF insured institutions.Historical Report    Current Report 9/16/03

• Term Investment Option Auction Results

  Treasury has released the results of the Tax and Loan Investment Program Term Investment Option auction held September 15, 2003.Auction Results 9/16/03

• Risk Based Capital Interim Rule and NPR

  The financial regulators have requested public comment on an interim final rule and issued a notice of proposed rulemaking to amend their risk-based capital standards for the treatment of assets in asset-backed commercial paper programs consolidated under the recently issued FIN 46.Interim Rule   NPR    FRB NR    OCC NR    OTS NR    FDIC PR 9/15/03

• OFAC CMP To Be Released Monthly

  OFAC has announced that it will post certain civil penalties information on the agency's website on the first Friday of each month. The next publication date will be October 3, 2003. OFAC CMP 9/15/03

• OCC Issues Phishing Alert

  The OCC has issued an alert regarding unsolicited e-mails directing consumers to a phony "customer service" Web site or directly asking for customer information. This increasingly common Internet fraud is called "phishing." Banks are encouraged to educate their customers, strengthen monitoring systems, and enhance response programs to reduce the risk to their organizations and customers. OCC Alert 9/15/03

• 2002 Corporate Medium-Term Notes Report

  The FRB has released the 2002 corporate medium-term notes report. Corporate Notes Report 9/15/03

• Derivatives Volume Surpasses $65 Trillion

  The OCC has issued its quarterly Bank Derivatives Report which indicates that derivatives held by U. S. commercial banks increased $4.4 trillion in the second quarter to $65.8 trillion.  Derivatives Report 9/15/03

• Cease and Desist Order Involving BSA

  The FRB has announced the issuance of a Cease and Desist Order against a former senior vice president, chief financial officer, and cashier of the Premier Bank, Denver, Colorado, addressing his compliance with the Bank Secrecy Act.Cease and Desist Order 9/12/03

• NCUA Prohibition Orders Issued

  NCUA has announced the issuance of prohibition orders against four former officers and employees of credit unions in California and Massachuettes. NCUA NR 9/12/03

• SEC Amends Rules and Proposes Changes

  The SEC has adopted amendments to its rules dealing with custody of client assets; proposed a rule that would provide foreign banks meeting certain conditions with exemption from insider loan prohibitions; and voted to propose changes to Form F-6 with regard to registration of certain unsponsored American depositary receipts (ADRs).SEC PR 9/12/03

• International Reserve Position

  Treasury has issued the U. S. International reserve position for the week ending September 5, 2003.Reserve Position 9/12/03

• War on Terrorism Progress Report

  A report on the progress in the war on terrorism financing has been issued by Treasury. Since September 11, 2001, 1439 accounts containing more than $13.7 million in assets has been frozen worldwide.Progress Report 9/12/03

• Revision to OFAC Civil Penalties Regulations

  OFAC is issuing an interim final rule to provide revisions to its civil penalties regulations promulgated pursuant to the Trading with the Enemy Act. These revisions consolidate substantive changes to the Foreign Assets Control Regulations, and the Cuban Assets Control Regulations, in a new subpart of the Reporting and Procedures Regulations, renamed Reporting, Procedures, and Penalties Regulations. Conforming changes are made to the other parts of the regulations. 68FR53640 (txt final rule)     68FR53640 (pdf final rule) 68FR53662 (txt proposed rule)     68FR53662 (pdf proposed rule) 9/11/03

• Uniform Residential Loan Application Updated

  The FRB has published in the Federal Register a technical amendment to Regulation B (Equal Credit Opportunity). The amendment updates the model application form ``Uniform Residential Loan Application". 68FR53491 (txt) 68FR53491 (pdf) 9/11/03

• FRB Interpretations Regarding 23A

  The FRB has released five legal interpretations regarding grants of exemptions from the quantitative limits of section 23A of the Federal Reserve Act, 12 U.S.C. 371c. Feb. 14, 2003    March 1, 2002    June 19, 2002    February 27, 2003    August 14, 2003    9/11/03

• Credit Quality Stabilizes

  The quality of large syndicated bank loans stabilized this year, according to the Shared National Credit (SNC)1 review released by federal bank regulators. FRB PR    OCC PR    OTS PR    FDIC PR 9/11/03

• Get the Scoop on the New Currency

  The first newly redesigned Series-2004 $20 notes, featuring background colors and improved security features, will be issued October 9. Read Series-2004 $20 Bills to be Issued in October. 9/10/03

• Z. 1 Flow of Funds Report Released

  The FRB has released the second quarter 2003 Z.1 Flow of Funds Accounts of the United States.Z. 1 9/10/03

• Banks Face New Challenges

  The FDIC has issued the fall 2003 edition of the FDIC Outlook which states the faster economic growth in the second half of 2003 could pose new challenges for banking and thrift institutions, particularly those that specialize in mortgage lending.FDIC Outlook 9/10/03

• Reg F Final Rule Issued

  The FRB has adopted final, technical amendments to its Regulation F that remove an obsolete section of the rule and correct severaltypographical errors. 68FR53283 (txt)68FR53283 (pdf)9/10/03

• FRB Application Information Available Online

  An online guide for U.S. and foreign banking organizations submitting applications to the Federal Reserve has been added to the FRB public web site. FRB SR 03-16 Applications Information 9/9/03

• FDIC Announces CRA Evaluations

  The FDIC has issued the September list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in June 2003. CRA Evaluations 9/9/03

• OTS Audit Requirements Final Rule

  OTS has adopted a final rule that amends the annual independent audit requirements for certain savings institutions. Final Rule 9/9/03

• OTS Issues Fiduciary Activities Final Rule

  OTS has issued a final rule amending its regulation governing agency offices of federal savings associations. Final Rule    68FR53204 (txt)    68FR53204 (pdf) 9/9/03

• Fed ACH International Services to Offer LPIs

  FedACH International Services will offer limited production implementations (LPIs) of Transatlantic and Mexico services expected to begin November 3, 2003. FedACH LPIs 9/9/03

• Twenty New SDGTs

  OFAC has designated twenty new individuals as SDGTs. Information regarding the designations has been added to the BOL OFAC page. 9/8/03

• UBPR and FFIEC Report Forms Online

  The FFIEC has made available on its web site the June 30, 2003 UBPR and the September 2003 FFIEC 031 and 041 report forms.UBPRFFIEC 031 FFIEC 041 9/8/03

• New MSA Questions Answered

  The FFIEC has issued answers to the most common questions that have been asked regarding the June 2003 changes in MSA boundaries and terminology.FFIEC HMDA Q & As FFIEC CRA Q & As 9/8/03

• U.S. International Reserve Position

  The Treasury Department has released the U.S. reserve assets data for the latest week. Reserve Position 9/8/03

• Comments Sought Regarding FRB Reports

  The FRB has issued proposals for comment regarding the approval of extensions for three years of the Monthly Report of Traveler's Checks Outstanding (FR 2054); and the following Government Securities Dealers Reports: FR 2004A, FR 2004B, FR 2004C, FR 2004SI, FR 2004SD, and FR 2004WI.FRB Proposals 9/8/03

• Subprime Lender Charged by FTC

  The FTC has charged subprime lender Stewart Finance Company, its owner, and nine related companies with violating federal lending laws and has asked a U.S. District Court to immediately halt their practices and order redress for consumers who were victims.FTC PR   Complaint 9/5/03

• Bond Trading Enforcement Actions

  The SEC has announced enforcement actions against Goldman Sachs, Massachusetts Financial Services Company, and three individuals relating to trading based on non-public information about Treasury's decision to cease issuance of the 30-year bond.SEC PR   Goldman Sachs Order    Mass. Financial   Compliant Against Individuals 9/5/03

• Charge-Off and Delinquency Rates Released

  The FRB has released the quarterly report of charge-off and delinquency rates on loans and leases at commercial banks.Charge-Off Rates 9/5/03

• Earnings Record Set in Second Quarter

  Commercial banks and savings institutions insured by the FDIC posted record earnings in the second quarter of 2003, breaking the previous quarterly high set in the first quarter of this year.FDIC PR Quarterly Banking Profile 9/5/03

• September Treasury Bulletin Available Online

  The FMS has placed the September 2003 Treasury Bulletin on its web page.Treasury Bulletin 9/5/03

• FTC Issues ID Theft Survey Results

  The results of a survey regarding identity theft conducted by the FTC indicate over 27 million Americans have been victims of ID theft in the last five years and losses for business and consumers exceed $50 billion. Review the highlights of the survey data in a BOL article from Mary Beth Guard, "ID Theft: The Real Numbers". 9/4/03

• Executive Order Blocks Iraqi Assets

  President Bush has issued Executive Order 13315 blocking property of the former Iraqi Regime, its senior officials and their family members. Information regarding the Executive Order has been placed on the BOL OFAC page. 9/4/03

• FDIC Enforcement Actions Announced

  The FDIC has announced 18 enforcement orders. The actions include two cease-and-desist orders, four removal-and-prohibition orders, two civil money penalty orders, one termination of insurance order, seven terminations of cease-and-desist orders, and two adjudicated decisions. Enforcement Orders 9/4/03

• Counterfeit Cashier's Checks

  The FDIC has issued Special Alerts regarding counterfeit cashier's checks drawn on First National Bank of Abilene, Abilene, Texas and counterfeit official checks drawn on Nevada State Bank, Las Vegas, Nevada. Information concerning the counterfeit checks has been placed on the BOL Alerts & Counterfeits page. 9/4/03

• OCC Bulletin Regarding Auditing Final Rule

  The OCC has issued Bulletin 2003-38 regarding the joint final rule previously issued by the financial regulators concerning the removal, suspension, and debarment of accountants from performing annual audit and attestation services. Information pertaining to the final rule was published in BOL Top Stories on August 11, 2003. 9/4/03

• FTC Issues ID Theft Survey Results

  The results of a survey regarding identity theft conducted by the FTC indicate over 27 million Americans have been victims of ID theft in the last five years and losses for business and consumers exceed $50 billion. Review the highlights of the survey data in a BOL article from Mary Beth Guard, "ID Theft: The Real Numbers". 9/4/03

• Beige Book Economic Report Released

  The FRB has released the informal review by the Federal Reserve Banks of current economic conditions in their districts.Beige Book Summary   Beige Book Full Report  9/4/03

• New FEDS Working Papers Available

  Three new working papers in the Federal Economic and Discussion Series have issued by the FRB. The topics include: "Interest Rates as Options": Assessing the Markets' View of the Liquidity Trap; The Replacement Demand for Motor Vehicles: Evidence from the Survey of Consumer Finances; and Inflation Targets Credibility and Persistence in a Simple Sticky-Price Framework.Interest Rates  Replacement Demand   Inflation Targets 9/4/03

• Four FedACH File Deliveries Per Day

  FR Services has announced that starting September 19, 2003, FedACH output files will be delivered four times daily. FedACH Files 9/4/03

• Minnesota Bank Enforcement Actions

  The FRB has announced the execution of a Written Agreement by and between the Ridgedale State Bank, Minnetonka, Minnesota and the Federal Reserve Bank of Minneapolis and the issuance of a Cease and Desist Order against the president of the bank.Written Agreement Cease and Desist Order 9/3/03

• Written Agreement Involving BSA and AML

  The FRB has announced the entering into a written agreement with Gold Banc Corporation and Gold Bank of Leawood, Kansas regarding BSA, AML, information technology, customer due diligence, Reg O and Reg Y.Written Agreement 9/3/03

• Regulators Release CRA Exam Schedules

  The OCC and OTS have released their fourth quarter 2003 CRA examination schedules.OCC CRA Exam Schedule    OTS CRA Exam Schedule 9/3/03

• Application Web Site Launched by FRB

  The FRB has launched a new web site which contains general information about the types of filings required by the Federal Reserve and how they are processed.FRB Application Information 9/3/03

• June 30 Call Report Data Released

  The FDIC has released the June 30, 2003 call and thrift financial report data.FDIC Reports 9/3/03

• TFR Filing Due Date Unchanged

  The OTS has decided to not change the TFR filing date and released the March 2004 form, schedules, forms and mapping information.TFR Filing Date    March 2004 Form    2004 Schedules    2004 Forms   Mapping 9/2/03

• Uncertainty and Monetary Policy

  Chairman Greenspan observed in remarks presented at a FRB symposium that uncertainty was the defining characteristic of the money policy landscape. He stated conducting U. S. monetary policy involves crucial elements of risk management and devising a strategy directed at achieving price stability and sustainable economic growth. He also identified a set of key relationships that are utilized to approximate the economy's dynamics.Greenspan Remarks 9/2/03

• FRB Reassigns a few Routing Symbols

  The FRB is amending appendix A of Regulation CC to delete the reference to the Pittsburgh check processing office of the Federal Reserve Bank of Cleveland and reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Cleveland. 68FR52077 (txt) 68FR52077 (pdf) Correction 9/2/03

• Two New Burma General Licenses Issued

  OFAC has issued two new General Licenses under the Burma sanctions program. Information regarding the new licenses has been placed on the BOL OFAC page. 8/29/03

• Reg CC Amendments Announced

  The FRB has announced amendments to Appendix A of Regulation CC, effective November 1, 2003, that reflect the restructuring of the Federal Reserve's check processing operations in the Fourth District. As a result, some checks deposited in the affected regions that currently are nonlocal checks will become local checks that are subject to shorter permissible hold periods.Reg CC Amendment 8/29/03

• Removal Orders and CMPs Issued

  The FDIC has announced the issuance of removal and prohibition orders in addition to imposing civil money penalties against bankers in Illinois, Wisconsin, Minnesota and Tennessee. Illinois Bankers    Wisconsin Banker    Minnesota Banker    Tennessee Banker    Tennessee Banker 8/29/03

• FRB Proposes Changes to the Anti-Tying Restrictions

  The proposed exception provides that a financial subsidiary of a state nonmember bank shall be treated as an affiliate of the bank, and not as a subsidiary of the bank, for purposes of section 106. The anti-tying restrictions of section 106 generally apply to subsidiaries, but not affiliates, of banks. 68FR51938 (txt) 68FR51938 (pdf) 8/29/03

• $3 Million CMP for Anti-Tying Violations

  The FRB has announced the issuance of a Combined Consent Order to Cease and Desist and an Order of Assessment of a civil money penalty in the amount of $3 Million against WestLB AG, Dusseldorf, Germany, and its New York Branch for violations of anti-tying restrictions of the Bank Holding Company Act and related unsafe and unsound banking practices.FRB Order 8/28/03

• 23 Enforcement Actions Announced

  The OCC has announced 23 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions 8/28/03

• 35 CRA Evaluations Released

  The OCC has released the CRA performance evaluations for the period of July 15, 2003 through August 14, 2003. Of the 35 evaluations made public this month, 6 were outstanding, 28 were satisfactory and 1 was needs to improve. CRA Evaluations 8/28/03

• OCC Bulletin Regarding Guidance

  The OCC has issued Bulletin 2003-37 concerning the publication in the Federal Register by the financial regulators of proposed interagency guidance on response programs for unauthorized access to customer information and customer notice. Information regarding the proposed guidance was featured in BOL Top Stories on August 12, 2003. 8/28/03

• FRB Publishes August Working Papers

  The FRB has published the August edition of the working papers in the Finance and Economic Discussion Series. Topics include: An Empirical Test of a Two-Factor Mortgage Valuation Model: How Much Do House Prices Matter?; Inflation Scares and Forecast-Based Monetary Policy; and Volatility Puzzles: A Unified Framework for Gauging Return-Volatility Regressions.Empirical Test Monetary Policy Volatility Puzzles 8/27/03

• Prelim 2nd Quarter Interest Rate Risk Data

  The OTS has released preliminary interest rate risk measures for the second quarter of 2003.
  Interest Rate Data 8/27/03

• Addition and Updates to SDN List

  OFAC has added one new entry and updated four others. Information regarding the addition and the updates has been placed on the BOL OFAC page. 8/25/03

• Anti-Tying Comment Period Starts

  The FRB has announced it will accept comments until September 30, 2003 on proposed interpretations to the anti-tying restrictions of the BHC and Reg Y. The interpretations provide a comprehensive guide to the restrictions and a new exception for subsidiaries of state nonmember banks.FRB Interpretation    FRB Comment Request    OCC Statement 8/26/03

• Don't Let Your Customers Be Duped

  Help spread the word about a scam involving the FTC's Do Not Call program. Advertisements are running nationwide urging consumers to call an 800 number and pay only $2.95 to sign up on the system. The ads are not from the FTC who does not charge a fee for the service.FTC Warning 8/26/03

• FRB Publishes Adjusted Dollar Amount for Reg Z

  The FRB is required to adjust annually the dollar amount that triggers requirements for certain home mortgage loans bearing fees above a certain amount. The adjusted dollar amount for 2004 is $499.
  68FR50965 (txt) 68FR50965 (pdf) 8/25/03

• Updating FinCEN Search Contact Point

  FinCEN has disseminated directions for financial institutions to follow in the event they need to update, change, add, or delete the institution’s point of contact information on FinCEN’s distribution list for receiving Section 314(a) search requests.
  FinCEN 8/25/03

• ABA Helps Secure Fax Regs Delay

  As a result of efforts by the ABA and other organizations and associations, the FCC has delayed the effective date for regulations that require prior written permission for commercial faxes until January 1, 2005. Originally, those regulations were scheduled to take effect August 25, 2003. Regardless of the extension, however, fax transmitters still must obtain prior express permission from fax recipients with whom they do not have established business relationships.FCC News Release    FCC's reconsideration order 8/25/03

• Hamas Entities and Leaders Designated SDGTs

  The President has announced the designation of five Hamas related charities and six leaders as SDGTs, the freezing of their assets in the U.S. and prohibiting transactions with U.S. nationals. Details of the designations can be found on the BOL OFAC Page. 8/25/03

• OTS Regional Financial Management Seminars

  The Office of Thrift Supervision has scheduled three more regional seminars to be held during October 2003 in Columbus, Ohio; Warwick, Rhode Island; and Pittsburgh, Pennsylvania to cover an Industry Overview, Accounting Updates, Examination Updates, Regulatory Capital Update, Interest Rate Risk and Capital Markets Update, and Audit Update. OTS SeminarsRegistration Form 8/25/03

• Two Additional Burma General Licenses Issued

  OFAC has issued two additional General Licenses under the Burma sanctions program. Information regarding the new licenses has been placed on the BOL OFAC page. 8/25/03

• FDIC Issues Final Rule Governing Filing Procedures

  The changes to Part 303 and the technical corrections to other regulations in Chapter III clarify: The rules relating to time period commencements; The FDIC's response time for certain filings; The required rating for expedited processing for thrift and thrift holding company filings; That the acquisition of control of a parent company of a state nonmember bank generally requires a change in control notice; and The certification to be made by an insured depository institution relating to golden parachute payments. FDIC:FIL-67-2003 68FR50457 (txt) 68FR50457 (pdf) 8/22/03

• Strengthening Financial Risk Management at the FDIC

  The Federal Deposit Insurance Corporation engaged McKinsey & Company to perform a review of its reserving methodology and processes as well as other financial risk management practices. The resulting report is posted on the FDIC website. Report 8/22/03

• Flood Violation Civil Money Penalty

  The FRB has announced the issuance of a consent Order of Assessment of a Civil Money Penalty in the amount of $5,250 against the Community State Bank, Villa, Indiana for alleged violations of the National Flood Insurance Act.
  FRB Civil Money Penalty     Flood Training 8/21/03

• Revised Exam Procedures Available Online

  The FDIC has placed the revised compliance examination procedures which superseded sections of the Compliance Examination Manual on its web site. FDIC Revised Procedures Online 8/21/03

• Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Peninsula Bank, Englewood, Florida. Information regarding the counterfeit items and contact information has been placed on the BOL Alerts & Counterfeits page. 8/21/03

• Late Return Dispute Resolution

  The Federal Reserve has established procedures to assist depository institutions in the resolution of late claim disputes including an enhanced sign-on method for payor bank/deposit services and check adjustments via FedLine for the Web.FRB Financial Services 8/21/03

• U.S. International Reserve Position

  Treasury has released the U.S. reserve assets data for the week ending August 15, 2003. Reserve Position 8/21/03

• G.20 Finance Companies Report

  The FRB has released the June 2003 G.20 Finance Report regarding owned and managed receivables.G.20 8/21/03

• Thrifts Set Earnings Records

  The OTS has announced that in the second quarter of 2003 the nation's thrift industry set records for net income, profitability, equity capital and mortgage originations.OTS Records 8/21/03

• 2004 HOEPA Trigger Established

  The FRB has announced the 2004 adjustment to the dollar amount that triggers HOEPA for home mortgage loans when total points and fees payable by the consumer exceed the fee-based trigger which is adjusted annually. FRB HOEPA Trigger 8/20/03

• Disciplinary Actions Against Accountants

  The FDIC has issued FIL-66-2003 concerning the interagency final rules that establish procedures under which the agencies can remove, suspend, or bar an accountant or firm from performing audit and attestation services for insured depository institutions. Information regarding the final rules was previously featured in BOL Top Stories on August 13, 2003. 8/19/03

• FIL Regarding OFAC Changes

  The FDIC has issued FIL-65-2003 regarding the addition of one corporation to the SDNT list and the designation of two individuals as SDGTs. The information concerning the OFAC changes was added on August 8, 2003 to the BOL OFAC Page. 8/19/03

• September HOEPA APR Reference Rates

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in September will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application.
  H.15 Daily Rates    H. 15 Weekly Rates 8/19/03

• August Financial Holding Company List

  The FRB has issued the August 1, 2003 list of bank holding companies that have elected to become financial holding companies or be treated as financial holding companies. FRB FHC List 8/19/03

• Burma Program New Licenses Issued

  OFAC has issued five new general licenses under the Burmese sanctions program. Details regarding the new licenses have been placed on the BOL OFAC page. 8/18/03

• SDGT Added and Three Entries Updated

  A foreign terrorist organization has been listed as a SDGT and three existing entries have been updated by OFAC. Information regarding the listing and the updates has been placed on the BOL OFAC page. 8/18/03

• July 2003 G.17 Report

  The FRB has released the G.17 Industrial Production and Capacity Utilization report for July 2003.G.17 8/18/03

• Bank Lending Practices Survey Results

  The results of the August 2003 senior loan officer opinion survey on bank lending practices has been released by the FRB. FRB PR Full Report 8/18/03

• OTS Issues Cost of Funds Reports

  The OTS has issued reports regarding the national average cost of funds ratio to OTS regulated SAIF insured institutions.June 2003 Report Historical Report 8/18/03

• Federal Agency Lockbox Service Opportunities

  The Financial Management Service has published an Invitation for Expressions of Interest for the General Lockbox Network. Any qualified financial institution that is interested in providing general lockbox services to Federal government agencies must submit a notice of intention to respond.FMS Lockbox Invitation 8/18/03

• OCC Issues Final Rule to Promote Public Welfare

  This final rule updates the regulation to reflect the additional types of public welfare investment structures that have become more common in recent years and that are permissible under the governing statute. 68FR48771 (txt) 68FR48771 (pdf) 8/15/03

• FIL Regarding Burma Sanctions

  The FDIC has issued FIL-64-2003 concerning an Executive Order issued by the President with respect to Burma (Myanmar) that added four new entries to the SDN list, blocked property of the government of Burma, and prohibited certain transactions. Information regarding the Executive Order was previously included in BOL TOP Stories on July 30, 2003. 8/15/03

• Counterfeit Money Orders Special Alert

  The FDIC has issued a Special Alert regarding counterfeit money orders drawn on The Monongahela Valley Bank, Inc., Fairmont, West Virginia. The counterfeit money orders contain a misspelled word and are printed on the wrong color stock. Information regarding the money orders and contact information has been placed on the BOL Alerts & Counterfeits page. 8/15/03

• FRB Finance and Economics Working Papers

  Eleven new working papers in the Finance and Economics Discussion series are now available on the FRB Web site. Topics range from "Economic and Regulatory Capital Allocation for Revolving Retail Exposures" to "Inflation Persistence and Relative Contracting".FRB Working Papers 8/14/03

• Accountants Rule Published in Federal Register

  Section 36, as implemented by 12 CFR part 363, requires that each insured depository institution with total assets of $500 million or more obtain an audit of its financial statements and an attestation on management's assertions concerning internal controls over financial reporting by an independent public accountant (accountant). The insured depository institution must include the accountant's audit and attestation reports in its annual report. This was previously published in BOL Top Stories on August 11th. 68FR48256 (txt) 68FR48256 (pdf) 8/13/03

• HMDA 2004 Training Presentation

  FFIEC has placed a training presentation regarding HMDA 2004 and the revisions to Reg C on its Web site.FFIEC HMDA Training 8/13/03

• ID Theft Notification Program Comments

  Financial regulators have requested comments on a proposed interagency guidance that would require financial institutions to develop a response program to protect against risks to customer information which includes procedures for the notification of customers whose information may have been compromised. Interagency Guidance  FDIC PR   FDIC FIL   OCC NR   FRB PR   OTS PR 8/13/03

• U.S. International Reserve Position Released

  Treasury has released the U.S. reserve assets data for the week ending August 8, 2003.Reserve Position 8/13/03

• Fed Funds Target Rate Set

  The Federal Open Market Committee has set the target rate for federal funds.Target Rate 8/13/03

• Interagency Guidance on Response Programs

  The Agencies are requesting comment on proposed guidance entitled Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice. 68FR47954 (txt) 8/12/03

• Credit Repair Firm to Pay $1.15 Million

  One of the country's largest credit-repair operations has agreed to pay more than $1.15 million in consumer redress to settle FTC charges that it violated federal law by falsely claiming that it could remove derogatory information from consumers’ credit reports, even if that information was accurate and not obsolete. FTC Complaint Settlement 8/12/03

• OCC Issues Liquidity Management Bulletin

  The OCC has issued Bulletin 2003-36 regarding the "Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management" which was previously issued by the financial regulators. Information concerning the advisory was published in BOL Top Stories on July 24, 2003. 8/12/03

• OFAC Adds New SDN and Two SDGTs

  OFAC has blocked the property and interests of a new SDN entity and two new individuals have been added as SDGTs. Information regarding the new listings has been placed on the BOL OFAC page. 8/11/03

• Regulators Can Discipline Outside Auditors

  The financial regulators have issued final rules governing their authority to take disciplinary actions against independent public accountants and accounting firms that perform audit and attestation services required by the Federal Deposit Insurance Act.   Joint Final Rule  FRB PR  OCC NR 2003-62   OTS 03-25   FDIC PR-77-2003 8/11/03

• Guidelines for Real Estate Lending Policies

  The OCC has issued an advisory letter regarding the reiterated and expanded guidance contained in its Commercial Real Estate and Construction Lending booklet. Finished lot loans, risk management insurance products and nonconforming loan amounts are addressed by the guidance. OCC AL 2003-7 8/11/03

• Thrift Activities Handbook Updated

  OTS has issued a regulatory bulletin regarding the update of the Operations Analysis section of the Thrift Activities Regulatory Handbook. OTS RB-32-39 8/11/03

• Counterfeit Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Klein Bank, Spring, Texas and The Peoples State Bank, Clyde, Texas. Information regarding the checks and contact information has been placed on the BOL Alerts & Counterfeits page. 8/11/03

• FinCEN Seeks Comments on Strategic Plan

  FinCEN has published a draft of its 2003-2008 Strategic Plan. Comments are sought from all parties that might be affected or interested.FinCEN Strategic Plan 8/11/03

• ECOA Adverse Action New Address

  The OCC has announced that its Customer Assistance Group has a new address. Banks should begin using the new address in adverse action notices required under the Equal Credit Opportunity Act as soon as practicable.OCC Bulletin 2003-33 8/8/03

• OCC Bulletin Regarding NPR

  The OCC has issued Bulletin 2003-35 announcing the publication in the Federal Register on August 5 of a notice of proposed rulemaking on bank activities and operations; and real estate lending and appraisals. The publication of the NPR was previously reported in BOL Top Stories. 8/8/03

• OCC Issues Reg C Transition Bulletin

  The OCC has issued Bulletin 2003-34 regarding the prior issuance by the FRB of final transition rules for Reg C. Information regarding the final rule was previously announced in the May 28, 2003 BOL Top Stories. 8/8/03

• Bank Directors and Corporate Governance

  The role of the board of directors in the control process and how they can become more informed were two of the many topics relating to corporate governance that were discussed by FRB Governor Bies at the Community Bank Directors Conference. She also reviewed the risks that can occur at community banks without effective governance.
  Speech 8/8/03

• Consumer Credit Report Released

  The FRB has released the G.19 Consumer Credit Report for June 2003.G.19 8/8/03

• CRA Evaluations Released

  The FDIC has issued the list of state nonmember banks evaluated in May 2003 for compliance with CRA. Of the 157 banks evaluated, 14 received an outstanding rating and the remainder were rated satisfactory.CRA List 8/7/03

• Director Nomination Disclosures Proposed

  The SEC has proposed rule changes that would strengthen disclosure requirements relating to nomination of directors and shareholder communications with directors. The changes result from an internal study conducted by the SEC staff. Information regarding the study was previously reported in BOL Top Stories on July 14, 2003. SEC PR 8/7/03

• NCUA Continues Interest Rate Ceiling

  The current 18 percent per year federal credit union maximum loan rate was scheduled to revert to 15 percent on September 9, 2003 The NCUA Board has continued the current ceiling through March 8, 2005. 68FR46439 (txt) 68FR46439 (pdf) 8/6/03

• Weekly Reserve Position Data Released

  Treasury has released the U.S. International reserve assets data for the week ending August 1, 2003. International Reserve Position 8/6/03

• Bogus IDs Cases Settled

  The FTC has announced the settlement of the cases against two companies who were marketing fake international driver's permits. The firms claimed the IDPs, which were marketed on a Web site, were valid as driver's licenses in all states and also would serve as government issued photo identification. FTC PR   Settlement Order 8/6/03

• Advance Fee Loan Operation Shut Down

  The FTC has settled a complaint it filed against a New York loan office that used newspaper classified ads and an Internet Web site to induce consumers to pay an advance fee ranging from $50 to $300 to obtain a guaranteed loan of a desired amount regardless of the consumer.s credit history. The company falsely advertised a full refund if the consumer did not get the promised loan.  FTC PR  Settlement 8/6/03

• Comments Requested on Applicability of State Law to National Banks

  The OCC proposes to amend parts 7 and 34 of their regulations to add provisions clarifying the applicability of state law to national banks. These provisions would identify types of state laws that are preempted, as well as types of state laws that generally are not preempted, in the context of national bank lending, deposit-taking, and other authorized activities. 68FR46119 (txt) 68FR46119 (pdf) 8/5/03

• Comments Sought On Basel Accord ANPR

  The financial regulators have issued a joint ANPR and request for comments regarding the proposed implementation of the new Basel Capital Accord in the United States. Information regarding the ANPR was previously reported in BOL Top Stories on July 14.   FRB PR    OCC NR 2003-61    OTS 03-24    FDIC-PR-75-2003    FDIC FIL-62-2003    FDIC FIL-61-2003    ANPR    Draft Guidance 8/5/03

• August 1 FHC List Released

  The FRB has released the August 1, 2003 list of bank holding companies that have become or have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act.  FHC List 8/5/03

• Agencies Issue Sound Practices Paper

  The FRB, OCC and SEC have issued an "Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" which identifies sound practices to strengthen the resilience of critical U.S. financial markets.  Interagency Paper    OCC NR 2003-28 8/5/03

• June Asset and Price Liability Tables Available

  The Asset and Price Liability Tables for June 30, 2003 have been released by OTS.  Asset -Liability Tables 8/5/03

• FedImage Retrieval Pricing Options Change

  Effective September 1, 2003, FedImage Retrieval customers will have the option to change the way they pay for retrieving check images stored in our image archive. This new option allows customers to elect to pay for retrieval services through a per retrieval fee or through a new subscription retrieval service. The subscription retrieval service applies a fee across each image archived rather than paying on a per-retrieval basis. You can then retrieve images without an additional retrieval fee. The per-item fee varies depending on your monthly retrieval rates. Federal Reserve Financial Services Announcement 8/4/03

• OCC Orders Bank to Refund Fees

  The Office of the Comptroller of the Currency has entered into a formal agreement with First Consumers National Bank, Beaverton, Oregon, that requires the Bank to refund various credit card fees to customers. The agreement requires the Bank to refund annual fees on Bank-issued credit cards charged to customers on or after a particular date when the Bank knew it would have to liquidate its credit card portfolio and it should have informed customers of that fact when they renewed or initiated their credit cards. The OCC asserted that the Bank’s failure to do inform customers was an unfair and deceptive practice. The amount of annual fee refunds is approximately $1.65 million. NR 2003-60 Formal Agreement 8/4/03

• FDIC Warns of Entity Advertising Unlawfully

  The FDIC has issued an alert regarding Fidelity Financial Trust, an entity unlawfully advertising FDIC membership on its Internet Web site. The Web site for the entity indicates that its main office is located in Amsterdam, the Netherlands. The FDIC does not insure this entity nor any products or services that it offers. SA-45-2003. ) 8/4/03

• 2002 HMDA Data Available<

  Data regarding mortgage lending transactions for the year 2002 at 7,771 financial institutions covered by the Home Mortgage Disclosure Act has now been made available online by the FFIEC. These data include disclosure statements for each financial institution, aggregate data for each metropolitan area, and nationwide summary statistics regarding lending patterns. FFIEC Press Release. (Includes links to Tables) 8/4/03

• FCRA-Related Changes in Works?

  Secretary of the Treasury John Snow testified before the Senate Banking Committee on strengthening the Fair Credit Reporting Act. Among the proposals being considered are free credit reports upon request; a National Security Alert System; a system for having bank regulators watch for red flags indicative of fraud; a prohibition on the sale or transfer of ID theft debt; and giving FTC the authority to adopt rules requiring adverse action notices to be given when an applicant's credit score results in their being offered less favorable rates. Treasury Press Release 8/4/03

• CRA Data Available on Small Biz and Farm Lending

  The FFIEC announced that the 2002 data is now available on small business, small farm, and community development lending reported by commercial banks and thrifts. The 2002 CRA data reflect originations and purchases of small business, small farm, and community development loans from 1,986 institutions, including 1,495 commercial banks and 491 savings associations. FFIEC Press Release 8/4/03

• OCC Proposes Predatory Lending Rule

  The OCC is proposing proposed a new regulation that would clarify what types of state laws apply to national banks and would establish a strong anti-predatory lending standard. In a related action, the OCC announced its position that the Georgia Fair Lending Law does not apply to nationally chartered banks or to national bank operating subsidiaries.   Release 2003-59   Statement From The Comptroller    Georgia Preemption Order    NPRM    Q&As - Georgia (GFLA)    Q&As - NPRM    OCC Working Paper 8/1/03

• FDIC & NCUA Issue Advance Fee Scam Alerts

  The FDIC and NCUA each put out an alert relating to fraudulent activities involving the use of official financial institution logos in newspaper advertisements. This practice is believed to affect as many as 50 financial institutions. Fraudulent ads for various types of loans are being used to dupe unwitting victims into believing they will be dealing with a legitimate financial institution. They are asked to pay an advance fee, and must, as part of the application process, reveal personal information, such as Social Security numbers, that could be used for ID theft. No loan proceeds are actually advanced, and the scammers escape with the advance fees.   SA-44-2003   NCUA Advisory

• FDIC Call and Thrift Financial Reports

  Preliminary data for June 30, 2003, are now available. FDIC 8/1/03