Top Story Security Related

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

• Beneficial Ownership Report Filings System

  Searchable database of Beneficial Ownership Reports filed with FDIC, FRB and OCC.Beneficial Ownership Reports 7/31/03

• July 2003 Beige Book Issued

  The FRB has published the July 21, 2003 issue of the Beige Book which contains summaries of the economic conditions in each of the twelve Federal Reserve Districts. Beige Book 7/31/03

• Executive Order Adds SDNs

  The President has issued an Executive Order with respect to Burma (Myanmar) that adds four new entries to the SDN list, blocks property of the government of Burma, and prohibits certain transactions. Information regarding the Executive Order has been placed on the BOL OFAC page. 7/30/03

• OCC Issues Advisory Letter

  The OCC has issued Advisory Letter 2003-6 to inform national banks of the withdrawal by FinCEN of Advisory Issue 27, regarding St. Vincent and the Grenadines. As a result, enhanced scrutiny with respect to transactions involving St. Vincent and the Grenadines is no longer necessary. The FinCEN action was previously reported on July 3, 2003 in BOL Top Stories. 7/30/03

• Regulators Testify Regarding FCRA

  Representatives of the FRB, FDIC and FTC all testified before the Senate Committee on Banking, Housing, and Urban Affairs regarding their agencies respective roles under FCRA.FRB TestimonyFDIC TestimonyFTC Testimony 7/30/03

• July Financial Holding Company List

  The FRB has issued the July list of bank holding companies that have elected to become financial holding companies or be treated as financial holding companies.FRB FHC List 7/30/03

• U. S. Reserve Assets Increase

  Treasury has released the U.S. reserve assets data for the week ending July 25, 2003. U.S. reserve assets totaled $81,757 million as of the end of that week, compared to $80,950 million as of the end of the prior week.International Reserve Position 7/30/03

• Enron Mess Entangles Two FIs

  Following the review of transactions involving Enron Corporation, J.B. Morgan Chase & Company and Citigroup, Inc., along with their respective subsidiaries, have entered into separate written agreements with the Federal Reserve to strengthen their risk management practices. In related actions, Citigroup has entered into a written agreement with the OCC; J.P. Morgan Chase agreed to pay $135 million to settle SEC allegations that it helped Enron commit fraud; and Citigroup agreed to pay $120 million to settle SEC allegations that it helped Enron and Dynegy commit fraud.J. B. Morgan Chase Agreement    Citigroup FRB Agreement    Citigroup OCC Agreement   SEC Agreements 7/29/03

• Interagency Electronic Filing System Announced

  The three major bank regulators have announced a new electronic filing system that will allow faster and easier submission and public retrieval of beneficial ownership reports filed by directors, officers, and principal shareholders of publicly traded institutions.FRB    OCC    FDIC FIL 7/29/03

• OCC Quarterly Journal Released

  Read about the performance of commercial banks, peruse a collection of interpretative letters, see how bank supervision in the U. S. compares with other countries and more in the March 2003 issue of the OCC's Quarterly Journal, Volume 22,No.1. OCC Quarterly Journal 7/29/03

• Counterfeit Cashier's Checks Special Alert

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Perkins State Bank, Williston, Florida. The counterfeit checks have the institution's correct routing number, but do not use the correct account number. Information regarding the checks and contact information has been placed on the BOL Alerts & Counterfeits page. 7/29/03

• DNC Registry Is a Hit

  As of July 28, 2003, 28.7 million telephone numbers were listed in the National Do Not Call Registry. As a side note, this shows the power of the Internet, 80% of the registrations were made online.FTC DNC Registry 7/29/03

• NCUA Realignment Plan Released

  NCUA released its realignment plan which provides a timeline for the agency's transition from six regional offices to five and the relocation of one office.NCUA Realignment Plan 7/29/03

• FRB Issues Primary Credit Supervisory Letter

  The FRB has issued supervisory letter SR-03-15 regarding the Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management recently issued by the FRB, FDIC, OCC, OTS, and NCUA. The release of the Advisory was previously reported BOL Top Stories on July 24, 2003. 7/28/03

• Comptroller Says Change The Way We Combat Predatory Lending

  Comptroller Hawke in a presentation before the Federalist Society expressed concern that the current approach to fighting predatory lending has resulted in making it more difficult for creditworthy subprime borrowers to obtain credit. He suggested a better approach would be to focus regulatory enforcement powers on abusive lenders, most of which are outside of the traditional banking industry.Comptroller's Speech 7/25/03

• Regulators Explain Differences in Capital and Accounting Standards

  The OCC, FRB, FDIC, and OTS have issued a joint annual report to Congress which describes the differences between the accounting and capital standards used by and among the agencies. This is the first joint annual report to be submitted by the agencies, previously they reported separately.Joint Annual Report 7/25/03

• Unique Slogan Placed On Some Treasury Checks

  Treasury has announced that in an effort fight check fraud a unique slogan, "TAX RELIEF FOR AMERICA'S FAMILIES", is printed on the bottom of the 26.3 million Child Tax Credit Advance Payment checks which will be mailed to eligible taxpayers. In addition, it was noted that the stated amount of most of the checks will be a multiple of $400. The checks will also contain the standard security features of other Treasury checks.Child Tax Credit Checks 7/25/03

• Two Canadian Entities Subject of Special Alert

  The FDIC has issued a Special Alert regarding two Canadian entities that may be conducting unauthorized banking activities in the United States and Canada. Financial institutions are instructed to view with extreme caution any proposed transactions involving Starlife Financial Limited, Toronto, Ontario and Allied Asset Management, Vancouver, British Columbia.FDIC SA-42-2003 7/25/03

• Discount Window Interagency Guidance Issued

  The FRB, FDIC, OCC, OTS and NCUA have issued guidance on the appropriate use of the Federal Reserve's new primary credit discount window program in depository institutions' liquidity risk management and contingency planning. The guidance provides background on the discount window programs, including the new primary and secondary credit programs introduced in January, 2003.FRB    FDIC    FDIC FIL-59-2003    OCC    OTS   NCUA    Interagency Guidance 7/24/03

• New Electronic Issue of Interpretations and Actions Available

  The OCC has placed online the July 2003 issue of Interpretations and Actions containing interpretative letters, corporate decisions, approvals, enforcement actions, and CRA performance evaluations.OCC Electronic Interpretations and Actions 7/24/03

• Federal Thrifts Can Ignore New Jersey Law

  The OTS has determined that the recently enacted New Jersey Home Ownership Security Act is pre-empted by the federal Home Owners' Loan Act and OTS regulations. As a result, the state law does not apply to federal savings associations and their operating subsidiaries.OTS 03-22 7/24/03

• Inflation Rate - Can It Drop Too Low

  In a presentation before the Economics Roundtable of the University of California, FRB Governor Bernanke discussed the views of the Federal Open Market Committee regarding the current rate of inflation. He noted that earlier this year the Committee for the first time indicated it was concerned that inflation might actually fall too low. He indicated that should the funds rate approach zero, the Committee is prepared to implement nontraditional monetary policy measures.Presentation 7/24/03

• Comment Deadline Approaches

  The deadline for submitting a comment letter to Treasury regarding the proposal to require financial institutions to retain photocopies of the documents used to verify a customer's identity is July 31, 2003. Don't miss this opportunity to express your opinion on this important issue. For more information review this previously issued BOL Special Banker Briefing. 7/23/03

• Risk Based Component Added to OCC Handbook

  The "Community Bank Supervision", a booklet in the OCC's Handbook series, has been revised to include risk-based consumer compliance and asset management information. The additions provide managers with more flexibility in determining the scope and timing of supervisory activities in addition to stressing the importance of evaluating and validating the audit and internal control functions.Community Bank Supervision Appendixes 7/23/03

• FDIC Enforcement Actions Released

  Information regarding enforcement actions taken against fourteen banks and one individual in June, 2003 has been released by the FDIC. The actions included three cease and desist orders, two civil money penalties and four terminations of insurance. The largest civil money penalty assessed was $16,400.FDIC Enforcement Actions 7/23/03

• 2003 Income Data Added to CRA/HMDA Software

  The FFIEC has announced CRA/HMDA date entry software containing 2003 income data is now available for download. FFIEC CRA/HMDA Software 7/23/03

• Special Alerts Regarding Counterfeit and Stolen Checks

  The FDIC has issued two Special Alerts regarding five official checks stolen from the RBC Centura Bank, Rocky Mount, North Carolina; counterfeit official checks drawn on the Winchester Branch of Farmers State Bank, Pittsfield, Illinois; and counterfeit cashier's checks drawn on the San Francisco Branch of Northern Trust Bank, National Association, Phoenix, Arizona; and EverTrust Bank, Everett, Washington. Information regarding the counterfeit and stolen items has been placed on the BOL Alerts & Counterfeits page. 7/23/03

• International Reserve Position Declines

  The Treasury Department has released U.S. reserve assets data for the weeks ending July 4, 11, and 18, 2003. The U.S. reserve assets totaled $80,950 million as of the week of July 18, 2003, compared to $81,438 million as of the end of the prior week.International Reserve Position 7-47-11 7-18 7/23/03

• FRB Publishes July Working Papers

  The FRB has published the July edition of the working papers in the Finance and Economic Discussion Series. Topics include: Tunnels and Reserves in Monetary Policy Implementation; Declining Required Reserves, Funds Rate Volatility, and Open Market Operations; Inventory Dynamics and Business Cycles: What Has Changed?; and What Did the Credit Market Expect of Argentina Default? Evidence from Default Swap Data.
  Tunnels and Reserves   Declining Required Reserves    Inventory Dynamics    What Did the Credit    7/23/03

• Seven Banks Receive Outstanding CRA Rating

  The OCC has released the CRA performance evaluations for eighty national banks. Seven of the banks were rated outstanding and seventy-three received a satisfactory rating. OCC CRA 7/22/03

• Finance Companies Owned and Managed Receivables

  The FRB has issued the G.20 owned and managed receivables report for May 2003. FRB G.20 7/22/03

• OFAC Issues Civil Penalties Against Two Banks

  The weekly release by OFAC of Civil Penalties Enforcement Information included two banks; one cited for violation of the OFAC Sanction Program regarding Cuba and the other for violations of both the Iran and the Kosovo Programs. The civil penalties ranged from $250 to $9,725.OFAC Civil Penalties 7/21/03

• Median Interest Rate Sensitivity Stable

  The OTS has released the first quarter 2003 issue of The Quarterly Review of Interest Rate Risk. The median thrift sensitivity improved slightly to 91 basis points from 93 basis points in December while the yield curve steepened.Interest Rate Risk Review 7/21/03

• SAR Filing Tips

  FinCEN has added a new Q & A to the Regulatory FAQs which lists resources available to aid SAR filers. The information includes instructions for filing the various SAR forms and guideance on when to file a SAR.Q & A 7/18/03

• Investment Schemes Use Altered Federal Reserve Notes

  The Federal Reserve has issued a Supervisory Letter regarding bogus investment schemes that utilize altered Federal Reserve Notes. The altered notes are in face amounts of $50 million or some other astronomically large amount, but some investors are still taken in. You will want to alert your investment officers and your customers about these schemes.FR SR 03-14 7/18/03

• OCC States Accounting Views

  The OCC has released the June 2003 edition of its Bank Accounting Advisory Series which conveys the OCC's views on various accounting topics. Advisory Series 7/18/03

• OTS Issues Interest Rate Projections

  OTS has issued its second quarter 2003 interest rate projections for capital plans.OTS 7/18/03

• Eight Enforcement Actions Announced by OCC

  The OCC has announced eight enforcement actions involving six national banks and two individuals. The actions include cease and desist orders, a civil money penalty, formal agreements and removal actions.OCC Enforcement Actions 7/17/03

• HOEPA APR Reference Rates for August Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in August 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 7/17/03

• USA PATRIOT Act Implementation Reviewed

  The actions of Treasury to implement provisions of the USA PATRIOT Act were detailed in a presentation by Deputy Assistant Dawson to the Bankers' Association for Finance and Trade. He noted that efforts have been taken to minimize the compliance burden on financial institutions regarding Section 314 information requests. The majority of the requests submitted have been related to the investigation of terrorist financing cases. He also remarked that the joint rule issued by bank regulators regarding Section 326 was one of the largest, most complicated joint rules ever issued. Remarks 7/17/03

• Industrial Output Declines in Second Quarter

  The G.17 Second Quarter 2003 Industrial Production and Capacity Utilization report has been released by the Federal Reserve. Despite the recent gains, industrial output decreased at an annual rate of 3.2 percent in the second quarter. G.17 Report 7/17/03

• SEC Publishes Proxy Process Review

  The SEC has published a report of an internal review of its rules and regulations regarding the nomination and election of directors. The report notes the need to improve the existing proxy process and recommends action in two areas: improved disclosure and improved shareholder access to the director nomination process. A summary of public comments received on the subject, including those received from the American Bankers Association, was also released.SEC ReportSummary of Comments 7/16/03

• FOMC to be Accommodative According to Greenspan

  Chairman Greenspan presented the Federal Reserve's semiannual Monetary Policy Report to Congress. He noted the Federal Open Market Committee is prepared to maintain a highly accommodative policy stance as long as necessary to promote economic performance. Improvements in measures of default risk, a decline in actual defaults, and a moderation in the pace of debt-rating downgrades have prompted a marked narrowing of credit spreads and credit default swap premiums. As a result, banks remain well-capitalized and willing lenders. TestimonyMonetary Policy Report PDF ASCII 7/16/03

• State Profiles Published by FDIC

  The FDIC has published the Summer 2003 quarterly analysis of state economic and banking trends and aggregate financial data covering insured institutions in all 50 states, Puerto Rico and the U.S. Virgin Islands.State Profiles 7/16/03

• International Finance Discussion Papers Released

  The FRB has released three International Finance Discussion Papers. Titles include: Loans to Japanese Borrowers, What Happens After A Technology Shock?, and IT Investment and Hicks' Composite-Good Theorem: The U.S. Experience.Loans; Asbtract    Full Report    What Happens; Abstract    Full Report    Hick's Composite Abstract    Full Report 7/16/03

• Cost of Funds Reports Issued

  OTS has issued the July 15, 2003 and the historical national average cost of funds ratio to OTS regulated, SAIF - insured institutions reports.July reportHistorical report 7/16/03

• Financial Holding Company Election Released

  The FRB has released the July list of those bank holding companies that have elected to become or be treated as financial holding companies for Banking Holding Company purposes. FRB Release 7/15/03

• Societe Generale Assessed $11,000 by OFAC

  The New York City office of Societe Generale was the only financial institution listed by OFAC on its weekly release of Civil Penalties Enforcement Information. A funds transfer in 2001, which violated the Libya Sanction Program, resulted in an $11,000 assessment.OFAC Enforcement Information 7/14/03

• Regulators Seek Comments on Basel Accord and Guidance

  The FRB, OCC, OTS and FDIC have issued an interagency advance notice of proposed rulemaking seeking public comment on the implementation of the New Basel Capital Accord in the United States. Comments are also sought on two drafts of interagency supervisory guidance regarding internal-ratings based systems for corporate credits and approaches for measuring operational risk. FRB PR    FRB Memorandum    OCC NR    OCC Notice    OCC Corporate IRB Guidance    OCC Operational Risk Guidance 7/14/03

• OTS To Hold Financial Management Seminars

  The OTS will host five financial management seminars during the months of July and August in San Francisco, Dallas, Atlanta, Newark, and Chicago. The program will be of interest to auditors and financial managers with responsibility for accounting or financial reporting, risk management and internal rate risk analysis. Agenda Online Registration 7/11/03

• FDIC Issues Letter to Stakeholders

  The FDIC has issued its fifth letter to stakeholders which lists priorities and activities for the second quarter of 2003.FDIC FIL-58-2003 Letter 7/11/03

• Korean Version of Money Smart Program Available

  The FDIC has released a Korean language version of the Money Smart adult financial education curriculum. FDIC PR 7/11/03

• Credit Unions Seek Latino Customers

  Participants in a NCUA workshop were urged to market their services to the Latino community. The acceptance of Matricula Consular and other foreign government cards as valid IDs and the providing of extra seating and activities for children were among the ideas shared at the workshop. NCUA NR 7/11/03

• Submit Your 2003 Summary of Deposits Report Online

  A new electronic filing option is now available for FDIC-insured institutions that submit paper SOD surveys. A link to the online filing form has been posted on the FDIC website. You must use your User ID and PIN listed on the paper SOD form you received from the FDIC. File SOD Online 7/10/03

• Treasury Proposes FCRA Amendments

  Treasury Secretary Snow has proposed that the Fair Credit Reporting Act be amended to direct the FTC and bank regulators to make it easier for consumers to say no to unsolicited credit offers. In testimony regarding the renewal of FCRA before the House Committee on Financial Services, he also presented examples of ways FCRA helps fight identity theft. Testimony 7/10/03

• Retention of ID Photocopies Subject of OTS Transmittal

  The OTS has issued Transmittal TR-320 concerning the request by Treasury for comments regarding the retention of photocopies of identification documents utilized by institutions to verify identity pursuant to Section 326 of the USA PATRIOT Act. The comment notice was published in the Federal Register and previously reported in Top Stories on July 1, 2003. Notice 7/10/03

• Special Alert Regarding Counterfeit Checks

  The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on the Long Beach, California, branch of California Bank & Trust, San Diego, California. Information regarding the counterfeit items has been placed on the BOL Alerts & Counterfeits page. 7/10/03

• FTC Complaint Names Electronic Payment Processor

  The FTC has filed a complaint in the U.S. District Court for the Western District of Texas charging Electronic Financial Group, Inc. (EFG) and its principals with providing assistance to fraudulent telemarketers seeking to drain funds from consumers' checking accounts. The defendants are charged with violating the law by processing ACH transactions for numerous fraudulent telemarketers and by engaging in the deceptive marketing of their own advance-fee debit cards.FTC Release 7/10/03

• International Reserves Decline Slightly

  Treasury Department has released the U.S. reserve assets data for week ending July 4, 2003. U.S. reserve assets totaled $81,112 million, compared to $81,453 million as of the end of the prior week.International Reserve Position 7/10/03

• Operation Cornerstone for Financial Investigations

  Department of Homeland Security Director Tom Ridge made several announcements of interest to the banking industry. DHS is launching Operation Cornerstone, a new financial investigations program that will identify vulnerabilities in financial systems through which criminals launder their illicit proceeds, bring criminals to justice and work to eliminate the vulnerabilities. The Bureau of Immigration and Customs Enforcement will run it and will share information learned from these investigations with bankers to eliminate industry-wide security gaps that could be exploited by money launderers and other criminal organizations. Plus, the Secret Service is expanding Electronic Crimes Task Forces to Cleveland, Houston, Dallas and Columbia, South Carolina. DHS Press Release Press Kit Details 7/9/03

• 2004 CRA File Formats and Edits Published

  The FFIEC has issued the file formats to be used when sending 2004 Community Reinvestment Act data to your regulator via diskette, CD-ROM, e-mail or cartridge tape. The CRA edits are modified each year to include new data fields and enhance data quality.File Formats Edits 7/9/03

• Two More to Look Out For

  Be on the watch for counterfeit cashier's checks drawn on Wilson State Bank, Wilson, Texas, and counterfeit official checks drawn on International Bank of Commerce, Laredo, Texas. Information regarding these counterfeit items and more are found on our Alerts & Counterfeits page. 7/9/03

• May Consumer Credit Report Shows Moderate Gains

  The FRB has released the G.19 Consumer Credit Report for May 2003. In May, both revolving and non-revolving credit posted moderate gains. Consumer credit rose at an annual rate of 5 percent in May, following a 5-1/2 percent increase in April.FRB G.19 May 2003 7/9/03

• Contact OFAC Online

  You can avoid talking to voice mail by sending your questions to OFAC electronically. Just complete the online form on the OFAC website to submit questions or comments regarding "in process" wire-transfers. As soon as possible, you will be contacted concerning your request. Note, inquiries regarding other subjects must still be submitted by phone or mail. Information regarding this new service is posted on our OFAC page. 7/8/03

• HMDA HELP Page Announced

  The St. Louis FRB has created a new HMDA page which is a fabulous resource for information about the recent HMDA changes that will take effect January 1, 2004. The new page features information which supplements the existing HMDA data available on the FFIEC site. The new page has a Frequency Asked Questions section along with LAR forms, FFIEC software and practical compliance tips. We added the link to this new resource under the HMDA category on the BOL Launch Pad. Just click on HMDA Help Page. 7/8/03

• New SDNs Added By OFAC

  Three new individuals have been added by OFAC as SDNs. They have also been included on the listing of BALKANS entries. Information regarding the new listings has been placed on the BOL OFAC page. 7/8/03

• NCUA Share Insurance Estimator Now Online

  Credit Union members can now estimate the amount of insurance protection provided by the National Credit Union Share Insurance Fund by using the Estimator is found on NCUA's website.NCUA PR Insurance Estimator 7/8/03

• Community Reinvestment Act Ratings Released

  The FDIC has issued the July 2003 list of state nonmember banks evaluated for compliance with the Community Reinvestment Act and the evaluation ratings for the respective institutions.FDIC CRA List 7/7/03

• Instructions for Reporting Trust Preferred Securities

  The FRB has issued a Supervisory Letter that provides instructions on how trust preferred securities are to be reported on bank holding companies' financial statements. The Federal Reserve has become aware that Financial Accounting Standards Board Interpretation No. 46 (FIN 46) may have implications for how trust preferred securities are reported. Until changes are made to form FR Y-9C, the current instructions regarding the reporting of trust preferred securities on Schedule HC-R should continue to be followed.Supervisory Letter 03-13 7/7/03

• FDIC Issues New SAR Form Reminder

  The FDIC has issued FIL-56-2003 regarding the July 1 utilization date of the new SAR form. The release of the new form by FinCEN on May 2, 2003 and a BOL reminder notice on June 24, 2003 were previously posted on BOL Top Stories.7/7/03

• Counterfeit Checks Alert

  Instruct your tellers to watch out for cashier's checks drawn on the Los Angeles branch of OneUnited Bank, Boston, Massachusetts and cashier's checks drawn on 1st National Bank & Trust, Bradenton, Florida. They may be counterfeit. Information regarding the items has been placed on the BOL Alerts & Counterfeits page. 7/7/03

• Special Alert - Unauthorized Institutions

  The FDIC has issued a Special Alert regarding three institutions that may be operating unauthorized banking operations in the United States and Canada. The entities are Golden Trust Bank, Oshawa, Ontario; National Bank, Etobicoke, Ontario; and Banquedenationale Bank, Hong Kong. Any information about these entities should be forwarded to the FDIC's Special Activities Section or forwarded electronically to alert@fdic.gov.FDIC SA-36-2003 7/7/03

• March 2003 UMPR Available Online

  The FFIEC has placed the March 31, 2003 Uniform Bank Performance Report (UBPR) online.FFIEC PR 7/7/03

• Treasury to Issue Depositary Compensation Securities

  The Treasury Department has announced that it will in mid-July begin issuing non-marketable securities, called Depositary Compensation Securities, to compensate those financial institutions who serve as financial agents of the United States for essential banking services, including the collection and deposit of all Treasury receipts.Treasury PR 7/7/03

• NCUA Begins Review of Regulatory Burdens

  The NCUA Board has published a notice in the Federal Register of the beginning of a review of its regulations to reduce burdens imposed on federally-insured credit unions. The notice is the first in a series and regards "Applications and Reporting" and "Powers and Activities".68FR39863 (txt) 68FR39863 (pdf) 7/7/03

• Proposal to Clarify NCUA Loan Participation Rule

  NCUA has published in the Federal Resister a notice of a proposal to update and clarify the definitions of the terms, "credit union organization'" and `"financial organization", as used in NCUA's loan participation rule. 68FR39866 (txt) 68FR39866 (pdf) 7/7/03

• Deceptive Claims of FDIC Insurance Coverage

  The FDIC has issued a Special Alert concerning two entities that are falsely representing on their Web sites to potential customers that the entities are members of the FDIC. The two entities are Citi Trust Bank, Grand Cayman, Cayman Islands, and Banquedenationale Bank, Hong Kong, a Special Administrative Region of China.FDIC Special Alert SA-37-2003 7/7/03

• Share Insurance Rule Amendment Proposed by NCUA

  The notice of a proposal to amend its share insurance rules has been published in the Federal Register by NCUA. The amendments simplify and clarify the rules regarding how revocable trust accounts are established and insured; provide continuation of coverage following the death of a member; provide separate coverage after the merger of insured credit unions for limited periods of time; and clarify that there is coverage for Coverdell Education Savings Accounts, formerly Education IRAs.68FR39868 (txt) 68FR39868 (pdf)7/7/03

• Census and HUD Data Used for CRA Released

  The OCC has issued a bulletin regarding the release of the 2000 U.S. Census and the 2003 HUD estimated median family incomes for MSA and non-MSA portions of each state. The annual HUD data are used to determine borrower income levels in Community Reinvestment Act (CRA) performance evaluations.OCC Bulletin Census and HUD Median Family Income Data 7/3/03

• Payday Lending Examination Guidance Issued

  The FDIC has issued a guidance regarding the examination of the payday lending activities of FDIC supervised institutions. Special examination procedures will be utilized to verify and monitor an institution's performance. The guidance also instructs examiners to include in Community Reinvestment Act public evaluations an expansive discussion of the payday lending practices and strategies of the institutions. Guidelines for Payday Lending 7/3/03

• FinCEN Withdrawals AML Advisory

  FinCEN has announced the withdrawal of Advisory 27 regarding St. Vincent and the Grenadines. Due the adoption of new anti-money laundering laws, FinCEN has determined that the enhanced scrutiny of transactions involving St. Vincent and the Grenadines is no longer necessary. The withdrawal of the Advisory does not relieve institutions of their pre-existing and on-going obligation to report suspicious activity.FinCEN Withdrawal 7/3/03

• FRB Issues Final Rule to Amend Reg Y

  The amendment would permit bank holding companies to (i) take and make delivery of title to commodities underlying commodity derivative contracts on an instantaneous, pass-through basis; and (ii) enter into certain commodity derivative contracts that do not require cash settlement or specifically provide for assignment, termination, or offset prior to delivery. 68FR39807 (txt) 68FR39807 (pdf) 7/3/03

• 2004 HMDA File Formats and Edits Released

  The FFIEC has posted the final 2004 HMDA File Formats and Edits online. The File Formats describe the required electronic format in which all institutions must submit their data. The Edits provide an explanation of errors that can result from the submission of invalid data.File Formats Edits 7/3/03

• OCC Capital and Dividends Manual Revised

  The OCC has updated and placed online its Capital and Dividends booklet, which is part of the Comptroller's Licensing Manual series. The revision, which replaces the 1998 version, incorporates recent policy and procedure changes regarding blank check preferred stock, innovative and hybrid capital instruments, and issuance of no par stock.OCC Capital and Dividends Manual 7/3/03

• Comments Sought on Insurance of Living Trust Accounts

  The FDIC has issued a FIL which requests public comments on two proposed alternative rules to clarify and simplify the regulations on the insurance coverage of living trust accounts. The first alternative is to provide coverage up to $100,000 per qualifying beneficiary named in the living trust, regardless of contingencies in the trust. The second alternative is to create a separate category of coverage for living trust accounts and to insure such accounts up to $100,000 per owner of the account. Comments on the proposals are due by August 29, 2003. The proposals were published in the Federal Register on June 30, 2003 and previously reported in BOL Top Stories.FDIC FIL-54-2003   Notice HTML    PDF 7/3/03

• Homeownership Counseling Examination Procedures

  The OCC has issued a bulletin announcing the FFIEC Homeownership Counseling Examination Procedures. The examination objectives and procedures are described along with an examination checklist. The procedures are effective immediately. OCC Bulletin 2003-29 Exam Procedures 7/2/03

• Spanish Version ARM and Home Equity Brochures

  The FRB has published Spanish language versions of two of its most popular consumer brochures. The Consumer Handbook on Adjustable Rate Mortgages and What You Should Know About Home Equity Lines of Credit are available in both print and electronic form.Spanish ARM Spanish Home Equity 7/2/03

• FRB Web Site Gets New Look

  The FRB is in the process of reorganizing the categories on its Web site with the goal of making it more informative and easier to use. It even provides a "What's Changed " page to walk you through the new sections.FRB Home Page FRB "What's Changed" 7/2/03

• Enhanced Cash Ordering Options Now Online

  Take advantage of a new facility from Federal Reserve Financial Services that lets you submit batch transaction files via FedLine for the Web. It offers an efficient alternative to entering individual orders and a convenient way to generate the transaction file. Contact your local FRB Cash Representative for instructions. FRB Services FRB Cash Representative List 7/2/03

• International Reserve Position Declines

  The Treasury Department has released U.S. reserve assets data for the week ending June 27, 2003. U.S. reserve assets totaled $81,453 million as of the end of the week, compared to $82,350 million as of the end of the prior week.Treasury Release 7/2/03

• Agricultural Finance Databook Released

  The FRB has released the E.15 Agricultural Finance Databook for March and June 2003. The databook contains the 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.FRB E.15 7/2/03

• June Foreign Exchange Rates Released

  The G.5 June 2003 foreign exchange rates report has been released by the FRB.It shows the monthly average rates of exchange based on daily noon buying rates for cable transfers in New York City. FRB G.5 7/2/03

• BancorpSouth Joins Money Smart

  The FDIC announced that BancorpSouth has joined the Money Smart Alliance Program. As a partner in the program, BancorpSouth will reach low- and moderate-income individuals in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas. It will provide staff for training, classroom space and grants to community-based partners who teach the Money Smart curriculum to local citizens.FDIC Money Smart 7/2/03

• Treasury Seeks Comments on Retaining Copies of CIP ID

  Here is your opportunity to submit comments regarding the Section 326 final rule. They would like to know: 1.) Whether and under what circumstances financial institutions should be required to retain photocopies of identification documents relied on to verify customer identity; and, whether there are situations when the regulations should preclude reliance on certain forms of foreign government-issued identification to verify customer identity. 68FR39039 (txt) 68FR39039 (pdf) 7/1/03

• FCRA Improvements Include Identity Theft Alert System

  Secretary Snow has endorsed the proposed renewal and improvement of the Fair Credit Reporting Act by Congress. A national security alert system would be created to notify banks and merchants of consumers who have been victimized or are in danger of being victimized by identity theft. He also noted the national uniform standards of the Act serve consumer interests by expanding the opportunity for every consumer to access credit and financial services in addition to helping to ensure that the consumer's personal information is more accurate and secure. Speech 7/1/03

• OFAC Amends Final Rule to Reflect OFAC List Changes

  OFAC has issued an amended Final Rule which reflects the addition or removal of the names of individuals and entities on the OFAC List. The Final Rule, which is amended periodically, reflects the complete alphabetical listing of Blocked Persons, SDNs, SDTs, SDGTs, FTOs and SDNTs, as of June 9, 2003.Amended Final Rule 7/1/03

• Final Rule Issued on Title Transfer Pass-Through of Commodities

  The FRB announced approval of a final rule modifying Regulation Y. Bank holding companies engaged in permissible derivatives activities will be allowed to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis. The effective date of the final rule is August 4, 2003 Final Rule 7/1/03

• Iraqi License Subject of Interim Final Rule

  OFAC has published an interim final rule amending the Iraqi Sanctions Regulations, along with a Request for Comments. The amendment reflects the general license issued by OFAC on May 23, 2003 which effectively removed, with four exceptions, the economic sanctions regarding Iraq. The effective date of the interim rule is May 23, 2003. The comment period will close on August 26, 2003. Information regarding the interim final rule and the general license is posted on the BOL OFAC page. 6/30/03

• June OCC Actions Online

  The actions taken by the OCC in June regarding interpretative letters, application approvals, enforcement actions and CRA evaluations have been posted online.June OCC Actions 6/30/03

• April G.20 Owned and Managed Receivables Report

  The FRB has released the G.20 financial companies owned and managed receivables report for April 2003. April G.20 6/30/03

• Proposed Rule from FDIC on Living Trust Accounts

  FDIC is proposing to clarify and simplify the regulations on the deposit insurance coverage of living trust accounts. 68FR38645 (txt) 68FR38645 (pdf) 6/30/03

• OCC Bulletin - Securities Disclosures

  The OCC has issued Bulletin 2003-28 regarding proposed changes to the securities offering disclosure rules for national banks. The notice was previously announced in BOL Top Stories on May 22, 2003. 6/27/03

• July 1 Effective Date for California Mandatory Disclosure of Computer Intrusions Law

  Beginning July 1, any person or business that conducts business in California and owns or licenses computerized data is required to disclose to all customers who are California residents any breach of the security of their unencrypted personal information.The disclosure to customers must be made "as soon as possible" after the discovery of a breach of information security. A delay in disclosure is allowed only if a law enforcement agency determines the disclosure would hinder a criminal investigation. Any customer who was injured by the failure to disclose can file a civil suit to recover damages. The legislation, which is the first of its kind, may become a model that will be adopted by other states. BOL previously posted an article regarding the subject, Computer Intrusion Disclosures Mandated by New Law, from BOL Guru, Sam Ott. Click here to read it. 6/27/03

• Using Clean Money For Lethal Purposes

  Learn how terrorists use the international banking system and apparently innocent accounts to finance their activities. Read the testimony of Treasury General Counsel Aufhauser before the Senate Subcommittee on Terrorism, Technology and Homeland Security.Testimony 6/27/03

• Debt Ceiling May Adversely Impact Capital Markets

  The debt ceiling and its effect on the standing of the US in the capital markets was discussed in a presentation to the Bond Market Association by Treasury Assistant Secretary Roseboro.Speech 6/27/03

• Immediate Reduction in Discount Rates Approved

  The FRB has approved actions by the Boards of Directors of the Federal Reserve Banks of Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Minneapolis, and Dallas to decrease the discount rate at the banks from 2-1/4 percent to 2 percent, effective immediately.FRB NR 6/27/03

• Minority-Owned Banks Quarterly Report

  The FRB has released the first quarter report regarding the banks that participate in Treasury's Minority Bank Deposit Program.Minority-Owned Banks Report PDF txt 6/27/03

• Coping With the Low Interest Rate Environment

  The challenges facing management and the long range consequences of the decisions being made in today's interest environment were examined by FRB Governor Olson at an Economic Growth Outreach meeting.Speech 6/27/03

• OTS Issues First Quarter Interest Exposure and CMR Reports

  The OTS has released the Interest Rate Exposure and CMR reports for the first quarter 2003. Click here and scroll down to the Data & Research section of the page to download the various reports. 6/27/03

• Country Exposure Data Online

  The FFIEC has posted the March 31, 2003 Country Exposure Statistical Release and the Country Exposure Information Report on its Web page.Statistical Release   Information Report 6/27/03

• SAR Software Available Online

  FinCEN has made the SAR Software Version 5.0 for Windows available for download online. You will not be able to enter information into the program unless you have applied for a unique Transmittal Code Number from the Detroit Computing Center. Instructions on how to obtain a code number are also online. FinCEN SAR Software 6/26/03

• CRA Evaluations Released For 16 National Banks

  The OCC has released the CRA evaluations for sixteen national banks. Three of the banks were rated outstanding and thirteen were satisfactory. None received either a needs to improve or substantial noncompliance rating. OCC NR 2003-52    CRA Evaluations 6/26/03

• FFIEC Reporting Forms and UBPR Guide Updated

  FFIEC has updated the June 30 Reporting Forms 009 and 009a along with the UBPR User's Guide. Form 009    Form 009a     UBPR User's Guide  6/26/03

• FRB Publishes Correction to Routing Symbols

  The FRB published a final rule in the Federal Register of May 28, 2003, that amended the Federal Reserve Bank and Federal Home Loan Bank routing information listed in appendix A of Regulation CC. The FRB omitted from this supplementary information two routing symbols that will be transferred from the Richmond head office to the Baltimore branch. The corrected list is printed in the federal register. 68FR37957 (txt) 68FR37957 (pdf)  6/26/03

• 1% and 2% - You've Got to Be Kidding!

  Can you imagine what a banker in the '70s would have said if anyone had predicted that within 30 years the Fed Funds rate would be at 1% and the discount rate at 2%? Read about the considerations that helped the Federal Open Market Committee and the Board of Governors decide to lower the rates. FRB PR 6/26/03

• Four Entities Named in Unauthorized Banking Alert

  The FDIC has issued an alert regarding the possibility that the following four entities may be conducting unauthorized banking activities in the U.S. and Canada: Apex Financial Group, Toronto, Ontario; Bonded Trust, Mississauga, Ontario; North American Standard Trust, Concord, Ontario; and Universal Trust Financial, Toronto, Ontario. Any information about these entities should be forwarded to the FDIC's Special Activities Section, 550 17th Street, NW, Room F-4040, Washington, DC 20429, or forwarded electronically to alert@fdic.gov. FDIC SA-34-2003 6/26/03

• Banking Holding Company Elections Announced

  The FRB has released the June 20 report regarding bank holding companies that have elected to be treated as a financial holding company under the provisions of the Bank holding Company Act. FRB Financial Holding Company List 6/26/03

• E.2 Survey Modified

  The FRB E.2 Survey of Terms of Business Lending has been changed to reflect the addition of a new item and the elimination of some previously reported items. Surveyed banks now report the date on which pricing and other terms of loans made under formal commitments became effective. A table has been added to present pricing and other summary statistics separately for loans having terms set during the survey week and loans having pricing terms set prior to the survey week. FRB E.2 6/26/03

• "Deck of Cards" Added to SDN List

  OFAC has integrated into the OFAC SDN list the persons named on the Defense Department's 55 Person Watch List, better know as the Iraqi "deck of cards". As a result, some entries have been removed, some entries have been amended, and new IRAQ entries have been added. Learn about the changes on the BOL OFAC page. 6/25/03

• Flood Act Violations Result in CMPs for Ohio and Colorado Banks

  The FRB has announced the issuance of civil money penalties against the Community First Bank & Trust, Celina, Ohio, and the Centennial Bank of the West, Fort Collins, Colorado, for alleged violations of the National Flood Insurance Act.Community First Order   Centennial Bank Order    Flood Dodging the BIG Wave Webinar Presented by BOL Learning Connect   6/25/03

• OCC Issues New SAR Form Reminder

  The OCC has issued Bulletin 2003-27 regarding the July 1 utilization date of the new SAR form. The release of the new form by FinCEN on May 2, 2003 and a BOL reminder notice on June 24, 2003 were previously posted on BOL Top Stories. 6/25/03

• Thirteen Enforcement Orders Announced

  The FDIC has released information regarding 13 enforcement orders that were issued in May. They include one cease-and-desist order, five removal-and-prohibition orders, five civil money penalty orders, one voluntary termination of insurance order, and one termination of insurance order.FDIC Enforcement Orders 6/25/03

• 2003 CRA/HMDA Census Report and Geocoding Data Online

  The FFIEC has posted the 2003 Census Report and Geocoding data plus downloadable CRA/HMDA data entry software online. FFIEC Census Reports   FFIEC Geocoding   Software Download   6/25/03

• HMDA Training for Lenders Announced

  The Federal Reserve System has released the schedule and locations of four training sessions to help lenders understand and implement the changes to Regulation C.Training Schedule HMDA - The Real Deal - What Bankers Want to Know, Part 1,   Part II Webinar Presented by BOL Learning Connect   6/25/03

• July 1 Deadline for Service Provider Contract Provisions

  The Information Security Guidelines require that a financial institution have a contract with each of service providers who, in the course of providing services to the institution, has access to nonpublic personal information on customers. The written contractual provision must require the provider to implement and maintain appropriate measures designed to meet the objectives of the Information Security Guidelines.There was a grandfathering provision that applied to contracts entered into on or before March 5, 2001, but the grandfathering expires July 1. Stated another way: any contract you entered into with service providers before March 5, 2001 must be modified by July 1, 2003 to include contractual language that requires the provider to implement appropriate security measures to protect customer information.For purposes of the Information Security Guidelines, the term

  service provider means any person or entity that maintains, processes, or otherwise is permitted access to customer information through its provision of services directly to the financial institution.Guidelines Monitoring Service Provider Compliance   Need sample language for the contract provision? BOL Guru Karen Garrett contributed some a while back to Banker Tools. Click here to review it. 6/24/03

• New SAR Form Takes Effect July 1

  Get ready to use the new form for reporting Suspicious Activity as of next Tuesday. You can find it on our BOL Banker Forms page (but don't use it until July 1!). 6/24/03

• Commercial Loan Problems Analyzed

  The deterioration of key components of the commercial real estate market and its potential impact on loan portfolios is examined in the June23 edition of the FYI, an electronic FDIC bulletin which summarizes current information about the trends that are driving change in the banking industry.FDIC FYI    FDIC PR 6/24/03

• Reducing Regulatory Paperwork

  You have the opportunity until September 15 to express your views on reducing the amount of paperwork required by federal government regulations. The Regulators are asking for comments regarding the following three categories of regulations: Applications and Reporting, Powers and Activities, and International Operations.FDIC FIL 53-2003    Federal Register Notice HTML    PDF 6/24/03

• FDIC Compliance Examinations Revised

  The FDIC has announced that examiners conducting on-site compliance examinations beginning on or after June 30, 2003, will utilize a top-down, risk-focused approach which will include an in-depth evaluation of an institution's compliance management system. Read all about it in our new article, Can You Spell R-I-S-K?New FDIC Compliance Exam Procedures. 6/23/03

• June 031 and 041 Reporting Forms Instructions

  The instructions for preparation of the June consolidated reports of condition and income have been posted online by the FFIEC.Instructions 6/23/03

• Thrift Financial Report Instruction Manual

  The OTS Thrift Financial Report Instruction Manual is available online.Instruction Manual 6/23/03

• Thrift CRA Ratings Released

  The CRA ratings for savings associations examined in May 2003 had been released by OTS.May CRA Ratings 6/23/03

• Fictitious Internet Bank Alert

  The OCC has issued an unauthorized banking alert regarding a fictitious Internet bank operating under the name of Banquedenationale Bank, Inc. utilizing a web site which lists offices in New York City, London and Hong Kong. OCC Alert 6/23/03

• Results of Basel II Regional Meetings

  Representative of seventy-five banking organizations have met with the FRB, OCC, and FDIC in a series of regional meetings to discuss the U.S. implementation of the proposed Basel II Accord. Review the discussion documents and a summary of the comments of the attendees.FRB Basel II Meetings 6/23/03

• FRB June Working Papers and Bulletin Article Online

  The online June release of the FRB FEDS working papers contains following five topics: Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis; The Recall and New Job Search of Laid-off Workers: A Bivariate Proportional Hazard Model with Unobserved Heterogeneity; Regime-Shifts, Risk Premiums in the Term Structure, and the Business Cycle; Wealth Effects and the Consumption of Leisure: Retirement Decisions During the Stock Market Boom of the 1990s; and Estimates of the Term Premium on Near-dated Federal Funds Futures Contracts. In addition, an article from the June FRB Bulletin, Profits and Balance Sheet Developments at U.S. Commercial Banks in 2002 is also available. FRB June Working Papers    FRB June Bulletin 6/23/03

• Two Major Actions from FATF

  The Financial Action Task Force on Money Laundering, an independent International body of 31 member countries and governments (including the US), has revised its Forty Recommendations to combat money laundering. Some of the recommendations, as before, are aimed at governments, while others detail action that financial institutions should take. Among the major recommendations which are aimed at financial institutions are:

  • the expansion of the customer due diligence process for financial institutions;
  • enhanced measures for higher risk customers and transactions, including correspondentbanking and politically exposed persons;
  • the inclusion of key institutional measures, notably regarding international co-operation;
  • the improvement of transparency requirements through adequate and timely information onthe beneficial ownership of legal persons such as companies, or arrangements such as trusts;

  FATF is not a regulatory body per se and does not have direct enforcement authority. FATF studies money laundering issues, designates a list of countries which are deemed to not be cooperating to the extent believed desirable in terms of fighting money laundering (the NCCT list of Non-Cooperating Countries and Territories). Although FATF doesn't have direct regulatory jurisdiction, since the U.S. is a member of FATF and member nations basically pledge to follow the recommendations, we may see the new items reflected in future laws and regulations and it would be wise to become familiar with the recommendations to see what may be implemented by the U.S. and begin making desired adjustments to your AML program.Also, FATF removed St. Vincent and the Grenadines from its list of Non-Cooperative Countries and Territories. The countries remaining on the list are Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine. [Note: This is completely different from, and should not be confused with, the OFAC list of sanctioned countries.]FATF Press Release;   FATF's Forty Recommendations   06/20/03

• OCC Issues Bulletin Regarding Routing Numbers

  The OCC has issued Bulletin 2003-26 regarding an earlier announcement by the FRB of a Final Rule amending Appendix A to Regulation CC. The effective date of the Final Rule is July 28, 2003. National banks with questions are directed to contact their supervisory office, the Compliance Division, or the Community and Consumer Law Division of the OCC. The FRB Final Rule was previously featured as a BOL Top Story on May 28. 6/20/03

• Counterfeit Checks Alert

  Notify your tellers to watch out for cashier's checks issued by Central Florida State Bank, Belleview, Florida that are payable through Boston Safe Deposit & Trust Co., Boston, Massachusetts, and official checks drawn on Sun Federal Credit Union, Maumee, Ohio. They may be counterfeit. Information regarding the items has been placed on the BOL Alerts &Counterfeits page. 6/20/03

• ID Theft and Victim Assistance

  The FTC is the federal government's central repository for identity theft complaints and provides victim assistance and consumer education programs. Learn what resources are available to aid your customers who may be victims. Review the testimony of the Director of the FTC's Bureau of Consumer Protection before the senate Committee on Banking, Housing, and Urban Affairs. Testimony 6/20/03

• Basel I v. Basel II

  Learn the differences between Basel I and Basel II and the reasons the modifications included in Basel II are necessary from the testimony of FRB Vice Chairman Ferguson before the House Subcommittee on Financial Institutions and Consumer Credit. Testimony Table of Modifications 6/20/03

• OCC Enforcement Actions

  Twenty-five Enforcement Actions have been announced by the OCC involving banks and individuals in the states of Colorado, Georgia, Montana, Nebraska, Texas, California, Florida, Minnesota, Missouri, North Carolina and Pennsylvania.OCC NR 2003-49 6/19/03

• New Credit Card Scam Alert

  The IRS has issued an alert regarding a new credit card scam involving the payment of a tax credit. A taxpayer receives a telephone call from a person who promises to speed up the payment of the Advance Child Tax Credit checks. The catch is the taxpayer must agree to a $39.99 charge to a credit card. The credit card information is used to make unauthorized charges and possibly Identity Theft purposes.IRS NR 6/19/03

• Fighting Financial Fraud - Information For Customers

  The FDIC Consumer News has devoted its entire Spring 2003 newsletter to ways your customers can fight financial fraud involving checks, credit cards, ATMs, the Internet and other bank products and services. Common scams are discussed along with fraud fighting tips and ways to detect ID theft. A quiz to test a customer's knowledge of financial fraud is also included. Ways you can share this information with your customers include statement stuffers, newsletters and on your Web site. FDIC Consumer News 6/19/03

• Regulators Give Basel II Testimony

  Comptroller Hawke, FRB Vice Chairman Ferguson, and OTS Director Gilleran testified before the Senate Committee on Banking, Housing, and Urban Affairs regarding the final stages of public comment and review regarding the Basel II Accord.Hawke Testimony Ferguson Testimony Gilleran Testimony 6/19/03

• FRB Statistical Releases

  The FRB has issued statistical releases regarding the Household Debt-Service Burden and the Structure and Share Data for U.S. Offices of Foreign Banks.Household Debt-Service Burden Structure and Share Data 6/19/03

• FDIC 2003 Summer Outlook

  The FDIC has published the 2003 Summer Outlook which indicates that even though banks are experiencing record earnings, risk management challenges remain. Commercial real-estate portfolios are noted as one area that could develop future problems.FDIC PR FDIC 2003 Summer Outlook 6/19/03

• BugBear.B Update

  As reported earlier on BOL, the virus contains a list of domain names for over 1,300 banks, but if your institution's name is not on the list you could still be infected.The virus can disable your anti-virus software, install a keystroke logging spyware program, and collect email addresses in addition to capturing sensitive information and emailing it to an outside party.The OCC has issued an Alert 2003-09 that urges all national banks to follow the steps contained in the FFIEC Information Technology Handbook to prevent the spread of the virus. In the event a national bank thinks it is the victim of BugBear.B, it should immediately contact its OCC portfolio manager, report the problem to law enforcement and file a SAR. 6/18/03

• HOEPA APR Reference Rates for July Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in July 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 normally use the yield in effect on the 15th of the month that precedes the month you received the application. Since June 15 is not a business day, for July calculations you use the yield on June 13, which is the business day immediately preceding the 15th. FRB Daily Rates FRB Weekly Rates 6/18/03

• June Call Report FIL Issued

  The FDIC has issued a FIL containing the instructions and materials for preparation of the June 30, 2003, Call Reports which must be filed by July 30, 2003. In this Call Report, banks are required to report the number and amount currently outstanding of loans to small businesses and small farms (Schedule RC-C, part II) and the number of deposit accounts of $100,000 or less (Schedule RC-O, Memorandum item 1.a.(2)). No extensions will be granted. FIL-51-2003 Instructions 6/18/03

• EINs Available Online - No Waiting

  Tired of waiting for your business customers to be issued an EIN? The IRS now lets a business obtain an EIN directly from the IRS Web site. Upon the completion of an online application, a permanent EIN is issued which can be used immediately. IRS NR Online Application 6/18/03

• Terrorism Insurance Available to Commercial Customers

  The Terrorism Risk Insurance Act of 2002 requires that all insurance companies that offer commercial property and casualty insurance must also offer terror insurance as part of their property and casualty policies. Learn how this shared Federal and private coverage for commercial property and casualty losses resulting from acts of terror works from the comments of Treasury Deputy Assistant Secretary Zerzan at the Homeland Education Resource Organization Conference.Speech 6/18/03

• Economic Growth Spurt Predicted

  The economy will pick-up before year-end resulting in annualized growth rates near 3.5%. Read the comments of Treasury Secretary John Snow at Money Magazine's Money Summit to learn why he made this optimistic prediction.Speech 6/18/03

• $39 Million Contract Awarded to Modernize Bank Data Collection

  Bank regulators announced the award of a ten-year $39 million dollar contract to a development team headed by Unisys Corporation to create a financial data collection process that utilizes the Internet. The program, which will be phased in through 2004, will have a central data repository, which will be accessible by banking regulators, financial institutions, and the public. FRB PR Comments of FDIC Chairman Powell OCC NR 6/18/03

• FDIC G.17 Report released

  The FDIC has released the G.17 Industrial Production and Capacity Utilization report.FDIC G.17 6/18/03

• Financial Holding Company Election List

  The FRB has issued the June list of bank holding companies that have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act. Financial Holding Companies 6/18/03

• Restructuring the FDIC

  Over the last year, four FDIC divisions have been merged into two and executive positions have been reduced by 20%. The staff has been realigned and more authority delegated reducing the time it takes to make decisions. In addition, a new performance-oriented staff compensation program that rewards achievement has been implemented. Read about these changes and more from FDIC Chairman Powell's remarks before the Council for Excellence in Government. Speech 6/18/03

• FTC Improves Site?

  The FCT has redesigned its Web Site. We are sure that they intended for it to be improved, but we found it difficult to find some information. If you are looking for FCRA or FDCPA staff opinions for example, you must drill down through the new Formal Actions section. As quick alternative, use the BOL Launch Pad Fair Credit Reporting and Fair Debt Collection links.Fair Credit Reporting    Fair Debt Collection   FCT Web Site 6/18/03

• Counterfeit and Stolen Checks Special Alerts

  The FDIC has announced that counterfeit cashier's checks drawn on Bank of the Southwest, Roswell, New Mexico and counterfeit treasurer's checks drawn on Border Trust Company, South China, Maine are currently in circulation. In addition, five official checks have been stolen from Bay State Saving Bank, Worcester, Massachusetts and may be in circulation. The information has been added to the BOL Alerts & Counterfeits page.
  6/17/03

• Enforcement Order with Missouri Bank

  The FRB has announced the execution of a Written Agreement by and between Southern Commercial Bank, St. Louis, Missouri and the Federal Reserve Bank of St. Louis. Written Agreement
  6/17/03

• FFIEC Form Updated

  The FFIEC has placed an updated June 2003 FFIEC 002 reporting form online.FFIEC Form 002
  6/17/03

• Strengthening Weaknesses in Risk Management Practices

  Operational risk management may provide the answer to improving corporate governance in financial institutions according FRB Governor Bies. The breakdown of internal controls can lead to substantial losses. Learn what institutions can do mitigate operational risk to their corporate governance processes from her comments to Oregon and Idaho bankers.Speech
  6/17/03

• Internet False Advertising Special Alert

  The FDIC has issued a special alert regarding the unlawfully advertising of FDIC membership on a Web site by Trust Meridien Bank, also known as Meridien Trust Bank, Douglas, Isle of Man.FDIC SA-30-2003
  6/17/03

• FDIC Issues FIL Regarding Cuban Travel Services

  The FDIC has issued a FIL-50-2003 regarding the June 6, 2003 OFAC amendments to SDN list by adding several names as SDGTs. The information was previously reported on BOL and placed on our OFAC page.
  6/17/03

• OTS Cost of Funds Reports

  OTS has released current and historical reports regarding the national average cost of funds ratio to OTS regulated, SAIF - insured institutions.Current Report    Historical Report
  6/17/03

• USDA Joins Money Smart Alliance Program

  The FDIC has announced that the USDA's Rural Housing Service has joined the FDIC Money Smart Alliance Program.FDIC NR
  6/17/03

• Customer Peer Comparison Added to UBPR

  The FFIEC has added a custom peer comparison function to the UBPR portion of the FFIEC website. This new feature allows individual banks to be compared with the performance of a user-defined peer group of banks.FFIEC UBPR Custom Peer Memo
  6/17/03

• OFAC Penalties

  OFAC civil money penalties have been announced against two banks for violations regarding funds transfers to Kosovo and Iraq. The penalties range from $4,800 to $5,842. The violation which resulted in the smaller penalty was voluntarily disclosed. The banks involved were Bank United, Houston, Texas and Union Bank of California, San Francisco, California. OFAC Penalties Chart
  6/16/03

• FRB Enforcement Actions Announced

  The FRB has announced it has entered into a written agreement with The Marathon Bank, Winchester, Virginia and the issuance of a cease and desist order against Lori H. Staples, a former vice president of the bank. Written Agreement Cease and Desist Order
  6/16/03

• Small Businesses Fuel Economic Growth

  The entrepreneurial activity of small business owners provides new sources of employment opportunities and tax revenues. The ability to recognize and react to new ideas allows small businesses to thrive in neighborhoods overlooked by larger concerns. These points and others were raised by FRB Governor Gramlich in a presentation before a Milwaukee Community Development Corporation.FRB Speech
  6/16/03

• OCC Issues Bugbear.B Virus Alert

  The OCC has issued Alert 2003-09 regarding the threat the Bugbear.B virus poses to financial institutions. The serious nature of the Bugbear.B virus to financial institutions was previously explained in a BOL Special Tech Alert.
  6/16/03

• Protecting the Financial Community From Terrorist Attack

  The FDIC will hold a half-day symposium that will examine the security of the United States financial sector and outline steps that banks can take to protect themselves. The event will be held on July 31, 2003, in Dallas, Texas.Agenda Registration
  6/16/03

• FATF To Revise Anti-Money Laundering Recommendations

  FATF has announced plans to revise its Forty Recommendations against Money Laundering at its annual meeting to be held in Berlin on June 18-20, 2003. FATF NR
  6/16/03

• Scope of HMDA Reach Altered by MSA Changes

  The OMB has revised the MSA definitions. This results in 49 new MSAs. The changes will affect the HMDA 2004 reporting criteria for depository institutions. Institutions which meet the asset threshold who have offices in counties that are being added to MSAs will be covered by HMDA, while those in counties dropped from MSAs may no longer be covered. CRA assessment area delineations may also be affected. See what's happened in the areas where your offices are located. OMB Bulletin 03-04    MSA List    HMDA Criteria
  6/13/03

• FDIC Enforcement Actions Include $1.4 Million CMP

  The FDIC has announced enforcement actions against 18 former and current bank officers and directors from the states of Alabama, Minnesota, Washington, Iowa and Texas. CMPs ranging from $4,000 to $1.4 million were imposed.Alabama    Minnesota    Washington    Iowa   Texas
  6/13/03

• OCC Delays Compliance Date

  The OCC has issued notice of an indefinite delay in the compliance date for certain provisions of the final rule governing debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). OCC Bulletin 2003-25    Notice    68FR35283 (txt)    68FR35283 (pdf)
  6/13/03

• OTS Updates Thrift Activities Regulatory Handbook

  The section of the Thrift Activities Regulatory Handbook regarding enforcement actions has been updated by OTS.OTS Bulletin RE-32-28
  6/13/03

• Deposit Insurance Reform and FCRA

  Learn the views of FDIC Chairman Powell on these two important topics from his remarks to the Women on Housing and Finance. Read about how he believes an efficient credit reporting process has resulted in cheaper credit for borrowers in the U.S. Speech
  6/13/03

• Thrift Activities Handbook Updated

  OTS has issued a number of updates to the Thrift Activities Handbook.Opening Section    Table of Contents    Volume 1 Program    Volume 1 Section 300    Volume 1 Section 370    Volume 1, Appendix A 6/13/03

• Effective Corporate Governance Strengthens Compliance

  FRB Governor Bies indicated in a presentation to the participants at the ABA Regulatory Compliance Conference that compliance can be strengthened through effective corporate governance. She remarked that to be effective, compliance risk management must be coordinated at various levels within the organization. While the governance of a bank's risk-management program comes from the top down, a successful program will involve staff at all levels, and in more than one department. Speech
  6/12/03

• OCC Community Development Newsletter

  The OCC has published the 2003 spring edition of the Community Development Newsletter which focuses on banks and affordable housing in rural America. The online issue offers a road map for banks committed to playing a positive role in rural development and provides insights on CRA compliance, news-you-can-use from OCC's district offices plus useful Web links. Newsletter
  6/12/03

• OCC Issues Reg Z Bulletin

  The OCC has issued Bulletin 2003-24 regarding the FRB's adoption of revisions to the official staff commentary to Reg Z which was published in the Federal Register on April 3, 2003. The revision was previously reported in BOL Top Stories on April 3 as, "Reg Z Commentary Changes Published in Federal Register". OCC Bulletin 2003-24
  6/12/03

• FDIC Issues OFAC FIL

  The FDIC has issued an FIL regarding the designation of the Al-Aqsa Foundation as an SDGT, the termination by OFAC of the declaration of emergencies with respect to Yugoslavia, and the modification of entries for the Balkans and the Federal Republic of Yugoslavia. The OFAC change was previously reported on BOL and details placed on our OFAC page. FIL-14-2003
  6/12/03

• June 2003 FFIEC Reporting Forms

  The FFIEC has placed the June 2003 FFIEC Reporting Forms 002, 009 and 009a online.Form 002    Form 009    Form 009a
  6/12/03

• Using Quantitative Analysis in Community Development

  Learn how community developers utilize data analysis to increase economic opportunity and revitalize their neighborhoods from a presentation by FRB Governor Bernanke at the 2003 Community Development Policy Summit, sponsored by the Federal Reserve Bank of Cleveland. Speech
  6/12/03

• The Beige Book

  The FRB has released The Beige Book summary of current economic conditions compiled from data collected prior to June 2, 2003.The Beige Book Summary    Full Report
  6/12/03

• Implications of Behavioral Economics on Monetary Policy

  Learn the views of FRB Governor Kohn from his remarks at the Federal Reserve Bank of Boston's 48th Economic Conference. He noted that deviations from fully rational optimizing behavior induced by psychological factors have long been important in macroeconomic analysis and hence in monetary policy.Speech
  6/11/03

• Application of Basel II in U.S.

  FRB Vice Chairman Ferguson indicated in a presentation before the Institute of International Bankers that approximately 10 U.S. banks which are significant competitors in foreign markets will be required to adopt Basel II. Another ten banks are expected to do so voluntarily. The FRB does not intend to require other banking organizations in the U. S. to adopt Basel II.Speech
  6/11/03

• Risk Management - Regulatory Considerations

  The approach taken by the OCC was explained by Senior Deputy Comptroller Williams at the Risk USA 2003 Conference. She commented that the OCC takes a favorable view of banks' efforts to conduct banking activities in new ways to respond to changing financial needs of customers. Speech
  6/11/03

• BugBear.b Targets Banks Worldwide

  Financial institutions world-wide are at high risk due to the latest BugBear virus threat. Buried deep within the worms' code is a list of bank domain names that, if matched, will cause the program to keep the connection on the infected machine open and allow a keylogging program to potentially steal sensitive information. Find out if your institution is on the list in our BOL Special Tech Alert.
  (6/10/03)

• FRB Working Papers Released

  Four new working papers in the FRB Finance and Economic Discussion series have been released and are available online. The topics are: The Recall and New Job Search of Laid-off Workers; Regime-Shifts, Risk Premiums in the Term Structure, and the Business Cycle; Wealth Effects and the Consumption of Leisure; and Estimates of the Term Premium on Near-dated Federal Funds Futures Contracts. Recall Regime-Shifts Wealth Effects Estimates 6/10/03

• OFAC Changes

  OFAC has named new terrorists to the SDN list, added a redacted letter to the OFAC Interpretative Rulings area which relates to Iran, and changes have been made in certain listings of some primary entries. Four separate actions listed on the weekly OFAC Penalties Chart relate to financial institutions and the Cuban service providers list was updated. Get the details. 6/9/03

• OFAC Global Terrorism Interim Final Rule

  An interim final rule regarding terrorist sanctions has been issued by OFAC. The Global Terrorism Sanctions Regulations implement the provisions of a previously issued Executive Order which blocked all property and interests of designated individuals and entities and prohibited transactions with the same. The effective date of the interim rule is June 6, 2003 and written comments are requested by August 6, 2003.OFAC Interim Rule 6/9/03

• Retail Fees and Services Annual Report

  The FRB has published its annual report to Congress which contains the results of a survey concerning the relation of changes in retail banking services to increases in deposit insurance premiums. Annual Report 6/9/03

• G.19 Consumer Credit Report

  The G.19 Consumer Credit Report for April 2003 has been released by the FRB.G.19 6/9/03

• $61 Trillion in Derivatives

  U.S. commercial banks hold over $61 trillion in derivatives according to the First Quarter 2003 report from the OCC.OCC NR 2003-45 Derivatives Report 6/9/03

• 2004 HMDA Rate Spread Calculator

  The FFIEC has developed a Rate Spread Calculator to assist HMDA reporting institutions with the new Regulation C requirements for reporting Rate Spread data effective for 2004 HMDA data and made it available online.FFIEC Calculator 6/6/03

• FDIC CRA Examination Results

  The FDIC has issued the list of state nonmember banks evaluated in March 2003 for compliance with the CRA.FDIC PR Monthly Report 6/6/03

• Unauthorized Banking Operations Special Alert

  The FDIC has issued a special alert regarding two entities, Premiere Insurance Group and Crestal Bank, that may be conducting banking operations in Canada or the United States without authorization.SA-28-2003 6/6/03

• Collection and Use of Consumer Information Workshop

  The FTC will host a workshop on June 18, 2003, to address the issue of the costs and benefits to consumers and businesses of consumer information collection and use.FTC PR Agenda 6/6/03

• ARM and Home Equity Spanish Brochures

  Spanish versions of consumer information brochures regarding ARMs and Home Equity Lines of Credit have been placed online by the FRB.ARM Spanish    English   Home Equity Spanish    English 6/6/03

• U.S. Flow of Funds Data

  The FRB has released the Z.1 Flow of Funds report for the First Quarter of 2003 and posted it online.FRB Z.1 6/6/03

• FRB 2002 Annual Report

  The FRB Annual Report for 2002 is available online. FRB Annual Report 6/6/03

• Foreign Banks U.S. Branches Proposed Rule

  The OCC has published notice of a proposed rule regarding the approval procedures for foreign banks seeking to establish federal branches and agencies in the United States. Notice ACII    PDF 6/6/03

• Interim Rule Amending Use of ACH by Agencies

  The FMS has issued an interim rule to amend the regulation which governs the use of the ACH system by Federal agencies. Public comments on all aspects of the interim rule are requested. Interim Rule 6/6/03

• Flood Insurance Violations Result in CMP

  The FRB has announced the issuance of a $7,000 Civil Money Penalty against the Citizens Bank and Trust Company, Van Buren, Arkansas under a Consent Order in connection with 20 alleged violations of flood requirements under Regulation H..Order 6/5/03

• FDIC Details Recent OFAC Actions

  Two FDIC FILs have been issued dealing with OFAC actions previously announced on BOL.FIL-45-2003 FIL-46-2003 6/5/03

• June 2003 Call Report Validation Criteria

  The FFIEC has posted the validation criteria for June 2003 call reports online . Criteria Excel PDF 6/5/03

• Earnings Record in First Quarter

  The FDIC has released the Quarterly Banking Profile for the First Quarter 2003. It indicates that FDIC insured commercial banks and savings institutions earned a record $29.4 billion in the first quarter, which exceeded the previous record by more than $2 billion.FDIC PR Quarterly Banking Profile 6/5/03

• Consumer Advisory Council Meeting Scheduled

  The FRB Consumer Advisory Council will hold its next meeting on Thursday, June 26, 2003 at 9:00 a.m. Although the meeting is open to the public, those planning to attend the meeting should, for security purposes, register no later than Tuesday, June 24.Meeting Notice Meeting Registration 6/5/03

• Nominations For Consumer Advisory Council

  The FRB has announced that it is accepting nominations for nine new members to the Consumer Advisory Council for three year terms beginning January 2004. The Council advises the FRB on the exercise of its responsibilities under various consumer financial services laws and on other matters on which the FRB seeks advice. Letters of nomination must be received by August 15, 2003.FRB NR Nomination Form 6/5/03

• FCRA and Role of Regulators

  The role of the regulators was examined by FRB Director of Consumer and Community Affairs Smith in testimony before a Subcommittee of the House on Financial Services. She remarked that the FCRA promotes the interstate operations of banks and other financial entities by giving them the ability to obtain standardized consumer reports which allows prudent credit decisions to be made quickly and inexpensively. FRB PR 6/5/03

• Iraqi Economic and Financial Reconstruction

  Learn the government's plan for the economic and financial reconstruction of Iraq from the comments of Treasury Under Secretary for International Affairs Taylor before a Congressional Committee. He noted one of the most important objectives in the near-term is to promote the establishment of a stable, unified Iraqi national currency in addition to strengthening and modernizing the banking sector.Testimony 6/5/03

• OTS CRA Exam Schedule for Third Quarter

  The OTS has released the schedule for CRA examinations in the third quarter 2003.Schedule 6/4/03

• OCC CIP Final Rule

  OCC Bulletin 2003-23 transmits the joint final rule previously announced on BOL and published in the Federal Register on May 9, 2003, that requires all banks to establish procedures to verify the identity of customers. The final rule implements section 326 of the USA PATRIOT Act for banks, savings associations, credit unions and certain non-federally regulated banks.OCC Bulletin 2003-22    Final Rule 6/4/03

• Reduction of Regulatory Burdens

  The federal financial regulatory agencies have announced that they will publish a joint notice and request for comments on a plan to identify and eliminate outdated, unnecessary or unduly burdensome regulations imposed on insured depository institutions. Federal law requires the agencies to review their regulations at least once every 10 years and five roundtable discussions with bankers and other interested parties have been scheduled.FRB   OCC   OTS   FDIC 6/4/03

• First Quarter 2003 Large Banks Data Report

  The FRB has released the first quarter 2003 data report regarding domestically chartered insured commercial banks with consolidated assets of $300 million or more.Large Bank Report ACII   PDF 6/4/03

• Federal Reserve Act Online

  The FRB has placed the Federal Reserve Act online.Federal Reserve Act 6/4/03

• International Finance Discussion Papers

  Three International Discussion Papers for May 2003 have been released by the FRB. Topics include, "Distance, Time, and Specialization"; "An Empirical Analysis of Inflation in OECD Countries"; and "Net Foreign Assets and Imperfect Pass-through: The Consumption Real Exchange Rate Anomaly".Discussion Papers 6/4/03

• FDIC Annual Survey of Deposits

  The FDIC has announced that its annual Survey of Deposits will mailed the week of July 7th to institutions with more locations than a main office facility. Banks that do not have any branches are instructed not participate in the survey.FIL-44-2003 6/4/03

• FFIEC UBPR Online

  The March 31, 2003 Uniform Bank Performance Report is now available online. The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools.UBPR 6/4/03

• New SDNTKs Named

  OFAC has named 4 individuals and one entity as SDNTKs and added them to its listing of Principal Significant Foreign Narcotics Traffickers. OFAC has also re-designated two former SDNs as SDNTKs. Complete details are on our summary page. 6/3/03

• Advance Fee Credit Card Scam $1.3 Million Judgment

  A Canadian company was permanently barred from selling advance-fee credit cards and required to pay $1.3 million to consumers as part of a default judgment rendered in a case filed by the Federal Trade Commission. The firm, Efficient Telesales Services Inc. (also doing business as U.S. Credit Services and U.S. Direct Benefits and Savings), promised consumers a major credit card, charged for it in advance, but never delivered the credit card.FTC PR Judgment 6/3/03

• Bogus Privacy E-Mail Alert

  The FTC has issued an alert regarding bogus e-mails that may mislead recipients into revealing personal credit information. The e-mail claims that consumers must "opt out" by calling a listed phone number or the credit bureaus will release their information starting July 1. FTC 6/3/03

• Protecting Personal Information Workshop

  The role of technology in helping consumers and businesses to protect consumer information is the focus of a day long Federal Trade Commission workshop to be held on June 4, 2003, at the FTC Conference Center in Washington, D.C.Workshop Information Agenda 6/3/03

• FRB G.5 and G.20

  The FRB has released the May 2003 G.5 Foreign Exchange Rates and the March 2003 G.20 Finance Companies reports. FRB G.5 FRB G.20 6/3/03

• FRB's New Cash Management Services

  Starting July 1, two new Cash Management Products will be available to help institutions better manage their Federal Reserve account. Cash Management Plus will be available through the AMI service via FedLine for the Web and an Intra-day Download File will be available through a CI connection. FRB Services 6/3/03

• OCC Third Quarter CRA Examination Schedule

  The OCC has released the CRA Examination schedule for the third quarter of 2003.CRA Exam Schedule 6/2/03

• The ILC Debate

  The debate in Congress about whether Industrial Loan Companies should be considered equal with banks when it comes to powers like interstate branching and paying interest on business checking was discussed by FDIC Chairman Powell during a presentation before the Conference of State Bank Commissioners. He indicated the FDIC has not identified any safety and soundness concerns unique to ILCs, and are certain that they have the tools and the ability necessary to sufficiently supervise them.Speech 6/2/03

• Corporate Governance, Internal Controls and Audits

  These hot topics were discussed by FRB Governor Bies at the Conference of State Bank Commissioners. She commented that supervisors from all regulatory agencies need to continually work together to ensure a consistent, high-quality examination process throughout the banking system. Speech 6/2/03

• March Call and Thrift Financial Reports Online

  The FDIC has made the March 31, 2003 Report of Condition and Thrift Financial Report information available online.FDIC Call/TFR 6/2/03

• Counterfeit Cashier's Checks Alert

  The FDIC has issued two alerts regarding counterfeit cashier's checks drawn on First Federal Savings Bank of Florida, Live Oak, Florida, and on Premier Bank, Tallahassee, Florida. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 6/2/03

• FRB Check Processing Reorganization Schedule

  The FRB has announces the schedule for the restructuring of check processing sites nationwide. [The plan to reduce the number of check processing sites to 32 nationwide was previously announced on BOL.] Schedule Map 6/2/03

• Customer Financial Literacy

  OCC Chief of Staff Nishan commented on efforts to increase the financial literacy of existing and potential customers in a speech before the Urban Financial Services Coalition. He remarked that with the government and private sector working together, great strides can be made in improving the financial literacy of all citizens.Speech 6/2/03

• OFAC Adds Al-Aqsa Foundation

  Al-Aqsa Foundation has been added to the OFAC list as an SDGT, with numerous aliases. Plus, changes have been made relating to the sanctions on Yugoslavia, and FRYM and Balkans entities. All FRYM and Balkans entries which were previously on the OFAC SDN list have been deleted, but 173 NEW Balkans entries (plus "A.K.A.s") have been substituted. Complete details are on the BOL OFAC summary page. 5/30/03

• FRB Issues Proposed Rule to Amend Reg K

  The FRB is seeking public comment on a proposal to require Edge and Agreement corporations and U.S. branches, agencies and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to assure and monitor compliance with the Bank Secrecy Act and the regulations issued thereunder. [This was previously announced on BOL] 68FR32434 (txt) 68FR32434 (pdf) 5/30/03

• NCUA Issues Final Rule to Amend its Involuntary Liquidation Regulation

  The NCUA is issuing a final rule amending its involuntary liquidation regulation to designate swap agreements (swaps) as qualified financial contracts (QFCs). Treatment of swaps as QFCs will limit swap counterparty exposure when a federally-insured credit union is placed into involuntary liquidation or a conservatorship and thereby encourage entities to engage in swaps with federally-insured credit unions. Treatment of swaps as QFCs will also help preserve market stability. 68FR32355 (txt) 68FR32355 (pdf) 5/30/03

• FDIC April Enforcement Actions Announced

  The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in April. The actions include two cease-and-desist orders, two removal-and-prohibition orders, seven civil money penalty orders, one voluntary termination of insurance order, one termination of a supervisory prompt corrective action directive, one termination of a cease-and-desist order, and one adjudicated decision.FDIC PR-50-2003 5/30/03

• FRB Announced Written Agreements with Two Institutions

  The FRB has announced it has entered into written agreements with Brickyard Bancorp, Inc., Lincolnwood, Illinois, and NAB Bank, Chicago, Illinois. Brickyard Bancorp, Inc. Agreement NAB Bank Agreement 5/30/03

• Dual Banking System Serves Customer Needs

  The advantages of the U.S. dual banking system were outlined by Treasury Assistant Secretary Abernathy to the Annual Meeting of the Conference of State Bank Supervisors. He noted over the last several years, State and National banks have made enormous strides in expanding the reach of their services. Millions of people are new customers of mainstream financial institutions. Treasury JS-437 5/30/03

• BOL User Sounds Counterfeit Cashier's Checks Alert

  A BOL User utilized Bankers' Threads Security Forum to post a warning of attempts to negotiate counterfeit cashier's checks drawn on the Border Trust Company, South China, Maine. The alert has been confirmed by the institution. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/30/03

• Veil Case Goes to Court

  A case in which a Muslim woman is suing the state of Florida for revoking her driver's license after she refused to unveil for the photo is finally going to court. Experts are lined up on both sides to debate the extent to which freedom of religion must give way to the interests of public safety. For purposes of verifying the identity of veiled customers for your CIP, take a look at an article from the BOL Archive: "Verifying Customer Identity Beyond the Veil". Related News Story 5/29/03

• Comments Sought on Reg K Amendment

  The FRB is seeking comments on a proposed amendment to Reg K that would require Edge and Agreement corporations and U.S. branches, agencies, and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act and related regulations. Comments are due on or before June 30, 2003.FRB Notice 5/29/03

• FFIEC Reporting Forms Online

  The June 2003 FFIEC 031 and 041 Reporting Forms are available online.Form 031 Form 0415/29/03

• New Lower Tax Withholding Tables Online

  The Treasury and IRS have placed the new tax withholding table on their websites. The new tables are the result of the Jobs and Growth Tax Relief Reconciliation Act of 2003.Treasury PR    IRS PR    Treasury Tables    IRS Tables 5/29/03

• Now Online - Charge-Off and Delinquency Rates

  The FRB has placed online the charge-off and delinquency rates on loan and leases for commercial banks compiled from the quarterly FFIEC Consolidated Reports of Condition and Income. FRB Statistical Release 5/29/03

• Financial Holding Company List Updated

  The FRB has updated the list of the bank holding companies that have elected under the provisions of the Bank holding Company Act to become or treated as financial holding companies.FRB FHC 5/29/03

• Most Iraqi Sanctions Lifted

  Treasury Secretary Snow announced that OFAC has issued a general license that lifts most of the sanctions previously imposed against Iraq. The license permits all activities except trade in arms, certain cultural artifacts and transactions with certain Iraqi officials. Information regarding the OFAC action has been posted on the BOL OFAC page and the BOL OFAC Sanctions Matrix has been updated. 5/28/03

• FRB Issues Final Rule to Update Routing Numbers

  The FRB is publishing a final amendment to appendix A of Regulation CC that updates the routing numbers for Federal Reserve Banks and Federal Home Loan Banks. 68FR31592 (txt) 68FR31592 (pdf) 5/28/03

• FRB Issues Final Transition Rules for Reg C

  The FRB is publishing final amendments to the official staff commentary to Regulation C (Home Mortgage Disclosure). The amendments provide transition rules for applications received before January 1, 2004, on which final action is taken on or after January 1, 2004. 68FR31589 (txt) 68FR31589 (pdf) [This was previously announced on BOL]5/28/03

• Casino Gambled and Lost

  FinCEN announced the assessment of a $350,000 civil money penalty against the Greenville Riverboat, LLC d/b/a Lighthouse Point Casino for the willful failure to file 142 Currency Transaction Reports by Casino (CTRC) forms. The casino had a BSA program, but no CRTCs were filed for almost two years.FinCEN CMP 5/28/03

• Regulators Place Basel II Discussion Documents Online

  Documents developed by the FDIC, OCC, and FRB regarding the proposed revisions to the Basel Accord are available online. For the next several months, the agencies will be discussing U.S. implementation plans with bankers and other interested parties and soliciting comments on draft documents relating to implementation.FRB Basel II Accord 5/28/03

• FDIC Schedules Cyber Security Symposium

  The FDIC has announced that on June 13, 2003, it will host in partnership with the George Mason University School of Law a free day-long symposium regarding senior management's role in cyber security. The sessions will be held at the FDIC's L. William Seidman Center, Arlington, Virginia.FDIC PR    Agenda    Registration Form 5/28/03

• Credit Unions Post 5% Growth

  NCUA announced that federally insured credit unions posted a 5% growth in assets during the first three months of 2003. NCUA PR 5/28/03

• Reg C Transition Rules Released

  The FRB has published an amendment to the official staff commentary to Reg C that provide lenders with guidance on collecting and reporting information when an application for a home mortgage loan is received before and final action is taken after the effective date of revised Reg C, January 1, 2004. The revision requires lenders to report new data items, including information about loan pricing.FRB PR Official Staff Commentary 5/27/03

• FRB Interpretative Letters Online

  The FRB has made available online Interpretative Letters addressing regulatory capital status of a bank's indemnified agency securities lending program, exemption from quantitative limits of section 23A of the Federal Reserve Act, and title abstracting activities for aircraft as closely related to banking.Capital status Section 23A exemption Aircraft title abstracts 5/27/03

• OCC FAs With Failed Bank's Attorneys

  The OCC has announced that it has entered into formal agreements with the law firm Kutak Rock, LLP and the firm partner, Michael T. Lambert, who represented the failed First National Bank of Keystone, Keystone, West Virginia. The firm agreed to take certain actions with respect to representation of insured depository institutions, and Mr.Lambert agreed not to provide legal services to insured depository institutions.OCC NR 2003-40 Kutak Rock Agreement Lambert Agreement 5/27/03

• Counterfeit Cashier's Checks Alert

  The FDIC has issued an alert regarding counterfeit cashier's checks drawn on Bank of the West, San Francisco, California. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/27/03

• Comments Requested on FRB Proposal

  The FRB has requested comment by July 14, 2003 on a proposal to modify the method for imputing priced-service income from clearing balance investments.FRB PR Proposal 5/27/03

• War Risks and the Economy

  The FRB has placed online a working paper, "The Effects of War Risk on U.S. Financial Markets" which measures the effects of the risks associated with the war in Iraq on various U.S. financial variables.Working Paper 5/27/03

• OFAC Issues Interim Final Rule to Amend Iraqi Sanctions Regulations

  The general licenses authorize the following activities involving Iraq: non-commercial funds transfers (including family remittances) and related transactions, activities by the U.S. Government and its contractors or grantees, privately financed humanitarian transactions, and certain exports and reexports to Iraq. 68FR28753 (txt) 68FR28753 (pdf)5/27/03

• FFIEC HMDA 2003 Guide Now Online

  The FFIEC has placed the Guide to HMDA Reporting: Getting It Right online. The Guide provides a summary of responsibilities and requirements, directions for assembling the necessary tools, and step-by-step instructions for reporting HMDA data. The current 2003 version should be used for guidance on collection and reporting of calendar year 2003, and the 1998 version should be used for guidance on collection and reporting of calendar year 1998 through 2002.2003 Guide 1998 Guide 5/23/03

• Host State Loan-to-Deposit Ratios Issued

  The FRB, FDIC, and OCC have issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. FRB Release    OCC    FDIC    FIL-41-2003    Ratios 5/23/03

• 37 OCC CRA Evaluations Online

  The OCC has released and placed online the results of CRA performance evaluations for the period April 15, 2003 to May 14, 2003. Of the 37 national banks reviewed, 8 were rated outstanding and 29 were satisfactory. None were needs to improve or substantial noncompliance. CRA Evaluations 5/23/03

• U.S. Financial Institutions Allowed in Iraq

  OFAC has published an Interpretative Guidance that authorizes U.S. financial institutions to establish a presence in Iraq for the limited purpose of facilitating the transfers of non-commercial humanitarian funds, Information regarding the Guidance has been placed on the BOL OFAC page. 5/23/03

• Weekly Bill Auctions Announcements Delayed

  The Treasury Department has postponed the announcement of its weekly 13-week and 26-week bill auctions and its monthly 2-year note auction, scheduled to be announced May 22, 2003, until further notice. This postponement is due to the statutory debt limit.Treasury JS389 5/23/03

• FRB Requests Comments

  The FRB has issued a request for comments on proposals to approve the extension for three years, without revision, of the following reports: FR 2064, FR H-4, and the RFP and RFPQ. Request for Comment 5/23/03

• Prospects for Economic Growth

  Learn the why FRB Governor Olson thinks the stage has been set for an improvement in the economic climate from his remarks to Minnesota Chamber of Commerce members. He indicated the recent news from oil and financial markets and consumer confidence clearly suggests that the reduction in risks associated with the situation in Iraq has had a number of favorable effects. Speech 5/23/03

• New Money Smart Alliance Partner

  The FDIC announced that National Image, Inc. has joined its Money Smart Alliance Program. National Image, Inc. is a network of professionals dedicated to assisting the U.S. Hispanic community in the areas of employment, education and civil rights. Headquartered in Denver, CO, National Image has local chapters throughout the United States. FDIC MSPR 1003 5/23/03

• OCC Issues Proposed Rule to Modify the Securities Offering Disclosure Rules

  The amendments to the Exchange Act give the OCC the authority to administer and enforce a number of the Sarbanes-Oxley Act's new reporting, disclosure, and corporate governance requirements with respect to national banks that have a class of securities registered under the Exchange Act. They are also proposing to make conforming revisions to the rules which prescribe securities offering disclosure rules for national banks that issue securities that are not subject to the registration requirements of Securities Act of 1933. 68FR27753 (txt) 68FR27753 (pdf) 5/22/03

• Counterfeit Cashier's Checks Alert

  The Federal Reserve Bank of San Francisco has issued an alert regarding counterfeit cashier's checks drawn on the Community Bank of Arizona, N.A., Wickenburg, Arizona. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/22/03

• Protection of Critical Financial Infrastructure

  Learn what actions the government and private industry are taking to protect the critical financial infrastructure. Read the comments of Treasury Deputy Assistant Secretary Dawson at a meeting of Protecting the Financial Sector, a Chicago public and private partnership. He noted the actions of Treasury are guided by the following three principles: 1) the safety of the tellers, loan officers, and technicians that make up the financial infrastructure; 2) ensuring that our financial institutions continue to function even during - especially during - times of stress; and 3) the promotion of decentralized decision-making and problem-solving, both as financial institutions prepare for disruptions and as they weather them. Treasury JS-397 5/22/03

• Fedwire Online Operating Hours to be Expanded

  The FRB has announced that the Fedwire Online Funds Service will open three and one-half hours earlier than the current opening time of 12:30 a.m. ET. The closing time for the service will remain 6:30 p.m. ET. The scheduled timeframe for full implementation of the expanded operating hours is the second quarter of 2004. Fedwire participants will be notified at least sixty days before the specific effective date of the new hours. FRB Notice 5/22/03

• Greenspan -The Economy Outlook

  In testimony before the Joint Economic Committee of Congress, Chairman Greenspan noted that one reassuring development that has been sustained through this extended period of economic weakness has been the performance of productivity. He indicated the economic fundamentals--including the improved conditions in financial markets and the continued growth in productivity--augur well for the future.Testimony 5/22/03

• Thrift First Quarter Interest Rate Measures

  OTS has released the Preliminary Thrift Industry First Quarter Interest Rate Measures.OTS Release 5/22/03

• Some Non-Local Checks to Become Local

  Effective July 22, 2003, the FRB has announced the deletion of obsolete numbers from and the addition of new numbers to the list of routing numbers in Appendix A to Reg CC for checks drawn on Federal Reserve Banks and Federal Home Loan Banks. In addition, the FRB gave notice of plans to reduce the number of check processing regions from 44 to 32. As a result, some checks that are currently designated non-local items will become local checks and be subject to faster availability schedules. Implementation of the reductions will occur in phases beginning the last half of 2003 and will be completed by the end of 2004. In order to give the affected financial institutions time to make processing changes and, if necessary, make adjustment to availability schedules and notify customers, the notice of each phase will published in the Federal Register at least 60 days before the effective date. FRB PR Final Rule and Amendments 5/21/03

• CTR Revisions May Be in the Works

  FinCEN has published a notice and request for comment on proposed revisions to the Currency Transaction Report and editorial changes to the instructions. Several editorial changes would be made in this revision, and two data collection blocks would be added to Part II for Foreign cash in and Foreign cash out. A new item 37a would be added in Part III for listing a foreign country code.68FR27143 (txt) 68FR27143 (pdf) 5/21/03

• OCC Issues BSA/AML Bulletin

  The OCC has issued a bulletin that gives notice of the revocation of the designation of Ukraine as a primary money-laundering concern and a proposed rule to impose "special measures" against Nauru.OCC Bulletin   Revocation Notice   Proposed Rule 5/21/03

• Seychelles Advisory Withdrawn

  FinCEN has withdrawn its Advisory 2 regarding the Republic of Seychelles. The enhanced scrutiny of transactions involving the Republic of Seychelles is no longer necessary.FinCEN 5/21/03

• FedACH NOC Information Online

  The online services offered by FedACH e now include derived returns and notifications of change. Operating Circular 4 was amended to reflect the new services. FRB Ser Operating Circular 4 5/21/03

• Thrifts Set Income Records

  OTS announced that in the first quarter of 2003 the nation's thrift industry set records for net income, profitability, equity capital and mortgage refinancing volume. The industry earned a record $3.33 billion for the quarter, nine percent higher than the previous record.OTS 03-17   Selected Indicators   Charts   Highlights   Charge-Off Rates 5/21/03

• Online FFIEC Guidance Booklets

  The FFIEC has made available online two revised guidance booklets, one for institutions and examiners regarding business continuity planning and the other for examiners regarding the supervision of technology service providers. Business Continuity Planning Booklet    Supervision of Technology Service Providers Booklet OCC Bulletin ASCII WORD OTS 03-18 5/21/03

• FCRA and the FTC

  In testimony before the Senate Committee on Banking, Housing and Urban Affairs, the Director of the FTC Bureau of Consumer Protection gave an overview of the FCRA and noted that the FTC regards consumer education as vital to the FCRA because the statute contains self-enforcing elements, such as the right to dispute inaccurate or incomplete information.Testimony 5/21/03

• Nine Enforcement Actions Announced

  The OCC announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Maryland, Illinois, North Carolina, Florida, Oregon and Alabama. OCC NR 2003-37 5/20/03

• Stolen Cashier's Checks Alert

  The FDIC had issued an alert regarding outdated cashier's checks that have been stolen from The Bank of Abbeville, Abbeville, South Carolina. The stolen checks are in circulation. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/20/03

• Financial Education Initiative Announced

  The FRB announced a broad initiative to provide consumers with more resources for making smart financial decisions. The program includes the introduction of public service messages, a new brochure, enhancements to the System's financial education web site, and the announcement of upcoming System-sponsored programs and events.FRB PR 5/20/03

• FinCEN Extends Exception to Travel Rule

  FinCEN is giving notice that it is extending, until December 1, 2003, a conditional exception to the Travel Rule that is due to expire on May 31, 2003. The exception permits financial institutions to substitute coded information for the true name and address of a customer in a funds transmittal order. The purpose of the extension is to permit FinCEN to perform a study of the alternatives to continuing the conditional exception. 68FR26996 (txt) 68FR26996 (pdf) 5/19/03

• HOEPA APR Reference Rates for April Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in April 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, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rate    FRB Weekly Rates 5/19/03

• AML Non-cooperative Countries List Updated

  The OCC has updated an Advisory Letter which lists the countries identified by the FFIEC as non-cooperative in the fight against money laundering. OCC AL 2003-4 5/19/03

• FinCEN Issues Final Rule to Amend the Foreign Bank Account Report Requirements

  FinCEN is amending the regulations implementing the Bank Secrecy Act to reflect that enforcement authority with respect to the foreign bank account report requirements of 31 CFR part 103 has been delegated from FinCEN to the Commissioner of the Internal Revenue Service. 68FR26489 (txt) 68FR26489 (pdf) 5/16/03

• FFIEC UBPR User's Guide Online

  The FFIEC has placed the User's Guide for the Uniform Bank Performance Report online. The guide contains basic guidelines for using the UBPR, including methods of analyzing the report, technical information and ratio definitions. Total Report Table of Contents 5/16/03

• T Bill Auction Announcement Delayed

  The Treasury Department has postponed the May 15, 2003 announcement of its weekly 13-week and 26-week bill auctions until further notice. Treasury JS376 5/16/03

• OTS Cost of Funds Reports Released

  The OTS has released a current and a historical National Monthly Median Cost of Funds Ratio to SAIF - Insured Institutions report.Current Report Historical Report 5/16/03

• Tracking Saddam's Money

  The successful joint efforts of government agencies to track down, freeze, and repatriate to the people of Iraq assets that have been systematically looted by Saddam Hussein, his family, and his cronies was described to a House subcommittee by Treasury General Counsel Aufhauser. On March 20, $1.7 billion in Iraqi assets frozen by the 19990 economic sanctions were deposit in a special FRB account. Since March 20, over 1.2 billion addition funds have been identified. Testimony 5/15/03

• Counterfeit Cashier's Checks Special Alerts

  The FDIC has announced that counterfeit cashier's checks drawn on The Jacksonville Bank, Jacksonville, Florida; California National Bank, Century City, California; and Firstbank - West Branch, West Branch, Michigan are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 5/15/03

• History Provides Answers to Current Questions

  The answers to many current banking questions including: what activities are incidental to the "business of banking", when do State laws effect a national bank, and if the State law applies who enforces it, are found in the history of the origination of the banking system according to a presentation by OCC General Counsel Williams to the OCC Alumni Association. Speech 5/15/03

• Your Institution Could Be Eligible

  The Community Development Financial Institutions (CDFI) Fund will award $18 million this year in financial incentives through its Bank Enterprise Award (BEA) Program to certain eligible FDIC-insured institutions that comply with the program's requirements and submit an application for consideration. The average award last year was $284,248. FDIC NR Application Information5/15/03

• NCUA Disaster Relief Policy Activated

  The NCUA has activated its disaster relief policy to assist credit unions and members in counties eligible for aid in Alabama, Kansas, Missouri, Oklahoma and Tennessee, where offices and homes were destroyed by multiple tornadoes in the last two weeks. NCUA NR03-0514-2 5/15/03

• OFAC Rulings Online

  OFAC has made available online two Interpretative Ruling entitled "Equipment to manufacture goods which may be sold to Iran" and "Export/aircraft safety (Iran)". OFAC Interpretative Rulings   Equipment Ruling    Export Ruling 5/14/03

• What Is The Color Of Your Money?

  Soon it will be a combination of copper, blue, peach and green. The new $20 bill has been revealed and it contains all those colors, but some are hard to spot on purpose to foil counterfeiters. Read all about the changes and see what the new bill looks like in a BOL Exclusive Article, "All About the New $20." 5/14/03

• Fraud Alert - Internet Payments With Fraudulent Checks

  The OCC has issued a fraud alert regarding fraudulent cashier's and official checks used to make payments to defraud consumers in connection with legitimate sales of goods, primarily over the Internet. If one of the instruments is presented to a financial institution, it is directed to hold the item and call the local FBI office.OCC Alert 2003-8 WORD ASCII 5/14/03

• Administration's International Economic Agenda

  Treasury Secretary Snow outlined the Administration's international economic agenda in a presentation before the House Committee on Financial Services. He noted that rebuilding Iraq and Afghanistan is clearly a key priority for the United States and the international community. Speech 5/14/03

• BB&T/First Virginia Merger Approved

  The Federal Reserve Board has announced its approval of the application and notice by BB&T Corporation, Winston-Salem, North Carolina, to merge with First Virginia Banks, Inc., Falls Church, Virginia, and thereby acquire its banking and non-banking subsidiaries.Order of Approval 5/14/03

• New FRB Working Papers Online

  The FRB has made available online the latest working papers in the Finance and Economic Discussion Series. Topics include, "The Long-Run Relationship between House Prices and Income: Evidence from Local Housing Markets"; "Foreclosing on Opportunity: State Laws and Mortgage Credit"; and "Monetary Policy and the Yield Curve". FRB Working Papers    5/14/03

• Deposit Insurance Reform

  The Treasury Department, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision have submitted draft legislative language on deposit insurance reform to the U.S. Senate Banking Committee.Summary    Draft Legislation    Joint Agency Letter 5/13/03

• Online Call Report Validation Report Criteria

  The March 2003 Call Report validation criteria has been posted by FFIEC on its Web site.FFIEC 5/13/03

• USA PATRIOT Act Preparedness Checklist

  OTS has issued a checklist for institutions to use for CIP compliance and updating established BSA anti-money laundering requirements. A series of questions aid in the analysis of current BSA/AML programs and assist in the development of new CIP programs. Checklist    CIP Q & A    CEO Memorandum    OTS Release 03-16 5/12/03

• Senior Officers Respond To Survey

  The FRB has released the results of the April 2003 Senior Officer Opinion Survey on Bank Lending Practices. The survey focused on the changes regarding the supply of and demand for bank loans over the last three months.Full Report    Charts pdf    ASCII    Table 1    Table 2 5/12/03

• OCC Closes Wisconsin Bank

  The First National Bank of Blanchardville, Blanchardville, Wisconsin, was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation was appointed receiver.OCC NR2003-35    FDIC PR-47-2003 5/12/03

• Iraq Sanctions Relaxed and UNITA Sanctions Terminated

  Four General Licenses regarding transactions with Iraq have been granted and the President has issued an Executive Order terminating the emergency with respect to the actions and policies of UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

• Assets Blocked, Entities Added and Removed

  All property and interests in property of four entities, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. The names have been integrated into OFAC's SDN list with the descriptor, BPI-SDNT. In addition, many entities have been removed from the SDN list as a result of the Executive Order regarding UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

• CIP Rules Hit Federal Register

  The final rules on Customer Identification Program requirements were published in the Federal Register today. 68FR25089 (txt) 68FR25089 (pdf)5/9/03

• Greenspan On Corporate Governance

  Chairman Greenspan noted that a reputation for honest dealings within a corporation is critical for effective corporate governance, but even more important is the reputation of the corporation itself as seen through the eyes of outsiders. His remarks were made at the 2003 Conference on Bank Structure and Competition, Chicago, Illinois. He also discussed the benefits and risks associated with derivatives plus incentives for effective risk management. Speech 5/9/03

• FCRA Information Sharing Provisions Before Congress

  Congress is evaluating the FCRA provisions regarding the uniform national standards for financial information sharing which are scheduled to sunset at year end. In testimony before the House Committee on Financial Services, Assistant Treasury Secretary Abernathy explained the important role the standards play in the fight against identity theft. Testimony 5/9/03

• FRB Bulletin Articles Online

  Articles from the 2003 FRB Bulletin are available online. The most recent addition, "U.S. International Transactions in 2002", covers the widening of the U.S. trade deficit. May 2003 Bulletin 5/9/03

• First Quarter BIF & SAIF Financials

  The FDIC has released the First Quarter 2003 Executive Management Report regarding the financial results of the BIB and SAIF insurance funds. Executive Management Report 5/9/03

• Ruling Online and SDGT Entries Changed

  OFAC announced that a new Interpretative Ruling is available online and that changes to three former SDGT entries have resulted in new entries being added to the OFAC list. Information regarding the Interpretative Ruling and the OFAC changes can be found on the BOL OFAC page. 5/8/03

• Agencies Seek Comments

  The OCC and the FRB are seeking comments on a proposal to extend for three years without revision a current information collection form, FFIEC 030. Comments are due on or before July 7, 2003.Joint Agency Notice 5/8/03

• Credit Report Shows Gains

  The G.19 Consumer Credit Report for March 2003 had been released by the FRB. FRB G.19 5/8/03

• BIF Year-End Status Projected

  Chairman Powell stated the need for deposit insurance reform while reporting on the projected year-end status of BIF following a meeting of the FDIC Board of Directors. FDIC PR 46-2003 FDIC First Quarter Funds Report PR 45-2003 5/8/03

• Fed Funds Rate Unchanged

  The Federal Open Market Committee left its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release 5/7/03

• New Money Unveiled May 13th

  Previously, officials had indicated the new $20 bill would be unveiled March 27th. That date came and went with no unveiling and no explanation, but the new date, May 13th, appears to be a certainty. The new design for the $20 notes will be revealed on that date, and the bills will be in circulation later in the year. The new design will retain current security features, including watermarks similar to the portrait and visible when held up to a light, enhanced security threads that glow under ultraviolet light, microprinting, and color-shifting ink that changes color when the note is tilted. New Money Announcement 5/7/03

• Credit Cards, Cash Payments, and Consent Orders

  Saks Incorporated and an Illinois bank have entered into consent orders with the OCC which require numerous actions be taken to bolster the Bank Secrecy Act compliance of the entities. The actions appear to stem from the way certain credit card transactions were handled, including the receipt of cash payments. Consent Order - National Bank of the Great Lakes; Consent Order - Saks Incorporated 5/7/03

• FDIC Encourages Help to Tornado Areas

  The FDIC is encouraging banks to work constructively with borrowers in affected areas who, because of the tornadoes, are experiencing difficulties beyond their control. 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. FDIC Guidelines 5/7/03

• May CRA Exams from FDIC

  The FDIC has published its list of banks that will be undergoing CRA exams in May. May 2003 CRA Exam Schedule 5/7/03

• Commercial RE Loan Problems Result in Penalty

  An Illinois banker has been assessed a $20,000 civil money penalty by the FDIC amid allegations he failed to ensure that the bank obtained appraisals before underwriting, approving and funding large commercial real estate loans. Numerous loans were found to have been booked, between September 1999 and January 2001, without timely written appraisals. FDIC PR-43-2003; Order FDIC-03-031k. 5/7/03

• Falsified Docs Lead to Removal and Penalty

  The FDIC issued a removal and prohibition order and imposed a civil money penalty against Daniel J. Schmitt, a director of the Hartford-Carlisle Savings Bank, Carlisle, IA, which was closed by the Iowa Superintendent of Banking on January 14, 2000. The order and penalty stem from allegations that Schmitt falsified documents for two loans disguising the true purpose for which the loan proceeds were ultimately used. FDIC PR-44-2003; Order FDIC-02-089e; Order FDIC-02-088k. 5/7/03

• Freddie and Fannie Release New Form

  A new joint Uniform Residential Loan Application form has been released by Freddie Mac and Fannie Mae. NOTE: The new form is not to be used for applications received prior to January 1, 2004. The Fannie Mae announcement states the new form is the result of changes to Reg C and the USA PATRIOT Act. In recent amendments to Regulation B, the FRB noted that the model loan application form contained in Reg B's Appendix B is issued by Fannie Mae and Freddie Mac. The current Appendix B form should still be followed until the FRB publishes a revised form reflecting ethnicity and racial designations to dovetail with the new Freddie Mac/Fannie Mae form. Revised Application Form Fannie Mae Guide Recent Reg B Amendments 5/6/03

• Corporate Governance and Non-Public Financial Institutions

  The FRB, OCC and OTS have issued a joint statement regarding whether or not the agencies expect small, non-public banking organizations to comply with Sarbanes-Oxley and the corporate governance proposals from the NYSE and NASDAG. FRB Statement    FRB SR 03-08 OCC release 5/6/03

• FinCEN Provides More AML Help to MSBs

  Three guides are available on FinCEN's sight to help the anti-money laundering efforts of Money Services Businesses. The three guides cover Bank Secrecy Act Requirements,Reporting Suspicious Activity, and Money Laundering Prevention. MSB Guides 5/6/03

• Online Consumer Vehicle Leasing Guide

  The FRB has made available on its Web site a quick consumer guide regarding closed-in leases. The guide is designed to help consumers compare offers and negotiate leases that best fit their needs. A sample lease form is included, along with a glossary of common leasing terms. Leasing Guide 5/6/03

• FedLine Web Services Enhanced

  Starting May 12, 2003, several new FedLine services will be available online. They include automated branch set-up, cash orders armored carrier selection and validity edits for currency amounts.FRB Services 5/6/03

• Fake Instruments Alert

  The OCC has issued a Fictitious Financial Instruments Alert regarding worthless sight drafts, bills of exchange, due bills and redemption certificates. Included in the alert are instructions for handling such instruments if they are presented. OCC Alert 5/6/03

• Securities and Commodities AML Proposed Rules Published in Federal Register

  Treasury and FinCEN have published in the Federal Register three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. [This was previously announced on BOL]. Commodities    Futures Commission Merchants    Investment Advisers 5/5/03

• All Assets of Firm Blocked

  All property and interests in property of TRANSPORTING, LLC, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. Although the company is not now an SDNT, its name has been integrated into OFAC's SDN list. For more information, see the summary on the BOL OFAC page.Summary 5/5/03

• Additional OFAC CMP Information Revealed

  The weekly release of information regarding civil money penalties issued by OFAC now includes the year the violation occurred and more detail on the type of violation. The current report lists two violations by Deutsche Bank A.G. that occurred in 1999 and 2000. OFAC CMP5/5/03

• Deposit Insurance Premiums May Increase

  Chairman Powell, in a presentation before the Nebraska Bankers Association, noted that the Bank Insurance Fund is very close to the 1.25 premium trigger. He indicated that the FDIC can never rule out surprises that would force the FDIC to charge high premiums on the industry at the worst possible time.FDIC PR-40-2003 5/5/03

• Open Meeting Scheduled

  The FDIC has announced that an open meeting of the Board will be held in Washington, D.C. on May 7, 2003. Agenda items include: BIF assessment rates, SAIF assessment rates and a resolution regarding deposit insurance coverage of Living Trust accounts.FDIC Notice 050703 5/5/03

• Online Report Form Instructions

  The instructions for completing the March 030 Form, Foreign Branch Report of Condition, are now available online at the FFIEC website.FFIEC 030 5/2/03

• Small CU Working Group Formed

  NCUA has announce the creation of an internal working group that will identify problems peculiar to small credit unions and suggest possible options to increase their competitiveness and financial stability. NCUA NR03-0502 5/5/03

• New SAR Form

  FinCEN has released a new SAR Form and new Specifications for the Magnetic Media Filing of SARs. Please note the new SAR form is NOT to be used until July 1, 2003. The new forms have added two categories of suspicious activity, Terrorist Financing and Identity Theft, in box 35. The current SAR form will not be accepted after December 31, 2003. SAR Form    Magnetic Media Specifications 5/2/03

• FRB Written Agreement With Ohio Bank

  The Federal Reserve Board on Thursday announced the execution of a Written Agreement by and among The First State Bank of West Manchester, West Manchester, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions regarding the management and lending policies of the bank.Written Agreement 5/2/03

• $3 Billion Visa/MC Debit Card Settlement

  Just hour before a class action lawsuit was scheduled to go to trial, Visa reached a $2 billion settlement with Wal-Mart and thousands of other retailers who claimed they had been damaged by the forced acceptance of Visa and MasterCard branded debit cards. The retailers also contended were forced to pay "'unjustifiably high fees" on the cards. MasterCard had reached a $1 billion settlement with the retailers earlier in the week. Read more about the case in the "Cases In The News" section of BOL Court Watch where BOL has been monitoring the progress of the case. Cases In The News 5/2/03

• G.5 Foreign Exchange Rates Released

  The FRB has released the May I, 2002 G.5 table which shows the average foreign rates of exchange in April 2003 with comparable figures for other months.FRB G.5 5/2/03

• Comments Make Difference: Altered CIP Rules Released

  The regulators have issued the long awaited final rules implementing section 326 of the USA PATRIOT Act that require financial institutions to establish procedures to verify the identity of new customers. Numerous changes were made to the initial proposal, in part due to the comments received from financial institutions. For an analysis, read the BOL article, "CIP FINAL RULES: 10 Quick Changes" on the USA PATRIOT Act page. Section 326 Final Rules 5/1/03

• HSBC Bank USA Written Agreement

  The Federal Reserve Board has announced the execution of a Written Agreement by and among the HSBC Bank USA, Buffalo, New York, the Federal Reserve Bank of New York, and the New York State Banking Department regarding the bank's compliance with the provisions of the Bank Secrecy Act and Reg H.Written Agreement 5/1/03

• Basel Accord Comments Sought

  The Basel Committee on Banking Supervision has released for comment its third consultative paper on the new Basel Capital Accord. The OCC, FRB and FDIC plan to issue an Advance Notice of Proposed Rulemaking (ANPR) in the next few months. The ANPR will be based on the Committee's paper and will focus on how the U.S. agencies intend to implement domestic changes that reflect the specific nature of U.S. banks and banking. Comments must be submitted by July 31, 2003.Basel Committee    OCC    FRB    FDIC    FDIC FIL-31-2003 5/1/03

• Treasury Issues May 2003 Quarterly Refunding Statement

  The May 2003 Quarterly Refunding Statement was announced by Assistant Secretary Roseboro along with future auction schedule changes regarding the auction of 5-year notes on a mid-monthly basis and the reopening of 10-year notes on an intra-quarterly basis. Treasury JS-223 5/1/03

• Optimism Exists Despite Weak Economy

  Weakness in the economy exists, but there are reasons for optimism according to a report issued by Treasury Borrowing Advisory Committee to the Secretary of the Treasury. Weakness in the key sectors of consumption, investment, and government spending resulted in economic growth nearly three quarter of a point below expectations, but consumer confidence has begun to improve. Treasury JS-224 5/1/03

• Standards for Treasury Check Indorsements and Losses

  The Department of the Treasury Financial Management Service has published an advance notice of proposed rulemaking on revisions to its regulations (31 CFR 240) governing the indorsement and payment of checks drawn on the United States Treasury. The regulations provide how checks may be indorsed, and remedies when checks are lost or stolen, and then subsequently negotiated by someone other than the intended payee. In instances where losses occur, such as when a check bearing a fraudulent indorsement is paid, the regulations provide for the allocation of losses between the Government and indorsers of the check. Txt version of ANPR     PDF version of ANPR 4/30/03

• BANKFIRST Written Agreement

  The FRB has announced the execution of a Written Agreement by and among BANKFIRST Corporation, Sioux Falls, South Dakota, a registered bank holding company, and its subsidiary bank, BANKFIRST, also of Sioux Falls, South Dakota, and the Federal Reserve Bank of Minneapolis regarding banking practices relating to credit card operations. Written Agreement 4/30/03

• Securities and Commodities AML Rules Proposed

  Treasury and FinCEN have issued three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. Treasury JS-333   Investment Advisors    Commodity Trading Advisors    BSA Amendment 4/30/03

• High Marks for NCUA Exam

  The results of a NCUA survey regarding a risk-focused examination program indicate that the program, which was introduced in fall 2002, has been well received. Highest marks were given for examiners' conduct, the overall examination process and effective communication during the examination. NCUA Survey 4/30/03

• Texas Banker Subject of Removal and Civil Money Penalty

  The FDIC has issued a removal and probation order in addition to imposing a $5,000 civil money penalty against former Texas banker, Mary Gonzales. She allegedly made unauthorized loan and credit card advances in violation of bank policies; concealed delinquent loans from the bank's board of directors; issued herself a credit card and increased the credit limit on an existing bank credit card without the necessary approval and in violation of Regulation O; and concealed the failure on her part to pay delinquent payroll taxes. FDIC Pr-38-2003 4/29/03

• Investment Research Scandal Leads to Major Penalties

  The SEC, New York Attorney General, North American Securities Administrators Association, NASD, New York Stock Exchange, and state securities regulators announced the settlement of enforcement actions against ten of the nation's top investment firms resulting in $875 million in penalties and disgorgement. The firms, which included Citigroup Global Markets Inc. f/k/a Salomon Smith Barney Inc.; J.P. Morgan Securities Inc.; and U.S. Bancorp Piper Jaffray Inc.; were alleged to have engaged in acts and practices that created or maintained inappropriate influence by investment banking over research analysts, thereby imposing conflicts of interest on research analysts that the firms failed to manage in an adequate or appropriate manner.Joint Release 4/29/03

• Basel II Risk Management Objectives

  The objectives relating to risk management of the Basel II proposal were discussed by FRB Vice Chairman Ferguson in a presentation at the Risk Management Workshop for Regulators, The World Bank, Washington, D.C. Ferguson Speech 4/29/03

• Treasury Economic Update

  An overview of the current state of the economy was given by Treasury Assistant Secretary Clarida to the Treasury Borrowing Committee of the Bond Market Association. He noted the economy continued to grow over the last three months but at a pace short of its potential. The war in Iraq, higher oil prices, and an unusually severe winter restrained economic activity. Clarida Speech 4/29/03

• Second Quarter $79 Billion Borrowing Expected

  The Treasury Department announced that it expects to borrow $79 billion in marketable debt during the second quarter and to target a cash balance of $45 billion on June 30. The increase in borrowing is due to lower receipts, higher outlays, placement of additional compensating balances and a lower cash balance at the beginning of the quarter. Treasury JS332 Charts 4/29/03

• $72,200 OFAC Civil Penalty Imposed

  OFAC has released its weekly report of civil penalties enforcement activities. The latest report contains the largest civil money penalty imposed against a financial institution since the weekly report was started three weeks ago. A voluntary disclosure by a financial institution of a violation of the export provisions of the Cuba sanction program resulted in the imposition of a settled penalty of $72,200. OFAC 4/28/03

• FinCEN Advisories Withdrawn

  FinCEN has withdrawn Advisory 16 regarding Dominica and Advisory 31 regarding Grenada. The enhanced scrutiny of transactions involving the countries, as called for by the advisories, is no longer necessary. Dominica 16W    Grenada 31W 4/28/03

• FRB G.20 Report

  The FRB has released the February 2003 G.20 Report containing information regarding owned and managed receivables and auto loans terms of credit. G. 20 Report 4/28/03

• FinCEN Responds to Ruling Request

  FinCEN has responded to a request for a ruling that a bank be considered neither a "foreign shell bank" nor a "foreign bank", or, in the alternative, be granted an exemption. FinCEN Ruling 2003-2 4/28/03

• FDIC Corporate Sector Roundtable Held

  The FDIC hosted its second economic roundtable this year, this time for the corporate sector. The focus was on job growth and what can be done to help get the U.S. economy moving forward. FDIC PR-36-2003 4/25/03

• FRB Governor Addresses Loan Guarantee Programs

  In a speech before the National Economists Club, Fed Governor Gramlich addressed the subject of loan guarantee programs. Gramlich Speech 4/25/03

• New Economic Papers Posted

  Three new papers have been posted online by the Federal Reserve as part of the Finance and Economics Discussion Series. They address "Market Structure and Quality", "Spillovers Across U.S. Financial Markets", and "New Evidence on the Interest Rate Effects of Budget Deficits and Debt". 2003 FEDS Papers 4/25/03

• Business Bounce Back Addressed by FRB's Bernanke

  In a speech to the Forecasters Club in New York City, FRB Governor Ben Bernanke lent his perspective to the economy and the issue of whether business investment will bounce back. Bernanke Speech 4/25/03

• FDIC Announces Administrative Enforcement Actions

  The Federal Deposit Insurance Corporation has released a list of orders of administrative enforcement actions taken against banks and individuals in March. The FDIC processed a total of 10 orders in March. These included five cease-and-desist orders, two civil money penalty orders, two terminations of cease-and-desist orders, and one adjudicated decision. PR-37-2003 4/25/03

• SEC Acts on Electronic Filing and Auditor Issues

  The Securities and Exchange Commission voted to require that reports by insiders disclosing their securities holdings be filed electronically with the SEC. It also voted to adopt rules prohibiting company officials from improperly influencing auditors of financial statements. SEC RELEASE 2003-51 4/25/03

• Interagency Internal Audit Guidance Issued

  The FRB, FDIC, OCC and OTS have issued an amendment to their policy statement, Internal Audit Function and its Outsourcing, which provides guidance regarding the independence and effectiveness of an institution's internal audit function.FRB SR 03-5    FRB Statement 4/24/03

• Risks of Weblinking Guidance

  The OTS, OCC, FDIC and NCUA have issued a joint guidance on the risks of weblinking to assist institutions in the identification and managing of the potential risks involved if the institution places weblinks to other websites on its Web Page. This subject was discussed in a Special BOL Compliance Briefing issued yesterday. If you are not receiving the free BOL briefings, sign up here. OTS 03-15    OTS TB 83    FDIC PR-34-2003    FDIC Statement    FDIC FIL-30-2003    NCUA PR    NCUA Letter 03-CU-08    OCC Bulletin 4/24/03

• Guidance Issued Regarding Golden Parachutes

  The FRB has issued a guidance regarding certain restrictions imposed on the issuance of severance packages known as "golden parachutes" and the appointment of any new senior executive officer or director by any institution in a "troubled condition".FRB SR 03-6 4/24/03

• April 2003 Beige Book Issued

  The FRB has published the April 23, 2003 issue of the Beige Book which contains summaries of the economic conditions in each of the twelve Federal Reserve Districts.
  Beige Book 4/24/03

• OCC Gives Bank Go-Ahead for New Transactions

  In Interpretive Letter #962, the Office of the Comptroller of the Currency gave conditional approval for a bank to expand customer-driven financial intermediation transactions in electricity derivatives to include transitory title transfers. OCC Interpretative Letter #962

• OCC Issues Proposed Rule to Amend Regulations Pertaining to Foreign Operations

  The proposed rule would clarify certain regulatory definitions and simplify approval procedures for foreign banks seeking to establish Federal branches and agencies in the United States. These proposed changes will further conform the treatment of Federal branches and agencies of foreign banks to that of their domestic national bank counterparts consistent with the national treatment principles of the International Banking Act. 68FR19949 (txt) 68FR19949 (pdf) 4/23/03

• Flood Violation Civil Money Penalty Assessed

  The FRB has announced the assessment of a Civil Money Penalty in the amount of $3,850 against the First Farmers Bank and Trust, Converse, Indiana. The consent Order of Assessment resulted from alleged violations of Reg H and the National Flood Insurance Act. FRB Order 4/23/03

• OCC Revises Audit Handbook

  The OCC has published a revision to its "Internal and External Audits" handbook which clarifies the expectations of the OCC regarding national bank audits. The update includes changes resulting from the Sarbanes-Oxley Act, new SEC rules and regulations, and the revised "Interagency Policy Statement on Internal Audit and Its Outsourcing". Handbook Introduction   Supplemental Examination Procedures    Appendixes 4/23/03

• Error In Briefing

  In the text of yesterday's Compliance briefing article titled, "BSA Compliance Subject of Written Agreement", the bank involved was misidentified as Pioneer Bank of Denver, Colorado. The correct name of the bank is Premier Bank. BankersOnline.com regrets the error and any confusion it may have caused. 4/23/03

• Help Your MSB Customers

  If you have customers which are Money Services Businesses, you may want to pass along notice to them that FinCEN is making available through its Web site an order form for free materials to help Money Services Businesses understand and comply with new federal laws and regulations on money laundering. FinCEN Order Form 4/23/03

• Double Taxation of Corporate Dividends

  Learn the view of the Treasury Department on this hot topic from the comments of Deputy Assistant Secretary Zerzan before a meeting of the Vineland, New Jersey Chamber of Commerce. He noted that currently the United States is one of only three countries in the developed world that treats dividends as fully taxable. Treasury JS-208 4/23/03

• BSA Compliance Subject of Written Agreement

  The FRB announced a Written Agreement with Premier Bank of Denver, Colorado. The bank is required to establish adequate BSA internal controls, arrange for independent compliance testing, designate a qualified officer responsible for BSA compliance, and conduct regular employee training. In addition, the bank is to retain the services of an independent accounting firm to conduct a complete forensic audit of the bank's BSA compliance since August 1, 2002. FRB Enforcement 4/22/03

• Financial Holding Company List Update

  The FRB has released an update of its Financial Holding Company List which contains those bank holding companies that have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act. FRB FHC 4/22/03

• FedACH Services Online

  The FRB has announced it is now possible to use the web to track, research and account for an institution's FedACH activity. Starting May 19, 2003, receiving depository financial institutions will also have the ability to return ACH payments and forward change information by way of FedLine for the Web. Operating Circular 4 is being amended effective May 18, 2003. to accommodate the changes. FRB Services FRB Operating Circular 4 4/22/03

• Greenspan Cancer Test Negative

  FRB Chairman Greenspan is being treated for an enlarged prostate, but tests were negative for prostate cancer. He plans to resume work later this week. FRB PR 4/22/03

• April OCC Interpretations and Actions Online

  The OCC has announced that the April 2003 issue of the Corporate Applications report is available online. The report covers Interpretive Letters, No-Objection Corporate Decisions, CRA Decisions and Conditional Approvals.OCC 4/21/03

• Treasury 2002-2003 Priority Guidance Plan Updated

  Treasury has announced the Third Quarterly Update of its 2002-2003 Priority Guidance Plan. The plan is updated to reflect additional guidance that Treasury intends to publish during the plan year. The update contains 45 additional guidance items. Treasury PR Guidance Plan 4/21/03

• OCC Announces 16 Enforcement Actions

  Sixteen Enforcement Actions were announced by the OCC involving five banks and seven individuals. Civil money penalties ranging from $2,000 to $20,000 were assessed. The largest amount was imposed against a loan officer who was also banned from banking for transferring over 2,200 customer loan files via an unsecured Internet connection to a third party. For more information on that matter see our BOL Article, "InfoSec Violations Result in Ban from Banking"   OCC NR 2003-31 4/18/03

• 48 CRA Evaluations Released

  The OCC has released the CRA evaluations for forty-eight national banks. Of the banks evaluated, seven were rated outstanding and forty-one received a satisfactory rating. OCC NR 2003-32 4/18/03

• FDIC Corporate Sector Roundtable

  The FDIC Corporate Sector Roundtable will be held on April 24, 2003, at the JP Morgan Chase Conference Center in New York City. Topics to be discussed include: where we are in the corporate credit cycle; the status of previously troubled industry sectors; and predictions as to which sectors may lead the recovery or experience a new round of problems. FDIC Notice041703 4/18/03

• HOEPA APR Reference Rates for May Released

  The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in May 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, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rates   FRB Weekly Rates 4/17/03

• FDIC FIL about OFAC Change

  The Department of the Treasury's Office of Foreign Assets Control has updated its list of approved service providers to Cuba. FDIC FIL-28-2003 4/17/03

• Counterfeit Cashier's Checks Special Alert

  The Federal Deposit Insurance Corporation has announced that counterfeit cashier's checks drawn on Pioneer Bank, Baker City, Oregon, are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 4/17/03

• Regulatory Reorganization, Predatory Lending and Preemption

  Learn the views of Comptroller Hawke regarding these important issues from his remarks before the Exchequer Club. He observed the current bank regulatory structure offends all of our aesthetic and logical instincts, but it works. He also indicated the OCC is currently reviewing the applicability to national banks of a state law regarding predatory lending that has been determined by the OTS to not apply to federally chartered saving institutions. Speech    4/17/03

• Money Smart Welcomes DeKalb County Georgia

  The FDIC announced that the DeKalb County Georgia First Accounts program will utilize the Money Smart as the curriculum to educate consumers to improve their ability to make informed choices about financial matters and effectively manage their personal finances. FDIC MS-09-2003 4/17/03

• FFIEC 2002 Annual Report Available Online

  The FFIEC has made its 2002 Annual Report available on its Web site. FFIEC 2002 Annual Report     Other FFIEC Reports 4/17/03

• Proposed AML Action Against Nauru

  FinCEN has announced a notice of proposed rulemaking that would require U.S. financial institutions to terminate correspondent accounts involving Nauru financial institutions. FinCEN PR 68FR18917 4/16/03

• Ukraine's ML Designation Rescinded

  FinCEN has rescinded the designation of the Ukraine as a Primary Money Laundering Concern. However, the existing guidance issued by FinCEN or obligations arising under the Bank Secrecy Act with respect to accounts and transactions involving Ukraine are still in effect. Furthermore, Ukraine remains on the non-cooperative countries and territories list of the Financial Action Task Force. FinCEN PR 4/16/03

• OFAC Change FIL

  The FDIC has issued a FIL notifying state-chartered banks about the March 27 additions to the OFAC list of Specially Designated Narcotics Traffickers. [The OFAC change was previously announced on BOL.] FDIC FIL-27-2003 Attachment 4/16/03

• Additional Terrorism Risk Insurance Regulations Announced

  The Treasury Department has announced the second set of regulations under the Terrorism Risk Insurance Act of 2002. The regulations address the disclosure requirements, the "make available" requirements, and the participation of state residual market insurance entities and state workers' compensation funds under the Act. Treasury PR   
  Terrorism Risk Insurance Program 4/16/03

• FRB G.17 Report Released

  The FRB has released the April 15 edition of the G.17 Industrial Production and Capacity Utilization Report. FRB G.17 4/16/03

• Marketing to Minority Customers Discussed

  Comptroller Hawke, in a presentation before the Consumer Bankers Association, noted that that the banks that have been most successful in minority communities are those that took time to research the market and to develop local partnerships. He also observed that banks should not underestimate the willingness of low-income and minority customers to obtain banking services electronically.
  OCC NR2003-29   Speech 4/16/03

• FDIC Advisory Committee To Hold Meeting

  The FDIC announced that meeting of the FDIC Advisory Committee on Banking Policy will be held on April 22 at the FDIC's Seidman Center in Arlington, Virginia. Presentations involving issues affecting the FDIC's regional and field structure; effective supervision and capital regulation; and the ongoing Future of Banking Study will be discussed at the meeting which is open to the public. FDIC PR33-2003    Advisory Committee Information 4/16/03

• State Profiles From FDIC

  The FDIC has released the Spring 2003 update of banking and economic conditions for each state.
  FDIC Profiles 4/16/03

• OFAC Civil Penalties Revealed

  OFAC has made its weekly release regarding OFAC violations and the resulting civil penalties or informal settlements. The only bank listed, the State Bank of India, was cited with a Yugoslavian funds transfer violation resulting in a $5,500 settlement. (For an article about the more extensive penalties announced the prior week, see BOL's article "Lessons from OFAC Civil Penalties") OFAC Penalties 4/15/03

• Revised OCC Manuals Available Online

  The OCC has revised the "Change in Bank Control" and "Branch Closings" booklets in the Licensing Manual series and placed them on the OCC Web site. Change in Bank Control     Branch Closings 4/15/03

• New York City Joins Money Smart

  The FDIC has announced that New York City has join the Money Smart Alliance Program and the Office of the City Comptroller is hosting Train-the-Trainer workshops for volunteer instructors. FDIC MS-088-2003 4/15/03

• OCC Issues Interim Rule to Permit National Banks to make any Class of Licensing Filings Electronically

  Its purpose is to facilitate the expansion of the OCC's e-Corp program. The e-Corp program, which began as a pilot project to enable participating national banks to make certain types of licensing filings electronically, has been made available to all national banks through the OCC's National BankNet web site. The rule furthers the OCC's objectives of reducing regulatory burden for national banks and improving the agency's efficiency in processing filings through increased use of electronic technology. 68FR17890 (txt) 68FR17890 (pdf) 4/14/03

• Tutorial on LOMAs and LOMR-Fs

  On FEMA's Web site, you can now access a tutorial series that explains the Letter of Map Amendment (LOMA) and Letter of Map Revision Based on Fill (LOMR-F) application processes, including all necessary forms and information. There is also an online tool to complete portions of the required forms for single-lot/structure requests. LOMA / LOMR-F Tutorial Series 4/14/03

• Comment Online On FRB Proposals

  The FRB has issued for comment a proposal to extend for three years the following reports: Report of Transaction Accounts, Other Deposits, and Vault Cash (FR 2900); Annual Report of Total Deposits and Reservable Liabilities (FR 2910a); Report of Repurchase Agreements (RPs) on U.S. Government and Federal Agency Securities with Specified Holders (FR 2415); Monthly Survey of Industrial Electricity Use (FR 2009a,b,c); without revision: Allocation of Low Reserve Tranche and Reservable Liabilities Exemption (FR 2930/2930a); Report of Foreign (Non-U.S.) Currency Deposits (FR 2915); and the discontinuation of: Report of Certain Eurocurrency Transactions (FR2950/2951). The closing date for comments is June 17, 2003 and comments may be submitted online. Proposal    Electronic Comment Form 4/14/03

• FinCEN's Anti-Terrorism Activities

  Learn about how the role of FinCen has expanded to combat terrorism from the comments of Director Sloan before Subcommittee on Oversight and Investigations. He observed that the financial channels of terrorism have created an urgency for seeking greater cooperation among governments, law enforcement, regulators and regulated industries to share and disseminate information. Speech 4/14/03

• IRS To Handle BSA FBAR Filing Compliance

  The IRS and FinCEN announced an agreement under which FinCEN delegated its BSA enforcement authority for Foreign Bank and Financial Account reporting to the IRS. IRS Release 4/11/03

• FFIEC 002 Report Form Online

  The March 2003 FFIEC 002 Report of Assets and Liabilities of U. S. Branches and Agencies of Foreign Banks and the Instructions for Preparation have been placed on the FFIEC Web page. FFIEC 002     Instructions 4/11/03

• How Did Banks Post Record 2002 Earnings?

  Banks posted record earnings of more than $100 billion in 2002. FDIC Chairman Powell provides his insight on how this was accomplished in spite of a sluggish economy in remarks before the Federal Reserve Bank of Atlanta. Speech 4/11/03

• More on Basel II

  Learn the implications of Basel II for second tier and community banks from a presentation by FRB Governor Olson at the 2003 Banking Institute, Center for Banking and Finance, of the University of North Carolina. He noted it would be as inappropriate to require the smallest banks to adopt techniques designed for megabanks as it would to limit the largest banks on the basis of the capacity and capability of the smallest.Speech 4/11/03

• FDIC's First Quarter Activities Revealed

  The FDIC has published its fourth Letter to Stakeholders, which reports priorities and activities for the first quarter of 2003. The FDIC's three priorities for 2003 - stability, sound policy, and stewardship are addressed.FDIC FIL-26-2003     Letter 4/11/03

• Importance of Bond Auctions Discussed

  The important role the auction process plays in reducing the cost of borrowing was explained by Treasury Deputy Assistant Secretary Bitsberger in remarks to the Bond Market Association. He noted that on a daily basis approximately $350 billion in Treasuries change hands and last year $3.8 trillion in securities were auctioned. Treasury JS-173 4/11/03

• The Ugly Faces of Identity Theft

  The consequences this crime has on its innocent victims are discussed by Treasury Assistant Secretary Abernathy at the 2003 Banking Institute of the University of North Carolina School of Law Center of Banking and Finance. He remarked that a crook can take a person's good name and use it to open new accounts that they know nothing of, with the statements going to places they have never been, so that weeks and months pass without their knowledge of the fraud. In addition, it can take victims as many as 175 man hours to clear their name and records. Treasury JS-177 4/11/03

• Federal Register Publishes Business Continuity Planning Post-September 11

  Learn the recommendations of the FRB, OCC and SEC in the ""Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" issued jointly by the agencies. [This was previously announced on BOL] 68FR17809 (txt) 68FR17809 (pdf) 4/11/03

• FinCEN Publishes AML Proposal for RE Closings and Settlements

  Under the USA PATRIOT Act, the definition of "financial institutions" subject to the AML program requirement was expanded to include persons involved in real estate closings and settlements. In this advanced notice of proposed rulemaking, FinCEN solicits comments relating to applying the AML program requirement to such activities. 68FR17569 (txt) 68FR17569 (pdf) 4/10/03

• FDIC Updates Call and Thrift Reports Instructions

  The FDIC has published a March 2003 update to the Reports of Condition and Income Instructions for report forms FFIEC 031 and 041. FDIC Resources    Call Report Instruction Book    Forms 4/10/03

• FRB Basel II Update

  The Basel Committee has proposed the implementation of Basel II to replace the current Basel I. Learn the views of FRB Vice Chairman Ferguson regarding the status of the proposal and where it is headed. In comments before the Risk Management Association's Conference on Capital Management, he remarked that the FRB concluded that the greatest potential benefit of Basel II was found in the most advanced versions--the Advanced IRB for credit risk and the AMA for operational risk. Speech 4/10/03

• FDIC CRA Examination Results

  The Federal Deposit Insurance Corporation has issued its monthly list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in January 2003. FDIC PR3103    FDIC CRA List 4/9/03

• Credit Card Issuer Fraud Settlement

  The FTC announced that Robert Barr and Candace Rodriguez, principals of Westcal Equipment, doing business as Pioneer First and PF Member Services, Inc., have agreed to settle federal charges that they engaged in fraudulent business practices. The defendants advertised nationally on cable TV the Pioneer First Platinum credit card which guaranteed a $5,000 credit limit and 0 percent interest for 12 months to anyone who was a legal U.S. resident, at least 18 years old, and had a checking account. Applicants were required to pay a $ 189 fee for a catalog card that did not function as a credit card. FTC Release    Order 4/9/03

• Business Continuity Planning Post-September 11

  Learn the recommendations of the FRB, OCC and SEC in the ""Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" issued jointly by the agencies. Paper - FRB    OCC    SEC   FRB PR    OCC Release 2003-28    OCC Bulletin 2003-14    SEC PR2003-45 4/9/03

• Act Authorizes Check Processing Technology

  Congress is considering the Check Clearing for the 21st Century Act which removes existing legal barriers to the use of new technology in check processing. Learn the opinion of the FRB in the testimony of Vice Chairman Ferguson before a House subcommittee. He indicated the Act will improve the efficiency and reduce the cost of the nation's check collection system while providing better services to bank customers. Testimony 4/9/03

• InfoSec Compromised - Bankers Barred and CMP Assessed

  The OCC has permanently barred two former bank officers from banking and assessed civil money penalties of $20,000 and $10,000. James Earl Smith and Vicki Boutilier, who were officers of Grand Valley National Bank, Grand Junction, Colorado, emailed over 2,220 customer loan files to a third party. In addition to the permanent removals and civil money penalties, if Mr. Smith or Ms. Boutilier apply for a job where they would be handling NPI they are required to disclose the enforcement action to future employers. Read our article: "InfoSec Violations Result in Ban from Banking"    OCC NR 2003-27    Smith Consent Order    Boutilier Consent Order 4/8/03

• OFAC Change Bulletin

  The Treasury issued an OFAC change designating KHAN RESEARCH LABORATORIES, Pakistan, as subject to the import ban of Weapons of Mass Destruction Trade Control Regulations and made available a redacted letter on the OFAC Web site. The information has been placed on the BOL OFAC page. Treasury 20030407 4/8/03

• FDIC Issues Alert in Stolen $1,000,000 Checks

  The Federal Deposit Insurance Corporation announced that six $1,000,000 official checks drawn on Interbank of New York, New York, New York, and payable through Huntington National Bank, Columbus, Ohio, were stolen. In addition, counterfeit cashier's checks drawn on both the Bank of Mount Hope, Mount Hope, West Virginia, and the Affinity Federal Credit Union, Basking Ridge, New Jersey, are in circulation. The information has been added to the BOL Alert & Counterfeits page. 4/8/03

• February G.19 Report Released

  The Federal Reserve Board has issued the February 2003 G.19 Consumer Credit Report which indicates that consumer credit rose at an annual rate of 1 percent in February following an 8-1/2 percent increase in January. FRB Release 4/8/03

• Business Method Patents

  Learn about the public policies issues regarding business method patents from a presentation by FRB Vice Chairman Ferguson before the 2003 Financial Markets Conference in which he discussed a patent that was recently issued for a "system and method for conducting web-based financial transactions in capital markets." Speech 4/8/03

• OCC Quarterly Journal Online

  The June, September, and December 2002 issues of the Quarterly Journal are now available online and contain information ranging from the "Condition and Performance of Commercial Banks" to staff interpretations. Quarterly Journal 4/8/03

• OFAC Civil Money Penalties Revealed

  The Office of Foreign Assets Control has published its first set of OFAC civil penalties data on the Internet. This was done pursuant to a rule recently adopted by OFAC which calls for publication of penalty information every two weeks. [This was previously announced on BOL] OFAC 4/7/03

• FinCEN 314(a) Response

  FinCEN has posted on its Web site their response to the BOL 314(a) Information Request letter. [This was previously announced on BOL] FinCEN Response 4/7/03

• Online FFIEC March 31 Reporting Forms

  The FFIEC has made the following March 31, 2003 Reporting Forms available online: Form 009, Form 009a, Form 031 and Form 041. Form 009,    Form 009a,    Form 031,    Form 041,    Instructions    4/7/03

• FTC Fights Pretexting

  The FTC's Annual Report to Congress features details of four enforcement actions filed against companies engaged in "pretexting" (obtaining a consumer's financial information by false pretenses). FTC Annual Report 4/7/03

• Regulators Clarify GLB Section 305 Disclosures

  Responding to a request from the American Bankers Insurance Association and the American Bankers Association, the regulators indicate the disclosures required by section 305 of the Gramm-Leach-Bliley Act are not mandatory with respect to renewals of insurance policies sold prior to October 1, 2001. FDIC FIL-25-2003 4/7/03

• CRA Investment Guide

  The FDIC has announced the issuance of a Community Development Investment Guide which provides information on permissible and CRA-qualified investments for financial institutions. Guide 4/7/03

• Greenspan Discusses Market Economics

  Chairman Greenspan spoke before the 2003 Financial Markets Conference of the Federal Reserve Bank of Atlanta. He commented on the importance of state protection of individual rights to own property and the ways information technology has improved the ability of businesses to identify and address economic imbalances. Speech 4/7/03

• Check Truncation Act Creates "Substitute Check"

  Congress is conducting hearings on the proposed Check Truncation Act. Learn about some of its provisions from the testimony of FRB Vice Chairman Ferguson. He noted, "The proposed legislation facilitates check truncation by creating a new negotiable instrument called a "substitute check," which would permit banks to truncate the original checks, to process the check information electronically, and to print and deliver substitute checks to banks and bank customers that want to continue receiving paper checks." FRB Testimony 4/04/03

• Greenspan Stresses Importance of Financial Education

  FRB Chairman Greenspan stated, "Fostering education that will enable individuals to overcome their reluctance or inability to take full advantage of technological advances and product innovation in the financial sector can increase economic opportunity", during a presentation before the JumpStart Coalition's Annual Meeting in Washington, D.C. Chairman's Speech 4/04/03

• FTC Combats Identity Theft

  The FTC is utilizing many different approaches to combat identity theft ranging from consumer education to bring enforcement actions against entities that fail to protect personal information. Learn more from the testimony of FTC officials which summarize the actions of the agency regarding identity theft. FTC PR ,     Presentation 1    Presentation 2 4/04/03

• Reg Z Commentary Changes Published in Federal Register

  The revisions 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. [The change was previously announced on BOL] 68FR16185 (txt) 68FR16185 (pdf) 4/03/03

• FinCEN Responds To BOL 314(a) Letter

  FinCEN Director James Sloan directly responded to the letter BOL sent to him last week containing comments and suggestions from BOL Users regarding 314(a) search requests. His response addressed questions ranging from formatting issues to the method of transmission of the requests. Among the items of interest to all financial institutions was his statement, "FinCEN is in the process of completely redesigning the 314(a) system to ease the burden on the financial institutions." BOL Letter,      FinCEN Response 4/03/03

• Counterfeit Checks Special Alert Issued by FDIC

  The Federal Deposit Insurance Corporation has announced that counterfeit cashier's checks drawn on Lorain National Bank, Lorain, Ohio and counterfeit official checks drawn on Alpine Bank, Rifle, Colorado and The Columbia Bank, Ellicott City, Maryland are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. FDIC SA-18-2003 4/03/03

• OFAC Change FIL

  The FDIC put out an FIL notifying state-chartered banks about the March 21 changes to the OFAC SDN list. [The OFAC change itself was previously announced on BOL] FDIC FIL-24-2003 4/03/03

• Considering the Elimination of Mexican Remittance Fees?

  Read the comments of a Treasury Official applauding Bank of America's announcement that it has reduced its remittance fees for non-customers to send money to Mexico. Treasury JS-155 4/03/03

• House Passes FDIC Reform Act - Regulators' Comments

  FDIC Chairman Powell Treasury stated, "We're pleased the House resoundingly passed a deposit insurance reform bill today that is good for the American people, good for our country's banking industry and good for the FDIC." Treasury Under Secretary Fisher also supported the action and commented, "We share the goals of improving the operation of the system to ensure its long-term strength and soundness, promoting the important role of banks in our nation's economic growth." FDIC PR 30-2003     Treasury JS-154     4/03/03

• G.15 Foreign Exchange Rates For March 2003

  The FRB has issued the March 2003 edition of the monthly G.15 Foreign Exchange Rates Statistical Release. FRB Release 4/03/03

• Sarbanes-Oxley Compliance Required To List Stock

  The Securities and Exchange Commission has adopted rules directing the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that is not in compliance with the audit committee requirements established by the Sarbanes-Oxley Act of 2002. SEC PR 2003-43 4/2/03

• Race Discrimination Fair Lending Models Reviewed

  An OCC study on race discrimination in mortgage lending utilized information obtained during fair lending examinations to replicating a bank's underwriting process. It found the use of variables customarily omitted from fair lending models would have affected estimates of the effect of race on mortgage decisions, predictions of the probability of denial, and identification of outliers for manual review. OCC Workpaper 4/2/03

• FFIEC Names New Officers

  OTS Director James Gilleran has been named Chairman and NCUA Chairman Dennis Dollar has been named Vice Chairman of FFIEC.
  FinCEN PR 4/2/03

• FDIC Transmits 3/31/03 Call Report Materials

  The FDIC has transmitted materials relating to the upcoming March 2003 Call Reports. Certain revisions to the Call Report are scheduled to take effect this quarter. The principal changes involve the reporting of insurance-related income, the transactional capability of bank Web sites, credit enhancements for securitizations, accrued fees and finance charges on credit cards at banks with significant credit card activity, the fair values of derivatives at small banks with such contracts, and allocated transfer risk reserves. For the March 31, 2003, report date only, banks may report a reasonable estimate for any new or revised item for which the requested information is not readily available. FDIC FIL-23-2003 4/1/03

• Contact Persons for PATRIOT Act Section 314(a)

  Beginning this quarter, the banking agencies will collect on the Call Report contact information for the persons who are in charge of your bank's anti-money laundering searches under Section 314(a) of the USA PATRIOT Act. FDIC FIL-23-2003 4/1/03

• FRB Rounds Up Personal Financial Resources

  The Federal Reserve Board launched a new Web site which brings together resources from various Federal Reserve District Web sites dealing with personal financial matters. Subjects range from economic literacy to protection against fraud and scams.FRB Personal Financial Information 4/1/03

• FRB Financial Services Updates Web Site

  On the updated Web site for FRB Financial Services, they have streamlined common tasks and provided more intuitive navigation. They have also updated the look to reflect their commitment to providing reliable and consumer-focused financial service.FRB Financial Services 4/1/03

• FRB Agricultural Finance Databook Updated

  The Federal Reserve Board has released the March 2003 E.15 Agricultural Databook which contains farm loan characteristics, selected quarterly reports of condition, credit conditions and land values.FRB Release 4/1/03

• More Regulatory Relief Act Information

  Learn more about the Financial Services Regulatory Relief Act of 2003 from the testimony of OCC First Senior Deputy Comptroller and Chief Counsel Julie Williams before the House Subcommittee on Financial Institutions and Consumer Credit.Testimony 4/1/03