• FRB and Treasury Issue Joint Final Rule Governing Merchant Banking Investments

  As earlier reported by the FRB and Treasury, the final rule implements provisions of the Gramm-Leach-Bliley Act that permit financial holding companies to make investments as part of a bona fide securities underwriting or merchant or investment banking activity. 66FR8465 (1/31/01)

• OTS Releases Enforcement Actions

  The OTS Released October, November and December Enforcement Actions. (1/31/01)

• FDIC Makes Public December 2000 Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December 2000. No administrative hearings are scheduled for February 2001. FDIC: PR-8-2001 (1/31/01)

• FDIC Issues Alert on Stolen Cashier's Checks and Money Orders

  The FDIC has been informed by the GreenPoint Bank, Brooklyn, New York, that a number of the bank's cashier's checks and money orders have been stolen from one of its branches. FDIC:FIL-8-2001 (1/31/01)

• A memorandum has been issued on behalf of President Bush that affects recently passed regulations which have not yet been published in the Federal Register, as well as published final rules which have not yet taken effect. Regulations which have been published but have not taken effect are to have their effective date temporarily postponed for 60 days. Those that have been sent to the Federal Register but haven't yet been published are to be temporarily withdrawn from publication. There is an exception for regulations promulgated pursuant to statutory or judicial deadlines. Also, if the appropriate head of the agency signs off on it, it can be published or put into place. 66FR7701 (1/30/01)

• The OCC is proposing to amend its rules governing investment securities

  The proposed revisions to the investment securities regulations incorporate the authority to underwrite, deal in, and purchase certain municipal bonds that is provided to well capitalized national banks by the Gramm-Leach-Bliley Act. 66FR8178 OCC 2001-5 (1/30/01)

• FFIEC announces the publication of "A Guide to CRA Data Collection and Reporting

  The CRA regulations generally require the annual reporting of data on small business, small farm, and community development lending by independent commercial banks and savings associations having assets of $250 million or more. The guide can be accesses at: http://www.ffiec.gov/cra. FFIEC Press Release (1/30/01)

• The NCUA Board is modifying its security program requirements to include security of member information

  The NCUA Board is issuing ``Guidelines for Safeguarding Member Information'' to implement certain provisions of the Gramm-Leach-Bliley Act. 66FR8152 (1/30/01)

• OCC Proposes Updates and Revisions to Regulations

  The OCC is proposing to amend 12 CFR parts 1, 7, and 23 to update and revise the OCC's regulations to keep pace with developments in the law and in the national banking system. OCC:NR 2001-10 (1/30/01)

• FDIC Creates Privacy Rule Handbook to Assist Banks with Compliance

  The Privacy Rule Handbook was produced by the FDIC to help financial institutions comply with the final rule governing the privacy of consumer financial information and implement effective consumer privacy policies. FDIC:FIL-3-2001 and PR-7-2001
  (1/26/01)

• A Day of Firsts at the NCUA

  An historic event was witnessed by an overflow crowd in the Boardroom of the NCUA as Yolanda Townsend Wheat presided over the first NCUA monthly Board meeting of 2001. Not only was it the first NCUA Board meeting of the year, more significantly Wheat becomes the first woman and the first minority of African-American and Hispanic descent to hold the position of Chairwoman of the Board in the 20-year history of the NCUA. NCUA Press Release (1/26/01)

• FRB Issues Interim Rule to Revise its Rule Regarding Equal Opportunity

  The FRB has revised and reissued its Rules Regarding Equal Opportunity (rule) in order to continue its practice of conforming that rule as closely as possible to the ``Federal Sector Equal Employment Opportunity,'' regulation of the Equal Employment Opportunity Commission (Commission), which the Commission revised effective November 9, 1999. 66FR7703 (1/25/01)

• OCC Releases CRA Evaluations for 24 National Banks

  The OCC released a list of CRA performance evaluations that became public during the period of
  December 15 through January 14. OCC:NR 2001-9 List of Evaulations (1/25/01)

• OCC Announces New Electronic Interpretations and Actions

  (1/25/01)

• OCC Issues Advisory to Help Prepare Banks for the Implementation of the New Privacy Rules

  The advisory is to help banks prepare for the implementation of the new Privacy of Consumer Financial
  Information regulation, 12 CFR 40. The regulation becomes fully effective on July 1, 2001, and it affects all national banks, large and small, including most of their subsidiaries. OCC:AL 2001-2. The OCC also issued a Privacy Preparedness Questionnaire that assists banks in assessing their existing information practices. (1/24/01)

• Basel Committee on Banking Supervision Proposes Revisions to 1988 Basel Capital Accord

  The FRB, FDIC, and OCC offer summary and discussion issues on new Basel Capital Accord (1/24/01)

• OTS Publishes Quarterly Loan Servicing Market Data Survey

  (1/24/01)

• Prior to leaving office, President Clinton issued an Executive Order that revised and expanded the sanctions applicable to Yugoslavia and the Republic of Serbia. The OFAC list has been changed accordingly. OFAC (1/23/01)

• If your institution is subject to HMDA, you won't want to miss the opportunity to comment on the extensive revisions that have been proposed to Regulation C. Lucy Griffin provides guidance on how to
  comment and specific issues for comment and offers a sample comment letter to serve as an example. Get all three by clicking here. (1/23/01)

• Regulators Issued Guidance on Enhanced Scrutiny for Transactions That May Involve the Proceeds of Foreign Official Corruption

  The FRB, OCC, FDIC, OTS and Treasury issue guidance to banks on accounts held by senior foreign officials and closely related persons or entities that may involve proceeds from corruption. (1/23/01)

• Comptroller Hawke Given Treasury's Highest Honor

  Comptroller of the Currency John D. Hawke, Jr. received Treasury’s highest honor, the Alexander Hamilton Award, in a ceremony Thursday at the Department of Treasury. The award was presented by Treasury
  Secretary Lawrence H. Summers and honored Mr. Hawke for setting “an enduring standard of excellence.” OCC:NR 2001-8 (1/22/01)

• FRB And Treasury Announce Final Rule on ALternative to Rated Debt Requirement

  The FRB and Treasury announced their approval of a final rule establishing the alternative criteria that certain large banks may satisfy in order to control a financial subsidiary under the Gramm-Leach-Bliley Act. Joint Press Release (1/22/01)

• FDIC Publishes Revisions to the 2001 Call Report from FFIEC

  Most of these changes will take effect on the March 31, 2001, report date, the FFIEC has deferred the
  implementation dates for the collection of new data on securitizations until June 30, 2001, and for the new trust activities schedule until December 31, 2001. FDIC:FIL-5-2001 (1/22/01)

• FDIC, DOL Introduce Money Smart Program

  The FDIC and the Department of Labor announced a joint initiative, called Money Smart, which offers basic financial education for the first time to people taking part in Welfare-to-Work and Workforce Investment Act programs nationwide. PR-6-2001 (1/22/01)

• FDIC Proposed Capital Rule for Nonfinancial Equity Investments

  The FDIC requested public comment on a proposed rule governing the regulatory capital treatment for equity investments in nonfinancial companies held by FDIC-supervised banks. FDIC:PR-5-2001 (1/22/01)

• NCUA Issues Prohibition Orders

  NCUA Press Release (1/19/01)

• FRB Distributed $25.3 Billion to the Treasury During 2000

  Preliminary figures indicate that the Federal Reserve Banks distributed approximately $25.3 billion of their $34.0 billion total income to the Treasury during 2000. In addition, $3.75 billion was transferred from surplus to the Treasury in May 2000, as required by statute. FRB Press Release (1/19/01)

• Agencies Release Revised Capital Proposal for Nonfinancial Equity Investments

  The FRB and OCC announced proposed new rules governing the regulatory capital treatment for equity investments in nonfinancial companies held by banks, bank holding companies and financial holding companies. (1/19/01)

• OCC Issues Corporate Manual on Internet Banking

  The booklet is the last of four booklets that consolidate policies, procedures, and practices applicable to organizations and institutions seeking entry into the national banking system. OCC:NR 2001-6. Corporate Manual on Internet Banking (1/19/01)

• OTS Director Seidman Offers a Flexible Approach to Holding Company Supervision

  Explaining to the Exchequer Club that holding company supervision “is
  becoming increasingly important as we adapt our supervisory processes to meet new practical and legal
  challenges arising from the evolution of the financial services industry,” Director Ellen Seidman of the OTS outlined the Agency’s five-part strategy for supervising thrift holding companies. OTS 01-03 (1/18/01)

• Agencies Adopt Guidelines for Customer Information Security

  The OCC, FDIC, FRB and OTS have sent to the Federal Register joint guidelines for safeguarding confidential customer information. The guidelines implement section 501(b) of the
  Gramm-Leach-Bliley Act (GLBA), and will be effective on July 1, 2001. (1/18/01)

• OCC Announces 14 New Enforcement Actions

  The OCC announced 14 new enforcement actions taken against national banks and individuals
  currently and formerly affiliated with national banks. OCC: NR 2001-2 (1/17/01)

• OCC Issues Advisory on Financial Literacy

  This advisory highlights the range of financial literacy activities in which banks have participated that have been effective in enhancing consumer financial skills and extending the reach of banks' products and services to underserved or unbanked markets. OCC: AL 2001-1 (1/17/01)

• Agencies To Accept Comments on Basel Proposal To Amend Capital Adequacy Framework

  The FRB, OCC and FDIC will accept public comments on a major proposal by the Basel
  Committee on Banking Supervision to amend the 1988 international capital adequacy framework. (1/17/01)

• FRB Issues Guidance on Enhanced Scrutiny for Transactions That May Involve the Proceeds of Foreign Official Corruption

  The Money Laundering and Financial Crimes Strategy Act of 1998 requires the federal
  government to develop a national strategy to combat money laundering. Under the Act, the strategy is
  to be developed through consultation with various federal and state law enforcement and bank
  regulatory agencies, including the Board. In addition, the law requires that annual reports be submitted to Congress detailing the steps the government proposes to take with regard to its anti-money
  laundering efforts. FRB Press Release (1/17/01)

• FRB Changes its Career Enhancement Programs

  The FRB is instituting changes to its career enhancement programs for
  examination and supervisory staff to provide more opportunities for continuing professional growth and
  development. While the System has a well established training program, the rapid pace of change in the financial services industry calls for offering continuous education and career development that go beyond the traditional classroom-based instruction. FRB Press Release (1/17/01)

• FRB Modifies its Capital Adequacy Standards

  The Federal Reserve has had a longstanding practice of applying its capital adequacy standards to the top tier U.S. bank holding company (BHC) owned by a foreign banking organization. The Federal Reserve is modifying this practice in light of provisions in the Gramm-Leach-Bliley Act that permit a foreign bank to be a financial holding company (FHC). FRB Press Release (1/17/01)

• FRB Makes Revisions to the Fiduciary Education Program for Banking Supervision Staff

  The FRB is adopting a new fiduciary education program for supervision staff. The program recognizes that, with the integration of specialty examinations into the overall assessment of financial institutions, all examiners need a broad understanding of specialty areas. FRB Press Release
  (1/17/01)

• OTS Publishes Info Security Guidelines

  The Office of Thrift Supervision's version of the final information security guidelines has now been published on its site. OTS:73112 (1/16/01)

• FDIC Publicizes BSA Q&A from FinCEN

  The FDIC has published guidance to make insured banks aware of FinCEN's recently published answers to frequently asked Bank Secrecy Act questions. FDIC: FIL-4-2001 (1/16/01)

• Agencies Release Recommendations of Working Group on Public Disclosure

  A private-sector working group recommended enhanced and more frequent public
  disclosure of financial information by banking and securities organizations. Joint Press Release from FRB, OCC, and SEC (1/12/01)

• FRB Amends Reg A to Reflect a Decrease in the Basic Discount Rate

  The Board of Governors has amended its Regulation A on Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank.
  66FR2211 (1/11/01)

• FRB and Treasury Announce Final Rule on Merchant Banking Activities

  The rule, effective February 15, 2001, implements provisions of the Gramm-Leach-Bliley Act. The FRB and Secretary believe it permits a "two-way street" between securities firms and banking organizations while, at the same time, giving effect to the statutory limitations and framework adopted by Congress to help maintain the separation of banking and commerce and ensure the safety and soundness of depository institutions. Joint Press Release (1/11/01)

• FDIC Simplifies Examination Report for Well-Managed Small Banks

  The FDIC began using a streamlined format for reporting examination findings at well-managed
  small banks supervised by the agency. The new system will reduce paperwork and help the FDIC allocate
  more resources toward institutions that pose the highest risks. FDIC:PR-2-2001 and FDIC:FIL-2-2001 (1/11/01)

• OTS Publishes Applications for New Thrift Charters Detail Report

  (1/11/01)

• Regulators Publish Final Rule to Implement the CRA Sunshine Provisions

  These provisions require NGEPs, insured depository institutions, and affiliates of insured depository institutions that are parties to certain agreements that are in fulfillment of the Community Reinvestment Act of 1977 to make the agreements available to the public and the appropriate agency and file annual reports concerning the agreements with the appropriate agency. These provisions
  were contained in section 711 of the Gramm-Leach-Bliley Act. 66FR2051 (1/10/01)

• President Clinton Appoints Yolanda Townsend Wheat Chairman of the NCUA Board

  NCUA Press Release (1/10/01)

• The OTS published the Thrift Financial Report Instruction Manual.

  (1/9/01)

• OTS Releases December National CRA Ratings

  The OTS issued savings associations' Community Reinvestment Act performance evaluation ratings that became available in December 2000. OTS 01-01
  (1/9/01)

• FRB Names New Members to its Consumer Advisory Council

  The FRB named ten new members to its Consumer Advisory Council for three-year terms and designated a new Chair and Vice Chair of the Council for 2001. FRB Press Release (1/9/01)

• FDIC Issues Final Rule to Implement provisions of GLB Governing Investments

  As reported Jan. 5th in the Federal Register The FDIC adopts a streamlined certification process for insured state nonmember banks to follow before they may conduct activities as principal through a financial subsidiary. State nonmember banks will self-certify that they meet the requirements to carry out these activities, which will allow
  the banks to conduct the new activities immediately. FDIC: FIL-1-2001 (1/9/01)

• FDIC Issues January List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in October 2000.
  PR-1-2001 (1/8/01)

• OCC Proposes to Amend its Regulation to Codify OCC Interpretations on National Bank Multi-State Trust Operations

  As previously reported in the Federal Register the OCC, is proposing to amend its regulations to codify OCC interpretations on national bank multi-state trust operations. The purpose of these changes is to provide enhanced guidance to national banks engaging in fiduciary activities. OCC 2001-1 (1/8/01)

• HOT NEWS!

  The regulators have reached agreement on the final version of the information security guidelines, an important component of the G-L-B privacy protections. They should be published in the near future in the Federal Register. You can access the prepublication version by clicking here. [NOTE: works best if you are using Internet Explorer as your browser.](1/5/01)

• OCC updates the Reverse Stock Split Procedures to include Texas and New York

  This guidance describes expedited review procedures for national banks to effect reverse stock splits.
  AL 2000-4 (1/5/01)

• FDIC Issues Final Rule to Implement provisions of GLB Governing Investments

  Under the final rule, the FDIC adopts a streamlined certification process for insured state nonmember banks to follow before they may conduct activities as principal through a financial subsidiary. State nonmember banks will self-certify that they meet the requirements to carry out these activities, which will allow the banks to conduct the new activities immediately. 66FR1018 (1/5/01)

• FOMC Lowers its Target for Federal Funds Rate

  The Federal Open Market Committee decided to lower its target for the federal funds rate by 50 basis points to 6 percent. FRB Press Release (1/4/01)

• FRB adopts final rule that implements the financial holding company provisions of GLBA

  This final rule replaces the interim rules governing financial holding companies that the FRB adopted previously. The final rule describes the procedures a domestic bank holding company and a foreign banking organization must follow and the capital, management, and Community Reinvestment Act requirements they must meet in order to qualify as a financial holding company. 66FR399 (1/3/01)

• FRB and Treasury are soliciting comment on interim rules

  The FRB and Treasury are soliciting comment on interim rules that would implement section 4(k)(5) of the Bank Holding Company Act and section 5136A(b)(3) of the Revised Statutes, as enacted by the Gramm-Leach-Bliley Act. The interim rules find three general types of activities to be financial in nature, and create a mechanism by which financial holding companies, financial subsidiaries of
  national banks, or others may request that the Board or the Secretary, respectively, define particular activities within one of the three categories. 66FR257 (1/3/01)

• FRB and Treasury issued joint proposal on RE Brokerage Activity

  The FRB and Treasury jointly propose to seek comment on whether to determine by rule that real estate brokerage is an activity that is financial in nature or incidental to a financial activity and therefore
  permissible for financial holding companies and financial subsidiaries of national banks. 66FR307 (1/3/01)

• President Clinton Appoints Geoff Bacino to the NCUA Board

  President Bill Clinton has named Geoff Bacino to the NCUA Board in a recess appointment effective December 29, 2000, filling the seat held by Chairman Norman E. D'Amours, whose term expired August 2, 1999. NCUA Press Release
  (1/3/01)

November 2000

FRB Issues Proposal to Expand HMDA Reporting

The FRB has published a proposal to amend Regulation C, Home Mortgage Disclosure, to increase the
amount of information that institutions report on the Loan Application Register. The number of items
reported would increase from 13 to 17 items.
Article written by Lucy Griffin on Reg C Proposal
FRB Press Release (11/30/00)

FDIC Distributes the FFIEC 004 Form

The FDIC has sent out the FFIEC 004 report that may be used to comply with the reporting requirements of Title VIII of the Financial Institutions Regulatory and Interest Rate Control Act of 1978.
FDIC: FIL-82-2000 (11/30/00)

Greenspan Issues Statement on the Death of Henry B. Gonzalez

FRB Chairman Alan Greenspan issued the following statement: I was saddened to hear of the passing of former House Banking Committee Chairman Henry B. Gonzalez.
FRB Press Release (11/30/00)

FFIEC Releases Guidance on Technology Outsourcing

The FFIEC issued guidance on financial institutions' management of risk arising from technology services supplied by outside firms. FFIEC Press Release
(11/30/00)

FDIC Issues Notice on Risk Management Of Technology Outsourcing

The FDIC, together with the other federal regulators of banks, thrifts and credit unions, issued joint guidance on managing the risk exposure an institution faces when it uses outside firms for technology.
FDIC: FIL-81-2000 (11/29/00)

Large Credit Unions Post Continued Growth

The 1,505 federally insured credit unions with assets over $50 million posted continued growth through the first nine months of 2000 according to call report data.
NCUA Press Release (11/29/00)

HMDA Heads Up!

The Federal Reserve Board has scheduled a Board Meeting for Wednesday, November 29, 2000, to consider proposing modifications to Regulation C and the HMDA LAR. In spite of the FRB's low-key announcement, this proposal promises to be a bombshell. The FRB may propose to modify the LAR to incorporate information, such as the APR, designed to identify patterns and instances of predatory lending.(11/28/00)

Agencies Urge Banks and Thrifts to Evaluate Risks with Vendors

The OCC and OTS alerted national banks and federal thrifts that the agencies have significant safety and soundness, compliance and consumer protection concerns with banks and thrifts entering into contractual arrangements with vendors to fund so-called “title loans” and “payday loans.”
OCC: NR 2000-88 and
OTS 00-99 (11/28/00)

OCC Issues Warning on Title Loan Companies

It has come to the attention of the OCC that title loan companies are approaching national banks urging them to enter into contractual arrangements to fund title loans. These arrangements also can
involve the sale to the title loan company of the loans or servicing rights to the loans. The OCC has significant safety and soundness, compliance, and consumer protection concerns with title lending and with these arrangements.
OCC: AL 2000-11 (11/28/00)

OCC Issues Advisory on Pay Day Lending

The OCC is issuing an advisory letter to ensure that any national bank that engages in payday lending does so in a safe and sound manner and does not engage in abusive practices that would increase the compliance, legal, and reputation risks associated with payday lending and could harm the bank's customers.
OCC: AL 2000-10 (11/28/00)

FDIC Publishes Enforcement Actions

The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in October. No administrative hearings are scheduled for December.
FDIC: PR-81-2000 (11/28/00)

OCC Puts Asset Management Handbook Online

The Comptroller's Handbook booklet "Asset Management" is now available on the Internet. The keystone of the Asset Management series of handbook booklets, the booklet provides an overview of the asset management business and guidance on sound risk management processes. (11/27/00)

OTS Sets Schedule for Implementing Changes to Thrift Financial Report

The OTS will phase in proposed changes to the Thrift Financial Report in response to thrift industry requests for more time to implement the changes. OTS will delay collecting information on subprime and high loan-to-value lending until September 2001, but will begin collecting consolidated financial data on savings and loan holding companies it regulates starting with the March 2001 TFR. OTS 00-98 (11/27/00)

FRB Issues Final Rule to Adjust Dollar Amount for Certain Mortgages

As reported last week, the FRB published in the Federal Register, a final rule amending the staff commentary that interprets the requirements of Regulation Z . The FRB is required to adjust annually the dollar amount that triggers requirements for certain mortgages bearing fees above a certain amount. The adjusted dollar amount for 2001 is $465. (11/27/00)

NCUA Issues Proposed Rule to Revise Regulations

The NCUA is proposing a revised regulation to categorize activities deemed to be within the incidental powers of a federal credit union. (11/27/00)

IRS Announces 2001 Standard Mileage Rates

The IRS announced the optional standard mileage rates to use for 2001 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. (11/27/00)

Pension Plan Limitations for Tax Year 2001

The IRS announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2001. (11/27/00)

FRB Announces New Internet Resource

The FRB announced a new Internet resource designed to help bankers and bank examiners apply consumer regulations to Internet banking. The Checkers Bank (TCB) is a mock online bank whose website contains violations of federal consumer protection regulations. The TCB site highlights these violations for further investigation. (11/22/00)

FRB Publishes its Annual Adjustment to Reg Z Dollar Amounts

The FRB published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount. FRB Press Release (11/22/00)

Regulators Publish Final Insurance Consumer Protection Rules

The OCC, FRB, FDIC and OTS are publishing final insurance consumer protection rules. These rules are
published pursuant to section 47 of the Federal Deposit Insurance Act (FDIA), which was added by
section 305 of the Gramm-Leach-Bliley Act (the G-L-B Act or Act). Section 47 directs the Agencies
jointly to prescribe and publish consumer protection regulations that apply to retail sales practices,
solicitations, advertising, or offers of any insurance product by a depository institution 1 or any person that is engaged in such activities at an office of the institution or on behalf of the institution. (11/22/00)

OCC's Fair Lending Examination Procedures Manual Available Online

The "Fair Lending Examination Procedures" booklet in the Comptroller's Handbook for Compliance is now available on the Web. The booklet, which supersedes "Fair Lending" booklet issued in October 1997, incorporates the Interagency Fair Lending Examination Procedures issued by the FFIEC in 1999. (11/21/00)

FDIC Seeks Comment on How to Avoid Purchasing or Investing in Predatory Mortgage Loans

The FDIC is seeking public comments on a draft staff advisory explaining how financial institutions may
avoid indirect associations with predatory lending. While the FDIC believes that very few banks are
directly engaged in predatory lending, banks might participate in predatory lending unknowingly through
loan purchases or securitizations from predatory lenders. (11/21/00)

FRB Issues Final Rule to Decrease the Amount of Net Transaction Accounts

The FRB is amending Regulation D to reflect the annual indexing of the low reserve tranche and the reserve requirement exemption for 2001, and announces the annual indexing of the deposit reporting cutoff level that will be effective beginning in September 2001. The amendments decrease the amount of net transaction accounts subject to a reserve requirement ratio of three percent in 2001. Read the final rule. (11/21/00)

OCC Publishes Electronic Listing of National Banks

The OCC has published an electronic listing of National Banks active as of 10/31/00. You can download either an Excel or PDF file. (11/20/00)

OTS Grants Federal Thrift Charter to Independent Insurance Agents

The Independent Insurance Agents of America Inc., Alexandria, Va., and four companies that will share ownership received approval from the OTS to organize a new federal thrift institution. (11/20/00) OTS 00-97

OTS Releases September Enforcement Statistics

The OTS reported that it completed seven enforcement actions during the month of September 2000. (11/20/00) OTS 00-93A

FDIC Publishes the FinCEN SAR Activity Review

This is the first edition of The SAR Activity Review, which will be published semiannually. The publication will provide feedback to financial institutions about suspicious activity reported to FinCEN by the institutions. (11/20/00) FIL-80-2000

NCUA Issues Order of Prohibition

The NCUA announced that it has issued an Order of Prohibition against James E. Chittick, Sr., former Chairman of the Board of Grand Terrace Federal Credit Union, located in Grand Terrace, California.
(11/17/00) NCUA Press Release

NCUA Issues Order of Prohibition

The NCUA announced that it has issued an Order of Prohibition against Janell Kay Smith, former employee of Food Industries Credit Union, located in Springfield, Oregon. (11/17/00) NCUA Press Release

FDIC Issues Alert on Unauthorized Bonds

The FDIC has learned that the City of Colon, Republic of Panama, issued approximately $300 million of Panamanian bonds without the authorization and backing of the Central Government. (11/17/00) FIL-79-2000

FDIC Issues Alert on Telemarketing Scam

The Royal Canadian Mounted Police has asked the FDIC to circulate to FDIC-supervised institutions information about a Canadian lottery telemarketing scam. Although it does not appear that banks are the primary targets of this scam, banks risk potential losses if uncollected funds are advanced to customers who are the targets and victims of this scam. (11/17/00) FIL-78-2000

OCC Releases CRA Evalations for 48 National Banks

The OCC released a list of CRA performance evaluations that became public during the period of
October 15 through November 14. (11/17/00) OCC: NR 2000-87

FRB Announces Annual Adjustment for Reserve Calculations and Deposit Reporting

The FRB announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff levels used to determine the detail and frequency of deposit reporting. (11/17/00) FRB Press Release

FOMC Maintains Existing Stance of Monetary Policy

The Federal Open Market Committee at its meeting decided to maintain the existing stance
of monetary policy, keeping its target for the federal funds rate at 6-1/2 percent. (11/16/00)
FRB Press Release

FDIC Chairman Warns Risk Managers to Watch Markets

Rising risk levels in booming markets that are vulnerable to an economic downturn, particularly
commercial real estate, are of growing concern, FDIC Chairman Donna Tanoue said in a speech
to the Risk Management Association in Nashville. (11/15/00) FDIC: PR-80-2000

OCC Announces 6 New Enforcement Actions

The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. (11/15/00) OCC: NR 2000-86

OTS Releases August and October National CRA Ratings

The OTS issued savings associations' CRA performance evaluation ratings that became available in August
and October 2000. The September ratings were issued on October 5, 2000 and are available on the OTS web site. (11/14/00) OTS 00-95

NCUA Issues Order of Prohibition

The National Credit Union Administration announced that it has issued an Order of Prohibition against Terry Hacker, former loan manager of Hawaii Federal Credit Union, located in Honolulu, Hawaii. (11/14/00) NCUA Press Release

The OCC has been advised that effective October 12, 2000, the Registrar of International and Foreign Companies, Samoa, revoked International Business Bank Corporation, Ltd. Level 2, Chandra House
Apia, Samoa, company's "A" class banking license, No. 107. (11/10/00) FDIC FIL-75-2000

The FDIC has learned that a number of official checks drawn on the Bay State Savings Bank, Worcester, Massachusetts, are missing and presumed stolen. The instruments have serial numbers ranging from 046255303 through and including 046255650. The checks have the caption "Club Check" immediately below the caption "Official Check" and are presigned.(11/10/00) FDIC FIL-76-2000

The FDIC has published the second Bank Technology Bulletin issued by FDIC's Bank Technology Group. The subject of this bulletin is Internet domain names. The bulletins highlight current issues of concern to the banking industry.
(11/10/00) FDIC: FIL-77-2000

The 2001 price level for Federal Reserve payments services is projected to increase 4.2 percent from the 2000 level. Because of price reductions in recent years, the overall price level has risen only half a percent since 1996.
(11/9/00) FRB Press Release

As earlier reported from the FFIEC, The FFIEC has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) for 2001. These revisions will become final upon approval by the U.S. Office of Management and Budget.
(11/9/00) FDIC FIL-74-2000

The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus unrealized gain on available-for-sale securities) of $1.141 billion for the first nine months of 2000. This is an increase of $1.254 billion over the same period last year. BIF reported a comprehensive loss of $198 million for 1999. As of September 30, 2000, the fund balance was $30.6 billion, up from $29.4 billion at year-end 1999. BIF revenues totaled $1.422 billion for the first nine months of 2000, including $1.359 billion in interest on investments in U.S. Treasury obligations and $36 million in deposit insurance assessments. (11/8/00) FDIC PR-79-2000:

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) FDIC-PR-77-2000 and FIL-73-2000

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) FRB Press Release

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) OCC NR 2000-85

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) OTS 00-94

The SAR Activity Review Trends, Tips and Issues
(11/6/00) FinCEN:

The FFIEC announced that it has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) for 2001. (11/6/00) FFIEC Press Release

The OTS reported that it completed seven enforcement actions during the month of September 2000.
(11/3/00) OTS 00-93

This is an issuance from the FDIC relating to the ESIGN Act. The E-Sign Act, signed into law on June 30, 2000, provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce. Included among the E-Sign Act's provisions is a section addressing the use of electronic records for an institution that wishes to exclusively provide electronic disclosures to consumers in lieu of written disclosures.
(11/3/00) FIL-72-2000

The OCC, FRB, FDIC, and OTS

are considering developing a simplified regulatory capital framework applicable to non-complex banks and thrifts (non-complex institutions). The Agencies believe that the size, structure, complexity, and risk profile of many banking and thrift institutions (banking organizations or institutions) may warrant the application of a simplified capital framework that could relieve regulatory burden associated with the existing capital rules. (11/3/00)

The OTS is proposing to change its regulations concerning corporate governance to create a class of preapproved optional bylaw provisions that federally chartered savings associations may adopt. The proposal decreases regulatory burden on federal savings associations by permitting them to adopt certain bylaws expeditiously without prior OTS review. (11/2/00) OTS:

As earlier reported by the OTS. The OTS is proposing changes would update the rules to reflect existing practices and procedures; provide more predictable procedures for applicants; and provide greater flexibility to OTS in processing applications. OTS has also applied ``plain language'' drafting techniques, which should make the application processing rules easier to understand.
(11/2/00) OTS:

The FRB announced a new approach to pricing Federal Reserve Banks' automated clearinghouse (ACH) transactions intended to enhance competition in the provision of
services to depository institutions. (11/1/00) FRB Press Release:

As earlier published in the Federal Register, the FRB has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The rule revises the disclosure requirements for credit and charge card solicitations and applications. (11/1/00) OCC 2000-28:

The OTS said it is issuing a regulatory proposal to have optional bylaws that savings associations could adopt without first obtaining OTS approval. By not requiring advance notice and allowing the thrift simply to notify OTS within 30 days of its action, the proposal reduces regulatory burden, OTS said. (11/1/00) OTS 00-92:

The OTS announced proposed changes to its applications processing rules that would help streamline the process, particularly in the early phases, and reduce the time and expense of handling applications. (11/1/00) OTS 00-91:

Director Ellen Seidman of the OTS announced that her agency will host its first ever All-Industry Leadership Conference for savings association chief executive officers and directors next April 23 and 24 in Atlanta. (11/1/00) OTS 00-90:

The occurrence of risky underwriting practices for construction, commercial (nonresidential) real estate, and home equity lending by banks has increased slightly in recent months, according to the FDIC's latest Report on Underwriting Practices. While the frequency of risky underwriting practices in these loan categories has not reached highs from two years ago, FDIC officials said the situation remains a concern.(11/1/00) FDIC PR-76-2000:

Feedback on SAR reporting released at ABA/ABA Money Laundering Seminar (11/1/00) FinCEN News Release:

• To provide Reserve Banks with more flexibility in scheduling, a risk assessment should be completed for each small shell bank holding company at least once during each supervisory cycle and within 45 calendar days of receipt of the lead bank's full-scope examination report. (10/31/00) FRB SR 00-15:
• The FDIC announced that it will begin operating its new Call Center on November 1, 2000. The Call Center will serve as the FDIC's primary telephone point of contact for the public and the banking community. (10/31/00) FDIC PR-73-2000
• FDIC Chairman Tanoe Warns Bankers: Time is of the Essence for Deposit Insurance Reform
  (10/31/00) FDIC PR-74-2000
• The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in September. No administrative hearings are scheduled for November.
  (10/31/00) FDIC PR-75-2000
• The Federal Civil Monetary Penalty Inflation Adjustment Act of 1990 requires all federal agencies with statutory authority to impose civil money penalties (CMPs) to evaluate and adjust those CMPs every four years. The FDIC last adjusted its CMP statutes in 1996. The FDIC is issuing this final rule to implement the required adjustments to its CMP statutes. (10/31/00) FDIC Final Rule:
• The number of national banks that allow customers to conduct financial transactions on their internet sites increased 52 percent from 9/99 to 7/00, according to analysis conducted by bank examiners from the OCC. Thirty-two percent of national banks had transactional Web sites in July compared to 21 percent in 9/99. (10/30/00) OCC NR 2000-84
• This booklet updates the 1995 edition. Its introduction explains which banks are subject to the booklet's procedures and how examiners set the scope of a community bank's consumer compliance examination.(10/30/00) OCC Community Bank Consumer Compliance Booklet:
• Enhancements to the Interagency Program for Supervising the U.S. Operations of Foreign Banking Organizations. (10/23/00) FRB SR 00-14
• Basel Committee Report Addresses The Supervisory Challenges of Electronic Banking (10/23/00) OCC NR 2000-82
• FRB, OCC, FDIC and OTS issued a proposed regulation implementing the provisions of the Fair Credit Reporting Act (FCRA) that permit institutions to communicate consumer information to their affiliates (affiliate information sharing) without incurring the obligations of consumer reporting agencies. (10/20/00)
• The FRB has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The rule revises the disclosure requirements for credit and charge card solicitations and
  applications. Although the revisions are effective immediately, compliance is not mandatory until October 1, 2001. (10/19/00) FRB: FIL: 70-00
• OFAC issued General Licenses effective October 12, 2000 relating to Federal Republic of Yugoslavia (Serbia and Montenegro) Kosovo Sanctions Regulations. 10/12/00 OFAC
• FRB, OCC and FDIC Syndicated bank loans adversely classified by examiners increased in 2000 for the second consecutive year, according to data released by three federal bank regulatory agencies. (10/10/00)
• FTC extends the comment deadline for its proposed customer information safeguard rules 10/6/00 FTC Press Release
• NCUA Issues Prohibition Order against the former manager of Hartford Courant Employees Federal Credit Union located in Hartford, Connecticut 10/6/2000
  NCUA
• FDIC issues new FIL to document recent OFAC changes 10/5/2000
  FDIC-FIL-68-2000:
• OTS Extends Mutual Holding Company, Conversion Rules Comment Period 10/5/2000 OTS 00-84:
• CRA Guidance from OTS Director Seidman 10/5/2000 OTS 00-83:
• NCUA Issues Prohibition Order against the former manager of GW Federal Credit Union, located in Denver, Colorado 10/4/2000
  NCUA:
• FDIC Issues October List of Banks Examined for CRA Compliance 10/5/2000 FDIC-PR-67-2000:
• FRB FINAL RULE: Federal Reserve Board issues final rule to amend Regulation Z to revise the disclosure requirements for credit and charge card solicitations and applications 10/3/00
• Security Monitoring Of Computer Networks 10/3/2000 FDIC-FIL-67-2000:
• OCC issues bulletin for national trust banks to maintain adequate liqidity & capital for examiners to assess 10/2/00 OCC 2000-26: