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Top Stories for April 2004
Disciplinary Action Taken Against Bankers
The FDIC has announced that disciplinary action involving removal and civil money penalties, including one of $50,000, has been taken against Kansas, Illinois, and Arkansas bankers. Kansas; Illinois; Arkansas 4/30/04
International Reserve Position Data Released
Treasury has released the U.S. International Reserve Position data for the weeks ending April 16 and 23, 2004.
Reserve Position 4/30/04
Premises Investment Report Extension Proposed
The FRB has issued a proposal for comment regarding a three year extension without revision of the Investment in Bank Premises Notification Report. Proposal 4/30/04
February 2004 G. 20 Issued
The G. 20 Finance Companies statistical release containing data for February 2004 has been issued by the FRB.
G. 20 4/30/04
Libyan Restrictions Relaxed
OFAC has announce issuance of a General License that authorizes most prospective transactions with Libya, however prior blocked transactions remained blocked unless specifically permitted. Information regarding the General License has been posted on the BOL OFAC page. 4/30/04
OCC Enforcement Actions Announced
Sixteen new enforcement actions have been announced by the OCC involving national banks and individuals from Minnesota, New York, Florida, Illinois, Texas, North Carolina, Utah, California, Oklahoma, and the District of Columbia.
Enforcement Actions 4/29/04
Identifying Risks In Secured Credit Card Programs
The OCC has issued an Advisory Letter which provides guidance on how to address the risks in secured credit card programs and identifies those products that the OCC has determined should not be offered by national banks.
AL 2004-4 4/29/04
NCUA Issues Prohibition Orders
FIL Regarding Medical Privacy NPR
The FDIC has issued a FIL regarding a previously announced NPR issued by the federal financial regulators concerning the use of medical information in credit decisions. Information regarding the NPR was posted in the April 26, 2004 BOL Top Stories. 4/29/04
OTC Enforcement Actions
The OTC has announced the entering into an Order to Cease and Desist with a Montana trust company regarding mutual fund shares trading and a Supervisory Agreement with a New Jersey FSB regarding RESPA, FDCPA and FCRA. Order; Agreement 4/28/04
Greenspan On Energy
Learn the views of Chairman Greenspan on energy prices and the U.S. economy from his presentation before the Center for Strategic & International Studies. Speech 4/28/04
FRB Working Papers Published
The FRB has published six working papers in the Finance and Economic Discussion series with the following titles: "The Geography of Stock Market Participation: The Influence of Communities and Local Firms"; "Learning and Shifts in Long-Run Productivity Growth"; "Uncertainty and Investment: An Empirical Investigation Using Data on Analysts' Profits Forecasts"; "What Does the Yield on Subordinated Bank Debt Measure?"; "The Term Structure of Commercial Paper Rates"; and "A New Approach to the Valuation of Intangible Capital".
New Approach 4/28/04
Loan Portfolio Quality Working Paper
A working paper, "Loan Portfolio Quality and the Diffusion of Technological Innovation", has been released by the FDIC.
Loan Portfolio 4/28/04
New Web Site For NCUA
NCUA has announced the redesign of its Web Site that incorporates suggestions and comments from its stakeholders, onsite testing, input from internal and external users and historical tracking results.
Home Page 4/28/04
ABCP Interim Final Rule Extended
The federal financial institution regulators have extended the expiration date of the interim final rule regarding ABCP and FIN 46.
FDIC FIL 4/27/04
One Certificate Only
The FDIC has announced, beginning June 1, 2004, that no longer will it provide original certificates of deposit insurance for display at all the offices of FDIC insured institutions. One original certificate will be provide at the time the institution is granted insurance for display in the main office. Generic certificates will be available upon request to display at branch offices.
Grant Gets An Extreme Makeover
As promised, Treasury, the Fed and the Secret Service have unveiled the new $50 dollar bill which contains many new features designed to thwart counterfeiters. See Grant's new look, learn more about the security features, and what you need to tell your customers from a BOL exclusive article, "All About the New $50". 4/27/04
First Quarter Asset & Liability Price Tables
OTS has published the Asset & Liability Price Tables for the First Quarter 2004.
Price Tables 4/27/04
Use of Medical Info NPR Issued
The federal financial regulators have issued a NPR under the FCRA that incorporates the prohibition on obtaining or using medical information in connection with credit eligibility determinations except under certain limited circumstances.
Medical Info NPR;
NCUA PR; 4/26/04
Risk-Based Capital Guidelines Extended
The regulators are extending the applicability date in the interim final rule on the capital treatment of consolidated asset-
backed commercial paper (ABCP) programs that was issued on October 1, 2003. 69FR22382 (txt) 69FR22382 (pdf) Interim Final Rule published in Oct. 2003 4/26/04
Counterfeit Cashier's Checks Special Alert
The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on the First State Bank, Holly Springs, Mississippi. Information regarding the counterfeit items has been placed on the BOL Alerts & Counterfeits page. 4/26/04
FTC To Refer Complaints To Credit Bureaus
The FTC has announced a program to forward consumer complaints regarding inaccurate entries on their credit reports directly to the three major credit bureaus.
Referral Program 4/26/04
International Finance Discussion Paper Released
A discussion paper in the International Finance series titled, Price-level Determinacy, Lower Bounds on the Nominal Interest Rate, and Liquidity Traps, has been released by the FRB.
NPR Regarding Lending Limits
The OCC is proposing to extend for three years an OCC pilot program that authorizes new, special lending limits for 1-4 family residential real estate loans and small business loans. 69FR21978 (txt) 69FR21978 (pdf) 4/23/04
52 CRA Ratings Released
The OCC has released the ratings for fifty-two national banks examined for CRA compliance. Five banks were rated outstanding, forty-six satisfactory and one needs to improve. CRA 4/23/04
Another FDIC Email Scam
The FDIC has issued a Special Alert regarding complaints from consumers that have received emails appearing to have been sent by the FDIC. The emails indicate that the FDIC has collaborated with credit card providers to provide a new service for those who wish to secure their credit cards against fraud and to be part of a secure online transaction network. The e-mail claims that, by accessing the embedded link, the recipient can get a free trial membership that provides coupons for discounts at some of the more popular online retail outlets. Scam 4/23/04
FDIC Publishes New Brochures For Customers
The FDIC has issued a FIL regarding the development of one new brochure, Insuring Your Deposits, and the update of a previously issued one, Your Insured Deposits - FDIC's Guide to Deposit Insurance Coverage, for bank customers that explain FDIC insurance. Older copies of the Your Insured Deposits publication are outdated and should be destroyed. FIL 42-2004;
Insuring Your Deposits;
Your Insured Deposits 4/23/04
A FIL has been issued by the FDIC regarding previously announced changes made by OFAC to SDN designations. Information concerning the changes were posted April 15, 2004 on the BOL OFAC page. 4/23/04
FTC NPR ID Theft Proposals
The FTC has issued a NPR pursuant to the FACT Act regarding definitions, active duty alert, and appropriate proof of identity.
FACT Act NPR 4/22/04
NPR Regarding FRB PRS
The FRB has issued a NPR regarding proposed changes to Part II of its Policy Statement on Payment System Risk addressing risk management in payments and securities settlement systems. NPR 4/22/04
Greenspan - Fed Funds Rates To Rise
Chairman Greenspan presented his outlook of the economy to the Joint Economic Committee of the Senate. He indicated that the federal funds rate must rise at some point to prevent pressures on price inflation from eventually emerging.
Beige Book Updated
The FRB has updated the Beige Book based on data collected before April 12, 2004.
Beige Book 4/22/04
Supervisory Agreement Regarding RESPA, FDCPA and FCRA
OTS has announced the entering into a Supervisory Agreement with a FSB which involves the enhancement of the institution's compliance with the provisions of RESPA, FDCPA and FCRA. Supervisory Agreement
FinCEN Warns Of Unauthorized Disclosure of SAR
Director Fox has issued a statement noting the unauthorized disclosure of the filing of a SAR is a violation of federal criminal law and threatens the integrity of the system. Statement 4/21/04
The State of Banking By Greenspan
Chairman Greenspan expressed his views on the state of the banking industry in testimony before the Senate Committee on Banking, Housing, and Urban Affairs. His comments included the improved risk management in banks, Basel II, and bank consolidation. He noted the industry's experience during the past few years in dealing with clear weakness in key economic sectors demonstrates the importance of strong capital positions and sound risk-management practices.
Hawke Says National Banking System Strong
In testimony before the Senate Committee on Banking, Housing, and Urban Affairs, Comptroller Hawke stated that the national banking system was in a strong condition. He noted that there were elements of uncertainty in today's economic environment, but he was optimistic about the ability of banks to overcome the challenges. Testimony 4/21/04
May 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 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, 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 4/20/04
Consumer Report Disposal Proposal Published
The FTC's proposed rule regarding the proper disposal of consumer report information and records has been published in the Federal Register. The comment deadline is June 15, 2004.
69FR21387 (txt) 69FR21387 (pdf) 4/20/04
FRB MICR File Delivery Update
FRB Services has announced starting April 20, 2004, institutions that use Payor Bank Services via the FedLine Web will see enhanced MICR File Delivery functionality including the ability to download multiple files and other download options.
FRB Annual Report To Congress
The FRB has made its annual budget review report to Congress which covers budgeted expenses of the Reserve Banks for 2004, the 2004 phase of the Board's current two-year (2004-05) budget, and income and expenses for 2002 and 2003.
Budget Report 4/20/04
Consumer Records Disposal NPR Issued
The FTC has issued a NPR regarding the disposal of consumer report information and records. The proposed Rule would require any person that possesses or maintains covered consumer information "to take reasonable measures to protect against unauthorized access to or use of the information in connection with its disposal."
Mandatory Electronic Filing
The FDIC has issued an FIL regarding an interim rule that requires the electronic filing of beneficial ownership reports by directors, executive officers, and principal shareholders to be made through the FDIC Beneficial Ownership Filings system.
Stolen or Missing Money Orders
The FDIC has issued a Special Alert regarding 100 stolen or missing money orders drawn on Citizens Community Bank, Mascoutah, Illinois. Information regarding the money orders has been placed on the BOL Alerts & Counterfeits page. 4/19/04
Credit Card Telemarketers To Pay $11.8 Million
The FTC has obtained a judgment in U.S. District Court against six telemarketers that duped thousands of customers nationwide in a scam that promised pre-approved advance fee Visa and MasterCard credit cards. The Court banned the defendants from future operations and ordered $1.8 million in customer redress.
Court Order 4/19/04
March G. 17 Report Issued
The FRB has issued the G. 17 Industrial Production and Capacity Utilization report for March 2004.
G. 17 4/19/04
OCC Licensing Manual Updated
The "Charters" booklet in the OCC Licensing Manual series has been updated.
OCC Bulletin Regarding Op Sub NPR
The OCC has issued Bulletin 2004-16 concerning a previously announced NPR that would enable the OCC to make information about the name, location, contact information and lines of business of national bank operating subsidiaries available to the public on the OCC web site. The details regarding the NPR were posted in the March 26, 2004 BOL Top Stories. 4/16/04
FDIC Issues Proposed Rule on Store Value Cards
The FDIC is publishing for notice and comment a proposed rule that would clarify the meaning of ``deposit'' as that term relates to
funds at insured depository institutions underlying stored value cards. 69FR20558 (txt) 69FR20558 (pdf) 4/16/04
February TIC Data Released
Treasury has released the Treasury International Capital data for February 2004.
Exchange Rate Report Made to Congress
The International Economic and Exchange Rate Policies Report for the second half of 2003 has been delivered to Congress by Treasury as required by the Omnibus Trade and Competitiveness Act of 1988. Exchange Rate Report 4/16/04
Quarterly Journal for 2nd Quarter 2003 Online
February Cost of Funds Reports Issued
April Money Smart News Published
The FDIC has published the April 2004 issue of the Money Smart News.
Iraqi Names Added To OFAC List
OFAC has announced the designation of five new entities and four individuals as SDNs plus changes to existing SDN entries. The new SDNs are front companies and individuals that were procuring weapons, skimming funds, operating for the Iraqi Intelligence Service, and doing business in support of the fallen Saddam Hussein regime. Information regarding the additions and changes has been posted on the BOL OFAC page. 4/16/04
Sharing Medical Information FCRA Exception Proposed
The FRB, FDIC and NCUA are seeking comments on a proposed rule under the FCRA that would create an exceptions for obtaining, using and sharing medical information. Proposed Rule 4/15/04
Reg CC Appendix A Technical Amendment
The FRB is amending appendix A of Regulation CC to delete the reference to the Charleston check processing office of the Federal Reserve Bank of Richmond and reassign the Federal Reserve routing symbols currently listed under that office to the Cincinnati office of the Federal Reserve Bank of Cleveland. 69FR19921 (txt)
69FR19921 (pdf) 4/15/04
HMDA Exam Procedures Bulletin Issued
The OCC has issued a Bulletin that indicates that the new exam procedures resulting from the amendment of Reg C will be incorporated into the Comptroller's Handbook series in the future, but until that time, the examiners will be following the procedures attached to the Bulletin. OCC 2004-15;
Consumer PL Brochure Now In Spanish
The federal Interagency Task Force on Fair Lending has published a Spanish-language version of a brochure that alerts consumers to potential borrowing pitfalls, including high-cost home loans, and provides tips for getting the best financing deal possible. Copies of the brochure in English or Spanish will be available on the agencies' web sites.
Joint PR (English);
Joint PR (Spanish);
Brochure (Spanish) 4/14/04
International Reserve Position Released
Treasury has released the U.S. International Reserve Position for the week ending April 9, 2004.
Reserve Position 4/14/04
Counterfeit Cashier's Checks Special Alerts
The FDIC has issued two Special Alerts regarding counterfeit cashier's checks drawn on St. Martin Bank and Trust Company, St. Martinville, Louisiana; Kearny Federal Savings Bank, Kearny, New Jersey; and Highlands Independent Bank, Sebring, Florida. Information regarding the counterfeit items has been posted on the BOL Alerts & Counterfeits page. 4/13/04
FDIC Issues Interim Rule on Electronic Filing
This amendment implements the requirements of the Exchange Act, as amended by the Sarbanes-Oxley Act of 2002, which
mandates electronic filing of reports related to beneficial ownership of securities by the directors, executive officers, and principal
shareholders of public companies. The amended rules provide an exception to this prohibition, requiring electronically transmitted filings of beneficial ownership reports by bank directors, officers and principal shareholders to disclose securities transactions and ownership. 69FR19085 (txt) 69FR19085 (pdf) 4/12/04
FRB Proposed Changes to Reg V
The FRB is proposing to amend Regulation V that implements the Fair Credit Reporting Act (FCRA or Act). The FRB would add a model form to Regulation V that financial institutions may use to comply with the notice requirement relating to furnishing negative information contained in section 217 of the FACT Act. 69FR19123 (txt)
69FR19123 (pdf) 4/12/04
FinCEN Issues Special Measures Against Burma
FinCEN Issues Special Measures Against Two Financial Institutions
FinCEN is issuing a final rule to require certain U.S. financial institutions to take the proposed special measure with respect to Myanmar Mayflower Bank (Mayflower Bank) and Asia Wealth Bank, both Burmese banks. 69FR19098 (txt)
69FR19098 (pdf) 4/12/04
Reg CC Appendix A Amended
The FRB has issued a Final Rule which amends Appendix A of Reg CC due to the restructuring of the check processing operations in the Fourth and Fifth Federal Reserve Districts.
Final Rule 4/12/04
FIL Regarding Weapons Of Mass Destruction
An FIL has been issued by the FDIC regarding a previous announcement by OFAC that four entities were no longer subject to the import ban of the Weapons of Mass Destruction Trade Control Regulations. Information regarding the entities has posted on April 2,2004 on the BOL OFAC page. 4/12/04
CMIR Form Changes Proposed
The FRB has released the list sorted by state of minority-owned banks as of December 31, 2004.
FDIC Issues Stakeholders Letter
The First Quarter 2004 Edition of the FDIC's Letter to Stakeholders has been issued.
Stakeholders Letter 4/9/04
FACT ACT Negative Information Form
The FRB has issued a NPR regarding a proposed amendment to Reg V which contains a model form to be utilized by financial institutions under the provisions of the FACT Act if they furnish negative information to consumer reporting agencies. Comments regarding the model form must be received by May 9, 2004. NPR 4/8/04
Hawke Discusses Preemption With Senators
Comptroller Hawke testified before the Senate Banking Committee and explained what the new OCC regulations regarding preemption and visitorial powers do and what they would not do. He noted that the OCC feels the new rules are legally sound and do not leave customers of national banks exposed to abusive practices. Oral Statement;
Fraudulent FDIC Emails Virus Warning
The FDIC has issued a Special Alert regarding emails that have been received by customers of financial institutions that appear to have been sent by the FDIC. The emails instruct the recipient to open an attachment to view information regarding fraudulent activity occurring in the customer's account. The sender may be trying to implant a virus or obtain the customer's personal information.
Email Virus Special Alert 4/8/04
Special Alert - Unauthorized Banking
A Special Alert has been issued by the FDIC regarding an Austrian entity that may be conducting banking activities in the United States without authorization. Special Alert 4/8/04
Extension of FRB Reports Proposed
The FRB has proposed for comment the extension without revision for a period of three year the following reports: FHC, FR 4010, FR 4011, FR 4012, FR 4017, FR 4019, Notice of Branch Closure (4031), FR 4008, FR 4013, and Reg H-1. Proposals 4/8/04
International Reserve Position Data Released
Treasury has released the International Reserve Position for the week ending April 2, 2004.
International Position 4/8/04
G. 19 Consumer Credit Report Issued
The FRB has issued the G. 19 Consumer Credit Report for February 2004.
G. 19 4/8/04
FDIC CRA Ratings Released
The ratings for the banks examined by the FDIC in January 2004 for CRA compliance have been released.
CRA Ratings 4/7/04
Treasury Check Claims Final Rule Issued
Treasury has issued a Final Rule which amends the rule governing the indorsement and payment of Treasury checks and provides notice of how Treasury will collect debts owed by banks who fail to properly pay claims.
Final Rule 4/7/04
FinCEN Withdraws Advisories
FFIEC Updates CRA/HMDA Software
Updated versions of the 2004 CRA and HMDA Data Entry Software are now available online at the FFIEC web site.
Data Entry Updates 4/7/04
Fourth Quarter Interest Rate Risk Review
OTS has issued its Quarterly Review of Interest Rate Risk for the Fourth Quarter 2003.
Quarterly Review 4/7/04
FDIC Updates State Profiles
The FDIC has issued the Spring Quarter 2004 update of the business and economic conditions for each state.
State Profiles 4/7/04
Mark Levonian Named Deputy Comptroller for Modeling and Analysis
Mr. Levonian will oversee quantitative modeling support for bank supervision, economic research and policy analysis.
NR 2004-27 4/6/04
OTS Proposes New Form for Collecting Risk Exposure Data
As part of an on-going effort to comprehensively enhance its interest rate risk modeling capabilities, the OTS is introducing a new form for collecting data used to measure thrifts’ interest-rate risk exposure. The changes are intended to reduce the data collection burden on institutions while improving the flexibility and utility of the data collected for OTS.
OTS 04-08 4/6/04
OTS Issues Supplemental Guidance on the BSA and AML Programs
RB 18-6 4/6/04
OFAC Penalizes One Institution
The April OFAC Civil Money Penalties Enforcement Information lists one bank for violation of the Cuban Sanctions Program resulting in a penalty of $137,500. OFAC Penalty 4/5/04
Federal Reserve Working Papers
The Federal Reserve has published "What Explains the Stock Market's Reaction to Federal Reserve Policy?" Paper 4/5/04
FFIEC Makes HMDA Revisions and Updates
Foreign Exchange Rates Report Released
The FRB has released the G.5 Foreign Exchange Rates Report for March 2004. G.5 4/2/04
National Banks In Excellent Health
In testimony before the House Committee on Financial Services, Comptroller Hawke proclaimed the health of national banks to be excellent with less than one per cent having risked-based capital below ten percent. Testimony; Oral Statement 4/2/04
FDIC Enforcement Actions Announced
Nineteen administrative enforcement actions were taken against banks and individuals by the FDIC in February 2004.
Enforcement Actions 4/1/04
Retail Payments IT Exam Booklet Issued
The FFIEC has announced the issuance of a Retail Payments Systems Booklet in the IT Examination Handbook series which provides guidance for examiners, financial institutions, and technical service providers on the risks associated with retail payment systems.
Line Item Guidance Issued for Oakars
Custodial Inventory Program Applications
OTS Risk Management CEO Letter
A CEO Letter has been issued by OTS regarding risk management practices in the current interest rate environment.
CEO Letter 4/1/04
Standard Forms Now Available Online
Standard cash letter, cash services and Fedwire services forms plus instructions are now available on the FRB Financial Services web site. Forms 4/1/04
NCUA Chairman To Retire
NCUA Chairman Dollar has announce his retirement effective April 30, 2004.
International Reserve Position Released
Treasury has released the U. S. International Reserve Position for the week ending March 26, 2004.
Reserve Position 4/1/04
FRB Releases Agricultural Databook
The E.15 Agricultural Finance Databook for the First Quarter 2004 has been released by the FRB.