Top Stories for September 2008

California CU Liquidated Assets Assumed

The NCUA has announced that Alliant Credit Union, of Chicago, Illinois, has purchased the assets and assumed all member shares of the recently liquidated Kaiperm Federal Credit Union of Oakland, California. Liquidation  9/30/08

OFAC CMPs Announced

The civil money penalties (CMPs) recently assessed by OFAC for violation of the various Sanctions Programs have been announced. No financial institutions were cited. CMPs  9/30/08

Enforcement Actions

The FRB has announced one Order of Prohibition issued against a former Alabama banker (while the FDIC announced four), and a Flood CMP against a West Virginia Bank. The five penalties totaled $57,265. Information regarding the Flood CMP has been posted on the BOL Flood Penalties Watch page. Order  9/30/08

Joint Agencies Propose Rulemaking for Minimum Capital Ratios

The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the Agencies) are proposing to permit banks, bank holding companies, and savings associations (collectively, banking organizations) to reduce the amount of goodwill that a banking organization must deduct from tier 1 capital by the amount of any deferred tax liability associated with that goodwill, and would reflect a banking organization's maximum exposure to loss in the event that such goodwill is impaired or derecognized for financial reporting purposes.TXT; PDF  9/30/08

FDIC Publishes Interim Final Rule in FR for Deposit Insurance Regulations and Revocable Trust Accounts

The FDIC is adopting an interim rule to simplify and modernize its deposit insurance rules for revocable trust accounts. The FDIC's main goal in implementing these revisions is to make the rules easier to understand and apply, without decreasing coverage currently
available for revocable trust account owners. The FDIC believes that the interim rule will result in faster deposit insurance determinations after depository institution closings and will help improve public confidence in the banking system. The interim rule eliminates the
concept of qualifying beneficiaries. Also, for account owners with revocable trust accounts totaling no more than $500,000, coverage will be determined without regard to the beneficial interest of each beneficiary in the trust.TXT; PDF  9/30/08

Katrina and RITA CRA Activities Extended

The federal financial institution regulators are extending for an additional 36 months the time period for Community Reinvestment Act (CRA) consideration for activities in designated Katrina and Rita hurricane disaster areas. OCC Bulletin  9/30/08

MMF Guarantee Program Opens

The Treasury has opened its Temporary Guarantee Program for Money Market Fund (MMFs) and issued a FAQ for investors. All MMFs that are regulated under Rule 2a-7 of the Investment Company Act of 1940, maintain a stable share price of $1, and are publicly offered and registered with the SEC are eligible to participate in the program. Program; FAQ  9/30/08

Reg D Annual Amendments

The FRB has announced a Final Rule amending Reg D to reflex the annual indexing of the reserve requirement exemption amount and of the low reserve tranche for 2009, the annual indexing of the nonexempt deposit cutoff level, and the reduced reporting limit that will be used to determine deposit reporting panels effective 2009. Reg D  9/30/08

Financial Reporting Bulletin

The September 2008 issue of the Financial Reporting Bulletin has been published by the OTS. Bulletin  9/30/08

TFR Instruction Manual updated

The OTS has updated the 2007 TFR Instruction Manual with data current as of September 2008. Manual  9/30/08

031 and 041 Forms Online

The FFIEC has posted drafts of the 031 and 041 Reporting Forms online. 031; 041  9/30/08

Central Banks Provide Liquidity

The Federal Reserve and other central banks announce further coordinated actions to expand significantly the capacity to provide U.S. dollar liquidity. Liquidity  9/30/08

Bailout Bill Proposed

Congressional leaders have announced that the draft of legislation designed to address the current financial crisis known as the Emergency Economic Stabilization Act of 2008 will be presented to the House on Monday for consideration. Text of Bill; Summary of Bill; Section By Section  9/29/08

Citigroup Inc. to Acquire Wachovia Banking Operations

The FDIC issued a press release early 9/29/08 announcing that Citigroup Inc. will acquire the banking operations of Wachovia Corporation, Charlotte, North Carolina, in a transaction facilitated by the Federal Deposit Insurance Corporation and concurred with by the Board of Governors of the Federal Reserve and the Secretary of the Treasury in consultation with the President. According to the FDIC, all depositors are fully protected and there is expected to be no cost to the Deposit Insurance Fund. Further, the FDIC said Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC. Press Release  9/29/08

FDIC Insurance Changes

Major changes to the way FDIC insurance coverage is calculated for POD and revocable trust accounts have been announced by the FDIC and were effective immediately for existing and future accounts. Read all about the changes in a special BOL summary and sign up for an October 2 Webinar presented by Mary Beth Guard regarding the new changes and training your frontline staff. Summary; Webinar  9/29/08

Enforcement Actions Announced

The FDIC has released a list of thirty orders of administrative enforcement actions taken against banks and individuals in August, 2008. List  9/29/08

Central Banks Announce Liquidity Measures

The Federal Reserve, the Bank of England, the European Central Bank (ECB), and the Swiss National Bank have announced the introduction of operations to provide U.S. dollar liquidity with a one-week maturity. FRB; Bank of England; ECB  9/29/08

Quarterly Reserve Bank Payments Services Data Released

The FRB has released the Quarterly Reserve Bank Payments Services data through the Second Quarter 2008. Data  9/29/08

Quarterly Bank Trading Revenue Report

The OCC has announced that insured U.S. commercial banks reported $1.6 billion in revenues from trading cash and derivative instruments in the second quarter 2008, compared to revenues of $721 million in the first quarter of 2008. Quarterly Report  9/29/08

Daylight OD Date Updated

The Monthly Daylight Overdraft data through July 2, 2008, had been released by the FRB. OD Data  9/29/08

IFED Working Papers Published

The FRB has published five working papers in the International Finance Discussion Papers (IFDP) series on the following topics:

• Escape From New York: The Market Impact of SEC Rule 12h-6;
• Emerging Market Business Cycles with Remittance Fluctuations;
• Current Account Sustainability and Relative Reliability;
• Exchange Rates and Fundamentals: A Generalization; and
• Expected Consumption Growth from Cross-Country Surveys: Implications for Assessing International Capital Markets

.Escape Abstract; Escape Full Paper; Emerging Abstract; http://www.federalreserve.gov/pubs/ifdp/2008/946/ifdp946.pdf">Emerging Full Paper; Current Abstract; Current Full Paper; Exchange Abstract; Exchange Full Paper; Expected Abstract; Expected Full Paper  9/29/08

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Stearns Bank, N.A., St. Cloud, Minnesota. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  9/26/08

WaMu Placed In Receivership Assets Acquired

The OTC has appointed the FDIC as receiver of Washington Mutual Bank (WaMu) and certain assets have been acquired by JPMorgan Chase. Appointment; Acquisition; WaMu Fact Sheet  9/26/08

Written Agreement with California BHC Announced

The FRB has announced the execution of a Written Agreement by and between Vineyard National Bancorp, registered bank holding company, and the Federal Reserve Bank of San Francisco. Written Agreement  9/26/08

BHC Performance Report User's Guide Updated

The User's Guide for the Bank Holding Company Performance Report User's Guide for the Bank Holding Company Performance Report has been updated by the FRB. User's Guide  9/26/08

OCC Publishes Interim Final Rule in FR for Risk-Based Capital Guidelines--Money Market Mutual Funds

To reduce liquidity and other strains being experienced by money market mutual funds, the Board of Governors of the Federal Reserve System adopted on September 19, 2008, a special lending facility that enables depository institutions and bank holding companies to borrow from the Federal Reserve Bank of Boston on a nonrecourse basis if they use the proceeds of the loan to purchase certain types of asset-backed commercial paper (ABCP) from money market mutual funds. TXT; PDF  9/26/08

FRB Publishes Interim Final Rule in FR for Risk-Based Capital Guidelines; Leverage Capital Guidelines

To reduce liquidity and other strains being experienced by money market mutual funds, the Federal Reserve System adopted on September 19, 2008, a special lending facility (ABCP Lending Facility) that enables depository institutions and bank holding companies to borrow from the Federal Reserve Bank of Boston on a nonrecourse basis
if they use the proceeds of the loan to purchase certain types of asset-backed commercial paper (ABCP) from money market mutual funds. TXT; PDF  9/26/08

FRB Publishes Interim Final Rule in FR for Transactions Between Member Banks and Their Affiliates

To reduce liquidity and other strains being experienced by money market mutual funds, the Federal Reserve System adopted on September 19, 2008, a special lending facility that enables depository institutions and bank holding companies to borrow from the Federal Reserve Bank of Boston on a non-recourse basis if they use the proceeds of the loan to purchase certain types of asset-backed commercial paper (ABCP) from money market mutual funds (ABCP Lending Facility). TXT; PDF  9/26/08

FEDS Working Papers Published

The FRB has published two working papers in the Finance and Economic Discussion Series (FEDS) on the topics of "The use of alternative employment arrangements by small businesses: Evidence from the 2003 Survey of Small Business Finances" and "The Incentives of Mortgage Servicers: Myths and Realities." The Use Abstract; The Use Full Paper; The Incentives Abstract; The Incentives Full Paper  9/26/08

Paulson Testifies Before House Committee

In testimony before the House Committee on Financial Services, Secretary Paulson discussed the proposed troubled asset purchase program and noted that it "has to be properly designed for immediate implementation and be sufficiently large to have maximum impact and restore market confidence. It must also protect the taxpayer to the maximum extent possible, and include provisions that ensure transparency and oversight while ensuring the program can be implemented quickly and run effectively, as it needs to get the job done." Testimony  9/25/08

Bernanke's Economic Outlook

Chairman Bernanke testified before the Joint Economic Committee of Congress regarding his outlook on the economy. He noted, "Despite the efforts of the Federal Reserve, the Treasury, and other agencies, global financial markets remain under extraordinary stress. Action by the Congress is urgently required to stabilize the situation and avert what otherwise could be very serious consequences for our financial markets and for our economy." He also stated, "the intensification of financial stress in recent weeks, which will make lenders still more cautious about extending credit to households and business, could prove a significant further drag on growth." Testimony  9/25/08

Minority-Owned National Banks Policy Statement Reissued

The OCC has reissued its Policy Statement on minority-owned national banks. Policy Statement  9/25/08

FDIC Publishes Final Rule in FR for Deposit Insurance Requirements After Certain Conversions

The FDIC is issuing a final rule that amends certain of its regulations by conforming them to Federal statutes amended by the Financial Services Regulatory Relief Act of 2006, the Federal Deposit Insurance Reform Act of 2005 and the Federal Deposit Insurance Reform
Conforming Amendments Act of 2005.TXT; PDF  9/25/08

FDIC Publishes Final Rule in FR for Financial Education Programs

The Federal Deposit Insurance Corporation (FDIC) is amending its regulations to permit state nonmember banks to participate or assist in certain financial education programs conducted on school premises where, in connection with the program, deposits are received,
checks are paid, or money is lent, without the need to submit a branch application to, and receive prior approval from, the FDIC. TXT; PDF  9/25/08

Reserve Positions Released

Treasury has released the U.S. International Reserve Position Reports for September 5, 12 and 19, 2008. September 5; September 12; September 19  9/25/08

International Swap Lines Announced

The FRB has announced the establishment of temporary reciprocal currency arrangements (swap lines) with central banks in Australia, Denmark, Norway and Sweden which are designed to improve liquidity conditions in global financial markets.
Swap Lines   9/24/08

Bernanke and Paulson Testify on Financial Markets

In testimony before the Senate Banking Committee, Chairman Bernanke stated, "The Federal Reserve believes that, whenever possible, such difficulties should be addressed through private-sector arrangements--for example, by raising new equity capital, by negotiations leading to a merger or acquisition, or by an orderly wind-down. Government assistance should be given with the greatest of reluctance and only when the stability of the financial system, and, consequently, the health of the broader economy, is at risk." Secretary Paulson noted, "The market turmoil we are experiencing today poses great risk to US taxpayers. When the financial system doesn't work as it should, Americans' personal savings, and the ability of consumers and businesses to finance spending, investment and job creation are threatened." Bernanke Testimony; Paulson Testimony  9/24/08

Credit Auction Results

The Federal Reserve has announced the results of the auction of $75 billion in 28-day credit held on September 22, 2008. Auction  9/24/08

Written Agreements Announced

The FRB has announced the execution of one Written Agreement by and among Community Bank of West Georgia, a state chartered member bank, the Federal Reserve Bank of Atlanta, and the Banking Commissioner of the State of Georgia; and the execution of a second Written Agreement by and among Community Banks of Northern California, a state chartered member bank, the Federal Reserve Bank of Kansas City, and the California Department of Financial Institutions. Community Bank of West Georgia; Community Banks of Northern California  9/24/08

Call Report Revisions Proposed

The FDIC has issued a FIL regarding comments requested by OCC, the FRB, and the FDIC on several proposed revisions to the Call Report. The proposed reporting changes, which have been approved by the FFIEC and published in the Federal Register, would take effect on a phased-in basis during 2009. FIL; FR Notice  9/24/08

314(a) Fact Sheet Update

FinCEN has updated the 314(a) Fact Sheet with data current as of September 23, 2008. 314(a)  9/24/08

Morgan Stanley Bank, N.A.

The OCC has announced it has issued a letter conditionally approving the application of Morgan Stanley Bank, Salt Lake City, Utah to convert to a national banking association to be called Morgan Stanley Bank, National Association. Conditional Approval Letter  9/23/08

Equity Investments Policy Statement

The FRB has announced the approval of a policy statement on equity investments in banks and bank holding companies which provides additional guidance on minority equity investments in banks and bank holding companies that generally do not constitute "control" for purposes of the Bank Holding Company Act. Statement  9/23/08

MMF Guaranty Program Clarified

The Treasury has issued clarifications of the previously announced temporary guaranty program for money market funds. Clarifications  9/23/08

Household DSR and FOR Ratios Released

The FRB has released the household debt service ratio (DSR) and the financial obligations ratio (FOR) for the Second Quarter 2008. Ratios  9/23/08

Enforcement Actions Released

The OCC has released the enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions  9/23/08

FDIC Insurance Awareness Campaign Launched

A national campaign, with personal finance expert Suze Orman as the spokesperson, has been launched by the FDIC. The campaign is designed to help consumers learn about the benefits and limitations of deposit insurance. Campaign  9/23/08

September 2008 Reporting Forms Online

The FFIEC has posted the September 2008 031 and 041 Reporting Forms online. 031; 041  9/23/08

Goldman Sachs and Morgan Stanley Becomes BHCs

The FRB has announced that orders have been issued approving the applications of Goldman Sachs and Morgan Stanley to become bank holding companies (BHCs) and that after consultation with the Justice Department the transactions may be consummated immediately without the application of the five-day antitrust waiting period. Goldman Sachs Order; Morgan Stanley Order  9/22/08

Liquidity Enhancements and Interim Final Rules Announced

The Treasury has announced two enhancements and two interim final rules to improve the liquidity the markets. One initiative will extend non-recourse loans at the primary credit rate to U.S. depository institutions and bank holding companies to finance their purchases of high-quality asset-backed commercial paper (ABCP) from money market mutual funds and the other the purchase of federal agency discount notes. A Q&A regarding the enhancements has also been issued. In addition, the OCC has issued an interim final rule recognize the substantial protection from risk provided to national banks under the Federal Reserve System’s special lending facility. Enhancements; Treasury Interim Final Rules; Q&A; OCC Interim Final Rule  9/22/08

Treasury Purchase of Troubled Assets Fact Sheet

The Treasury has released a Fact Sheet regarding its proposed purchase pf troubled assets. Fact Sheet  9/22/08

Money Market Funds Guaranty Program Announced

The Treasury has announced the establishment of a temporary guaranty program for the U.S. money market mutual fund industry that will insure the holdings of any publicly offered eligible money market mutual fund that pays a fee to participate in the program. MMF Guaranty  9/22/08

Paulson Discusses Comprehensive Approach

Treasury Secretary Paulson has issued a statement discussing his meetings with FRB Chairman Bernanke and SEC Secretary Cox regarding the taking a comprehensive approach to relieving the stresses on financial institutions and markets. Statement  9/22/08

Short Selling of Financial Stocks Halted

The SEC has halted the short selling of financial stocks. SEC; Statement  9/22/08

Check 21 Operations Freeze

FRB Financial Services has announced its Check 21 Operations will not be available between 12:01 a.m. ET Saturday, October 25, 2008, and 11:00 a.m. ET Sunday, October 27, 2008, in order to conduct a national contingency test. Check 21  9/22/08

OTS Closed Bank, FDIC Appointed Receiver

The OTS has announced that it has closed Ameribank of Northfork, West Virginia, and appointed the FDIC receiver. The FDIC then entered into purchase and assumption agreements with Pioneer Community Bank, Inc., Iaeger, West Virginia, and The Citizens Savings Bank, Martins Ferry, Ohio to take over all of the deposits and certain assets. OTS; FDIC  9/22/08

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among First Georgia Community Corp., Jackson, Georgia, First Georgia Community Bank, Jackson, Georgia, the Federal Reserve Bank of Atlanta, and the Banking Commissioner of the State of Georgia. Written Agreement  9/22/08

Multibank CDCs Featured in Community Development Investments

The OCC has released the Fall 2008 edition of Community Developments Investments which focuses on Multibank Community Development Corporations (CDCs). Multibank CDCs.  9/22/08

Counterfeit Official Checks Special Alerts

The FDIC has issued a Special Alert regarding counterfeit official checks bearing the name of IndyMac Federal Bank, F.S.B., Pasadena, California. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  9/19/08

FRB Publishes Interim Final Rule for Transactions Between Member Banks and Their Affiliates

In light of the continuing unusual and exigent circumstances in the financial markets, the Board has adopted, on an interim final basis, a regulatory exemption for member banks from certain provisions of section 23A of the Federal Reserve Act and the Board's Regulation W.
The exemption increases the capacity of member banks, subject to certain conditions designed to help ensure the safety and soundness of the banks, to enter into securities financing transactions with affiliates. Text;
PDF  9/19/08

The FRB and International Central Banks Join Forces

The FRB has announced that it is coordinating measures with the Bank of Canada, the Bank of England, the European Central Bank (ECB), the Bank of Japan, and the Swiss National Bank to address the continued elevated pressures in U.S. dollar short-term funding markets. These measures, together with other actions taken in the last few days by individual central banks, are designed to improve the liquidity conditions in global financial markets. The central banks will continue to work together closely and take appropriate steps to address the ongoing pressures. FRB; Bank of Canada; Bank Of England; European Central Bank; Bank of Japan; Swiss National Bank  9/19/08

Treatment of Freddie And Fannie Investments

A FIL has been issued by the FDIC that contains a statement that the regulator will work with the limited number of institutions that have significant holdings of common or perpetual preferred shares in Fannie Mae and Freddie Mac to develop Capital Restoration Plans pursuant to federal regulations. FIL; Statement  9/19/08

Free Accounting Seminar for Bank Employees

The FDIC has issued a FIL announcing that it will host a free telephone seminar on several accounting issues of current interest to bankers. The seminar will be held on September 24, 2008, and run approximately two hours. Employees of all FDIC-supervised banks are invited to participate. FIL  9/19/08

SBA 7(a) Loan Guarantee Program Featured

The OCC has published the September 2008 Community Development Insights report which features articles regarding bank participation in the SBA's 7(a) Loan Guarantee Program and highlights how banks can use the program to develop new business, mitigate risk, and help meet their CRA goals. Community Development Insights  9/19/08

Survey of Terms of Business Lending

The E.2 Survey of Terms of Business Lending for the period August 4- 8, 2008 has been released by the FRB. E.2  9/19/08

Flow Of Funds Report Released

The FRB has released the Z.1 Flow Of Funds Report for the Second Quarter 2008. Z.1  9/19/08

Iranian Military Firms Added to OFAC List

The Treasury has designated six Iranian military firms that are owned or controlled by entities previously designated for their roles in Iran's nuclear and ballistic missile programs and added their names to the SDN List with the Nonproliferation (NPWMD) notation. Information regarding the additions has been posted on the BOL OFAC page.  9/18/08

AIG Loan Details

The FRB, with the full support of the Treasury Department, has authorized the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG). AIG  9/18/08

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and between Hastings Bancorp, Inc., Hastings, Nebraska, a registered bank holding company that owns and controls Hastings State Bank, Hastings, Nebraska, a state chartered nonmember bank, and the Federal Reserve Bank of Kansas City. Agreement  9/18/08

CU Liquidated

The NCUA has placed Interfaith Federal Credit Union of East Orange, New Jersey, into liquidation. The NCUA Asset Management and Assistance Center will issue checks to individuals holding verified share accounts in the Interfaith Federal Credit Union within one week. Liquidation   9/18/08

Fryzel to Take Strong Assertive Approach

In a presentation to the National Association of Federal Credit Unions, Chairman Fryzel announced his intent to take strong and decisive steps to preserve confidence in the credit union industry. He stated, "Now is not the time for a 'business as usual,' passive approach…Where I see a balance sheet problem, I will move decisively to resolve it. Where I see adverse trends, I will take steps to correct them. And where activities carry unacceptably high levels of risk and expose consumers to potential loss, I will intervene decisively." Speech  9/18/08

Bair Discusses Foreclosure Mitigation Efforts

In testimony before the House Financial Services Committee, Chairman Bair discussed the strategies taken by the FDIC to avoid unnecessary foreclosures, including implementation of the HOPE for Homeowners Act of 2008 and recent loan modification efforts at IndyMac Federal Bank. Speech  9/18/08

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of The Edgartown National Bank, Edgartown, Maine. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  9/17/08

FRB Publishes Technical Amendment to Final Rule in FR

The Board is publishing amendments to Regulation B (Equal Credit Opportunity Act) to update the address where questions should be directed concerning creditors for which the Office of Thrift Supervision administers compliance with the regulation. Text;
PDF  9/17/08

Fed Funds Rate /Unchanged

The Federal Open Market Committee (FOMC) has announced that it has decided to keep its target for the federal funds rate at 2 percent. Rates  9/17/08

Hurricane Ike Update

The FRB Financial Service has updated its Hurricane Ike Web page with data current as of 2 p.m. CDT on September 16, 2008. Ike Update  9/17/08

Ike Recovery Guidance

The FDIC has issued a FIL containing Guidance in the form of a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of Louisiana and Texas affected by Hurricane Ike. FIL; Guidance  9/17/08

Formation of Regional Disaster Recovery Coalitions

A CEO Letter has been issued by OTS announcing the release of a brochure that describes the benefits for members of the financial services industry of joining a regional coalition to prepare for recovery after a disaster. CEO Letter; Brochure  9/17/08

October HOEPA Rates Established

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for certain applications received in October 2008, 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. H.15  9/17/08

Iraqi Individuals and Entities Added to OFAC List

The Treasury has designated five individuals and two entities under Executive Order 13438 for threatening the peace and stability of Iraq and the Government of Iraq. The names of the individuals and the entities have been added to the SDN List with the IRAQ3 designation. Information regarding the additions has been posted on the BOL OFAC page.  9/17/08

Stakeholder Letter Issued

A FIL has been issued regarding a Letter to Stakeholders from FDIC Chairman Sheila Bair, which reports on the FDIC's activities and accomplishments during the second quarter of 2008. FIL; Stakeholder Letter  9/17/08

July TIC Data Released

The Treasury International Capital (TIC) data for July 2008 has been released. TIC  9/17/08

FRB Financial Support Initiatives Announced

The FRB has announced several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities. They include:

• collateral eligible to be pledged at the Primary Dealer Credit Facility (PDCF) has been broadened to closely match the types of collateral that can be pledged in the tri-party repo systems of the two major clearing banks;
• collateral for the Term Securities Lending Facility (TSLF) also has been expanded; eligible collateral for Schedule 2 auctions will now include all investment-grade debt securities;
• Schedule 2 TSLF auctions will be conducted each week; and
• adoption an interim final rule that provides a temporary exception to the limitations in section 23A of the Federal Reserve Act.

Initiatives; PDCF; TSLF; 23A Exception  9/16/08

SEC and Treasury Statements Regarding Lehman Brothers

The SEC has issued two statements regarding recent market events and Lehman Brothers. In addition, Treasury Secretary Paulson has issued a statement regarding the actions of the SEC and the Federal Reserve concerning Lehman Brothers. Initial SEC Statement; Revised SEC Statement; Paulson Statement  9/16/08

Early Savings Bond Redemptions

Savings bond agents serving specified Louisiana parishes, Texas counties, Florida counties recently affected by severe weather have been authorized by FRB Financial Services to redeem EE and I savings bonds less than one year old presented during the months of September and November 2008. Early Redemptions  9/16/08

CRA Ratings Released

The OCC has released the ratings received by nineteen national banks recently evaluated fro compliance with the provisions of the Community Reinvestment Act (CRA). Ratings  9/16/08

Tier 1 Capital Goodwill Deduction NPR

The FRB has issued a requested public comment on an interagency notice of proposed rulemaking (NPR) that would permit a banking organization to reduce the amount of its goodwill deduction from tier 1 capital by any associated deferred tax liability. NPR  9/16/08

Evaluation of FASB's Accounting Proposals

The federal banking agencies are evaluating the amendments to generally accepted accounting principles proposed by the Financial Accounting Standards Board (FASB) which would amend Statement of Financial Accounting Standards No. 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities (FAS 140), and FASB Interpretation No. 46(R), Consolidation of Variable Interest Entities (FIN 46(R)). 140; 46(R); FRB NR; OCC NR; FDIC PR  9/16/08

Holiday Currency Ordering Schedule

The FRB Financial Services has released the schedule for ordering of currency for the holiday season. Schedule  9/16/08

FDIC Information Sharing

The FDIC has announced the execution of information sharing agreement with the New York and Texas state banking departments. New York; Texas  9/16/08

Cost of Funds Reports

The OTS has released the current and historical report of cost of funds to OTS regulated institutions. Current; Historical  9/16/08

Minority-Owned Banks

The FRB has issued the report of Minority-Owned Banks Report as of June 30, 2008. Report  9/16/08

G.17 Industrial Production Report

The G. 17 Industrial Production and Capacity Utilization Report for August 2008 has been released by the FRB. G.17  9/16/08

September FedFlash Published

The September 2008 issue of FedFlash has been published by FRB Financial Services. The issue includes article on: holiday currency; submitting feedback to FRB Financial Services; new FedReceipt RTNs; Check 21 operations freeze; and processing of Canadian items. FedFlash  9/16/08

Hurricane Ike Federal Reserve Services Update

The FRB Financial Services has posted a link to data from the Dallas Fed regarding business operations during Hurricane Ike. Link  9/15/08

Info on Thrifts Affected by Hurricanes

The OTS has posted a link to information regarding institutions that are open or closed due to hurricanes. Info  9/15/08

Banks Authorized to Close

The OCC has issued a proclamation allowing national bank offices affected by Hurricane Ike to close at their discretion. Proclamation  9/15/08

Kingpin Act OFAC Designations

OFAC has designated three Venezuelan Government Officials under the provisions of the Kingpin Act for materially assisting the narcotics trafficking activities of the Revolutionary Armed Forces of Colombia (FARC), a narco-terrorist organization. Their names have been added to the SDN List with the SDNTK designation. Information concerning the additions has been posted on the BOL OFAC page.  9/15/08

Agencies Release Joint Mortgage Metrics Report

The OCC and the OTS have issued a joint report on the performance of approximately 60 percent of all first lien mortgages outstanding in the United States. Report; OCC NR  9/15/08

Working Papers Published

The FRB has published five working papers in the Finance and Economics Discussion Series (FEDS) and International Finance Discussion Papers (IFDP) series on the following topics:

• Effects of Liquidity on the Nondefault Component of Corporate Yield Spreads: Evidence from Intraday Transactions Data;
• The Causes and Consequences of Economic Restructuring: Evidence from the Early 21st Century;
• Borrowing From Yourself: 401(k) Loans and Household Balance Sheets;
• Distress in the Financial Sector and Economic Activity;
• Constructive Data Mining: Modeling Argentine Broad Money Demand; and
• The Macroeconomic Effect of External Pressures on Monetary Policy.

Effects Abstract; Effects Full Paper; Causes Abstract; Causes Full Paper; Borrowing Abstract; Borrowing Full Paper; Distress Abstract; Distress Full Paper; Constructive Abstract; Constructive Full Paper; Macroeconomic Abstract; Macroeconomic Full Paper  9/15/08

FRB Publishes Technical Amendment to Final Rule in FR

The Board of Governors (Board) is amending appendix A of Regulation CC to delete the reference to the Jacksonville branch office of the Federal Reserve Bank of Atlanta and to reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Atlanta. These amendments reflect
the restructuring of check-processing operations within the Federal Reserve System. Text;
PDF  9/12/08

FTC Testifies on the "Call Center Consumer's Right to Know Act"

The Federal Trade Commission provided testimony today before the U.S. House of Representatives' Committee on Energy and Commerce, Subcommittee on Commerce, Trade, and Consumer Protection regarding H.R. 1776, legislation entitled the "Call Center Consumer's Right to Know Act." Act  9/12/08

Federal Financial Institution Regulators Announce Availability of 2007 Data on Mortgage Lending

The Federal Financial Institutions Examination Council (FFIEC) today
announced the availability of 2007 data on mortgage lending transactions throughout the
nation at 8,610 financial institutions covered by the Home Mortgage Disclosure Act
(HMDA). Covered institutions include, but are not limited to, banks, savings
associations, credit unions, and independent mortgage companies. The HMDA data
made available today cover lending activity – applications for loans, loan originations
and denials, and purchases of loans – from 2007. Press Release  9/12/08

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of National Iron Bank, Salisbury, Connecticut. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  9/11/08

Iranian Companies Added to OFAC List

Treasury has designated the Islamic Republic of Iran Shipping Lines (IRISL), and 18 other affiliated entities as Nonproliferation Weapons of Mass Destruction (NPWMD) and added their names to the SDN List, for providing logistical services to Iran's Ministry of Defense and Armed Forces Logistics (MODAFL). Information regarding the designated entities has been posted on the BOL OFAC list.  9/11/08

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among Newnan Coweta Bancshares, Inc., a registered bank holding company, Neighborhood Community Bank, a state chartered member bank, the Federal Reserve Bank of Atlanta, and the Banking Commissioner of the State of Georgia. Written Agreement  9/11/08

Reg R Reminder

The FDIC has issued a FIL reminding banks that on the first day of an institution's fiscal year beginning after September 30, 2008, the institution must comply with the requirements of Regulation R and GLBA. FIL  9/11/08

Dugan On Fair Lending

In a presentation at the OCC Fair Lending Conference in New Orleans, Comptroller Dugan stated that the present turmoil in credit markets should not distract bankers and lenders from the important priority of fair lending. He emphasized that all qualified borrowers should have access to financial services and credit, free of unlawful discrimination. He noted that nobody can realistically expect to review millions of loan applications one file at a time for compliance with fair lending laws and regulations. Speech  9/11/08

Credit Auction Results

The results of the auction of $25 billion in 28-day credit held on September 9, 2008, have been released by the FRB. Auction  9/11/08

Bear Stearns To Pay $28 Million

The FTC has announced that the Bear Stearns Companies, LLC and its subsidiary, EMC Mortgage Corporation, have agreed to pay $28 million to settle FTC charges that they engaged in unlawful practices in servicing consumers' home mortgage loans. Settlement  9/10/08

314(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet with data current as of September 9, 2008. 314(a)  9/10/08

The OCC Publishes Final Rule in Federal Register for Assessment of Fees

The Office of the Comptroller of the Currency (OCC) is adopting as final and without change the interim final assessments rule issued on February 19, 2008. That rule added two new
asset-size categories to the table in 12 CFR 8.2(a) used to calculate each national bank's semiannual assessment. Text;
PDF  9/10/08

Credit Auction Results

The FRB has announced the results of the auction of $25 billion in 84-day credit held on September 8, 2008. Auction  9/10/08

State Profiles Updated

The FDIC has released the Second Quarter 2008 State Profiles which contain a quarterly data sheet summation of banking and economic conditions in each state. State Profiles  9/10/08

New OFAC Enforcement Guidelines

OFAC has issued new Economic Sanctions Enforcement Guidelines as enforcement guidance for persons subject to the requirements of U.S. sanctions statutes, Executive orders and regulations. The Guidelines, which are effective immediately, supersede the Enforcement Procedures for Banking Institutions and have been published as an interim final rule with a request for comments due November 7, 2008. Information regarding the new Guidelines has been posted on the BOL OFAC page in the Other OFAC Resources section.  9/09/08

Reg CC Amendments

The FRB has announced amendments to Appendix A of Regulation CC that reflect the restructuring of the Federal Reserve's check processing operations in the Sixth District. BOL's Alphabet Soup copy of Appendix A has already been updated to reflect this change. Amendments  9/09/08

Change in Control Legal Interpretation Published

A Legal Interpretation letter has been published by the FRB regarding allowing the exercise of an option without the filing of an application to the Board under the Bank Holding Company Act. Letter  9/09/08

Consumer Credit Report Released

The G.19 Consumer Credit Outstanding and Terms of Credit Report for July 2008 has been released by the FRB. G.19  9/09/08

Fanny and Freddie Conservatorship Announced

Treasury Secretary Paulson and Federal Housing Finance Agency (FHFA) Director Lockhart have announced that the government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, have been placed into conservatorship. A four step program was implemented including the increase in mortgage-backed (MBS) portfolios; the establishment of Preferred Stock Purchase Agreements; the establishment of a new secured lending credit facility (GSECF) which will be available to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks; and the initiation by Treasury of a temporary program to purchase GSE MBS. Paulson Statement; Lockhart Statement; Bernanke Statement; Conservatorship Fact Sheet; Stock Purchase Agreement Fact Sheet; GSECF Fact Sheet; GSE MSB Purchase Fact Sheet  9/08/08

Agencies Respond to Freddie/Fannie Conservatorship

The Federal banking agencies have issued a joint release on the placing of Freddie Mac and Fannie Mae into conservatorship. OCC NR; FRB PR; FDIC PR; OTS PR  9/08/08

Nevada Bank Closed Insured Deposits Acquired

The FDIC has announced that Silver State Bank, Henderson, Nevada, has been closed by the Nevada Financial Institutions Division; the FDIC was named Receiver and entered into a Purchase and Assumption Agreement with Nevada State Bank, Las Vegas, Nevada, to assume the insured deposits. Closed  9/08/08

Hurricane Season SR Letter

The FRB has issued a SR Letter regarding assisting borrowers and customer affected by Hurricane Gustav and any subsequent hurricanes. SR Letter  9/08/08

Early Savings Bond Redemptions Authorized

The FRB Financial Services has announced that savings bond agents located in Louisiana parishes recently affected by severe weather are authorized to redeem EE and I savings bonds less than one year old presented during the months of September and October 2008. Redemptions  9/08/08

CRA Ratings Released

The FDIC has released the ratings received by state nonmember banks recently examined for compliance with the provisions of the Community Reinvestment Act (CRA). Ratings  9/08/08

MSB Registration List Updated

FinCEN has updated the MSB Registration List to include registrations as of August 14, 2008. List  9/08/08

Large Commercial Banks Consolidated Assets Second Quarter Data Released

The FRB has released the second quarter 2008 data on domestically chartered insured commercial banks that have consolidated assets of $300 million or more. Data  9/08/08

Second Quarter Charge-Off Rates

The OTS has released the thrift charge-off rates report for the second quarter 2008. Charge-off Rates  9/08/08

Nine Counterfeit Checks Special Alerts

The FDIC has issued nine Special Alerts regarding counterfeit cashier's and official checks bearing the name of the following institutions:

• Lake City Bank, Warsaw, Indiana (Counterfeit Cashier's Checks);
• Edgartown National Bank, Edgartown, Massachusetts (Counterfeit Cashier's Checks);
• Provident Community Bank, National Association, Rock Hill, South Carolina (Counterfeit Official Checks);
• Dairy State Bank, Rice Lake, Wisconsin (Counterfeit Official Checks);
• Fidelity Bank, Wichita, Kansas (Counterfeit Cashier's Checks);
• Milledgeville State Bank, Milledgeville, Illinois (Counterfeit Cashier's Checks);
• Northstar Bank of Texas, Denton, Texas (Counterfeit Cashier's Checks);
• Morrill and Janes Bank and Trust Company, Merriam, Kansas (Counterfeit Cashier's Checks) and;
• Piedmont Bank, Huntersville, North Carolina (Grant County Bank, Medford, Oklahoma) (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  9/05/08

Order of Prohibition Issued

The FRB has issued an Order of Prohibition against Roslyn Y. Terry which prohibits her from participating in any manner in conducting the affairs of any insured depository institution or any holding company of an insured depository institution. Ms. Terry, without admitting to any allegations, consented to the issuance of the Order, which was based on her alleged participation in violations of law, unsafe and unsound banking practices, and breaches of fiduciary duty and its customers in connection with her embezzlement of funds from the bank and falsification of the bank's books and records. Order  9/05/08

Mortgage Lending Forum Best Practices

The FDIC has issued an FIL containing highlights of the best practices that were discussed its recent Forum on Mortgage Lending for Low- and Moderate-Income (LMI) Households. FIL; Best Practices  9/05/08

CU Placed in Conservatorship

The NCUA has assumed control of the operations of Valley Credit Union, a state-chartered, federally insured credit union headquartered in San Jose, California, after being appointed as conservator by the California Division of Financial Institutions. Conservatorship  9/04/08

CRA Ratings

The OTS has announced the ratings received by savings associations that were recently evaluated for compliance with the provisions of the Community Reinvestment Act (CRA). Ratings  9/04/08

Gustav Relief FIL

The FDIC issued a FIL that announces a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of Alabama, Mississippi, Louisiana and Texas affected by Hurricane Gustav. FIL  9/04/08

Hanna Bank Closings

The OCC has issued a proclamation that allows national bank offices affected by Tropical Storm Hanna to close. Proclamation  9/04/08

Beige Book

The FRB has published the August 2008 issue of the Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their respective districts. Beige Book  9/04/08

IFDP Working Pape

A working paper in the International Finance Discussion Paper (IFDP) series on the topic of "The Asian Financial Crisis, Uphill Flow of Capital, and Global Imbalances: Evidence from a Micro Study" has been published by the FRB. Abstract; Full Paper  9/04/08

Counterfeit Cashier's Checks Alert

The OCC has issued an Alert regarding counterfeit cashier's checks issued in the name of Southwest National Bank of Wichita, Kansas. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  9/03/08

FDIC CRA Exam Schedule

The FDIC has released its CRA examination schedule for the fourth quarter 2008. Schedule  9/03/08

Interagency Exam Procedures

The FRB has issued three Consumer Affairs Letters regarding the interagency examination procedures for Regulations Z, M and E and the Affiliate Marketing Regulation. Regs Z and M; Reg E; Affiliate Marketing  9/03/08

Written Agreement

The FRB has announced the execution of a Written Agreement by and among Orion Bancorp, Inc. and Orion Bank, both of Naples, Florida, the Federal Reserve Bank of Atlanta, and the State of Florida Office of Financial Regulation. Agreement  9/03/08

75th Federal Credit Union Anniversary Symposium

The NCUA has announced that a free two-day symposium recognizing the 75th Anniversary of the signing of the Federal Credit Union Act will be held June 9 and 10, 2009, at the Hyatt Regency Washington D.C. on Capitol Hill. Symposium  9/03/08

Reserve Position Report

The Treasury has updated the U.S. International Reserve Position Report with data current as of August 29, 2008. Report  9/03/08

Foreign Exchange Rates

The G.5 Foreign Exchange Rates Report for August 2008 has been released by the FRB. G.5  9/03/08

Discount Rate Meeting Minutes

The FRB has issued the minutes of FRB discount rate meetings held on July 7 through August 4, 2008. Minutes  9/03/08

Flood CMPs Announced

The FDIC has announced nine civil money penalties that were recently assessed against banks. Information regarding the CMPs has been posted on the BOL Flood Penalties Watch page.  9/02/08

Georgia Bank Closed Assets Assumed

The FDIC has announced that Integrity Bank, Alpharetta, Georgia, has been closed by the Georgia Department of Banking and Finance; the Federal Deposit Insurance Corporation named receiver and the assumption of all the deposits by Regions Bank, Birmingham, Alabama. Closed  9/02/08

Reg R Compliance Guide Released

The FRB has released its Small Entity Compliance Guide for Regulation R. Regulation R implements certain of the key exceptions for banks from the definition of the term "broker" under Section 3(a)(4) of the Securities Exchange Act of 1934. The guide provides a general description of the regulation and contact information for small entities with questions regarding compliance. Guide  9/02/08

Enforcement Actions

The FDIC has released a list of twenty-five orders of administrative enforcement actions taken against banks and individuals in July 2008. Enforcement  9/02/08

Banks Authorized to Close

The OCC has issued a proclamation that allows national bank offices affected by Hurricane Gustav to close. Proclamation  9/02/08

CRA Examination Schedule

The OCC has issued its Fourth Quarter 2008 CRA examination schedule. Schedule  9/02/08

Weather Damage Guidance

The FDIC has issued a FIL announced a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of Florida affected by recent severe storms, tornadoes and flooding. FIL  9/02/08

New Electronic Interpretations and Actions

The August 2008 New Electronic Interpretations and Actions has been released by the OCC. August  9/02/08