Top Stories for October 2008

Counterfeit Checks Special Alerts

The FDIC has issued three Special Alerts regarding counterfeit checks bearing the name of the following financial institutions:

• Intercity State Bank, Schofield, Wisconsin (Counterfeit Cashier's Checks);
• FirstAtlantic Bank, Jacksonville, Florida (Counterfeit Checks);
• The Citizens State Bank of Cortez, Cortez, Colorado (Counterfeit Cashier's Checks)

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  10/31/08

LIFG Members Added to OFAC List

The Treasury today designated three members of the Libyan Islamic Fighting Group (LIFG) and added their names to the SDN List with the Specially Designated Global Terrorist (SDGT) notation. Information regarding the additions has been posted on the BOL OFAC page.  10/31/08

Written Agreement With Wyoming BHC

The FRB has announced the execution of a Written Agreement by and between State Holding Company, Thermopolis, Wyoming, a registered bank holding company, and the Federal Reserve Bank of Kansas City. Agreement  10/31/08

FRB Services 2009 Fee Schedule

The fee schedules for payment services the Federal Reserve Banks provide to depository institutions (priced services), effective January 2, 2009, has been announced. Fee Schedules  10/31/08

1% Fed Funds

The Federal Open Market Committee has lowered its target for the federal funds rate 50 basis points to 1 percent. The Board of Governors also unanimously approved a 50-basis-point decrease in the discount rate to 1-1/4 percent which was requested by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Cleveland, San Francisco, Chicago, Kansas City, and St. Louis. Fed Funds; Discount  10/30/08

Fannie/Freddie Preferred Stock Tax Treatment Guidance

The Treasury and the IRS have issued Revenue Procedure 2008-64 (Rev. Proc. 2008-64) which provides that certain gains and losses from indirect ownership of Fannie Mae and Freddie Mac preferred stock can be treated as ordinary income and loss. Guidance; Rev. Proc. 2008-64  10/30/08

More International Currency Arrangements Announced

The Federal Reserve, Banco Central de Brasil, Banco de Mexico, Bank of Korea, and the Monetary Authority of Singapore have announced the establishment of temporary reciprocal currency arrangements. Arrangements  10/30/08

Working Papers Published

The FRB has published five working papers, four in the Finance and Economics Discussion Series (FEDS) and one in the International Finance Discussion Papers (IFDP) series.

FEDS

• Do Behavioral Biases Adversely Affect the Macro-Economy?
• Property Taxes and Elderly Mobility
• Property Taxes and Elderly Labor Supply
• Research and development, profits and firm value: A structural estimation

IFDP

• Assessing the Potential for Further Foreign Demand for U.S. Assets: Has Financing U.S. Current Account Deficits Made Foreign Investors Overweight in U.S. Securities?

Behavioral Abstract | Behavioral Full Paper | Elderly Mobility Abstract | Elderly Mobility Full Paper | Elderly Labor Abstract | Elderly Labor Full Paper | Research Abstract | Research Full Paper | Assessing Abstract; | Assessing Full Paper   10/30/08

Threatening Letters Special Alert

A Special Alert has been issued by the FDIC containing a statement regarding threatening and potentially dangerous letters which may be received by a financial institution through the U.S. mail. Over 30 letters containing a white powder have been received by institutions in nine states and the District of Columbia. BOL issued a Mail Handling Procedures Special Briefing on October 23, 2008 which contained links to information regarding "Tips for Handling Suspicious Mail" and "Anthrax-Knowledge is Power." Special Alert  10/29/08

Written Agreement with Florida BHC

The execution of a Written Agreement by and among Remo DuQuoin LLC, Privee LLC, Republic Federal Bancorp, Inc., registered bank holding companies, Miami, Florida, and the Federal Reserve Bank of Atlanta has been announced. Agreement  10/29/08

The FDIC Publishes Interim Rule in FR for Temporary Liquidity Guarantee Program

The FDIC is issuing this Interim Rule following a determination of systemic risk pursuant to section 13(c)(4)(G) of the Federal Deposit Insurance Act. As a result of this systemic risk determination, and in an effort to avoid or mitigate
serious adverse effects on economic conditions or financial stability,
the FDIC is establishing the Temporary Liquidity Guarantee Program. This program has two primary components: the Debt Guarantee Program, by which the FDIC will guarantee the payment of certain newly-issued senior unsecured debt, and the Transaction Account Guarantee Program, by which the FDIC will guarantee certain noninterest-bearing transaction accounts.PDF  Text  10/29/08

Phishing Emails Special Alert

The FDIC has issued a Special Alert warning financial institutions and consumers regarding phishing emails that appear to be from, or related to, financial institutions involved in high-profile mergers, acquisitions or failures which may request recipients to verify computer logon credentials, update personal information, or activate new online security features. Special Alert  10/29/08

FedCash Applications Unavailable

The FRB Financial Services has announced that system utilizing the FedCash application will be unavailable during the weekend of November 1-2 due to system upgrades. FedCash  10/29/08

CRA Ratings Released

The OCC has released the rating received by twenty-four national banks that were recently examined for compliance with the provisions of the CRA. Ratings  10/29/08

Dugan Responds to National City Acquisition Questions

Comptroller Dugan has issued a written response to questions raised by Congressman LaTourette about the acquisition of National City Corporation by PNC Financial Services Group. Response  10/29/08

US NZ Swap Line Arrangement

The FRB and the Reserve Bank of New Zealand have announced the establishment of a temporary reciprocal currency arrangement (swap line) to address ongoing, elevated pressures in U.S. dollar short-term funding markets. Swap Line  10/29/08

The FRB Proposes Rulemaking for Missing comments submitted through the Federal Rulemaking Portal

Because of a software problem at the Federal eRulemaking Portal (http://www.regulations.gov), the Board did not receive certain public comments submitted through that portal. This problem affected comments on four of the Board's proposed rules [Docket Nos. R-1286; R-1314, R-1315; and R-1316] that were submitted only through the Federal eRulemaking Portal between March 22, 2008, and September 8, 2008. A total of 83 comments on the four proposals were not relayed to the Board. As set forth below, the Board will accept resubmission of those comments that were not received.  PDF  Text  10/28/08

Agencies Issue Statement Regarding Freddie/Fannie Stock Losses

The federal banking and thrift regulatory agencies have issued an interagency statement to notify banking organizations that the agencies will allow banking organizations to recognize the effect of the tax change enacted in Section 301 of the Emergency Economic Stabilization Act of 2008 (EESA) in their third-quarter 2008 regulatory capital calculations. Statement; OCC Bulletin  10/27/08

SCRA Bulletin

The OCC has issued a bulletin that contains the legal requirements regarding the Servicemembers Civil Relief Act (SCRA).   Bulletin10/27/08

FDIC Insurance Mortgage Servicers' Accounts

The FDIC has issued a FIL regarding the adoption of a previously announced interim rule to simplify the deposit insurance rules for accounts held at FDIC-insured institutions by mortgage servicers. FIL; Interim Rule  10/27/08

Red Flag Exam Procedures

The OTS has issued a CEO Letter regarding examination procedures for ID Theft Red Flags and Address Discrepancies. CEO Letter  10/27/08

Joint Agencies Propose Rulemaking for Minimum Capital Ratios; Treatment of Certain Claims on, or Guaranteed by, Fannie Mae and Freddie Mac

On September 7, 2008, the U.S. Department of Treasury (Treasury) entered into senior preferred stock purchase agreements (the Agreement or Agreements) with the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac), which effectively provide protection to the holders of senior debt, subordinated debt, and mortgage-backed securities (MBS) issued or guaranteed by these entities. In light of the financial support provided under the Agreements, the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), and Office of Thrift Supervision (OTS) (collectively, the agencies) are proposing to adopt a 10 percent risk weight for claims on, and the portion of claims guaranteed by, Fannie Mae or Freddie Mac. The 10 percent risk weight would apply so long as an Agreement remains in effect with the respective entity.  PDF  Text   10/27/08

The FRB Publishes Correcting Amendments to Final Rule in FR for Capital Adequacy Guidelines

The Board published an interim final rule with request for public comment in the Federal Register on October 22, 2008 ( 73 FR 62851), providing that bank holding companies that issue new senior perpetual preferred stock to the U.S Department of Treasury under the capital purchase program announced by the Secretary of the Treasury on October 14, 2008, may include such capital instruments in Tier 1 capital for purposes of the Board's risk-based and leverage capital rules and guidelines for bank holding companies. The Public Law was cited incorrectly. This document corrects the citation in footnote 1 of the Supplementary Information and in the interim final regulation by revising these sections.  PDF  Text   10/27/08

The OTS Publishes Final Rule in FR for Rules of Practice and Procedure in Adjudicatory Proceedings; Civil Money Penalty Inflation Adjustment

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. OTS last adjusted its CMP statutes in 2004. Consequently, OTS is issuing this final rule to implement the required adjustments to OTS's CMP statutes.  PDF  Text   10/27/08

Georgia Bank Closed Deposits Assumed

The Alpha Bank and Trust, Alpharetta, Georgia, was closed by the Georgia Department of Banking and Finance and the FDIC was named receiver. The FDIC has entered into a purchase and assumption agreement with Stearns Bank, National Association, St. Cloud, Minnesota, to assume the insured deposits. Closed10/27/08

Section 19 Letters Released

Four letters regarding Section 19 penalties assessed against individuals have been released by the FRB. The individuals are prohibited from continuing or becoming an institution-affiliated party regarding a financial institution or a credit union. Letter 1; Letter 2; Letter 3; Letter 4 10/27/08

Dugan Discusses OCC Response To Economic Challenges

In a speech to OCC managers, Comptroller Dugan discussed the agency's response to market events of the past year and lessons learned from those events. Speech10/27/08

Poverty Report Released

The FRB has released "The Enduring Challenge of Concentrated Poverty: Case Studies from Communities Across the U.S.," a Systemwide Federal Reserve research effort that examines the diverse landscape of concentrated poverty in America. Poverty Report10/27/08

FTC Suspends Red Flag Enforcement

The FTC has announced the suspension of enforcement of its new "Red Flags Rule" until May 1, 2009, to give FTC-supervised creditors and financial institutions additional time to develop and implement written identity theft prevention programs. The FTC action does not affect enforcement of the original November 1, 2008, deadline for compliance by institutions subject to oversight by other federal agencies.  Red Flags   10/24/08

Bair Testifies On Financial Markets and Foreclosures

In testimony before the Senate Banking Committee, FDIC Chairman Bair reviewed recent efforts to stabilize the nation's financial markets and reduce foreclosures. She noted that minimizing foreclosures is important to the broader effort to stabilize global financial markets and the U.S. economy. She indicated that the FDIC, as conservator for IndyMac Federal Bank, F.S.B., has inherited responsibility for servicing a pool of approximately 712,000 mortgage loans, including more than 60,000 loans that are more than 60 days past due. She stated the FDIC has mailed more than 15,000 loan modification proposals to borrowers and has called many thousands more in continuing efforts to help avoid unnecessary foreclosures.
Testimony   10/24/08

Regulatory Simplification Proposed

FinCEN has announced a proposal to separate BSA regulations into general and industry-specific parts so that a financial institution will be able to identify its obligations under the BSA in a more organized and understandable manner.
Press Release  Proposal   10/24/08

FDIC Issues Interim Rule to Implement the Temporary Liquidity Guarantee Program

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved an interim rule to govern its newly created Temporary Liquidity Guarantee Program (TLGP). While the rule is effective immediately, comments will be taken for a 15-day period. Proposed as a new 12 CFR Part 370, the regulation defines parameters of the program and clarifies issues of coverage, including certain "sub-account" sweep arrangements used to manage banks' reserve requirements.   Announcement  Interim Rule   10/24/08

NCUA Asks for Parity for Coverage of Non-interest Bearing Transaction Accounts

NCUA has requested Treasury to include credit union accounts in the recently expanded deposit insurance coverage of non-interest bearing transaction deposit accounts. Insurance   10/24/08

FRB Publishes Revisions to HMDA Reg C in Federal Register

The Board is publishing final rules to amend Regulation C (Home Mortgage Disclosure) to revise the rules for reporting price information on higher-priced loans. The rules are being conformed to the definition of "higherpriced mortgage loan" adopted by the Board under Regulation Z (Truth in Lending) in July of 2008. The final rule is effective 10/1/2009. Compliance is mandatory for loan applications taken on and after that date and for loans that close on and after January 1, 2010 (regardless of their application dates). This story was first reported in BOL's Top Stories on 10/21/08.
  PDF  Text   10/24/08

FDIC Invites Comment Resubmissions Due to Technical Glitch

The FDIC published in the Federal Register two limited invitations to resubmit comments that were lost because of a "technical software error." The first invitation is for resubmission of comments on the FDIC’s Interim Final Rule and Request for Comment involving "Financial Education Programs That Include the Provision of Bank Products and Services." The second invitation is for resubmission of comments on the FDIC’s Notice of Proposed Rulemaking involving "Processing of Deposit Accounts in the Event of an Insured Depository Institution Failure and Large-Bank Deposit Insurance Determination Modernization."   10/24/08

Bank Added to OFAC List

Treasury has designated the Export Development Bank of Iran (EDBI) for providing or attempting to provide financial services to Iran's Ministry of Defense and Armed Forces Logistics. Three additional entities which were determined to be owned or controlled by or acting or purporting to act for or on behalf of, directly or indirectly, the EDBI were also designated and along with EDBI were added the SDN List with the NPWMD notation. The names of seven individuals were also deleted from the List. Information regarding the additions and deletions has been posted on the BOL OFAC page.   10/23/08

Excess Balances Interest Rate to Change

The FRB has announced that it will alter effective October 23, 2008, the formula used to determine the interest rate paid to depository institutions on excess balances. Interest Rate   10/23/08

Written Agreement Announced

The execution of a Written Agreement by and between Bank of Canton, Canton, Pennsylvania, a state chartered member bank, and the Federal Reserve Bank of Philadelphia has been announced by the FRB.   Agreement   10/23/08

SAR Activity Review Published

The 14th issue of the SAR Activity Review Trends, Tips and Issues has been published by FinCEN.
   Review   10/23/08

FDIC to Host IADI Conference

The FDIC has announced that it will host the 7th Annual Conference of the International Association of Deposit Insurers (IADI) on October 29 and 30, 2008, at itsVirginia Square complex in Arlington, Virginia.  
Conference   10/23/08

Treasury Names Interim Chief Investment Officer for TARP

The Treasury Department named James H. Lambright this week to serve as the interim Chief Investment Officer for the Troubled Asset Relief Program authorized by Congress earlier this month. Lambright will serve on an interim basis until the position is filled permanently. He will provide counsel to Secretary Henry M. Paulson, Jr. and Interim Assistant Secretary for the Office of Financial Stability Neel Kashkari as they develop and implement the program.  
Announcement   10/23/08

MMIFF Created

The FRB has announced the creation of the Money Market Investor Funding Facility (MMIFF), which will support a private-sector initiative designed to provide liquidity to U.S. money market investors. MMIFF  10/22/08

The FRB Publishes Interim Final Rule in FR for Capital Adequacy Guidelines

This rule specifically permits bank holding companies that issue new senior perpetual preferred stock to the Treasury under the capital purchase program announced by the Secretary of the Treasury on October 14, 2008, to include such capital instruments in Tier 1 capital for purposes of the Board's risk-based and leverage capital rules and guidelines for bank holding companies. TXT; PDF  10/22/08

The NCUA Publishes Interim Final Rule in FR for Display of Official Sign; Temporary Increase in Standard Maximum Share Insurance Amount; Coverage for Custodial Loan Accounts

NCUA is amending its share insurance rules to reflect Congress's recent action to increase temporarily the standard maximum share insurance amount (SMSIA) from $100,000 to $250,000 and increase coverage for custodial loan accounts. NCUA also is providing insured credit unions with additional options for displaying NCUA's official sign. TXT; PDF  10/22/08

The NCUA Publishes Final Rule in FR for Incidental Powers

NCUA is amending its regulation governing a federal credit union's (FCU's) incidental powers by adding illustrations of permissible activities under the categories of correspondent services, operational programs, and finder activities. TXT; PDF  10/22/08

The NCUA Proposes Rulemaking in FR for Accuracy of Advertising and Notice of Insured Status

Section 740.4 of NCUA's rules requires that a federally insured credit union continuously display the official NCUA sign at every teller station or window where insured funds or deposits are normally received. Section 740.4(c) requires that tellers accepting share deposits for both federally insured credit unions and nonfederally insured credit unions also post a second sign adjacent to the official NCUA sign. Currently, the rules require this second sign to list each federally insured credit union served by the teller along with a statement that only these credit unions are federally insured. TXT; PDF  10/22/08

Credit Auction Results

The results of auction of $150 billion in 28-day credit held on October 20, 2008, have been announced by the FRB. Results  10/22/08

FRB Wells Fargo/Wachovia Statement

The FRB has released a thirty-five page statement concerning its action of October 12, 2008, approving the proposal by Wells Fargo & Company, San Francisco, California, to acquire Wachovia Corporation, Charlotte, North Carolina. Statement  10/22/08

314(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet with data current as of October 21, 2008. 314(a) Fact Sheet  10/22/08

Reserve Position Reports Released

The Treasury has released the U.S. International Reserve Position Reports for October 10 and 17, 2008. October 10; October 17  10/22/08

Capital Purchase Program Guidance

The Treasury has issued Guidance regarding the Capital Purchase Program, Secretary Paulson has issued a statement regarding the Program, and a Terms Sheet has been released along with a FAQ. Read all about the Program, the Guidance, Paulson's statement, the term sheet and the FAQ in a BOL Special Briefing.  10/21/08

Reg C Final Amendments Approved

The FRB has announced approval of final amendments to Regulation C that revise the rules for reporting price information on higher-priced mortgage loans. Reg C  10/21/08

Capital Purchase Program Participation Encouraged

The federal banking and thrift regulatory agencies are encouraging all eligible institutions to use Treasury's Capital Purchase Program and the FDIC's Temporary Liquidity Guarantee Program. FRB PR; OCC NR; OTS NR; FDIC PR  10/21/08

Call Report Instructions

The FFIEC has posted online the instructions for Draft Instructions for FFIEC 031 and FFIEC 041. 031; 041  10/21/08

SWIFT Format Cover Payments

The FRB Financial Services and the Clearing House have announced the completion of the distribution of the specifications for banks to remain compatible with the SWIFT enhance message format. SWIFT  10/21/08

Covered Bonds

The OCC has issued a Bulletin regarding the issuance of U.S. Covered Bonds by national banks. Bulletin  10/21/08

EESA Impact On Freddie and Fannie Capital Stock

 
The federal financial institution regulatory agencies have announced that they will allow banking organizations to recognize the effect of the tax change enacted by the Emergency Economic Stabilization Act of 2008 (EESA) in third quarter 2008 regulatory capital calculations. FRB PR; FDIC PR; OCC NR; OTS PR  10/20/08

Enforcement Actions Announced

The OCC has announced the enforcement actions recently taken against national banks and individuals currently and formerly affiliated with national banks. Those actions regarding flood violations have been posted on the BOL Flood Penalties Watch page. Enforcement Actions  10/20/08

November HOEPA Rates Set

The Federal Reserve has posted the new reference rates that lenders must use to determine if loans for certain applications received in November 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  10/17/08

New ID Red Flag FDIC Exam Procedures

A FIL has been issued by the FDIC regarding new examination procedures on identity theft "red flags", address discrepancies, and change of address requests. FIL; Exam Procedures  10/17/08

The FDIC Publishes Interim Rule in FR for Deposit Insurance Regulations; Temporary Increase in Standard Coverage Amount; Mortgage Servicing Accounts

The FDIC is adopting an interim rule to amend its deposit insurance regulations to reflect Congress's recent action to temporarily increase the standard deposit insurance amount from $100,000 to $250,000 and to simplify the deposit insurance rules for funds maintained in mortgage servicing accounts.TXT; PDF  10/17/08

The FRB Publishes Final Rule in FR for Extensions of Credit by Federal Reserve Banks

The Board of Governors of the Federal Reserve System (Board) has adopted final amendments to its Regulation A to reflect the Board's approval of a decrease in the primary credit rate at each Federal Reserve Bank. The secondary credit rate at each Reserve Bank automatically decreased by formula as a result of the Board's primary
credit rate action. TXT; PDF  10/17/08

Temporary Liquidity Guarantee Program Web Site

The FDIC has launched a new dedicated Web Site for the Temporary Liquidity Guarantee Program. Links to press releases, FILs and technical briefings regarding the program are provided. Web Site  10/17/08

Senior Perpetual Preferred Stock Is Tier 1 Capital

The FRB has announced the adoption of an interim final rule that will allow bank holding companies to include in their Tier 1 capital without restriction the senior perpetual preferred stock issued to the Treasury Department under the capital purchase program announced by the Treasury on October 14, 2008. Final Rule  10/17/08

Written Agreements Announced

The FRB has announced the execution of two Written Agreements, one by and between Alliance Bancshares California, a registered bank holding company, and the Federal Reserve Bank of San Francisco; and the other by and among AmericasBank, Towson, Maryland, a state chartered member bank, the Federal Reserve Bank of Richmond, and the Maryland Division of Financial Regulation. Alliance;
AmericasBank  10/17/08

California CU Placed Into Conservatorship

The NCUA has assumed control of the operations of High Desert Federal Credit Union headquartered in Apple Valley, California. Service will continue uninterrupted and members are free to make deposits, access funds, make loan payments and use share drafts. Conservatorship  10/17/08

CRA Ratings Released

The OTS has released the rating received by savings associations that were recently evaluated for compliance with the provisions of the CRA. Ratings  10/17/08

Corporate Credit Union Liquidity Guarantee Program Announced

The NCUA has announced the approval of a temporary corporate credit union liquidity guarantee program that will operate from October 16, 2008, through June 30, 2009. CU Liquidity  10/17/08

FDIC Updates Trust Examination Manual

The FDIC has issued a FIL announcing the update of the Trust Examination Manual to include new materials reflecting changes enacted in the Pension Protection Act of 2006 and their application to employee benefit plan and individual retirement plan accounts governed by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. FIL; Manual  10/17/08

Consolidated Supervision and Risk Management Guidance

The FRB has issued two SR Letters containing guidance, one that refines and clarifies its programs for the consolidated supervision of bank holding companies (BHCs) and the combined U.S. operations of foreign banking organizations (FBOs) and the other clarifying supervisory expectations with respect to firmwide compliance risk management. SR Supervision; SR Risk  10/17/08

Section 19 Letters Released

The FRB has released two Section 19 Letters that have been issued to former bankers from Louisiana and Ohio that prohibit them from continuing or become an institution-affiliated party of a banking organization or a credit union. Louisiana; Ohio  10/17/08

August TIC Data

The Treasury has released the Treasury International Capital (TIC) data for August 2008. TIC  10/17/08

Industrial Production Report Released

The G. 17 Industrial Production and Capacity Utilization Report for September 2008 had been released by the FRB. G.17  10/17/08

Bernanke Confident Economy Will Recover

In a presentation at the Economic Club of New York, Chairman Bernanke discussed the economic and financial challenges faced by the nation and the actions being taken to stabilize the markets and the economy. He noted, "Stabilization of the financial markets is a critical first step, but even if they stabilize as we hope they will, broader economic recovery will not happen right away. Ultimately, the trajectory of economic activity beyond the next few quarters will depend greatly on the extent to which financial and credit markets return to more normal functioning." He stated, "I remain confident that the American economy, with its great intrinsic vitality and aided by the measures now available will emerge from this period with renewed vigor." Speech  10/16/08

Additions to FCRA Examinations Procedures

The OCC has published a Bulletin regarding the issuance of new Fair Credit Reporting Act (FCRA) examination procedures for rules addressing affiliate marketing, identity-theft red flags, and address discrepancies. Bulletin; Procedures  10/16/08

The FDIC Proposes Rulemaking for Assessments

The FDIC is proposing to amend 12 CFR part 327 to: alter the way in which it differentiates for risk in the risk-based assessment system; revise deposit insurance assessment rates, including base assessment rates; and make technical and other changes to the rules
governing the risk-based assessment system. TXT; PDF  10/16/08

Beige Book Updated

The FRB has published the October 15, 2008 update of the Beige Book. Beige Book  10/16/08

Required and Excess Balances Interest Rates

The FRB has posted the interest rates to be paid by the Federal Reserve Banks on required reserve balances and excess balances for the maintenance period ending October 15, 2008. Interest Rates  10/16/08

FedFlash Issue Online

The October 15, 2008 issue of FedFlash has been posted online and contains articles on a new electronic format, documentation for the November 2009 FedWire Funds Service, FedWire Offline Services, and the FedLine Learning Center. FedFlash  10/16/08

Cost of Funds Reports

The OTS has published the historical and current cost of funds for OTS regulated institutions. Historical; Current  10/16/08

Capital Purchase Program Details Announced

The Treasury has announced a voluntary Capital Purchase Program under which it will purchase up to $250 billion of senior preferred shares on standardized terms. The stated purpose of the program is to encourage U.S. financial institutions to build capital to increase the flow of financing to U.S. businesses and consumers and to support the U.S. economy. Qualifying U.S. controlled banks, savings associations, and certain bank and savings and loan holding companies must elect to participate before 5:00 pm (EDT) on November 14, 2008. Statements regarding the program have been made by Secretary Paulson and Comptroller Dugan and a Joint Statement has been issued by Treasury, the FRB and the FDIC. Summary; Terms; Paulson Statement; Dugan Statement; Treasury PR; FRB PR  10/15/08

Temporary Liquidity Guarantee Program Announced

The FDIC has announced the Temporary Liquidity Guarantee Program to strengthen confidence and encourage liquidity in the banking system by guaranteeing newly issued senior unsecured debt of banks, thrifts, and certain holding companies, and by providing full coverage of non-interest bearing deposit transaction accounts, regardless of dollar amount. Summary; Fact Sheet; Bair Statement  10/15/08

Troubled Assets Guaranty Program Comments Sought

A request for public comments had been made by Treasury regarding a proposed insurance program for troubled assets which is required by the Emergency Economic Stabilization Act of 2008 (EESA). Comments are due by Friday, October 28 and may be submitted online. Request  10/15/08

CPFF Additional Details

The FRB has announced the term and conditions and FAQs regarding the Commercial Paper Funding Facility (CPFF) that it will begin funding the purchases of commercial paper on October 27, 2008. Terms; FAQs  10/15/08

Executive Compensation Rules Established

The Treasury has announced the executive compensation and corporate governance standards that will apply to the chief executive officer, chief financial officer, plus the next three most highly compensated executive officers of any firm participating in recently established Troubled Asset Auction Program, Capital Purchase Program, or Programs for Systemically Significant Failing Institutions. Compensation  10/15/08

Written Agreement with Indiana BHC

The FRB has announced the execution of a Written Agreement by and among Irwin Financial Corporation, Columbus, Indiana, a registered bank holding company, Irwin Union Bank and Trust Company, Columbus, Indiana, a state-chartered member bank, the Federal Reserve Bank of Chicago, and the Indiana Department of Financial Institutions. Agreement  10/15/08

TARP Custodian Announced

The Treasury has announced that Bank of New York Mellon will serve as its custodian for the implementation of the Troubled Asset Relief Program (TARP) authorized under the Emergency Economic Stabilization Act (EESA). Custodian  10/15/08

Bank of Japan Currency Arrangement Increased

FOMC has authorized an increase in the size of its temporary reciprocal currency arrangement with the Bank of Japan. Arrangement  10/15/08

Discount Rate Meeting Minutes Released

The FRB has released the minutes of its discount rate meetings from August 18 through September 15, 2008. Minutes  10/15/08

Red Flag Exam Procedures SR Letter

The FRB has issued a SR Letter regarding the expectations for Federal Reserve-supervised financial institutions and examination staff with respect to the final rules and guidelines regarding identity theft red flags and other regulations under the FCRA. SR Letter  10/14/08

Mortgage Servicing FDIC Insurance Rules Simplified

The FDIC has adopted an interim final rule which simplifies the deposit insurance rules for accounts held at FDIC-insured institutions by mortgage servicers. Effective immediately, coverage will be provided to the lenders/investors, as a collective group, based on the cumulative amount of the borrowers' payments of principal and interest into the account. Insurance  10/14/08

NCUA Publishes Interim Final Rule in FR for Share Insurance for Revocable Trust Accounts

NCUA is amending its share insurance rules to simplify coverage for revocable trust accounts. The amendments will make the rules easier to understand and apply without decreasing coverage, result in faster share insurance determinations in the event of a credit union closing, and help improve public confidence in the credit union system. The amendments eliminate the concept of "qualifying
beneficiaries." Also, for members with revocable trust accounts totaling no more than $500,000, coverage will be determined without regard to the proportional beneficial interest of each beneficiary in the trust. Under the amended rules, a trust account owner with up to five different beneficiaries named in all of his or her revocable trust accounts at one NCUA-insured institution will be insured up to $100,000 per beneficiary. Revocable trust account owners with more than $500,000 and more than five different beneficiaries named in the trust(s) will
be insured for the greater of either: $500,000 or the aggregate amount of all the beneficiaries' interests in the trust(s), limited to $100,000 per beneficiary. TXT; PDF  10/14/08

Illinois and Michigan Banks Closed

Meridian Bank, Eldred, Illinois, was closed by the Illinois Department of Financial Professional Regulation-Division of Banking, the FDIC was named receiver and approved the assumption of all the deposits by National Bank, Hillsboro, Illinois. In addition, Main Street Bank, Northville, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, the FDIC was named receiver and approved the assumption of all the deposits by Monroe Bank & Trust, Monroe, Michigan. Meridian Bank; Main Street Bank  10/14/08

Fed and Central Banks Announce Liquidity and Funds Measures

The Federal Reserve and other central banks (the Bank of England, the European Central Bank, the Bank of Japan, and the Swiss National Bank) have jointly announced further measures to improve liquidity in short-term U.S. dollar funding markets. Liquidity  10/14/08

Wachcovia Acquisition Approved

The FRB has approved of the application of Wells Fargo & Company, San Francisco, California, to acquire Wachovia Corporation and its subsidiary banks, Wachovia Bank, National Association, both of Charlotte, North Carolina, and Wachovia Bank Delaware, National Association, Wilmington, Delaware, and the nonbanking subsidiaries of Wachovia Corporation. Approval  10/14/08

FedCash Services Enhancements Update

The FRB Financial Service has issued an update to the recent enhancements to FedCash Services via FedLine Web. Update  10/14/08

Fraudulent FDIC Emails Special Alert

The FDIC has issued a Special Alert and a Consumer Alert regarding fake emails that appears to be from the FDIC and contain the following subject line: "Funds wired into your account are stolen." Recipients are instructed to open an attached file that is actually an executable file containing malicious code or software. Special Alert; Consumer Alert  10/10/08

FTC Phishing Scam Alert

The FTC has issued an Alert to consumers regarding e-mails that look as if they come from a financial institution that recently acquired a consumer's bank, savings and loan, or mortgage. Consumers are warned that the messages may be from "phishers" looking to use personal information (account numbers, passwords, Social Security numbers) to run up bills or commit other crimes in a consumer's name. Scam  10/10/08

TAR Report Released

OFAC has released the Calendar Year 2007 Annual Report on Assets in the United States of Terrorist Countries and International Terrorism Program Designees, known as the Terrorist Assets Report (TAR). Report  10/10/08

Paulson Predicts Bank Failures

Secretary Paulson has issued a statement regarding the U.S. and global financial markets. He stated "One thing we must recognize - even with the new Treasury authorities, some financial institutions will fail. The EESA doesn't exist to save every financial institution for its own sake." He noted that the Emergency Economic Stabilization Act (EESA) empowers Treasury to use up to $700 billion to inject capital into financial institutions, to purchase or insure mortgage assets, and to purchase any other troubled assets that the Treasury and the Federal Reserve deem necessary to promote financial market stability. He indicated that is the policy of our federal government to use all resources at its disposal to make our financial system stronger and the FDIC, with the full support of the Fed and the Treasury, will use its authority and resources, as appropriate to mitigate systemic risk, by, as appropriate, protecting depositors, protecting unsecured claims, guaranteeing liabilities and adopting other measures to support the banking system. Statement  10/09/08

Money Market Guaranty Program Expanded

The Treasury has announced a technical correction that would permit additional money market funds to participate in Treasury's Temporary Money Market Fund Guarantee Program and extends the enrollment deadline to 11:59 p.m. Washington, DC time on October 10, 2008. Program  10/09/08

Discount Rates Decreased

The FRB has approved actions by Federal Reserve Banks decreasing the discount rate at the Banks from 2-1/4 percent to 1-3/4 percent effective immediately at all Banks except the Federal Reserve Bank of St. Louis, which will be effective October 9, 2008. Rates  10/09/08

Borrowing of Securities Authorized

The FRB has authorized the Federal Reserve Bank of New York to borrow securities from certain regulated U.S. insurance subsidiaries of the American International Group (AIG). Borrowing  10/09/08

SNC Volume Increases - Quality Decreases

The Federal bank and thrift regulators have released the results of the 2008 Shared National Credit (SNC) Review based on analyses prepared in the second quarter of 2008 of credit data provided by federally supervised institutions as of December 31, 2007. Loan commitments of $20 million or more and held by three or more federally supervised institutions, rose 22.6 percent to $2.8 trillion, and the volume of criticized credits increased to $373.4 billion, or 13.4 percent. Industry Codemaps; FRB PR; OCC NR; FDIC PR; OTS PR  10/09/08

ACH ODFI Deadline Approaches

The FRB Financial Services has issue a reminder that all financial institutions that originate ACH items that November 3, 2008 is the deadline to register with NACHA or confirm that they do not maintain a direct access relationship. Deadline; Registration Information  10/09/08

FRB Publishes Interim Final Rule in FR for Reserve Requirements of Depository Institutions

Under authority of section 128 of the Emergency Economic Stabilization Act of 2008, the Board is amending Regulation D, Reserve Requirements of Depository Institutions, to direct Federal Reserve Banks to pay interest on balances held at Reserve Banks to satisfy reserve requirements and on balances held in excess of required reserve balances and clearing balances. TXT; PDF  10/09/08

NCUA Insurance Materials

Updated share insurance coverage material and member information is available from the NCUA. Insurance  10/09/08

MSB Registration List Updated

FinCEN has updated the MSB Registration List with entries current as of September 20, 2008. List  10/09/08

314(a) Fact Sheet Revised

The 314(a) Fact Sheet has been revised by FinCEN to include data current as of October 7, 2008. 314(a)  10/09/08

FEDS Working Papers Published

Two working papers in the Finance and Economic Discussion Series (FEDS) have been published by the FRB on the topics of "Productivity, Aggregate Demand and Unemployment Fluctuations" and "The Connection Between House Price Appreciation and Property Tax Revenues." Productivity Abstract; Productivity Full Paper; Connection Abstract; Connection Full Paper  10/09/08

Assets Reports Issued

The 3.12 U.S. Reserve Assets and 3.13 Foreign Official Assets Held at Federal Reserve Banks reports for September 2008 have been issued by the FRB. Reports  10/09/08

Fed Joins Major Central Banks and Lowers Rates

In a 7:00 a.m. ET press release today, the Fed announced the the Federal Open Market Committee had decided to lower its target for the federal funds rate 50 basis points to 1-1/2 percent. The Committee took the action "in light of evidence pointing to a weakening of economic activity and a reduction in inflationary pressures." The action was taken in cooperation with the Bank of Canada, the Bank of England, the European Central Bank, Sveriges Riksbank, and the Swiss National Bank, and with an expression of strong support from the Bank of Japan. Press Release   10/08/08

Bernanke Believes Groundwork for Recovery Established

In a presentation at the National Association for Business Economics 50th Annual Meeting in Washington, D.C., Chairman Bernanke discussed challenges faced as the result the recent developments in the financial sector and the economy. He noted that financial systems in the United States and in much of the rest of the world are under extraordinary stress, particularly the credit and money markets. He stated, "Overall, the combination of the incoming data and recent financial developments suggests that the outlook for economic growth has worsened and that the downside risks to growth have increased." He indicated enactment of the Emergency Economic Stabilization Act provides new tools for addressing the distress in financial markets and thus mitigating the risks to the economy by establishing the Treasury Troubled Asset Relief Program, (TARP); raising the FDIC limit on deposit insurance at banks and credit unions from $100,000 to $250,000 per account; and authorizing the FRB to pay interest on reserves. He concluded, "I believe that the bold actions taken by the Congress, the Treasury, the Federal Reserve, and other agencies, together with the natural recuperative powers of the financial markets, will lay the groundwork for financial and economic recovery." Speech  10/08/08

Higher FDIC Assessments Proposed

The FDIC has adopted a restoration plan accompanied by a notice of proposed rulemaking that would increase the rates banks pay for deposit insurance and adjustments to the system that determines what rate a bank pays the FDIC. Assessments  10/08/08

Commercial Paper Funding Facility (CPFF) Created

The FRB has announced the creation of the Commercial Paper Funding Facility (CPFF), that will complement the Federal Reserve's existing credit facilities to help provide liquidity to term funding markets by providing a backstop to U.S. issuers of commercial paper through a special purpose vehicle (SPV) that will purchase three-month unsecured and asset-backed commercial paper directly from eligible issuers. CPFF  10/08/08

Bailout Impacts Float Charges

The FRB Financial Services has issued an explanation of how provisions of the Economic Stabilization Act of 2008 regarding the calculation of earnings credits on eligible clearing balances will impact explicit float charges. Explanation  10/08/08

NPR Lower Fannie/Freddie Claims Rates

The federal bank and thrift regulatory agencies announced today that they will request public comment on a joint notice of proposed rulemaking (NPR) to allow a banking organization to assign a 10 percent risk weight to claims on, and portions of claims guaranteed by Fannie Mae and Freddie Mac. NPR;
FRB PR; OCC NR; FDIC PR; OTS PR  10/08/08

Auction Results

The results of the October 6, 2008 auction of $150 billion in 85-day credit have been announced. Results  10/08/08

Credit Auctions Schedules Announced

The FRB and International central banks have announced the schedules for term and forward auctions of U.S. dollar liquidity for fourth quarter. The schedules include dates of any 28-day and 84-day term auctions and two preliminary dates for any forward auctions of U.S. dollar liquidity over the year-end. Auction Schedules  10/08/08

Consumer Credit Report Issued

The G. 19 Consumer Credit Report for August 2008 has been released by the FRB. G.19  10/08/08

FOMC Minutes Released

The minutes of the September 16, 2008 meeting of the Fair Open Market Committee have been released. Minutes  10/08/08

FR Bulletin Statistical Supplement

The September 2008 Statistical Supplement to the Federal Reserve Bulletin has been published. Supplement  10/08/08

Reserve Position Update

The Treasury has updated the U.S. International Reserve Position Report with data current as of October 3, 2008. Report  10/08/08

Counterfeit Checks Special Alerts

The FDIC has issued six Special Alerts regarding counterfeit checks bearing the names of the following institutions:

• AuburnBank, Auburn, Alabama (Counterfeit Cashier's Checks);
• Reliance Bank FSB, Fort Myers, Florida (Counterfeit Checks);
• MCNB Bank and Trust Co., Welch, West Virginia (Counterfeit Checks);
• Athol Savings Bank, Athol, Massachusetts (Counterfeit Checks);
• Liberty First Bank, Monroe, Georgia (Counterfeit Cashier's Checks); and
• Mechanics Savings Bank, Auburn, Maine (Counterfeit Treasurer's Checks)

Information concerning the counterfeit checks has been posted on the BOL Alerts and Counterfeits page.  10/07/08

WV CU Closed

NCUA has announced that it has placed N&W Poca Division Federal Credit Union of Bluefield, West Virginia, into liquidation. Liquidation  10/07/08

TIL Reg Z Exam Procedures Revised

The OCC has issued a Bulletin and an updated TIL Handbook regarding the revision of its examination procedures to reflect changes to Regulation Z that simplify and clarify requirements for e-communication and the regulation's relationship to the E-Sign Act. Bulletin; Handbook  10/07/08

Bair Discusses Mortgage Reform

In a presentation at the 2008 Annual Meeting National Association for Business Economics, FDIC Chairman Bair discussed the future of mortgage financing and the role of the FDIC in reforming the system. Speech  10/07/08

Treasury Looking for Financial Agents

Treasury has posted three solicitations for financial agents to provide the following services that are needed for the effective implementation of the Troubled Asset Relief Program authorized under the Emergency Economic Stabilization Act:

• Custodian, Accounting, Auction Management, and Other Infrastructure Services;
• Securities Asset Management Services; and
• Whole Loan Asset Management Services.

Solicitations; Procurement Procedures; Selection Process  10/07/08

FDIC Insurance Increase

The FDIC has issued a FIL regarding the temporary increase in the amount of the basic limit on FDIC coverage from $100,000 to $250,000 per depositor which became effective immediately upon the President's signature of the Emergency Economic Stabilization Act of 2008. Information regarding the change of FDIC signage was also addressed. Read the BOL Special Briefing announcement regarding the increase. BOL; FIL; Overview; Signage Change  10/06/08

FRB Publishes Final Rule in FR for Rules of Practice for Hearings

The Board of Governors of the Federal Reserve System (the Board) is amending its rules of practice and procedure to adjust the maximum amount, as set by statute, of each civil money penalty (CMP) within its jurisdiction to account for inflation. This action is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996.TXT; PDF  10/06/08

NCUA Revises Insurance Coverage

The NCUA Board has adopted changes to simplify the rule determining the coverage available on revocable trust accounts. An interim final rule substantially similar to a recent FDIC regulation change is effective immediately. Interim Final Rule  10/06/08

SDN Data Files Error

The Treasury has issued a notice of an internal system error that resulted in the modification of a series of unique identifier numbers (UIDs) that were associated with recently released Specially Designated Nationals (SDN) names. Data Files  10/06/08

Disaster Immediate Response Guidance

The OCC has issued a Bulletin containing guidance for national banks regarding responding to disasters prior to the issuance of an OCC proclamation. Bulletin  10/06/08

Section 19 Enforcement Letters Released

The FRB has released three enforcement letters recently issued pursuant to Section 19 of the FDIC Act regarding the prohibition of certain individuals from being employed by or affiliated with a FDIC insured depository institution. Letter1; Letter 2; Letter 3  10/06/08

Regulators Issue Wachovia Acquisition Statements

The FRB and the OCC have issued statements on the proposal from Wells Fargo to acquire Wachovia. FRB; OCC  10/06/08

OFAC Additions and Removals

OFAC has named ten individuals and six companies tied to the Amezcua Contreras Organization, a major Mexican drug trafficking organization, as Specially Designated Narcotics Traffickers (SDNTs) and added their names to the SDN List. In addition, the names of ten individuals previously designated as SDNTs or SDGTs have been removed from the List. Information regarding the additions and removals has been posted on the BOL OFAC page.  10/03/08

Order Of Prohibition Issued

The FRB has announced that an Order of Prohibition has been issued against a former trust officer of an Illinois bank who allegedly used of bank funds and non-public customer information from a bank computer server to start-up his own non-depository trust company. Order  10/03/08

The FRB Publishes Final Rule in FR for Reserve Requirements of Depository Institutions

The Board is amending Regulation D, Reserve Requirements of Depository Institutions, to reflect the annual indexing of the reserve requirement exemption amount and the low reserve tranche for 2009. The Regulation D amendments set the amount of total reservable liabilities of each depository institution that is subject to a zero percent
reserve requirement in 2009 at $10.3 million, up from $9.3 million in 2008. The Regulation D amendment also sets the amount of net transaction accounts at each depository institution that is subject to a three percent reserve requirement in 2009 at $44.4 million, up from $43.9 million in 2008. TXT; PDF  10/03/08

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among Warren Bancorp, Inc., a registered bank holding company, Warren Bank, a state-chartered member bank, the Federal Reserve Bank of Chicago, and the Michigan Office of Financial and Insurance Regulation. Agreement  10/02/08

Flood Funding

The statutory authority to issue flood policies pursuant to the National Flood Insurance Program was due to expire on September 30, 2008. On that date President Bush signed H.R. 2638, the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act of 2009. Included here is a short-term extension providing funding for the NFIP through March 6, 2009. White House News Release  10/02/08

New Electronic Interpretations and Actions

The OCC has published the September 2008 issue of New Electronic Interpretations and Actions. New  10/02/08

Foreign Exchange Rates

The FRB has updated the G.5 Foreign Exchange Rates Report. G.5  10/02/08

Structure and Data Share Report Released

The Second Quarter 2008 Structure and Data Share for U.S. Banking Offices of Foreign Entities has been released by the FRB. Report  10/02/08

OFAC Kingpin Act Designations

Pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act), OFAC has designated eight international representatives 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 regarding the additions has been posted on the BOL OFAC page.  10/01/08

Call Report FIL

The FDIC has issued a FIL containing material pertaining to the Consolidated Reports of Condition and Income (Call Report) for the September 30, 2008, report date. FIL  10/01/08

The NCUA Publishes Final Rule in FR for Revisions for The Freedom of Information Act and Privacy Act Regulations

The NCUA Board is amending its Freedom of Information Act (FOIA) and Privacy Act regulations. The final rule reflects recent amendments to the FOIA addressing fee practices, time limits for complying with requests, and new reporting requirements.TXT; PDF  10/01/08

The NCUA Publishes Final Rule in FR for its Official Advertising Statement

The NCUA is revising the requirements for use of the official insurance sign and official advertising statement to permit insured credit unions to use the basic form of the official advertising statement, a shortened form, or the official sign in advertisements. The rule will give credit unions added flexibility in advertisements by allowing them to use the shortened form or the official insurance sign in advertisements as alternatives to the basic official advertising statement.TXT; PDF  10/01/08

The NCUA Proposes Rulemaking for Regulatory Flexibility Regarding Ownership of Fixed Assets

NCUA proposes to amend its Regulatory Flexibility (RegFlex) Program to provide additional flexibility to qualifying federal credit unions (FCUs) when acquiring unimproved land for future expansion. The proposed amendment would increase the three years to six years for RegFlex FCUs without a waiver. NCUA also proposes to make conforming amendments to its fixed asset rule to be consistent with the RegFlex changes.TXT; PDF  10/01/08

Agricultural Finance Databook Published

The FRB has published the September 2008 E.15 Agricultural Finance Databook. E.15  10/01/08

Finance Companies Reports Released

The July 2008 G.20 Owned and Managed Receivables and Auto Loans: Terms of Credit Reports have been released by the FRB. G.20  10/01/08