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Top Stories for October 2005
FinCEN Announces New BSA Service
BSA Direct, a new FinCEN service that will allow authorized users to access and analyze BSA data, is scheduled to be operational in January 2006.
BSA Direct 10/31/05
MSB Registration List And Order Form Back Online
FinCEN has reposted the MSB Registration List State Selector and the MSB Material Information Order Form on its Web site. They both were taken offline in September 2005 for a security analysis.
Working Paper Published
August G.20 Report Release
The G.20 Finance Companies report for August 2005 has been released the FRB.
FDIC Final Rule on 529 Plans Published in FR
The FDIC is adopting a final rule governing the insurance coverage of deposits of qualified tuition savings programs under
section 529 of the Internal Revenue Code. The deposits will be insured up to $100,000 for the interest of each
participant in aggregation with the participant's other deposits at the same insured depository institution. 70FR62057 (txt) 70FR62057 (pdf) 10/28/05
Comptroller Discusses Credit Risk
In a presentation to attendees at the OCC Credit Risk Conference, Comptroller Dugan discussed the implications for national banks of rising credit risk.
CIF Handbook Released
The OCC has released a new booklet in the Controllers Handbook series titled, "Collective Investment Funds", which examines bank-administered trusts for the commingled assets of fiduciary accounts and establishes a framework for managing their risks.
CIF Booklet 10/28/05
MSB Registration List Update
FinCEN has updated the MSB Registration List to include those entities that have registered as of October 1, 2005.
Working Paper Published
FDIC Makes Bank Data Available
NCUA Seeks Comments On Strategic Plan
Greenspan's Reflections On CEA
In his remarks on receipt of the Truman Medal for Economic Policy, Chairman Greenspan reflected on the establishment of the CEA by President Truman and his personal observations as a member of the Council.
FEDS Working Paper Published
Reserve Position Update
Treasury has updated the U.S. International Reserve Position report to include data as of October 21, 2005.
Reserve Position 10/27/05
FDIC Issues Wilma FIL
An FIL has been issued by the FDIC regarding the supervisory practices that the regulator will follow concerning institutions impacted by Wilma and related severe storms. A link to the FIL has been posted on the BOL Disaster Recovery Center. 10/26/05
CRA Evaluations Released
The OCC has released the evaluations for 22 national banks that were recently examined for compliance with the CRA.
October New Electronic Interpretations And Actions Announced
The New Electronic Interpretations and Actions for October 2005 have been announced by the OCC.
New Electronic 10/26/05
Third Quarter A&L Price Tables Released
OTS has released the Asset and Liability Price Tables for the Third Quarter 2005.
Wilma Affecting Bank Operations
The Federal Reserve Bank of Atlanta is posting updates on how Hurricane Wilma is affecting bank operations in the area. A link to the web page containing the updates has been posted on the
BOL Disaster Recovery page. 10/25/05
Counterfeit and Stolen Check Alerts Issued
The OCC has issued two Alerts, one regarding counterfeit cashier's checks drawn on Valley National Bank in Wayne, New Jersey; and the concerning stolen official checks and money orders bearing the name of TCF National Bank, Minneapolis, Minnesota. Information on the Alerts has been posted on the BOL Alerts & Counterfeits page. 10/25/05
Iowa Banker Subject Of Enforcement Action
FRB has announced the issuance of a Consent Notice of Suspension and Prohibition against William R. Kahler, an officer of Primebank, LeMars, Iowa.
Bernanke To Follow Greenspan
President Bush has appointed White House economic adviser Ben Bernanke as chairman of the FRB to succeed Chairman Alan Greenspan, who will retire when his current term runs out at the end of January 2006. Chairman Greenspan was present for the announcement and issued a statement on the selection of Bernanke.
Greenspan Statement 10/25/05
Counterfeit Checks Alert
An alert has been issued by the OCC regarding counterfeit cashier's checks drawn on Citizens National Bank, N.A., Bossier City, La. Information regarding the counterfeit checks has been posted on the BOL Alerts and Counterfeits page. 10/24/05
North Korean Entities Added To SDN List
Treasury has designated eight North Korean entities as proliferators of weapons of mass destruction and added their names to the SDN List. The action prohibits all transactions between the designated entities and any U.S. person and freezes any assets the entities may have under U.S. jurisdiction. Information regarding the entities has been posted on the BOL OFAC page. 10/24/05
National Bank Offices Affected by Hurricane Wilma May Close
The OCC has issued a Proclamation that authorizes national banks, at their discretion, to close offices in areas affected by Hurricane Wilma. Proclamation 10/24/05
Code Of Conduct FIL Issued
The FDIC has issued a FIL that contains guidance to financial institutions to remind them of the importance of an effective internal corporate code of conduct or written ethics policy.
Working Papers Published
The FRB has published two working papers, one in the FEDS series on the topic of Stock Market Volatility and the Great Moderation; and the other in the IFDP series on the topic of Accounting Standards and Information: Inferences from Cross-Listed Financial Firms.
FEDS Full Paper;
IFDP Full Paper 10/24/05
FHC List Updated
The FRB has updated the list of BHCs that have elected to be treated as FHCs to include those companies making the election as of October 21, 2005. FHC List 10/24/05
Assets Reports Released
The FRB has released the 3.12 U.S. Reserve Assets report and the 3.13 Foreign Official Assets Held at Federal Reserve Banks report. Reports 10/21/05
Joint Agencies Publish Proposed Rule for Modifications to Capital Guidelines and Maintenance
The OCC, OTS, FRB, and OTS are considering various revisions to the existing risk-based capital framework that would enhance its risk sensitivity. These changes would apply to banks, bank holding companies, and savings associations ("banking organizations"). PDF
TXT FRB PR; OCC Bulletin; FDIC FIL; OTS PR 10/20/05
CRA Examination Information Online
The FFIEC has posted links to CRA examination information on one of its Web pages. Information regarding regulator exam schedules, distressed or underserved nonmetropolitan middle income geographies, exam procedures by size of institution, and public evaluations is available. CRA Information 10/20/05
CRA/HMDA Corrections Available
Tardy HMDA Disclosures Results In CMP
NCUA has announced that a $19,000 CMP has been assessed against a CU for late submissions of HMDA data. CMP 10/20/05
Prohibition Orders Issued
Orders of prohibition have been issued by NCUA against former CU affiliated individuals. Orders 10/20/05
Beige Book Update
The FRB has updated the Beige Book to include information collected before October 11, 2005, which indicates that economic activity continued to expand in September 2005 even though the Atlanta and Dallas districts reported notable disruptions due to hurricane activity. Summary; Full Report 10/20/05
Counterfeit Cashier's Checks Alert
The OCC has issued an Alert regarding counterfeit cashier's checks drawn on Union Bank of California, N.A. Information concerning the counterfeit checks has been on the BOL Alerts & Counterfeits page. 10/19/05
SDN List Changes Announced
OFAC has announced that thirty-six changes have been made to SDGT designations on the SDN list. Information regarding the changes has been posted on the BOL OFAC page. 10/19/05
Consent Order issued Against Ohio Bank
The OCC has announced that a Consent Order has been issued against Key Bank, N.A., Cleveland, Ohio, regarding violations of the BSA and OFAC regulations. The institution is required to develop and implement BSA policies and procedures including but not limited to, identification and monitoring of high-risk transactions, compliance risk assessment, filing SARs, conducting a BSA audit, and BSA training. Consent Order 10/19/05
NCCT List Reduced By One
FATF has announced the removal of Nauru from its non-cooperative countries and territories (NCCT) list due to the abolishment by Nauru of 400 shell banks. NCCT List 10/19/05
Greenspan On Energy
In a presentation in Tokyo before the Japan Business Federation, the Japan Chamber of Commerce and Industry, and the Japan Association of Corporate Executives, Chairman Greenspan noted oil prices had been persistently edging higher since 2002 but the average price of crude oil, despite its recent surge, is still in real terms below the price peak of February 1981. He also observed that despite improved technology and high prices, proved reserves in the developed countries are being depleted because additions to these reserves have not kept pace with production. Speech 10/19/05
Non-Traditional Mortgages May Be Risky
FDIC Chairman Powell in a presentation before the America's Community Bankers Annual Convention in Orlando, Florida, warned that so-called 'non-traditional' mortgages such as 'piggyback' mortgages, low- and no-doc loans, interest-only loans, and loans with optional payment terms allowing for considerable negative amortization may result in increased risk for some bank and their customers. Risk 10/19/05
FYI Highlights 2005 Deposits Data
The October 18, 2005 issue of FYI features the official release of the 2005 Summary of Deposits (SOD) data, a report detailing total deposits at the individual office level for every FDIC-insured institution. FYI 10/19/05
August International Capital Data Released
Treasury has released the International Capital Data for August 2005. Capital Data 10/19/05
FRB Publishes Technical Amendment to Appendix A of Regulation CC
The FRB is amending appendix A of Regulation CC to delete the reference to the Oklahoma City and Columbus branch offices of the Federal Reserve Bank of Kansas City and reassign the Federal Reserve routing symbols currently listed under those offices to the head office of the Federal Reserve Bank of Dallas and Cincinnati, respectively. PDF
FDIC Publishes Interpretive Rule in FR
The FDIC is amending an interpretive rule stating that insured State nonmember banks not exercising trust powers may offer self-directed traditional IRA and Keogh accounts without the prior written consent of the FDIC. PDF
Atlanta To Process New Orleans Items
FRB Financial Services has announced that the Atlanta office of the FRB will begin on October 17, 2005, overnight processing of New Orleans zones items and availability will return to “re-Katrina” levels. Item Processing 10/18/05
November HOEPA Reference Rates
The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in November 2005 will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application. For November, you will use the rates posted on October 14th since October 15th fell on the weekend. H.15 Weekly Rates 10/18/05
Enforcement Actions Announced
The OCC has announced seventeen Enforcement Actions taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions 10/18/05
Cost Of Funds Reports Issued
Reserve Position Update
The FRB has updated the U.S. International Reserve Position data to include information as of October 14, 2005. Reserve Position 10/18/05
IFDP Working Paper Published
A working paper in the IFDP series on the topic of Alternative Procedures for Estimating Vector Autoregressions Identified with Long-Run Restrictions has been published by the FRB. Abstract; Full Paper 10/18/05
FRB publishes Proposed Rule for Truth in Lending (Reg Z)
The Federal Reserve Board requests comments for proposed rule regarding the open-end (revolving) credit rules of the Board's Regulation Z, which implements the Truth in Lending Act (TILA). PDF; TXT 10/17/05
Additional Hurricane Accounting And Regulatory Reporting Guidance Issued
The federal financial regulatory agencies have prepared additional supervisory guidance on regulatory and reporting issues related to Hurricanes Katrina and Rita. A link to the guidance from each agency has been posted on the BOL Disaster Recovery Center. 10/17/05
Counterfeit Cashier's Checks Special Alerts
The FDIC has issued Two Special Alerts regarding counterfeit cashier's checks drawn on Premier Valley Bank, Fresno, California, and Alpine Bank, Glenwood Springs, Colorado. Information regarding the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 10/17/05
Court Denies SARs Disclosure
The Court in the case of Wuliger vs. OCC has held that action by the OCC to deny disclosure of SAR information was consistent with the authorizing legislation and a reasonable implementation of the statute regarding the reporting and disclosure of SARs. Opinion 10/17/05
Written Agreement Announced
The FRB has announced that it has entered into a Written Agreement with the Deutsche Bank Trust Company Americas, New York, N.Y., which addresses BSA and AML compliance at Deutsche Bank Trust Company Americas and a Written Agreement with Surety Capital Corporation, Fort Worth, Texas, regarding the activities of Surety Bank, Fort Worth, Texas. Deutsche Bank;
Surety Capital 10/17/05
BIF Insurance Rates May Increase
In a presentation before the National Bankers Association's Annual Convention, FDIC Chairman Powell noted with the reserve ratio trending toward a key statutory tripwire and Congress considering deposit insurance reforms, some change in the way banks pay for their deposit insurance is more likely. He stated, "Higher assessment rates could happen as early as the beginning of next year." Presentation 10/17/05
Hurricanes Impact G.17 Report
The FRB has released the G.17 Industrial Production and Capacity Utilization Report for September 2005 which indicates that storm-related production declines are estimated to have held down total industrial production. G.17 10/17/05
FDIC Publishes Proposed Rule for Interstate Banking and the Federal Interest
This proposed rule will preempt certain state laws with the stated purpose of establishing parity between national banks and state-chartered banks in interstate activities and operations, and to implement the interest rate authority contained in the Federal Deposit
Insurance Act.PDF TXT 10/14/05
FDIC Publishes Proposed Rule for Notification of Changes of Insured Status
This proposed rule will revise the regulation addressing the certification to the FDIC of the assumption of deposits and the notification to depositors of a change in insured status. The proposed revision also clarifies other requirements. PDF TXT 10/14/05
Regulators Publish Real Estate Appraisal Exception in Major Disaster Areas
The joint agencies (OCC, FRB, FDIC, OTC, NCUA) publish a statement in the Federal Register, effective immediately, authorizing the Agencies to make exceptions to statutory and regulatory requirements relating to appraisals for certain transactions. PDF
Thrift Industry Charge-Off Rates Released
OTS has released the Second Quarter 2005 thrift industry charge-off rates. Rates. 10/14/05
Counterfeit Checks Alert Issued
The OCC has issued an Alert regarding counterfeit cashier's checks and stolen checks issued in the name of American Bank, N.A. Corpus Christi, Texas, that are being presented for payment. Information regarding the counterfeit and stolen checks has been posted on the BOL Alerts & Counterfeits page. 10/13/05
$3 Million CMP Assessed For BSA/AML Violations
The OCC and FinCEN have assessed a $3 million CMP against Banco de Chile, New York, New York, after an examination revealed deficiencies in the bank's BSA and AML compliance programs. OCC FinCEN 10/13/05
Authentication in Internet Banking Environment Guidance Issued
The FFIEC has issued a Guidance to assist banks in improving customer awareness and authentication systems to mitigate risks of Internet-related identity theft and fraud. Guidance OCC Bulletin; FDIC FIL 10/13/05
PSAF Modification Announced
The FRB has announced modifications to the methodology used to calculate the private sector adjustment factor (PSAF), which is used in setting fees for certain payment services provided to depository institutions. PSAF 10/13/05
FRB Districts Restructure Check Processing
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 Fourth, Tenth, and Eleventh Districts. Restructuring 10/13/05
Greenspan Discusses Economic Flexibility
In a presentation before the National Italian American Foundation, Chairman Greenspan commented on the ability of the U.S. economy to absorb and recover from the shocks of stock market crashes, credit crunches, terrorism, and hurricanes. He noted that flexibility has made the economy more resilient to shocks and more stable overall during the past couple of decades and has been the key to the impressive growth in the standards of living and economic welfare so evident in the United States. Speech 10/13/05
Reg Z Amendment Comments Sought
The FRB has issued a request for comments on how the Board should implement amendments to the open-end credit rules of Regulation Z mandated by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. Comments 10/12/05
FDIC's FYI Features Bankruptcy Reform
The latest edition of FYI features an article that examines the effect that the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 will have on financial market contracts. FYI 10/12/05
FDIC Issues Quarterly Letter
The FDIC has issued its quarterly Letter to Stakeholders, which reports on the FDIC's priorities and activities for the third quarter of 2005. Letter 10/12/05
International Reserve Position Update
Treasury has updated the U.S. International Reserve Position to include data as of October 7, 2005. Reserve Position 10/12/05
Counterfeit Checks Alert and Special Alerts
An Alert has been issued by the OCC regarding counterfeit official checks issued in the name of First National Bank in Alamogordo, New Mexico. Three Special Alerts have been issued by the FDIC concerning counterfeit official checks drawn on Applied Card Bank (formerly known as Cross Country Bank), Wilmington, Delaware; and Peoples Bank & Trust, Buford, Georgia; in addition to counterfeit cashier's checks drawn on North Fork Bank, Mattituck, New York. Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page. 10/11/05
FACT Act Prescreen Rule Implementation Delay Denied
The FTC has denied a petition submitted by the American Financial Services Association requesting a delay of the effective date of the Pre-Screen Opt-Out Disclosure Rule (Prescreen Rule) of the FACT Act.
Consumer Credit Report Released
The August 2005 G.19 Consumer Credit Report has been released by the FRB. G.19 10/11/05
Reg D Adjustment Published in FR
The FRB has amended Reg D to reflect the annual indexing of the low reserve tranche and of the reserve requirement exemption amount for 2006 that will be used in the calculation of reserve requirements and deposit reporting. 70FR58603 (txt) 70FR58603 (pdf) 10/7/05
Agencies Announce Additional Hurricane Guidance
The FFIEC member agencies have announced the availability of additional supervisory guidance on regulatory and reporting issues related to Hurricane Katrina and Hurricane Rita. This information, in the form Q & As, provides guidance on he agencies' expectations for regulatory reports, appropriate allowances for loan and lease losses in third quarter regulatory reports, accounting treatment of sales of held-to-maturity securities to meet increased liquidity needs, and temporary hardship programs for credit card customers. BOL Disaster Issuances 10/7/05
Agencies Grant Three Year Wavier Of Appraisal Requirements
The Federal financial institution regulators have the waiving of appraisal requirements for three years for regulated financial institutions affected by Hurricanes Katrina and Rita. The waiver covers transactions involving real estate located in certain Alabama, Mississippi, and Texas counties and Louisiana parishes. BOL Disaster Issuances 10/7/05
September Call Report Information Online
The FDIC has posted on its Web site the filing information for the September 30, 2005 Call and Thrift Financial Reports.
Electronic Filing Final Rule Issued
Basel I Revisions Comments Sought
FEDS Working Papers Published
The FRB has published five working papers in the FEDS series on the following topics: Nowcasting GDP and Inflation: The Real-Time Informational Content of Macroeconomic Data Releases; The Effects of Mortgage Prepayments on M2;
Nowcasting Abstract; The Effect of Anticipated Tax Changes on Intertemporal Labor Supply and the Realization of Taxable; The Effects of Welfare Reform and Related Policies on Single Mothers' Welfare Use and Employment in the 1990s; and ATM Surcharge Bans and Bank Market Structure: The Case of Iowa and its Neighbors.
Nowcasting Full Paper;
Mortgage Full Paper;
Tax Changes Abstract;
Tax Changes Full Paper;
Welfare Full Paper;
ATM Full Paper
RPM Program Implemented
The FDIC has issued a FIL regarding the implementation of the Relationship Manager Program (RMP) for all FDIC-supervised financial institutions. A relationship manager who will serve as a local point-of-contact will be assigned to each institution.
Counterfeit Cashier's Checks and Fake Lottery Letters
The OCC has issued an Alert regarding counterfeit cashier's checks drawn on Rockport National Bank, Rockport, Massachusetts, and fraudulent lottery claim letters that are being mailed to persons with the last names of Cook and White from a London address. On October 3, 2005, the FDIC issued a Special Alert regarding counterfeit official checks drawn on the same bank. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page. 10/6/05
CRA Ratings Released
The FDIC has issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in July 2005.
CRA Ratings 10/6/05
Guidance Issued Regarding Processing Of Contaminated Checks
The FRB has issued a specific operational guidance regarding the processing of contaminated Treasury checks supplements the guidelines issued on September 19, 2005, concerning checks contaminated by Hurricane Katrina.
Disaster Issuances 10/5/05
OCC and Operation HOPE Sign Hurricane Relief Agreement
An agreement has been signed by the OCC and Operation HOPE, Inc. to assist victims of the recent Gulf Coast hurricanes who have been financially displaced. Victims can utilize HOPE call centers to contact the OCC's Customer Assistance Group (CAG) in Houston regarding information about accounts, lost financial records, ATM cards, direct deposits, and how to contact a national bank branch.
Disaster Issuances 10/5/05
Reg D Annual Adjustments Announced
The FRB has amended Reg D to reflect the annual indexing of the low reserve tranche and of the reserve requirement exemption amount for 2006 that will be used in the calculation of reserve requirements and deposit reporting.
Reg D Adjustments 10/5/05
FDIC State And Regional Profiles Include Hurricane Assessments
The FDIC has posted the Fall 2005 State Profiles online and added a new Regional Profile which highlight trends through the second quarter of 2005 and provides an initial assessment of the impact of Hurricanes Katrina and Rita on local economies as well as the state of the housing boom in local markets.
Regional Profile 10/5/05
International Reserve Position Update
The U.S. International Reserve Position has been updated by Treasury to include data as of September 30, 2005.
Reserve Position 10/5/05
Counterfeit Official Checks Special Alerts Issued
The FDIC has issued three Special Alerts regarding counterfeit official checks drawn on The Rockport National Bank, Rockport, Massachusetts; High Point Bank and Trust Company, High Point, North Carolina; and The Simsbury Bank & Trust Company, Simsbury, Connecticut. Information concerning the counterfeit official checks has been posted on the BOL Alerts & Counterfeits page. 10/4/05
OTS Releases CRA Evaluations
The CRA evaluations for savings associations that became publicly available during September 2005 have been released by OTS.
CRA Evaluations 10/4/05
Seven SDGTs Added To OFAC List
OFAC has designated seven individuals as SDGTs and added their names to the SDN list. Information regarding the new entries has been posted on the BOL OFAC Page. 10/3/05
Fraudulent And Counterfeit Checks Special Alerts
The FDIC has issued three Special Alerts regarding fraudulent checks that bear the name of the Federal Reserve Bank of San Francisco and counterfeit official checks drawn on Farmington Savings Bank, Farmington, Connecticut, and Savings Institute Bank and Trust Company, Willimantic, Connecticut. Information concerning the fraudulent checks and the counterfeits checks has been posted on the BOL Alerts & Counterfeits page. 10/3/05
Quarterly Journal Released Online
The OCC has posted on its Web site the Second Quarter 2005 Quarterly Journal which contains condition and performance tables; special supervision and enforcement, licensing decisions; appeals; links to speeches, testimony, and interpretations; and corporate structure data.
Quarterly Journal 10/3/05
Derivatives Volume Tops $96 Trillion
The Second Quarter 2005 Bank Derivatives Report has been issued by the OCC and indicates derivatives held by U.S. commercial banks increased by $5.1 trillion in the second quarter of 2005 to $96.2 trillion.
Bank Derivatives Report
Basel II implementation Plan Revised
FHC List Update
The FRB has updated the list of BHCs that have elected to be treated as FHCs to include those making the decision as of September 30, 2005.
FHC List 10/3/05
Country Exposure Data Released
The FFIEC has released the June 30, 2005 E.16 which contains the Country Exposure Statistical Release and the Country Exposure Information Report.
Agricultural Finance Databook Revised
The E.15 Agricultural Finance Databook has been revised by the FRB to correct annual totals of some tables that were posted incorrectly in the March and June 2005 editions of the databook.