Top Stories for March 2009

CRA Ratings Released

The OCC has released the ratings received by thirty-three national banks that were recently evaluated for compliance with the provisions of the CRA. Ratings  3/31/09

Written Agreement Announced

The FRB has announced the execution of a Written Agreement by and among BankEast Corporation, a registered bank holding company, BankEast, a state chartered member bank, both of Knoxville, TN, and the Federal Reserve Bank of Atlanta. Agreement  3/31/09

Flood Disaster Assistance Activated

The NCUA has activated its disaster relief policy to assist credit unions and their members affected by the severe weather and flooding in North Dakota and Minnesota. Flood Disaster  3/31/09

OTS Publishes Final Rule in FR for Prohibited Service at Savings and Loan Holding Companies Extension of Expiration Date of Temporary Exemption

The OTS is revising its rules implementing section 19(e) of the Federal Deposit Insurance Act (FDIA), which prohibits any person who has been convicted of any criminal offense involving dishonesty, breach of trust, or money laundering (or who has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense) from holding certain positions with respect to a savings and loan holding company (SLHC). TXT; PDF  3/31/09

FRB Payment Systems Fourth Quarter Data

The Fourth Quarter 2008 data for check services and automated clearinghouse operations has been released by the FRB. Check Services; Automated Clearinghouse  3/31/09

Georgia Bank Closed

The OCC has closed Omni National Bank, Atlanta, GA; the FDIC was appointed receiver and entered into an agreement with SunTrust Bank, Atlanta, GA, to act as paying agent for the insured deposits. Omni  3/30/09

Flood Penalties Approach $300,000

The FDIC has announced that eight banks have received penalties totaling $298,940.00 for flood violations. Information regarding the violations and the penalties has been posted on the BOL Flood Penalties Watch page.  3/30/09

OFAC CMPs Released

The civil money penalties (CMPs) recently issued by the Treasury for violations of various Sanctions Programs has been released. No financial institutions were cited. CMPs  3/30/09

Written Agreement with Illinois Bank

The FRB has announced the execution of a Written Agreement by and among First State Bank of Red Bud, Red Bud, IL, a state member bank, the Federal Reserve Bank of St. Louis, and the Illinois Department of Financial and Professional Regulation, Division of Banking, Springfield, IL. Written Agreement  3/30/09

45 Enforcement Orders Released

The FDIC has released a list of forty-five orders of administrative enforcement actions taken against banks and individuals in February, 2009. Orders  3/30/09

CU Conservatorships Update

The NCUA has instituted periodic reporting to stakeholders on the status of the corporate credit union system and the conservatorships of U.S. Central Federal Credit Union (U.S. Central) and Western Corporate Federal Credit Union (Wescorp). Update  3/30/09

Industrial Production Annual Report

The annual revision of the G.17 Industrial Production and Capacity Utilization Report has been issued by the FRB. G.17  3/30/09

Fourth Quarter $9.2 Billion Trading Loss

The OCC has released its Quarterly Report on Bank Trading and Derivatives Activities for the Fourth Quarter 2008, which indicates cash and derivative instruments trading losses of $ 9.2 billion in the quarter. Quarterly Report  3/30/09

Geithner's Rules of the Road

In written testimony before the House Financial Services Committee, Secretary Geithner discussed financial regulatory reform. He presented an overview of the development of the last 18 months regarding the crisis and its fundamental causes and outlined a framework to move toward a more stable and resilient financial system intended to reduce systemic risk. He stated. "We must create a resolution regime that provides authority to avoid the disorderly liquidation of any nonbank financial firm whose disorderly liquidation would have serious adverse effects on the financial system or the U.S. economy." Testimony; Rules of the Road  3/27/09

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

On September 19, 2008, the Board of Governors of the Federal Reserve System adopted the Asset-Backed Commercial Paper Money Market Mutual Fund Liquidity Facility, which 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 asset-backed commercial paper (ABCP) from money market mutual funds. The purpose of this action was to reduce strains being experienced by money market mutual funds. To facilitate national bank participation in the program, the Office of the Comptroller of the Currency (OCC) adopted on September 19, 2008, on an interim final basis, an exemption from its risk-based capital guidelines for ABCP held by a national bank as a result of its participation in this program. This rule finalizes the risk-based capital exemption and extends the risk-based capital exemption to ABCP purchased beyond the original January 30, 2009, date. It applies the risk-based capital exemption to any ABCP purchased as a result of a national bank's participation in the facility. The risk-based capital exemption will continue to apply if the AMLF is extended beyond October 30, 2009.TXT; PDF  3/27/09

Flood Affected Bank Offices May Close

The OCC has issued a proclamation allowing national bank offices affected by floods in the upper Midwest to close at their discretion. Proclamation  3/27/09

LLP Comments Sought

The FDIC is seeking comments regarding the recently announced Legacy Loans Program (LLP) remove troubled loans and other assets from FDIC-insured institutions and attract private capital to purchase the loans. Comments may be submitted online until April 10, 2009. LLP; Comments  3/27/09

$68 Million Bank Ponzi Scheme Halted

An emergency court order requested by the SEC has halted a $68 million Ponzi scheme involving the sale of fictitious high-yield certificates of deposit by Caribbean-based Millennium Bank and its U. S. affiliates. The scheme targeted U.S. investors and purportedly offered returns that were up to 321 percent higher than legitimate bank-issued CDs. Scheme  3/27/09

Corporate Credit Union Stabilization Fund Proposed

The NCUA Board has approved proposed legislation that would create if enacted the Corporate Credit Union Stabilization Fund to absorb losses associated with the corporate credit union stabilization actions and assess federally insured credit unions for associated costs over as much as a 7-year period. Fund  3/27/09

SDNTs Removed from OFAC List

The Treasury has removed the names of five individuals previously designated as SDNTs from the SDN List. Information regarding the removals has been posted on the BOL OFAC page.  3/26/09

SCRA Examination Procedures

A Consumer Affairs (CA) Letter has been issued by the FRB regarding the Interagency Procedures for the Servicemembers Civil Relief Act (SCRA) which were recently approved by the FFIEC Task Force on Consumer Compliance. CA Letter; Procedures  3/26/09

Reg R and Bank Brokerage Activities

A CEO Letter has been issued by the OTS regarding Reg R and Bank Brokerage activities. Letter  3/26/09

NCUA Publishes Final Rule in FR for Regulatory Flexibility Regarding Ownership of Fixed Assets

NCUA is amending its Regulatory Flexibility (RegFlex) Program to provide additional flexibility to qualifying federal credit unions (FCUs) when acquiring unimproved land for future expansion. This amendment increases the three years to six years for RegFlex FCUs without a waiver. NCUA is also making conforming amendments to its fixed asset rule to be consistent with the RegFlex changes. TXT; PDF  3/26/09

NCUA Proposes Rulemaking for Credit Union Reporting

NCUA is modernizing the way insured credit unions submit reports and other important information and has developed an online, Web-based system to make reporting more efficient and cost effective. The new system will also enhance the accuracy of information by providing a means for updating certain data outside the financial reporting cycle. NCUA is proposing revisions to its regulations involving reporting procedures and record retention requirements to conform regulatory provisions to the new online system. The proposal incorporates into the regulation a statutory requirement on reporting changes in senior officials resulting from election or appointments and would clarify requirements on when credit unions file reports with NCUA online. The proposal also includes provisions that provide alternative reporting methods for credit unions unable to submit online reports.
TXT; PDF  3/26/09

NCUA Proposes Rulemaking for Truth in Savings Act Disclosures

As required by the Truth in Savings Act (TISA), NCUA is proposing to amend its TISA rule and official staff interpretation to align it with the Federal Reserve Board's Regulation DD. Specifically, the rule would amend the provisions and provide guidance on the electronic delivery of disclosures. Additionally, NCUA is proposing to amend the rule and the official staff commentary to require all credit unions to disclose aggregate overdraft fees on periodic statements; currently, this disclosure requirement only applies to credit unions that promote the payment of overdrafts. The proposed rule also addresses balance disclosures credit unions provide to members through automated systems. TXT; PDF  3/26/09

Fraudulent E-Mail Alert

The FDIC has issued a Consumer Alert regarding numerous reports of a fraudulent e-mail that has the appearance of being sent from the FDIC. The subject line of the e-mail is: "Inquiry about your bank account." The e-mail tells recipients to update some information on their bank accounts as soon as possible in order to confirm their identities. Consumer Alert  3/26/09

Counterfeit Checks Special Alerts

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

• City National Bank, Beverly Hills, California (Counterfeit Cashier's Checks);
• Plantation Federal Bank, Pawleys Island, South Carolina (Counterfeit Official Checks);
• Mile High Banks, Longmont, Colorado (Counterfeit Cashier's Checks);
• Commonwealth Bank, FSB, Mount Sterling, Kentucky (Counterfeit Cashier's Checks);
• Clinton National Bank, Clinton, Iowa (Counterfeit Cashier's Checks);
• State Bank of De Kalb, De Kalb, Texas (Counterfeit Expense Checks); and
• Bank of Ripley, Ripley, Tennessee (Counterfeit Official Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  3/25/09

Written Agreements Announced

The FRB has announced the execution of the following Written Agreement by and between:

• Spring Grove Investments, Inc., Spring Grove, Minnesota, a registered bank holding company, and the Federal Reserve Bank of Minneapolis;
• Pine City Bancorporation, Inc., Pine City, Minnesota, a registered bank holding company, and the Federal Reserve Bank of Minneapolis; and
• BancMidwest Corporation, Saint Paul, Minnesota, a registered bank holding company, and the Federal Reserve Bank of Minneapolis; and
• Premier Bancshares, Inc., Jefferson City, Missouri, a registered bank holding company, and the Federal Reserve Bank of St. Louis.

Spring Grove; Pine City; BancMidwest; Premier  3/25/09

314(a) Fact Sheet Updated

FinCEN has updated the 314(a) Fact Sheet with data current as of March 24, 2009. 314(a)  3/25/09

Bogus Loan Modification Companies Stopped

A U.S. district court has granted the request of the FTC and ordered two companies to stop falsely advertising that they are part of the HOPE NOW Alliance, a government-endorsed mortgage assistance network, and that they successfully modify mortgages for almost all of their clients or else give refunds. Order  3/25/09

Bernanke Calls for Federal Regulation of Nonbank Financial Firms

In testimony before the House Committee on Financial Services, Chairman Bernanke discussed the Federal Reserve's involvement with American International Group, Inc. (AIG). He reviewed the reasons for the original lending decision, the regulator's ongoing involvement, and lessons learned. He noted that federal bankruptcy laws do not sufficiently protect the public's strong interest in ensuring the orderly resolution of nondepository financial institutions when a failure would pose substantial systemic risks. He stated: "AIG highlights the urgent need for new resolution procedures for systemically important nonbank financial firms... highlights the need for strong, effective consolidated supervision of all systemically important financial firms." Testimony  3/25/09

Geithner on AIG

Secretary Geithner, in written testimony before the House Committee on Financial Services, commented on the federal government's dealings with the American International Group, Inc. (AIG). He noted that AIG highlights broad failures of our financial system, our regulatory system was not equipped to prevent the build up of dangerous levels of risk and the U.S. government does not have the legal means today to manage the orderly restructuring of a large, complex, non-bank financial institution that poses a threat to the stability of our financial system. He stated that the legislation proposed by the Administration proposes would give the U.S. government the same basic set of tools for addressing financial distress at non-banks as it has in the bank context that allows the providing of financial assistance to make loans, purchase obligations or assets, assume or guarantee liabilities, and purchase an equity interest. Testimony  3/25/09

Directors Workshops Scheduled

The OCC will host workshops for national community bank directors in Oakbrook, IL, on May 19-20, 2009. Online registration is available. Workshops; Registration  3/25/09

Reserve Position Update

the Treasury has updated the U.S. International Reserve Position Report with data current as of March 20, 2009. Report  3/25/09

Credit Auction Results

The Federal Reserve has announced the results of the auction of $150 billion in 84-day credit held on March 23, 2009. Results  3/25/09

Toxic Assets (Legacy Assets) Purchase Plan Unveiled

The Treasury has released the details of the Public Private Partnership Investment Program which will purchase loans and securities (Legacy Assets) from financial institutions and remove from the books of the institutions. Summary; Web Site; White Paper; Fact Sheet; FAQ  3/24/09

Order of Prohibition and CMP

A Consent Order of Prohibition and Order of Assessment of Civil Money Penalty in the amount of $20,000 have been issued by the FRB against G. Craig Chupik, a former vice president, loan officer, and institution-affiliated party of PlainsCapital Bank, Dallas, TX. Order  3/24/09

Written Agreement with Oregon BHC

The FRB has announced the execution of a written agreement by and between Columbia Commercial Bancorp, Hillsboro, OR, a registered bank holding company, the Federal Reserve Bank of San Francisco, and the Oregon Department of Consumer and Business Services, Division of Finance and Securities. Written Agreement  3/24/09

Failed Institution Notice

FRB Financial Services has issued a Failed Institution Notice regarding the closing of and placement into receivership of First City Bank, Stockbridge, GA. Information concerning return items and other matters can be found on the FDIC Failed Bank Information web page. Notice  3/24/09

TLGP Changes

A FIL has been issued by the FDIC regarding the amendment of certain reporting requirements, clarification of previously issued reporting guidance and consolidation of reporting instructions concerning the entities participating in the debt guarantee component of the Temporary Liquidity Guarantee Program (TLGP). FIL  3/24/09

FRB proposes Rulemaking for Truth in Lending

The Board proposes to amend Regulation Z, which implements the Truth in Lending Act (TILA) following the passage of the Higher Education Opportunity Act (HEOA). Title X of the HEOA amends TILA by adding disclosure and timing requirements that apply to creditors making private education loans, which are defined as loans made expressly for postsecondary educational expenses, but excluding open-end credit, real estate-secured loans, and loans made, insured, or guaranteed by the Federal government under title IV of the Higher Education Act of 1965. The HEOA also amends TILA by adding limitations on certain practices by creditors, including limitations on "co-branding" their products with educational institutions in the marketing of private student loans. The proposal requires that creditors obtain a self-certification form signed by the consumer before consummating the loan. It also requires creditors with preferred lender arrangements with educational institutions to provide certain information to those institutions. TXT; PDF  3/24/09

Three Banks Closed

The OCC has announced the closing of TeamBank, National Association, Paola, KS, and Colorado National Bank, Colorado Springs, CO, both wholly owned subsidiaries of Team Financial, Inc., Paola, KS; and the Georgia Department of Banking and Finance announced the closing of FirstCity Bank, Stockbridge, GA. The FDIC was appointed receiver of the banks, the deposits of TeamBank and Colorado national were assumed by other institutions and the payout of insured deposits of FirstCity was approved. TeamBank; Colorado National; FirstCity  3/23/09

CUs Placed in Conservatorship

The NCUA has placed U.S. Central Federal Credit Union, Lenexa, KS, and Western Corporate (WesCorp) Federal Credit Union, San Dimas, CA, into conservatorship. Conservatorships  3/23/09

Written Agreement with Kansas BHC

The FRB has announced the execution of a written agreement by and among Thunder Bancorp, Inc., a registered bank holding company, Thunder Bank, a state chartered member bank, both of Sylvan Grove, KS, and the Federal Reserve Bank of Kansas City. Written Agreement  3/23/09

Corporate CU Stabilization Program Webcast

The NCUA has announced it will host a two hour webcast on Monday, March 23, 2009, to provide the credit union community with an update on the corporate credit union stabilization program. The webcast will commence at 2:00 p.m. EST and registration is open until 1:45 p.m. EST on Monday, March 23. Webcast; Registration  3/23/09

Enforcement Actions Released

The OCC has released the new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions  3/23/09

Omaha County Items Availability Changed

The FRB Financial Services has announced that effective April 20, 2009, the availability will be modified on Omaha country items deposited in paper mixed cash letters. Availability  3/23/09

FDIC Publishes Interim Rule in FR for Amendment of the Temporary Liquidity Guarantee Program to Extend the Debt Guarantee Program

The FDIC is issuing this Interim Rule to amend the Temporary Liquidity Guarantee Program (TLGP) by providing a limited extension of the Debt Guarantee Program (DGP) for insured depository institutions (IDIs) participating in the DGP. This rule imposes surcharges on certain debt issued on or after April 1, 2009. Any surcharge collected will be deposited into the Deposit Insurance Fund (DIF or Fund). It also establishes an application process whereby entities participating in the extended DGP may apply to issue non-FDIC-guaranteed debt during the extension period. TXT; PDF  3/23/09

FRB Publishes Final Rule in FR for Capital Adequacy Guidelines

This final rule delays the March 31, 2009, implementation date for certain amendments to the Board's capital adequacy guidelines for bank holding companies on trust preferred securities and the definition of capital published by the Board in the Federal Register on March 10, 2005. Due to the continuing stressed conditions in the financial markets and in order to promote stability in the financial markets and the banking industry as a whole, the Board has decided to delay until March 31, 2011, the implementation date of new requirements that: limit the aggregate amount of cumulative perpetual preferred stock, trust preferred securities, and minority interests in the equity accounts of most consolidated subsidiaries (collectively, restricted core capital elements) included in the tier 1 capital of all bank holding companies; require bank holding companies to deduct goodwill, less any associated deferred tax liability, from the sum of core capital elements in calculating the amount of restricted core capital elements that may be included in tier 1 capital; and impose further limits on the amount of restricted core capital elements that internationally active bank holding companies may include in tier 1 capital. TXT; PDF  3/23/09

Bernanke and Bair on the Financial Crisis and Community Banking

In presentations at the Independent Community Bankers of America's National Convention, Chairmen Bernanke and Bair commented on the financial crisis and its impact on community banks. Chairman Bernanke discussed the Federal Reserve actions to address the financial crisis; the condition and outlook for community banks; the "too big to fail" problem; and reducing procyclicality. He stated, "If community banks are prudent, but opportunistic in extending credit to strong borrowers, they will help the economy recover while benefiting from that recovery themselves." Chairman Bair reviewed the actions of the FDIC regarding assessments, the creation of a new community banking panel, TLGP income and the DIF, the fee outlook, and the "too big to fail" problem. She urged community bankers to "stay active in your market. Make loans available to worthy customers, and serve your communities that are counting on you." Bernanke Speech;
Bair Speech  3/23/09

Dugan on OCC Authority

In testimony before the House Committee on Financial Services, Comptroller Dugan discussed the OCC's supervisory and enforcement authority. Testimony  3/23/09

Fourth Quarter Earnings Report Revised

The FDIC has released a revised Quarterly Banking Profile for the fourth quarter of 2008, containing significant amendments reflecting substantially higher charges for goodwill impairment in the fourth quarter. Revised Profile  3/23/09

Counterfeit Cashier's Checks Alert

The OCC has released an alert regarding counterfeit cashier's checks issued in the name of Peoples National Bank, N.A. of Mount Vernon, Illinois. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  3/20/09

Regulators Discuss Regulatory Reform

In testimony before the Senate Banking Committee, Chairman Bair and Comptroller Dugan expressed their views on reforming the country's financial regulatory system. Chairman Bair commented on addressing systemic risk; limiting risk by limiting size and complexity; managing a transition to a safer system; new resolution procedures; consumer protection; changing the OTC market; and protecting money market funds. Comptroller Dugan discussed the establishment of a systemic risk regulator; the wind down of firms that are not banks; the preservation a role for a banking supervisor that has no other job than to supervised banks plus preserve a supervisory role for the FRB; and the establishment of national standards for mortgage regulation. Bair Statement; Dugan Oral Statement; Dugan Written Testimony  3/20/09

Asset-Backed Securities added to TALF Collateral List

The FRB has announced that four additional categories of asset-backed securities have been added to the list of eligible collateral for loans extended by the Term Asset-Backed Loan Facility (TALF). TALF  3/20/09

Making Home Affordable Web Site

The Treasury and HUD have launched a new website for consumers seeking information about the Making Home Affordable loan modification and refinancing program. Web Site  3/20/09

Auto Supplier Support Program

A new program to help stabilize the auto supply base and restore credit flows has been announced by the Treasury. The Auto Supplier Support Program will provide up to $5 billion in financing, giving suppliers the confidence they need to continue shipping parts, pay their employees and continue their operations. Summary; Fact Sheet  3/20/09

CDFI Fund Implementation Plan Details

The Treasury has released the details of the implementation of Community Development Financial Institutions (CDFI) Fund regarding the award of nearly $100 million in grants and $3 billion in additional tax credit authority to support community-based financial institutions. CDFI  3/19/09

Written Agreement with Iowa BHC Announced

The FRB has announced the execution of a written agreement by and between FNB Holding Company, West Des Moines, Iowa, a registered bank holding company, and the Federal Reserve Bank of Chicago. Agreement  3/19/09

Counterfeit Cashier's Checks Alert

The OCC has released an alert regarding counterfeit cashier's checks issued in the name of First National Bank of Hutchinson, Hutchinson, KS. Information concerning the counterfeit cashier's checks has been posted on the BOL Alerts & Counterfeits page.  3/19/09

FOMC Statement

The Federal Open Market Committee (FOMC) has issued a statement regarding the changes in the economy that have occurred since its January meeting. Statement  3/19/09

Long Testifies before Senate Banking Committee

The OCC Senior Deputy Comptroller for Bank Supervision Policy and Chief National Bank Examiner Long has testified about risk management before the Subcommittee on Securities, Insurance, and Investment of the Senate Committee on Banking, Housing, and Urban Affairs. Oral Statement; Testimony  3/19/09

Tier 1 Capital Changes Delayed

A final rule has been adopted by the FRB that delays the effective date of the new limits on the inclusion of trust preferred securities and other restricted core capital elements in tier 1 capital until March 31, 2011. Final Rule  3/18/09

TLGP Debt Guaranty Extended

The FDIC has issued an Interim Rule extending the debt guarantee portion of the Temporary Liquidity Guarantee Program (TLGP) from June 30, 2009 through October 31, 2009, and imposing a surcharge on debt issued with a maturity of one-year or more beginning in the second quarter to gradually phase-out the program. Board Memo; Interim Rule  3/18/09

Written Agreements Announced

The FRB has announced the execution of written agreements by and among the Société Générale, Paris, France; the bank's branch in New York, New York; the Federal Reserve Bank of New York; and the New York State Banking Department regarding BSA and AML compliance polices and practices; and by and between Omni Financial Services, Inc., Atlanta, Georgia, a registered bank holding company, and the Federal Reserve Bank of Atlanta. Société Générale; Omni  3/18/09

Section 19 Letters Released

The FRB has published six letters that were sent to individuals, who are prohibited pursuant to the provisions of Section 19 of the Federal Deposit Insurance Act, from becoming or continuing to be an institution-affiliated party with respect to a banking organization or a credit union. Letters  3/18/09

Credit Repair Companies Charged

Seven related companies have been charged by the FTC with violating federal law by falsely promising to remove negative information from consumers' credit reports, charging an up-front fee, and failing to provide written disclosures. Charges  3/18/09

Fourth Quarter Charge-Off Rates

The OTS has released the thrift industry charge-off rates for the fourth quarter 2008. Charge-off Rates  3/18/09

Cost of Funds Reports Issued

The OTS has issued the historical and current cost of funds for OTS regulated institutions. Historical; Current  3/18/09

Household Debt Service and Financial Obligations Ratios Report

The data for the fourth quarter 2008 has been posted on the Household Debt Service and Financial Obligations Ratios Report. Report  3/18/09

Reserve Position Update

The U.S. International Reserve Position Report has been updated by the Treasury with data current as of March 13, 2009. Reserve Position  3/18/09

April 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 April 2009, 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. Since March 15, 2009 was a Sunday, use the rate on March 13, 2009, the business day immediately preceding the 15th. H.15  3/17/09

Geithner Reveals Plan for Small Business Capital Plans

Secretary Geithner released an outline of the Financial Stability Plan (FSP) intended to help ensure that credit starts flowing again to entrepreneurs and business owners. He also indicated, under the provisions of the Consumer and Business Lending Initiative, that the Treasury will soon begin making direct purchases of securities backed by SBA loans to get the credit market moving again. Summary; Remarks; Q&A  3/17/09

OTS to Realign Regions and Enhance Supervision

A CEO Letter has been issued by the OTS regarding plans to realign its regional structure and enhance supervision of the largest thrifts. CEO Letter  3/17/09

CU Credit Stabilization Letter

The NCUA has issued a letter which can be utilized by credit unions to explain to their members the details of recent actions taken to stabilize the corporate credit union system. Credit unions are encouraged to post the letter in lobbies, on websites and regular or electronic mail. Letter  3/17/09

Mortgage Fraud Connected to Other Crimes

The FinCEN has released a report that shows individuals and entities suspected of mortgage loan fraud may also be involved in other financial crimes such as check fraud, money laundering, stock manipulation, and structuring to avoid currency transaction reporting requirements. Report  3/17/09

January TIC Data

The Treasury International Capital data for January 2009 has been released. TIC  3/17/09

Production and Capacity Report

The Treasury has released the February 2009 G.17 Industrial Production and Capacity Utilization Report. G.17  3/17/09

FHC List Updated

The list of bank holding companies (BHCs) that have elected to be financial holding companies (FHCs) as of March 11, 2009, has been released by the FRB. FHC List  3/17/09

FEDS Income and Wealth Working Paper

A working paper in the Finance and Economic Discussion Series (FEDS) on the topic of
"Ponds and Streams: Wealth and Income in the U.S., 1989 to 2007", has been published by the FRB. Abstract; Full Paper  3/17/09

New Routing Numbers Announced

FRB Financial Services has announced new routing numbers effective March 23, 2009, for FedReceipt Forward and FedReceipt Returns products. Routing Numbers  3/16/09

FedFlash Online

The March 2009 issue of FedFlash has been posted online. FedFlash  3/16/09

Flow Of Funds Report

The Fourth Quarter 2008 Z. 1 Flow of Funds Accounts of the United States Report has been released by the FRB. Z. 1  3/13/09

TIL Amendments Proposed

The FRB has proposes amendments to Regulation Z (Truth In Lending) to revise disclosure requirements for private education loans. Amendments  3/12/09

FRB Minutes Released

The minutes of the FRB meetings from July 13 through December 16, 2008, concerning Federal Reserve liquidity facilities and other matters related to the financial turmoil of the period have been released. Minutes  3/12/09

Central Bank Liquidity Swaps FAQ

A list of frequently asked questions (FAQs) regarding Credit and Liquidity Programs and the Balance Sheet has been issued by the FRB. FAQs  3/12/09

Community Bank Directors Workshops Scheduled

The OCC will host workshops for national community bank directors in Point Clear, Alabama, at the Grand Hotel Marriott, April 7-8, 2009. Workshops  3/12/09

Consumer Money Management Tips

The FDIC has published a special edition of the FDIC Consumer News entitled "Managing Your Money in Good Times and Bad" regarding tips to help consumers spend less, save more, protect against fraud and borrow wisely at any time, but especially during a difficult economy. Consumer News  3/12/09

TALF Fraud Task Force Formed

A multi-agency task force to deter, detect and investigate fraud in Term Asset-Backed Securities Loan Facility (TALF) has been formed. Task Force  3/12/09

Reserve Position Update

The Treasury has updated the U.S. International Reserve Position Report with data current as of March 6, 2009. Report  3/12/09

Bernanke Calls for Financial Reform

In a presentation at the Council on Foreign Relations meeting in Washington, D.C., Chairman Bernanke discussed the current world-wide financial crisis and stated "the risk-management systems of the private sector and government oversight of the financial sector in the United States and some other industrial countries failed to ensure that the inrush of capital was prudently invested". He also commented on the too big to fail concept, strengthening the financial infrastructure, procyclicality in the regulatory system, and systemic risk authority. Speech  3/11/09

Foreign Accounts Special Due Diligence Programs

The FinCEN has issued a report regarding Special Due Diligence Programs for Certain Foreign Accounts. Report  3/11/09

FinCEN Issues MSB Rulings

Two rulings have been issued by FinCEN. One regarding whether certain operations of a service provider to prepaid stored value program participants is a money services business (MSB) and the other concerning whether a MSB must establish and maintain separate deposit accounts for its separate check cashing and money transmission lines of business. First Ruling; Second Ruling  3/11/09

Disposing of Foreclosed Properties

The OCC has published the March 2009 issue of Community Developments Insights which contains a report that describes how banks and their partners in the community are working to dispose of foreclosed properties in creative ways that will preserve affordable housing opportunities and stabilize communities. Insights  3/11/09

Corporate CU Report Summary Released

The NCUA has released releasing a summary of the PricewaterhouseCoopers LLP report, with recommendations for stabilization and improvement of the corporate credit union system. Summary  3/11/09

Credit Auction Results

The Federal Reserve has announced the results of its March 9, 2009 auction of $150 billion in 28-day credit through its Term Auction Facility. Auction  3/11/09

IFDP Working Papers Published

Two working papers in the International Finance Discussion Paper (IFDP) series have been published by the FRB on the topics of "Tax Smoothing in Frictional Labor Markets" and "Currency Crashes in Industrial Countries: Much Ado About Nothing?". Tax Abstract; Tax Full Paper; Currency Abstract; Currency Full Paper  3/11/09

Flood CMP Assessed

The FRB has announced the issuance of a consent Order of Assessment of a Civil Money Penalty (CMP) in the amount of $1,710 against East Dubuque Savings Bank, East Dubuque, Illinois in connection with its alleged violations of the Board's regulations implementing the National Flood Insurance Act. Information regarding the CMP has been posted on the BOL Flood Penalties Watch page.  3/10/09

Written Agreement with Kansas Institutions

The execution of a written agreement by and among SolutionsBank Corporation, a registered bank holding company, SolutionsBank, a state chartered member bank, both of Overland Park, Kansas, the Federal Reserve Bank of Kansas City, and the Kansas Office of State Bank Commissioner has been announced by the FRB.
Written Agreement
  3/10/09

HUD Publishes Interim Rule in FR for the Real Estate Settlement Procedures Act

This rule simplifies and improves the process of obtaining mortgages and reduces consumer settlement costs; it also further defers the applicability date for the revied definition of "required use" and solicitation of public comment on the withdrawal of the Required Use Provision.
TXT; PDF  3/10/09

Agricultural Finance Databook Published

The March 2009 E.15 Agricultural Finance Databook has been published by the FRB. E.15  3/10/09

The OCC, OTS and Treasury Propose Rulemaking for Confidentiality of Suspicious Activity Reports

The OCC and OTS propose to amend its regulations implementing the Bank Secrecy Act (BSA) governing the confidentiality of a suspicious activity report (SAR) to: Clarify the scope of the statutory prohibition on the disclosure by a financial institution of a report of a suspicious transaction, as it applies to national banks; address the statutory prohibition on the disclosure by the government of a SAR, as that prohibition applies to the OCC's standards governing the disclosure of SARs; clarify the exclusive standard applicable to the disclosure of a SAR, or any information that would reveal the existence of a SAR, by the OCC is "to fulfill official duties consistent with the purposes of the BSA;" and modify the safe harbor provision in its rules to include changes made by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act. These amendments are based upon a similar proposal being contemporaneously issued by the Financial Crimes Enforcement Network (FinCEN). OCC TXT; OCC PDF; OTS TXT; OTS PDF  3/9/09

The OCC and OTS Propose Rulemaking for Standards Governing the Release of a Suspicious Activity Report

The Office of the Comptroller of the Currency (OCC) is proposing to revise its regulations governing the release of non-public OCC information. The primary change being proposed would clarify that the OCC's decision to release a suspicious activity report (SAR) will be governed by the standards set forth in proposed amendments to the OCC's SAR regulation that are part of a separate, but simultaneous, rulemaking.TXT; PDF  3/9/09

FinCEN Proposes Rulemaking for Interpretive Guidance--Sharing Suspicious Activity Reports by Depository Institutions With Certain U.S. Affiliates

FinCEN is issuing for comment a proposed interpretive guidance, which interprets a provision to permit a bank to share a SAR with its affiliates that also are subject to SAR rules. TXT; PDF  3/9/09

FinCEN Proposes Rulemaking for Interpretive Guidance “ Sharing Suspicious Activity Reports by Securities Broker“Dealers and others.

FinCEN is issuing for comment a proposed interpretive guidance, which interprets a provision to permit a securities broker-dealer, mutual fund, futures commission merchant, or introducing broker in commodities to share a SAR with its affiliates that are also subject to SAR rules. TXT; PDF  3/9/09

National Banks Authorized to become ICE Trust Clearing Members

The OCC has issued an Interpretative Letter which authorizes a national bank with written approval from an examiner in charge to become a clearing member of ICE Trust, a clearinghouse for over-the-counter credit default swaps. Letter  3/9/09

Georgia Bank Closed Deposits Assumed

The Freedom Bank of Georgia, Commerce, Georgia, was closed today by the Georgia Department of Banking and Finance; FDIC appointed receiver; and all deposits were assumed by the Northeast Georgia Bank, Lavonia, Georgia. Georgia Bank  3/9/09

FedGlobal Service Announced

FRB Financial Services has announced that in September 2009, customers will be able to both send and receive ACH credit payments to and from Panama in addition to the existing service to Canada and Mexico and by early first quarter 2010 service will be expanded to more than 60 countries. FedGlobal  3/9/09

Consumer Credit Report Released

The G. 19 Consumer Credit Report for January 2009 has been released by the FRB. G.19  3/9/09

CRA Ratings Released

The FDIC has released the ratings received by state nonmember banks recently evaluated for compliance with the provisions of the CRA. Ratings  3/6/09

Consumer Foreclosure Scam Tips

The FRB has issued five tips for consumers regarding avoiding foreclosure scams. Summary; Tips  3/6/09

Car Buyers FEDS Working Paper

A working paper in the Finance and Economics Discussion Series (FEDS) on the topic "Heterogeneous Car Buyers: A Stylized Fact", has been published by the FRB. Abstract; Full Paper  3/6/09

Counterfeit Checks Special Alerts

Four Special Alerts have been issue by the FDIC regarding counterfeit checks bearing the name of the following institutions:

• American Bank of Texas, Sherman, Texas (Counterfeit Cashier's Checks);
• Gilmer National Bank, Gilmer, Texas (Counterfeit Cashier's Checks);
• Gulfstream Business Bank, Stuart, Florida (Counterfeit Checks); and
• Cooper State Bank, Dublin, Ohio (Counterfeit Cashier's Checks).

Information concerning the counterfeit checks has been posted on the BOL Alerts & Counterfeits page.  3/5/09

Home Loan Modification Guidelines Released

The Treasury has released guidelines to enable servicers to begin modifications of eligible mortgages under the Homeowner Affordability and Stability Plan previously announced by President Obama. The federal bank, thrift, and credit union regulatory agencies have issued a statement encouraging all federally regulated financial institutions that service or hold residential mortgage loans to participate in the program. Guidelines; Summary; Fact Sheet; FRB PR; OCC NR; FDIC PR; OTS PR  3/5/09

Five Added to OFAC List

The five political and military leaders of the Forces Democratiques de Liberation du Rwanda (FDLR) have been designated by the Treasury and added to the OFAC SDN list. Information regarding the leaders has been posted on the BOL OFAC page.  3/5/09

NCUA Proposes Rulemaking for Operating Fees

The NCUA proposes to amend its rule on the assessment of the federal credit union (FCU) operating fee to exclude investments made under the Credit Union System Investment Program (CU SIP) and the Credit Union Homeowners Affordability Relief Program (CU HARP) from the calculation of total assets; total assets is the basis on which the operating fee is currently calculated. The Board believes this amendment will remove a disincentive for some FCUs from participating in the CU SIP or the CU HARP. TXT; PDF  3/5/09

Beige Book

The Treasury has published the February 2009 issue of the Beige Book, an informal review by the Federal Reserve Banks of current economic conditions in their Districts. Beige Book  3/5/09

FDIC Publishes Final Rule in FR for Assessments

The FDIC is amending their regulation 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  3/4/09

FDIC Publishes Interim/Final Rule in FR for Amended Restoration Plan; Assessments; Modification of Temporary Liquidity Guarantee Program

The FDIC is issuing this Interim Rule to make a minor modification to the Temporary Liquidity Guarantee Program (TLGP) to include certain issuances of mandatory convertible debt (MCD) under the TLGP debt guarantee program. TXT; PDF  3/4/09

NCUA Publishes Final Rule 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. NCUA is revising a rule to replace the required listing of credit unions with a statement that not all of the credit unions served by the teller are federally insured and that members should contact their credit union if they need more information. TXT; PDF  3/4/09

NCUA Publishes Final Rule in FR for Civil Monetary Penalty Inflation Adjustment

The National Credit Union Administration (NCUA) is amending its rules of practice and procedure to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction to account for inflation. This action, including the amount of the adjustment, is required under the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996. TXT; PDF  3/4/09

Bank Melli Related Companies added to OFAC List

Eleven companies with ties to Iran's Bank Melli have been designated by the Treasury as Weapons of Mass Destruction proliferators. Bank Meli was previously designated as a proliferator for its role in Iran's nuclear and ballistic missile programs. Information regarding the companies has been posted on the BOL OFAC page.  3/4/09

CRA Exam Schedule Released

The OCC has released its Second Quarter 2009 CRA Examination Schedule. Schedule  3/4/09

TALF Launched

The Treasury and the FRB have announced the launch of the Term Asset-Backed Securities Loan Facility (TALF), a component of the Consumer and Business Lending Initiative (CBLI). A white paper, term sheet and FAQs were also released. TALF; White Paper; Term Sheet; FAQs  3/4/09

Funding Sources FIL

A FIL has been issued by the FDIC regarding the use of volatile or special funding sources by financial institutions that are in a weakened condition. FIL  3/4/09

Bernanke Says More Funds May Be Needed

In testimony before the Senate Banking Committee, Chairman Bernanke stated, "Although progress has been made on the financial front since last fall, more need to be done." He indicated that the need for additional funds would depend on the results of the current assessment of banks. Testimony   3/4/09

Internal Sharing of SAR Information Proposed

The FinCEN has proposed revised rules and new guidance that permit certain affiliates of depository institutions, broker-dealers, and introducing brokers to share suspicious activity reports (SARs) within a corporate organizational structure. SAR Sharing  3/4/09

Bair on the Role of Regulators and Law Enforcement

In a presentation to the National Association of Attorneys General, Chairman Bair discussed enforcement and third parties; subprime credit cards and payday lenders; social security check scammers; issued a call state and federal action. Speech  3/4/09

MSB Registration List Updated

The FinCEN has updated the MSB Registration List with data current as of February 14, 2009. List  3/4/09

MSB Information Sharing Agreement

An information sharing agreement allowing for the exchange of information relating to Money Services Businesses (MSB) supervision has been executed by the FDIC and the Washington State Department of Financial Institutions. Agreement   3/4/09

Reserve Position Update

The Treasury has updated the U. S. International Reserve Position Report with data current as of February 27, 2009. Update  3/4/09

CRA Ratings Released

The OTS has released the ratings received by savings associations that were recently evaluated for compliance with the provisions of the CRA. Ratings  3/3/09

Dugan Proposes New Loan Loss Reserve Calculations

In a presentation before the Institute of International Bankers, Comptroller Dugan noted that current accounting standards for loan loss provisioning, both here and abroad, are based on the so-called "incurred loss" model. He stated, "We need to do a better job of telling banks and their auditors, both in the United States and elsewhere, the degree to which they are permitted to use non-historical, forward-looking judgmental factors to justify provisions to the loan loss reserve." Speech  3/3/09

Banking Challenges Discussed By Bair

Chairman Bair, in a presentation before the Institute of International Bankers, discussed the challenges currently faced by the banking industry and the actions being taken to confront them. In addition, she specifically addressed the Basel Two capital standards, cross-border resolutions, and nationalization. Speech  3/3/09

MDC Interim Final Rule FIL Issued

The FDIC has issued a FIL regarding the adoption of an interim final rule that allows entities participating in the debt guarantee portion of the Temporary Liquidity Guarantee Program (TLGP) to issue certain mandatory convertible debt (MCD). FIL  3/3/09

Treasury and FRB Participate in AIG Plan

The Treasury and the FRB have announced a restructuring of the government's assistance to AIG that is designed to enhance the company's capital and liquidity. Summary; Term Sheet  3/3/09

Guarantee Program Participants Announced

The NCU has announced the corporate credit unions that are participating in its voluntary guarantee program which consists of a temporary guarantee by the National Credit Union Share Insurance Fund (NCUSIF), of all shares (excluding paid-in-capital and membership capital accounts) at all corporate credit unions. Program  3/3/09

FDIC Publishes Interim Rule in FR for Assessments

The FDIC is adopting an interim rule to impose a 20 basis point emergency special assessment under 12 U.S.C. 1817(b)(5) on June 30, 2009. The assessment will be collected on September 30, 2009. The interim rule also provides that, after June 30, 2009, if the reserve ratio of the Deposit Insurance Fund is estimated to fall to a level that the Board believes would adversely affect public confidence or to a level which shall be close to zero or negative at the end of a calendar quarter, an emergency special assessment of up to 10 basis points may be imposed by a vote of the Board on all insured depository institutions based on each institution's assessment base calculated pursuant to 12 CFR 327.5 for the corresponding assessment period. The FDIC seeks comment on the interim rule.
TXT; PDF  3/3/09

Foreign Exchange Rates Report

The G.5 Foreign Exchange Rates Report for February 2009 has been released by the FRB. G.5  3/3/09

FDIC DIF Special Assessment Announced

The FDIC Board of Directors has amended the restoration plan for the Deposit Insurance Fund (DIF) by imposing a special assessment on insured institutions of 20 basis points, implementing changes to the risk-based assessment system, and setting rates beginning with the second quarter of 2009. DIF; Board Meeting Documents  3/02/09

Illinois and Nevada Banks Closed; Deposits Assumed

The Heritage Community Bank, Glenwood, Illinois, was closed by the Illinois Department of Financial Professional Regulation, Division of Banking; the FDIC appointed receiver; and all deposits were assumed by MB Financial Bank, N.A., Chicago, Illinois. The Security Savings Bank, Henderson, Nevada was closed by the Nevada Financial Institutions Division; the FDIC appointed receiver; and all deposits were assumed by the Bank of Nevada, Las Vegas, Nevada. Heritage; Security  3/02/09

CRA Ratings Released

The OCC has released the CRA ratings received by twenty-one national banks that were recently evaluated for compliance with the provisions of the CRA. Ratings  3/02/09

Enforcement Actions

The list of orders of administrative enforcement actions taken by the FDIC against banks and individuals in January 2009 has been released. Enforcement Actions  3/02/09

CRA Exam Schedule Announced

The FDIC has announced its second quarter 2009 CRA examination schedule. Schedule  3/02/09

C&D Order Issued

The FRB has announced the issuance of a consent Cease and Desist Order against FSB Bancorp, Inc., Altus, Oklahoma. Order  3/02/09

Examiner Guidance Issued

The NCUA has issued new supervisory guidance for agency examination staff regarding the impact the Corporate Stabilization Program may have on credit union balance sheets. Guidance  3/02/09

OFAC CMPs Announced

The civil money penalties (CMPs) recently imposed by OFAC against individuals and entities for violations of various sanctions programs have been announced. No financial institutions were listed. CMPs  3/02/09

Foreign Check Collection Moves

The FRB Financial Services has announced that effective March 2, 2009, the non-Canadian foreign check collections service provided by the Charlotte office will be moved to the Atlanta office. Foreign  3/02/09

Treasury May Participate in Citigroup Exchange Offering

The Treasury has announced that it is willing to participate in the Citigroup exchange offering under certain conditions. Treasury Announcement; Exchange Offering  3/02/09