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Top Story Compliance Related

10/14/2002

January Housing Scorecard

HUD has announced that the Obama Administration has released the January 2014 edition of its Housing Scorecard. HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski said, "In 2013, the number of U.S. properties which started the foreclosure process was down 33 percent from 2012, while sales of previously owned homes rose by 9.1 percent. With foreclosures down, home sales up, and equity continuing to grow, the housing market continues to make slow, but steadily improving progress."

10/14/2002

OCC schedules Texas workshops

An OCC News Release has announced two workshops in Houston to be held on March 11–12, 2014. The "Compliance Risk" and "Risk Assessment" workshops are designed exclusively for directors of institutions supervised by the OCC. The fee is $99 for each workshop, with attendance limited to 35 participants per session. Additional information and online registration are available.

10/14/2002

Balkans designation removals

Treasury has announced that the names of three individuals with the BALKANS designation have been removed from the OFAC SDN List. Details have been posted in a BOL OFAC Update.

10/14/2002

Comptroller's Handbook updated

OCC Bulletin 2014-2 has been issued to announce the update of the "Mortgage Banking" booklet of the Comptroller's Handbook. The booklet—

  • provides updated guidance to examiners and bankers on assessing the quantity of risk associated with mortgage banking and the quality of mortgage banking risk management
  • includes wholesale changes to the functional areas of production, secondary marketing, servicing, and mortgage servicing rights to incorporate recent lessons learned and regulatory changes
  • addresses recent amendments to Regulation X and Regulation Z issued by the Consumer Financial Protection Bureau (CFPB), as well as other statutory and regulatory changes, including those directed by the Dodd-Frank Act

10/14/2002

G.19 Consumer Credit report

The Federal Reserve Board has released the December 2013 G.19 Consumer Credit outstanding and Terms of Credit Report.

10/14/2002

January Housing Scorecard

HUD has announced that the Obama Administration has released the January 2014 edition of its Housing Scorecard. HUD Deputy Assistant Secretary for Economic Affairs Kurt Usowski said, "In 2013, the number of U.S. properties which started the foreclosure process was down 33 percent from 2012, while sales of previously owned homes rose by 9.1 percent. With foreclosures down, home sales up, and equity continuing to grow, the housing market continues to make slow, but steadily improving progress."

10/14/2002

OCC schedules Texas workshops

An OCC News Release has announced two workshops in Houston to be held on March 11–12, 2014. The "Compliance Risk" and "Risk Assessment" workshops are designed exclusively for directors of institutions supervised by the OCC. The fee is $99 for each workshop, with attendance limited to 35 participants per session. Additional information and online registration are available.

08/31/2002

Top Stories for September 2002

  • FRB Publishes Final Rule for Annual Adjustment of Fee-based Trigger for Additional Mortgage Loan Disclosures

    The Federal Reserve Board published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount. FRB Press Release 9/30/02

  • Consumer Advisory Council to meet on October 24, 2002

    The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, October 24. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. FRB Press Release 9/30/02

  • FFIEC Publishes Country Exposure Lending Survey

    Country Exposure Statistical Release 9/30/02

  • North Carolina State Treasurer to Host Conferences Featuring FDIC's Money Smart

    Women in North Carolina will have an opportunity to receive free instruction on personal finance and money management thanks to regional conferences hosted by the State Treasurer's office. The first conference will be held in Greenville on Saturday, September 28, at Faith Assembly of God Church. It begins at 8:30 a.m. and will be using the Money Smart curriculum developed by the Federal Deposit Insurance Corporation (FDIC). FDIC:PR-99-2002 9/27/02

  • FTC Launches Internet Security Initiative

    Federal Trade Commissioner Orson Swindle launched the FTC's new Internet security initiative at the Privacy2002 Conference in Cleveland, Ohio. The Commissioner detailed a "culture of security," in which consumers, educators, and businesses combine forces to change the way society thinks about privacy and security. FTC Press Release 9/27/02

  • Bank Robbery in Nebraska leaves 4 bank employees and 1 customer dead

    Three gunmen opened fire during an early morning bank robbery leaving 5 dead. Police are searching for the suspects, described as Hispanics wearing dark blue clothing. Additional news stories and reports can be found at: Four employees, one customer killed | Deadly Robbery | Five Killed in Neb. Bank Robbery | Five Killed in Bank Robbery in Nebraska (Reuters) 9/27/02

  • Police Detain 3 Men Who May Be the Robbers

    Coverage from the Norfolk Daily News 9/26/02

  • Federal Register Publishes Final Rule Regarding Information Sharing

    FinCEN is issuing this final rule to encourage information sharing among financial institutions and Federal government law enforcement agencies for the purpose of identifying, preventing, and deterring money laundering and terrorist activity. [This was earlier reported on BOL] 67FR60579 9/26/02

  • FinCEN Issues Final Rule to Implement New Provisions of the BSA

    The final rule would prohibit certain financial institutions from providing correspondent accounts to foreign shell banks. [This was earlier reported on BOL] 67FR60562 9/26/02

  • OTS Says State Housing Creditors Using the Parity Act Must Follow State Prepayment and Late Fee Rules

    The OTS announced that it is removing prepayment and late fee rules from the list of OTS regulations that apply to state housing creditors under the Alternative Mortgage Transaction Parity Act. OTS 02-37 9/26/02

  • Holiday District Announcements

    The Federal Reserve Banks will be closed on Monday, October 14, for the Columbus Day holiday. FR Financial Services 9/26/02

  • OCC Announces District Office Restructuring to Meet Challenges of the Future

    The OCC announced that it is realigning its District Office structure in response to continuing consolidation in the national bank system and to take advantage of advances in technology and changes in the way the OCC manages its nationwide network of examiners and field offices. OCC:NR 2002-77 9/26/02

  • FRB Approval of proposal of Herky Hawk Financial Corporation

    The Federal Reserve Board announced its approval of the application by Herky Hawk Financial Corporation, Monticello, Iowa, to acquire all the voting shares of New Vienna Savings Bank, New Vienna, Iowa; Casey State Bank, Casey, Illinois; and to merge with Biggsville Financial Corporation, and thereby acquire all the voting shares of First State Bank of Biggsville, both in Biggsville, Illinois. FRB Press Release 9/26/02

  • FOMC Leave Interest Rates Unchanged

    The Federal Open Market Committee decided today to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 9/25/02

  • Comptroller Hawke Addresses Independent Bankers Association of Texas

    OCC:NR 2002-76 9/25/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The Federal Deposit Insurance Corporation (FDIC) has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC: FIL-113-2002 9/24/02

  • FDIC Announces First Advisory Committee on Banking Policy Meeting for November 13

    Stressing his desire for transparency in conducting the business of government, FDIC Chairman Don Powell today announced that the FDIC Advisory Committee on Banking Policy will hold its first meeting on November 13. The meeting, which is open to the public, will be held at the FDIC's Washington headquarters. FDIC:PR-98-2002 9/24/02

  • Warning: New Twist to Nigerian Fraud Scheme

    The perpetrators of Advance Fee Fraud schemes are often very creative and innovative. This scheme is commonly known as "4-1-9" fraud, in reference to the section of the Nigerian penal code that addresses this type of activity. Nigerian nationals, purporting to be officials of their government or banking institutions, will fax or mail letters to individuals and businesses in the United States and other countries. Treasury Press Release 9/23/02

  • OCC Updates Guide to Tribal Ownership of a National Bank

    The OCC released an updated A Guide to Tribal Ownership of a National Bank, an agency publication designed to help Native American tribes explore entry into the national banking system by establishing or acquiring control of a national bank. OCC:NR 2002- 74 ,       Tribal Guide 9/20/02

  • Regulators Distribute Call Report for Third Quarter 2002

    Banks should complete your second quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by October 30, 2002. FDIC:FIL-112-2002 9/20/02

  • FinCEN™s Guidance on Determining Whether Tribally Owned and Operated Casinos are Eligible for Exemption From CTR Requirements

    FinCEN receives numerous questions from depository institutions regarding the applicability of exemptions from filing Currency Transaction Reports (CTRs) for tribally owned and operated casinos in accordance with the Bank Secrecy Act. FinCEN Press Release 9/20/02

  • Testimony of Dam Terrorist Financing: A Progress Report on Implementation of the USA PATRIOT Act

    Testimony 9/20/02

  • Barry Kolatch Named Deputy Comptroller For Economic Research and Policy Development

    The OCC announced that Barry Kolatch has been appointed Deputy Comptroller for Economic Research
    and Policy Development. Mr. Kolatch, who will start in his new position on September 23, will be responsible for economic and policy analysis and research on the performance of national banks. OCC:NR 2002- 75 9/20/02

  • Banking Industry Has Weathered The Downturn; Commercial Credit Quality Remains A Concern

    The banking industry has performed well in recent years despite increasing loan delinquencies, notably in commercial credits, according to a report released in the FDIC's Regional Outlook. FDIC Chairman Don Powell stated that "the extent of commercial loan deterioration has not reached the levels experienced in the early 1990s, however, this is a situation that we're continuing to watch closely." FDIC:PR-97-2002 9/20/02

  • Survey of Real Estate Trends

    Semiannual summary of observations on developments in local commercial and residential real estate markets. Survey, FYI 9/20/02

  • FTC and Citigroup Announce $215 Million Settlement

    On September 19, 2002, the FTC announced the settlement of charges involving abusive subprime lending practices brought against the Associates First Capital Corporation and Associates Corporation of North America (The Associates).


    The $215 Million settlement is the largest consumer protection settlement in the history of the FTC. The charges against The Associates involved engaging in systematic and widespread deceptive and abusive lending practices. The Associates were acquired by Citigroup in November 2000. The charges only related to the actions of The Associates prior to the acquisition. The allegations involved violations of the FTC Act through lending practices the induced consumers to refinance existing debts into high interest rate home loans and the purchase of high cost credit insurance.


    Over 2,000,000 consumers were impacted by the action of The Associates and will be receiving a portion of the settlement. In addition to the FTC settlement, a proposed class action lawsuit settlement will provide an additional $25 million to consumers whose mortgages loans were "flipped" by The Associates.


    The FTC indicated that consumers will, within the next few weeks, receive a notice in the mail regarding eligibility and participation in the distribution of the settlement funds. It is estimated that the average payout may be $1,000 per consumer.
    Citigroup Press Release - 9/19/02

    9/19/02

  • Treasury Announces Final Rule Regarding Information Sharing Issued

    FinCEN has issued the final rule under Section 314 of the USA Patriot Act. We have summarized the thirty-nine pages for you and highlighted the important sections in "Sharing Information Under the Patriot Act". Treasury Press Release,    BOL Summary 9/19/02

  • Federal Register Publishes Final Rule on Cancellation Contracts and Debt Suspension Agreements

    As earlier report, the OCC is adding a new part 37 to its regulations that addresses debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). 67FR58962 9/19/02

  • FDIC FIL about OFAC FAQ

    As earlier reported, on September 11, 2002, the Department of the Treasury's Office of Foreign Assets Control (OFAC) published on its Web site a series of frequently asked questions (FAQs) concerning OFAC regulations, policies and procedures, including questions from financial institutions. FDIC:FIL-111-2002 9/19/02

  • OCC Announces New Electronic Interpretations and Actions

    Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 9/19/02

  • Regional Outlook: 3rd Quarter 2002

    Banking industry has performed well in recent years, notably in commercial credits. Regional Outlook 9/19/02

  • New SAR-MSB Form Available

    MSBs that are money transmitters or issuers, sellers or redeemers of money orders or traveler's checks are required to report suspicious activity by filing the SAR-MSB Form. Form suspicious activity by filing the SAR-MSB Form. Form 9/18/02

  • OCC Rule on Debt Cancellation Contracts and Debt Suspension Agreements Provides New Consumer Protections and Safety and Soundness Standards

    The OCC has adopted a new regulation adding consumer protections and establishing safety and soundness standards for debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). OCC: NR 2002- 73 9/18/02

  • OCC Releases CRA Evaluations For 35 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of August 15 through September 14, 2002. OCC:NR 2002-72 9/18/02

  • OCC Announces 10 New Enforcement Actions and 1 Termination

    The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2002- 71 9/18/02

  • FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 33), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-109-2002 9/17/02

  • FDIC Issues Alert on Counterfeit Official Bank Checks

    The FDIC has learned that counterfeit official bank checks drawn on First Hawaiian Bank, Honolulu, Hawaii, are in circulation. FDIC:FIL-108-2002 9/17/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-94 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-109-2002 9/17/02

  • NCUA Introduces 5300 Call Report Short Form as Some Credit Unions Prepare for More Frequent Reporting

    The NCUA has finalized a new 5300 Call Report Short Form to be used by federally insured credit unions (FICUs) with $10 million or less in assets. The Short Form, with only seven pages, will be used by 54 percent of FICUs as they begin reporting on a quarterly basis at the end of the third quarter of 2002 which concludes September 30. Press Release 9/16/02

  • FRB Issues Interim Rule on Reporting and Disclosure Requirements for State Member Banks With Securities

    The Board has modified its regulations implementing section 12(i) of the Securities Exchange Act of 1934 to reflect the amendments made to section 12(i) by the Sarbanes-Oxley Act of 2002. These amendments vest the Board with the authority to administer and enforce several of the enhanced reporting, disclosure and corporate governance obligations imposed by the Sarbanes-Oxley Act with respect to state member banks that have a class of securities registered under the Securities Exchange Act of 1934. 67FR57938 9/16/02

  • Test Drive FedImageSM Services

    Find out how FedImage Services can drive your competitive advantage as you customize your total image management solution. FedImage 9/16/02

  • OCC Publishes Working Paper on "A Cross-Country Analysis of the Bank Supervisory Framework and Bank Performance"

    This OCC Economics Department working paper discusses the policy issues raised by the structure, scope, and independence of bank supervisors. The paper compares how nations across the world address these issues and whether the way a nation addresses these issues affects the profitability of its banks. Paper 9/16/02

  • Quarterly Banking Profile--2nd Quarter 2002

    This report card on industry status and performance includes written analyses, graphs, and statistical tables. Quarterly Banking Profile, FYI 9/13/02

  • OCC Issues Correction to Assessment Fees

    This final rule makes a technical correction to the final rule that the OCC published on November 16, 2001. That provision sets forth the formula for the semiannual assessment the OCC charges each national bank. 67FR57509 9/12/02

  • FDIC List of Minority Depository Institutions

    Minority Depository Institutions often play a unique role in promoting the economic viability of under-served communities. The FDIC has historically taken steps to preserve and encourage minority ownership of insured financial institutions. On April 9, 2002, the FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. Minority Depository Institutions Program 9/12/02

  • Progress in the Financial War on Terrorism

    This issue of FYI summarizes the progress that has been made over the past 12 months in the financial war on terrorism. The FDIC is proud to work closely with the Office of Homeland Security (OHS), the Department of the Treasury, and our fellow state and federal financial regulators to stem the flow of terrorist funds, provide technical assistance to foreign governments, and safeguard the nation's critical banking and finance infrastructure. FYI 9/12/02

  • OFAC Publishes FAQ

    OFAC has published on its website the first installment of answers to questions of general applicability frequently asked by the public. As part of its commitment to regulatory transparency and customer service, the Office is continuing to prepare answers to additional questions that are often asked; additional questions and answers will be posted periodically. FAQ 9/11/02

  • Pricing The Risks of Deposit Insurance

    Papers for a closed September 13 conference cosponsored with the Journal of Financial Services Research. Conference Information 9/11/02

  • FATF calls on all countries to join combat against terrorist financing

    One year after the events of 11th September 2001 in the United States, the Financial Action Task Force (FATF) reaffirms its commitment to be a leader in the international fight against the financing of terrorism. Building on its efforts in the past year, the FATF will continue to take aggressive steps to prevent, detect and ultimately dry up the flow of funds to terrorists. Countering the financing of terrorism is a top priority for the FATF said the new FATF President Jochen Sanio and we are calling upon all countries around the world to join us in this effort. FATF Press Release 9/11/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-107-2002 to notify banks of a recent OFAC change where OFAC has amended its Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-107-2002 9/11/02

  • FDIC-hosted symposium on a new standard for organizations sharing financial data.

    On September 23, an FDIC-sponsored symposium will explore the many ways that Extensible Business Reporting Language (XBRL) can help the financial services industry exchange data. XBRL is a freely licensed standard that uses common terms and definitions. Symposium 9/9/02

  • FDIC Publishes Issue of FYI

    Corporate Earnings Growth Suggests Business Sector Recovery 9/9/02

  • FinCEN Issues Enforcement Action

    Great Eastern Bank of Florida, Miami, Florida 9/9/02

  • FDIC Seeks Comment on Proposed Rule Regarding Insurance for State Banks That Are Chartered as Limited Liability Companies

    As previosuly reported in the Federal Register, the FDIC is requesting public comment on the attached proposed rule clarifying that a state bank that is chartered as a limited liability company (LLC) could be considered eligible for federal deposit insurance. Comments on this proposed rule are due by October 21, 2002. FDIC:FIL-106-2002 9/9/02

  • FDIC Issues September List of Banks Examined for CRA Compliance

    The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in June 2002. FDIC:PR-96-2002 Monthly List of Banks Examined for CRA Compliance
    9/6/02

  • FFIEC Reports that the June 30, 2002 Uniform Bank Performance Report are Online

    FFIEC Press Release 9/6/02

  • OCC Issues Guidance on Investment Portfolio Credit Risks

    The guidance alerts banks to the potentially significant credits risks they incur when safekeeping investment portfolio assets with third parties, such as brokers, broker/dealer firms and banks. OCC 2002-39 9/6/02

  • FDIC Issues Alert on Stolen U.S. Savings Bonds

    The East Windsor Township Police Department, Mercer County, New Jersey, has asked the FDIC to alert all U.S. banks to the theft of $100,000 in U.S. Savings Bonds during a residential burglary in East Windsor Township. It is believed the suspects will attempt to redeem the bonds outside the geographical area where the burglary occurred. FDIC:FIL-105-2002 9/6/02

  • OCC Reports Derivatives Volume Tops $50 Trillion

    Derivatives held by U. S. commercial banks increased $3.8 trillion in the second quarter 2002, to $50.1 trillion, the second highest amount ever recorded, the Office of the Comptroller of the Currency reported today in its quarterly Bank Derivatives Report. OCC:NR 2002- 70 Bank Derivatives Report 9/6/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-104-2002 to notify banks of a recent OFAC change where OFAC has amended its Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC: FIL-104-2002 9/6/02

  • FFIEC Publishes Call Report Validation Criteria

    Updated the Current Validation Criteria: Excel | PDF for the September 2002 Call Reports. 9/5/02

  • Federal Register Publishes Comment Deadline on Draft White Paper on Sound Practices

    The paper discusses the views of the agencies on sound practices based on discussions with industry representatives on how the events surrounding September 11, 2001, have altered business recovery and resumption expectations for purposes of ensuring the resilience of the U.S. financial system and seeks comments on those views. 67FR56835 (text) 9/5/02

  • Accounting Services via FedLine for the Web Demo

    The Accounting Services Demo illustrates the steps a Depository Institution would take to view accounting information services. This service provides real-time access to intra-day account balance; daylight overdraft balance and available funds balance information, as well as information found on your statement of account. Federal Reserve Financial Services 9/4/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-103-2002 to notify banks of a recent OFAC change where OFAC removed names from its Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-103-2002 9/4/02

  • FDIC Issues Special Alert on Counterfeit Cashier's Checks and Altered Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks and altered cashier's checks drawn on Mid City Bank, Inc., Omaha, Nebraska, are in circulation. FDIC:FIL-101-2002 9/4/02

  • FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 32), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-100-2002 9/4/02

  • OCC Issues Fourth Quarter 2002 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 2002. OCC:NR 2002- 69, Schedule 9/4/02

  • OTS Announces 117 CRA Exams Scheduled for 4th Quarter 2002

    The OTS announced that 117 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the fourth quarter of 2002. OTS 02-36 Schedule 9/4/02

  • Fed Information Services via FedLine for the Web

    You can now access FedACH Information Services on the Internet. This latest service addition to FedLine for the Web® makes it possible for you to use the web to track, research and account for your institution's FedACH activity. Press Release 9/4/02

  • FRB Financial Services Publishes New Accounting Documents

    Operating Circular #1 Account Relationships (PDF) | Agreements and Forms (PDF) 9/4/02

  • FinCEN Announces Survey on Costs of Filing Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) and the Use of the Exemption Process

    On August 23, 2002, FinCEN launched a survey of a statistically valid sample of banks, savings and loans and credit unions to gather information on the costs of filing CTRs and SARs, as well as the use of the exemption process for CTR filings. Sampled institutions were notified via email and faxes that highlighted the importance of the survey and their responses to it in helping to improve the effectiveness of Bank Secrecy Act reporting requirements to the benefit of financial institutions, as well as the federal government™s anti-money laundering efforts. FinCEN Press Release 9/3/02

  • FDIC Issues Fourth Quarter CRA Examination Schedule

    The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2002. This list is published pursuant to revised CRA regulations published in May 1995 that require each federal bank and thrift regulator to publish a quarterly CRA examination schedule at least 30 days before the beginning of each quarter. FDIC:PR-93-2002 FDIC Issues Fourth Quarter CRA Examination Schedule, FDIC Regional Offices 9/3/02

  • Regulators Issue Draft White Paper on Sound Practices To Strengthen the Resilience of the U.S. Financial System

    The sound practices identified reflect the preliminary conclusions of the FRB, OCC, SEC, and the New York State Banking Department regarding the factors necessary to strengthen the resilience of critical U.S. financial markets in the face of a wide-scale, regional disaster. FRB Press Release, OCC:NR 2002-68, SEC:2002-130 Draft White Paper

  • FDIC'S Money Smart Financial Education Program to Aid Victims of Predatory Lending In East Palo Alto and Menlo Park

    Victims of abusive predatory lending practices in East Palo Alto and Menlo Park may qualify for mortgage payment relief, thanks to an innovative $5 million anti-predatory lending initiative in which the FDIC Money Smart curriculum serves as the financial education component. FDIC:PR-94-2002 9/3/02/li>

  • FDIC Makes Public July Enforcement Actions; No Administrative Hearings Scheduled

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for September. FDIC:PR-95-2002 9/3/02

  • September 2002 Call Reports

    Posted the Current Validation Criteria: Excel | PDF for the September 2002 Call Reports 9/3/02

07/31/2002

Top Stories for August 2002

  • OCC Issues Revised Advisory on Reverse Stock Split Procedures



  • The OCC is revising the expedited review procedures for national banks to effect reverse stock splits. The
    revision is necessary to reflect the repeal of 12 USC 51, minimum capital requirements. Advisory Letter AL 2000-4,
    dated May 9, 2000, is rescinded. OCC:AL 2002-6 8/30/02

  • OCC Issues Examiner Handbook on Personal Fiduciary Services



  • The handbook addresses a broad range of fiduciary services that banks provide to individuals, their families and their businesses. Banks provide these services as a trustee, investment adviser or in any capacities where the bank possesses investment discretion on behalf of another. Personal Fiduciary Services OCC:NR 2002- 67 8/30/02

  • Banking Industry Reports Record Earnings



  • Commercial banks had record earnings of $23.4 billion in the second quarter, surpassing the previous record set three months earlier by 7.8 percent, the Federal Deposit Insurance Corporation reported today. A basic yardstick of earnings performance-return on assets (ROA)-rose to 1.41 percent, the second highest level recorded. For the first time in two years, average net interest margins-the difference between the average yield on loans and other investments and the average cost of deposits and other liabilities-at smaller banks increased. Despite problems with commercial and industrial (C&I) loans, banks have seen continued strength in consumer lending. FDIC:PR-92-2002 , Preliminary Bank Earnings Report -- Second Quarter 2002, FYI 8/30/02

  • FDIC Consumer News

    How to protect against a high-cost “predatory” home loan, plus tips on other topics. FDIC Consumer News 8/28/02

  • FDIC Publishes Contact List



  • Telephone, mail contacts in the FDIC; links to other governmental financial agencies.
    Contact Page 8/28/02

  • FDIC and the Association of Military Banks of America Join Forces for Worldwide Promotion of Money Smart Curriculum



  • The FDIC announced that the Association of Military Banks of America (AMBA) has joined its Money Smart Alliance Program. The announcement was made by Donna Gambrell, Deputy Director of the FDIC's Division of Supervision and Consumer Protection (DSC), and by Henry W. Neill, Jr., Executive Vice President of AMBA, at a signing ceremony held at the FDIC's headquarters in Washington, D.C.
    FDIC-PR-91-2002 8/28/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on O'Bannon Bank, Buffalo, Missouri, are in circulation. The counterfeit items bear the routing number 081505702 and the account number 780001. FDIC:FIL-99-2002 8/28/02

  • FDIC Issues Warning on Entities That May Be Conducting Banking Operations Without Authorization



  • The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 31), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-98-2002 8/28/02

  • FDIC Issues Alert on Internet Investment Scheme



  • The Canada Deposit Insurance Corporation (CDIC) has issued a news release advising North American investors and depositors of an apparent Internet fraud scheme falsely involving CDIC. FDIC:FIL-97-2002 8/28/02

  • FDIC Issues Alert on Possible Attempted Fraud By Convicted Fugitive



  • The U.S. Marshals Service has again asked the FDIC to alert all U.S. banks about the activities of fugitive John Ruffo, who was convicted in 1998 for his role in defrauding several banks of over $350 million and may now be attempting other fraud schemes. He has used his real name, John Ruffo, in various schemes, but he may also attempt to use an alias. He is believed to have access to large sums of money and may have U. S. bank accounts. FDIC:FIL-96-2002 8/28/02

  • FDIC Issues Alert on Unauthorized Sale of Samoan Banking Licenses



  • The OCC has advised that the Office of the Registrar of International and Foreign Companies, Samoa, has issued a press release announcing that Witherspoon, Seymour & Robinson Incorporated (WSR II C.) is promoting "pre-approved banking licenses" purportedly issued by Samoa. This entity is not a licensed trustee company in Samoa, and only such companies are permitted to submit license applications. FDIC:FIL-95-2002 8/28/02

  • FDIC FIL about OFAC Change



  • The FDIC has published FIL-94 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-94-2002 8/28/02

  • FDIC Issues Alert on Fictitious Official Checks and Certified Checks



  • The FDIC has learned that fictitious official checks and certified checks are being widely circulated. The checks bear the name Americrest Bank & Trust. Some show the address as Post Office Box 23202, Van Nuys, CA, while others show the address as P. O. Box 2012, Van Nuys, CA 91411. All show the telephone number 818-779-7778. There is no bank in California named Americrest Bank & Trust.
    FDIC:FIL-93-2002 8/28/02

  • Thrift Industry Turns in Another Strong Quarter



  • The OTS reported earnings for the nation’s thrift industry of $2.86 billion in the second quarter of 2002, up 14 percent over the year-ago second quarter. The results were down six percent from the record high in the first quarter of 2002. OTS 02-35 8/27/02

  • OECD Issues Guidelines for the Security of Information Systems and Networks: Towards a Culture of Security



  • The Organization for Economic Cooperation and Development formally has released its Guidelines for the Security of Information Systems and Networks. The Guidelines consist of nine principles that aim to increase public awareness, education, information sharing, and training that can lead to a better understanding of online security and the adoption of best practices. "A Culture of Security" represents a new way of thinking -- one in which everyone using computers and networks like the Internet has a role to play. Press Release 8/26/02

  • FRB releases Discount Rate Meetings Minutes



  • The Federal Reserve Board released the minutes of its discount rate meetings from May 20 to June 24, 2002. FRB Press Release 8/26/02

  • FDIC Issues FIL on Proposed Rule on Customer Identification Program



  • As earlier reported, the regulators issued jointly proposed a rule that would add a new section to the Bank Secrecy Act regulations. The proposed Section 103.121, Customer Identification Programs for Banks, Savings Associations, and Credit Unions, requires that financial institutions implement a written, risk-based customer identification program, maintain information used to verify identities and compare the names of new customers against government lists of known or suspected terrorists or terrorist organizations. The proposed rule will apply to customers seeking to open new accounts. FDIC:FIL-92-2002 8/23/02

  • FinCEN Issues SAR Activity Review



  • This issue of The Review contains information related to potential terrorist financing activity as well as an analysis of SAR filings since September 11, 2001 that referred to terrorism. FinCEN News Release, SAR Activity Review 8/23/02

  • OFAC Makes Comment Letters Public



  • OFAC has published on its Web site copies of comment letters and emails it received in response to its proposal to make civil penalty actions public. The actual regulation on making civil penalty actions public has still not been finalized by OFAC. OFAC 8/22/02

  • OCC Issues Bulletin on Enforcement Action Policy



  • This bulletin makes public Policies & Procedures Manual, dated July 30, 2001, which describes the OCC's policy for taking appropriate enforcement action in response to violations of law, rules, regulations, final agency orders and/or unsafe and
    unsound practices or conditions (Enforcement Action Policy). OCC 2002-38 8/22/02

  • FFIEC Adds September Forms



  • The FFIEC added the September 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 8/22/02

  • OCC Announces New Electronic Interpretations and Actions



  • Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 8/22/02

  • FRB Issues Statement on Payments System Risk Policy



  • The FRB announced that it will not, over the near term, incorporate two policy options into its longer-term Payments System Risk (PSR) policy plan. The FRB will, however, continue to analyze the benefits and potential drawbacks of a two-tiered pricing regime for daylight overdrafts. FRB Press Release 8/21/02

  • OCC Issues Alert on Internet Banking Fraud Scam



  • The Canada Deposit Insurance Corporation (CDIC) has advised North American investors and depositors of an apparent Internet fraud scam falsely involving CDIC. A person or group of persons carrying on business as the Maryland Investments Club is offering investment certificates called "digital investment certificates" for sale over the Internet. OCC:ALERT 2002-10 8/21/02

  • OCC Releases CRA Evaluations For 26 National Banks



  • The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of July 15 through August 14, 2002. OCC:NR 2002-66 Evaluations 8/21/02

  • FRB Publishes List of Foreign Margin Stocks



  • The List of Foreign Margin Stocks is composed of certain foreign equity securities that qualify as margin securities under Regulation T. The Foreign List is published twice a year by the Board. 67FR53875 (text) 67FR53875 (pdf) 8/20/02

  • OCC Announces 10 New Enforcement Actions and 3 Terminations



  • The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002-65 8/20/02

  • FDIC Issues Alert on Counterfeit Official Checks and Money Orders



  • The FDIC has learned that counterfeit official checks drawn on United California Bank, Los Angeles, California, and counterfeit bank money orders drawn on Warren Five Cents Savings Bank (Warren Bank), Peabody, Massachusetts, are in circulation. FDIC:FIL-91-2002 8/19/02

  • FDIC Issues Alert on Missing Money Orders



  • The FDIC has been informed by Peoples State Bank, Many, Louisiana, that 1,200 of the bank's money orders have been stolen while in transit from the printer to the bank. FDIC:FIL-90-2002
    8/19/02

  • Governor Gramlich to begin treatment for leukemia



  • Federal Reserve Board member Edward M. Gramlich will begin treatment Monday for chronic lymphocytic leukemia (CLL) – a form of leukemia that can be treated successfully. Governor Gramlich will be treated with chemotherapy on an out-patient basis at Georgetown University Medical Center. FRB Press Release 8/19/02

  • OCC Publishes Final Rule of Section 312 of the USA PATRIOT Act



  • As earlier reported in the Federal Register, the interim final rule provides guidance to banks on how to implement section 312, which became effective July 23. OCC 2002-37 8/19/02

  • Ten Largest Thrift Companies



  • The Ten Largest Thrift Companies highlights the performance of the largest thrift companies in the most recently completed quarter. The report is based on earning announcements and other publicly available information and generally is published within 45 days of the completion of a calendar quarter. Ten Largest Thrift Companies, FYI 8/16/02

  • OCC Issues Bulletin on Previously Announced Changes to HMDA



  • The bulletin announces revisions to reporting requirements in Regulation C. Most of the changes become effective January 1, 2004, for data required to be reported by March 1, 2005. However, two changes become effective January 1, 2003, for data required to be reported by March 1, 2004. OCC 2002-36 8/16/02

  • Holiday District Announcement



  • The Federal Reserve Banks will be closed on Monday, September 2, for the Labor Day holiday. Please refer to the instructions listed for information on your local office. Announcement 8/16/02

  • Revisions to Federal Reserve Study Suggest Check Use Peaked in the Mid-1990s



  • An analysis published in the August edition of the Federal Reserve Bulletin compared the
    revised annual check volume in 2000, 42.5 billion, to estimates from two earlier Federal Reserve
    studies that 49.5 billion checks were paid in 1995 and 32.8 billion in 1979. The analysis
    suggested that check use may have peaked during the mid-1990s, though the exact year of the
    peak is unknown. Press Release
    8/15/02

  • Fed Keeps Fed Funds Unchanged



  • The FOMC decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release
    8/13/02

  • FDIC Publishes Historical Statistics on Banking



  • The Historical Statistics on Banking (HSOB) provides annual statistical information on the banking industry beginning in 1934. These data can be used to identify and analyze long-term trends and to develop benchmarks to evaluate the current condition of the banking and thrift industries. HSOB 8/13/02

  • OCC Publishes Final Rule on Capital Equivalency Deposits



  • As earlier reported in the Federal Register, the OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies. OCC 2002-35 67FR41619 8/13/02

  • FDIC Issues Alert on Counterfeit Official Bank Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. The items appear to be widely circulated. FDIC:FIL-89-2002 8/13/02

  • FDIC Distributes FinCEN Advisory



  • In a continuing effort to assist banks in Bank Secrecy Act compliance, anti-money laundering efforts, and prevention and detection of other financial crimes, the Federal Deposit Insurance Corporation (FDIC) forwards to FDIC-supervised banks each issue of FinCEN Advisory. FDIC: FIL-88-2002 8/13/02

  • FDIC Issues Alert for Entities That May Be Conducting Banking Operations Without Authorization



  • The Central Bank of Belize has issued a warning about entities that are not licensed to provide banking and/or financial business in Belize. Any proposed transactions involving Trinity Savings Bank and Goldman & Stein should be viewed with extreme caution. FDIC:FIL-87-2002 8/13/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on Founders Bank, Chesterfield, Missouri, are in circulation.
    FDIC:FIL-86-2002 8/13/02

  • OCC Issues Alert on Unauthorized Sale of Samoan Banking Licenses



  • This issuance informs banks and financial regulators that Witherspoon, Seymour, and Robinson, Incorporated is promoting "pre-approved banking licenses" purportedly issued by the territory of Samoa. This company is not a licensed trustee company in Samoa. OCC:ALERT 2002-9 8/12/02

  • Group on OFAC List Loses Challenge

    The Holy Land Foundation has lost its lawsuit challenging an Executive Order which designated it a terrorist organization subject to OFAC sanctions. In a ruling issued 8/8, U.S. District Judge Kessler held that orders blocking assets "are an important component of U.S. foreign policy, and the president's choice of this tool to combat terrorism is entitled to particular deference." Kessler turned down the injunction sought by the foundation, and rejected arguments that the blocking order violates due process, free speech rights, and the foundation's religious freedom. US Courts
    8/9/02

  • Regulators Extend Comment Period On Draft Credit Card Guidance

    The federal financial institution regulatory agencies announced Thursday
    that they are extending the deadline, to September 23, for comment on
    their draft guidance on account management and loss allowances for credit
    card lending. OCC NR 2002-64,
    OTS 02-34 , FDIC PR-90-2002, FFIEC Press Release , FFIEC Press Release
    8/9/02

  • False Privacy Claims Lead to Settlement

    When a company makes claims about the steps it takes to protect the privacy of customer data, they'd better be true. Microsoft learned that lesson the hard way and, as a result, has settled charges with the FTC regarding the privacy and security of personal information collected from consumers through Microsoft's "Passport" web services. FTC Announcement 8/9/02

  • OTS Changes Mutual-to-Stock Conversion Rules

    The Office of Thrift Supervision is publishing a final rule implementing changes to its mutual-to-stock conversion and mutual holding company regulations. OTS Announcement

    Conversion Application 8/9/02

  • FDIC's FYI Report on 25 Largest Banking Companies

    According to the FDIC, second quarter Net Income dipped slightly and asset quality worsened for the 25 largest banking companies. FDIC FYI ,
    Quarterly Study of the 25 Largest
    8/9/02

  • SEC Proposes Regulation Analyst Certification



  • The proposed regulation would require
    that any research report disseminated by broker or dealer include
    certifications by the research analyst that the views expressed in the
    research report accurately reflect the analyst's personal views, and
    whether the analyst received compensation or other payments in
    connection with his or her specific recommendations or views.
    67FR51510 8/7/02

  • FDIC Issues Special Alert Regarding Fictitious Cashier's Checks In Circulation



  • The Federal Deposit Insurance Corporation (FDIC) has learned that fictitious cashier's checks are in circulation. The checks bear the name Audi Bank N. A., 19 East 54th Street, New York, New York 10022. Audi Bank N. A. does not exist. However, Bank Audi (USA), a legitimate bank, is located at that address. The routing number used on the checks, 021200957, is assigned to the Commerce Bank/North, Ramsey, New Jersey. The account number, 03771407, does not appear to be a valid number.
    FDIC: FIL-85-2002 8/7/02

  • FDIC Reports Second Quarter Results for Bank and Thrift Insurance Funds



  • The Federal Deposit Insurance Corporation (FDIC) reported that the Bank Insurance Fund's (BIF) reserve ratio fell 1.26 percent from December 31, 2001 to March 31, 2002. The Savings Association Insurance Fund (SAIF) increased to $388 million compared to $33 million for the same period last year. The increase in comprehensive income was due to the fluctuation in the loss reserves for anticipated failures of insured institutions during the first half of 2002 compared to last year. Seven BIF-insured banks failed during the first six months of 2002 with total assets at failure of $2.4 billion. One SAIF-insured thrift failed during the same period with total assets at failure of $50 million.
    FDIC Press Release 8/7/02

  • SEC Issues Supplemental Information on Accelerated Deadline for Insider Transaction Reports



  • The SEC has issued supplemental information about the provision of the Sarbanes-Oxley Act that amends Section 16(a) of the Securities Exchange Act of 1934 to accelerate the due date for officers,' directors' and principal security holders' reports of transactions. The amendment becomes effective Aug. 29, 2002.
    SEC Press Release 8/6/02

  • FBIIC Issues Interim Policy on GETS Card Program



  • The Financial and Banking Information Infrastructure Committee (FBIIC) issued the an interim policy on the sponsorship of private sector entities in the Government Emergency Telecommunications Service (GETS) Card Program. The interim policy states the circumstances under which qualifying private sector financial institutions may request federal sponsorship in the program.
    FDIC: FIL-84-2002 8/6/02

  • OCC Appoints New Deputy Comptroller for Risk Evaluation



  • The Office of the Comptroller of the Currency has appointed
    Kathryn E. Dick as the new Deputy Comptroller for Risk Evaluation.
    Ms. Dick will serve as the Comptroller's principal advisor on systemic risks facing
    the national banking system and will chair the OCC's National Risk Committee, which
    coordinates the agency's risk identification practices.
    NR 2002-63 8/6/02

  • FDIC Issues August List of Banks Examined for CRA Compliance



  • The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in May 2002. FDIC Press Release 8/5/02

  • Settlement Agent Inquiry Feature via FedLine for the Web



  • Settlement agents for Federal Reserve banks can now gain access to the National Settlement Service via the Web. Agents will be able to directly monitor their own settlement activity as well as view settlement arrangement profiles for the arrangements for with they act as agent. There will be no change to the process for submitting settlement files. FRB Financial Services Announcement 8/5/02

  • Company that Pitched "Advance-fee" Loans Will Pay $3 Million in Redress as Part of Federal/state Settlement



  • American Savings Discount Club (ASDC) and two individual defendants will establish a redress fund of nearly $3 million, will be subject to a lifetime ban on credit-related telemarketing, and will face a lifetime telemarketing bond of $500,000. FTC Press Release 8/2/02

  • FFIEC Announces the Availability of Data on Mortgage Lending



  • The FFIEC announced the availability of data for the year 2001 regarding mortgage lending transactions at 7,631 financial institutions covered by the Home Mortgage Disclosure Act (HMDA) in metropolitan areas throughout the nation. FFIEC Press Release 8/2/02

  • FFIEC Announces the Availability of Data on Small Business



  • The 2001 CRA data reflect originations and purchases of small business, small farm, and community development loans from 1,912 institutions, including 1,443 commercial banks and 469 savings associations. FFIEC Press Release 8/2/02

  • FDIC Issues Special Alert/Counterfeit Official Bank Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on three separate financial institutions are in circulation. The items appear to be circulating nationwide. FDIC:FIL-83-2002 8/2/02

  • Approval of proposal of Bank of Orange County



  • The Federal Reserve Board announced its approval of the applications by Bank of Orange County, Fountain Valley, California, to merge with Cerritos Valley Bank, Artesia, California, and establish branches at the former locations of Cerritos. FRB Press Release 8/1/02

  • FDIC Publishes Notice of Agency Meeting



  • The meeting will be held in the Board Room on the sixth floor of the FDIC Building located at 550 - 17th Street, N.W., Washington, D. C. on August 6, 2002. Notice 8/1/02

  • TO ACCESS PRIOR TOP STORIES

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07/14/2002

Curry and Gruenberg on Dodd-Frank

Comptroller Curry presented a statement and written testimony and Chairman Gruenberg provided a statement before the U.S. Senate Committee on Banking, Housing and Urban Affairs. Messrs Curry and Gruenberg discussed what their respective agencies are doing to improve the security of consumer financial information held by the institutions they supervise, to implement provisions of the Dodd-Frank Act.

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