Skip to content

How to gain more from operational risk management practices. Modern risk management technology solutions improve efficiency and provide greater visibility into risks. Today’s tools provide real-time visibility, action plans, enhanced reporting and business intelligence, and proactive notifications for operational risk. Real-time data empowers banks and financial services organizations to proactively manage risks and instantly detect and mitigate emerging issues. Click here to learn more.


Top Stories

01/21/2020

OCC enforcement actions announced

The OCC has released new enforcement actions against its supervised institutions and individuals currently or formerly associates with its supervised institutions.

Formal Agreements were made with United Trust Bank, Palos Heights, Illinois, and Texas Citizens Bank, National Association, Pasadena, Texas.

A Decision on Entry of Default and Order of Prohibition was issued to Walter F. Mills, former personal banking representative at Santander Bank, N.A., Wilmington, Delaware. The OCC found that, between March 2012 and February 2014, Mills made or directed at least 17 withdrawals totaling $46,027 on the bank's customers' accounts that were neither requested nor authorized by the customers, and deposited or attempted to deposit the proceeds of the withdrawals in his personal account at another bank.

01/17/2020

Money Smart modules updated

The Federal Deposit Insurance Corporation and U.S. Small Business Administration (SBA) have released two updates to the popular Money Smart for Small Business curriculum. The updated modules focus on banking and credit, and are now available for banks and small business development organizations to use to help small business owners succeed.

The updated version of Money Smart for Small Business is a valuable resource that the FDIC and the SBA have produced to help ensure entrepreneurs are fully equipped to compete in and contribute to the nation's economy," said Allen Gutierrez, Associate Administrator for the SBA's Office of Entrepreneurial Development.

The updated Banking Services module now includes a discussion of traditional banking products, non-bank financing options and sources, and how to avoid fraud and scams. Similarly, the updated Building Strong Credit module explains how a business owner's personal credit history can impact their business, how business credit reporting works, and how a potential lender evaluates the overall creditworthiness of a small business.

A case study brings both modules together and asks participants to put from industry experts and other practitioners, including more than two dozen organizations that have used previous versions of the Money Smart materials.

01/17/2020

Heightened cybersecurity risk considerations

In response to the heightened cybersecurity risk facing the financial services industry and other critical business sectors, the FDIC and the OCC have issued an interagency statement on heightened cybersecurity risk. The statement focuses on risk management principles that can reduce the risk of a cyber-attack and minimize business disruptions. FIL-3-2020 has also been issued by the FDIC.

The Department of Homeland Security has indicated there is heightened risk of cyber-attack against U.S. targets because of increased geopolitical tension. The current environment provides an opportunity for banks to re-evaluate the adequacy of safeguards to protect against various types of cybersecurity risk. The Heightened Cybersecurity Risk document highlights principles previously articulated by the FDIC and other banking regulators including: business resilience, authentication, system configuration, security tool, data protection, and employee training. Banks can apply cybersecurity risk management principles and risk mitigation techniques to reduce the risk of a cyber attack's success and minimize the negative impacts of a disruptive and destructive cyber attack

01/17/2020

Fed updates BHCPR user guide

The Federal Reserve Board has posted an update of its User's Guide for the Bank Holding Company Performance Report. which provides definitions of the financial ratios and items presented on each page of the report.

01/17/2020

U.S. issuing new 20-year bond

The U.S. Department of the Treasury has announced it plans to issue a 20-year nominal coupon bond in the first half of calendar year 2020. Treasury believes that there will be strong demand from investors for a 20-year bond, which will increase Treasury’s financing capacity over the long term. Additional information regarding the launch of the 20-year bond will be provided in Treasury’s quarterly refunding statement on Wednesday, February 5, 2020.

01/17/2020

November 2019 TIC data

Treasury has released Treasury International Capital (TIC) data for November 2019. The sum total in November of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC inflow of $73.1 billion. Of this, net foreign private inflows were $105.7 billion, and net foreign official outflows were $32.5 billion. Foreign residents increased their holdings of long-term U.S. securities in November; net purchases were $7.3 billion. Net purchases by private foreign investors were $16.0 billion, while net sales by foreign official institutions were $8.7 billion. U.S. residents decreased their holdings of long-term foreign securities, with net sales of $15.6 billion.

01/17/2020

Disaster relief funds for Puerto Rico

HUD has announced an additional $8.2 billion available for Puerto Rico disaster recovery. Secretary Ben Carson said that HUD will soon publish a Federal Register notice to provide Puerto Rico with the guidelines for establishing its plan to use these long-term mitigation funds appropriated by Congress.

01/16/2020

January 2020 Beige Book

The Federal Reserve Board has posted the January 15, 2020, Beige Book, which was prepared at the Federal Reserve Bank of New York based on information collected on or before January 6, 2020. This document summarizes comments received from contacts outside the Federal Reserve System and is not a commentary on the views of Federal Reserve officials. The Beige Book discusses overall economic activity, employment and wages, prices, and highlights by Federal Reserve District.

01/16/2020

FHFA announces Giancarlo as chairman of CSS

The Federal Housing Finance Agency has announced that J. Christopher “Chris" Giancarlo, former Chairman of the U.S. Commodity Futures Trading Commission, will serve as independent, non-executive chairman of the board of directors of Common Securitization Solutions LLC (CSS) and that CSS will amend the structure of its board of directors. This amended structure provides Anthony Renzi, appointed in December 2019 as CSS CEO, a seat on the board and also allows the FHFA to appoint up to three additional independent directors. Fannie Mae and Freddie Mac (the Enterprises) will each retain their two current board seats. There will be up to nine board members in total. CSS, a joint venture between the Enterprises, built and runs the technology platform that supports the Uniform Mortgage-Backed Security (UMBS). Both Enterprises began using the CSS Common Securitization Platform in June of 2019.

01/15/2020

Fed posts Tailoring Rules FAQs

The Board of Governors of the Federal Reserve System has issued FAQs in response to questions from institutions regarding the final rules to tailor certain prudential standards for large domestic and foreign banking organizations to more closely match their risk profiles (tailoring rules). The guidance applies to bank holding companies, savings and loan holding companies, and U.S. intermediate holding companies with $100 billion or more in total consolidated assets as well as to certain depository institutions.

01/15/2020

$2.2B in HUD grants for homeless programs

HUD Secretary Ben Carson announced yesterday nearly $2.2 billion in grants to support thousands of local homeless assistance programs across the nation. HUD's Continuum of Care grants will provide critically needed support to 6,593 local programs on the front lines, serving individuals and families experiencing homelessness.

01/15/2020

Call Report information

FIL-1-2020, issued Monday on behalf of the FDIC, OCC and Federal Reserve Board, provides instructions and guidance on filing Call Reports for the Fourth Quarter of 2019. Except for institutions with more than one foreign office, completed Call Reports must be received by Thursday. January 30, 2020.

The FIL explains which institutions may take advantage of the new FFIEC 051 Call Report format and indicates where Call Report forms may be found for downloading and printing.

01/15/2020

OFAC sanctions entities for facilitating exportation of workers from North Korea

OFAC has announced two North Korea-related designations focusing on the Government of North Korea’s continued supply of illicit labor to overseas markets. Tuesday's action targets a North Korean trading corporation and a China-based North Korean lodging facility that facilitate North Korea’s practice of sending laborers abroad. Identification information for Korea Namgang Trading Corporation and Beijing Sukbakso can be found in BankersOnline's OFAC Update.

01/15/2020

Fed announces members of CDIAC

The Federal Reserve Board has announced the members of its Community Depository Institutions Advisory Council (CDIAC) and the president of the council for 2020. The CDIAC advises the Board on the economy, lending conditions, and other issues of interest to community depository institutions. Members are selected from representatives of commercial banks, thrift institutions, and credit unions serving on local advisory councils at the 12 Federal Reserve Banks. One member of each of the Reserve Bank councils serves on the CDIAC, which meets twice a year with the Federal Reserve Board in Washington.

01/14/2020

Venezuelan officials targeted in OFAC action

On Monday, Treasury announced that OFAC had designated seven Venezuelan government officials who, on behalf of former Venezuelan President Nicolás Maduro, led a failed attempt to illegitimately seize control of the National Assembly and block interim President Juan Guaidó and other deputies from participating in a constitutionally required election of National Assembly leadership. The following individuals have been designated as current or former officials of the Government of Venezuela for their actions undermining democracy: Luis Eduardo Parra Rivero; Jose Gregorio Noriega Figueroa; Franklyn Leonardo Duarte; Jose Dionisio Brito Rodriguez; Conrado Antonio Perez Linares; Adolfo Ramon Superlano; and Negal Manuel Morales Llovera.

For identifying information, see BankersOnline's OFAC Update.

01/14/2020

Former FinCEN staffer pleads guilty to conspiring to disclose SARs

The U.S. Attorney's Office for the Southern District of New York announced yesterday that Natalie Mayflower Sours Edwards, a//k/a "Natalie Sours," "Natalie May Edwards," or "Natalie Edwards," a former senior adviser at the Treasury Department’s Financial Crimes Enforcement Network (“FinCEN”), pled guilty yesterday to conspiring to unlawfully disclose SARs.

Beginning in approximately October 2017, and lasting until her arrest in October 2018, Edwards unlawfully disclosed numerous SARs to a reporter, the substance of which were published over the course of approximately 12 articles by a news organization for which the reporter worked. The illegally disclosed SARs pertained to, among other things, Paul Manafort, Richard Gates, the Russian Embassy, Mariia Butina, and Prevezon Alexander. Edwards had access to each of the pertinent SARs and saved them – along with thousands of other files containing sensitive government information – to a flash drive provided to her by FinCEN. In addition to disseminating SARs to the reporter, Edwards sent or described to the reporter internal FinCEN emails or correspondence appearing to relate to SARs or other information protected by the BSA, and FinCEN nonpublic memoranda, including investigative memos and intelligence assessments published by the FinCEN Intelligence Division, which contained confidential personal information, business information, and/or security threat assessments.

Edwards pled guilty to one count of conspiracy to unlawfully disclose SARs, which carries a maximum sentence of five years in prison.

01/14/2020

Federal Reserve Section 19 prohibition letters

The Federal Reserve Board has posted three Section 19 letters that prohibit the recipients from becoming or continuing as an institution-affiliated party of a financial institution during the fourth quarter of 2019. The letters, which notified individuals who have entered into a pretrial diversion or similar program in connection with the resolution of a criminal complaint that charged them with a crime involving dishonesty or breach of trust, were issued to former institution-affiliated parties of:

01/14/2020

CFPB Advisory Committees applications

The Bureau has announced that it is accepting applications for membership on all four of its advisory committees. Applications are invited from individuals who can provide insight and advice to carry out its work. The CFPB also posted a Federal Register notice [85 FR 1806] with the announcement.

The Bureau has an application page with instructions. Applications will be accepted through February 27, 2020.

01/14/2020

FDIC and Fed publish CMP inflation adjustments

The FDIC has published a Federal Register notice [85 FR 2132, January 14, 2020] providing notice of its maximum civil money penalties as adjusted for inflation. The adjusted maximum amounts of civil money penalties in the notice are applicable to penalties assessed after January 15, 2020, for conduct occurring on or after November 2, 2015.

The Federal Reserve Board also published its notice [85 FR 2007] of inflation adjustments for civil money penalties under its jurisdiction today.

01/14/2020

HOME program online training available

HUD has announced the launch of its new Building HOME online training series for its HOME Investment Partnerships (HOME) Program, an interactive, self-paced online training which guides grantees through 12 modules, providing a foundation of the regulatory requirements of the program and practical advice for implementing all HOME activities at the state and local levels. The training presents real-world scenarios and includes challenge questions and exams. The launch includes 8 of the 12 training modules. Four additional modules will be launched in the next few months to complete the Building HOME online training series.

The HOME program provides formula grants to states and localities that communities use in partnership with local nonprofit groups to fund a wide range of affordable housing activities. This includes building, buying, or rehabilitating affordable housing for rent or homeownership. HOME also provides direct rental assistance to low-income people. It’s the largest federal block grant to state and local governments designed exclusively to create affordable housing for low-income households.

01/13/2020

Reserve Banks' 2020 leadership announced

The Federal Reserve Board on Friday announced the Chairs and Deputy Chairs of the 12 Federal Reserve Banks for 2020. Each Reserve Bank has a nine-member board of directors. The Board of Governors in Washington appoints three of these directors and each year designates one of its appointees as Chair and a second as Deputy Chair.

  • Boston - Phillip L. Clay, professor emeritus of city planning, Massachusetts Institute of Technology, Cambridge, Massachusetts, renamed Chair. Christina Hull Paxson, president, Brown University, Providence, Rhode Island, renamed Deputy Chair.
  • New York - Denise Scott, executive vice president, Local Initiatives Support Corporation, New York, New York, renamed Chair. Rosa M. Gil, founder, president, and chief executive officer, Comunilife, Inc., New York, New York, renamed Deputy Chair.
  • Philadelphia - Phoebe Haddon, chancellor, Rutgers University - Camden, Camden, New Jersey, named Chair. Madeline Bell, president and chief executive officer, The Children's Hospital of Philadelphia, Philadelphia, Pennsylvania, named Deputy Chair.
  • Cleveland - Dawne S. Hickton, president and chief operating officer, Jacobs Aerospace, Technology, and Nuclear, Pittsburgh, Pennsylvania, renamed Chair. Dwight E. Smith, president and chief executive officer, Sophisticated Systems, Inc., Columbus, Ohio, renamed Deputy Chair.
  • Richmond - Kathy J. Warden, chairman, president, and chief executive officer, Northrop Grumman Corporation, Falls Church, Virginia, renamed Chair. Eugene A. Woods, president and chief executive officer, Atrium Health, Charlotte, North Carolina, named Deputy Chair.
  • Atlanta - Myron A. Gray, president, U.S. operations (retired), United Parcel Service, Inc., Atlanta, Georgia, renamed Chair. Elizabeth A. Smith, executive chair, Bloomin' Brands, Inc., Tampa, Florida, renamed Deputy Chair.
  • Chicago - E. Scott Santi, chairman and chief executive officer, Illinois Tool Works Inc., Glenview, Illinois, named Chair. Wright L. Lassiter, III, president and chief executive officer, Henry Ford Health System, Detroit, Michigan, named Deputy Chair.
  • St. Louis - Suzanne Sitherwood, president and chief executive officer, Spire Inc., St. Louis, Missouri, named Chair. James M. McKelvey, Jr., founder and chief executive officer, Invisibly, Inc., St. Louis, Missouri, named Deputy Chair.
  • Minneapolis - Srilata Zaheer, dean, Carlson School of Management, University of Minnesota, Minneapolis, Minnesota, named Chair. Harry D. Melander, president, Minnesota Building and Construction Trades Council, St. Paul, Minnesota, renamed Deputy Chair.
  • Kansas City - Jim Farrell, president, Farrell Growth Group LLC, Omaha, Nebraska, named Chair. Edmond Johnson, president and owner, Premier Manufacturing, Inc., Frederick, Colorado, named Deputy Chair.
  • Dallas - Greg L. Armstrong, chairman and chief executive officer (retired), Plains All American Pipeline L.P., Houston, Texas, renamed Chair. Thomas J. Falk, chairman and chief executive officer (retired), Kimberly-Clark Corporation, Dallas, Texas, named Deputy Chair.
  • San Francisco - Barry M. Meyer, chairman and chief executive officer (retired), Warner Bros. Entertainment, Inc., and chairman and founder, North Ten Mile Associates, Los Angeles, California, renamed Chair. Rosemary Turner, president north California district (retired), United Parcel Service, Inc., Oakland, California, renamed Deputy Chair.

01/13/2020

CFPB issues no-action letter to Bank of America

The Consumer Financial Protection Bureau (Bureau) has issued a no-action letter to Bank of America, N.A. regarding the bank’s funding arrangements with housing counseling agencies certified by the U.S. Department of Housing and Urban Development.

01/13/2020

FATF forum on supervision of virtual assets

On January 9, the Financial Action Task Force held a supervisor’s forum in Paris, France, to discuss how to supervise and regulate virtual assets and virtual asset service providers (VASPs). This meeting was the first opportunity for supervisors to discuss how to implement these new measures since the FATF finalized them in June 2019. Supervisors play an important role in ensuring that regulated entities, such as banks and financial institutions, implement the FATF’s standards to detect and prevent money laundering and terrorist financing. The FATF Supervisors’ Forum is an initiative of the Chinese Presidency of FATF to promote more effective supervision by national authorities.

01/13/2020

NCUA assistance for Puerto Rico CUs

The NCUA has announced that, in the wake of the recent earthquakes in Puerto Rico, it will be ready to assist the seven federally insured credit unions on the island with maintaining or restoring operations, if necessary. The NCUA’s Office of Credit Union Resources and Expansion can provide urgent needs grants up to $7,500 to low-income credit unions that experience sudden costs to restore operations interrupted by the storm.

01/13/2020

Reserve Banks paid $54.9 billion to Treasury in 2019

The Board of Governors of the Federal Reserve System has announced preliminary 2019 results indicating that the Reserve Banks provided for payments of approximately $54.9 billion to the U.S. Treasury. The 2019 audited Reserve Bank financial statements are expected to be published in March and may include adjustments to these preliminary unaudited results.

01/13/2020

Iranian regime senior officials, companies, and vessel designated

The Treasury Department has announced that OFAC took action on Friday against eight senior Iranian regime officials who have advanced the regime’s destabilizing objectives, as well as the largest steel, aluminum, copper, and iron manufacturers in Iran, who collectively generate billions of dollars annually. The action includes the designations of Ali Shamkhani, the Secretary of Iran’s Supreme National Security Council; Mohammad Reza Ashtiani, the Deputy Chief of Staff of Iranian armed forces; and Gholamreza Soleimani, the head of the Basij militia of the Islamic Revolutionary Guards Corps (IRGC). In addition, Treasury designated 17 Iranian metals producers and mining companies; a network of three China- and Seychelles-based entities; and a vessel involved in the purchase, sale, and transfer of Iranian metals products, as well as in the provision of critical metals production components to Iranian metal producers.

These actions took place in conjunction with the president's signing of a new Executive Order that targets additional sources of revenue used by the Iranian regime to fund and support its nuclear program, missile development, terrorism and terrorist proxy networks, and malign regional influence. Specifically, this E.O. authorizes the Secretary of the Treasury, in consultation with the Secretary of State, to impose sanctions against persons operating in or transacting with additional sectors of the Iranian economy, including construction, mining, manufacturing, and textiles.

For identification information on the individuals, entities and vessel designated on Friday, see BankersOnline's OFAC Update.

01/13/2020

Unemployment remains low - labor market tight

New data from the Bureau of Labor Statistics’ (BLS) monthly Employment Situation Report indicates the labor force remains tight, wages are rising, and people are coming off the sidelines to find work, The unemployment rate remained at 3.5 percent, matching the lowest rate since May 1969; nonfarm job gains were 145,000, bringing 2019’s total to 2.1 million; the U-4, U-5, and U-6 alternative measures of labor underutilization were all at series lows; and the employment-population ratio for prime-age women increased 0.3 percentage points to 74.4 percent, which is 3.1 percentage points above the November 2016 rate.

01/13/2020

Fair lending and internet marketing

The Federal Reserve System has published its third 2019 issue of Consumer Compliance Outlook, which features an article on the fair lending implications of targeted internet marketing.

01/10/2020

FHFA Q3 foreclosure prevention and refinance report

The Federal Housing Finance Agency (FHFA) yesterday released its third quarter 2019 Foreclosure Prevention and Refinance Report, which shows that Fannie Mae and Freddie Mac (the Enterprises) completed 26,475 foreclosure prevention actions in the third quarter of 2019, bringing the total number of foreclosure prevention actions to 4,381,036 since September 2008. The report also shows that 37 percent of loan modifications completed in the third quarter reduced borrowers' monthly payments by more than 20 percent. The Enterprises' serious delinquency rate dropped to 0.65 percent at the end of the third quarter. This compares with 3.39 percent for Federal Housing Administration (FHA) loans, 1.87 percent for Veterans Affairs (VA) loans and 1.81 percent for all loans (industry average). The report also shows that the Enterprises completed 539,485 refinances in the third quarter.

01/10/2020

CFPB Taskforce on Federal Consumer Financial Law

The CFPB has announced the names of four individuals who will serve on the Bureau's Taskforce on Federal Consumer Financial Law, which will examine the existing legal and regulatory environment facing consumers and financial services providers and report to Director Kraninger its recommendations for ways to improve and strengthen consumer financial laws and regulations. The task force will produce new research and legal analysis of consumer financial laws in the United States, focusing specifically on harmonizing, modernizing, and updating the federal consumer financial laws—and their implementing regulations—and identifying gaps in knowledge that should be addressed through research, ways to improve consumer understanding of markets and products, and potential conflicts or inconsistencies in existing regulations and guidance.

The task force members are:

  • Dr. J. Howard Beales, III, former Professor of Strategic Management and Public Policy at the George Washington University and former Director of the Bureau of Consumer Protection at the Federal Trade Commission;
  • Dr. Thomas Durkin, Senior Economist (retired) at the Federal Reserve Board;
  • L. Jean Noonan, Partner at Hudson Cook, former General Counsel at the Farm Credit Administration, and former Associate Director of the Bureau of Consumer Protection's Credit Practice at the Federal Trade Commission; and
  • Todd J. Zywicki, Professor of Law at George Mason University (GMU) Antonin Scalia Law School, Senior Fellow of the Cato Institute, and former Executive Director of the GMU Law and Economics Center

01/10/2020

OCC adds CRA Request for Info

Yesterday, the FDIC and OCC published [85 FR 1204] their previously announced proposal to amend their respective Community Reinvestment Act regulations. Today, the OCC separately published [85 FR 1285] a Request for Information seeking bank-specific data and information to supplement currently available data and to inform potential revisions to modernize and strengthen the CRA regulatory framework. Responses to this request for information will be accepted through March 10, 2020. Comments on the FDIC/OCC proposed amendments are due by March 9, 2020.

01/10/2020

NMLS annual conference registration info

The NMLS has posted the full agenda for the 2020 NMLS Annual Conference & Training to be held February 18–21 in San Francisco. The event attracts a growing number of state and federal regulators, licensees and general registrants who come together to exchange information on NMLS user and regulatory compliance issues that affect their organizations. Registrants will also get a first look at the State Examination System (SES), which is currently in pilot testing, and learn how to use the system to improve the exam process for companies.

01/10/2020

CFPB sues student loan debt-relief companies

The CFPB has announced it has filed suit against several companies and individuals involved in offering student loan debt-relief services for allegedly obtaining consumer reports illegally, charging unlawful advance fees, and engaging in deceptive conduct. The Bureau’s action is against a mortgage lender called Chou Team Realty, LLC, which does business as Monster Loans (Monster Loans); an allegedly sham mortgage brokerage called Lend Tech Loans, Inc.; and several student loan debt-relief companies, including Docu Prep Center, Inc., which does business as DocuPrep Center and Certified Document Center; Certified Doc Prep Services, LP; Assure Direct Services, Inc.; Direct Document Solutions, Inc.; Secure Preparation Services, Inc.; and Docs Done Right, Inc. The Bureau is also taking action against several individuals, including Bilal Abdelfattah, who is also known as Belal Abdelfattah and Bill Abdel; Thomas “Tom” Chou; Sean Cowell; Robert Hoose; Eduardo “Ed” Martinez; Jawad Nesheiwat; Frank Anthony Sebreros; and David Sklar.

In its complaint, the Bureau alleges that between 2015 and 2017, Monster Loans violated the Fair Credit Reporting Act (FCRA) by obtaining consumer-report information for millions of consumers with student loan debt from a major credit bureau on the pretense that the company planned to use the information to offer mortgage loans to consumers when, in fact, Monster Loans provided the reports to the student loan debt-relief companies to use in marketing their services. The Bureau also alleges that, between 2017 and at least early 2019, Lend Tech Loans similarly violated the FCRA by obtaining consumer report information for millions of consumers for use in marketing student loan debt-relief services.

The Bureau further alleges that, while offering and providing student loan debt-relief services, certain defendants violated the Consumer Financial Protection Act of 2010 and the Telemarketing Sales Rule by making deceptive representations about the companies’ services.

01/10/2020

CFPB and Utah AG to hold joint office hours

The Consumer Financial Protection Bureau and the Office of the Utah Attorney General have announced the first joint office hours to be held as part of the American Consumer Financial Innovation Network (ACFIN). Joint office hours, held as part of ACFIN, provide innovators with the opportunity to discuss issues such as financial technology, innovative products or services, regulatory sandboxes, no action letters, and other matters related to financial innovation with officials from the CFPB and state partners. The joint office hours will be held on January 30, 2020, in Salt Lake City, Utah.

Requests for a meeting during the office hours session must be emailed to officeofinnovation@cfpb.gov by January 17, describing the topic(s) for discussion during the meeting.

01/10/2020

Fed discount rate meetings reports

The Federal Reserve Board has released the minutes of its interest rate meetings on November 4 and December 11, 2019.

01/10/2020

Texas bank ordered to improve BSA/AML program

The Federal Reserve Board has issued a Cease and Desist Order to the United Bank of El Paso del Norte, El Paso, Texas. A recent examination of the bank conducted by the Federal Reserve Bank of Dallas and the Texas Department of Banking identified significant deficiencies in the bank’s risk management and compliance with applicable laws, rules, and regulations relating to anti-money laundering compliance, including the Bank Secrecy Act.

01/09/2020

Brainard explains Fed's CRA stance

Federal Reserve Board Governor Lael Brainard spoke at the Urban Institute yesterday on "Strengthening the Community Reinvestment Act by Staying True to Its Core Purpose." Without disparaging the proposal of the OCC and FDIC to amend their CRA regulations, Brainard described the Federal Reserve Board's approach to measuring CRA performance, indicating that the Board of Governors hopes to inform the public comment process with a goal of arriving at a uniform approach that will allow for an interagency final rule.

01/09/2020

South Sudan VP sanctioned for human rights abuse

The Treasury Department announced Wednesday that OFAC has sanctioned the First Vice President of South Sudan, Taban Deng Gai (Deng), for his involvement in serious human rights abuse, including the disappearance and deaths of civilians. Treasury said, "The Government of South Sudan’s refusal to create political space for dissenting voices — from opposition parties, ethnic groups, civil society, or media — has been a key factor in the country’s inability to implement a peace agreement and ongoing acts of violence against civilians."

For identifying information on Deng, see BankersOnline's OFAC Update.

01/09/2020

Consumer credit increases

The Federal Reserve Board has posted its November 2019 G.19 data, which show that consumer credit increased at a seasonally adjusted annual rate of 3-1/2 percent. Revolving credit decreased at an annual rate of 2-3/4 percent, while nonrevolving credit increased at an annual rate of 5-3/4 percent.

01/09/2020

Maximum amount of OCC CMPs adjusted

The OCC has announced that, on December 30, 2019, it published [84 FR 71735] a notice to adjust the maximum amount of each civil money penalty within its jurisdiction pursuant to the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (2015 Adjustment Act). The adjusted maximum penalties were effective January 1, 2020, for violations occurring on or after November 2, 2015.

The inflation adjustment multiplier for 2020 is 1.01764, as prescribed by the Office of Management and Budget.

01/09/2020

OCC proposes changes under EGRPRA

The OCC has issued Bulletin 2020-1 giving notice of the publication [85 FR 1052] of a proposed rule to address recommendations from the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) report issued in March 2017. Specifically, the proposal:

  • would repeal the regulatory requirements for employment contracts of federal savings associations (FSA) in their entirety.
  • requests comment on potential amendments to the rules regarding fiduciary record-keeping requirements for national banks and FSAs and acceptable collateral for self-deposited trust funds.

The proposal would also make amendments to rules that were not addressed by the EGRPRA report. It would:

  • increase flexibility and reduce burden for FSAs that are converting from mutual to stock form.
  • amend the securities disclosure exemptions in the OCC’s securities offering disclosure rules to remove the requirement that national banks and FSAs provide the OCC with audited financial statements in connection with small securities issues;
  • make technical and conforming amendments to the lending limits and enforcement rules; and
  • make technical amendments to other rules, including updating cross-references to repealed and integrated rules.

Comments on the proposal will be accepted for 61 days, through March 9, 2020.

01/08/2020

NCUA lists 2020 supervisory priorities

The National Credit Union Administration has announced it is has sent its annual letter to credit unions listing supervisory priorities as well as updates on regulations and the agency’s modernization programs. The priorities listed were:

  • Bank Secrecy Act and anti-money-laundering compliance;
  • Consumer financial protection;
  • Cybersecurity;
  • Credit risk and liquidity risk;
  • Continued monitoring of the implementation of the new standard for current expected credit losses, or CECL; and
  • Planning for the transition from the London Interbank Offered Rate, or LIBOR, as the benchmark for setting interest rates.

01/08/2020

Mortgage broker pays for revealing consumer info

The Federal Trade Commission has announced a California-based mortgage broker will pay $120,000 to settle FTC allegations that it violated the Fair Credit Reporting Act and other laws by revealing personal information about consumers in response to negative reviews posted on the review website Yelp. A complaint filed by the FTC alleged that Mortgage Solutions FCS, Inc. (doing business as Mount Diablo Lending) and its sole owner, Ramon Walker, responded to consumers who posted negative reviews on Yelp by revealing their credit histories, debt-to-income ratios, taxes, health, sources of income, family relationships, and other personal information. Several responses also revealed reviewers’ first and last names, according to the complaint.

01/08/2020

Comerica selected as agent for Treasury prepaid cards

Treasury has announced the selection of Comerica Bank as the financial agent for Treasury's Direct Express prepaid debit card program. The new agreement is for five years, beginning in January 2020. Comerica Bank, the current financial agent for the program, was selected by Treasury’s Bureau of Fiscal Service after conducting a competitive selection process and evaluating proposals from multiple financial institutions.

01/08/2020

OCC counterfeit cashier's checks alerts

The OCC issued two alerts yesterday concerning counterfeit cashier's checks purporting to be drawn on banks in Kansas and Wisconsin (links are to detailed information on BankersOnline Alerts and Counterfeits pages for these reports):

01/08/2020

HUD proposes improved AFFH rule

HUD has released its proposed Affirmatively Furthering Fair Housing (AFFH) rule, which offers clearer guidance to states and local governments to help them improve affordable housing choices in their communities.

01/07/2020

Utah tech company settles with FTC

The Federal Trade Commission has granted final approval to a settlement with a Utah-based technology company related to allegations that the firm failed to put in place reasonable security safeguards, allowing a hacker to access the personal information of more than a million consumers. A complaint filed by the FTC alleged that InfoTrax Systems, L.C. and its former CEO Mark Rawlins failed to use reasonable, low-cost, and readily available security protections to safeguard the personal information they maintained on behalf of InfoTrax’s business clients. As a result of the company’s alleged security failures, a hacker infiltrated InfoTrax’s server, along with websites maintained by the company on behalf of clients, more than 20 times from May 2014 until March 2016. The hacker accessed consumers’ sensitive personal information, including Social Security numbers, according to the complaint.

The settlement, initially reported in our November 13, 2019, Top Story, was placed on the public record for 30 days for consideration of public comments.

01/07/2020

IRS 2019 individual tax filing information

The Internal Revenue Service has confirmed that the 2019 tax filing season will start for individual tax return filers on Monday, January 27, 2020, when the tax agency will begin accepting and processing 2019 tax year returns. The deadline to file 2019 tax returns and pay any tax owed is Wednesday, April 15, 2020. More than 150 million individual tax returns for the 2019 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline

01/07/2020

OCC names Deputy Comptroller for Central District

The Office of the Comptroller of the Currency (OCC) has announced its appointment of Brian James as Deputy Comptroller for the Central District. James will oversee 320 community banks and federal savings associations and manage more than 380 examiner and other professional personnel when he assumes the position this month.

James joined the OCC in 1990, and has served in a variety of key positions during his career at the agency, including National Bank Examiner responsible for supervision of community and large banks, Assistant Deputy Comptroller, and Associate Deputy Comptroller.

01/06/2020

OCC releases CRA evals for two dozen banks

The OCC has released a list of 24 CRA evaluations of national banks and federal savings associations that were made public in December, 2019. Sixteen of the evaluations were assigned ratings of "Satisfactory." Congratulations to these eight institutions that received ratings of "Outstanding" (links are to their evaluations):

  1. The Litchfield National Bank, Litchfield, Illinois
  2. The Riddell National Bank, Brazil, Indiana
  3. Home Bank, National Association, Lafayette, Louisiana
  4. Winter Hlll Bank, Somerville, Massachusetts
  5. Valley National Bank, Passaic, New Jersey
  6. First National Bank, Alamogordo, New Mexico
  7. American Express National Bank, Salt Lake City, Utah
  8. The Bank of Bennington, Bennington, Vermont

Pages

Training View All

Penalties View All

Search Top Stories