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Top Story Lending Related

08/31/2003

Top Stories for September 2003

  • 42 CRA Evaluations Released

    The OCC has released the CRA evaluations for forty-two national banks. Nine were rated outstanding, thirty-two were satisfactory and one was needs to improve.OCC CRA 9/30/03

  • September Corporate Applications Online

    The OCC has placed online the September 2003 issue of Corporate Applications which includes interpretive letters, CRA decisions, approvals, final enforcement actions and CRA evaluations. OCC Electronic Interpretations and Actions 9/30/03

  • NCUA Posts Latino Connection Kit

    Credit unions looking for ways to reach America's largest and fastest growing minority can now access a free Latino Connection Kit posted by NCUA on the agency's website. The kit features detailed descriptions of how leading credit union organizations have succeeded in serving Latinos in their communities.Latino Connection Kit 9/30/03

  • FDIC Web Site Has New Look

    The FDIC has redesigned its Web site. New features include: a Quick Links by User section at the top of every page; Alerts and Updates on the menu pages; and a "breadcrumb trail" on menus to help users locate where they are in the site. Users are asked to to browse the site and let the FDIC know what they think by e-mailing the web staff directly at website@fdic.gov. FDIC Web Site 9/29/03

  • Financial Education Opens New Markets

    In a presentation before the 33rd Annual Legislative Conference of the Congressional Black Caucus, FRB Chairman Greenspan discussed the importance of financial education for consumers. He noted that many bankers participate in consumer literacy programs because they want to be recognized as good corporate citizens; however, many other bankers have realized that their activities may help them reach hard-to-serve markets such as immigrants or people without a relationship with a bank.Speech 9/29/03

  • FRB Written Agreement with Institutions

    The FRB has announced the execution of a Written Agreement by and among United National Corporation, Sioux Falls, South Dakota; First PREMIER Bank, Sioux Falls, South Dakota; PREMIER Bankcard, Inc., Sioux Falls, South Dakota; and the Federal Reserve Bank of Minneapolis.Written Agreement 9/26/03

  • Community Development Investments Directory

    The OCC has published the 2002 Directory of National Bank Community Development Investments which lists and summarizes national bank investments that support a public welfare purpose.Investments Directory 9/26/03

  • Treasury Amends FOIA and Privacy Act Regs

    Treasury has published a final rule which establishes the administrative procedures that FINCEN will follow in processing FOIA requests and in implementing the Privacy Act.Final Rule 9/26/03

  • Violations of Sarbanes-Oxley Lead To Arrest

    Thomas C. Trauger, a former Ernst & Young partner who allegedly altered and destroyed audit working papers, was arrested by FBI agents on criminal charges for obstructing investigations by both the OCC and the SEC. A criminal complaint charged Mr. Trauger with obstructing the examination of a financial institution and falsification of records in a federal investigation in violation of the Sarbanes-Oxley Act of 2002.SEC NR 9/26/03

  • Relationship Banking and Tying

    The OCC has published a white paper which examines banks’ market power and economic performance for evidence of tying, discusses the market competitiveness of diversified banking organizations, and recognizes the costs savings that can result from relationship banking.OCC Tying White Paper 9/26/03

  • The Financing of Terror

    Treasury General Counsel Aufhauser testified before the Senate Banking, Housing and Urban Affairs Committee regarding the ways terrorists finance their activities and what is being done to address the problem.Opening Statement; Testimony 9/26/03

  • Thrift Activities Regulatory Handbook Updated

    OTS has announced the update of the Thrift Regulatory Handbook. A new Section 221, Asset-Backed Securitizations, has been added which addresses the securitization and sale of asset pools, such as loans, leases, and credit card receivables.OTS Regulatory Handbook 9/25/03

  • FFIEC September Reporting Forms Online

    The FFIEC has added the September 2003 009, 009a and 019 reporting forms to its Web page.009009a 019 9/25/03

  • NCUA Revises Business Lending Rule

    NCUA has announced the issuance of revisions to the agency's member business lending rule for federally insured credit unions. NCUA NR 9/25/03

  • PACS Program to Be Expanded

    Currently, there are 638 users representing a total of 289 depository institutions and money services businesses who use the PACS system for secure online filing of CTRs and SARs. Together, these institutions file 3.8 million CTRs and SARs annually. FinCEN has announced that it will expand the system as of October 1 to also process the MSB-SAR, SF-SAR, SARC and CTRC forms. PACS Fact Sheet   PACS Web site 9/24/03

  • CIP Deadline Alert

    Don't forget that your CIP program must be in place and fully implemented on October 1. If you have any last minute questions, review the articles, threads and Q & As from our CIP Week. The BOL CIP Tools contain implementation pointers, sample CIP notices, writing tips, and customer identification aids. You will also find training scenarios in our CIP Training section. 9/24/03

  • Reg Z Changes Effective October 1

    The FRB final rule revising the official Reg Z commentary which was effective April 1, becomes mandatory on October 1. The revisions, as previously reported in BOL Top Stories, cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. 9/24/03

  • OFAC Adds SDGTs

    As reported in a BOL Special Briefing yesterday, OFAC has updated the SDN list by adding 8 individuals as SDGTs. The information regarding the new listings has been placed on the BOL OFAC page. 9/24/03

  • September FEDS Working Papers Published

    The FRB has published four new working papers in the Finance and Economic Discussion Series. Papers with the following topics were released: Can Rational Expectations Sticky-Price Models Explain Inflation Dynamics?; Further Evidence on the Link between Finance and Growth: An International Analysis of Community Banking and Economic Performance; Modeling Aggregate Investment: A Fundamentalist Approach; and Does Mortgage Hedging Amplify Movements in Long-term Interest Rates?. Rational Expectations    Further Evidence    Modeling    Mortgage Hedging 9/24/03

  • Foreign Bank Structure And Share Data Report

    The June 2003 Structure and Share Data for U. S. Offices of Foreign Banks report has been issued by the FRB.Structure and Data Report 9/24/03

  • Banks Encouraged to Assist Isabel Victims

    The OCC has outlined measures to assist national banks and their customers affected by Hurricane Isabel.OCC NR 9/24/03

  • Final 2nd Quarter Interest Rate Risk Measures

    OTS has released the final Second Quarter 2003 Thrift Industry Interest Rate Risk Measures.Interest Rate Risk Measures 9/24/03

  • FDIC Consumer News Summer 2003 Edition

    The Summer 2003 edition of the Consumer News has been published by the FDIC. What consumers need to know about

    credit protection and minimum payments on credit cards are two of the many topics covered in this issue.Consumer News 9/24/03

  • CRA Evaluations Released

    OTS has released its CRA performance evaluations for July and August.CRA July    CRA August 9/23/03

  • Special Alert Issued by FDIC

    The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Wakulla Bank, Tallahassee, Florida and counterfeit checks drawn on Commonwealth Co-operative Bank, Boston, Massachusetts payable through Fleet Bank, Boston, Massachusetts. Information regarding the counterfeit checks, in addition to contact information, has been placed on the BOL Alerts & Counterfeits page. 9/23/03

  • Regulators Speak to ABA Conference

    FDIC Chairman Powell and Comptroller Hawke made presentations regarding new regulations and the challenges facing the banking industry to the attendees at the ABA Conference in Hawaii.FDIC    OCC 9/23/03

  • Electronic Filing of Ownership Reports

    The OCC is issuing an interim rule, with a request for comments, to amend rules, policies, and procedures to require the electronic filing of beneficial ownership reports by officers, directors, and major shareholders of national banks that have equity securities registered under the Securities Exchange Act of 1934 (registered national banks). 68FR54981 (txt) 68FR54981 (pdf) 9/22/03

  • Same Day Tax Information Via FedMail

    Effective immediately, FRB Financial Services is offering a new daily tax transaction report available through the FedMail® email delivery service. FRB Services Sameday 9/22/03

  • Treasury Agrees with Section 326 Comments

    Treasury has announced that it agrees with the majority of the 34,000 comments received in response to the notice of inquiry issued in July regarding possible changes to Section 326 of the USA PATRIOT Act. The notice of inquiry sought comment on two specific issues: (1) whether financial institutions should be required to retain photocopies of identification documents used to verify customers’ identities; and (2) whether financial institutions should be prohibited from accepting foreign government issued identification documents other than passports as an acceptable form of identification. Treasury PR 68FR55335 (txt) 68FR55335 (pdf)9/19/03

  • October HOEPA APR Reference Rates

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in October will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application.H. 15 Daily RatesH. 15 Weekly Rates 9/19/03

  • Assistance to Victims of Isabel

    The OTS has announced steps thrifts could take to assist their customers in the areas affected by Hurricane Isabel. Suggested assistance ranges from temporarily waiving late payment charges and early withdrawal of savings penalties to restructuring borrowers’ debt obligations by altering or adjusting payment terms.OTS Isabel Assistance 9/19/03

  • Term Investment Option Auction Results

    Treasury has released the results of the Tax and Loan Investment Program Term Investment Option auction held September 18, 2003.Action Results 9/19/03

  • Bank Offices May Close Due to Isabel

    The OCC has issued a proclamation allowing national bank offices affected by Hurricane Isabel to close at their discretion.OCC Proclamation 9/18/03

  • Enforcement Actions Announced

    The OCC has announced six new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Indiana, Arkansas, Missouri, Pennsylvania, and Oklahoma. OCC NR 9/18/03

  • Four International Finance Papers Released

    The FRB has released four International Finance Discussion papers. Topics include: Revisiting the Border: An Assessment of the Law of One Price Using Very Disaggregated Consumer Price Data; News or Noise? An Analysis of Brazilian GDP Announcements; Contagion: An Empirical Test; and How do Canadian Hours Worked Respond to a Technology Shock? Revisiting    News    Contagion   Canadian Hours 9/18/03

  • FYI Evaluates Consumer Lending

    The FDIC has placed a new edition of FYI online. This issue of the electronic bulletin features an article evaluating the consumer lending revolution.FDIC FYI 9/18/03

  • OTS September 2003 FRB Online

    OTS has placed the September 2003 edition of the Financial Reporting Bulletin on its website. Articles covering Third Quarter Deadlines and the September 2003 TFR Instruction Manual Updates are included in the issue.OTS FRB 9/17/03

  • Special Alerts Issued by FDIC

    The FDIC has issued a Special Alerts regarding cashier's checks drawn on Inwood National Bank, Dallas, Texas, which were lost in transit from its printing company; counterfeit cashier's checks drawn on Bank of Lincolnwood, Lincolnwood, Illinois; and counterfeit money orders drawn on First United Bank, Crete, Illinois. Information regarding the missing and counterfeit items in addition to contact information has been placed on the BOL Alerts & Counterfeits page. 9/17/03

  • SEC and NY AG Charge BOA Broker

    The SEC and the New York State Attorney General have announced that state criminal and federal civil charges have been filed against a Bank of America (BOA) broker for his role in a scheme involving unlawful trading of mutual funds.Broker Charged 9/17/03

  • Fed Funds Rate Target Released

    The Federal Open Market Committee has announced the target for the federal funds rate. FRB PR 9/17/03

  • G.17 Report Issued

    The FRB has issued the September 15, 2003 Industrial Production and Capacity Utilization Report.FRB G.17 9/16/03

  • Basel Accord Discussed in FRB Bulletin

    The September 2003 FRB Bulletin contains an article regarding capital standards for banks and the evolving Basel Accord.FRB Bulletin 9/16/03

  • Cost of Funds Reports Released

    The OTS has released the historical and current reports regarding the cost of funds for OTS regulated SAIF insured institutions.Historical Report    Current Report 9/16/03

  • Term Investment Option Auction Results

    Treasury has released the results of the Tax and Loan Investment Program Term Investment Option auction held September 15, 2003.Auction Results 9/16/03

  • Risk Based Capital Interim Rule and NPR

    The financial regulators have requested public comment on an interim final rule and issued a notice of proposed rulemaking to amend their risk-based capital standards for the treatment of assets in asset-backed commercial paper programs consolidated under the recently issued FIN 46.Interim Rule   NPR    FRB NR    OCC NR    OTS NR    FDIC PR 9/15/03

  • OFAC CMP To Be Released Monthly

    OFAC has announced that it will post certain civil penalties information on the agency's website on the first Friday of each month. The next publication date will be October 3, 2003. OFAC CMP 9/15/03

  • OCC Issues Phishing Alert

    The OCC has issued an alert regarding unsolicited e-mails directing consumers to a phony "customer service" Web site or directly asking for customer information. This increasingly common Internet fraud is called "phishing." Banks are encouraged to educate their customers, strengthen monitoring systems, and enhance response programs to reduce the risk to their organizations and customers. OCC Alert 9/15/03

  • 2002 Corporate Medium-Term Notes Report

    The FRB has released the 2002 corporate medium-term notes report. Corporate Notes Report 9/15/03

  • Derivatives Volume Surpasses $65 Trillion

    The OCC has issued its quarterly Bank Derivatives Report which indicates that derivatives held by U. S. commercial banks increased $4.4 trillion in the second quarter to $65.8 trillion.  Derivatives Report 9/15/03

  • Cease and Desist Order Involving BSA

    The FRB has announced the issuance of a Cease and Desist Order against a former senior vice president, chief financial officer, and cashier of the Premier Bank, Denver, Colorado, addressing his compliance with the Bank Secrecy Act.Cease and Desist Order 9/12/03

  • NCUA Prohibition Orders Issued

    NCUA has announced the issuance of prohibition orders against four former officers and employees of credit unions in California and Massachuettes. NCUA NR 9/12/03

  • SEC Amends Rules and Proposes Changes

    The SEC has adopted amendments to its rules dealing with custody of client assets; proposed a rule that would provide foreign banks meeting certain conditions with exemption from insider loan prohibitions; and voted to propose changes to Form F-6 with regard to registration of certain unsponsored American depositary receipts (ADRs).SEC PR 9/12/03

  • International Reserve Position

    Treasury has issued the U. S. International reserve position for the week ending September 5, 2003.Reserve Position 9/12/03

  • War on Terrorism Progress Report

    A report on the progress in the war on terrorism financing has been issued by Treasury. Since September 11, 2001, 1439 accounts containing more than $13.7 million in assets has been frozen worldwide.Progress Report 9/12/03

  • Revision to OFAC Civil Penalties Regulations

    OFAC is issuing an interim final rule to provide revisions to its civil penalties regulations promulgated pursuant to the Trading with the Enemy Act. These revisions consolidate substantive changes to the Foreign Assets Control Regulations, and the Cuban Assets Control Regulations, in a new subpart of the Reporting and Procedures Regulations, renamed Reporting, Procedures, and Penalties Regulations. Conforming changes are made to the other parts of the regulations. 68FR53640 (txt final rule)     68FR53640 (pdf final rule) 68FR53662 (txt proposed rule)     68FR53662 (pdf proposed rule) 9/11/03

  • Uniform Residential Loan Application Updated

    The FRB has published in the Federal Register a technical amendment to Regulation B (Equal Credit Opportunity). The amendment updates the model application form ``Uniform Residential Loan Application". 68FR53491 (txt) 68FR53491 (pdf) 9/11/03

  • FRB Interpretations Regarding 23A

    The FRB has released five legal interpretations regarding grants of exemptions from the quantitative limits of section 23A of the Federal Reserve Act, 12 U.S.C. 371c. Feb. 14, 2003    March 1, 2002    June 19, 2002    February 27, 2003    August 14, 2003    9/11/03

  • Credit Quality Stabilizes

    The quality of large syndicated bank loans stabilized this year, according to the Shared National Credit (SNC)1 review released by federal bank regulators. FRB PR    OCC PR    OTS PR    FDIC PR 9/11/03

  • Get the Scoop on the New Currency

    The first newly redesigned Series-2004 $20 notes, featuring background colors and improved security features, will be issued October 9. Read Series-2004 $20 Bills to be Issued in October. 9/10/03

  • Z. 1 Flow of Funds Report Released

    The FRB has released the second quarter 2003 Z.1 Flow of Funds Accounts of the United States.Z. 1 9/10/03

  • Banks Face New Challenges

    The FDIC has issued the fall 2003 edition of the FDIC Outlook which states the faster economic growth in the second half of 2003 could pose new challenges for banking and thrift institutions, particularly those that specialize in mortgage lending.FDIC Outlook 9/10/03

  • Reg F Final Rule Issued

    The FRB has adopted final, technical amendments to its Regulation F that remove an obsolete section of the rule and correct severaltypographical errors. 68FR53283 (txt)68FR53283 (pdf)9/10/03

  • FRB Application Information Available Online

    An online guide for U.S. and foreign banking organizations submitting applications to the Federal Reserve has been added to the FRB public web site. FRB SR 03-16 Applications Information 9/9/03

  • FDIC Announces CRA Evaluations

    The FDIC has issued the September list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in June 2003. CRA Evaluations 9/9/03

  • OTS Audit Requirements Final Rule

    OTS has adopted a final rule that amends the annual independent audit requirements for certain savings institutions. Final Rule 9/9/03

  • OTS Issues Fiduciary Activities Final Rule

    OTS has issued a final rule amending its regulation governing agency offices of federal savings associations. Final Rule    68FR53204 (txt)    68FR53204 (pdf) 9/9/03

  • Fed ACH International Services to Offer LPIs

    FedACH International Services will offer limited production implementations (LPIs) of Transatlantic and Mexico services expected to begin November 3, 2003. FedACH LPIs 9/9/03

  • Twenty New SDGTs

    OFAC has designated twenty new individuals as SDGTs. Information regarding the designations has been added to the BOL OFAC page. 9/8/03

  • UBPR and FFIEC Report Forms Online

    The FFIEC has made available on its web site the June 30, 2003 UBPR and the September 2003 FFIEC 031 and 041 report forms.UBPRFFIEC 031 FFIEC 041 9/8/03

  • New MSA Questions Answered

    The FFIEC has issued answers to the most common questions that have been asked regarding the June 2003 changes in MSA boundaries and terminology.FFIEC HMDA Q & As FFIEC CRA Q & As 9/8/03

  • U.S. International Reserve Position

    The Treasury Department has released the U.S. reserve assets data for the latest week. Reserve Position 9/8/03

  • Comments Sought Regarding FRB Reports

    The FRB has issued proposals for comment regarding the approval of extensions for three years of the Monthly Report of Traveler's Checks Outstanding (FR 2054); and the following Government Securities Dealers Reports: FR 2004A, FR 2004B, FR 2004C, FR 2004SI, FR 2004SD, and FR 2004WI.FRB Proposals 9/8/03

  • Subprime Lender Charged by FTC

    The FTC has charged subprime lender Stewart Finance Company, its owner, and nine related companies with violating federal lending laws and has asked a U.S. District Court to immediately halt their practices and order redress for consumers who were victims.FTC PR   Complaint 9/5/03

  • Bond Trading Enforcement Actions

    The SEC has announced enforcement actions against Goldman Sachs, Massachusetts Financial Services Company, and three individuals relating to trading based on non-public information about Treasury's decision to cease issuance of the 30-year bond.SEC PR   Goldman Sachs Order    Mass. Financial   Compliant Against Individuals 9/5/03

  • Charge-Off and Delinquency Rates Released

    The FRB has released the quarterly report of charge-off and delinquency rates on loans and leases at commercial banks.Charge-Off Rates 9/5/03

  • Earnings Record Set in Second Quarter

    Commercial banks and savings institutions insured by the FDIC posted record earnings in the second quarter of 2003, breaking the previous quarterly high set in the first quarter of this year.FDIC PR Quarterly Banking Profile 9/5/03

  • September Treasury Bulletin Available Online

    The FMS has placed the September 2003 Treasury Bulletin on its web page.Treasury Bulletin 9/5/03

  • FTC Issues ID Theft Survey Results

    The results of a survey regarding identity theft conducted by the FTC indicate over 27 million Americans have been victims of ID theft in the last five years and losses for business and consumers exceed $50 billion. Review the highlights of the survey data in a BOL article from Mary Beth Guard, "ID Theft: The Real Numbers". 9/4/03

  • Executive Order Blocks Iraqi Assets

    President Bush has issued Executive Order 13315 blocking property of the former Iraqi Regime, its senior officials and their family members. Information regarding the Executive Order has been placed on the BOL OFAC page. 9/4/03

  • FDIC Enforcement Actions Announced

    The FDIC has announced 18 enforcement orders. The actions include two cease-and-desist orders, four removal-and-prohibition orders, two civil money penalty orders, one termination of insurance order, seven terminations of cease-and-desist orders, and two adjudicated decisions. Enforcement Orders 9/4/03

  • Counterfeit Cashier's Checks

    The FDIC has issued Special Alerts regarding counterfeit cashier's checks drawn on First National Bank of Abilene, Abilene, Texas and counterfeit official checks drawn on Nevada State Bank, Las Vegas, Nevada. Information concerning the counterfeit checks has been placed on the BOL Alerts & Counterfeits page. 9/4/03

  • OCC Bulletin Regarding Auditing Final Rule

    The OCC has issued Bulletin 2003-38 regarding the joint final rule previously issued by the financial regulators concerning the removal, suspension, and debarment of accountants from performing annual audit and attestation services. Information pertaining to the final rule was published in BOL Top Stories on August 11, 2003. 9/4/03

  • FTC Issues ID Theft Survey Results

    The results of a survey regarding identity theft conducted by the FTC indicate over 27 million Americans have been victims of ID theft in the last five years and losses for business and consumers exceed $50 billion. Review the highlights of the survey data in a BOL article from Mary Beth Guard, "ID Theft: The Real Numbers". 9/4/03

  • Beige Book Economic Report Released

    The FRB has released the informal review by the Federal Reserve Banks of current economic conditions in their districts.Beige Book Summary   Beige Book Full Report  9/4/03

  • New FEDS Working Papers Available

    Three new working papers in the Federal Economic and Discussion Series have issued by the FRB. The topics include: "Interest Rates as Options": Assessing the Markets' View of the Liquidity Trap; The Replacement Demand for Motor Vehicles: Evidence from the Survey of Consumer Finances; and Inflation Targets Credibility and Persistence in a Simple Sticky-Price Framework.Interest Rates  Replacement Demand   Inflation Targets 9/4/03

  • Four FedACH File Deliveries Per Day

    FR Services has announced that starting September 19, 2003, FedACH output files will be delivered four times daily. FedACH Files 9/4/03

  • Minnesota Bank Enforcement Actions

    The FRB has announced the execution of a Written Agreement by and between the Ridgedale State Bank, Minnetonka, Minnesota and the Federal Reserve Bank of Minneapolis and the issuance of a Cease and Desist Order against the president of the bank.Written Agreement Cease and Desist Order 9/3/03

  • Written Agreement Involving BSA and AML

    The FRB has announced the entering into a written agreement with Gold Banc Corporation and Gold Bank of Leawood, Kansas regarding BSA, AML, information technology, customer due diligence, Reg O and Reg Y.Written Agreement 9/3/03

  • Regulators Release CRA Exam Schedules

    The OCC and OTS have released their fourth quarter 2003 CRA examination schedules.OCC CRA Exam Schedule    OTS CRA Exam Schedule 9/3/03

  • Application Web Site Launched by FRB

    The FRB has launched a new web site which contains general information about the types of filings required by the Federal Reserve and how they are processed.FRB Application Information 9/3/03

  • June 30 Call Report Data Released

    The FDIC has released the June 30, 2003 call and thrift financial report data.FDIC Reports 9/3/03

  • TFR Filing Due Date Unchanged

    The OTS has decided to not change the TFR filing date and released the March 2004 form, schedules, forms and mapping information.TFR Filing Date    March 2004 Form    2004 Schedules    2004 Forms   Mapping 9/2/03

  • Uncertainty and Monetary Policy

    Chairman Greenspan observed in remarks presented at a FRB symposium that uncertainty was the defining characteristic of the money policy landscape. He stated conducting U. S. monetary policy involves crucial elements of risk management and devising a strategy directed at achieving price stability and sustainable economic growth. He also identified a set of key relationships that are utilized to approximate the economy's dynamics.Greenspan Remarks 9/2/03

  • FRB Reassigns a few Routing Symbols

    The FRB is amending appendix A of Regulation CC to delete the reference to the Pittsburgh check processing office of the Federal Reserve Bank of Cleveland and reassign the Federal Reserve routing symbols currently listed under that office to the head office of the Federal Reserve Bank of Cleveland. 68FR52077 (txt) 68FR52077 (pdf) Correction 9/2/03

07/31/2003

Top Stories for August 2003

  • Two New Burma General Licenses Issued

    OFAC has issued two new General Licenses under the Burma sanctions program. Information regarding the new licenses has been placed on the BOL OFAC page. 8/29/03

  • Reg CC Amendments Announced

    The FRB has announced amendments to Appendix A of Regulation CC, effective November 1, 2003, that reflect the restructuring of the Federal Reserve's check processing operations in the Fourth District. As a result, some checks deposited in the affected regions that currently are nonlocal checks will become local checks that are subject to shorter permissible hold periods.Reg CC Amendment 8/29/03

  • Removal Orders and CMPs Issued

    The FDIC has announced the issuance of removal and prohibition orders in addition to imposing civil money penalties against bankers in Illinois, Wisconsin, Minnesota and Tennessee. Illinois Bankers    Wisconsin Banker    Minnesota Banker    Tennessee Banker    Tennessee Banker 8/29/03

  • FRB Proposes Changes to the Anti-Tying Restrictions

    The proposed exception provides that a financial subsidiary of a state nonmember bank shall be treated as an affiliate of the bank, and not as a subsidiary of the bank, for purposes of section 106. The anti-tying restrictions of section 106 generally apply to subsidiaries, but not affiliates, of banks. 68FR51938 (txt) 68FR51938 (pdf) 8/29/03

  • $3 Million CMP for Anti-Tying Violations

    The FRB has announced the issuance of a Combined Consent Order to Cease and Desist and an Order of Assessment of a civil money penalty in the amount of $3 Million against WestLB AG, Dusseldorf, Germany, and its New York Branch for violations of anti-tying restrictions of the Bank Holding Company Act and related unsafe and unsound banking practices.FRB Order 8/28/03

  • 23 Enforcement Actions Announced

    The OCC has announced 23 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. Enforcement Actions 8/28/03

  • 35 CRA Evaluations Released

    The OCC has released the CRA performance evaluations for the period of July 15, 2003 through August 14, 2003. Of the 35 evaluations made public this month, 6 were outstanding, 28 were satisfactory and 1 was needs to improve. CRA Evaluations 8/28/03

  • OCC Bulletin Regarding Guidance

    The OCC has issued Bulletin 2003-37 concerning the publication in the Federal Register by the financial regulators of proposed interagency guidance on response programs for unauthorized access to customer information and customer notice. Information regarding the proposed guidance was featured in BOL Top Stories on August 12, 2003. 8/28/03

  • FRB Publishes August Working Papers

    The FRB has published the August edition of the working papers in the Finance and Economic Discussion Series. Topics include: An Empirical Test of a Two-Factor Mortgage Valuation Model: How Much Do House Prices Matter?; Inflation Scares and Forecast-Based Monetary Policy; and Volatility Puzzles: A Unified Framework for Gauging Return-Volatility Regressions.Empirical Test Monetary Policy Volatility Puzzles 8/27/03

  • Prelim 2nd Quarter Interest Rate Risk Data

    The OTS has released preliminary interest rate risk measures for the second quarter of 2003.
    Interest Rate Data 8/27/03

  • Addition and Updates to SDN List

    OFAC has added one new entry and updated four others. Information regarding the addition and the updates has been placed on the BOL OFAC page. 8/25/03

  • Anti-Tying Comment Period Starts

    The FRB has announced it will accept comments until September 30, 2003 on proposed interpretations to the anti-tying restrictions of the BHC and Reg Y. The interpretations provide a comprehensive guide to the restrictions and a new exception for subsidiaries of state nonmember banks.FRB Interpretation    FRB Comment Request    OCC Statement 8/26/03

  • Don't Let Your Customers Be Duped

    Help spread the word about a scam involving the FTC's Do Not Call program. Advertisements are running nationwide urging consumers to call an 800 number and pay only $2.95 to sign up on the system. The ads are not from the FTC who does not charge a fee for the service.FTC Warning 8/26/03

  • FRB Publishes Adjusted Dollar Amount for Reg Z

    The FRB is required to adjust annually the dollar amount that triggers requirements for certain home mortgage loans bearing fees above a certain amount. The adjusted dollar amount for 2004 is $499.
    68FR50965 (txt) 68FR50965 (pdf) 8/25/03

  • Updating FinCEN Search Contact Point

    FinCEN has disseminated directions for financial institutions to follow in the event they need to update, change, add, or delete the institution’s point of contact information on FinCEN’s distribution list for receiving Section 314(a) search requests.
    FinCEN 8/25/03

  • ABA Helps Secure Fax Regs Delay

    As a result of efforts by the ABA and other organizations and associations, the FCC has delayed the effective date for regulations that require prior written permission for commercial faxes until January 1, 2005. Originally, those regulations were scheduled to take effect August 25, 2003. Regardless of the extension, however, fax transmitters still must obtain prior express permission from fax recipients with whom they do not have established business relationships.FCC News Release    FCC's reconsideration order 8/25/03

  • Hamas Entities and Leaders Designated SDGTs

    The President has announced the designation of five Hamas related charities and six leaders as SDGTs, the freezing of their assets in the U.S. and prohibiting transactions with U.S. nationals. Details of the designations can be found on the BOL OFAC Page. 8/25/03

  • OTS Regional Financial Management Seminars

    The Office of Thrift Supervision has scheduled three more regional seminars to be held during October 2003 in Columbus, Ohio; Warwick, Rhode Island; and Pittsburgh, Pennsylvania to cover an Industry Overview, Accounting Updates, Examination Updates, Regulatory Capital Update, Interest Rate Risk and Capital Markets Update, and Audit Update. OTS SeminarsRegistration Form 8/25/03

  • Two Additional Burma General Licenses Issued

    OFAC has issued two additional General Licenses under the Burma sanctions program. Information regarding the new licenses has been placed on the BOL OFAC page. 8/25/03

  • FDIC Issues Final Rule Governing Filing Procedures

    The changes to Part 303 and the technical corrections to other regulations in Chapter III clarify: The rules relating to time period commencements; The FDIC's response time for certain filings; The required rating for expedited processing for thrift and thrift holding company filings; That the acquisition of control of a parent company of a state nonmember bank generally requires a change in control notice; and The certification to be made by an insured depository institution relating to golden parachute payments. FDIC:FIL-67-2003 68FR50457 (txt) 68FR50457 (pdf) 8/22/03

  • Strengthening Financial Risk Management at the FDIC

    The Federal Deposit Insurance Corporation engaged McKinsey & Company to perform a review of its reserving methodology and processes as well as other financial risk management practices. The resulting report is posted on the FDIC website. Report 8/22/03

  • Flood Violation Civil Money Penalty

    The FRB has announced the issuance of a consent Order of Assessment of a Civil Money Penalty in the amount of $5,250 against the Community State Bank, Villa, Indiana for alleged violations of the National Flood Insurance Act.
    FRB Civil Money Penalty     Flood Training 8/21/03

  • Revised Exam Procedures Available Online

    The FDIC has placed the revised compliance examination procedures which superseded sections of the Compliance Examination Manual on its web site. FDIC Revised Procedures Online 8/21/03

  • Cashier's Checks Special Alert

    The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Peninsula Bank, Englewood, Florida. Information regarding the counterfeit items and contact information has been placed on the BOL Alerts & Counterfeits page. 8/21/03

  • Late Return Dispute Resolution

    The Federal Reserve has established procedures to assist depository institutions in the resolution of late claim disputes including an enhanced sign-on method for payor bank/deposit services and check adjustments via FedLine for the Web.FRB Financial Services 8/21/03

  • U.S. International Reserve Position

    Treasury has released the U.S. reserve assets data for the week ending August 15, 2003. Reserve Position 8/21/03

  • G.20 Finance Companies Report

    The FRB has released the June 2003 G.20 Finance Report regarding owned and managed receivables.G.20 8/21/03

  • Thrifts Set Earnings Records

    The OTS has announced that in the second quarter of 2003 the nation's thrift industry set records for net income, profitability, equity capital and mortgage originations.OTS Records 8/21/03

  • 2004 HOEPA Trigger Established

    The FRB has announced the 2004 adjustment to the dollar amount that triggers HOEPA for home mortgage loans when total points and fees payable by the consumer exceed the fee-based trigger which is adjusted annually. FRB HOEPA Trigger 8/20/03

  • Disciplinary Actions Against Accountants

    The FDIC has issued FIL-66-2003 concerning the interagency final rules that establish procedures under which the agencies can remove, suspend, or bar an accountant or firm from performing audit and attestation services for insured depository institutions. Information regarding the final rules was previously featured in BOL Top Stories on August 13, 2003. 8/19/03

  • FIL Regarding OFAC Changes

    The FDIC has issued FIL-65-2003 regarding the addition of one corporation to the SDNT list and the designation of two individuals as SDGTs. The information concerning the OFAC changes was added on August 8, 2003 to the BOL OFAC Page. 8/19/03

  • September HOEPA APR Reference Rates

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in September will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application.
    H.15 Daily Rates    H. 15 Weekly Rates 8/19/03

  • August Financial Holding Company List

    The FRB has issued the August 1, 2003 list of bank holding companies that have elected to become financial holding companies or be treated as financial holding companies. FRB FHC List 8/19/03

  • Burma Program New Licenses Issued

    OFAC has issued five new general licenses under the Burmese sanctions program. Details regarding the new licenses have been placed on the BOL OFAC page. 8/18/03

  • SDGT Added and Three Entries Updated

    A foreign terrorist organization has been listed as a SDGT and three existing entries have been updated by OFAC. Information regarding the listing and the updates has been placed on the BOL OFAC page. 8/18/03

  • July 2003 G.17 Report

    The FRB has released the G.17 Industrial Production and Capacity Utilization report for July 2003.G.17 8/18/03

  • Bank Lending Practices Survey Results

    The results of the August 2003 senior loan officer opinion survey on bank lending practices has been released by the FRB. FRB PR Full Report 8/18/03

  • OTS Issues Cost of Funds Reports

    The OTS has issued reports regarding the national average cost of funds ratio to OTS regulated SAIF insured institutions.June 2003 Report Historical Report 8/18/03

  • Federal Agency Lockbox Service Opportunities

    The Financial Management Service has published an Invitation for Expressions of Interest for the General Lockbox Network. Any qualified financial institution that is interested in providing general lockbox services to Federal government agencies must submit a notice of intention to respond.FMS Lockbox Invitation 8/18/03

  • OCC Issues Final Rule to Promote Public Welfare

    This final rule updates the regulation to reflect the additional types of public welfare investment structures that have become more common in recent years and that are permissible under the governing statute. 68FR48771 (txt) 68FR48771 (pdf) 8/15/03

  • FIL Regarding Burma Sanctions

    The FDIC has issued FIL-64-2003 concerning an Executive Order issued by the President with respect to Burma (Myanmar) that added four new entries to the SDN list, blocked property of the government of Burma, and prohibited certain transactions. Information regarding the Executive Order was previously included in BOL TOP Stories on July 30, 2003. 8/15/03

  • Counterfeit Money Orders Special Alert

    The FDIC has issued a Special Alert regarding counterfeit money orders drawn on The Monongahela Valley Bank, Inc., Fairmont, West Virginia. The counterfeit money orders contain a misspelled word and are printed on the wrong color stock. Information regarding the money orders and contact information has been placed on the BOL Alerts & Counterfeits page. 8/15/03

  • FRB Finance and Economics Working Papers

    Eleven new working papers in the Finance and Economics Discussion series are now available on the FRB Web site. Topics range from "Economic and Regulatory Capital Allocation for Revolving Retail Exposures" to "Inflation Persistence and Relative Contracting".FRB Working Papers 8/14/03

  • Accountants Rule Published in Federal Register

    Section 36, as implemented by 12 CFR part 363, requires that each insured depository institution with total assets of $500 million or more obtain an audit of its financial statements and an attestation on management's assertions concerning internal controls over financial reporting by an independent public accountant (accountant). The insured depository institution must include the accountant's audit and attestation reports in its annual report. This was previously published in BOL Top Stories on August 11th. 68FR48256 (txt) 68FR48256 (pdf) 8/13/03

  • HMDA 2004 Training Presentation

    FFIEC has placed a training presentation regarding HMDA 2004 and the revisions to Reg C on its Web site.FFIEC HMDA Training 8/13/03

  • ID Theft Notification Program Comments

    Financial regulators have requested comments on a proposed interagency guidance that would require financial institutions to develop a response program to protect against risks to customer information which includes procedures for the notification of customers whose information may have been compromised. Interagency Guidance  FDIC PR   FDIC FIL   OCC NR   FRB PR   OTS PR 8/13/03

  • U.S. International Reserve Position Released

    Treasury has released the U.S. reserve assets data for the week ending August 8, 2003.Reserve Position 8/13/03

  • Fed Funds Target Rate Set

    The Federal Open Market Committee has set the target rate for federal funds.Target Rate 8/13/03

  • Interagency Guidance on Response Programs

    The Agencies are requesting comment on proposed guidance entitled Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice. 68FR47954 (txt) 8/12/03

  • Credit Repair Firm to Pay $1.15 Million

    One of the country's largest credit-repair operations has agreed to pay more than $1.15 million in consumer redress to settle FTC charges that it violated federal law by falsely claiming that it could remove derogatory information from consumers’ credit reports, even if that information was accurate and not obsolete. FTC Complaint Settlement 8/12/03

  • OCC Issues Liquidity Management Bulletin

    The OCC has issued Bulletin 2003-36 regarding the "Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management" which was previously issued by the financial regulators. Information concerning the advisory was published in BOL Top Stories on July 24, 2003. 8/12/03

  • OFAC Adds New SDN and Two SDGTs

    OFAC has blocked the property and interests of a new SDN entity and two new individuals have been added as SDGTs. Information regarding the new listings has been placed on the BOL OFAC page. 8/11/03

  • Regulators Can Discipline Outside Auditors

    The financial regulators have issued final rules governing their authority to take disciplinary actions against independent public accountants and accounting firms that perform audit and attestation services required by the Federal Deposit Insurance Act.   Joint Final Rule  FRB PR  OCC NR 2003-62   OTS 03-25   FDIC PR-77-2003 8/11/03

  • Guidelines for Real Estate Lending Policies

    The OCC has issued an advisory letter regarding the reiterated and expanded guidance contained in its Commercial Real Estate and Construction Lending booklet. Finished lot loans, risk management insurance products and nonconforming loan amounts are addressed by the guidance. OCC AL 2003-7 8/11/03

  • Thrift Activities Handbook Updated

    OTS has issued a regulatory bulletin regarding the update of the Operations Analysis section of the Thrift Activities Regulatory Handbook. OTS RB-32-39 8/11/03

  • Counterfeit Cashier's Checks Special Alert

    The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Klein Bank, Spring, Texas and The Peoples State Bank, Clyde, Texas. Information regarding the checks and contact information has been placed on the BOL Alerts & Counterfeits page. 8/11/03

  • FinCEN Seeks Comments on Strategic Plan

    FinCEN has published a draft of its 2003-2008 Strategic Plan. Comments are sought from all parties that might be affected or interested.FinCEN Strategic Plan 8/11/03

  • ECOA Adverse Action New Address

    The OCC has announced that its Customer Assistance Group has a new address. Banks should begin using the new address in adverse action notices required under the Equal Credit Opportunity Act as soon as practicable.OCC Bulletin 2003-33 8/8/03

  • OCC Bulletin Regarding NPR

    The OCC has issued Bulletin 2003-35 announcing the publication in the Federal Register on August 5 of a notice of proposed rulemaking on bank activities and operations; and real estate lending and appraisals. The publication of the NPR was previously reported in BOL Top Stories. 8/8/03

  • OCC Issues Reg C Transition Bulletin

    The OCC has issued Bulletin 2003-34 regarding the prior issuance by the FRB of final transition rules for Reg C. Information regarding the final rule was previously announced in the May 28, 2003 BOL Top Stories. 8/8/03

  • Bank Directors and Corporate Governance

    The role of the board of directors in the control process and how they can become more informed were two of the many topics relating to corporate governance that were discussed by FRB Governor Bies at the Community Bank Directors Conference. She also reviewed the risks that can occur at community banks without effective governance.
    Speech 8/8/03

  • Consumer Credit Report Released

    The FRB has released the G.19 Consumer Credit Report for June 2003.G.19 8/8/03

  • CRA Evaluations Released

    The FDIC has issued the list of state nonmember banks evaluated in May 2003 for compliance with CRA. Of the 157 banks evaluated, 14 received an outstanding rating and the remainder were rated satisfactory.CRA List 8/7/03

  • Director Nomination Disclosures Proposed

    The SEC has proposed rule changes that would strengthen disclosure requirements relating to nomination of directors and shareholder communications with directors. The changes result from an internal study conducted by the SEC staff. Information regarding the study was previously reported in BOL Top Stories on July 14, 2003. SEC PR 8/7/03

  • NCUA Continues Interest Rate Ceiling

    The current 18 percent per year federal credit union maximum loan rate was scheduled to revert to 15 percent on September 9, 2003 The NCUA Board has continued the current ceiling through March 8, 2005. 68FR46439 (txt) 68FR46439 (pdf) 8/6/03

  • Weekly Reserve Position Data Released

    Treasury has released the U.S. International reserve assets data for the week ending August 1, 2003. International Reserve Position 8/6/03

  • Bogus IDs Cases Settled

    The FTC has announced the settlement of the cases against two companies who were marketing fake international driver's permits. The firms claimed the IDPs, which were marketed on a Web site, were valid as driver's licenses in all states and also would serve as government issued photo identification. FTC PR   Settlement Order 8/6/03

  • Advance Fee Loan Operation Shut Down

    The FTC has settled a complaint it filed against a New York loan office that used newspaper classified ads and an Internet Web site to induce consumers to pay an advance fee ranging from $50 to $300 to obtain a guaranteed loan of a desired amount regardless of the consumer.s credit history. The company falsely advertised a full refund if the consumer did not get the promised loan.  FTC PR  Settlement 8/6/03

  • Comments Requested on Applicability of State Law to National Banks

    The OCC proposes to amend parts 7 and 34 of their regulations to add provisions clarifying the applicability of state law to national banks. These provisions would identify types of state laws that are preempted, as well as types of state laws that generally are not preempted, in the context of national bank lending, deposit-taking, and other authorized activities. 68FR46119 (txt) 68FR46119 (pdf) 8/5/03

  • Comments Sought On Basel Accord ANPR

    The financial regulators have issued a joint ANPR and request for comments regarding the proposed implementation of the new Basel Capital Accord in the United States. Information regarding the ANPR was previously reported in BOL Top Stories on July 14.   FRB PR    OCC NR 2003-61    OTS 03-24    FDIC-PR-75-2003    FDIC FIL-62-2003    FDIC FIL-61-2003    ANPR    Draft Guidance 8/5/03

  • August 1 FHC List Released

    The FRB has released the August 1, 2003 list of bank holding companies that have become or have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act.  FHC List 8/5/03

  • Agencies Issue Sound Practices Paper

    The FRB, OCC and SEC have issued an "Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" which identifies sound practices to strengthen the resilience of critical U.S. financial markets.  Interagency Paper    OCC NR 2003-28 8/5/03

  • June Asset and Price Liability Tables Available

    The Asset and Price Liability Tables for June 30, 2003 have been released by OTS.  Asset -Liability Tables 8/5/03

  • FedImage Retrieval Pricing Options Change

    Effective September 1, 2003, FedImage Retrieval customers will have the option to change the way they pay for retrieving check images stored in our image archive. This new option allows customers to elect to pay for retrieval services through a per retrieval fee or through a new subscription retrieval service. The subscription retrieval service applies a fee across each image archived rather than paying on a per-retrieval basis. You can then retrieve images without an additional retrieval fee. The per-item fee varies depending on your monthly retrieval rates. Federal Reserve Financial Services Announcement 8/4/03

  • OCC Orders Bank to Refund Fees

    The Office of the Comptroller of the Currency has entered into a formal agreement with First Consumers National Bank, Beaverton, Oregon, that requires the Bank to refund various credit card fees to customers. The agreement requires the Bank to refund annual fees on Bank-issued credit cards charged to customers on or after a particular date when the Bank knew it would have to liquidate its credit card portfolio and it should have informed customers of that fact when they renewed or initiated their credit cards. The OCC asserted that the Bank’s failure to do inform customers was an unfair and deceptive practice. The amount of annual fee refunds is approximately $1.65 million. NR 2003-60 Formal Agreement 8/4/03

  • FDIC Warns of Entity Advertising Unlawfully

    The FDIC has issued an alert regarding Fidelity Financial Trust, an entity unlawfully advertising FDIC membership on its Internet Web site. The Web site for the entity indicates that its main office is located in Amsterdam, the Netherlands. The FDIC does not insure this entity nor any products or services that it offers. SA-45-2003. ) 8/4/03

  • 2002 HMDA Data Available<

    Data regarding mortgage lending transactions for the year 2002 at 7,771 financial institutions covered by the Home Mortgage Disclosure Act has now been made available online by the FFIEC. These data include disclosure statements for each financial institution, aggregate data for each metropolitan area, and nationwide summary statistics regarding lending patterns. FFIEC Press Release. (Includes links to Tables) 8/4/03

  • FCRA-Related Changes in Works?

    Secretary of the Treasury John Snow testified before the Senate Banking Committee on strengthening the Fair Credit Reporting Act. Among the proposals being considered are free credit reports upon request; a National Security Alert System; a system for having bank regulators watch for red flags indicative of fraud; a prohibition on the sale or transfer of ID theft debt; and giving FTC the authority to adopt rules requiring adverse action notices to be given when an applicant's credit score results in their being offered less favorable rates. Treasury Press Release 8/4/03

  • CRA Data Available on Small Biz and Farm Lending

    The FFIEC announced that the 2002 data is now available on small business, small farm, and community development lending reported by commercial banks and thrifts. The 2002 CRA data reflect originations and purchases of small business, small farm, and community development loans from 1,986 institutions, including 1,495 commercial banks and 491 savings associations. FFIEC Press Release 8/4/03

  • OCC Proposes Predatory Lending Rule

    The OCC is proposing proposed a new regulation that would clarify what types of state laws apply to national banks and would establish a strong anti-predatory lending standard. In a related action, the OCC announced its position that the Georgia Fair Lending Law does not apply to nationally chartered banks or to national bank operating subsidiaries.   Release 2003-59   Statement From The Comptroller    Georgia Preemption Order    NPRM    Q&As - Georgia (GFLA)    Q&As - NPRM    OCC Working Paper 8/1/03

  • FDIC & NCUA Issue Advance Fee Scam Alerts

    The FDIC and NCUA each put out an alert relating to fraudulent activities involving the use of official financial institution logos in newspaper advertisements. This practice is believed to affect as many as 50 financial institutions. Fraudulent ads for various types of loans are being used to dupe unwitting victims into believing they will be dealing with a legitimate financial institution. They are asked to pay an advance fee, and must, as part of the application process, reveal personal information, such as Social Security numbers, that could be used for ID theft. No loan proceeds are actually advanced, and the scammers escape with the advance fees.   SA-44-2003   NCUA Advisory

  • FDIC Call and Thrift Financial Reports

    Preliminary data for June 30, 2003, are now available. FDIC 8/1/03

06/30/2003

Top Stories for July 2003

  • Beneficial Ownership Report Filings System

    Searchable database of Beneficial Ownership Reports filed with FDIC, FRB and OCC.Beneficial Ownership Reports 7/31/03

  • July 2003 Beige Book Issued

    The FRB has published the July 21, 2003 issue of the Beige Book which contains summaries of the economic conditions in each of the twelve Federal Reserve Districts. Beige Book 7/31/03

  • Executive Order Adds SDNs

    The President has issued an Executive Order with respect to Burma (Myanmar) that adds four new entries to the SDN list, blocks property of the government of Burma, and prohibits certain transactions. Information regarding the Executive Order has been placed on the BOL OFAC page. 7/30/03

  • OCC Issues Advisory Letter

    The OCC has issued Advisory Letter 2003-6 to inform national banks of the withdrawal by FinCEN of Advisory Issue 27, regarding St. Vincent and the Grenadines. As a result, enhanced scrutiny with respect to transactions involving St. Vincent and the Grenadines is no longer necessary. The FinCEN action was previously reported on July 3, 2003 in BOL Top Stories. 7/30/03

  • Regulators Testify Regarding FCRA

    Representatives of the FRB, FDIC and FTC all testified before the Senate Committee on Banking, Housing, and Urban Affairs regarding their agencies respective roles under FCRA.FRB TestimonyFDIC TestimonyFTC Testimony 7/30/03

  • July Financial Holding Company List

    The FRB has issued the July list of bank holding companies that have elected to become financial holding companies or be treated as financial holding companies.FRB FHC List 7/30/03

  • U. S. Reserve Assets Increase

    Treasury has released the U.S. reserve assets data for the week ending July 25, 2003. U.S. reserve assets totaled $81,757 million as of the end of that week, compared to $80,950 million as of the end of the prior week.International Reserve Position 7/30/03

  • Enron Mess Entangles Two FIs

    Following the review of transactions involving Enron Corporation, J.B. Morgan Chase & Company and Citigroup, Inc., along with their respective subsidiaries, have entered into separate written agreements with the Federal Reserve to strengthen their risk management practices. In related actions, Citigroup has entered into a written agreement with the OCC; J.P. Morgan Chase agreed to pay $135 million to settle SEC allegations that it helped Enron commit fraud; and Citigroup agreed to pay $120 million to settle SEC allegations that it helped Enron and Dynegy commit fraud.J. B. Morgan Chase Agreement    Citigroup FRB Agreement    Citigroup OCC Agreement   SEC Agreements 7/29/03

  • Interagency Electronic Filing System Announced

    The three major bank regulators have announced a new electronic filing system that will allow faster and easier submission and public retrieval of beneficial ownership reports filed by directors, officers, and principal shareholders of publicly traded institutions.FRB    OCC    FDIC FIL 7/29/03

  • OCC Quarterly Journal Released

    Read about the performance of commercial banks, peruse a collection of interpretative letters, see how bank supervision in the U. S. compares with other countries and more in the March 2003 issue of the OCC's Quarterly Journal, Volume 22,No.1. OCC Quarterly Journal 7/29/03

  • Counterfeit Cashier's Checks Special Alert

    The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on Perkins State Bank, Williston, Florida. The counterfeit checks have the institution's correct routing number, but do not use the correct account number. Information regarding the checks and contact information has been placed on the BOL Alerts & Counterfeits page. 7/29/03

  • DNC Registry Is a Hit

    As of July 28, 2003, 28.7 million telephone numbers were listed in the National Do Not Call Registry. As a side note, this shows the power of the Internet, 80% of the registrations were made online.FTC DNC Registry 7/29/03

  • NCUA Realignment Plan Released

    NCUA released its realignment plan which provides a timeline for the agency's transition from six regional offices to five and the relocation of one office.NCUA Realignment Plan 7/29/03

  • FRB Issues Primary Credit Supervisory Letter

    The FRB has issued supervisory letter SR-03-15 regarding the Interagency Advisory on the Use of the Federal Reserve's Primary Credit Program in Effective Liquidity Management recently issued by the FRB, FDIC, OCC, OTS, and NCUA. The release of the Advisory was previously reported BOL Top Stories on July 24, 2003. 7/28/03

  • Comptroller Says Change The Way We Combat Predatory Lending

    Comptroller Hawke in a presentation before the Federalist Society expressed concern that the current approach to fighting predatory lending has resulted in making it more difficult for creditworthy subprime borrowers to obtain credit. He suggested a better approach would be to focus regulatory enforcement powers on abusive lenders, most of which are outside of the traditional banking industry.Comptroller's Speech 7/25/03

  • Regulators Explain Differences in Capital and Accounting Standards

    The OCC, FRB, FDIC, and OTS have issued a joint annual report to Congress which describes the differences between the accounting and capital standards used by and among the agencies. This is the first joint annual report to be submitted by the agencies, previously they reported separately.Joint Annual Report 7/25/03

  • Unique Slogan Placed On Some Treasury Checks

    Treasury has announced that in an effort fight check fraud a unique slogan, "TAX RELIEF FOR AMERICA'S FAMILIES", is printed on the bottom of the 26.3 million Child Tax Credit Advance Payment checks which will be mailed to eligible taxpayers. In addition, it was noted that the stated amount of most of the checks will be a multiple of $400. The checks will also contain the standard security features of other Treasury checks.Child Tax Credit Checks 7/25/03

  • Two Canadian Entities Subject of Special Alert

    The FDIC has issued a Special Alert regarding two Canadian entities that may be conducting unauthorized banking activities in the United States and Canada. Financial institutions are instructed to view with extreme caution any proposed transactions involving Starlife Financial Limited, Toronto, Ontario and Allied Asset Management, Vancouver, British Columbia.FDIC SA-42-2003 7/25/03

  • Discount Window Interagency Guidance Issued

    The FRB, FDIC, OCC, OTS and NCUA have issued guidance on the appropriate use of the Federal Reserve's new primary credit discount window program in depository institutions' liquidity risk management and contingency planning. The guidance provides background on the discount window programs, including the new primary and secondary credit programs introduced in January, 2003.FRB    FDIC    FDIC FIL-59-2003    OCC    OTS   NCUA    Interagency Guidance 7/24/03

  • New Electronic Issue of Interpretations and Actions Available

    The OCC has placed online the July 2003 issue of Interpretations and Actions containing interpretative letters, corporate decisions, approvals, enforcement actions, and CRA performance evaluations.OCC Electronic Interpretations and Actions 7/24/03

  • Federal Thrifts Can Ignore New Jersey Law

    The OTS has determined that the recently enacted New Jersey Home Ownership Security Act is pre-empted by the federal Home Owners' Loan Act and OTS regulations. As a result, the state law does not apply to federal savings associations and their operating subsidiaries.OTS 03-22 7/24/03

  • Inflation Rate - Can It Drop Too Low

    In a presentation before the Economics Roundtable of the University of California, FRB Governor Bernanke discussed the views of the Federal Open Market Committee regarding the current rate of inflation. He noted that earlier this year the Committee for the first time indicated it was concerned that inflation might actually fall too low. He indicated that should the funds rate approach zero, the Committee is prepared to implement nontraditional monetary policy measures.Presentation 7/24/03

  • Comment Deadline Approaches

    The deadline for submitting a comment letter to Treasury regarding the proposal to require financial institutions to retain photocopies of the documents used to verify a customer's identity is July 31, 2003. Don't miss this opportunity to express your opinion on this important issue. For more information review this previously issued BOL Special Banker Briefing. 7/23/03

  • Risk Based Component Added to OCC Handbook

    The "Community Bank Supervision", a booklet in the OCC's Handbook series, has been revised to include risk-based consumer compliance and asset management information. The additions provide managers with more flexibility in determining the scope and timing of supervisory activities in addition to stressing the importance of evaluating and validating the audit and internal control functions.Community Bank Supervision Appendixes 7/23/03

  • FDIC Enforcement Actions Released

    Information regarding enforcement actions taken against fourteen banks and one individual in June, 2003 has been released by the FDIC. The actions included three cease and desist orders, two civil money penalties and four terminations of insurance. The largest civil money penalty assessed was $16,400.FDIC Enforcement Actions 7/23/03

  • 2003 Income Data Added to CRA/HMDA Software

    The FFIEC has announced CRA/HMDA date entry software containing 2003 income data is now available for download. FFIEC CRA/HMDA Software 7/23/03

  • Special Alerts Regarding Counterfeit and Stolen Checks

    The FDIC has issued two Special Alerts regarding five official checks stolen from the RBC Centura Bank, Rocky Mount, North Carolina; counterfeit official checks drawn on the Winchester Branch of Farmers State Bank, Pittsfield, Illinois; and counterfeit cashier's checks drawn on the San Francisco Branch of Northern Trust Bank, National Association, Phoenix, Arizona; and EverTrust Bank, Everett, Washington. Information regarding the counterfeit and stolen items has been placed on the BOL Alerts & Counterfeits page. 7/23/03

  • International Reserve Position Declines

    The Treasury Department has released U.S. reserve assets data for the weeks ending July 4, 11, and 18, 2003. The U.S. reserve assets totaled $80,950 million as of the week of July 18, 2003, compared to $81,438 million as of the end of the prior week.International Reserve Position 7-47-11 7-18 7/23/03

  • FRB Publishes July Working Papers

    The FRB has published the July edition of the working papers in the Finance and Economic Discussion Series. Topics include: Tunnels and Reserves in Monetary Policy Implementation; Declining Required Reserves, Funds Rate Volatility, and Open Market Operations; Inventory Dynamics and Business Cycles: What Has Changed?; and What Did the Credit Market Expect of Argentina Default? Evidence from Default Swap Data.
    Tunnels and Reserves   Declining Required Reserves    Inventory Dynamics    What Did the Credit    7/23/03

  • Seven Banks Receive Outstanding CRA Rating

    The OCC has released the CRA performance evaluations for eighty national banks. Seven of the banks were rated outstanding and seventy-three received a satisfactory rating. OCC CRA 7/22/03

  • Finance Companies Owned and Managed Receivables

    The FRB has issued the G.20 owned and managed receivables report for May 2003. FRB G.20 7/22/03

  • OFAC Issues Civil Penalties Against Two Banks

    The weekly release by OFAC of Civil Penalties Enforcement Information included two banks; one cited for violation of the OFAC Sanction Program regarding Cuba and the other for violations of both the Iran and the Kosovo Programs. The civil penalties ranged from $250 to $9,725.OFAC Civil Penalties 7/21/03

  • Median Interest Rate Sensitivity Stable

    The OTS has released the first quarter 2003 issue of The Quarterly Review of Interest Rate Risk. The median thrift sensitivity improved slightly to 91 basis points from 93 basis points in December while the yield curve steepened.Interest Rate Risk Review 7/21/03

  • SAR Filing Tips

    FinCEN has added a new Q & A to the Regulatory FAQs which lists resources available to aid SAR filers. The information includes instructions for filing the various SAR forms and guideance on when to file a SAR.Q & A 7/18/03

  • Investment Schemes Use Altered Federal Reserve Notes

    The Federal Reserve has issued a Supervisory Letter regarding bogus investment schemes that utilize altered Federal Reserve Notes. The altered notes are in face amounts of $50 million or some other astronomically large amount, but some investors are still taken in. You will want to alert your investment officers and your customers about these schemes.FR SR 03-14 7/18/03

  • OCC States Accounting Views

    The OCC has released the June 2003 edition of its Bank Accounting Advisory Series which conveys the OCC's views on various accounting topics. Advisory Series 7/18/03

  • OTS Issues Interest Rate Projections

    OTS has issued its second quarter 2003 interest rate projections for capital plans.OTS 7/18/03

  • Eight Enforcement Actions Announced by OCC

    The OCC has announced eight enforcement actions involving six national banks and two individuals. The actions include cease and desist orders, a civil money penalty, formal agreements and removal actions.OCC Enforcement Actions 7/17/03

  • HOEPA APR Reference Rates for August Released

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in August will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you use the yield in effect on the 15th of the month that precedes the month you received the application. H.15 Daily RatesH.15 Weekly Rates 7/17/03

  • USA PATRIOT Act Implementation Reviewed

    The actions of Treasury to implement provisions of the USA PATRIOT Act were detailed in a presentation by Deputy Assistant Dawson to the Bankers' Association for Finance and Trade. He noted that efforts have been taken to minimize the compliance burden on financial institutions regarding Section 314 information requests. The majority of the requests submitted have been related to the investigation of terrorist financing cases. He also remarked that the joint rule issued by bank regulators regarding Section 326 was one of the largest, most complicated joint rules ever issued. Remarks 7/17/03

  • Industrial Output Declines in Second Quarter

    The G.17 Second Quarter 2003 Industrial Production and Capacity Utilization report has been released by the Federal Reserve. Despite the recent gains, industrial output decreased at an annual rate of 3.2 percent in the second quarter. G.17 Report 7/17/03

  • SEC Publishes Proxy Process Review

    The SEC has published a report of an internal review of its rules and regulations regarding the nomination and election of directors. The report notes the need to improve the existing proxy process and recommends action in two areas: improved disclosure and improved shareholder access to the director nomination process. A summary of public comments received on the subject, including those received from the American Bankers Association, was also released.SEC ReportSummary of Comments 7/16/03

  • FOMC to be Accommodative According to Greenspan

    Chairman Greenspan presented the Federal Reserve's semiannual Monetary Policy Report to Congress. He noted the Federal Open Market Committee is prepared to maintain a highly accommodative policy stance as long as necessary to promote economic performance. Improvements in measures of default risk, a decline in actual defaults, and a moderation in the pace of debt-rating downgrades have prompted a marked narrowing of credit spreads and credit default swap premiums. As a result, banks remain well-capitalized and willing lenders. TestimonyMonetary Policy Report PDF ASCII 7/16/03

  • State Profiles Published by FDIC

    The FDIC has published the Summer 2003 quarterly analysis of state economic and banking trends and aggregate financial data covering insured institutions in all 50 states, Puerto Rico and the U.S. Virgin Islands.State Profiles 7/16/03

  • International Finance Discussion Papers Released

    The FRB has released three International Finance Discussion Papers. Titles include: Loans to Japanese Borrowers, What Happens After A Technology Shock?, and IT Investment and Hicks' Composite-Good Theorem: The U.S. Experience.Loans; Asbtract    Full Report    What Happens; Abstract    Full Report    Hick's Composite Abstract    Full Report 7/16/03

  • Cost of Funds Reports Issued

    OTS has issued the July 15, 2003 and the historical national average cost of funds ratio to OTS regulated, SAIF - insured institutions reports.July reportHistorical report 7/16/03

  • Financial Holding Company Election Released

    The FRB has released the July list of those bank holding companies that have elected to become or be treated as financial holding companies for Banking Holding Company purposes. FRB Release 7/15/03

  • Societe Generale Assessed $11,000 by OFAC

    The New York City office of Societe Generale was the only financial institution listed by OFAC on its weekly release of Civil Penalties Enforcement Information. A funds transfer in 2001, which violated the Libya Sanction Program, resulted in an $11,000 assessment.OFAC Enforcement Information 7/14/03

  • Regulators Seek Comments on Basel Accord and Guidance

    The FRB, OCC, OTS and FDIC have issued an interagency advance notice of proposed rulemaking seeking public comment on the implementation of the New Basel Capital Accord in the United States. Comments are also sought on two drafts of interagency supervisory guidance regarding internal-ratings based systems for corporate credits and approaches for measuring operational risk. FRB PR    FRB Memorandum    OCC NR    OCC Notice    OCC Corporate IRB Guidance    OCC Operational Risk Guidance 7/14/03

  • OTS To Hold Financial Management Seminars

    The OTS will host five financial management seminars during the months of July and August in San Francisco, Dallas, Atlanta, Newark, and Chicago. The program will be of interest to auditors and financial managers with responsibility for accounting or financial reporting, risk management and internal rate risk analysis. Agenda Online Registration 7/11/03

  • FDIC Issues Letter to Stakeholders

    The FDIC has issued its fifth letter to stakeholders which lists priorities and activities for the second quarter of 2003.FDIC FIL-58-2003 Letter 7/11/03

  • Korean Version of Money Smart Program Available

    The FDIC has released a Korean language version of the Money Smart adult financial education curriculum. FDIC PR 7/11/03

  • Credit Unions Seek Latino Customers

    Participants in a NCUA workshop were urged to market their services to the Latino community. The acceptance of Matricula Consular and other foreign government cards as valid IDs and the providing of extra seating and activities for children were among the ideas shared at the workshop. NCUA NR 7/11/03

  • Submit Your 2003 Summary of Deposits Report Online

    A new electronic filing option is now available for FDIC-insured institutions that submit paper SOD surveys. A link to the online filing form has been posted on the FDIC website. You must use your User ID and PIN listed on the paper SOD form you received from the FDIC. File SOD Online 7/10/03

  • Treasury Proposes FCRA Amendments

    Treasury Secretary Snow has proposed that the Fair Credit Reporting Act be amended to direct the FTC and bank regulators to make it easier for consumers to say no to unsolicited credit offers. In testimony regarding the renewal of FCRA before the House Committee on Financial Services, he also presented examples of ways FCRA helps fight identity theft. Testimony 7/10/03

  • Retention of ID Photocopies Subject of OTS Transmittal

    The OTS has issued Transmittal TR-320 concerning the request by Treasury for comments regarding the retention of photocopies of identification documents utilized by institutions to verify identity pursuant to Section 326 of the USA PATRIOT Act. The comment notice was published in the Federal Register and previously reported in Top Stories on July 1, 2003. Notice 7/10/03

  • Special Alert Regarding Counterfeit Checks

    The FDIC has issued a Special Alert regarding counterfeit cashier's checks drawn on the Long Beach, California, branch of California Bank & Trust, San Diego, California. Information regarding the counterfeit items has been placed on the BOL Alerts & Counterfeits page. 7/10/03

  • FTC Complaint Names Electronic Payment Processor

    The FTC has filed a complaint in the U.S. District Court for the Western District of Texas charging Electronic Financial Group, Inc. (EFG) and its principals with providing assistance to fraudulent telemarketers seeking to drain funds from consumers' checking accounts. The defendants are charged with violating the law by processing ACH transactions for numerous fraudulent telemarketers and by engaging in the deceptive marketing of their own advance-fee debit cards.FTC Release 7/10/03

  • International Reserves Decline Slightly

    Treasury Department has released the U.S. reserve assets data for week ending July 4, 2003. U.S. reserve assets totaled $81,112 million, compared to $81,453 million as of the end of the prior week.International Reserve Position 7/10/03

  • Operation Cornerstone for Financial Investigations

    Department of Homeland Security Director Tom Ridge made several announcements of interest to the banking industry. DHS is launching Operation Cornerstone, a new financial investigations program that will identify vulnerabilities in financial systems through which criminals launder their illicit proceeds, bring criminals to justice and work to eliminate the vulnerabilities. The Bureau of Immigration and Customs Enforcement will run it and will share information learned from these investigations with bankers to eliminate industry-wide security gaps that could be exploited by money launderers and other criminal organizations. Plus, the Secret Service is expanding Electronic Crimes Task Forces to Cleveland, Houston, Dallas and Columbia, South Carolina. DHS Press Release Press Kit Details 7/9/03

  • 2004 CRA File Formats and Edits Published

    The FFIEC has issued the file formats to be used when sending 2004 Community Reinvestment Act data to your regulator via diskette, CD-ROM, e-mail or cartridge tape. The CRA edits are modified each year to include new data fields and enhance data quality.File Formats Edits 7/9/03

  • Two More to Look Out For

    Be on the watch for counterfeit cashier's checks drawn on Wilson State Bank, Wilson, Texas, and counterfeit official checks drawn on International Bank of Commerce, Laredo, Texas. Information regarding these counterfeit items and more are found on our Alerts & Counterfeits page. 7/9/03

  • May Consumer Credit Report Shows Moderate Gains

    The FRB has released the G.19 Consumer Credit Report for May 2003. In May, both revolving and non-revolving credit posted moderate gains. Consumer credit rose at an annual rate of 5 percent in May, following a 5-1/2 percent increase in April.FRB G.19 May 2003 7/9/03

  • Contact OFAC Online

    You can avoid talking to voice mail by sending your questions to OFAC electronically. Just complete the online form on the OFAC website to submit questions or comments regarding "in process" wire-transfers. As soon as possible, you will be contacted concerning your request. Note, inquiries regarding other subjects must still be submitted by phone or mail. Information regarding this new service is posted on our OFAC page. 7/8/03

  • HMDA HELP Page Announced

    The St. Louis FRB has created a new HMDA page which is a fabulous resource for information about the recent HMDA changes that will take effect January 1, 2004. The new page features information which supplements the existing HMDA data available on the FFIEC site. The new page has a Frequency Asked Questions section along with LAR forms, FFIEC software and practical compliance tips. We added the link to this new resource under the HMDA category on the BOL Launch Pad. Just click on HMDA Help Page. 7/8/03

  • New SDNs Added By OFAC

    Three new individuals have been added by OFAC as SDNs. They have also been included on the listing of BALKANS entries. Information regarding the new listings has been placed on the BOL OFAC page. 7/8/03

  • NCUA Share Insurance Estimator Now Online

    Credit Union members can now estimate the amount of insurance protection provided by the National Credit Union Share Insurance Fund by using the Estimator is found on NCUA's website.NCUA PR Insurance Estimator 7/8/03

  • Community Reinvestment Act Ratings Released

    The FDIC has issued the July 2003 list of state nonmember banks evaluated for compliance with the Community Reinvestment Act and the evaluation ratings for the respective institutions.FDIC CRA List 7/7/03

  • Instructions for Reporting Trust Preferred Securities

    The FRB has issued a Supervisory Letter that provides instructions on how trust preferred securities are to be reported on bank holding companies' financial statements. The Federal Reserve has become aware that Financial Accounting Standards Board Interpretation No. 46 (FIN 46) may have implications for how trust preferred securities are reported. Until changes are made to form FR Y-9C, the current instructions regarding the reporting of trust preferred securities on Schedule HC-R should continue to be followed.Supervisory Letter 03-13 7/7/03

  • FDIC Issues New SAR Form Reminder

    The FDIC has issued FIL-56-2003 regarding the July 1 utilization date of the new SAR form. The release of the new form by FinCEN on May 2, 2003 and a BOL reminder notice on June 24, 2003 were previously posted on BOL Top Stories.7/7/03

  • Counterfeit Checks Alert

    Instruct your tellers to watch out for cashier's checks drawn on the Los Angeles branch of OneUnited Bank, Boston, Massachusetts and cashier's checks drawn on 1st National Bank & Trust, Bradenton, Florida. They may be counterfeit. Information regarding the items has been placed on the BOL Alerts & Counterfeits page. 7/7/03

  • Special Alert - Unauthorized Institutions

    The FDIC has issued a Special Alert regarding three institutions that may be operating unauthorized banking operations in the United States and Canada. The entities are Golden Trust Bank, Oshawa, Ontario; National Bank, Etobicoke, Ontario; and Banquedenationale Bank, Hong Kong. Any information about these entities should be forwarded to the FDIC's Special Activities Section or forwarded electronically to alert@fdic.gov.FDIC SA-36-2003 7/7/03

  • March 2003 UMPR Available Online

    The FFIEC has placed the March 31, 2003 Uniform Bank Performance Report (UBPR) online.FFIEC PR 7/7/03

  • Treasury to Issue Depositary Compensation Securities

    The Treasury Department has announced that it will in mid-July begin issuing non-marketable securities, called Depositary Compensation Securities, to compensate those financial institutions who serve as financial agents of the United States for essential banking services, including the collection and deposit of all Treasury receipts.Treasury PR 7/7/03

  • NCUA Begins Review of Regulatory Burdens

    The NCUA Board has published a notice in the Federal Register of the beginning of a review of its regulations to reduce burdens imposed on federally-insured credit unions. The notice is the first in a series and regards "Applications and Reporting" and "Powers and Activities".68FR39863 (txt) 68FR39863 (pdf) 7/7/03

  • Proposal to Clarify NCUA Loan Participation Rule

    NCUA has published in the Federal Resister a notice of a proposal to update and clarify the definitions of the terms, "credit union organization'" and `"financial organization", as used in NCUA's loan participation rule. 68FR39866 (txt) 68FR39866 (pdf) 7/7/03

  • Deceptive Claims of FDIC Insurance Coverage

    The FDIC has issued a Special Alert concerning two entities that are falsely representing on their Web sites to potential customers that the entities are members of the FDIC. The two entities are Citi Trust Bank, Grand Cayman, Cayman Islands, and Banquedenationale Bank, Hong Kong, a Special Administrative Region of China.FDIC Special Alert SA-37-2003 7/7/03

  • Share Insurance Rule Amendment Proposed by NCUA

    The notice of a proposal to amend its share insurance rules has been published in the Federal Register by NCUA. The amendments simplify and clarify the rules regarding how revocable trust accounts are established and insured; provide continuation of coverage following the death of a member; provide separate coverage after the merger of insured credit unions for limited periods of time; and clarify that there is coverage for Coverdell Education Savings Accounts, formerly Education IRAs.68FR39868 (txt) 68FR39868 (pdf)7/7/03

  • Census and HUD Data Used for CRA Released

    The OCC has issued a bulletin regarding the release of the 2000 U.S. Census and the 2003 HUD estimated median family incomes for MSA and non-MSA portions of each state. The annual HUD data are used to determine borrower income levels in Community Reinvestment Act (CRA) performance evaluations.OCC Bulletin Census and HUD Median Family Income Data 7/3/03

  • Payday Lending Examination Guidance Issued

    The FDIC has issued a guidance regarding the examination of the payday lending activities of FDIC supervised institutions. Special examination procedures will be utilized to verify and monitor an institution's performance. The guidance also instructs examiners to include in Community Reinvestment Act public evaluations an expansive discussion of the payday lending practices and strategies of the institutions. Guidelines for Payday Lending 7/3/03

  • FinCEN Withdrawals AML Advisory

    FinCEN has announced the withdrawal of Advisory 27 regarding St. Vincent and the Grenadines. Due the adoption of new anti-money laundering laws, FinCEN has determined that the enhanced scrutiny of transactions involving St. Vincent and the Grenadines is no longer necessary. The withdrawal of the Advisory does not relieve institutions of their pre-existing and on-going obligation to report suspicious activity.FinCEN Withdrawal 7/3/03

  • FRB Issues Final Rule to Amend Reg Y

    The amendment would permit bank holding companies to (i) take and make delivery of title to commodities underlying commodity derivative contracts on an instantaneous, pass-through basis; and (ii) enter into certain commodity derivative contracts that do not require cash settlement or specifically provide for assignment, termination, or offset prior to delivery. 68FR39807 (txt) 68FR39807 (pdf) 7/3/03

  • 2004 HMDA File Formats and Edits Released

    The FFIEC has posted the final 2004 HMDA File Formats and Edits online. The File Formats describe the required electronic format in which all institutions must submit their data. The Edits provide an explanation of errors that can result from the submission of invalid data.File Formats Edits 7/3/03

  • OCC Capital and Dividends Manual Revised

    The OCC has updated and placed online its Capital and Dividends booklet, which is part of the Comptroller's Licensing Manual series. The revision, which replaces the 1998 version, incorporates recent policy and procedure changes regarding blank check preferred stock, innovative and hybrid capital instruments, and issuance of no par stock.OCC Capital and Dividends Manual 7/3/03

  • Comments Sought on Insurance of Living Trust Accounts

    The FDIC has issued a FIL which requests public comments on two proposed alternative rules to clarify and simplify the regulations on the insurance coverage of living trust accounts. The first alternative is to provide coverage up to $100,000 per qualifying beneficiary named in the living trust, regardless of contingencies in the trust. The second alternative is to create a separate category of coverage for living trust accounts and to insure such accounts up to $100,000 per owner of the account. Comments on the proposals are due by August 29, 2003. The proposals were published in the Federal Register on June 30, 2003 and previously reported in BOL Top Stories.FDIC FIL-54-2003   Notice HTML    PDF 7/3/03

  • Homeownership Counseling Examination Procedures

    The OCC has issued a bulletin announcing the FFIEC Homeownership Counseling Examination Procedures. The examination objectives and procedures are described along with an examination checklist. The procedures are effective immediately. OCC Bulletin 2003-29 Exam Procedures 7/2/03

  • Spanish Version ARM and Home Equity Brochures

    The FRB has published Spanish language versions of two of its most popular consumer brochures. The Consumer Handbook on Adjustable Rate Mortgages and What You Should Know About Home Equity Lines of Credit are available in both print and electronic form.Spanish ARM Spanish Home Equity 7/2/03

  • FRB Web Site Gets New Look

    The FRB is in the process of reorganizing the categories on its Web site with the goal of making it more informative and easier to use. It even provides a "What's Changed " page to walk you through the new sections.FRB Home Page FRB "What's Changed" 7/2/03

  • Enhanced Cash Ordering Options Now Online

    Take advantage of a new facility from Federal Reserve Financial Services that lets you submit batch transaction files via FedLine for the Web. It offers an efficient alternative to entering individual orders and a convenient way to generate the transaction file. Contact your local FRB Cash Representative for instructions. FRB Services FRB Cash Representative List 7/2/03

  • International Reserve Position Declines

    The Treasury Department has released U.S. reserve assets data for the week ending June 27, 2003. U.S. reserve assets totaled $81,453 million as of the end of the week, compared to $82,350 million as of the end of the prior week.Treasury Release 7/2/03

  • Agricultural Finance Databook Released

    The FRB has released the E.15 Agricultural Finance Databook for March and June 2003. The databook contains the amount and characteristics of farm loans made by commercial banks, selected statistics from the quarterly reports of condition of commercial banks and Reserve Bank surveys of farm credit conditions and farm land values.FRB E.15 7/2/03

  • June Foreign Exchange Rates Released

    The G.5 June 2003 foreign exchange rates report has been released by the FRB.It shows the monthly average rates of exchange based on daily noon buying rates for cable transfers in New York City. FRB G.5 7/2/03

  • BancorpSouth Joins Money Smart

    The FDIC announced that BancorpSouth has joined the Money Smart Alliance Program. As a partner in the program, BancorpSouth will reach low- and moderate-income individuals in Alabama, Arkansas, Louisiana, Mississippi, Tennessee and Texas. It will provide staff for training, classroom space and grants to community-based partners who teach the Money Smart curriculum to local citizens.FDIC Money Smart 7/2/03

  • Treasury Seeks Comments on Retaining Copies of CIP ID

    Here is your opportunity to submit comments regarding the Section 326 final rule. They would like to know: 1.) Whether and under what circumstances financial institutions should be required to retain photocopies of identification documents relied on to verify customer identity; and, whether there are situations when the regulations should preclude reliance on certain forms of foreign government-issued identification to verify customer identity. 68FR39039 (txt) 68FR39039 (pdf) 7/1/03

  • FCRA Improvements Include Identity Theft Alert System

    Secretary Snow has endorsed the proposed renewal and improvement of the Fair Credit Reporting Act by Congress. A national security alert system would be created to notify banks and merchants of consumers who have been victimized or are in danger of being victimized by identity theft. He also noted the national uniform standards of the Act serve consumer interests by expanding the opportunity for every consumer to access credit and financial services in addition to helping to ensure that the consumer's personal information is more accurate and secure. Speech 7/1/03

  • OFAC Amends Final Rule to Reflect OFAC List Changes

    OFAC has issued an amended Final Rule which reflects the addition or removal of the names of individuals and entities on the OFAC List. The Final Rule, which is amended periodically, reflects the complete alphabetical listing of Blocked Persons, SDNs, SDTs, SDGTs, FTOs and SDNTs, as of June 9, 2003.Amended Final Rule 7/1/03

  • Final Rule Issued on Title Transfer Pass-Through of Commodities

    The FRB announced approval of a final rule modifying Regulation Y. Bank holding companies engaged in permissible derivatives activities will be allowed to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis. The effective date of the final rule is August 4, 2003 Final Rule 7/1/03

05/31/2003

Top Stories for June 2003

  • Iraqi License Subject of Interim Final Rule

    OFAC has published an interim final rule amending the Iraqi Sanctions Regulations, along with a Request for Comments. The amendment reflects the general license issued by OFAC on May 23, 2003 which effectively removed, with four exceptions, the economic sanctions regarding Iraq. The effective date of the interim rule is May 23, 2003. The comment period will close on August 26, 2003. Information regarding the interim final rule and the general license is posted on the BOL OFAC page. 6/30/03

  • June OCC Actions Online

    The actions taken by the OCC in June regarding interpretative letters, application approvals, enforcement actions and CRA evaluations have been posted online.June OCC Actions 6/30/03

  • April G.20 Owned and Managed Receivables Report

    The FRB has released the G.20 financial companies owned and managed receivables report for April 2003. April G.20 6/30/03

  • Proposed Rule from FDIC on Living Trust Accounts

    FDIC is proposing to clarify and simplify the regulations on the deposit insurance coverage of living trust accounts. 68FR38645 (txt) 68FR38645 (pdf) 6/30/03

  • OCC Bulletin - Securities Disclosures

    The OCC has issued Bulletin 2003-28 regarding proposed changes to the securities offering disclosure rules for national banks. The notice was previously announced in BOL Top Stories on May 22, 2003. 6/27/03

  • July 1 Effective Date for California Mandatory Disclosure of Computer Intrusions Law

    Beginning July 1, any person or business that conducts business in California and owns or licenses computerized data is required to disclose to all customers who are California residents any breach of the security of their unencrypted personal information.The disclosure to customers must be made "as soon as possible" after the discovery of a breach of information security. A delay in disclosure is allowed only if a law enforcement agency determines the disclosure would hinder a criminal investigation. Any customer who was injured by the failure to disclose can file a civil suit to recover damages. The legislation, which is the first of its kind, may become a model that will be adopted by other states. BOL previously posted an article regarding the subject, Computer Intrusion Disclosures Mandated by New Law, from BOL Guru, Sam Ott. Click here to read it. 6/27/03

  • Using Clean Money For Lethal Purposes

    Learn how terrorists use the international banking system and apparently innocent accounts to finance their activities. Read the testimony of Treasury General Counsel Aufhauser before the Senate Subcommittee on Terrorism, Technology and Homeland Security.Testimony 6/27/03

  • Debt Ceiling May Adversely Impact Capital Markets

    The debt ceiling and its effect on the standing of the US in the capital markets was discussed in a presentation to the Bond Market Association by Treasury Assistant Secretary Roseboro.Speech 6/27/03

  • Immediate Reduction in Discount Rates Approved

    The FRB has approved actions by the Boards of Directors of the Federal Reserve Banks of Philadelphia, Cleveland, Richmond, Atlanta, Chicago, Minneapolis, and Dallas to decrease the discount rate at the banks from 2-1/4 percent to 2 percent, effective immediately.FRB NR 6/27/03

  • Minority-Owned Banks Quarterly Report

    The FRB has released the first quarter report regarding the banks that participate in Treasury's Minority Bank Deposit Program.Minority-Owned Banks Report PDF txt 6/27/03

  • Coping With the Low Interest Rate Environment

    The challenges facing management and the long range consequences of the decisions being made in today's interest environment were examined by FRB Governor Olson at an Economic Growth Outreach meeting.Speech 6/27/03

  • OTS Issues First Quarter Interest Exposure and CMR Reports

    The OTS has released the Interest Rate Exposure and CMR reports for the first quarter 2003. Click here and scroll down to the Data & Research section of the page to download the various reports. 6/27/03

  • Country Exposure Data Online

    The FFIEC has posted the March 31, 2003 Country Exposure Statistical Release and the Country Exposure Information Report on its Web page.Statistical Release   Information Report 6/27/03

  • SAR Software Available Online

    FinCEN has made the SAR Software Version 5.0 for Windows available for download online. You will not be able to enter information into the program unless you have applied for a unique Transmittal Code Number from the Detroit Computing Center. Instructions on how to obtain a code number are also online. FinCEN SAR Software 6/26/03

  • CRA Evaluations Released For 16 National Banks

    The OCC has released the CRA evaluations for sixteen national banks. Three of the banks were rated outstanding and thirteen were satisfactory. None received either a needs to improve or substantial noncompliance rating. OCC NR 2003-52    CRA Evaluations 6/26/03

  • FFIEC Reporting Forms and UBPR Guide Updated

    FFIEC has updated the June 30 Reporting Forms 009 and 009a along with the UBPR User's Guide. Form 009    Form 009a     UBPR User's Guide  6/26/03

  • FRB Publishes Correction to Routing Symbols

    The FRB published a final rule in the Federal Register of May 28, 2003, that amended the Federal Reserve Bank and Federal Home Loan Bank routing information listed in appendix A of Regulation CC. The FRB omitted from this supplementary information two routing symbols that will be transferred from the Richmond head office to the Baltimore branch. The corrected list is printed in the federal register. 68FR37957 (txt) 68FR37957 (pdf)  6/26/03

  • 1% and 2% - You've Got to Be Kidding!

    Can you imagine what a banker in the '70s would have said if anyone had predicted that within 30 years the Fed Funds rate would be at 1% and the discount rate at 2%? Read about the considerations that helped the Federal Open Market Committee and the Board of Governors decide to lower the rates. FRB PR 6/26/03

  • Four Entities Named in Unauthorized Banking Alert

    The FDIC has issued an alert regarding the possibility that the following four entities may be conducting unauthorized banking activities in the U.S. and Canada: Apex Financial Group, Toronto, Ontario; Bonded Trust, Mississauga, Ontario; North American Standard Trust, Concord, Ontario; and Universal Trust Financial, Toronto, Ontario. Any information about these entities should be forwarded to the FDIC's Special Activities Section, 550 17th Street, NW, Room F-4040, Washington, DC 20429, or forwarded electronically to alert@fdic.gov. FDIC SA-34-2003 6/26/03

  • Banking Holding Company Elections Announced

    The FRB has released the June 20 report regarding bank holding companies that have elected to be treated as a financial holding company under the provisions of the Bank holding Company Act. FRB Financial Holding Company List 6/26/03

  • E.2 Survey Modified

    The FRB E.2 Survey of Terms of Business Lending has been changed to reflect the addition of a new item and the elimination of some previously reported items. Surveyed banks now report the date on which pricing and other terms of loans made under formal commitments became effective. A table has been added to present pricing and other summary statistics separately for loans having terms set during the survey week and loans having pricing terms set prior to the survey week. FRB E.2 6/26/03

  • "Deck of Cards" Added to SDN List

    OFAC has integrated into the OFAC SDN list the persons named on the Defense Department's 55 Person Watch List, better know as the Iraqi "deck of cards". As a result, some entries have been removed, some entries have been amended, and new IRAQ entries have been added. Learn about the changes on the BOL OFAC page. 6/25/03

  • Flood Act Violations Result in CMPs for Ohio and Colorado Banks

    The FRB has announced the issuance of civil money penalties against the Community First Bank & Trust, Celina, Ohio, and the Centennial Bank of the West, Fort Collins, Colorado, for alleged violations of the National Flood Insurance Act.Community First Order   Centennial Bank Order    Flood Dodging the BIG Wave Webinar Presented by BOL Learning Connect   6/25/03

  • OCC Issues New SAR Form Reminder

    The OCC has issued Bulletin 2003-27 regarding the July 1 utilization date of the new SAR form. The release of the new form by FinCEN on May 2, 2003 and a BOL reminder notice on June 24, 2003 were previously posted on BOL Top Stories. 6/25/03

  • Thirteen Enforcement Orders Announced

    The FDIC has released information regarding 13 enforcement orders that were issued in May. They include one cease-and-desist order, five removal-and-prohibition orders, five civil money penalty orders, one voluntary termination of insurance order, and one termination of insurance order.FDIC Enforcement Orders 6/25/03

  • 2003 CRA/HMDA Census Report and Geocoding Data Online

    The FFIEC has posted the 2003 Census Report and Geocoding data plus downloadable CRA/HMDA data entry software online. FFIEC Census Reports   FFIEC Geocoding   Software Download   6/25/03

  • HMDA Training for Lenders Announced

    The Federal Reserve System has released the schedule and locations of four training sessions to help lenders understand and implement the changes to Regulation C.Training Schedule HMDA - The Real Deal - What Bankers Want to Know, Part 1,   Part II Webinar Presented by BOL Learning Connect   6/25/03

  • July 1 Deadline for Service Provider Contract Provisions

    The Information Security Guidelines require that a financial institution have a contract with each of service providers who, in the course of providing services to the institution, has access to nonpublic personal information on customers. The written contractual provision must require the provider to implement and maintain appropriate measures designed to meet the objectives of the Information Security Guidelines.There was a grandfathering provision that applied to contracts entered into on or before March 5, 2001, but the grandfathering expires July 1. Stated another way: any contract you entered into with service providers before March 5, 2001 must be modified by July 1, 2003 to include contractual language that requires the provider to implement appropriate security measures to protect customer information.For purposes of the Information Security Guidelines, the term

    service provider means any person or entity that maintains, processes, or otherwise is permitted access to customer information through its provision of services directly to the financial institution.Guidelines Monitoring Service Provider Compliance   Need sample language for the contract provision? BOL Guru Karen Garrett contributed some a while back to Banker Tools. Click here to review it. 6/24/03

  • New SAR Form Takes Effect July 1

    Get ready to use the new form for reporting Suspicious Activity as of next Tuesday. You can find it on our BOL Banker Forms page (but don't use it until July 1!). 6/24/03

  • Commercial Loan Problems Analyzed

    The deterioration of key components of the commercial real estate market and its potential impact on loan portfolios is examined in the June23 edition of the FYI, an electronic FDIC bulletin which summarizes current information about the trends that are driving change in the banking industry.FDIC FYI    FDIC PR 6/24/03

  • Reducing Regulatory Paperwork

    You have the opportunity until September 15 to express your views on reducing the amount of paperwork required by federal government regulations. The Regulators are asking for comments regarding the following three categories of regulations: Applications and Reporting, Powers and Activities, and International Operations.FDIC FIL 53-2003    Federal Register Notice HTML    PDF 6/24/03

  • FDIC Compliance Examinations Revised

    The FDIC has announced that examiners conducting on-site compliance examinations beginning on or after June 30, 2003, will utilize a top-down, risk-focused approach which will include an in-depth evaluation of an institution's compliance management system. Read all about it in our new article, Can You Spell R-I-S-K?New FDIC Compliance Exam Procedures. 6/23/03

  • June 031 and 041 Reporting Forms Instructions

    The instructions for preparation of the June consolidated reports of condition and income have been posted online by the FFIEC.Instructions 6/23/03

  • Thrift Financial Report Instruction Manual

    The OTS Thrift Financial Report Instruction Manual is available online.Instruction Manual 6/23/03

  • Thrift CRA Ratings Released

    The CRA ratings for savings associations examined in May 2003 had been released by OTS.May CRA Ratings 6/23/03

  • Fictitious Internet Bank Alert

    The OCC has issued an unauthorized banking alert regarding a fictitious Internet bank operating under the name of Banquedenationale Bank, Inc. utilizing a web site which lists offices in New York City, London and Hong Kong. OCC Alert 6/23/03

  • Results of Basel II Regional Meetings

    Representative of seventy-five banking organizations have met with the FRB, OCC, and FDIC in a series of regional meetings to discuss the U.S. implementation of the proposed Basel II Accord. Review the discussion documents and a summary of the comments of the attendees.FRB Basel II Meetings 6/23/03

  • FRB June Working Papers and Bulletin Article Online

    The online June release of the FRB FEDS working papers contains following five topics: Minimum Wages, Labor Market Institutions, and Youth Employment: A Cross-National Analysis; The Recall and New Job Search of Laid-off Workers: A Bivariate Proportional Hazard Model with Unobserved Heterogeneity; Regime-Shifts, Risk Premiums in the Term Structure, and the Business Cycle; Wealth Effects and the Consumption of Leisure: Retirement Decisions During the Stock Market Boom of the 1990s; and Estimates of the Term Premium on Near-dated Federal Funds Futures Contracts. In addition, an article from the June FRB Bulletin, Profits and Balance Sheet Developments at U.S. Commercial Banks in 2002 is also available. FRB June Working Papers    FRB June Bulletin 6/23/03

  • Two Major Actions from FATF

    The Financial Action Task Force on Money Laundering, an independent International body of 31 member countries and governments (including the US), has revised its Forty Recommendations to combat money laundering. Some of the recommendations, as before, are aimed at governments, while others detail action that financial institutions should take. Among the major recommendations which are aimed at financial institutions are:

    • the expansion of the customer due diligence process for financial institutions;
    • enhanced measures for higher risk customers and transactions, including correspondentbanking and politically exposed persons;
    • the inclusion of key institutional measures, notably regarding international co-operation;
    • the improvement of transparency requirements through adequate and timely information onthe beneficial ownership of legal persons such as companies, or arrangements such as trusts;

    FATF is not a regulatory body per se and does not have direct enforcement authority. FATF studies money laundering issues, designates a list of countries which are deemed to not be cooperating to the extent believed desirable in terms of fighting money laundering (the NCCT list of Non-Cooperating Countries and Territories). Although FATF doesn't have direct regulatory jurisdiction, since the U.S. is a member of FATF and member nations basically pledge to follow the recommendations, we may see the new items reflected in future laws and regulations and it would be wise to become familiar with the recommendations to see what may be implemented by the U.S. and begin making desired adjustments to your AML program.Also, FATF removed St. Vincent and the Grenadines from its list of Non-Cooperative Countries and Territories. The countries remaining on the list are Cook Islands, Egypt, Guatemala, Indonesia, Myanmar, Nauru, Nigeria, Philippines and Ukraine. [Note: This is completely different from, and should not be confused with, the OFAC list of sanctioned countries.]FATF Press Release;   FATF's Forty Recommendations   06/20/03

  • OCC Issues Bulletin Regarding Routing Numbers

    The OCC has issued Bulletin 2003-26 regarding an earlier announcement by the FRB of a Final Rule amending Appendix A to Regulation CC. The effective date of the Final Rule is July 28, 2003. National banks with questions are directed to contact their supervisory office, the Compliance Division, or the Community and Consumer Law Division of the OCC. The FRB Final Rule was previously featured as a BOL Top Story on May 28. 6/20/03

  • Counterfeit Checks Alert

    Notify your tellers to watch out for cashier's checks issued by Central Florida State Bank, Belleview, Florida that are payable through Boston Safe Deposit & Trust Co., Boston, Massachusetts, and official checks drawn on Sun Federal Credit Union, Maumee, Ohio. They may be counterfeit. Information regarding the items has been placed on the BOL Alerts &Counterfeits page. 6/20/03

  • ID Theft and Victim Assistance

    The FTC is the federal government's central repository for identity theft complaints and provides victim assistance and consumer education programs. Learn what resources are available to aid your customers who may be victims. Review the testimony of the Director of the FTC's Bureau of Consumer Protection before the senate Committee on Banking, Housing, and Urban Affairs. Testimony 6/20/03

  • Basel I v. Basel II

    Learn the differences between Basel I and Basel II and the reasons the modifications included in Basel II are necessary from the testimony of FRB Vice Chairman Ferguson before the House Subcommittee on Financial Institutions and Consumer Credit. Testimony Table of Modifications 6/20/03

  • OCC Enforcement Actions

    Twenty-five Enforcement Actions have been announced by the OCC involving banks and individuals in the states of Colorado, Georgia, Montana, Nebraska, Texas, California, Florida, Minnesota, Missouri, North Carolina and Pennsylvania.OCC NR 2003-49 6/19/03

  • New Credit Card Scam Alert

    The IRS has issued an alert regarding a new credit card scam involving the payment of a tax credit. A taxpayer receives a telephone call from a person who promises to speed up the payment of the Advance Child Tax Credit checks. The catch is the taxpayer must agree to a $39.99 charge to a credit card. The credit card information is used to make unauthorized charges and possibly Identity Theft purposes.IRS NR 6/19/03

  • Fighting Financial Fraud - Information For Customers

    The FDIC Consumer News has devoted its entire Spring 2003 newsletter to ways your customers can fight financial fraud involving checks, credit cards, ATMs, the Internet and other bank products and services. Common scams are discussed along with fraud fighting tips and ways to detect ID theft. A quiz to test a customer's knowledge of financial fraud is also included. Ways you can share this information with your customers include statement stuffers, newsletters and on your Web site. FDIC Consumer News 6/19/03

  • Regulators Give Basel II Testimony

    Comptroller Hawke, FRB Vice Chairman Ferguson, and OTS Director Gilleran testified before the Senate Committee on Banking, Housing, and Urban Affairs regarding the final stages of public comment and review regarding the Basel II Accord.Hawke Testimony Ferguson Testimony Gilleran Testimony 6/19/03

  • FRB Statistical Releases

    The FRB has issued statistical releases regarding the Household Debt-Service Burden and the Structure and Share Data for U.S. Offices of Foreign Banks.Household Debt-Service Burden Structure and Share Data 6/19/03

  • FDIC 2003 Summer Outlook

    The FDIC has published the 2003 Summer Outlook which indicates that even though banks are experiencing record earnings, risk management challenges remain. Commercial real-estate portfolios are noted as one area that could develop future problems.FDIC PR FDIC 2003 Summer Outlook 6/19/03

  • BugBear.B Update

    As reported earlier on BOL, the virus contains a list of domain names for over 1,300 banks, but if your institution's name is not on the list you could still be infected.The virus can disable your anti-virus software, install a keystroke logging spyware program, and collect email addresses in addition to capturing sensitive information and emailing it to an outside party.The OCC has issued an Alert 2003-09 that urges all national banks to follow the steps contained in the FFIEC Information Technology Handbook to prevent the spread of the virus. In the event a national bank thinks it is the victim of BugBear.B, it should immediately contact its OCC portfolio manager, report the problem to law enforcement and file a SAR. 6/18/03

  • HOEPA APR Reference Rates for July Released

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in July will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, you normally use the yield in effect on the 15th of the month that precedes the month you received the application. Since June 15 is not a business day, for July calculations you use the yield on June 13, which is the business day immediately preceding the 15th. FRB Daily Rates FRB Weekly Rates 6/18/03

  • June Call Report FIL Issued

    The FDIC has issued a FIL containing the instructions and materials for preparation of the June 30, 2003, Call Reports which must be filed by July 30, 2003. In this Call Report, banks are required to report the number and amount currently outstanding of loans to small businesses and small farms (Schedule RC-C, part II) and the number of deposit accounts of $100,000 or less (Schedule RC-O, Memorandum item 1.a.(2)). No extensions will be granted. FIL-51-2003 Instructions 6/18/03

  • EINs Available Online - No Waiting

    Tired of waiting for your business customers to be issued an EIN? The IRS now lets a business obtain an EIN directly from the IRS Web site. Upon the completion of an online application, a permanent EIN is issued which can be used immediately. IRS NR Online Application 6/18/03

  • Terrorism Insurance Available to Commercial Customers

    The Terrorism Risk Insurance Act of 2002 requires that all insurance companies that offer commercial property and casualty insurance must also offer terror insurance as part of their property and casualty policies. Learn how this shared Federal and private coverage for commercial property and casualty losses resulting from acts of terror works from the comments of Treasury Deputy Assistant Secretary Zerzan at the Homeland Education Resource Organization Conference.Speech 6/18/03

  • Economic Growth Spurt Predicted

    The economy will pick-up before year-end resulting in annualized growth rates near 3.5%. Read the comments of Treasury Secretary John Snow at Money Magazine's Money Summit to learn why he made this optimistic prediction.Speech 6/18/03

  • $39 Million Contract Awarded to Modernize Bank Data Collection

    Bank regulators announced the award of a ten-year $39 million dollar contract to a development team headed by Unisys Corporation to create a financial data collection process that utilizes the Internet. The program, which will be phased in through 2004, will have a central data repository, which will be accessible by banking regulators, financial institutions, and the public. FRB PR Comments of FDIC Chairman Powell OCC NR 6/18/03

  • FDIC G.17 Report released

    The FDIC has released the G.17 Industrial Production and Capacity Utilization report.FDIC G.17 6/18/03

  • Financial Holding Company Election List

    The FRB has issued the June list of bank holding companies that have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act. Financial Holding Companies 6/18/03

  • Restructuring the FDIC

    Over the last year, four FDIC divisions have been merged into two and executive positions have been reduced by 20%. The staff has been realigned and more authority delegated reducing the time it takes to make decisions. In addition, a new performance-oriented staff compensation program that rewards achievement has been implemented. Read about these changes and more from FDIC Chairman Powell's remarks before the Council for Excellence in Government. Speech 6/18/03

  • FTC Improves Site?

    The FCT has redesigned its Web Site. We are sure that they intended for it to be improved, but we found it difficult to find some information. If you are looking for FCRA or FDCPA staff opinions for example, you must drill down through the new Formal Actions section. As quick alternative, use the BOL Launch Pad Fair Credit Reporting and Fair Debt Collection links.Fair Credit Reporting    Fair Debt Collection   FCT Web Site 6/18/03

  • Counterfeit and Stolen Checks Special Alerts

    The FDIC has announced that counterfeit cashier's checks drawn on Bank of the Southwest, Roswell, New Mexico and counterfeit treasurer's checks drawn on Border Trust Company, South China, Maine are currently in circulation. In addition, five official checks have been stolen from Bay State Saving Bank, Worcester, Massachusetts and may be in circulation. The information has been added to the BOL Alerts & Counterfeits page.
    6/17/03

  • Enforcement Order with Missouri Bank

    The FRB has announced the execution of a Written Agreement by and between Southern Commercial Bank, St. Louis, Missouri and the Federal Reserve Bank of St. Louis. Written Agreement
    6/17/03

  • FFIEC Form Updated

    The FFIEC has placed an updated June 2003 FFIEC 002 reporting form online.FFIEC Form 002
    6/17/03

  • Strengthening Weaknesses in Risk Management Practices

    Operational risk management may provide the answer to improving corporate governance in financial institutions according FRB Governor Bies. The breakdown of internal controls can lead to substantial losses. Learn what institutions can do mitigate operational risk to their corporate governance processes from her comments to Oregon and Idaho bankers.Speech
    6/17/03

  • Internet False Advertising Special Alert

    The FDIC has issued a special alert regarding the unlawfully advertising of FDIC membership on a Web site by Trust Meridien Bank, also known as Meridien Trust Bank, Douglas, Isle of Man.FDIC SA-30-2003
    6/17/03

  • FDIC Issues FIL Regarding Cuban Travel Services

    The FDIC has issued a FIL-50-2003 regarding the June 6, 2003 OFAC amendments to SDN list by adding several names as SDGTs. The information was previously reported on BOL and placed on our OFAC page.
    6/17/03

  • OTS Cost of Funds Reports

    OTS has released current and historical reports regarding the national average cost of funds ratio to OTS regulated, SAIF - insured institutions.Current Report    Historical Report
    6/17/03

  • USDA Joins Money Smart Alliance Program

    The FDIC has announced that the USDA's Rural Housing Service has joined the FDIC Money Smart Alliance Program.FDIC NR
    6/17/03

  • Customer Peer Comparison Added to UBPR

    The FFIEC has added a custom peer comparison function to the UBPR portion of the FFIEC website. This new feature allows individual banks to be compared with the performance of a user-defined peer group of banks.FFIEC UBPR Custom Peer Memo
    6/17/03

  • OFAC Penalties

    OFAC civil money penalties have been announced against two banks for violations regarding funds transfers to Kosovo and Iraq. The penalties range from $4,800 to $5,842. The violation which resulted in the smaller penalty was voluntarily disclosed. The banks involved were Bank United, Houston, Texas and Union Bank of California, San Francisco, California. OFAC Penalties Chart
    6/16/03

  • FRB Enforcement Actions Announced

    The FRB has announced it has entered into a written agreement with The Marathon Bank, Winchester, Virginia and the issuance of a cease and desist order against Lori H. Staples, a former vice president of the bank. Written Agreement Cease and Desist Order
    6/16/03

  • Small Businesses Fuel Economic Growth

    The entrepreneurial activity of small business owners provides new sources of employment opportunities and tax revenues. The ability to recognize and react to new ideas allows small businesses to thrive in neighborhoods overlooked by larger concerns. These points and others were raised by FRB Governor Gramlich in a presentation before a Milwaukee Community Development Corporation.FRB Speech
    6/16/03

  • OCC Issues Bugbear.B Virus Alert

    The OCC has issued Alert 2003-09 regarding the threat the Bugbear.B virus poses to financial institutions. The serious nature of the Bugbear.B virus to financial institutions was previously explained in a BOL Special Tech Alert.
    6/16/03

  • Protecting the Financial Community From Terrorist Attack

    The FDIC will hold a half-day symposium that will examine the security of the United States financial sector and outline steps that banks can take to protect themselves. The event will be held on July 31, 2003, in Dallas, Texas.Agenda Registration
    6/16/03

  • FATF To Revise Anti-Money Laundering Recommendations

    FATF has announced plans to revise its Forty Recommendations against Money Laundering at its annual meeting to be held in Berlin on June 18-20, 2003. FATF NR
    6/16/03

  • Scope of HMDA Reach Altered by MSA Changes

    The OMB has revised the MSA definitions. This results in 49 new MSAs. The changes will affect the HMDA 2004 reporting criteria for depository institutions. Institutions which meet the asset threshold who have offices in counties that are being added to MSAs will be covered by HMDA, while those in counties dropped from MSAs may no longer be covered. CRA assessment area delineations may also be affected. See what's happened in the areas where your offices are located. OMB Bulletin 03-04    MSA List    HMDA Criteria
    6/13/03

  • FDIC Enforcement Actions Include $1.4 Million CMP

    The FDIC has announced enforcement actions against 18 former and current bank officers and directors from the states of Alabama, Minnesota, Washington, Iowa and Texas. CMPs ranging from $4,000 to $1.4 million were imposed.Alabama    Minnesota    Washington    Iowa   Texas
    6/13/03

  • OCC Delays Compliance Date

    The OCC has issued notice of an indefinite delay in the compliance date for certain provisions of the final rule governing debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). OCC Bulletin 2003-25    Notice    68FR35283 (txt)    68FR35283 (pdf)
    6/13/03

  • OTS Updates Thrift Activities Regulatory Handbook

    The section of the Thrift Activities Regulatory Handbook regarding enforcement actions has been updated by OTS.OTS Bulletin RE-32-28
    6/13/03

  • Deposit Insurance Reform and FCRA

    Learn the views of FDIC Chairman Powell on these two important topics from his remarks to the Women on Housing and Finance. Read about how he believes an efficient credit reporting process has resulted in cheaper credit for borrowers in the U.S. Speech
    6/13/03

  • Thrift Activities Handbook Updated

    OTS has issued a number of updates to the Thrift Activities Handbook.Opening Section    Table of Contents    Volume 1 Program    Volume 1 Section 300    Volume 1 Section 370    Volume 1, Appendix A 6/13/03

  • Effective Corporate Governance Strengthens Compliance

    FRB Governor Bies indicated in a presentation to the participants at the ABA Regulatory Compliance Conference that compliance can be strengthened through effective corporate governance. She remarked that to be effective, compliance risk management must be coordinated at various levels within the organization. While the governance of a bank's risk-management program comes from the top down, a successful program will involve staff at all levels, and in more than one department. Speech
    6/12/03

  • OCC Community Development Newsletter

    The OCC has published the 2003 spring edition of the Community Development Newsletter which focuses on banks and affordable housing in rural America. The online issue offers a road map for banks committed to playing a positive role in rural development and provides insights on CRA compliance, news-you-can-use from OCC's district offices plus useful Web links. Newsletter
    6/12/03

  • OCC Issues Reg Z Bulletin

    The OCC has issued Bulletin 2003-24 regarding the FRB's adoption of revisions to the official staff commentary to Reg Z which was published in the Federal Register on April 3, 2003. The revision was previously reported in BOL Top Stories on April 3 as, "Reg Z Commentary Changes Published in Federal Register". OCC Bulletin 2003-24
    6/12/03

  • FDIC Issues OFAC FIL

    The FDIC has issued an FIL regarding the designation of the Al-Aqsa Foundation as an SDGT, the termination by OFAC of the declaration of emergencies with respect to Yugoslavia, and the modification of entries for the Balkans and the Federal Republic of Yugoslavia. The OFAC change was previously reported on BOL and details placed on our OFAC page. FIL-14-2003
    6/12/03

  • June 2003 FFIEC Reporting Forms

    The FFIEC has placed the June 2003 FFIEC Reporting Forms 002, 009 and 009a online.Form 002    Form 009    Form 009a
    6/12/03

  • Using Quantitative Analysis in Community Development

    Learn how community developers utilize data analysis to increase economic opportunity and revitalize their neighborhoods from a presentation by FRB Governor Bernanke at the 2003 Community Development Policy Summit, sponsored by the Federal Reserve Bank of Cleveland. Speech
    6/12/03

  • The Beige Book

    The FRB has released The Beige Book summary of current economic conditions compiled from data collected prior to June 2, 2003.The Beige Book Summary    Full Report
    6/12/03

  • Implications of Behavioral Economics on Monetary Policy

    Learn the views of FRB Governor Kohn from his remarks at the Federal Reserve Bank of Boston's 48th Economic Conference. He noted that deviations from fully rational optimizing behavior induced by psychological factors have long been important in macroeconomic analysis and hence in monetary policy.Speech
    6/11/03

  • Application of Basel II in U.S.

    FRB Vice Chairman Ferguson indicated in a presentation before the Institute of International Bankers that approximately 10 U.S. banks which are significant competitors in foreign markets will be required to adopt Basel II. Another ten banks are expected to do so voluntarily. The FRB does not intend to require other banking organizations in the U. S. to adopt Basel II.Speech
    6/11/03

  • Risk Management - Regulatory Considerations

    The approach taken by the OCC was explained by Senior Deputy Comptroller Williams at the Risk USA 2003 Conference. She commented that the OCC takes a favorable view of banks' efforts to conduct banking activities in new ways to respond to changing financial needs of customers. Speech
    6/11/03

  • BugBear.b Targets Banks Worldwide

    Financial institutions world-wide are at high risk due to the latest BugBear virus threat. Buried deep within the worms' code is a list of bank domain names that, if matched, will cause the program to keep the connection on the infected machine open and allow a keylogging program to potentially steal sensitive information. Find out if your institution is on the list in our BOL Special Tech Alert.
    (6/10/03)

  • FRB Working Papers Released

    Four new working papers in the FRB Finance and Economic Discussion series have been released and are available online. The topics are: The Recall and New Job Search of Laid-off Workers; Regime-Shifts, Risk Premiums in the Term Structure, and the Business Cycle; Wealth Effects and the Consumption of Leisure; and Estimates of the Term Premium on Near-dated Federal Funds Futures Contracts. Recall Regime-Shifts Wealth Effects Estimates 6/10/03

  • OFAC Changes

    OFAC has named new terrorists to the SDN list, added a redacted letter to the OFAC Interpretative Rulings area which relates to Iran, and changes have been made in certain listings of some primary entries. Four separate actions listed on the weekly OFAC Penalties Chart relate to financial institutions and the Cuban service providers list was updated. Get the details. 6/9/03

  • OFAC Global Terrorism Interim Final Rule

    An interim final rule regarding terrorist sanctions has been issued by OFAC. The Global Terrorism Sanctions Regulations implement the provisions of a previously issued Executive Order which blocked all property and interests of designated individuals and entities and prohibited transactions with the same. The effective date of the interim rule is June 6, 2003 and written comments are requested by August 6, 2003.OFAC Interim Rule 6/9/03

  • Retail Fees and Services Annual Report

    The FRB has published its annual report to Congress which contains the results of a survey concerning the relation of changes in retail banking services to increases in deposit insurance premiums. Annual Report 6/9/03

  • G.19 Consumer Credit Report

    The G.19 Consumer Credit Report for April 2003 has been released by the FRB.G.19 6/9/03

  • $61 Trillion in Derivatives

    U.S. commercial banks hold over $61 trillion in derivatives according to the First Quarter 2003 report from the OCC.OCC NR 2003-45 Derivatives Report 6/9/03

  • 2004 HMDA Rate Spread Calculator

    The FFIEC has developed a Rate Spread Calculator to assist HMDA reporting institutions with the new Regulation C requirements for reporting Rate Spread data effective for 2004 HMDA data and made it available online.FFIEC Calculator 6/6/03

  • FDIC CRA Examination Results

    The FDIC has issued the list of state nonmember banks evaluated in March 2003 for compliance with the CRA.FDIC PR Monthly Report 6/6/03

  • Unauthorized Banking Operations Special Alert

    The FDIC has issued a special alert regarding two entities, Premiere Insurance Group and Crestal Bank, that may be conducting banking operations in Canada or the United States without authorization.SA-28-2003 6/6/03

  • Collection and Use of Consumer Information Workshop

    The FTC will host a workshop on June 18, 2003, to address the issue of the costs and benefits to consumers and businesses of consumer information collection and use.FTC PR Agenda 6/6/03

  • ARM and Home Equity Spanish Brochures

    Spanish versions of consumer information brochures regarding ARMs and Home Equity Lines of Credit have been placed online by the FRB.ARM Spanish    English   Home Equity Spanish    English 6/6/03

  • U.S. Flow of Funds Data

    The FRB has released the Z.1 Flow of Funds report for the First Quarter of 2003 and posted it online.FRB Z.1 6/6/03

  • FRB 2002 Annual Report

    The FRB Annual Report for 2002 is available online. FRB Annual Report 6/6/03

  • Foreign Banks U.S. Branches Proposed Rule

    The OCC has published notice of a proposed rule regarding the approval procedures for foreign banks seeking to establish federal branches and agencies in the United States. Notice ACII    PDF 6/6/03

  • Interim Rule Amending Use of ACH by Agencies

    The FMS has issued an interim rule to amend the regulation which governs the use of the ACH system by Federal agencies. Public comments on all aspects of the interim rule are requested. Interim Rule 6/6/03

  • Flood Insurance Violations Result in CMP

    The FRB has announced the issuance of a $7,000 Civil Money Penalty against the Citizens Bank and Trust Company, Van Buren, Arkansas under a Consent Order in connection with 20 alleged violations of flood requirements under Regulation H..Order 6/5/03

  • FDIC Details Recent OFAC Actions

    Two FDIC FILs have been issued dealing with OFAC actions previously announced on BOL.FIL-45-2003 FIL-46-2003 6/5/03

  • June 2003 Call Report Validation Criteria

    The FFIEC has posted the validation criteria for June 2003 call reports online . Criteria Excel PDF 6/5/03

  • Earnings Record in First Quarter

    The FDIC has released the Quarterly Banking Profile for the First Quarter 2003. It indicates that FDIC insured commercial banks and savings institutions earned a record $29.4 billion in the first quarter, which exceeded the previous record by more than $2 billion.FDIC PR Quarterly Banking Profile 6/5/03

  • Consumer Advisory Council Meeting Scheduled

    The FRB Consumer Advisory Council will hold its next meeting on Thursday, June 26, 2003 at 9:00 a.m. Although the meeting is open to the public, those planning to attend the meeting should, for security purposes, register no later than Tuesday, June 24.Meeting Notice Meeting Registration 6/5/03

  • Nominations For Consumer Advisory Council

    The FRB has announced that it is accepting nominations for nine new members to the Consumer Advisory Council for three year terms beginning January 2004. The Council advises the FRB on the exercise of its responsibilities under various consumer financial services laws and on other matters on which the FRB seeks advice. Letters of nomination must be received by August 15, 2003.FRB NR Nomination Form 6/5/03

  • FCRA and Role of Regulators

    The role of the regulators was examined by FRB Director of Consumer and Community Affairs Smith in testimony before a Subcommittee of the House on Financial Services. She remarked that the FCRA promotes the interstate operations of banks and other financial entities by giving them the ability to obtain standardized consumer reports which allows prudent credit decisions to be made quickly and inexpensively. FRB PR 6/5/03

  • Iraqi Economic and Financial Reconstruction

    Learn the government's plan for the economic and financial reconstruction of Iraq from the comments of Treasury Under Secretary for International Affairs Taylor before a Congressional Committee. He noted one of the most important objectives in the near-term is to promote the establishment of a stable, unified Iraqi national currency in addition to strengthening and modernizing the banking sector.Testimony 6/5/03

  • OTS CRA Exam Schedule for Third Quarter

    The OTS has released the schedule for CRA examinations in the third quarter 2003.Schedule 6/4/03

  • OCC CIP Final Rule

    OCC Bulletin 2003-23 transmits the joint final rule previously announced on BOL and published in the Federal Register on May 9, 2003, that requires all banks to establish procedures to verify the identity of customers. The final rule implements section 326 of the USA PATRIOT Act for banks, savings associations, credit unions and certain non-federally regulated banks.OCC Bulletin 2003-22    Final Rule 6/4/03

  • Reduction of Regulatory Burdens

    The federal financial regulatory agencies have announced that they will publish a joint notice and request for comments on a plan to identify and eliminate outdated, unnecessary or unduly burdensome regulations imposed on insured depository institutions. Federal law requires the agencies to review their regulations at least once every 10 years and five roundtable discussions with bankers and other interested parties have been scheduled.FRB   OCC   OTS   FDIC 6/4/03

  • First Quarter 2003 Large Banks Data Report

    The FRB has released the first quarter 2003 data report regarding domestically chartered insured commercial banks with consolidated assets of $300 million or more.Large Bank Report ACII   PDF 6/4/03

  • Federal Reserve Act Online

    The FRB has placed the Federal Reserve Act online.Federal Reserve Act 6/4/03

  • International Finance Discussion Papers

    Three International Discussion Papers for May 2003 have been released by the FRB. Topics include, "Distance, Time, and Specialization"; "An Empirical Analysis of Inflation in OECD Countries"; and "Net Foreign Assets and Imperfect Pass-through: The Consumption Real Exchange Rate Anomaly".Discussion Papers 6/4/03

  • FDIC Annual Survey of Deposits

    The FDIC has announced that its annual Survey of Deposits will mailed the week of July 7th to institutions with more locations than a main office facility. Banks that do not have any branches are instructed not participate in the survey.FIL-44-2003 6/4/03

  • FFIEC UBPR Online

    The March 31, 2003 Uniform Bank Performance Report is now available online. The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools.UBPR 6/4/03

  • New SDNTKs Named

    OFAC has named 4 individuals and one entity as SDNTKs and added them to its listing of Principal Significant Foreign Narcotics Traffickers. OFAC has also re-designated two former SDNs as SDNTKs. Complete details are on our summary page. 6/3/03

  • Advance Fee Credit Card Scam $1.3 Million Judgment

    A Canadian company was permanently barred from selling advance-fee credit cards and required to pay $1.3 million to consumers as part of a default judgment rendered in a case filed by the Federal Trade Commission. The firm, Efficient Telesales Services Inc. (also doing business as U.S. Credit Services and U.S. Direct Benefits and Savings), promised consumers a major credit card, charged for it in advance, but never delivered the credit card.FTC PR Judgment 6/3/03

  • Bogus Privacy E-Mail Alert

    The FTC has issued an alert regarding bogus e-mails that may mislead recipients into revealing personal credit information. The e-mail claims that consumers must "opt out" by calling a listed phone number or the credit bureaus will release their information starting July 1. FTC 6/3/03

  • Protecting Personal Information Workshop

    The role of technology in helping consumers and businesses to protect consumer information is the focus of a day long Federal Trade Commission workshop to be held on June 4, 2003, at the FTC Conference Center in Washington, D.C.Workshop Information Agenda 6/3/03

  • FRB G.5 and G.20

    The FRB has released the May 2003 G.5 Foreign Exchange Rates and the March 2003 G.20 Finance Companies reports. FRB G.5 FRB G.20 6/3/03

  • FRB's New Cash Management Services

    Starting July 1, two new Cash Management Products will be available to help institutions better manage their Federal Reserve account. Cash Management Plus will be available through the AMI service via FedLine for the Web and an Intra-day Download File will be available through a CI connection. FRB Services 6/3/03

  • OCC Third Quarter CRA Examination Schedule

    The OCC has released the CRA Examination schedule for the third quarter of 2003.CRA Exam Schedule 6/2/03

  • The ILC Debate

    The debate in Congress about whether Industrial Loan Companies should be considered equal with banks when it comes to powers like interstate branching and paying interest on business checking was discussed by FDIC Chairman Powell during a presentation before the Conference of State Bank Commissioners. He indicated the FDIC has not identified any safety and soundness concerns unique to ILCs, and are certain that they have the tools and the ability necessary to sufficiently supervise them.Speech 6/2/03

  • Corporate Governance, Internal Controls and Audits

    These hot topics were discussed by FRB Governor Bies at the Conference of State Bank Commissioners. She commented that supervisors from all regulatory agencies need to continually work together to ensure a consistent, high-quality examination process throughout the banking system. Speech 6/2/03

  • March Call and Thrift Financial Reports Online

    The FDIC has made the March 31, 2003 Report of Condition and Thrift Financial Report information available online.FDIC Call/TFR 6/2/03

  • Counterfeit Cashier's Checks Alert

    The FDIC has issued two alerts regarding counterfeit cashier's checks drawn on First Federal Savings Bank of Florida, Live Oak, Florida, and on Premier Bank, Tallahassee, Florida. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 6/2/03

  • FRB Check Processing Reorganization Schedule

    The FRB has announces the schedule for the restructuring of check processing sites nationwide. [The plan to reduce the number of check processing sites to 32 nationwide was previously announced on BOL.] Schedule Map 6/2/03

  • Customer Financial Literacy

    OCC Chief of Staff Nishan commented on efforts to increase the financial literacy of existing and potential customers in a speech before the Urban Financial Services Coalition. He remarked that with the government and private sector working together, great strides can be made in improving the financial literacy of all citizens.Speech 6/2/03

04/30/2003

Top Stories for May 2003

  • OFAC Adds Al-Aqsa Foundation

    Al-Aqsa Foundation has been added to the OFAC list as an SDGT, with numerous aliases. Plus, changes have been made relating to the sanctions on Yugoslavia, and FRYM and Balkans entities. All FRYM and Balkans entries which were previously on the OFAC SDN list have been deleted, but 173 NEW Balkans entries (plus "A.K.A.s") have been substituted. Complete details are on the BOL OFAC summary page. 5/30/03

  • FRB Issues Proposed Rule to Amend Reg K

    The FRB is seeking public comment on a proposal to require Edge and Agreement corporations and U.S. branches, agencies and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to assure and monitor compliance with the Bank Secrecy Act and the regulations issued thereunder. [This was previously announced on BOL] 68FR32434 (txt) 68FR32434 (pdf) 5/30/03

  • NCUA Issues Final Rule to Amend its Involuntary Liquidation Regulation

    The NCUA is issuing a final rule amending its involuntary liquidation regulation to designate swap agreements (swaps) as qualified financial contracts (QFCs). Treatment of swaps as QFCs will limit swap counterparty exposure when a federally-insured credit union is placed into involuntary liquidation or a conservatorship and thereby encourage entities to engage in swaps with federally-insured credit unions. Treatment of swaps as QFCs will also help preserve market stability. 68FR32355 (txt) 68FR32355 (pdf) 5/30/03

  • FDIC April Enforcement Actions Announced

    The FDIC has released a list of orders of administrative enforcement actions taken against banks and individuals in April. The actions include two cease-and-desist orders, two removal-and-prohibition orders, seven civil money penalty orders, one voluntary termination of insurance order, one termination of a supervisory prompt corrective action directive, one termination of a cease-and-desist order, and one adjudicated decision.FDIC PR-50-2003 5/30/03

  • FRB Announced Written Agreements with Two Institutions

    The FRB has announced it has entered into written agreements with Brickyard Bancorp, Inc., Lincolnwood, Illinois, and NAB Bank, Chicago, Illinois. Brickyard Bancorp, Inc. Agreement NAB Bank Agreement 5/30/03

  • Dual Banking System Serves Customer Needs

    The advantages of the U.S. dual banking system were outlined by Treasury Assistant Secretary Abernathy to the Annual Meeting of the Conference of State Bank Supervisors. He noted over the last several years, State and National banks have made enormous strides in expanding the reach of their services. Millions of people are new customers of mainstream financial institutions. Treasury JS-437 5/30/03

  • BOL User Sounds Counterfeit Cashier's Checks Alert

    A BOL User utilized Bankers' Threads Security Forum to post a warning of attempts to negotiate counterfeit cashier's checks drawn on the Border Trust Company, South China, Maine. The alert has been confirmed by the institution. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/30/03

  • Veil Case Goes to Court

    A case in which a Muslim woman is suing the state of Florida for revoking her driver's license after she refused to unveil for the photo is finally going to court. Experts are lined up on both sides to debate the extent to which freedom of religion must give way to the interests of public safety. For purposes of verifying the identity of veiled customers for your CIP, take a look at an article from the BOL Archive: "Verifying Customer Identity Beyond the Veil". Related News Story 5/29/03

  • Comments Sought on Reg K Amendment

    The FRB is seeking comments on a proposed amendment to Reg K that would require Edge and Agreement corporations and U.S. branches, agencies, and other offices of foreign banks supervised by the Board to establish and maintain procedures reasonably designed to ensure and monitor compliance with the Bank Secrecy Act and related regulations. Comments are due on or before June 30, 2003.FRB Notice 5/29/03

  • FFIEC Reporting Forms Online

    The June 2003 FFIEC 031 and 041 Reporting Forms are available online.Form 031 Form 0415/29/03

  • New Lower Tax Withholding Tables Online

    The Treasury and IRS have placed the new tax withholding table on their websites. The new tables are the result of the Jobs and Growth Tax Relief Reconciliation Act of 2003.Treasury PR    IRS PR    Treasury Tables    IRS Tables 5/29/03

  • Now Online - Charge-Off and Delinquency Rates

    The FRB has placed online the charge-off and delinquency rates on loan and leases for commercial banks compiled from the quarterly FFIEC Consolidated Reports of Condition and Income. FRB Statistical Release 5/29/03

  • Financial Holding Company List Updated

    The FRB has updated the list of the bank holding companies that have elected under the provisions of the Bank holding Company Act to become or treated as financial holding companies.FRB FHC 5/29/03

  • Most Iraqi Sanctions Lifted

    Treasury Secretary Snow announced that OFAC has issued a general license that lifts most of the sanctions previously imposed against Iraq. The license permits all activities except trade in arms, certain cultural artifacts and transactions with certain Iraqi officials. Information regarding the OFAC action has been posted on the BOL OFAC page and the BOL OFAC Sanctions Matrix has been updated. 5/28/03

  • FRB Issues Final Rule to Update Routing Numbers

    The FRB is publishing a final amendment to appendix A of Regulation CC that updates the routing numbers for Federal Reserve Banks and Federal Home Loan Banks. 68FR31592 (txt) 68FR31592 (pdf) 5/28/03

  • FRB Issues Final Transition Rules for Reg C

    The FRB is publishing final amendments to the official staff commentary to Regulation C (Home Mortgage Disclosure). The amendments provide transition rules for applications received before January 1, 2004, on which final action is taken on or after January 1, 2004. 68FR31589 (txt) 68FR31589 (pdf) [This was previously announced on BOL]5/28/03

  • Casino Gambled and Lost

    FinCEN announced the assessment of a $350,000 civil money penalty against the Greenville Riverboat, LLC d/b/a Lighthouse Point Casino for the willful failure to file 142 Currency Transaction Reports by Casino (CTRC) forms. The casino had a BSA program, but no CRTCs were filed for almost two years.FinCEN CMP 5/28/03

  • Regulators Place Basel II Discussion Documents Online

    Documents developed by the FDIC, OCC, and FRB regarding the proposed revisions to the Basel Accord are available online. For the next several months, the agencies will be discussing U.S. implementation plans with bankers and other interested parties and soliciting comments on draft documents relating to implementation.FRB Basel II Accord 5/28/03

  • FDIC Schedules Cyber Security Symposium

    The FDIC has announced that on June 13, 2003, it will host in partnership with the George Mason University School of Law a free day-long symposium regarding senior management's role in cyber security. The sessions will be held at the FDIC's L. William Seidman Center, Arlington, Virginia.FDIC PR    Agenda    Registration Form 5/28/03

  • Credit Unions Post 5% Growth

    NCUA announced that federally insured credit unions posted a 5% growth in assets during the first three months of 2003. NCUA PR 5/28/03

  • Reg C Transition Rules Released

    The FRB has published an amendment to the official staff commentary to Reg C that provide lenders with guidance on collecting and reporting information when an application for a home mortgage loan is received before and final action is taken after the effective date of revised Reg C, January 1, 2004. The revision requires lenders to report new data items, including information about loan pricing.FRB PR Official Staff Commentary 5/27/03

  • FRB Interpretative Letters Online

    The FRB has made available online Interpretative Letters addressing regulatory capital status of a bank's indemnified agency securities lending program, exemption from quantitative limits of section 23A of the Federal Reserve Act, and title abstracting activities for aircraft as closely related to banking.Capital status Section 23A exemption Aircraft title abstracts 5/27/03

  • OCC FAs With Failed Bank's Attorneys

    The OCC has announced that it has entered into formal agreements with the law firm Kutak Rock, LLP and the firm partner, Michael T. Lambert, who represented the failed First National Bank of Keystone, Keystone, West Virginia. The firm agreed to take certain actions with respect to representation of insured depository institutions, and Mr.Lambert agreed not to provide legal services to insured depository institutions.OCC NR 2003-40 Kutak Rock Agreement Lambert Agreement 5/27/03

  • Counterfeit Cashier's Checks Alert

    The FDIC has issued an alert regarding counterfeit cashier's checks drawn on Bank of the West, San Francisco, California. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/27/03

  • Comments Requested on FRB Proposal

    The FRB has requested comment by July 14, 2003 on a proposal to modify the method for imputing priced-service income from clearing balance investments.FRB PR Proposal 5/27/03

  • War Risks and the Economy

    The FRB has placed online a working paper, "The Effects of War Risk on U.S. Financial Markets" which measures the effects of the risks associated with the war in Iraq on various U.S. financial variables.Working Paper 5/27/03

  • OFAC Issues Interim Final Rule to Amend Iraqi Sanctions Regulations

    The general licenses authorize the following activities involving Iraq: non-commercial funds transfers (including family remittances) and related transactions, activities by the U.S. Government and its contractors or grantees, privately financed humanitarian transactions, and certain exports and reexports to Iraq. 68FR28753 (txt) 68FR28753 (pdf)5/27/03

  • FFIEC HMDA 2003 Guide Now Online

    The FFIEC has placed the Guide to HMDA Reporting: Getting It Right online. The Guide provides a summary of responsibilities and requirements, directions for assembling the necessary tools, and step-by-step instructions for reporting HMDA data. The current 2003 version should be used for guidance on collection and reporting of calendar year 2003, and the 1998 version should be used for guidance on collection and reporting of calendar year 1998 through 2002.2003 Guide 1998 Guide 5/23/03

  • Host State Loan-to-Deposit Ratios Issued

    The FRB, FDIC, and OCC have issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. FRB Release    OCC    FDIC    FIL-41-2003    Ratios 5/23/03

  • 37 OCC CRA Evaluations Online

    The OCC has released and placed online the results of CRA performance evaluations for the period April 15, 2003 to May 14, 2003. Of the 37 national banks reviewed, 8 were rated outstanding and 29 were satisfactory. None were needs to improve or substantial noncompliance. CRA Evaluations 5/23/03

  • U.S. Financial Institutions Allowed in Iraq

    OFAC has published an Interpretative Guidance that authorizes U.S. financial institutions to establish a presence in Iraq for the limited purpose of facilitating the transfers of non-commercial humanitarian funds, Information regarding the Guidance has been placed on the BOL OFAC page. 5/23/03

  • Weekly Bill Auctions Announcements Delayed

    The Treasury Department has postponed the announcement of its weekly 13-week and 26-week bill auctions and its monthly 2-year note auction, scheduled to be announced May 22, 2003, until further notice. This postponement is due to the statutory debt limit.Treasury JS389 5/23/03

  • FRB Requests Comments

    The FRB has issued a request for comments on proposals to approve the extension for three years, without revision, of the following reports: FR 2064, FR H-4, and the RFP and RFPQ. Request for Comment 5/23/03

  • Prospects for Economic Growth

    Learn the why FRB Governor Olson thinks the stage has been set for an improvement in the economic climate from his remarks to Minnesota Chamber of Commerce members. He indicated the recent news from oil and financial markets and consumer confidence clearly suggests that the reduction in risks associated with the situation in Iraq has had a number of favorable effects. Speech 5/23/03

  • New Money Smart Alliance Partner

    The FDIC announced that National Image, Inc. has joined its Money Smart Alliance Program. National Image, Inc. is a network of professionals dedicated to assisting the U.S. Hispanic community in the areas of employment, education and civil rights. Headquartered in Denver, CO, National Image has local chapters throughout the United States. FDIC MSPR 1003 5/23/03

  • OCC Issues Proposed Rule to Modify the Securities Offering Disclosure Rules

    The amendments to the Exchange Act give the OCC the authority to administer and enforce a number of the Sarbanes-Oxley Act's new reporting, disclosure, and corporate governance requirements with respect to national banks that have a class of securities registered under the Exchange Act. They are also proposing to make conforming revisions to the rules which prescribe securities offering disclosure rules for national banks that issue securities that are not subject to the registration requirements of Securities Act of 1933. 68FR27753 (txt) 68FR27753 (pdf) 5/22/03

  • Counterfeit Cashier's Checks Alert

    The Federal Reserve Bank of San Francisco has issued an alert regarding counterfeit cashier's checks drawn on the Community Bank of Arizona, N.A., Wickenburg, Arizona. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/22/03

  • Protection of Critical Financial Infrastructure

    Learn what actions the government and private industry are taking to protect the critical financial infrastructure. Read the comments of Treasury Deputy Assistant Secretary Dawson at a meeting of Protecting the Financial Sector, a Chicago public and private partnership. He noted the actions of Treasury are guided by the following three principles: 1) the safety of the tellers, loan officers, and technicians that make up the financial infrastructure; 2) ensuring that our financial institutions continue to function even during - especially during - times of stress; and 3) the promotion of decentralized decision-making and problem-solving, both as financial institutions prepare for disruptions and as they weather them. Treasury JS-397 5/22/03

  • Fedwire Online Operating Hours to be Expanded

    The FRB has announced that the Fedwire Online Funds Service will open three and one-half hours earlier than the current opening time of 12:30 a.m. ET. The closing time for the service will remain 6:30 p.m. ET. The scheduled timeframe for full implementation of the expanded operating hours is the second quarter of 2004. Fedwire participants will be notified at least sixty days before the specific effective date of the new hours. FRB Notice 5/22/03

  • Greenspan -The Economy Outlook

    In testimony before the Joint Economic Committee of Congress, Chairman Greenspan noted that one reassuring development that has been sustained through this extended period of economic weakness has been the performance of productivity. He indicated the economic fundamentals--including the improved conditions in financial markets and the continued growth in productivity--augur well for the future.Testimony 5/22/03

  • Thrift First Quarter Interest Rate Measures

    OTS has released the Preliminary Thrift Industry First Quarter Interest Rate Measures.OTS Release 5/22/03

  • Some Non-Local Checks to Become Local

    Effective July 22, 2003, the FRB has announced the deletion of obsolete numbers from and the addition of new numbers to the list of routing numbers in Appendix A to Reg CC for checks drawn on Federal Reserve Banks and Federal Home Loan Banks. In addition, the FRB gave notice of plans to reduce the number of check processing regions from 44 to 32. As a result, some checks that are currently designated non-local items will become local checks and be subject to faster availability schedules. Implementation of the reductions will occur in phases beginning the last half of 2003 and will be completed by the end of 2004. In order to give the affected financial institutions time to make processing changes and, if necessary, make adjustment to availability schedules and notify customers, the notice of each phase will published in the Federal Register at least 60 days before the effective date. FRB PR Final Rule and Amendments 5/21/03

  • CTR Revisions May Be in the Works

    FinCEN has published a notice and request for comment on proposed revisions to the Currency Transaction Report and editorial changes to the instructions. Several editorial changes would be made in this revision, and two data collection blocks would be added to Part II for Foreign cash in and Foreign cash out. A new item 37a would be added in Part III for listing a foreign country code.68FR27143 (txt) 68FR27143 (pdf) 5/21/03

  • OCC Issues BSA/AML Bulletin

    The OCC has issued a bulletin that gives notice of the revocation of the designation of Ukraine as a primary money-laundering concern and a proposed rule to impose "special measures" against Nauru.OCC Bulletin   Revocation Notice   Proposed Rule 5/21/03

  • Seychelles Advisory Withdrawn

    FinCEN has withdrawn its Advisory 2 regarding the Republic of Seychelles. The enhanced scrutiny of transactions involving the Republic of Seychelles is no longer necessary.FinCEN 5/21/03

  • FedACH NOC Information Online

    The online services offered by FedACH e now include derived returns and notifications of change. Operating Circular 4 was amended to reflect the new services. FRB Ser Operating Circular 4 5/21/03

  • Thrifts Set Income Records

    OTS announced that in the first quarter of 2003 the nation's thrift industry set records for net income, profitability, equity capital and mortgage refinancing volume. The industry earned a record $3.33 billion for the quarter, nine percent higher than the previous record.OTS 03-17   Selected Indicators   Charts   Highlights   Charge-Off Rates 5/21/03

  • Online FFIEC Guidance Booklets

    The FFIEC has made available online two revised guidance booklets, one for institutions and examiners regarding business continuity planning and the other for examiners regarding the supervision of technology service providers. Business Continuity Planning Booklet    Supervision of Technology Service Providers Booklet OCC Bulletin ASCII WORD OTS 03-18 5/21/03

  • FCRA and the FTC

    In testimony before the Senate Committee on Banking, Housing and Urban Affairs, the Director of the FTC Bureau of Consumer Protection gave an overview of the FCRA and noted that the FTC regards consumer education as vital to the FCRA because the statute contains self-enforcing elements, such as the right to dispute inaccurate or incomplete information.Testimony 5/21/03

  • Nine Enforcement Actions Announced

    The OCC announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks located in Maryland, Illinois, North Carolina, Florida, Oregon and Alabama. OCC NR 2003-37 5/20/03

  • Stolen Cashier's Checks Alert

    The FDIC had issued an alert regarding outdated cashier's checks that have been stolen from The Bank of Abbeville, Abbeville, South Carolina. The stolen checks are in circulation. Information regarding the checks has been placed on the BOL Alerts & Counterfeits page. 5/20/03

  • Financial Education Initiative Announced

    The FRB announced a broad initiative to provide consumers with more resources for making smart financial decisions. The program includes the introduction of public service messages, a new brochure, enhancements to the System's financial education web site, and the announcement of upcoming System-sponsored programs and events.FRB PR 5/20/03

  • FinCEN Extends Exception to Travel Rule

    FinCEN is giving notice that it is extending, until December 1, 2003, a conditional exception to the Travel Rule that is due to expire on May 31, 2003. The exception permits financial institutions to substitute coded information for the true name and address of a customer in a funds transmittal order. The purpose of the extension is to permit FinCEN to perform a study of the alternatives to continuing the conditional exception. 68FR26996 (txt) 68FR26996 (pdf) 5/19/03

  • HOEPA APR Reference Rates for April Released

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in April will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rate    FRB Weekly Rates 5/19/03

  • AML Non-cooperative Countries List Updated

    The OCC has updated an Advisory Letter which lists the countries identified by the FFIEC as non-cooperative in the fight against money laundering. OCC AL 2003-4 5/19/03

  • FinCEN Issues Final Rule to Amend the Foreign Bank Account Report Requirements

    FinCEN is amending the regulations implementing the Bank Secrecy Act to reflect that enforcement authority with respect to the foreign bank account report requirements of 31 CFR part 103 has been delegated from FinCEN to the Commissioner of the Internal Revenue Service. 68FR26489 (txt) 68FR26489 (pdf) 5/16/03

  • FFIEC UBPR User's Guide Online

    The FFIEC has placed the User's Guide for the Uniform Bank Performance Report online. The guide contains basic guidelines for using the UBPR, including methods of analyzing the report, technical information and ratio definitions. Total Report Table of Contents 5/16/03

  • T Bill Auction Announcement Delayed

    The Treasury Department has postponed the May 15, 2003 announcement of its weekly 13-week and 26-week bill auctions until further notice. Treasury JS376 5/16/03

  • OTS Cost of Funds Reports Released

    The OTS has released a current and a historical National Monthly Median Cost of Funds Ratio to SAIF - Insured Institutions report.Current Report Historical Report 5/16/03

  • Tracking Saddam's Money

    The successful joint efforts of government agencies to track down, freeze, and repatriate to the people of Iraq assets that have been systematically looted by Saddam Hussein, his family, and his cronies was described to a House subcommittee by Treasury General Counsel Aufhauser. On March 20, $1.7 billion in Iraqi assets frozen by the 19990 economic sanctions were deposit in a special FRB account. Since March 20, over 1.2 billion addition funds have been identified. Testimony 5/15/03

  • Counterfeit Cashier's Checks Special Alerts

    The FDIC has announced that counterfeit cashier's checks drawn on The Jacksonville Bank, Jacksonville, Florida; California National Bank, Century City, California; and Firstbank - West Branch, West Branch, Michigan are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 5/15/03

  • History Provides Answers to Current Questions

    The answers to many current banking questions including: what activities are incidental to the "business of banking", when do State laws effect a national bank, and if the State law applies who enforces it, are found in the history of the origination of the banking system according to a presentation by OCC General Counsel Williams to the OCC Alumni Association. Speech 5/15/03

  • Your Institution Could Be Eligible

    The Community Development Financial Institutions (CDFI) Fund will award $18 million this year in financial incentives through its Bank Enterprise Award (BEA) Program to certain eligible FDIC-insured institutions that comply with the program's requirements and submit an application for consideration. The average award last year was $284,248. FDIC NR Application Information5/15/03

  • NCUA Disaster Relief Policy Activated

    The NCUA has activated its disaster relief policy to assist credit unions and members in counties eligible for aid in Alabama, Kansas, Missouri, Oklahoma and Tennessee, where offices and homes were destroyed by multiple tornadoes in the last two weeks. NCUA NR03-0514-2 5/15/03

  • OFAC Rulings Online

    OFAC has made available online two Interpretative Ruling entitled "Equipment to manufacture goods which may be sold to Iran" and "Export/aircraft safety (Iran)". OFAC Interpretative Rulings   Equipment Ruling    Export Ruling 5/14/03

  • What Is The Color Of Your Money?

    Soon it will be a combination of copper, blue, peach and green. The new $20 bill has been revealed and it contains all those colors, but some are hard to spot on purpose to foil counterfeiters. Read all about the changes and see what the new bill looks like in a BOL Exclusive Article, "All About the New $20." 5/14/03

  • Fraud Alert - Internet Payments With Fraudulent Checks

    The OCC has issued a fraud alert regarding fraudulent cashier's and official checks used to make payments to defraud consumers in connection with legitimate sales of goods, primarily over the Internet. If one of the instruments is presented to a financial institution, it is directed to hold the item and call the local FBI office.OCC Alert 2003-8 WORD ASCII 5/14/03

  • Administration's International Economic Agenda

    Treasury Secretary Snow outlined the Administration's international economic agenda in a presentation before the House Committee on Financial Services. He noted that rebuilding Iraq and Afghanistan is clearly a key priority for the United States and the international community. Speech 5/14/03

  • BB&T/First Virginia Merger Approved

    The Federal Reserve Board has announced its approval of the application and notice by BB&T Corporation, Winston-Salem, North Carolina, to merge with First Virginia Banks, Inc., Falls Church, Virginia, and thereby acquire its banking and non-banking subsidiaries.Order of Approval 5/14/03

  • New FRB Working Papers Online

    The FRB has made available online the latest working papers in the Finance and Economic Discussion Series. Topics include, "The Long-Run Relationship between House Prices and Income: Evidence from Local Housing Markets"; "Foreclosing on Opportunity: State Laws and Mortgage Credit"; and "Monetary Policy and the Yield Curve". FRB Working Papers    5/14/03

  • Deposit Insurance Reform

    The Treasury Department, the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency and the Office of Thrift Supervision have submitted draft legislative language on deposit insurance reform to the U.S. Senate Banking Committee.Summary    Draft Legislation    Joint Agency Letter 5/13/03

  • Online Call Report Validation Report Criteria

    The March 2003 Call Report validation criteria has been posted by FFIEC on its Web site.FFIEC 5/13/03

  • USA PATRIOT Act Preparedness Checklist

    OTS has issued a checklist for institutions to use for CIP compliance and updating established BSA anti-money laundering requirements. A series of questions aid in the analysis of current BSA/AML programs and assist in the development of new CIP programs. Checklist    CIP Q & A    CEO Memorandum    OTS Release 03-16 5/12/03

  • Senior Officers Respond To Survey

    The FRB has released the results of the April 2003 Senior Officer Opinion Survey on Bank Lending Practices. The survey focused on the changes regarding the supply of and demand for bank loans over the last three months.Full Report    Charts pdf    ASCII    Table 1    Table 2 5/12/03

  • OCC Closes Wisconsin Bank

    The First National Bank of Blanchardville, Blanchardville, Wisconsin, was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation was appointed receiver.OCC NR2003-35    FDIC PR-47-2003 5/12/03

  • Iraq Sanctions Relaxed and UNITA Sanctions Terminated

    Four General Licenses regarding transactions with Iraq have been granted and the President has issued an Executive Order terminating the emergency with respect to the actions and policies of UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

  • Assets Blocked, Entities Added and Removed

    All property and interests in property of four entities, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. The names have been integrated into OFAC's SDN list with the descriptor, BPI-SDNT. In addition, many entities have been removed from the SDN list as a result of the Executive Order regarding UNITA. For more information, see the summary on the BOL OFAC page. 5/9/03

  • CIP Rules Hit Federal Register

    The final rules on Customer Identification Program requirements were published in the Federal Register today. 68FR25089 (txt) 68FR25089 (pdf)5/9/03

  • Greenspan On Corporate Governance

    Chairman Greenspan noted that a reputation for honest dealings within a corporation is critical for effective corporate governance, but even more important is the reputation of the corporation itself as seen through the eyes of outsiders. His remarks were made at the 2003 Conference on Bank Structure and Competition, Chicago, Illinois. He also discussed the benefits and risks associated with derivatives plus incentives for effective risk management. Speech 5/9/03

  • FCRA Information Sharing Provisions Before Congress

    Congress is evaluating the FCRA provisions regarding the uniform national standards for financial information sharing which are scheduled to sunset at year end. In testimony before the House Committee on Financial Services, Assistant Treasury Secretary Abernathy explained the important role the standards play in the fight against identity theft. Testimony 5/9/03

  • FRB Bulletin Articles Online

    Articles from the 2003 FRB Bulletin are available online. The most recent addition, "U.S. International Transactions in 2002", covers the widening of the U.S. trade deficit. May 2003 Bulletin 5/9/03

  • First Quarter BIF & SAIF Financials

    The FDIC has released the First Quarter 2003 Executive Management Report regarding the financial results of the BIB and SAIF insurance funds. Executive Management Report 5/9/03

  • Ruling Online and SDGT Entries Changed

    OFAC announced that a new Interpretative Ruling is available online and that changes to three former SDGT entries have resulted in new entries being added to the OFAC list. Information regarding the Interpretative Ruling and the OFAC changes can be found on the BOL OFAC page. 5/8/03

  • Agencies Seek Comments

    The OCC and the FRB are seeking comments on a proposal to extend for three years without revision a current information collection form, FFIEC 030. Comments are due on or before July 7, 2003.Joint Agency Notice 5/8/03

  • Credit Report Shows Gains

    The G.19 Consumer Credit Report for March 2003 had been released by the FRB. FRB G.19 5/8/03

  • BIF Year-End Status Projected

    Chairman Powell stated the need for deposit insurance reform while reporting on the projected year-end status of BIF following a meeting of the FDIC Board of Directors. FDIC PR 46-2003 FDIC First Quarter Funds Report PR 45-2003 5/8/03

  • Fed Funds Rate Unchanged

    The Federal Open Market Committee left its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release 5/7/03

  • New Money Unveiled May 13th

    Previously, officials had indicated the new $20 bill would be unveiled March 27th. That date came and went with no unveiling and no explanation, but the new date, May 13th, appears to be a certainty. The new design for the $20 notes will be revealed on that date, and the bills will be in circulation later in the year. The new design will retain current security features, including watermarks similar to the portrait and visible when held up to a light, enhanced security threads that glow under ultraviolet light, microprinting, and color-shifting ink that changes color when the note is tilted. New Money Announcement 5/7/03

  • Credit Cards, Cash Payments, and Consent Orders

    Saks Incorporated and an Illinois bank have entered into consent orders with the OCC which require numerous actions be taken to bolster the Bank Secrecy Act compliance of the entities. The actions appear to stem from the way certain credit card transactions were handled, including the receipt of cash payments. Consent Order - National Bank of the Great Lakes; Consent Order - Saks Incorporated 5/7/03

  • FDIC Encourages Help to Tornado Areas

    The FDIC is encouraging banks to work constructively with borrowers in affected areas who, because of the tornadoes, are experiencing difficulties beyond their control. The FDIC has prepared guidelines which state that extending repayment terms, restructuring existing loans or easing terms for new loans, if done in a manner consistent with sound banking practices, can contribute to the health of the community and serve the long-term interests of the lending institution. FDIC Guidelines 5/7/03

  • May CRA Exams from FDIC

    The FDIC has published its list of banks that will be undergoing CRA exams in May. May 2003 CRA Exam Schedule 5/7/03

  • Commercial RE Loan Problems Result in Penalty

    An Illinois banker has been assessed a $20,000 civil money penalty by the FDIC amid allegations he failed to ensure that the bank obtained appraisals before underwriting, approving and funding large commercial real estate loans. Numerous loans were found to have been booked, between September 1999 and January 2001, without timely written appraisals. FDIC PR-43-2003; Order FDIC-03-031k. 5/7/03

  • Falsified Docs Lead to Removal and Penalty

    The FDIC issued a removal and prohibition order and imposed a civil money penalty against Daniel J. Schmitt, a director of the Hartford-Carlisle Savings Bank, Carlisle, IA, which was closed by the Iowa Superintendent of Banking on January 14, 2000. The order and penalty stem from allegations that Schmitt falsified documents for two loans disguising the true purpose for which the loan proceeds were ultimately used. FDIC PR-44-2003; Order FDIC-02-089e; Order FDIC-02-088k. 5/7/03

  • Freddie and Fannie Release New Form

    A new joint Uniform Residential Loan Application form has been released by Freddie Mac and Fannie Mae. NOTE: The new form is not to be used for applications received prior to January 1, 2004. The Fannie Mae announcement states the new form is the result of changes to Reg C and the USA PATRIOT Act. In recent amendments to Regulation B, the FRB noted that the model loan application form contained in Reg B's Appendix B is issued by Fannie Mae and Freddie Mac. The current Appendix B form should still be followed until the FRB publishes a revised form reflecting ethnicity and racial designations to dovetail with the new Freddie Mac/Fannie Mae form. Revised Application Form Fannie Mae Guide Recent Reg B Amendments 5/6/03

  • Corporate Governance and Non-Public Financial Institutions

    The FRB, OCC and OTS have issued a joint statement regarding whether or not the agencies expect small, non-public banking organizations to comply with Sarbanes-Oxley and the corporate governance proposals from the NYSE and NASDAG. FRB Statement    FRB SR 03-08 OCC release 5/6/03

  • FinCEN Provides More AML Help to MSBs

    Three guides are available on FinCEN's sight to help the anti-money laundering efforts of Money Services Businesses. The three guides cover Bank Secrecy Act Requirements,Reporting Suspicious Activity, and Money Laundering Prevention. MSB Guides 5/6/03

  • Online Consumer Vehicle Leasing Guide

    The FRB has made available on its Web site a quick consumer guide regarding closed-in leases. The guide is designed to help consumers compare offers and negotiate leases that best fit their needs. A sample lease form is included, along with a glossary of common leasing terms. Leasing Guide 5/6/03

  • FedLine Web Services Enhanced

    Starting May 12, 2003, several new FedLine services will be available online. They include automated branch set-up, cash orders armored carrier selection and validity edits for currency amounts.FRB Services 5/6/03

  • Fake Instruments Alert

    The OCC has issued a Fictitious Financial Instruments Alert regarding worthless sight drafts, bills of exchange, due bills and redemption certificates. Included in the alert are instructions for handling such instruments if they are presented. OCC Alert 5/6/03

  • Securities and Commodities AML Proposed Rules Published in Federal Register

    Treasury and FinCEN have published in the Federal Register three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. [This was previously announced on BOL]. Commodities    Futures Commission Merchants    Investment Advisers 5/5/03

  • All Assets of Firm Blocked

    All property and interests in property of TRANSPORTING, LLC, wherever located, have been blocked by OFAC pending a narcotics trafficking investigation. Although the company is not now an SDNT, its name has been integrated into OFAC's SDN list. For more information, see the summary on the BOL OFAC page.Summary 5/5/03

  • Additional OFAC CMP Information Revealed

    The weekly release of information regarding civil money penalties issued by OFAC now includes the year the violation occurred and more detail on the type of violation. The current report lists two violations by Deutsche Bank A.G. that occurred in 1999 and 2000. OFAC CMP5/5/03

  • Deposit Insurance Premiums May Increase

    Chairman Powell, in a presentation before the Nebraska Bankers Association, noted that the Bank Insurance Fund is very close to the 1.25 premium trigger. He indicated that the FDIC can never rule out surprises that would force the FDIC to charge high premiums on the industry at the worst possible time.FDIC PR-40-2003 5/5/03

  • Open Meeting Scheduled

    The FDIC has announced that an open meeting of the Board will be held in Washington, D.C. on May 7, 2003. Agenda items include: BIF assessment rates, SAIF assessment rates and a resolution regarding deposit insurance coverage of Living Trust accounts.FDIC Notice 050703 5/5/03

  • Online Report Form Instructions

    The instructions for completing the March 030 Form, Foreign Branch Report of Condition, are now available online at the FFIEC website.FFIEC 030 5/2/03

  • Small CU Working Group Formed

    NCUA has announce the creation of an internal working group that will identify problems peculiar to small credit unions and suggest possible options to increase their competitiveness and financial stability. NCUA NR03-0502 5/5/03

  • New SAR Form

    FinCEN has released a new SAR Form and new Specifications for the Magnetic Media Filing of SARs. Please note the new SAR form is NOT to be used until July 1, 2003. The new forms have added two categories of suspicious activity, Terrorist Financing and Identity Theft, in box 35. The current SAR form will not be accepted after December 31, 2003. SAR Form    Magnetic Media Specifications 5/2/03

  • FRB Written Agreement With Ohio Bank

    The Federal Reserve Board on Thursday announced the execution of a Written Agreement by and among The First State Bank of West Manchester, West Manchester, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions regarding the management and lending policies of the bank.Written Agreement 5/2/03

  • $3 Billion Visa/MC Debit Card Settlement

    Just hour before a class action lawsuit was scheduled to go to trial, Visa reached a $2 billion settlement with Wal-Mart and thousands of other retailers who claimed they had been damaged by the forced acceptance of Visa and MasterCard branded debit cards. The retailers also contended were forced to pay "'unjustifiably high fees" on the cards. MasterCard had reached a $1 billion settlement with the retailers earlier in the week. Read more about the case in the "Cases In The News" section of BOL Court Watch where BOL has been monitoring the progress of the case. Cases In The News 5/2/03

  • G.5 Foreign Exchange Rates Released

    The FRB has released the May I, 2002 G.5 table which shows the average foreign rates of exchange in April 2003 with comparable figures for other months.FRB G.5 5/2/03

  • Comments Make Difference: Altered CIP Rules Released

    The regulators have issued the long awaited final rules implementing section 326 of the USA PATRIOT Act that require financial institutions to establish procedures to verify the identity of new customers. Numerous changes were made to the initial proposal, in part due to the comments received from financial institutions. For an analysis, read the BOL article, "CIP FINAL RULES: 10 Quick Changes" on the USA PATRIOT Act page. Section 326 Final Rules 5/1/03

  • HSBC Bank USA Written Agreement

    The Federal Reserve Board has announced the execution of a Written Agreement by and among the HSBC Bank USA, Buffalo, New York, the Federal Reserve Bank of New York, and the New York State Banking Department regarding the bank's compliance with the provisions of the Bank Secrecy Act and Reg H.Written Agreement 5/1/03

  • Basel Accord Comments Sought

    The Basel Committee on Banking Supervision has released for comment its third consultative paper on the new Basel Capital Accord. The OCC, FRB and FDIC plan to issue an Advance Notice of Proposed Rulemaking (ANPR) in the next few months. The ANPR will be based on the Committee's paper and will focus on how the U.S. agencies intend to implement domestic changes that reflect the specific nature of U.S. banks and banking. Comments must be submitted by July 31, 2003.Basel Committee    OCC    FRB    FDIC    FDIC FIL-31-2003 5/1/03

  • Treasury Issues May 2003 Quarterly Refunding Statement

    The May 2003 Quarterly Refunding Statement was announced by Assistant Secretary Roseboro along with future auction schedule changes regarding the auction of 5-year notes on a mid-monthly basis and the reopening of 10-year notes on an intra-quarterly basis. Treasury JS-223 5/1/03

  • Optimism Exists Despite Weak Economy

    Weakness in the economy exists, but there are reasons for optimism according to a report issued by Treasury Borrowing Advisory Committee to the Secretary of the Treasury. Weakness in the key sectors of consumption, investment, and government spending resulted in economic growth nearly three quarter of a point below expectations, but consumer confidence has begun to improve. Treasury JS-224 5/1/03

03/31/2003

Top Stories for April 2003

  • Standards for Treasury Check Indorsements and Losses

    The Department of the Treasury Financial Management Service has published an advance notice of proposed rulemaking on revisions to its regulations (31 CFR 240) governing the indorsement and payment of checks drawn on the United States Treasury. The regulations provide how checks may be indorsed, and remedies when checks are lost or stolen, and then subsequently negotiated by someone other than the intended payee. In instances where losses occur, such as when a check bearing a fraudulent indorsement is paid, the regulations provide for the allocation of losses between the Government and indorsers of the check. Txt version of ANPR     PDF version of ANPR 4/30/03

  • BANKFIRST Written Agreement

    The FRB has announced the execution of a Written Agreement by and among BANKFIRST Corporation, Sioux Falls, South Dakota, a registered bank holding company, and its subsidiary bank, BANKFIRST, also of Sioux Falls, South Dakota, and the Federal Reserve Bank of Minneapolis regarding banking practices relating to credit card operations. Written Agreement 4/30/03

  • Securities and Commodities AML Rules Proposed

    Treasury and FinCEN have issued three separate proposed rules under the USA Patriot Act that would expand anti-money laundering regulation to commodity trading advisors and securities investment advisers, as well as require suspicious activity reporting by futures commission merchants. Treasury JS-333   Investment Advisors    Commodity Trading Advisors    BSA Amendment 4/30/03

  • High Marks for NCUA Exam

    The results of a NCUA survey regarding a risk-focused examination program indicate that the program, which was introduced in fall 2002, has been well received. Highest marks were given for examiners' conduct, the overall examination process and effective communication during the examination. NCUA Survey 4/30/03

  • Texas Banker Subject of Removal and Civil Money Penalty

    The FDIC has issued a removal and probation order in addition to imposing a $5,000 civil money penalty against former Texas banker, Mary Gonzales. She allegedly made unauthorized loan and credit card advances in violation of bank policies; concealed delinquent loans from the bank's board of directors; issued herself a credit card and increased the credit limit on an existing bank credit card without the necessary approval and in violation of Regulation O; and concealed the failure on her part to pay delinquent payroll taxes. FDIC Pr-38-2003 4/29/03

  • Investment Research Scandal Leads to Major Penalties

    The SEC, New York Attorney General, North American Securities Administrators Association, NASD, New York Stock Exchange, and state securities regulators announced the settlement of enforcement actions against ten of the nation's top investment firms resulting in $875 million in penalties and disgorgement. The firms, which included Citigroup Global Markets Inc. f/k/a Salomon Smith Barney Inc.; J.P. Morgan Securities Inc.; and U.S. Bancorp Piper Jaffray Inc.; were alleged to have engaged in acts and practices that created or maintained inappropriate influence by investment banking over research analysts, thereby imposing conflicts of interest on research analysts that the firms failed to manage in an adequate or appropriate manner.Joint Release 4/29/03

  • Basel II Risk Management Objectives

    The objectives relating to risk management of the Basel II proposal were discussed by FRB Vice Chairman Ferguson in a presentation at the Risk Management Workshop for Regulators, The World Bank, Washington, D.C. Ferguson Speech 4/29/03

  • Treasury Economic Update

    An overview of the current state of the economy was given by Treasury Assistant Secretary Clarida to the Treasury Borrowing Committee of the Bond Market Association. He noted the economy continued to grow over the last three months but at a pace short of its potential. The war in Iraq, higher oil prices, and an unusually severe winter restrained economic activity. Clarida Speech 4/29/03

  • Second Quarter $79 Billion Borrowing Expected

    The Treasury Department announced that it expects to borrow $79 billion in marketable debt during the second quarter and to target a cash balance of $45 billion on June 30. The increase in borrowing is due to lower receipts, higher outlays, placement of additional compensating balances and a lower cash balance at the beginning of the quarter. Treasury JS332 Charts 4/29/03

  • $72,200 OFAC Civil Penalty Imposed

    OFAC has released its weekly report of civil penalties enforcement activities. The latest report contains the largest civil money penalty imposed against a financial institution since the weekly report was started three weeks ago. A voluntary disclosure by a financial institution of a violation of the export provisions of the Cuba sanction program resulted in the imposition of a settled penalty of $72,200. OFAC 4/28/03

  • FinCEN Advisories Withdrawn

    FinCEN has withdrawn Advisory 16 regarding Dominica and Advisory 31 regarding Grenada. The enhanced scrutiny of transactions involving the countries, as called for by the advisories, is no longer necessary. Dominica 16W    Grenada 31W 4/28/03

  • FRB G.20 Report

    The FRB has released the February 2003 G.20 Report containing information regarding owned and managed receivables and auto loans terms of credit. G. 20 Report 4/28/03

  • FinCEN Responds to Ruling Request

    FinCEN has responded to a request for a ruling that a bank be considered neither a "foreign shell bank" nor a "foreign bank", or, in the alternative, be granted an exemption. FinCEN Ruling 2003-2 4/28/03

  • FDIC Corporate Sector Roundtable Held

    The FDIC hosted its second economic roundtable this year, this time for the corporate sector. The focus was on job growth and what can be done to help get the U.S. economy moving forward. FDIC PR-36-2003 4/25/03

  • FRB Governor Addresses Loan Guarantee Programs

    In a speech before the National Economists Club, Fed Governor Gramlich addressed the subject of loan guarantee programs. Gramlich Speech 4/25/03

  • New Economic Papers Posted

    Three new papers have been posted online by the Federal Reserve as part of the Finance and Economics Discussion Series. They address "Market Structure and Quality", "Spillovers Across U.S. Financial Markets", and "New Evidence on the Interest Rate Effects of Budget Deficits and Debt". 2003 FEDS Papers 4/25/03

  • Business Bounce Back Addressed by FRB's Bernanke

    In a speech to the Forecasters Club in New York City, FRB Governor Ben Bernanke lent his perspective to the economy and the issue of whether business investment will bounce back. Bernanke Speech 4/25/03

  • FDIC Announces Administrative Enforcement Actions

    The Federal Deposit Insurance Corporation has released a list of orders of administrative enforcement actions taken against banks and individuals in March. The FDIC processed a total of 10 orders in March. These included five cease-and-desist orders, two civil money penalty orders, two terminations of cease-and-desist orders, and one adjudicated decision. PR-37-2003 4/25/03

  • SEC Acts on Electronic Filing and Auditor Issues

    The Securities and Exchange Commission voted to require that reports by insiders disclosing their securities holdings be filed electronically with the SEC. It also voted to adopt rules prohibiting company officials from improperly influencing auditors of financial statements. SEC RELEASE 2003-51 4/25/03

  • Interagency Internal Audit Guidance Issued

    The FRB, FDIC, OCC and OTS have issued an amendment to their policy statement, Internal Audit Function and its Outsourcing, which provides guidance regarding the independence and effectiveness of an institution's internal audit function.FRB SR 03-5    FRB Statement 4/24/03

  • Risks of Weblinking Guidance

    The OTS, OCC, FDIC and NCUA have issued a joint guidance on the risks of weblinking to assist institutions in the identification and managing of the potential risks involved if the institution places weblinks to other websites on its Web Page. This subject was discussed in a Special BOL Compliance Briefing issued yesterday. If you are not receiving the free BOL briefings, sign up here. OTS 03-15    OTS TB 83    FDIC PR-34-2003    FDIC Statement    FDIC FIL-30-2003    NCUA PR    NCUA Letter 03-CU-08    OCC Bulletin 4/24/03

  • Guidance Issued Regarding Golden Parachutes

    The FRB has issued a guidance regarding certain restrictions imposed on the issuance of severance packages known as "golden parachutes" and the appointment of any new senior executive officer or director by any institution in a "troubled condition".FRB SR 03-6 4/24/03

  • April 2003 Beige Book Issued

    The FRB has published the April 23, 2003 issue of the Beige Book which contains summaries of the economic conditions in each of the twelve Federal Reserve Districts.
    Beige Book 4/24/03

  • OCC Gives Bank Go-Ahead for New Transactions

    In Interpretive Letter #962, the Office of the Comptroller of the Currency gave conditional approval for a bank to expand customer-driven financial intermediation transactions in electricity derivatives to include transitory title transfers. OCC Interpretative Letter #962

  • OCC Issues Proposed Rule to Amend Regulations Pertaining to Foreign Operations

    The proposed rule would clarify certain regulatory definitions and simplify approval procedures for foreign banks seeking to establish Federal branches and agencies in the United States. These proposed changes will further conform the treatment of Federal branches and agencies of foreign banks to that of their domestic national bank counterparts consistent with the national treatment principles of the International Banking Act. 68FR19949 (txt) 68FR19949 (pdf) 4/23/03

  • Flood Violation Civil Money Penalty Assessed

    The FRB has announced the assessment of a Civil Money Penalty in the amount of $3,850 against the First Farmers Bank and Trust, Converse, Indiana. The consent Order of Assessment resulted from alleged violations of Reg H and the National Flood Insurance Act. FRB Order 4/23/03

  • OCC Revises Audit Handbook

    The OCC has published a revision to its "Internal and External Audits" handbook which clarifies the expectations of the OCC regarding national bank audits. The update includes changes resulting from the Sarbanes-Oxley Act, new SEC rules and regulations, and the revised "Interagency Policy Statement on Internal Audit and Its Outsourcing". Handbook Introduction   Supplemental Examination Procedures    Appendixes 4/23/03

  • Error In Briefing

    In the text of yesterday's Compliance briefing article titled, "BSA Compliance Subject of Written Agreement", the bank involved was misidentified as Pioneer Bank of Denver, Colorado. The correct name of the bank is Premier Bank. BankersOnline.com regrets the error and any confusion it may have caused. 4/23/03

  • Help Your MSB Customers

    If you have customers which are Money Services Businesses, you may want to pass along notice to them that FinCEN is making available through its Web site an order form for free materials to help Money Services Businesses understand and comply with new federal laws and regulations on money laundering. FinCEN Order Form 4/23/03

  • Double Taxation of Corporate Dividends

    Learn the view of the Treasury Department on this hot topic from the comments of Deputy Assistant Secretary Zerzan before a meeting of the Vineland, New Jersey Chamber of Commerce. He noted that currently the United States is one of only three countries in the developed world that treats dividends as fully taxable. Treasury JS-208 4/23/03

  • BSA Compliance Subject of Written Agreement

    The FRB announced a Written Agreement with Premier Bank of Denver, Colorado. The bank is required to establish adequate BSA internal controls, arrange for independent compliance testing, designate a qualified officer responsible for BSA compliance, and conduct regular employee training. In addition, the bank is to retain the services of an independent accounting firm to conduct a complete forensic audit of the bank's BSA compliance since August 1, 2002. FRB Enforcement 4/22/03

  • Financial Holding Company List Update

    The FRB has released an update of its Financial Holding Company List which contains those bank holding companies that have elected to be treated as financial holding companies under the provisions of the Bank Holding Company Act. FRB FHC 4/22/03

  • FedACH Services Online

    The FRB has announced it is now possible to use the web to track, research and account for an institution's FedACH activity. Starting May 19, 2003, receiving depository financial institutions will also have the ability to return ACH payments and forward change information by way of FedLine for the Web. Operating Circular 4 is being amended effective May 18, 2003. to accommodate the changes. FRB Services FRB Operating Circular 4 4/22/03

  • Greenspan Cancer Test Negative

    FRB Chairman Greenspan is being treated for an enlarged prostate, but tests were negative for prostate cancer. He plans to resume work later this week. FRB PR 4/22/03

  • April OCC Interpretations and Actions Online

    The OCC has announced that the April 2003 issue of the Corporate Applications report is available online. The report covers Interpretive Letters, No-Objection Corporate Decisions, CRA Decisions and Conditional Approvals.OCC 4/21/03

  • Treasury 2002-2003 Priority Guidance Plan Updated

    Treasury has announced the Third Quarterly Update of its 2002-2003 Priority Guidance Plan. The plan is updated to reflect additional guidance that Treasury intends to publish during the plan year. The update contains 45 additional guidance items. Treasury PR Guidance Plan 4/21/03

  • OCC Announces 16 Enforcement Actions

    Sixteen Enforcement Actions were announced by the OCC involving five banks and seven individuals. Civil money penalties ranging from $2,000 to $20,000 were assessed. The largest amount was imposed against a loan officer who was also banned from banking for transferring over 2,200 customer loan files via an unsecured Internet connection to a third party. For more information on that matter see our BOL Article, "InfoSec Violations Result in Ban from Banking"   OCC NR 2003-31 4/18/03

  • 48 CRA Evaluations Released

    The OCC has released the CRA evaluations for forty-eight national banks. Of the banks evaluated, seven were rated outstanding and forty-one received a satisfactory rating. OCC NR 2003-32 4/18/03

  • FDIC Corporate Sector Roundtable

    The FDIC Corporate Sector Roundtable will be held on April 24, 2003, at the JP Morgan Chase Conference Center in New York City. Topics to be discussed include: where we are in the corporate credit cycle; the status of previously troubled industry sectors; and predictions as to which sectors may lead the recovery or experience a new round of problems. FDIC Notice041703 4/18/03

  • HOEPA APR Reference Rates for May Released

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in May will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB Daily Rates   FRB Weekly Rates 4/17/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has updated its list of approved service providers to Cuba. FDIC FIL-28-2003 4/17/03

  • Counterfeit Cashier's Checks Special Alert

    The Federal Deposit Insurance Corporation has announced that counterfeit cashier's checks drawn on Pioneer Bank, Baker City, Oregon, are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. 4/17/03

  • Regulatory Reorganization, Predatory Lending and Preemption

    Learn the views of Comptroller Hawke regarding these important issues from his remarks before the Exchequer Club. He observed the current bank regulatory structure offends all of our aesthetic and logical instincts, but it works. He also indicated the OCC is currently reviewing the applicability to national banks of a state law regarding predatory lending that has been determined by the OTS to not apply to federally chartered saving institutions. Speech    4/17/03

  • Money Smart Welcomes DeKalb County Georgia

    The FDIC announced that the DeKalb County Georgia First Accounts program will utilize the Money Smart as the curriculum to educate consumers to improve their ability to make informed choices about financial matters and effectively manage their personal finances. FDIC MS-09-2003 4/17/03

  • FFIEC 2002 Annual Report Available Online

    The FFIEC has made its 2002 Annual Report available on its Web site. FFIEC 2002 Annual Report     Other FFIEC Reports 4/17/03

  • Proposed AML Action Against Nauru

    FinCEN has announced a notice of proposed rulemaking that would require U.S. financial institutions to terminate correspondent accounts involving Nauru financial institutions. FinCEN PR 68FR18917 4/16/03

  • Ukraine's ML Designation Rescinded

    FinCEN has rescinded the designation of the Ukraine as a Primary Money Laundering Concern. However, the existing guidance issued by FinCEN or obligations arising under the Bank Secrecy Act with respect to accounts and transactions involving Ukraine are still in effect. Furthermore, Ukraine remains on the non-cooperative countries and territories list of the Financial Action Task Force. FinCEN PR 4/16/03

  • OFAC Change FIL

    The FDIC has issued a FIL notifying state-chartered banks about the March 27 additions to the OFAC list of Specially Designated Narcotics Traffickers. [The OFAC change was previously announced on BOL.] FDIC FIL-27-2003 Attachment 4/16/03

  • Additional Terrorism Risk Insurance Regulations Announced

    The Treasury Department has announced the second set of regulations under the Terrorism Risk Insurance Act of 2002. The regulations address the disclosure requirements, the "make available" requirements, and the participation of state residual market insurance entities and state workers' compensation funds under the Act. Treasury PR   
    Terrorism Risk Insurance Program 4/16/03

  • FRB G.17 Report Released

    The FRB has released the April 15 edition of the G.17 Industrial Production and Capacity Utilization Report. FRB G.17 4/16/03

  • Marketing to Minority Customers Discussed

    Comptroller Hawke, in a presentation before the Consumer Bankers Association, noted that that the banks that have been most successful in minority communities are those that took time to research the market and to develop local partnerships. He also observed that banks should not underestimate the willingness of low-income and minority customers to obtain banking services electronically.
    OCC NR2003-29   Speech 4/16/03

  • FDIC Advisory Committee To Hold Meeting

    The FDIC announced that meeting of the FDIC Advisory Committee on Banking Policy will be held on April 22 at the FDIC's Seidman Center in Arlington, Virginia. Presentations involving issues affecting the FDIC's regional and field structure; effective supervision and capital regulation; and the ongoing Future of Banking Study will be discussed at the meeting which is open to the public. FDIC PR33-2003    Advisory Committee Information 4/16/03

  • State Profiles From FDIC

    The FDIC has released the Spring 2003 update of banking and economic conditions for each state.
    FDIC Profiles 4/16/03

  • OFAC Civil Penalties Revealed

    OFAC has made its weekly release regarding OFAC violations and the resulting civil penalties or informal settlements. The only bank listed, the State Bank of India, was cited with a Yugoslavian funds transfer violation resulting in a $5,500 settlement. (For an article about the more extensive penalties announced the prior week, see BOL's article "Lessons from OFAC Civil Penalties") OFAC Penalties 4/15/03

  • Revised OCC Manuals Available Online

    The OCC has revised the "Change in Bank Control" and "Branch Closings" booklets in the Licensing Manual series and placed them on the OCC Web site. Change in Bank Control     Branch Closings 4/15/03

  • New York City Joins Money Smart

    The FDIC has announced that New York City has join the Money Smart Alliance Program and the Office of the City Comptroller is hosting Train-the-Trainer workshops for volunteer instructors. FDIC MS-088-2003 4/15/03

  • OCC Issues Interim Rule to Permit National Banks to make any Class of Licensing Filings Electronically

    Its purpose is to facilitate the expansion of the OCC's e-Corp program. The e-Corp program, which began as a pilot project to enable participating national banks to make certain types of licensing filings electronically, has been made available to all national banks through the OCC's National BankNet web site. The rule furthers the OCC's objectives of reducing regulatory burden for national banks and improving the agency's efficiency in processing filings through increased use of electronic technology. 68FR17890 (txt) 68FR17890 (pdf) 4/14/03

  • Tutorial on LOMAs and LOMR-Fs

    On FEMA's Web site, you can now access a tutorial series that explains the Letter of Map Amendment (LOMA) and Letter of Map Revision Based on Fill (LOMR-F) application processes, including all necessary forms and information. There is also an online tool to complete portions of the required forms for single-lot/structure requests. LOMA / LOMR-F Tutorial Series 4/14/03

  • Comment Online On FRB Proposals

    The FRB has issued for comment a proposal to extend for three years the following reports: Report of Transaction Accounts, Other Deposits, and Vault Cash (FR 2900); Annual Report of Total Deposits and Reservable Liabilities (FR 2910a); Report of Repurchase Agreements (RPs) on U.S. Government and Federal Agency Securities with Specified Holders (FR 2415); Monthly Survey of Industrial Electricity Use (FR 2009a,b,c); without revision: Allocation of Low Reserve Tranche and Reservable Liabilities Exemption (FR 2930/2930a); Report of Foreign (Non-U.S.) Currency Deposits (FR 2915); and the discontinuation of: Report of Certain Eurocurrency Transactions (FR2950/2951). The closing date for comments is June 17, 2003 and comments may be submitted online. Proposal    Electronic Comment Form 4/14/03

  • FinCEN's Anti-Terrorism Activities

    Learn about how the role of FinCen has expanded to combat terrorism from the comments of Director Sloan before Subcommittee on Oversight and Investigations. He observed that the financial channels of terrorism have created an urgency for seeking greater cooperation among governments, law enforcement, regulators and regulated industries to share and disseminate information. Speech 4/14/03

  • IRS To Handle BSA FBAR Filing Compliance

    The IRS and FinCEN announced an agreement under which FinCEN delegated its BSA enforcement authority for Foreign Bank and Financial Account reporting to the IRS. IRS Release 4/11/03

  • FFIEC 002 Report Form Online

    The March 2003 FFIEC 002 Report of Assets and Liabilities of U. S. Branches and Agencies of Foreign Banks and the Instructions for Preparation have been placed on the FFIEC Web page. FFIEC 002     Instructions 4/11/03

  • How Did Banks Post Record 2002 Earnings?

    Banks posted record earnings of more than $100 billion in 2002. FDIC Chairman Powell provides his insight on how this was accomplished in spite of a sluggish economy in remarks before the Federal Reserve Bank of Atlanta. Speech 4/11/03

  • More on Basel II

    Learn the implications of Basel II for second tier and community banks from a presentation by FRB Governor Olson at the 2003 Banking Institute, Center for Banking and Finance, of the University of North Carolina. He noted it would be as inappropriate to require the smallest banks to adopt techniques designed for megabanks as it would to limit the largest banks on the basis of the capacity and capability of the smallest.Speech 4/11/03

  • FDIC's First Quarter Activities Revealed

    The FDIC has published its fourth Letter to Stakeholders, which reports priorities and activities for the first quarter of 2003. The FDIC's three priorities for 2003 - stability, sound policy, and stewardship are addressed.FDIC FIL-26-2003     Letter 4/11/03

  • Importance of Bond Auctions Discussed

    The important role the auction process plays in reducing the cost of borrowing was explained by Treasury Deputy Assistant Secretary Bitsberger in remarks to the Bond Market Association. He noted that on a daily basis approximately $350 billion in Treasuries change hands and last year $3.8 trillion in securities were auctioned. Treasury JS-173 4/11/03

  • The Ugly Faces of Identity Theft

    The consequences this crime has on its innocent victims are discussed by Treasury Assistant Secretary Abernathy at the 2003 Banking Institute of the University of North Carolina School of Law Center of Banking and Finance. He remarked that a crook can take a person's good name and use it to open new accounts that they know nothing of, with the statements going to places they have never been, so that weeks and months pass without their knowledge of the fraud. In addition, it can take victims as many as 175 man hours to clear their name and records. Treasury JS-177 4/11/03

  • Federal Register Publishes Business Continuity Planning Post-September 11

    Learn the recommendations of the FRB, OCC and SEC in the ""Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" issued jointly by the agencies. [This was previously announced on BOL] 68FR17809 (txt) 68FR17809 (pdf) 4/11/03

  • FinCEN Publishes AML Proposal for RE Closings and Settlements

    Under the USA PATRIOT Act, the definition of "financial institutions" subject to the AML program requirement was expanded to include persons involved in real estate closings and settlements. In this advanced notice of proposed rulemaking, FinCEN solicits comments relating to applying the AML program requirement to such activities. 68FR17569 (txt) 68FR17569 (pdf) 4/10/03

  • FDIC Updates Call and Thrift Reports Instructions

    The FDIC has published a March 2003 update to the Reports of Condition and Income Instructions for report forms FFIEC 031 and 041. FDIC Resources    Call Report Instruction Book    Forms 4/10/03

  • FRB Basel II Update

    The Basel Committee has proposed the implementation of Basel II to replace the current Basel I. Learn the views of FRB Vice Chairman Ferguson regarding the status of the proposal and where it is headed. In comments before the Risk Management Association's Conference on Capital Management, he remarked that the FRB concluded that the greatest potential benefit of Basel II was found in the most advanced versions--the Advanced IRB for credit risk and the AMA for operational risk. Speech 4/10/03

  • FDIC CRA Examination Results

    The Federal Deposit Insurance Corporation has issued its monthly list of state nonmember banks recently evaluated for compliance with CRA. The list covers evaluation ratings that the FDIC assigned to institutions in January 2003. FDIC PR3103    FDIC CRA List 4/9/03

  • Credit Card Issuer Fraud Settlement

    The FTC announced that Robert Barr and Candace Rodriguez, principals of Westcal Equipment, doing business as Pioneer First and PF Member Services, Inc., have agreed to settle federal charges that they engaged in fraudulent business practices. The defendants advertised nationally on cable TV the Pioneer First Platinum credit card which guaranteed a $5,000 credit limit and 0 percent interest for 12 months to anyone who was a legal U.S. resident, at least 18 years old, and had a checking account. Applicants were required to pay a $ 189 fee for a catalog card that did not function as a credit card. FTC Release    Order 4/9/03

  • Business Continuity Planning Post-September 11

    Learn the recommendations of the FRB, OCC and SEC in the ""Interagency Paper on Sound Practices to Strengthen the Resilience of the U.S. Financial System" issued jointly by the agencies. Paper - FRB    OCC    SEC   FRB PR    OCC Release 2003-28    OCC Bulletin 2003-14    SEC PR2003-45 4/9/03

  • Act Authorizes Check Processing Technology

    Congress is considering the Check Clearing for the 21st Century Act which removes existing legal barriers to the use of new technology in check processing. Learn the opinion of the FRB in the testimony of Vice Chairman Ferguson before a House subcommittee. He indicated the Act will improve the efficiency and reduce the cost of the nation's check collection system while providing better services to bank customers. Testimony 4/9/03

  • InfoSec Compromised - Bankers Barred and CMP Assessed

    The OCC has permanently barred two former bank officers from banking and assessed civil money penalties of $20,000 and $10,000. James Earl Smith and Vicki Boutilier, who were officers of Grand Valley National Bank, Grand Junction, Colorado, emailed over 2,220 customer loan files to a third party. In addition to the permanent removals and civil money penalties, if Mr. Smith or Ms. Boutilier apply for a job where they would be handling NPI they are required to disclose the enforcement action to future employers. Read our article: "InfoSec Violations Result in Ban from Banking"    OCC NR 2003-27    Smith Consent Order    Boutilier Consent Order 4/8/03

  • OFAC Change Bulletin

    The Treasury issued an OFAC change designating KHAN RESEARCH LABORATORIES, Pakistan, as subject to the import ban of Weapons of Mass Destruction Trade Control Regulations and made available a redacted letter on the OFAC Web site. The information has been placed on the BOL OFAC page. Treasury 20030407 4/8/03

  • FDIC Issues Alert in Stolen $1,000,000 Checks

    The Federal Deposit Insurance Corporation announced that six $1,000,000 official checks drawn on Interbank of New York, New York, New York, and payable through Huntington National Bank, Columbus, Ohio, were stolen. In addition, counterfeit cashier's checks drawn on both the Bank of Mount Hope, Mount Hope, West Virginia, and the Affinity Federal Credit Union, Basking Ridge, New Jersey, are in circulation. The information has been added to the BOL Alert & Counterfeits page. 4/8/03

  • February G.19 Report Released

    The Federal Reserve Board has issued the February 2003 G.19 Consumer Credit Report which indicates that consumer credit rose at an annual rate of 1 percent in February following an 8-1/2 percent increase in January. FRB Release 4/8/03

  • Business Method Patents

    Learn about the public policies issues regarding business method patents from a presentation by FRB Vice Chairman Ferguson before the 2003 Financial Markets Conference in which he discussed a patent that was recently issued for a "system and method for conducting web-based financial transactions in capital markets." Speech 4/8/03

  • OCC Quarterly Journal Online

    The June, September, and December 2002 issues of the Quarterly Journal are now available online and contain information ranging from the "Condition and Performance of Commercial Banks" to staff interpretations. Quarterly Journal 4/8/03

  • OFAC Civil Money Penalties Revealed

    The Office of Foreign Assets Control has published its first set of OFAC civil penalties data on the Internet. This was done pursuant to a rule recently adopted by OFAC which calls for publication of penalty information every two weeks. [This was previously announced on BOL] OFAC 4/7/03

  • FinCEN 314(a) Response

    FinCEN has posted on its Web site their response to the BOL 314(a) Information Request letter. [This was previously announced on BOL] FinCEN Response 4/7/03

  • Online FFIEC March 31 Reporting Forms

    The FFIEC has made the following March 31, 2003 Reporting Forms available online: Form 009, Form 009a, Form 031 and Form 041. Form 009,    Form 009a,    Form 031,    Form 041,    Instructions    4/7/03

  • FTC Fights Pretexting

    The FTC's Annual Report to Congress features details of four enforcement actions filed against companies engaged in "pretexting" (obtaining a consumer's financial information by false pretenses). FTC Annual Report 4/7/03

  • Regulators Clarify GLB Section 305 Disclosures

    Responding to a request from the American Bankers Insurance Association and the American Bankers Association, the regulators indicate the disclosures required by section 305 of the Gramm-Leach-Bliley Act are not mandatory with respect to renewals of insurance policies sold prior to October 1, 2001. FDIC FIL-25-2003 4/7/03

  • CRA Investment Guide

    The FDIC has announced the issuance of a Community Development Investment Guide which provides information on permissible and CRA-qualified investments for financial institutions. Guide 4/7/03

  • Greenspan Discusses Market Economics

    Chairman Greenspan spoke before the 2003 Financial Markets Conference of the Federal Reserve Bank of Atlanta. He commented on the importance of state protection of individual rights to own property and the ways information technology has improved the ability of businesses to identify and address economic imbalances. Speech 4/7/03

  • Check Truncation Act Creates "Substitute Check"

    Congress is conducting hearings on the proposed Check Truncation Act. Learn about some of its provisions from the testimony of FRB Vice Chairman Ferguson. He noted, "The proposed legislation facilitates check truncation by creating a new negotiable instrument called a "substitute check," which would permit banks to truncate the original checks, to process the check information electronically, and to print and deliver substitute checks to banks and bank customers that want to continue receiving paper checks." FRB Testimony 4/04/03

  • Greenspan Stresses Importance of Financial Education

    FRB Chairman Greenspan stated, "Fostering education that will enable individuals to overcome their reluctance or inability to take full advantage of technological advances and product innovation in the financial sector can increase economic opportunity", during a presentation before the JumpStart Coalition's Annual Meeting in Washington, D.C. Chairman's Speech 4/04/03

  • FTC Combats Identity Theft

    The FTC is utilizing many different approaches to combat identity theft ranging from consumer education to bring enforcement actions against entities that fail to protect personal information. Learn more from the testimony of FTC officials which summarize the actions of the agency regarding identity theft. FTC PR ,     Presentation 1    Presentation 2 4/04/03

  • Reg Z Commentary Changes Published in Federal Register

    The revisions cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. [The change was previously announced on BOL] 68FR16185 (txt) 68FR16185 (pdf) 4/03/03

  • FinCEN Responds To BOL 314(a) Letter

    FinCEN Director James Sloan directly responded to the letter BOL sent to him last week containing comments and suggestions from BOL Users regarding 314(a) search requests. His response addressed questions ranging from formatting issues to the method of transmission of the requests. Among the items of interest to all financial institutions was his statement, "FinCEN is in the process of completely redesigning the 314(a) system to ease the burden on the financial institutions." BOL Letter,      FinCEN Response 4/03/03

  • Counterfeit Checks Special Alert Issued by FDIC

    The Federal Deposit Insurance Corporation has announced that counterfeit cashier's checks drawn on Lorain National Bank, Lorain, Ohio and counterfeit official checks drawn on Alpine Bank, Rifle, Colorado and The Columbia Bank, Ellicott City, Maryland are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. FDIC SA-18-2003 4/03/03

  • OFAC Change FIL

    The FDIC put out an FIL notifying state-chartered banks about the March 21 changes to the OFAC SDN list. [The OFAC change itself was previously announced on BOL] FDIC FIL-24-2003 4/03/03

  • Considering the Elimination of Mexican Remittance Fees?

    Read the comments of a Treasury Official applauding Bank of America's announcement that it has reduced its remittance fees for non-customers to send money to Mexico. Treasury JS-155 4/03/03

  • House Passes FDIC Reform Act - Regulators' Comments

    FDIC Chairman Powell Treasury stated, "We're pleased the House resoundingly passed a deposit insurance reform bill today that is good for the American people, good for our country's banking industry and good for the FDIC." Treasury Under Secretary Fisher also supported the action and commented, "We share the goals of improving the operation of the system to ensure its long-term strength and soundness, promoting the important role of banks in our nation's economic growth." FDIC PR 30-2003     Treasury JS-154     4/03/03

  • G.15 Foreign Exchange Rates For March 2003

    The FRB has issued the March 2003 edition of the monthly G.15 Foreign Exchange Rates Statistical Release. FRB Release 4/03/03

  • Sarbanes-Oxley Compliance Required To List Stock

    The Securities and Exchange Commission has adopted rules directing the national securities exchanges and national securities associations to prohibit the listing of any security of an issuer that is not in compliance with the audit committee requirements established by the Sarbanes-Oxley Act of 2002. SEC PR 2003-43 4/2/03

  • Race Discrimination Fair Lending Models Reviewed

    An OCC study on race discrimination in mortgage lending utilized information obtained during fair lending examinations to replicating a bank's underwriting process. It found the use of variables customarily omitted from fair lending models would have affected estimates of the effect of race on mortgage decisions, predictions of the probability of denial, and identification of outliers for manual review. OCC Workpaper 4/2/03

  • FFIEC Names New Officers

    OTS Director James Gilleran has been named Chairman and NCUA Chairman Dennis Dollar has been named Vice Chairman of FFIEC.
    FinCEN PR 4/2/03

  • FDIC Transmits 3/31/03 Call Report Materials

    The FDIC has transmitted materials relating to the upcoming March 2003 Call Reports. Certain revisions to the Call Report are scheduled to take effect this quarter. The principal changes involve the reporting of insurance-related income, the transactional capability of bank Web sites, credit enhancements for securitizations, accrued fees and finance charges on credit cards at banks with significant credit card activity, the fair values of derivatives at small banks with such contracts, and allocated transfer risk reserves. For the March 31, 2003, report date only, banks may report a reasonable estimate for any new or revised item for which the requested information is not readily available. FDIC FIL-23-2003 4/1/03

  • Contact Persons for PATRIOT Act Section 314(a)

    Beginning this quarter, the banking agencies will collect on the Call Report contact information for the persons who are in charge of your bank's anti-money laundering searches under Section 314(a) of the USA PATRIOT Act. FDIC FIL-23-2003 4/1/03

  • FRB Rounds Up Personal Financial Resources

    The Federal Reserve Board launched a new Web site which brings together resources from various Federal Reserve District Web sites dealing with personal financial matters. Subjects range from economic literacy to protection against fraud and scams.FRB Personal Financial Information 4/1/03

  • FRB Financial Services Updates Web Site

    On the updated Web site for FRB Financial Services, they have streamlined common tasks and provided more intuitive navigation. They have also updated the look to reflect their commitment to providing reliable and consumer-focused financial service.FRB Financial Services 4/1/03

  • FRB Agricultural Finance Databook Updated

    The Federal Reserve Board has released the March 2003 E.15 Agricultural Databook which contains farm loan characteristics, selected quarterly reports of condition, credit conditions and land values.FRB Release 4/1/03

  • More Regulatory Relief Act Information

    Learn more about the Financial Services Regulatory Relief Act of 2003 from the testimony of OCC First Senior Deputy Comptroller and Chief Counsel Julie Williams before the House Subcommittee on Financial Institutions and Consumer Credit.Testimony 4/1/03

02/28/2003

Top Stories for March 2003

  • Reg Z Commentary Changes Take Effect April 1

    The Federal Reserve Board issued a final rule revising the official Reg Z commentary.The revisions cover credit card- related fees, replacement of cards, disclosure of private mortgage insurance premiums and the selection of Treasury security yields for determining whether a mortgage loan is covered by Reg Z. The revisions are effective April 1, 2003 and the date for mandatory compliance is October 1, 2003. FRB PR20030328 Final Rule 3/31/03

  • Access to Telecommunications in the Event of Disaster

    Qualifying institutions may seek sponsorship for the Telecommunication Service Priority program. That program would give critical private-sector entities access to telephone service in the event of an emergency. OCC Bulletin 2003-13 3/31/03

  • Online Resource For Financial Research Announced

    The Federal Reserve Board announced the launch of an online resource for researchers, educators, program directors, and others interested in advancing financial education programs. The Financial Education Research Center was developed to promote excellence in financial education by encouraging research and disseminating information. FRB PR20030328 Research Center. 3/31/03

  • Chinese Version Of FDIC's Money Smart Introduced

    FDIC has announced the introduction of a Chinese version of its Money Smart program. Vice Chairman Reich also announced that the program will be available in Korean and Vietnamese later this year. Announcement 3/31/03

  • FFIEC Publishes Country Exposure Release

    The E16 Country Exposure Statistical Release has been published on the FFIEC Web site.FFIEC E16 3/31/03

  • FRB Announces Fifth Third Agreement

    The Federal Reserve Board announced the execution of a Written Agreement by and among Fifth Third Bancorp, Cincinnati, Ohio; the Fifth Third Bank, Cincinnati, Ohio; the Federal Reserve Bank of Cleveland; and the State of Ohio Department of Commerce, Division of Financial Institutions. Written Agreement 3/28/03

  • OCC Announces Decision and Agreements

    The Office of the Comptroller of the Currency announced a Decision regarding a Notice of Change in Bank Control and entering into a Formal Agreement with Household Bank (SB), National Association, Las Vegas, Nevada and the Termination of a Formal Agreement accompanied by the entering into an Operating Agreement with Direct Merchants Credit Card Bank, N.A., Scottsdale, Arizona.Household Change in Control   Household Formal Agreement    Direct Merchants Termination    Direct Merchants Operating Agreement 3/28/03

  • OFAC Adds New Cali Cartel Leaders & Businesses

    The Office of Foreign Assets Control added the names of two Cali Cartel leaders, twenty eight entities and twenty eight individuals to its list of Specially Designated Narcotics Traffickers. The drug cartel businesses added to the list of SDNTs today are all determined to be owned or controlled by Cali Cartel leaders. The information has been placed on the BOL OFAC page. Treasury JS-138 3/28/03

  • Treasury Official Highlights Iraqi Assets Actions

    The keynote address of the Securities Industry Association's Anti-Money Laundering Compliance Conference was delivered by Treasury General Counsel David D. Aufhauser. He reported that, "To date, more than 1,669 countries have pledged to block terrorist assets and, importantly, have agreed to pursue the intermediaries who facilitate the transfer of terrorist funds" and regarding Iraqi assets, "Hundreds of millions of dollars of previously unknown illegal proceeds have been uncovered abroad in a matter of days, and are now subject to seizure." Address 3/28/03

  • Regulators Testify Before Subcommittee

    The Financial Services Regulatory Relief Act of 2003 is in the works. Learn more about it from testimony delivered by Federal Reserve Board Governor Mark W. Olson and Federal Deposit Insurance Corporation General Counsel William F. Kroener, III before the House Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services. Olson's Testimony    Kroener's Testimony 3/28/03

  • OTS Urges Equal Thrift Security Law Treatment

    Testifying before the House Financial Services Subcommittee on Financial Institutions, the Office of Thrift Supervision Chief Counsel Carolyn Buck recommended the elimination of disparate treatment between thrifts and banks under the Investment Advisers Act and the Securities Exchange Act of 1934.Counsel Buck's Testimony 3/28/03

  • NCUA Issues Business Lending Rules

    The National Credit Union Administration Board has issued a proposed rule updating member business lending regulations for federally insured credit unions and a final rule revising federal credit union chartering and field of membership rules. Proposed Lending Rule     Revision To Membership Final Rule     Statement of Chairman Dollar    Statement of Vice Chairman Johnson     Statement of Board Member Matz 3/28/03

  • FDIC Announces 12 Enforcement Actions

    The Federal Deposit Insurance Corporation has released a list of twelve enforcement actions taken against banks and individuals in February, 2003. They include two cease-and-desist orders, two removal-and-prohibition orders, five civil money penalty orders, two terminations of cease-and-desist orders, and one termination of a suspension-and-prohibition order.FDIC PR-28-2003 3/27/03

  • NCUA Announces Measures To Fight Brokered CD Fraud

    The National Credit Union Administration announced a plan to increase the agency's oversight and better protect credit unions from brokered CD fraud. The plan involves requiring call report data to contain outstanding balances of brokered CDs, identification of credit unions with high concentrations of brokered CDs, additional guidance regarding due diligence reviews of brokers, the enhancement of AIRES investment work papers and additional training for examiners.NCUA NR03-0326 3/27/03

  • FDIC Warns of Counterfeit Official Check Scam

    The Federal Deposit Insurance Corporation has issued a Special Alert which provides a general outline of a nationwide scam involving counterfeit official checks. Customers and financial institutions have sustained losses from the fraudulent transactions. The scam involves unsuspecting sellers of high dollar items who receive counterfeit official checks as payments for the sale items. The counterfeit checks are payable in amounts that exceed the sale price and the seller is asked to deposit the counterfeit item and remit the excess funds by wire or cashier's check.FDIC SA-17-2003 3/27/03

  • FDIC Chairman Discusses Access To Capital in Emerging Markets

    Federal Deposit Insurance Corporation Chairman Powell spoke to participants at the National Community Investment Fund Annual Network Conference, Washington, D.C. The Chairman noted, " Banks that reach out to establish relationships with consumers participating in fringe financial services may be able to reap the rewards of cultivating new, full-service customers; building relationships that will improve with their economic circumstances." FDIC PR-2003-27 3/27/03

  • FDIC and CSBS Join Forces on Money Smart Program

    The Federal Deposit Insurance Corporation and the Conference of State Bank Supervisors announced that CSBS will promote and distribute the Money Smart financial education curriculum to each of the nation's state banking departments. FDIC MSPR-0006-2003 3/27/03

  • FDIC Issues FYI Regarding Derivatives Risk

    The Federal Deposit Insurance Corporation has issued an electronic bulletin which summarizes the FDIC's analysis of the derivatives risk in commercial banking.FDIC FYI-032603 3/27/03

  • FRB Releases Household Debt-Service Burden Data

    The Federal Reserve Board has issued a statistical release of the household debt-service burden, which is an estimate of the ratio of debt payments to disposable personal income. Federal Reserve 3/27/03

  • Secretary Snow Reacts to Budget Resolution Action

    Treasury Secretary Snow commended the passage of a budget resolution by the Senate, but noted the President's plan is still the best way to create jobs, provide economic security to American workers and families, and grow the economy for our future.Treasury JS135 3/27/03

  • OCC Issues Notice Of Issuance 314a Information Request Guidance

    The Office of the Comptroller has given notice to all national banks of the issuance of a FinCEN guidance regarding 314a Information Requests. The FinCEN notice was previously posted on Top Stories.OCC Alert 2003-6 3/26/03

  • FTC Announces Calendar for Implementation of the National Do Not Call Registry

    The Federal Trade Commission released its schedule for creating and implementing the national do not call registry, which will give consumers a choice about whether to receive most telemarketing calls. Beginning in July, consumers will be able to put their telephone numbers on the national registry, which telemarketers subsequently will be required to access. As of October, it will be illegal for most telemarketers to call a number listed on the registry.FTC News Release 3/26/03

  • FED Releases Quarterly Fedwire Data

    The Federal Reserve Board has released the 4th Quarter 2002 Fedwire and National settlement Services data. Federal Reserve Report 3/26/03

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 40 and 41), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:SA-16-2003 3/26/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons by adding the names of certain members of the Government of Zimbabwe and other related persons. [This was previously announced on BOL] FDIC:FIL-22-2003 3/26/03

  • FDIC and America's Community Bankers to Promote Financial Education Through ACB Member Banks Nationwide

    The FDIC and America's Community Bankers (ACB) announced that the two organizations will promote financial education through ACB's member banks across the country. The announcement was made by Don Powell, Chairman of the FDIC, and Diana Casey Landry, President and CEO of ACB, at a signing ceremony held at the FDIC's headquarters in Washington, DC. FDIC:MS-005-2003 3/26/03

  • FRB Governor Kohn Says Inflation Targeting Is Not Necessary

    In a speech at the National Bureau of Economic Research Conference on Inflation Targeting, Bal Harbour, Florida, Federal Reserve Board Governor Kohn took issue with comments made at the same conference by Marvin Goodfriend, Senior Vice President, Federal Reserve Bank of Richmond, who suggested that the United States would benefit from the adoption of an inflation targeting policy. Kohn stated "the success of U.S. monetary policy has in large part derived from its ability to adapt to changing conditions--a flexibility that likely has benefited from the absence of an inflation target". Kohn's Speech     Goodfriend's Presentation 3/25/03

  • OCC Names Deputy Comptroller For Credit Risk

    The Office of the Comptroller of the Currency announced that Barbara J. Grunkemeyer has been named Deputy Comptroller for Credit Risk. She will serve as the Comptroller's principal advisor on credit risk facing the national banking system. OCC NR2003-25 3/25/03

  • FinCEN Clarifies Section 314(a) Search Issues

    FinCEN has issued a notice to financial institutions regarding the 314(a) search requests that comes as a great relief. The notice states that if a search request extends beyond the general search requirements, an institution is not required to conduct the expanded search at this time if it can not be conducted electronically. It also notes that the programming problem which prohibited the inclusion of all aliases on the consolidated index has been corrected. Future indexes should include all subjects and aliases requested in the individual subject information forms. FinCEN Notice OCC: ALERT 2003-6 3/24/03

  • President Bush Vests Seized Iraqi Assets

    President Bush has issued on Executive Order which vests in the United States all assets of the Iraqi Government previously seized and held by financial institutions. The Secretary of the Treasury is directed to develop rules and regulations to carry out the provisions of the Executive Order. A link to the text of the Executive Order has been placed on the BOL OFAC Page. Executive Order 3/24/03

  • Treasury Adds Cali Cartel Entities to OFAC List

    The Treasury Department's Office of Foreign Assets Control added the names of nine businesses owned or controlled by Cali Cartel leaders and eight individuals to its list of Specially Designated Narcotics Traffickers. The information has been placed on the BOL OFAC page. 3/24/03

  • SEC Proposes Amendment to Sarbanes-Oxley CEO Certification

    The Securities and Exchange Commission has proposed amendments to its rules and forms which require companies provide corporate officer certifications under the Sarbanes-Oxley Act of 2002 as exhibits to periodic reports. SEC NR 2003-39 Proposed Amendments 3/24/03

  • San Francisco Fed and Barnes Banking Company Enter Written Agreement

    The Federal Reserve Bank of San Francisco announced the entering into a written agreement with Barnes Banking Company, Kaysville, Utah. The Bank has agreed to enhance and improve its policies and procedures regarding the Currency and Foreign Transaction Reporting Act, the Bank Secrecy Act and Regulation H.Federal Reserve PR20030321 Written Agreement 3/24/03

  • OCC Unveils Online Applications

    The Office of the Comptroller of the Currency announced a new service utilizing the e-Corp system which will allow national banks to electronically complete and submit branch and relocation applications.OCC NR 2003-24 3/24/03

  • OCC March 2003 Corporate Applications Released

    The Office of the Comptroller of the Currency has released the March 2003 edition of actions taken on corporate applications received by the OCC.OCC Corporate Applications 3/24/03

  • Counterfeit Checks Alert Issued by FDIC

    The Federal Deposit Insurance Corporation has learned that counterfeit trust checks drawn on McAllen National Bank, McAllen, Texas and counterfeit official checks drawn on Astoria Federal Savings and Loan Association, New York, New York are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page FDIC SA-15-2003 3/24/03

  • OFAC Issues Interim Rule to Amend the Cuban Assets Control Regulations

    The Office of Foreign Assets Control of the U.S. Department of the Treasury is amending the Cuban Assets Control Regulations, part 515 of chapter V of 31 CFR, to implement the President's Initiative for a New Cuba and to make certain technical changes and clarifications. 68FR14141 (txt) 68FR14141 (pdf) 3/24/03

  • FTC Halts Internet Mortgage Scam

    The Federal Trade Commission filed charges against 30 Minute Mortgage, Inc. alleging the company utilized a spamming operation that conned consumers into sharing personal financial data. The complaint contends there were violations of the FTC Act, the Truth in Lending Act, the Gramm-Leach-Bliley Act, and the FTC's Privacy Rule. The court is asked to bar the illegal practices permanently and order the return of ill-gotten gains. The assets of the company have been frozen, and it has agreed to halt the alleged deceptive practices until the court issues a final ruling on the FTC's allegations. 3/21/03

  • Six Enforcement Actions Announced By OCC

    The Office of the Comptroller of the Currency announced enforcement actions against Bank of Communications, New York Branch, New York, New York; Surety Bank, National Association, Fort Worth, Texas; Cumberland Valley National Bank & Trust Company, East Bernstadt, Kentucky; First National Bank of Northern Kentucky, Fort Mitchell, Kentucky; First National Bank of Littlefield, Littlefield, Texas; and James T. Lee, Littlefield, Texas. OCC NR2003-22 FTC Press Release Complaint Order 3/21/03

  • U.S. Confiscates $1.74B in Iraqi Assets

    There's nothing about it yet on the OFAC page, but on 3/20/03 President Bush issued an Executive Order confiscating non-diplomatic Iraqi government assets in the United States. The Order authorizes Treasury to marshal the assets, and to use the funds for the benefit and welfare of the Iraqi people. We expect institutions which have blocked assets under the Iraq sanctions program to be ordered to transmit those blocked assets to the federal government. Treasury Press Release 3/21/03

  • OCC Releases 33 CRA Evaluations

    The Office of the Comptroller of the Currency released Community Reinvestment Act evaluations of 33 national banks. Of the 33 evaluations, 4 were outstanding, 28 were satisfactory and 1 was needs to improve. OCC NR2003-23 Evaluations 3/21/03

  • OCC Issues Alert on Fictitious Offshore Bank

    The Office of the Comptroller of the Currency has been notified by the Government of Montserrat and the State of Florida that LionHeart Bank and Trust Company Limited, Fort Lauderdale, Florida has not been issued a license or been authorized to conduct banking business. OCC Alert 3/20/03

  • OTS Guidance on Third Party Arrangements Released

    The Office of Thrift Supervision has issued a Thrift Bulletin on outsourcing relationships. The Bulletin cautions institutions to exercise due diligence prior to entering into third party arrangements and to maintain effective oversight and controls throughout the arrangement. OTS Release 03-10 Thrift Bulletin TB82 3/20/03

  • Proposed OTS Form Reduces Regulatory Burden

    The Office of Thrift Supervision has requested comments on its proposal to replace the current Schedule Consolidated Maturity/Rate with a new form known as a Schedule Risk Exposure Data. The change is intended to reduce the data collection burden on institutions while improving the flexibility and utility of the data collected. Comments are due May 19, 2003.OTS Release 03-11 Proposed RED Form Comment Request 3/20/03

  • FDIC Announces Reorganization of Publications

    The Federal Deposit Insurance Corporation announced that its publications are now organized into three categories - public research, risk analysis and data sources. The FDIC Banking Review, FDIC Outlook and FDIC Quarterly Banking Profile are the featured publications and are available electronically and in hard copy.FDIC PR 26-2003 FDIC Banking Review FDIC Outlook FDIC Quarterly Banking Profile 3/20/03

  • FDIC 2003 Economic Projections Released

    The FDIC Spring 2003 Outlook indicates that banks are recognizing loan losses promptly, taking advantage of the development of an active secondary loan market, and increasing the use of derivative instruments to manage risk in the commercial loan portfolio. FDIC Chairman Powell noted "Strong earnings and capital positions have helped to insulate the banking industry from the more severe effects of corporate sector restructuring."FDIC PR 25-2003 FDIC Spring 2003 Outlook 3/20/03

  • Household International Agrees To SEC Cease-and- Desist Order

    The Securities and Exchange Commission entered a cease-and-desist order finding that Household International Inc. violated the antifraud and reporting provisions of the Securities Exchange Act of 1934 by misrepresenting policies that permitted the restructuring of delinquent loans and resetting the loans to "current".SEC PR2003-35 Order 3/20/03

  • Treasury Reveals Plans to Protect Financial Markets During Hostilities With Iraq

    The Treasury Department has outlined the steps that have been taken to protect the critical financial infrastructure of the United States including: the government's ability to borrow; the government's ability to make payments - including social security payments; the government's ability to raise revenue through the Internal Revenue Service.Treasury Press Release JS-114 3/20/03

  • Fed Funds Rate Remains Unchanged

    The Federal Reserve Board Federal Open Market Committee announced that it had decided to keep the target for the federal funds rate unchanged at 1 ¼ percent.FRB PR2003030318 3/19/03

  • Current Regulatory Issues Discussed in OCC Briefing Paper

    OCC First Senior Deputy Comptroller and Chief Counsel Julie L. Williams presented a briefing paper to Congressional staffers at the Financial Services Regulatory Conference held in Washington, D.C. The paper discussed the history of the Office of the Comptroller of the Currency and the national banking system, as well as a number of current issues in bank regulation, including privacy, national bank preemption and the USA Patriot Act.OCC NR 2003-21   Briefing Paper 3/19/03

  • FDIC 2003 Annual Performance Plan Released

    The Federal Deposit Insurance Corporation issued its 2003 Annual Performance Plan, which implements its strategic goals and objectives by establishing annual performance goals. Annual Performance Plan 3/19/03

  • Improvements Made to 314(a) Request Process

    Financial institutions, and the trade associations that represent them, complained to FinCEN and the Treasury Department about the format in which names were being transmitted from FinCEN for 314(a) search requests. In order to reduce the burdensome nature of the requests, FinCEN has now begun to make the subject names available in a tab-delimited text format that will facilitate electronic searches. Progress! 3/18/03

  • Final Reg B Published in Federal Register

    The final rule amending Regulation B has now been published in the Federal Register. The revisions address when a preapproval must be treated as an application, how to determine when an application is truly joint, how to describe the reasons for adverse action, and more. Text   PDF  3/25/03 correction 3/18/03

  • Regulators Issue Updated Internal Auditing Guidance

    The Federal Reserve, the FDIC, the OCC, and OTS issued revised guidance on the independence of accountants who provide institutions with both external and internal audit services to reflect the provisions of the Sarbanes-Oxley Act. [The policy statement encourages non-public institutions not subject to Section 36, which includes non-public depository institutions with less than $500 million in assets, to refrain from outsourcing internal audit activities to their external auditor. If such an institution decides to use the same firm for both internal and external audit work, however, the audit committee should document its consideration of the independence issues associated with this arrangement.] The InterAgency Policy Statement indicates the need for institutions to maintain strong systems of internal control, including internal controls over financial and regulatory reporting, and high quality internal audit programs. Expanded guidance has been provided on the use of independent reviews of significant internal controls by small institutions that do not have a formal internal audit manager or staff. Joint Agency Press Release     Other agency press releases: OCC; OTS; FDIC; InterAgency Policy Statement

    : FRB; OCC; ; OTS; FDIC; OCC Bulletin; FDIC FIL 3/18/03

  • FRB Publishes List of Financial Holding Companies

    The Federal Reserve Board has released an alphabetical list of bank holding companies that have elected as of March 15, 2003, to become or be treated as financial holding companies under the provisions of the Bank Holding Company Act.List of Financial Holding Companies 3/18/03

  • FRB Issues 2002 Monetary Report to Congress

    The report indicates the most likely economic outlook to be that fundamentals will support a strengthening of economic growth, and inflation pressures are anticipated to remain well contained.2002 Monetary Report 3/18/03

  • FRB Issues March 2003 Statistical Release of Assets

    The Federal Reserve Board has released the March 2003 Table of U. S. Reserve Assets and the Foreign Official Assets held at Federal Reserve Banks.FRB Bulletin 3/18/03

  • NCUA Announces CUs Eligible For Reduced Regulatory Requirements

    The National Credit Union Administration announced 3,650 federal credit unions have been determined to be eligible for RegFlex, a designation created to reduce regulatory burden on strongly-capitalized, well-managed federal credit unions and provides for exemptions from all or part of specific regulations not required by statute and unnecessary for safety and soundness purposes. NCUA NR03-0317 3/18/03

  • NCUA Board Member Encourages Services for Non-Home Owners

    National Credit Union Association Board Member Deborah Matz told the attendees at the Annual Conference of the American Credit Union Mortgage Association that minority members who do not own a home represent marketing opportunities for credit union mortgages. She urged credit unions to provide financial literacy training and affordable mortgage programs to entice new membership.NCUA NR03-0317-2 3/18/03

  • Merrill Lynch Pays SEC $80 Million Enron Settlement

    The SEC announced the charging of Merrill Lynch & Co., Inc. and four former senior executives with fraud which had the purpose and effect of overstating Enron's reported financial results. Simultaneous with the filing of the complaint in U. S. District Court, Houston, Texas, the SEC accepted Merrill Lynch's $80 Million settlement offer. The funds will be paid into a court account and ultimately distributed to Enron fraud victims.SEC NR2003-32   SEC Complaint 3/18/03

  • FRB/Treasury Report on Global Counterfeiting

    The Federal Reserve Board and the Treasury Department issued a joint report to Congress, "The Use and Counterfeiting of United States Currency Abroad, Part II" that details how the combined efforts of the Treasury, United States Secret Service, and Federal Reserve have held the incidence of counterfeiting at relatively low nominal levels. Joint FRB/Treasury Press Release 3/17/03

  • NCUA Chairman Remarkrs on Move Toward CU Taxation

    In a speech before the Utah Credit Union League'
    s annual meeting, NCUA Chairman Dennis Dollar said a nationwide move to tax the retained earnings of credit unions would, if successful, result in reductions in credit union net worth sufficient to require Congress to make significant changes in the federal prompt corrective action (PCA) law. NCUA News Release 3/17/03

  • Philippines Remains on FATF NCCT List

    The Financial Action Task Force against money laundering has decided not to impose further counter-measures to the Philippines. Recently, the country enacted new amendments to its Philippine Anti-MoneyLaundering Act of 2001. The Philippines will remain on the list of non-cooperative countries and territories(NCCTs) until it has effectively implemented its new anti-money laundering legislation. FATF Announcement 3/17/03

  • Cease and Desist Order Announced

    The Federal Reserve Board has issued an Order to Cease and Desist and of Prohibition against Terry Frierson, a former chief executive officer, president, and institution-affiliated party of MSB Shares, Inc., and the Midsouth Bank, Jonesboro, Arkansas. Frierson had allegedly violated Regulation O, engaged in unsafe and unsound practices, and misapplied bank funds. FRB Enforcement 2003)313    Order 3/14/03

  • Substantial Penalty Imposed for Flood Violations

    The Federal Reserve Board announced the issuance of a Civil Money Penalty of $17,150 against First Bank, Creve Coeur, Missouri regarding alleged violations of the National Flood Insurance Act. FRB PR-200303132    Order 3/14/03

  • Reg Y Modification Published in Federal Register

    The Federal Reserve Board requests comment on a proposal to modify Regulation Y to allow bank holding companies engaged in permissible derivatives activities to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basis. [This was previously announced on BOL] 67FR12316 (txt) 67FR12316 (pdf) 3/14/03

  • Counterfeit Checks Alert Issued by FDIC

    The Federal Deposit Insurance Corporation has learned that counterfeit cashier's checks drawn on Fifth Third Bank, Kentucky, Inc., Louisville, Kentucky and counterfeit checks drawn on Delta Bank, Vidalia, Louisiana, for the account of Community Credit Center, Inc. are currently in circulation. The information has been added to the BOL Alerts & Counterfeits page. FDIC SA-14-2003 3/14/03

  • FDIC Chairman Suggests Organizational Changes

    In remarks made before the "Federal Deposit Insurance Corporation Symposium on The Future of Financial Regulation: Structural Reform or Status Quo?", Chairman Powell supported consideration of regulatory changes to promote efficiency, reduce costs and to better protect public confidence in the financial sector. FDIC PR-22-2003 Remarks 3/14/03

  • FRB International Finance Discussion Papers Released

    The Federal Reserve Board has released the staff working papers regarding the International Finance Discussion Papers series.Working Papers 3/14/03

  • Comptroller Hawke Discusses Basel II Concerns

    In remarks before the Centre for the Study of Financial Innovation, London, England, the Comptroller reviewed his concerns with Basel II and the agreement of the U.S. bank regulators to take steps to simplify the implementation in the United States. The Basel II, approach would be built on three "pillars"- a set of formulas for determining regulatory capital; a set of principles for the exercise of supervisory oversight; and a set of disclosure requirements intended to enhance market discipline. OCC NR 2003-19 Speech 3/14/03

  • Chairman Powell Reacts to Deposit Insurance Reform Legislation Action

    Federal Deposit Insurance Chairman Powell expressed his pleasure at the passage of deposit insurance reform legislation by the House Financial Services Committee. FDIC PR-23-2003 3/14/03

  • OCC Reports Derivatives Volume Grows $2.9 Trillion

    Derivatives held by U. S. commercial banks increased $2.9 trillion in the fourth quarter, to $56.1 trillion, the Office of the Comptroller of the Currency reported today in its quarterly Bank Derivatives Report. OCC:NR 2003-18 Bank Derivatives Report 3/13/03

  • FDIC Announces Money Smart Alliance Partnership with Women in Housing & Finance Foundation

    The FDIC announced that the Women in Housing & Finance Foundation (WHF Foundation) has become the Corporation's newest partner in the Money Smart Alliance Program. FDIC:MS-003-2003 3/13/03

  • OFAC Adds New Provisions to the Iraqi Sanctions Regulations

    These new regulations provide for the establishment of a registration program that would authorize nongovernmental organizations to engage in humanitarian activities in the areas of Iraq not controlled by the Government of Iraq. 68FR11741 (txt) 68FR11741 (pdf) 3/13/03

  • The Latest Word from FinCEN

    Readers can gain clues into what's happening with the CIP rules and how FinCEN views the 314(a) information request process by reading FinCEN Director Sloan's testimony before the Subcommittee on Oversight Investigation of the Committee on Financial Services. He discussed the role of the Financial Crimes Enforcement Network plays in combating money laundering and fighting terrorism financing.Statement 3/12/03

  • Reg Y Modification Proposed

    The Federal Reserve Board requests comment on a proposal to modify Regulation Y to allow bank holding companies engaged in permissible derivatives activities to transfer title to commodities underlying derivative contracts on an instantaneous, pass-through basisComments are requested by April 21, 2003. FRB Press Release 20030311 Proposed Rule 3/12/03

  • OFAC Violations to be Made Public

    Under a new Final Rule published by the U. S. Treasury Department's Office of Foreign Assets Control disclosures of civil money penalties imposed for OFAC violations will be made weekly. The name of the entity involved, the sanctions program involved, a brief description of the violation or alleged violation, a clear indication whether the proceeding resulted in an informal settlement or in the imposition of a penalty, and the amount of the penalty imposed or the amount of the agreed settlement will be disclosed. The rule was published previously in the Federal Register and took effect February 22. 2003. This is the OCC's announcement to national banks of the new rule. OCC Bulletin 2003-10 Final Rule 3/12/03

  • FFIEC Call Report Changes

    The Federal Financial Institutions Examination Council has given notice of a number of revisions to the Reports of Condition and Income (Call Report). The changes are effective March 31, 2003. This FIL from the FDIC, which incorporates the FFIEC issuance, provides a summary of the changes. FIL-18-2003 3/12/03

  • FDIC Issues Counterfeit Checks Check Alert

    The Federal Deposit Insurance Corporation (FDIC) has learned that counterfeit cashier's checks drawn on Center Bank, Los Angeles, California, are currently in circulation. The information has been added to the BOL Alerts & Counterfeit page. FDIC SA-13-2003 3/12/03

  • FinCEN IVTS Advisory Issued

    The Financial Crimes Enforcement Network has issued its Advisory Issue 33 which provides financial institutions information on Informal Value Transfer Systems. FinCEN Advisory 33 3/12/03

  • FFIEC Publishes Draft Call Report Forms

    The FFIEC has published a new draft FFIEC-031 Call Report for banks with foreign and domestic offices and FFIEC-041 for banks with domestic offices only.FFIEC-031      FFIEC- 041 3/11/03

  • NCUA Issues Prohibition Orders

    The National Credit Union Administration has issued Orders of Prohibition against Janice Torricer, Theresa M. Corpuz and Ivy J. Sanchez, former employees of HC&S Federal Credit Union (now Valley Isle Community Federal Credit Union) of Kahului, Hawaii.NCUA News Release NR03-0307 3/11/03

  • NCUA Board Member Reiterates Support for Dual Charters

    National Credit Union Administration Board Member Deborah Matz, addressing the 25th Annual NCUA/National Association of State Credit Union Supervisors State Regulatory Conference, reiterated her support for the dual chartering system.NCUA News Release NR03-0310 3/11/03

  • OFAC Update

    OFAC issued a bulletin regarding a presidential executive order relating to "Persons Undermining Democratic Processes or Institutions in Zimbabwe". As a result, 77 new designations were added to OFAC's SDN list. See the BOL OFAC page for details. 3/11/03

  • Enforcement Actions Terminated

    The Federal Reserve Board announced the termination of eleven enforcement actions. Federal Reserve Press Release 3/10/03

  • FedACH Participation Forms Online

    The Federal Reserve Board has posted its ACH participation agreement and instructions online. Before a financial institution begins to originate or receive FedACH items through the Federal Reserve, an ACH agreement must be completed and signed by an authorized individual at the institution. ACH Agreement Instructions 3/10/03

  • January Consumer Credit Report Released

    The G.19 Consumer Credit Report for January 2003 was released by the Federal Reserve Board. Total consumer credit rose 9 per cent at an annual rate. Federal Reserve Release (pdf) Text 3/10/03

  • Chairman Greenspan Discusses Global Finance

    The Federal Reserve Board Chairman's remarks were presented to attendees at the Banque de France International Symposium on Monetary Policy, Economic Cycle, and Financial Dynamics, Paris, France. Greenspan's Speech 3/10/03

  • FRB Issues Proposed Rule on Transition Rules for Reg C

    In 2002, the FRB revised Regulation C and imposed new data collection requirements with an effective date of January 1, 2004. This proposal would revise the official staff commentary to Regulation C to provide transition rules for applications received before January 1, 2004, on which final action is taken on or after January 1, 2004. 68FR11010 (text) 68FR11010 (pdf) 3/7/03

  • Notice of expiration of exception to BSA requirement published in Federal Register

    FinCEN's notice of the expiration of a conditional exception to a BSA requirement on May 31, 2003 (the so-called Travel Rule) was published in today's Federal Register. The exception permits financial institutions to substitute coded information for the true name and address of a customer in a funds transmittal order. 68FR10965 (text) 68FR10965 (pdf)3/7/03

  • Three Million CMP for BSA Violations Announced

    The Financial Crimes Enforcement Network has announced the assessment of a Three Million civil money penalty against Western Union Financial Services, Inc. Among other violations, it was determined that the company willfully failed to file 662 SARs over a ten month period. FinCEN Assessment 3/7/03

  • Large Commercial Bank Quarterly Reports

    The Federal Reserve Board has released the Fourth Quarter 2002 data on commercial banks having consolidated assets of $100 million or more. The information is complied from the consolidated reports of condition and income filed by the banks.FRB Release      Text 3/7/03

  • Fourth Quarter Z.1 Released

    The Flow of Funds Accounts of the United States for the Fourth Quarter of 2002 has been released by the Federal Reserve Board. The report contains summaries of various financial indicators. FRB Release Z.1 3/7/03

  • Regulatory Restructuring Symposium Announced

    The Federal Deposit Insurance Corporation will sponsor a symposium on the future of financial regulation on Tuesday, March 13, at the National Press Club in Washington, DC. Key experts on financial regulation will discuss how the present system evolved and examine ways in which the complex web of agencies with specialized areas of authority and overlapping jurisdictions might be restructured.FDIC Press Release PR-21-2003 3/7/03

  • Reg B Final Rule Published

    The Federal Reserve Board published on its Web site the text of a final rule amending Regulation B. The final rule makes numerous changes to Regulation B and the Official Staff Commentary, including the well-publicized ones regarding collection of applicants' personal characteristics in connection with nonmortgage credit and record retention for prescreened solicitations. The final rule is effective April 15, 2003, but to allow time for any necessary operational changes, the mandatory compliance date is April 15, 2004. [Previously announced on BOL] FRB Press Release    Final Rule 3/6/03

  • FDIC Issues CRA Exam Report

    The Federal Deposit Insurance Corporation issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act. The list covers evaluation ratings that the FDIC assigned to institutions in December 2002.FDIC PR-20-2003       List of Banks Examined 3/6/03

  • Sarbanes-Oxley Guidance Issued

    The FDIC has provided guidance to institutions about selected provisions of the Sarbanes-Oxley Act, including the actions the FDIC encourages institutions to take to ensure sound corporate governance. The Act applies to publicly traded institutions.FDIC FIL 17-2003 3/6/03

  • Beige Book Update Published

    The Federal Reserve Board has published the March 2003 edition of the Beige Book which summarizes the current economic conditions in each of the Federal Reserve Districts.Beige Book      March Summary 3/6/03

  • FRB Governor Testifies

    Governor Donald L. Kohn testified regarding the Business Checking Freedom Act of 2003 before the Subcommittee on Financial Institutions and Consumer Credit of the House Committee on financial Services.Testimony 3/6/03

  • FDIC Chairman Optimistic on the Economy

    Chairman Donald E. Powell indicated he was optimistic about the economy and expressed his views on corporate governance at the annual conference of the Independent Community Bankers of America in Orlando, Florida.FDIC PR-19-2003 3/6/03

  • FFIEC Uniform Bank Performance Report Online

    The December 31, 2002 Uniform Bank Performance Report (UBPR) is now available on line. The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release     UBPR 3/6/03

  • Chairman Greenspan Discusses Home Mortgage Market

    The Federal Reserve Board Chairman's remarks were presented to attendees at the annual convention of the Independent Community Bankers of America in Orlando, Florida. Greenspan's speech 3/5/03

  • Federal Reserve Posts Cash FAQ

    The Cash Section of the Federal Reserve has posted on Federal Reserve Financial Services Web Site a list of Frequently Asked Questions and Answers regarding currency and coin. It addresses such issues as replacing mutilated currency, what portrait appears on various denominations, and where to get uncut sheets of printed bills. Federal Reserve Financial Services 3/5/03

  • Comptroller Hawke Calls for Less Burdensome Disclosures

    In a presentation before the annual convention of the Independent Community Bankers of America, the Comptroller noted that consumers are ill-served by the current system of compliance regulation. He called for the development of a new approach that would be more effective for consumers and less burdensome for banks.OCC News Release     Speech 3/5/03

  • 2002 Earnings Data Released

    Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation earned a combined $105.4 billion during 2002, the first time annual earnings of the industries topped $100 billion. Return on Assets reached a new high of 1.31 percent, surpassing the old record of 1.25 percent reached in 1999.FDIC PR-17-2003 3/5/03

  • FDIC 2001 Annual Report Submitted

    As required by the FDIC Act, the 2001 annual report was submitted to the President and the Speaker of the House of Representatives.FDIC 2001 Annual Report 3/5/03

  • FDIC 4th Quarter 2002 Banking Profile Released

    The Quarterly Banking Profile contains a new combined banking and thrift coverage format.FDIC QBP 3/5/03

  • FinCEN Notice on Expiration of Exception to Travel Rule

    The CIF Exception to the Travel Rule is scheduled to expire on May 31, 2003. FinCEN intends to permit the expiration, but is soliciting comments before it does so. FinCEN Notice 3/5/03

  • Treasury Forms Executive Office for Terrorist Financing and Financial Crimes

    Treasury has announced the formation of a new office to combat domestic and foreign terrorist financing and other financial crimes. The Executive Office for Terrorist Financing and Financial Crimes (EOTF/FC) will focus on reducing the risk that financial systems are being misused by criminals and terrorists. It will also provide policy guidance to both FinCEN and OFAC and will participate in the department's development and implementation of U.S. government policies and regulations in support of the PATRIOT Act.Treasury Press Release 3/4/03

  • Federal Reserve Publishes Reg C Transition Rules

    The FRB is proposing amendments to the official staff commentary of Reg C to provide transition guidance. Comments are requested by April 8, 2003. The transition rules would provide guidance to lenders who are required to collect and report new information under the revision to Reg C on what action to take prior to the January 1, 2004 Reg C effective date. Federal Reserve Release     Proposed Rule and staff comments 3/4/03

  • Second Quarter CRA Examination Schedule Released By OCC

    The OCC has released its schedule of CRA examinations to be conducted in the second quarter of 2003.OCC News Release 3/4/03

  • OTS Releases Second Quarter CRA Examination Schedule

    114 savings associations have been scheduled by the OTS for CRA Examinations during the second Quarter of 2003.OTS Press Release    Exam Schedule 3/4/03

  • FDIC Issues Alert on Counterfeit Official Checks

    FDIC Issues Alert on Counterfeits Counterfeit official checks drawn on First Republic Bank, Los Angeles, California, and payable through Bank of America, Chicago, Illinois; and counterfeit cashier's checks drawn on City Bank, Hawaii, Honolulu, Hawaii; and Frost National Bank, San Antonio, Texas are in circulation. Get the details on the BOL Alerts & Counterfeits page, or in the FDIC Special Alert 3/4/03

  • About Those Tax Protester Arguments

    The IRS has published a document which addresses some of the more common false "legal" arguments made by individuals and groups who oppose compliance with the federal tax laws. Read "The Truth About Frivolous Tax Arguments" to get the scoop. 3/4/03

  • FRB Publishes List of Foreign Margin Stocks

    The List of Foreign Margin Stocks (Foreign List) 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. 68FR8993 (txt) 68FR8993 (pdf) 3/3/03

  • Approval of proposal of The Daiwa Bank, Limited

    The Federal Reserve Board announced the approval of the application of The Daiwa Bank, Limited, Osaka, Japan, to establish a representative office in New York, New York. FRB Press Release 3/3/03

  • Director's Corner

    The FDIC has created a special new area on its Web site containing information of interest to bank directors. The .Director.s Corner. includes items such as Interagency Policy Statements, Supervisory Guidance, and Financial Institution Letters on the topics of Corporate Governance Practices, Auditing and Internal Controls, Accounting Practices and the Allowance for Loan and Lease Losses. Director's Corner 3/3/03

01/31/2003

Top Stories for February 2003

  • FTC Receives Largest COPPA Civil Penalties to Date in Settlements with Mrs. Fields Cookies and Hershey Foods

    FTC Alleges Companies' Web Sites Violated Children's Online Privacy Protection Act. Mrs. Fields Cookies and Hershey Foods Corporation have each agreed to settle Federal Trade Commission charges that their Web sites violated the Children's Online Privacy Protection Act (COPPA) Rule by collecting personal information from children without first obtaining the proper parental consent. FTC 2/28/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. [This was previously announced on BOL] FDIC:FIL-16-2003 2/28/03

  • Comptroller Hawke Discusses Basle Capital Framework in House Testimony

    Comptroller of the Currency John D. Hawke, Jr., told a congressional panel that while the OCC supports the objectives of the proposed Basle II capital framework, it is important that regulators carefully consider industry comments before moving forward.OCC:NR 2003-14    Oral Statement    Testimony 2/28/03

  • System Quality and Volume Statistics

    System Quality and Volume Statistics 2/28/03

  • 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. February 2003 2/28/03

  • Oral Statement of Donald E. Powell, on the New Basel Accord before the Subcommittee on Domestic and International Monetary Policy, Trade

    FDIC:PR-16-2003 2/28/03

  • FDIC Issues Second Quarter 2003 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 second quarter of 2003. 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. AD-1-2003 2/28/03

  • FinCEN Releases Fifth SAR Activity Review

    The Financial Crimes Enforcement Network (FinCEN) continued its examination of terrorist financing methods in the fifth issue of The SAR Activity Review – Trends, Tips and Issues just released. This latest issue of The Review looks at terrorist financing methods through Informal Value Transfer Systems (IVTS) such as hawalas, as well as through non-profit organizations. SAR Review 2/28/03

  • FTC Receives Largest COPPA Civil Penalties to Date in Settlements with Mrs. Fields Cookies and Hershey Foods

    FTC Alleges Companies' Web Sites Violated Children's Online Privacy Protection Act. Mrs. Fields Cookies and Hershey Foods Corporation have each agreed to settle Federal Trade Commission charges that their Web sites violated the Children's Online Privacy Protection Act (COPPA) Rule by collecting personal information from children without first obtaining the proper parental consent. FTC 2/28/03

  • FDIC Issues Alert on Counterfeit Official Checks

    Counterfeit official checks drawn on Allstate Bank, Vernon Hills, Illinois; Community Bank of Lawndale, Chicago, Illinois; and Jackson Federal Bank, Fullerton, California, are in circulation. FDIC:SA-11-2003 2/27/03

  • FedImage Services

    FedImage Services offers you a suite of image products for the capture, archive, retrieval and delivery of check images. FedImage Services provides an image solution that delivers strategic, operational and functional advantages to sustain a competitive advantage. FedImage Services 2/27/03

  • Comptroller Hawke Urges Senate to Reform FDIC Insurance Fund

    Comptroller of the Currency John D. Hawke, Jr., in testimony before the Senate Committee on Banking, Housing and Urban Affairs, said Congress should address a number of flaws in the deposit insurance system, including several introduced in the last two decades. OCC:NR 2003-12 2/27/03

  • Kay Kowitt Named Deputy Comptroller for Western District

    The OCC announced that Kay E. Kowitt has been named Deputy Comptroller for the Western District. In her new assignment, Ms. Kowitt will report directly to Timothy W. Long, Senior Deputy Comptroller for Mid-Size/Community Banks. OCC:NR 2003-13 2/27/03

  • Gilleran Urges Senate Action on Core Deposit Insurance Reform

    Office of Thrift Supervision Director James E. Gilleran urged the Senate Banking Committee to approve a core federal deposit insurance reform bill that would merge the Bank Insurance Fund and the Savings Association Insurance Fund and give the Federal Deposit Insurance Corporation flexibility in setting deposit insurance premiums. OTS 03-07 2/27/03

  • FDIC Consumer News

    Special report on credit reports and credit scores. Consumer News 2/27/03

  • Consumer Balance Sheet Roundtable

    Consumers: How Much Debt Is Too Much? February 28, 2003, symposium. Symposium2/27/03

  • Agencies Issue Advisory on Mortgage Banking Activities

    Federal bank and thrift regulatory agencies jointly issued an advisory letter discussing risks related to mortgage banking activities. The letter highlights concerns and provides guidance regarding mortgage banking activities, primarily in the valuation, accounting, and hedging of mortgage servicing assets. Interagency Advisory     FRB Press Release     SR 03-4     OCC:NR 2003-09     OTS 03-06     FDIC-PR-14-2003     FIL-15-2003 2/26/03

  • OCC Releases CRA Evaluations For 32 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of January 15, 2002 through February 14, 2003. OCC:NR 2003-11     Evaluations 2/26/03

  • OCC Announces 13 New Enforcement Actions

    The OCC announced 13 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:NR 2003-10 2/26/03

  • Homeland Security Information Update

    Suggested guidance for developing protective measures based on the level of threat condition. FRB Press Release 2/25/03

  • Approval of proposal of Mizuho Financial Group, Inc.

    The Federal Reserve Board announced its approval of the applications and notice under sections 3 and 4 of the Bank Holding Company Act related to the proposal by Mizuho Financial Group, Inc., Tokyo, Japan to become a bank holding company by acquiring Mizuho Holdings, Inc., also in Tokyo, and thereby indirectly acquire the U.S. banking and nonbanking subsidiaries of Mizuho Holdings. FRB Press Release 2/25/03

  • TT&L Reference Guide Published

    Guide 2/25/03

  • OCC Issues Alert on Unauthorized Banking

    This issuance conveys information on First Century Financial (FCF). This entity and its associated Web site: [http://www.firstcenturyfinancial.com] is not authorized to conduct the business of banking in the United States. Additionally, certain companies listed as associated with FCF are not affiliated with the organization, nor have those companies granted FCF permission to reference their names on FCF's Web site. Various sections of this site contain false or misleading information. OCC:ALERT 2003-4 2/25/03

  • FDIC Issues Alerts on Counterfeit Treasurer's Checks, Cashier's Check and Personal Money Orders

    Counterfeit treasurer's checks, cashier's check and personal money orders drawn on Union County Savings Bank, Elizabeth, New Jersey; First National Bank of Gillette, Gillette, Wyoming; and Skagit State Bank, Burlington, Washington, respectively, are in circulation. FDIC:SA-9-2003 2/25/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. [This was previously announced on BOL] FDIC:FIL-14-2003 2/25/03

  • Amendments to Reg B

    Read the amendments to Reg B. FRB Press Release 2/24/03

  • FinCEN Issues Proposed Rule on Anti-Money Laundering Programs for Businesses Engaged in Vehicle Sales

    The term ``financial institution'' is defined to include a ``business engaged in vehicle sales, including automobile, airplane,
    and boat sales. FinCEN is issuing this advance notice of proposed rulemaking (ANPRM) to solicit public comments on a wide range of questions pertaining to these requirements, including the money laundering risks that are posed by these businesses, whether these businesses should be subject to these requirements, and if so, how the requirements should be structured. 68FR8568 (txt) 68FR8568 (pdf) 2/24/03

  • FinCEN Issued Proposed Rule to Define "Travel Agent" with respect to the USA PATRIOT Act

    FinCEN is in the process of implementing the requirements delegated to it under the USA PATRIOT Act of 2001, in particular the requirements of the Act that require financial institutions to establish anti-money laundering compliance and customer identification programs. The term ``financial institution'' is defined to include a ``travel agency.'' 68FR8571 (txt) 68FR8571 (pdf) 2/24/03

  • OCC Issues Guidelines to National Banks to Guard Against Abusive Lending Practices

    The OCC issued two releases establishing nationwide guidance to guard against predatory lending practices among institutions it supervises. Concurrently, it published for comment a request for an opinion that a Georgia law concerning predatory lending is preempted insofar as it might apply to national banks. OCC:NR 2003- 08,     Q&A's    
    Advisory Letter 2003-03     Advisory Letter 2003-02     Preemption letter 2/24/03

  • OCC Issues Alert on Counterfeit Financial Instruments: Counterfeit Cashier's Checks

    This issuance is notice that counterfeit cashier's checks of Frost National Bank are being issued nationwide and are also being used to transact a type of overpayment fraud. In this fraud, a "purchaser" of goods asks the seller to remit the amount by which the counterfeit cashier's check overpays for those goods. OCC:ALERT 2003-3 2/24/03

  • FTC to Host Workshops on Role of Technology in Helping Consumers And Businesses Protect Personal Information

    The Federal Trade Commission will host two public one-day workshops to explore the role of technology in helping consumers and businesses protect the privacy of personal information, including the steps taken to keep their information secure. FTC Press Release 2/24/03

  • File Format for the Upcoming 2003 FFIEC Census

    The census file contains the nationwide census data that are used as input to HMDA processing. It is important to note that 1990 census tracts have been used in processing HMDA 1996 data through 2002 data. 2003 Census Tape File Specifications PDF     MS Word 97 2/21/03

  • Careers at FDIC

    Who we are, what we do, where we work. Current job vacancies nationwide. Careers 2/21/03

  • FRB Issues Final Rule Amending Regulation B

    The Final Rule creates an exception which allows creditors to collect previously prohibited personal data from applicants in connection with nonmortgage credit. The creditor must plan to use the information in a self-test for ECOA compliance and must disclose to applicants that providing the information is voluntary, being collected to monitor ECOA compliance, and will not be used in making the credit decision. FRB Press Release 2/20/03

  • Treasury Department Issues Additional USA PATRIOT Act Regulations

    Treasury and FinCEN issued a proposed rule and two advance notices of proposed rulemaking concerning a requirement that additional categories of non-traditional financial institutions establish an anti-money laundering program. The proposed rule covers a broad range of industry segments including those trading in precious metals, including refiners; those trading in loose gemstones; large and small scale manufacturers of jewelry; retail stores that function as a dealer in such items;and on vehicle sellers and travel agents. Press Release 2/20/03

  • Thrifts Earn Record $11.8 Billion In 2002; Thrift Assets Grow To $1 Trillion

    The thrift industry had back-to-back record-setting earnings years, the Office of Thrift Supervision reported.
    “Last year was the best year in thrift industry history,” OTS Director James E. Gilleran said, “with earnings reaching $11.8 billion in 2002, following record earnings of $10.2 billion in 2001.” OTS 03-05 2/20/03

  • FRB Issues an Interpretation Concerning the Underwriting by Foreign Banks of Securities

    The interpretation clarifies that a foreign bank that wishes to engage in such activity must either be a financial holding company or have authority to engage in underwriting activity under section 4(c)(8) of the Bank Holding Company Act. 68FR7898 (txt) 68FR7898 (pdf) 2/19/03

  • Fedwire Securities Service via FedLine for the Web

    FedLine for the Web Services 2/19/03

  • Consumer Advisory Council to Hold Meeting

    The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 13. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. Anyone planning to attend the meeting should, for security purposes, register no later than Tuesday, March 11, by completing the form found on-line at: Form. FRB Press Release 2/18/03

  • Decision of the OCC on the Application to charter Charles Schwab Bank, N.A., Reno, Nevada

    Decision 2/18/03

  • FDIC Names Chief Economist and Chief Accountant

    The FDIC announced that Richard A. Brown of the Division of Insurance and Research (DIR) and Robert F. Storch of the Division of Supervision and Consumer Protection (DSC) have been named the Corporation's Chief Economist and Chief Accountant, respectively.
    FDIC:PR-13-2003 2/18/03

  • FATF withdraws counter-measures with respect to Ukraine and decides on date for counter-measures to Philippines

    As a result of the implementation of significant reforms to its anti-money laundering system, Grenada
    was removed from the Financial Action Task Force (FATF) list of Non-Cooperative Countries and
    Territories (NCCTs). FATF will continue to monitor the implementation of Grenada’s anti-money
    laundering system. FATF Press Release 2/18/03

  • FDIC Adopts Final Rule on Federal Deposit Insurance Eligibility for State Banks Chartered as Limited Liability Companies

    A new amendment to Part 303 of the FDIC's Rules and Regulations clarifies that a state bank that is chartered as a limited liability company could be considered "incorporated" for the purposes of being eligible for federal deposit insurance. FDIC:FIL-13-2003 2/14/03

  • Bogus ID Theft Protection Scam Busted

    A final settlement order entered into this month between the FTC and two telemarketers imposes a comprehensive lifetime telemarketing ban on the two individuals and prohibits them from from a wide range of conduct, including misrepresenting that they are affiliated with a bank, financial institution, VISA, MasterCard, or a consumer protection agency. The brothers allegedly employed large numbers of telemarketers who marketed, among other things, bogus ID theft protection services. FTC Press Release 2/14/03

  • Announcement to all Money Services Businesses

    The suspicious activity reporting (SAR) requirement applicable to the money services businesses (MSBs) industry has been in effect for more than one year. MSBs were advised in October 2002, that a new form had been created specifically for the MSB industry entitled Suspicious Activity Reporting by Money Services Business (Form TD F 90-22.56). The form is now available. Announcement 2/14/03

  • OCC Proposes Amends to Several of its Regulations to Update and Clarify

    Proposed revisions to parts 5 and 7 would implement several sections of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA), which enables national banks to undertake certain corporate organizational changes more efficiently than under previous law, and also provides for more modern corporate governance mechanisms for national banks. [This was previously announced on BOL] OCC 2003-8 2/14/03

  • FDIC Issues Alert on Counterfeit Official Checks

    Counterfeit cashier's and teller's checks, drawn on Southern Bank and Trust Co., Mount Olive, North Carolina, and Hudson River Bank & Trust Co., Hudson, New York, respectively, are in circulation. FDIC:SA-6-2003 2/14/03

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 39), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. Two entities, Transamerica Investors Group and Sun Trust Insurance Company of Canada/Sun Trust Financial, are illegally operating as financial institutions. FDIC:SA-7-2003 2/14/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. [This was previously announced on BOL] FDIC:FIL-12-2003 2/14/03

  • Final Decision and Order of Prohibition against Cynthia Rowe

    The FRB announced the issuance of a Final Decision and Order of Prohibition against Cynthia Rowe, a former employee of Key Bank, N.A., Cleveland, Ohio. Press Release 2/14/03

  • Final Decision and Order of Prohibition against Marian L. Butler

    The FRB announced the issuance of a Final Decision and Order of Prohibition against Marian L. Butler, a former employee of CoreStates Financial (now First Union), Philadelphia, Pennsylvania. Press Release 2/14/03

  • Deceptive Claims of FDIC Insurance Coverage

    Two entities are falsely representing to potential customers on their respective Web sites that they are insured by the FDIC. In addition, neither entity is licensed or chartered in their respective home countries. FDIC:SA-8-2003 2/14/03

  • USA PATRIOT Act Section 314(a) Information

    USA PATRIOT Act Section 314(a) information requests will resume on Tuesday, February 18, 2003. Information relevant to the operation of the system will be disseminated directly to participating financial institutions prior to that date. Financial institutions should refer questions on system operation to their primary regulator or to FinCEN (Regulatory Help Line 800-949-2732). Press Release
    BOTTOM LINE: Previously, their guidance had said the requests would resume "the week of February 17th". They now have a date certain -- February 18th -- for the first round of requests. Be sure you read the instructions closely to make sure you are doing what is required and in a timely manner. 2/13/03

  • FDIC Issues Final Rule on Insurance of State Banks Chartered as Limited Liability Companies

    The FDIC has adopted a final rule regarding whether and under what circumstances the FDIC will grant deposit insurance to a State bank chartered as a limited liability company (LLC). Pursuant to section 5 of the Federal Deposit Insurance Act (FDI Act) the FDIC may grant deposit insurance only to certain depository institutions. 68FR7301 (txt) 68FR7301 (pdf) 2/13/03

  • New Information Security Guidance for Examiners and Financial Institutions

    The Federal Financial Institutions Examination Council (FFIEC) has issued a booklet with revised guidance for identifying institutions' information security risks and evaluating their risk-management practices. This is the first in a series of updates to the 1996 FFIEC Information Systems Examination Handbook, which will eventually replace the 1996 handbook and comprise the new FFIEC Information Technology (IT) Examination Handbook. [This was earlier announced on BOL] FDIC:FIL-11-2003 2/13/03

  • OCC Updates Examination Procedures on Prohibition Against Interstate Deposit Production

    This bulletin announces the distribution of interagency examination procedures that have been updated to conform to the final rule effective October 1, 2002, which amended regulations implementing section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These updated procedures are to be used when examining banks that have established or acquired interstate branches, or that are controlled by an out-of-state bank holding company. OCC 2003-6 Updated Examination Procedures 2/12/03

  • OCC Publishes Notice that U. S. Treasury to Reinstate USA PATRIOT Act Section 314(a) Information Requests

    On February 6, 2003, FinCEN issued a press release advising financial institutions that 314(a) information requests would be reinstated during the week of February 17, 2003. [This was previously announced on BOL] OCC:SR 03-3 2/12/03

  • DOS-Based FedLine

    The current DOS-based FedLine software provides a common, electronic access method for accessing the Federal Reserve's financial services. This PC-based connection allows customers to process daily transactions, monitor account balances, and receive timely reports. Announcement 2/12/03

  • Electronic Deposit Insurance Estimator

    The FDIC is releasing the new banker version of EDIE in a downloadable format that financial institutions may load directly onto their networks. FDIC:FIL-10-2003 EDIE 2/12/03

  • OFAC Issues Final Rule Concerning the Disclosure of Certain Civil Penalties Information

    OFAC intends to publish information about civil penalties imposed and informal settlements on a weekly basis. If the publication falls on a holiday, or if required by an emergency, publication may be postponed to the following week. 68FR6820 (txt) 68FR6820 (pdf) 2/11/03

  • OCC Requests Comment on Removal, Suspension, and Debarment of Accountants From Performing Audit Services

    This proposal would amend the Agencies' rules to establish rules of practice and procedure for the removal, suspension, and debarment of accountants and their firms from performing section 36 audit services for insured depository institutions. [This was previously announced on BOL] OCC 2003-5 2/11/03

  • FDIC to Market Southern Pacific Bank Loans

    The FDIC announced that it will market a $300 million loan portfolio retained by the FDIC from the failed Southern Pacific Bank, Torrance, California, within the next 60 days. FDIC:PR-12-2003 2/11/03

  • OCC Proposes Amends to Several of its Regulations to Update and Clarify

    The proposed revisions relate to the new authority provided to national banks by the American Homeownership and Economic Opportunity Act of 2000 ( AHEOA) regarding bank reorganization; number of board of directors and their terms; and, mergers with nonblank affiliates. In additon, the proposal clarifies issues regarding the OCC's visitorial powers. Comments must be received by April 8, 2003. 68FR6363 (txt) 68FR6363 (pdf) 2/10/03

  • NACHA Internet Council Reports on Managing Risks of Internet Payments

    The Internet Council has issued two new publications designed to provide financial institutions and merchants with educational resources on managing risk and preventing fraud associated with Internet-initiated payments. Fraud Paper
    Press Release
    2/10/03

  • Regulation K interpretation on foreign banks underwriting securities to be distributed in the United States

    The interpretation clarifies that a banking organization that wishes to engage in underwriting securities that are to be distributed in the United States must be either a financial holding company or have authority to engage in underwriting activity under section 4(c)(8) of the Bank Holding Company Act. Press Release     Interpretation 2/10/03

  • FinCEN Issues Final Rule to Make it a Requirement That Currency Dealers and Exchangers Report Suspicious Transactions

    The amendments require all money services businesses to which the suspicious transaction reporting rule applies to report transactions involving suspected use of the money services business to facilitate criminal activity. 68FR6613 (txt) 68FR6613 (pdf) 2/10/03

  • SEC Amends Definition of "Dealer" for Banks

    The Commission voted to adopt rules amending definitions of terms used in a bank exception to the definition of "dealer" in Section 3(a)(5) of the Securities Exchange Act of 1934, amending an exemption for banks from the definition of dealer for certain de minimis riskless principal transactions, adding a new exemption from broker-dealer registration for certain bank securities lending transactions, and extending an exemption from rescission liability for contracts entered into by banks in a dealer capacity for a transition period until March 31, 2005. SEC:2003-21 2/10/03

  • OFAC Publishes Chart

    OFAC Publishes a chart on Cali Cartel business structure. Chart 2/10/03

  • FATF Plenary to Meet

    The Financial Action Task Force (FATF) will meet in Paris, 11-14 February, to discuss new methods of money laundering and terrorist financing and to review developments in non-cooperative countries and territories. The FATF will also report on its progress to counter the financing of terrorism. Press Release 2/10/03

  • OCC Issues Recent Updates on Licensing Manual

    Two revised booklets of the Comptroller’s Licensing Manual series, "Public Notice and Comment" and "Changes in Directors and Senior Executive Officers" are available on the OCC’s Internet site. Public Notice and Comment's title was changed from “Public Involvement” as it is more descriptive of the contents. These booklets update and replace the previous 1998 version. Public Notice and Comment    Changes in Directors and Senior Executive Officers 2/10/03

  • Federal Reserve System Check Operations Restructuring Announcement

    The Federal Reserve System has announced plans to restructure check processing operations to 32 locations nationwide and check adjustment operations to 12 locations. Letter to our Customers from Reserve Bank First Vice Presidents    Map of Check Processing Changes by District 2/10/03

  • FDIC Approves the Assumption of the Insured Deposits of Southern Pacific Bank, Torrance, California

    The Board of Directors of the FDIC approved the assumption of the insured deposits of Southern Pacific Bank, Torrance, California, by Beal Bank, S.S.B., Plano, Texas. FDIC:PR-11-2003 FDIC Information for Southern Pacific Bank 2/10/03

  • FinCEN to Reinstate USA PATRIOT Act Section 314(a) Information Requests

    The FinCEN will be reinstating information requests associated with section 314(a) of the USA PATRIOT Act during the week of February 17, 2003. Generally, section 314 authorizes law enforcement authorities to communicate with financial institutions about suspected money launderers and terrorists, and financial institutions to communicate amongst themselves about such matters. Read the BOL Summary in "Life After The Moratorium".    FinCEN Press Release    Instructions    FAQ 2/7/03

  • FRB Announce Changes to Increase Efficiency In Check Services as Check Volumes Decline Nationwide

    The Federal Reserve Banks, collectively the nation's largest processor of checks, announced changes to their back office check-processing operations intended to improve operating efficiency while maintaining high-quality check services to depository institutions nationwide. FRB Press Release 2/7/03

  • FDIC Issues February 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 November 2002. FDIC:PR-10-2003 2/6/03

  • Written agreement with Premier Financial Bancorp, Inc.

    The Federal Reserve Board announced the execution of a Written Agreement by and between Premier Financial Bancorp, Inc., Huntington, West Virginia, and the Federal Reserve Bank of Cleveland. FRB Press Release 2/6/03

  • OCC Issues Alert on Unauthorized Banking: Allied Boston Bank, Inc., Banking License Denial, Republic of Palau

    This issuance conveys information on the denial of a banking license application to Allied Boston Bank, Inc. Allied has never had a license to practice and/or perform banking and related financial activities. The Financial Institutions Commission of the Republic of Palau further informed the OCC that Allied is in the process of relinquishing its corporate charter. ALERT 2003-1 2/6/03

  • Head of Treasury Office of Critical Infrastructure Protection Announced

    On January 4, 2003 the Treasury Department named Michael A. Dawson as the Deputy Assistant Secretary for Critical Infrastructure Protection and Compliance Policy. He will oversee the efforts of the office to enforce statutes and regulations regarding money laundering, terrorist financing and identity theft. The office will continue to develop and implement policies regarding the security of personal financial information and the sharing of suspicious information under BSA. Treasury Press Release 2/5/03

  • DOD Joins FDIC'S Money Smart Alliance; Will Deploy Financial Education Program at Military Installations Worldwide

    The FDIC and the DOD are joining forces to make basic financial education available to 1.4 million servicemen and women at home and abroad, as well as to their families. Through an agreement announced today, DOD has adopted the FDIC's Money Smart financial education program for use at more than 3,000 military installations around the world. FDIC:MS-002-2003 2/5/03

  • 2003 Guide Information Letter is now available

    This letter supplements A Guide to HMDA Reporting: Getting It Right! In 2002 the Board announced major changes to Regulation C (including its appendices), the Staff Commentary, and the HMDA file specifications and edits. For those changes that took effect on January 1, 2003, this letter supplements the 1998 Guide, which should be used for guidance on collection and reporting of calendar year 2003 HMDA data due March 1, 2004. Most of the changes made in 2002, however, do not take effect until January 1, 2004. An updated version of the Guide will reflect those changes. FFIEC Letter 2/4/03

  • FTC Examines Spam Relief

    The Federal Trade Commission has announced that it will hold a three day public workshop May 2, 2003 to address the proliferation of unsolicited commercial e-mail and to explore the technical, legal, and financial issues associated with it. Financial institution personnel may be interested from a personal standpoint, but also to make sure any "solutions" put into place do not unduly restrict the ability of financial institutions to utilize the Internet to communicate with customers and prospective customers. FTC Press Release 2/4/03

  • Treasury Announces Increase in Funds to Combat Money Laundering and Terrorist Financing

    The Administration is proposing significant increases in funding for Treasury Department programs that work to combat money laundering and terrorist financing around the world. In its fiscal year 2004 budget to be released on Monday, February 3,
    2003, the Administration proposes a $2.1 million increase in funding for Treasury’s Financial Crimes Enforcement Network (FinCEN), and a $4 million increase in funding for Treasury’s technical assistance program under the Office of International Affairs. 2/4/03

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

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December. No administrative hearings are scheduled for February. FDIC:PR-7-2003 2/4/03

  • FDIC State Profiles

    Banking and economic conditions described for each state. Updated quarterly. State Profiles 2/4/03

  • Pennsylvania Man Indicted on Charges of Making False Statements to The RTC

    FDIC Inspector General Gaston L. Gianni, Jr., has announced that a federal grand jury in Philadelphia has returned an indictment against Gerald L. Katzoff of Morrisville, PA, charging him with four counts of making false statements to the Resolution Trust Corporation (RTC) in violation of 18 U.S.C. § 1014. The FDIC in 1996 became responsible for winding up the affairs of the RTC, which was created by Congress to resolve the savings and loan crisis of the late 1980s and early 1990s. FDIC:PR-9-2003 2/4/03

  • FRB Issues Final Rule to Reg H

    The FRB announced the adoption of a final rule implementing several of the reporting, disclosure and corporate governance requirements of the Sarbanes-Oxley Act of 2002 for those state member banks that have a class of securities registered under the Securities Exchange Act of 1934. [This was previously announced on BOL] FRB Press Release 2/3/03

  • Holiday District Announcements

    The Federal Reserve Banks will be closed on Monday, February 17, 2003, for the Presidents' Day holiday. Announcement 2/3/03

  • Peoples National Bank to Pay $175,000 Civil Money Penalty And End Payday Lending Relationship with Advance America

    The OCC announced that Advance America, Cash Advance Centers, Inc. and Peoples National Bank, Paris, Texas, have agreed to end their payday lending arrangement and that the bank has agreed to pay $175,000 in civil money penalties. OCC:NR 2003 - 06 Consent Form Plan to attend the BOL Learning Connect event "Predatory versus Sub-Prime: Making Good Loans Without Stepping on Grenades" on February 26th 2/3/03

  • FDIC FIL about OFAC Change

    Treasury's Office of Foreign Assets Control (OFAC) has amended its list of Specially Designated Nationals and Blocked Persons. FDIC:FIL-9-2003 [This was previously announced on BOL] 2/3/03

  • OCC Seeks Comment on Package of Rules Dealing with AHEOA, Fiduciary Activities, Real Estate Lending and Visitorial Powers

    The OCC proposed regulations implementing provisions of the American Homeownership and Economic Opportunity Act of 2000 (AHEOA), revising and updating other provisions of its rules, and clarifying its existing rule concerning the agency's exclusive visitorial powers to examine, supervise and regulate national banks. OCC:NR 2003 - 07 2/3/03

  • FDIC Debuts Analysis of State Economic and Banking Information

    The FDIC launched a new Internet-only publication, FDIC State Profiles. In an executive summary format, this quarterly publication provides an analysis of state economic and banking trends and aggregate financial data on insured institutions headquartered in all 50 states, Puerto Rico and the U.S. Virgin Islands. FDIC:PR-6-2003 2/3/03

12/31/2002

Top Stories for January 2003

  • FDIC Issues Alert on Counterfeit Money Orders and Cashier's Checks

    Counterfeit money orders issued by Peoples State Bank of Munising, Munising, Michigan, and counterfeit cashier's checks drawn on Treasury Bank, N.A., Alexandria, Virginia, are in circulation. FDIC:SA-4-2003 1/31/03

  • FDIC Issues Alert on Entities Not Authorized by the Cayman Islands Monetary Authority

    The Cayman Islands Monetary Authority (CIMA) has added two institutions, Trans Ocean Bank and First Cayman Bank, to its list of entities that provide a Cayman Island contact address, but are not licensed or registered to conduct business activities regulated by the CIMA. FDIC:SA-5-2003 1/31/03

  • OTS Says New York Law Doesn't Apply To Federal Thrifts

    The OTS announced that federal law preempts provisions of the New York predatory lending law from applying to federal savings associations and their operating subsidiaries. The New York law imposes various restrictions on loans based upon the annual percentage rate and amount of points and fees charged. OTS 03-04 1/31/03

  • Canadian-Based Defendants to Pay $25,000 for Conducting Credit Card Protection Scheme

    The Federal Trade Commission once again warned consumers to be wary of telemarketers and to "Ditch the Pitch." The agency announced a settlement with Canadian-based defendants, who allegedly defrauded hundreds of consumers by pressuring them over the phone to purchase essentially worthless "credit card protection" insurance for up to $369. FTC Press Release 1/31/03

  • Revised FFIEC guidance for examiners and financial institutions in identifying information security risks

    The FFIEC issued revised guidance for examiners and financial institutions to use in identifying information security risks and evaluating the adequacy of controls and applicable risk management practices of financial institutions. FRB Press Release FFIEC OTS 03-03 1/30/03

  • FDIC Seeks Comment on Draft Payday Lending Guidance

    The FDIC has developed guidelines for payday lending. A draft of this guidance is available. The FDIC intends to issue on March 31, 2003. FDIC:PR-5-2003 FYI 1/30/03

  • The Future of Financial Regulation: Structural Reform or Status Quo?

    A March 13, 2003, symposium – "The Future of Financial Regulation: Structural Reform or Status Quo?" – will evaluate the U.S. financial regulatory system. The symposium will examine the current financial regulatory structure, identify challenges and obstacles to reform, and explore alternatives for the future. Symposium 1/30/03

  • FOMC Statement

    The Federal Open Market Committee decided to keep its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release 1/30/03

  • Approval of application of BBVA Bancomer, S.A.

    The Federal Reserve Board announced the approval of the application of BBVA Bancomer, S.A., Mexico City, Mexico, to establish an agency in Houston, Texas. FRB Press Release 1/30/03

  • OFAC Publishes Proposed Rule on Economic Sanctions Enforcement Guidelines

    The Office of Foreign Assets Control of the U.S. Department of the Treasury is publishing for public comment an updated
    version of its internal Economic Sanctions Enforcement Guidelines. 68FR4422 (txt) 68FR4422 (pdf) 1/29/03

  • OCC Transmits Final Rule Regarding Foreign Correspondent Banks

    This bulletin transmits a final rule issued by the Treasury Department amending a previously published rule and extends the time for obtaining information from foreign banks in which a covered financial institution maintains a correspondent account.
    OCC 2003-3 1/29/03

  • FRB Issues Changes to Reg H

    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. 68FR4092 (text) 68FR4092 (pdf) 1/28/03

  • Specifications for Magnetic Media Filing

    The purpose of this specification is to provide the requirements and conditions for filing Suspicious Activity Report by Money Services Business (SAR-MSB), Treasury Form TDF 90-22.56 on magnetic media. Specifications 1/28/03

  • 2003 Savings Bond Seminar Schedule

    The Federal Reserve Financial Services published the 2003 Savings Bond Seminar Schedule. Schedule 1/27/03

  • 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. January 2003 1/27/03

  • FDIC Issues Special Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on State Bank of Kimball, St. Cloud, Minnesota, are currently in circulation. SA-3-2003 1/27/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has updated its list of approved service providers to Cuba. FDIC:FIL-7-2003 [This was previously announced on BOL] 1/27/03

  • FDIC FIL about OFAC Change

    The Department of the Treasury's Office of Foreign Assets Control has amended its list of Specially Designated Nationals and Blocked Persons. FDIC:FIL-8-2003 [This was previously announced on BOL] 1/27/03

  • FTC Releases Top 10 Consumer Complaint Categories in 2002

    The FTC has released its annual report detailing consumer complaints about identity theft and listing the top 10 fraud complaint categories reported by consumers. As in 2000 and 2001, identity theft topped the list, accounting for 43 percent of the complaints lodged in the FTC's Consumer Sentinel database. The number of fraud complaints jumped from 220,000 in 2001 to 380,000 in 2002, and the dollar loss consumers attributed to the fraud they reported grew from $160 million in 2001 to $343 million in 2002. FTC Press Release 1/24/03

  • Civil Money Penalty against Central State Bank

    The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against the Central State Bank, Calera, Alabama, a state member bank. FRB Press Release 1/24/03

  • Civil Money Penalty against La Salle State Bank

    The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against the La Salle State Bank, La Salle, Illinois, a state member bank. FRB Press Release 1/24/03

  • Civil Money Penalty against Simmons First Bank of Russellville

    The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against the Simmons First Bank of Russellville, Russellville, Arkansas, a state member bank. FRB Press Release 1/24/03

  • Civil Money Penalty against Bank of Yellville

    The Federal Reserve Board announced the issuance of an Order of Assessment of a Civil Money Penalty against The Bank of Yellville, Yellville, Arkansas, a state member bank. FRB Press Release 1/24/03

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 38), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:SA-2-2003 1/23/03

  • FDIC Issues Special Alert on Stolen or Missing Money Orders

    The FDIC has learned that 1,200 stolen or missing money orders, drawn on Normandy Bank, St. Louis, Missouri, may be in circulation. FDIC:SA-1-2003 1/23/03

  • OTS Says Georgia Law Doesn't Apply to Federal Thrifts

    The OTS announced that federal law preempts provisions of the Georgia Fair Lending Act (GFLA) from applying to federal savings associations and their operating subsidiaries. The GFLA imposes various restrictions on loans based upon the annual percentage rate and amount of points and fees charged. OTS 03-02 1/23/03

  • OCC Announces Nine New Enforcement Actions and Three Terminations

    The OCC announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and three terminations of existing enforcement actions. OCC:NR 2003-04 1/23/03

  • OCC Releases CRA Evaluations For 39 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of December 15, 2002 through January 14, 2003. The list contains only national banks and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.
    OCC:NR 2003 - 05 1/23/03

  • Fedwire Securities Guide

    This guide provides a brief description, and contact information, of governmental and international agencies issuing book-entry securities through the Federal Reserve Banks. The guide lists each of the agency's products by class code. Guide 1/22/03

  • OCC Concludes Case Against FNB in Brookings Involving Payday Lending, Unsafe Merchant Processing, and Deceptive Marketing of Credit Cards

    The OCC has concluded an enforcement action against First National Bank in Brookings requiring the Brookings, S.D. institution to pay restitution to credit card customers harmed by its marketing practices, terminate its payday lending business and stop merchant processing activities through one vendor. OCC:NR 2003 - 03 Consent Order 1/22/03

  • FDIC FIL about OFAC Change

    Treasury's Office of Foreign Assets Control (OFAC) has unblocked certain property and assets owned by FRY. FDIC:FIL-6-2003 [This was previously announced on BOL] 1/22/03

  • HOEPA APR Reference Rates for February Released

    The Federal Reserve has posted the new reference rates which lenders must use to determine if loans for which applications are received in February will be subject to HOEPA under the APR trigger test. Use the FRB H.15 to find applicable release which lists the Treasury Security with the same maturity term as your loan. To make the calculation, use the yield in effect on the 15th of the month that precedes the month you received the application. FRB: H.15 Releases 1/21/03

  • Money Laundering: A Banker's Guide to Avoiding Problems, December 2002

    This booklet, which updates a 1993 publication, discusses how bankers can identify and manage the risks associated with money laundering and terrorist financing. The revision was prompted by the growing sophistication of money launderers, a growing international response to money laundering, changes to anti-money laundering laws, and recent anti-terrorist financing legislation.
    Booklet 1/21/03

  • Federal Register publishes Proposed Rule to Make it a Requirement That Mutual Funds Report Suspicious Transactions

    The amendment would require mutual funds to report suspicious transactions to the Department of the Treasury. [This was earlier reported on BOL] 68FR2716 (text) 68FR2716 (pdf) 1/21/03

  • Fourth Quarter 2002 Edition of the FDIC's Letter to Stakeholders

    The FDIC issues its third Letter to Stakeholders, a report of the agency's activities in the fourth quarter of 2002. FDIC:FIL-5-2003 Letter to Stakeholders 1/21/03

  • FinCEN Issues Large Civil Penalty Assessment in Conjunction with Criminal Information

    A criminal information filed at U.S. District Court in the District of Puerto Rico charges Banco Popular with one count of failing to file Suspicious Activity Reports (SARs) in violation of Title 31 USC 5318(g)(1) and 5322(a). Banco Popular waived indictment, agreed to the filing of the information, and accepted and acknowledged responsibility for its behavior in a factual statement accompanying the information. The company will forfeit $21.6 million to the United States to settle any and all civil claims held by the government. FinCEN Press Release 1/17/03

  • FRB Makes Available "Identity Theft" Booklet

    "Identity Theft" was developed by the Federal Reserve Bank of Boston and complements the Bank's 2001 issuance of the video, "Identity Theft: Protect Yourself." Addressed to consumers, the booklet describes the dangers posed by identity thieves, what people can do to protect themselves, and what they should do if they discover their identities have been stolen. FRB Press Release 1/17/03

  • Statement by Chairman Greenspan on the retirement of William J. McDonough, president of the FRB of New York

    I will greatly miss Bill McDonough's counsel and advice. After a decade of exemplary service to the Federal Reserve System, his retirement will leave a pronounced void. FRB Press Release 1/17/03

  • Further Test Shows No Anthrax Presence on Sample from Mail to FRB

    The FRB received results from further testing conducted by the State of North Carolina, under the guidance of the Centers for Disease Control. It showed no anthrax bacteria present on a sample from a piece of mail which earlier had tested presumptively positive for the bacteria in a private laboratory. FRB Press Release 1/17/03

  • FinCEN Waiver from Civil Money Penalties for Failure to Timely File Report of Foreign Bank and Financial Accounts

    This serves notice that the Director of the Financial Crimes Enforcement Network (FinCEN) has granted a waiver from civil money penalties for violations of the Bank Secrecy Act, 31 U.S.C. 5314, and its implementing regulation, 31 C.F.R. Part 103.24, to persons who enter into settlement and comply with the terms and conditions of the Offshore Voluntary Compliance Initiative, as provided by the Internal Revenue Service, U.S. Department of the Treasury. FinCEN Notice 1/16/03

  • FTC Issues Consumer Alert on Home Borrowing

    The Federal Trade Commission has issued a revised alert to consumers warning about the dangers of predatory lending. Titled "Need a Loan? Think Twice About Using Your Home as Collateral," the alert points out pitfalls of home borrowing, talks about laws (such as HOEPA) that may provide rights to the consumer, and provides tips for those seeking a loan. PDF version of alert,    HTML version,     FTC Announcement 1/15/03

  • Reauthorization by the Congress of the National Flood Insurance Program

    The FRB informed state member banks of the reauthorization of the National Flood Insurance Program (NFIP) by the Congress, retroactive to December 31, 2002. FRB Press Release, FDIC:PR-4-2003 FDIC:FIL-4-2003 OCC 2003-2 1/15/03

  • The FDIC is seeking public comment on certain proposed changes to Part 303 of the FDIC's Rules and Regulations

    The FDIC is requesting public comment on a proposed rule clarifying the filing and processing of applications submitted by insured depository institutions. Comments on this proposed rule are due by February 25, 2003. FDIC:FIL-3-2003 1/15/03

  • FinCEN Issues Proposed Rule to Make it a Requirement That Mutual Funds Report Suspicious Transactions

    The amendment would require mutual funds to report suspicious transactions to the Department of the Treasury. FinCEN Press Release 1/15/03

  • FDIC to Demystify Basel II Capital Regulation

    The FDIC will analyze impending changes in international capital regulation that could have a far reaching impact on the financial services industry and the global economy, and publish its findings in a series of papers. FDIC:PR-3-2003 FYI 1/15/03

  • NFIP Retroactively Reauthorized

    H.R. 11, the "National Flood Insurance Program Reauthorization Act of 2003" was signed into law by President George W. Bush. It retroactively reauthorizes the National Flood Insurance Program until December 31, 2003, effectively ending the untenable position many lenders found themselves in after the program lapsed 1/1/03. White House Press Release 1/14/03

  • Adoption of Regulation W Implementing Sections 23A and 23B of the Federal Reserve Act

    On December 12, 2002, Regulation W, the rule that comprehensively implements sections 23A and 23B of the Federal Reserve Act, was published in the Federal Register.1 The rule is effective April 1, 2003. SR 03-2 gives a summary of significant issues addressed in the rule. FRB: SR 03-2 1/14/03

  • HUD Issues Proposed Rule to Make Lender Accountability for Appraisals

    This proposed rule clarifies and strengthens HUD's regulations concerning the responsibilities of lenders approved by the Federal Housing Administration (FHA) in the selection of appraisers to perform appraisals on properties that will be the security for FHA insured mortgages. 68FR1765 (text) 68FR1765 (pdf) 1/14/03

  • FRB Issues Final Rule to Reg A to Reflect Interest Rate Change

    The FRB is publishing final amendments to Regulation A to reflect its approval of the initial interest rates for extensions of primary and secondary credit. 68FR1793 (text) 68FR1793 (pdf) 1/14/03

  • Approval of proposal of Royal Bank of Canada and RBC Centura Banks, Inc.

    The Federal Reserve Board today announced its approval of the applications by Royal Bank of Canada, Montreal, Canada, and RBC Centura Banks, Inc., Rocky Mount, North Carolina, under section 3 of the Bank Holding Company Act, to acquire Admiralty Bancorp, Inc., and its wholly owned subsidiary, Admiralty Bank, both in Palm Beach Gardens, Florida. FRB Press Release 1/14/03

  • OCC Proposed Rule Encourages Public Welfare Investments by National Banks

    The OCC proposes to amend its regulation governing national bank investments that are designed primarily to promote the public welfare. National banks and their community partners committed $995 million to public welfare investments in 2001. In order to encourage additional public welfare investments by national banks, the proposal simplifies the regulation and reduces unnecessary burden associated with these investments.
    NR 2003-02 68FR1394 (txt) 68FR1394 (pdf) 1/10/03

  • House Passes Retroactive Flood Insurance Bill

    On January 8, 2003, the House of Representatives passed H.R.11, the National Flood Insurance Reauthorization Act of 2003. The Act extends the Flood Insurance program through Dec. 31, 2003 and makes the effective date for the extension retroactive to December 31, 2002. The legislation now moves to the Senate. News Release H.R.11 1/9/03

  • FRB Issues Final Rule to Reg K - International Lending

    The FRB is amending its regulations relating to international lending by simplifying the discussion concerning the accounting
    for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP). 68FR1158 (txt) 68FR1158 (pdf) 1/9/03

  • Regulators Issue Account Management and Loss Allowance Guidance for Credit Card Lending

    Banking supervisory agencies have jointly issued "Account Management and Loss Allowance Guidance for Credit Card Lending." The guidance is to ensure that financial institutions conduct credit card lending in a safe and sound manner by establishing sound account management, risk management, and loss allowance management practices. This guidance is effective immediately. OCC 2003-1 Guidance FDIC-PR-02-2003 1/9/03

  • Reserve Bank income and expense data and transfers to the Treasury for 2002

    Preliminary figures indicate that the Federal Reserve Banks distributed approximately $24.497 billion of their $26.758 billion total income to the U.S. Treasury during 2002. FRB Press Release 1/9/03

  • FFIEC Abandons Collection of Subprime Lending Data Plan

    On January 7, 2003 the FFIEC announced the proposed plan to collect subprime lending information from quarterly regulatory reports was being dropped. The data will continue to be gathered in the examination process, which will remain the focal point of the regulatory supervision of subprime consumer lending activities. FFIEC Press Release 1/8/03

  • FinCEN Offers Guidance on Definition of Check Casher and BSA Requirements

    Guidance 1/8/03

  • Regulators Request Comment on Removal, Suspension, and Debarment of Accountants From Performing
    Audit Services

    This proposal would amend the Agencies' rules to establish rules of practice and procedure for the removal, suspension, and debarment of accountants and their firms from performing section 36 audit services for insured depository institutions.
    68FR1115 (text) 68FR1115 (pdf) FDIC:FIL-1-2003, FRB Press Release, OTS 03-01 OCC: 2003-1
    1/8/03

  • Primary and secondary credit rates established

    The Federal Reserve Board announced it has approved requests by the twelve Federal Reserve Banks to establish primary and secondary credit rates of 2-1/4 percent and 2-3/4 percent, respectively, effective January 9, 2003. FRB Press Release 1/8/03

  • Holiday District Announcements

    The Federal Reserve Banks will be closed on Monday, January 20, 2003, for the Martin Luther King, Jr. holiday. Announcement 1/8/03

  • FRB Approves Revisions to Subpart D of Regulation K, Governing International Banking Operations

    The final rule will reduce the regulatory burden on banking institutions engaged in international lending by simplifying the requirements concerning accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles (GAAP). FRB Press Release, Final Rule 1/7/03

  • FDIC Issues January 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 October 2002. FDIC:PR-1-2003 List 1/7/03

  • Consumer Advisory Council appointments for 2003

    The Federal Reserve Board named ten new members to its Consumer Advisory Council for three-year terms and designated a new Chair and Vice Chair of the Council for 2003. FRB Press Release 1/6/03

  • OCC Issues Buy-Sell Agreements between Subchapter S Corporations and National Bank Directors

    This advisory letter is intended to refer national banks, especially community national banks, that seek to qualify as Subchapter S corporations for federal tax purposes to an Internal Revenue Service ruling that may be relevant to them. OCC:AL 2003-1 1/2/03

  • FDIC Issues Final Rule on Governing Filing Procedures and Delegations of Authority

    The FDIC Board of Directors has revised the agency's regulation and related policy statements that govern the filing and processing of applications submitted by insured depository institutions. FDIC:FIL-146-2002 1/2/03

  • FDIC Makes Public November Enforcement Actions; One Administrative Hearing Scheduled

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in November. One administrative hearing is scheduled for January 2003. FDIC:PR-135-2002 1/2/03

  • Treasury, SEC and Federal Reserve Submit USA PATRIOT Act Report on Investment Companies to Congress

    The Treasury Department, the Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System today released a report to Congress under the USA PATRIOT Act containing recommendations for applying anti-money laundering controls to investment companies. PO-3721 Treasury Press Release 1/2/03

11/30/2002

Top Stories for December 2002

  • Quicken Loans Settles Adverse Action Notice Charges

    Quicken Loans Inc., a mortgage lender based in Livonia, Michigan, has agreed to settle Federal Trade Commission charges that it failed to provide "adverse action" notices in violation of the Fair Credit Reporting Act (FCRA). The FTC alleges that Quicken Loans failed to comply with the provisions of the Act that require credit grantors who take adverse action to notify the consumer when the action is based wholly or partly on the consumer's credit report. The interesting twist is that this involves online "preapproved" loan applications. Quicken Loans settlement 12/31/02

  • FDIC Updates E.D.I.E.

    The FDIC has developed a CD ROM version of its Electronic Deposit Insurance Estimator (EDIE) for use by bank employees. This version allows users to enter depositor account information much more quickly than the Internet version, and since it is available in CD-ROM, it does not require a connection to the Internet to operate. The banker version also provides a printable report that financial institution staff can share with bank customers. FDIC:FIL-147-2002 - EDIE 12/31/02

  • HMDA Asset Threshold Remains at $32 Million

    The Federal Register has published a final rule announcing that the HMDA Asset Threshold Remains at $32 Million. The asset size threshold for triggering coverage under HMDA, which is tied to the Consumer Price Index, will remain the same for 2003 -- $32 million. To trigger HMDA coverage, a lender must meet the asset test and have an office in an MSA. [This was previously announced on BOL] 67FR79844 (text) 67FR79844 (pdf) 12/31/02

  • FDIC Seeks Comment on Technical Changes/Corrections

    The FDIC has published a notice of proposed rulemaking and request for comment relating to technical corrections and modifications to clarify existing policies and procedures on filings, Corporate Powers, International Banking, Management Official Interlocks. Text; PDF; 12/27/02

  • FDIC Updates Rules to Reflect Internal Reorganization

    The FDIC has published a final rule amending its regulations governing application,notice and request procedures to reflect changes from an internal reorganization order, which included the consolidation of the Division of Supervision and the Division of Compliance and Consumer Affairs into the Division of Supervision and Consumer Protection. Note that the final rule reflects changes in part 303 as a result of the FDIC internal reorganization and does not affect any regulatory requirement imposed by the FDIC on the public. Text | PDF. It also made corresponding changes to its policy statement on mergers, Text; PDF; and Deposit Insurance Applications, Text; PDF. 12/27/02

  • OCC Publishes Notice of Designation - Designation of Nauru and Ukraine as Primary Money Laundering Concerns

    This bulletin announces the Treasury Department's designation of Nauru and Ukraine as primary money-laundering concerns. Bank Secrecy Act section 5318A authorizes the Secretary of the Treasury to designate a foreign jurisdiction, institution, class of transaction, or type of account as being of "primary money laundering concern," and to impose one or more of five "special measures." OCC 2002-47 Notice of Designation, List of Foreign Banks 12/27/02

  • HMDA Asset Threshold Remains at $32 Million

    The FRB has announced that the asset size threshold for triggering coverage under HMDA, which is tied to the Consumer Price Index, will remain the same for 2003 -- $32 million. To trigger HMDA coverage, a lender must meet the asset test and have an office in an MSA. FRB Press Release 12/26/02

  • Denial of proposal of Illini Corporation

    The Federal Reserve Board announced its denial of the application of Illini Corporation, Springfield, Illinois, to acquire Illinois Community Bancorp, Inc., Effingham, Illinois. FRB Press Release 12/26/02

  • Regional Outlook: 4th Quarter 2002

    Credit losses have continued to increase, particularly on commercial loans to corporate borrowers, during the first three quarters of 2002. Regional Outlook 12/26/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Mechanics & Farmers Bank, Durham, North Carolina, Penn Security Bank & Trust Co., Scranton, Pennsylvania and Northrim Bank, Anchorage, Alaska are currently in circulation. FIL-144-2002 12/26/02

  • FDIC Issues Alert on Stolen Cashier's Checks

    The FDIC has learned that a box of cashier's checks, which were stolen during delivery from a third-party printer to the owner of the instruments, Diamond State Bank, Nashville, Arkansas, are currently in circulation. FIL-145-2002 12/26/02

  • Fact Sheet Regarding the Treasury Department's Use of Sanctions Authorized Under Section 311

    Treasury Press Release 12/26/02

  • Banking Industry Performs Strongly As U.S. Economy Slowly Recovers

    Banks posted record earnings in the first nine months of 2002 as the U.S. economy slowly recovered from the recession that began in March 2001. However, according to a report released today in the FDIC's Regional Outlook, credit losses have continued to increase, particularly on commercial loans to corporate borrowers. The FDIC's semiannual review of economic conditions and emerging risks in banking also indicates that a steep yield curve has helped boost net interest income. FDIC:PR -133-2002 12/26/02

  • Realignment of Regional/Area Office and Field Territory Responsibilities

    The FDIC is transitioning certain risk-management responsibilities to the field territory level, streamlining many core risk-management functions. FDIC:FIL-143-2002 12/26/02

  • Banks Play Significant Role in Rural Economic Development

    A new publication issued this week by the OCC highlights the critical role banks play in the economic vitality of rural America through community development corporations and partnerships with government programs. OCC:NR 2002- 97 12/23/02

  • Agencies Release Guidance on Imminent Lapse in FEMA Flood Insurance Authority

    This letter provides guidance to assist national banks in dealing with the period following January 1, 2003, during which the authority of the Federal Emergency Management Agency (FEMA) to issue flood insurance contracts under the National Flood Insurance Program (the NFIP) will lapse. This guidance has been developed in consultation with the other federal supervisory agencies to ensure a consistent approach to this issue. [This was previously announced on BOL] OCC: AL 2002-11 OTS 02-47 FDIC:FIL-142-2002 FDIC:PR-134-2002 12/23/02

  • FATF decides to impose counter-measures on Ukraine; no counter-measures to apply against Nigeria at this time

    Members of the Financial Action Task Force will apply counter-measures1 to Ukraine, in addition to the current application of Recommendation 212. This decision is the result of Ukraine's failure to enact anti-money laundering legislation that meets international standards. FATF Press Release OCC 2002-47 12/23/02

  • OCC Performance and Accountability Report for Fiscal Year 2002

    This report includes OCC management's discussion and analysis, financial discussion and analysis, the independent auditor's report, and financial statements and notes. Report 12/20/02

  • OTS Revises Regulations Governing Affiliate Transactions

    The Home Owners’ Loan Act (HOLA) requires OTS rules to be consistent with Federal Reserve Board rules. Regulation W, issued December 12 by the Federal Reserve Board, is a new comprehensive rule that implements restrictions on affiliate transactions contained in sections 23A and 23B of the Federal Reserve Act, including revisions mandated by the Gramm-Leach-Bliley Act. OTS 02-46 12/20/02

  • Regulators Distribute Call Report for Third Quarter 2002

    Banks should complete your fourth 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 January 30, 2003. FDIC:FIL-141-2002 12/20/02

  • Legal Division Honors Program

    This recruitment program provides valuable, challenging employment opportunities to outstanding law school graduates. Honors Program 12/20/02

  • Written Agreement with Metamora Bancorp

    The FRB announced the execution of a Written Agreement by and among Metamora Bancorp, Inc., Metamora, Ohio; The Metamora State Bank, Metamora, Ohio; the Federal Reserve Bank of Cleveland; and the Ohio Division of Financial Institutions. FRB Press Release 12/20/02

  • Saturday Production Test Schedule 2003

    Saturday Production Test Schedule 2003 12/19/02

  • OCC Issues Advisory Letter 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. OCC:AL 2002-6 12/19/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-140 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-140-2002 12/19/02

  • Agencies Propose Disciplinary Action Rules for Accountants and Accounting Firms Performing Certain Audit Services

    The federal bank and thrift regulatory agencies today invited public comment on proposed rules governing their authority to take disciplinary actions against independent public accountants and accounting firms that perform audit and attestation services required by section 36 of the Federal Deposit Insurance Act. FRB Press Release FDIC-PR-132-2002 OCC:NR 2002-96 OTS 02-45 12/18/02

  • FinCEN Issues Guidance On Interpreting “Frequently” Found In The Criteria For Exempting A Non-Listed Business

    Guidance on Frequency 12/18/02

  • 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. December 2002 12/18/02

  • FDIC Approves the Assumption of the Insured Deposits of the Farmers Bank & Trust of Cheneyville, Cheneyville, Louisiana

    The Board of Directors of the FDIC approved the assumption of the insured deposits of The Farmers Bank & Trust of Cheneyville, Cheneyville, Louisiana, by Sabine State Bank and Trust Company, Many, Louisiana. FDIC:PR-131-2002 Press Release 12/18/02

  • OCC Releases CRA Evaluations For 37 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of November 15 through December 14, 2002. OCC:NR 2002-95 12/18/02

  • FRB Issues Proposal to Expand Operating Hours for the On-line Fedwire Funds Service

    Under the proposal, the Fedwire Funds Service would open three and one-half hours earlier than the current opening time of 12:30 a.m. eastern time (ET). The closing time for the service would remain unchanged at 6:30 p.m. ET. The earlier opening time is expected to further the smooth functioning and continued development of the payments system, as well as to improve efficiency and reduce risk in making payments and settlements. FRB Press Release 12/17/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-139 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-139-2002 12/17/02

  • OCC Announces 14 New Enforcement Actions and 5 Terminations

    The OCC announced 14 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2002-94 12/16/02

  • OCC Reports Derivatives Volume Grows $3.1 Trillion

    Derivatives held by U. S. commercial banks increased $3.1 trillion in the third quarter, to $53.2 trillion, the
    Office of the Comptroller of the Currency reported in its quarterly Bank Derivatives Report. OCC:NR 2002-93 12/16/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Community Bank of the Midwest, Great Bend, Kansas, are currently in circulation. FIL-138-2002 12/16/02

  • FDIC announces a series of steps intended to facilitate the process of rebuilding areas in Guam damaged by Super Typhoon Pongsona.

    Guam has sustained heavy damage to its ports, power and water facilities, a hospital and commercial and residential properties from Super Typhoon Pongsona. As noted in the guidelines, the FDIC is encouraging banks to work constructively with borrowers who are experiencing difficulties due to conditions beyond their control. FDIC:FIL-137-2002 Guidelines 12/13/02

  • FFIEC Publishes Notices and Drafts

    FFIEC publishes FFIEC 002 Initial Federal Register Notice (PDF) and FFIEC 002 Draft Reporting Form (PDF) 12/13/02

  • Appointment of Sandra Pianalto as president of the Federal Reserve Bank of Cleveland

    The Federal Reserve Bank of Cleveland has appointed Sandra Pianalto as the Bank's new president. The announcement was made Thursday by David Hoag, chairman of the Cleveland Bank's board of directors. FRB Press Release 12/13/02

  • Approval of proposal of Bank of Hawaii

    The Federal Reserve Board today announced its approval of the application by Bank of Hawaii, Honolulu, Hawaii, under section 18(c) of the Federal Deposit Insurance Act, to merge with First Savings and Loan Association of America, Dededo, Guam. FRB Press Release 12/13/02

  • Approval of proposal of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.

    The Federal Reserve Board today announced its approval of the application of Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A., Rabobank Nederland, Utrecht, The Netherlands, to become a bank holding company by acquiring VIB Corp, and thereby indirectly acquiring its subsidiary bank, Valley Independent Bank, both in El Centro, California. FRB Press Release 12/13/02

  • Changes to Reg W Published in the Federal Register

    As earlier reported on BOL, Sections 23A and 23B and Regulation W restrict loans by a depository institution to its affiliates, asset purchases by a depository institution from its affiliates, and other transactions between a depository institution and its affiliates. Regulation W unifies in one public document the Board's interpretations of sections 23A and 23B. Final Regulation W will have an effective date of April 1, 2003. The FRB is publishing a final rule that rescinds, as of April 1, 2003, the Board's existing formal interpretations of sections 23A and 23B (which have been incorporated into Regulation W). In addition, the FRB is seeking public comment on a proposed rule that would prevent a depository institution from using an exemption in Regulation W for the purchase of extensions of credit from an affiliate if purchases made under the exemption exceeded 100 percent of the institution's capital. Comment are due January 13, 2003.
    67FR76619 (pdf)..|..67FR76619 (txt) | 67FR76559 (pdf) | 67FR76559 (txt) | 67FR76617 (pdf) | 67FR76617 (txt)
    12/12/02

  • OTS Publishes delay of effective date for Alternative Mortgage Transaction Parity Act

    To rely on AMTPA, certain state chartered housing creditors must comply with regulations issued by the Office of Thrift Supervision (OTS). OTS recently revised its rule identifying the OTS regulations that apply under AMTPA. The effective date is delayed until July 1, 2003. 67FR76304 (pdf) 67FR76304 (text) 12/12/02

  • OTS Issues Final Rule Specifying the Recordkeeping and Confirmation Requirements that Effect Securities Transactions

    Under a rule issued by the SEC, savings associations may perform certain broker-dealer activities without registering with
    the SEC. This final rule affords savings association customers the same protections and disclosures provided to bank customers; ensures that examiners will be able to evaluate a savings association's compliance with securities laws and to assess whether savings associations effect securities transactions safely and soundly; and provides savings associations with formal guidance for effecting securities transactions. 67FR76293 (pdf) 67FR76293 (text) 12/12/02

  • Seven new members named to the Thrift Institutions Advisory Council and new president and vice president named for 2003

    The Council is an advisory group made up of twelve representatives from thrift institutions. The panel was established by the Board in 1980 and includes savings and loan, savings bank, and credit union representatives. The Council meets three times each year with the Board of Governors to discuss developments relating to thrift institutions, the housing industry, mortgage finance, and certain regulatory issues. FRB Press Release 12/12/02

  • Holiday District Announcements Christmas and New Year's

    The Federal Reserve Banks will be closed on Wednesday, December 25, for Christmas and on Wednesday, January 1, for New Year's Day.12/12/02

  • Fed Leaves Rates Unchanged

    The FOMC decided to keep its target for the federal funds rate unchanged at 1-1/4 percent. FRB Press Release12/12/02

  • 2003 Holiday Schedules

    Holiday Schedules 12/12/02

  • Statement of Douglas Roeder, Senior Deputy Comptroller before the Permanent Subcommittee on Investigations

    Statement of Douglas Roeder Senior Deputy Comptroller Office of the Comptroller of the Currency before the Permanent Subcommittee on Investigations of the Committee on Governmental Affairs of the United States Senate. OCC:NR 2002- 92 12/12/02

  • FDIC Publishes Final Rule Implementing Sections of the USA PATRIOT Act That Address Correspondent Accounts for Foreign Shell Banks

    As previously reported on BOL, the final rule would prohibit certain financial institutions from providing correspondent accounts to foreign shell banks. FDIC:FIL-136-2002 12/12/02

  • FDIC Reports Bank Earnings Remained Near Record Levels, While Savings Institutions' Profits Hit a New High in the Third Quarter

    Commercial banks' domestic operations continued to demonstrate earnings strength in the third quarter of 2002, as the industry posted its second-best quarterly net income ever, remaining on pace to set a full-year earnings record. Third-quarter net income of $23.3 billion was slightly below the record $23.4 billion banks earned in the second quarter, but it represented a 34.4-percent improvement from their net income in the third quarter of 2001. FDIC:PR-130-2002 12/12/02

  • Notice of FDIC Agency Meeting

    December 17, 2002 Board Room on the sixth floor of the FDIC Building located at 550 - 17th Street, N.W., Washington, D. C. Announcement 12/12/02

  • Quarterly Banking Profile - Third Quarter 2002

    The Quarterly Banking Profile (QBP) is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured commercial banks and savings institutions. Quarterly Banking Profile 12/12/02

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

    The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release 12/12/02

  • Federal Register Publishes Correction to its Annual Independent Audit Requirements

    The OTS published in the Federal Register of November 25, 2002, a document concerning amending its annual independent audit requirements for small, non-public, highly rated savings associations that voluntarily obtain independent audits. Inadvertently, the comment period was incorrectly stated. The correct date is January 27, 2003. 67FR75809 (pdf) 67FR75809 (txt) 12/11/02

  • Federal Reserve Financial Services Reserve Maintenance Manual

    This manual sets out the fundamental rules of reserve calculation and account maintenance for institutions that file the Report of Transaction Accounts, Other Deposits and Vault Cash (FR 2900), either weekly or quarterly. The Reserve Maintenance Manual was completely revised in 1998 to reflect the adoption of a single master account structure and the return to lagged reserve maintenance for weekly FR 2900 reporters. Reserve Maintenance Manual 12/11/02

  • FDIC Pulished FIL on Final Rule Implementing Information-Sharing Section of USA PATRIOT ACT

    As earlier reported on BOL, 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. FDIC:FIL-135-2002 12/11/02

  • FTC Halts Texas-Based Advance-fee Loan Scheme

    The FTC announced a stipulated final court order settling the case against Antoine Peissel, doing business as The Woodway Group (Woodway), who told consumers they were guaranteed to receive a cash loan or line of credit - but only after paying an up-front $79 fee. FTC Press Release 12/9/02

  • New Consumer Information Pamphlets

    New consumer information pamphlets are available through the Web site of the Federal Reserve Bank of Philadelphia. The seven brochures are: Know Your Depository Institution; What Your Credit Report Says About You; Applying for Credit and Charge Cards; Bank Products: What's Insured and What's Not; Your Credit Rights; How to Establish, Use, and Protect Credit; and Your Credit Rating. New Consumer Information Pamphlets 12/9/02

  • FDIC Issues SSCRA Guidance Reminder

    On December 9, 2002 the FDIC issued a FIL reminding financial institutions of the requirements under the SSCRA and provided a summary of the key provisions of the Act. The FDIC noted, that it is anticipated in light of the frequent call-up of military personnel, financial institutions will receive numerous questions regarding the SSCRA. FDIC:FIL-134-2002 12/9/02

  • Revised Standard Flood Hazard Determination Form

    This bulletin announces and provides the revised Standard Flood Hazard Determination form, "FEMA Form 81-93, Oct 02," which replaces "FEMA Form 81-93, Oct 98." Either form may be used prior to March 1, 2003, when use of the revised form becomes mandatory. OCC 2002-46 Form 12/9/02

  • OTS Delays Effective Date For Parity Act Revisions

    The OTS announced that it is delaying for a period of six months the effective date of a final rule that will remove prepayment and late fee rules from the list of OTS regulations applicable to state housing creditors under the Alternative Mortgage Transaction Parity Act. The final rule, originally scheduled to become effective on January 1, 2003, will now take effect July 1, 2003. OTS 02-44 12/9/02

  • Federal Register Publishes Proposed Revisions to the Official Staff Commentary on Regulation Z

    The proposed update discusses the status of certain credit card-related fees and the rules for replacing an accepted credit card with one or more cards. [This was previously announced on BOL] 67FR742618 (pdf) 67FR742618 (text) 12/9/02

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 37), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-133-2002 12/6/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on AmercianWest Bank, Spokane, Washington, and National Bank of Commerce, Memphis, Tennessee, are in circulation. FDIC:FIL-132-2002 12/6/02

  • FDIC Issues December 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 September 2002. FDIC:PR-129-2002 12/6S/02

  • Interagency Advisory on the Accounting Treatment of Accrued Interest Receivable Related to Credit Card Securitizations

    The OCC, FRB, FDIC and OTS are issuing this advisory to clarify the appropriate accounting treatment for banks and thrift institutions (institutions) that securitize credit card receivables and record an asset commonly referred to as Accrued Interest Receivable (AIR). OCC 2002-45 FDIC:FIL-131-2002 Advisory 12/5/02

  • FRB Announces revisions to its policy and procedures for sponsoring private-sector organizations

    The Federal Reserve Board announced revisions to its policy and procedures for sponsoring private-sector organizations under federal programs that provide priority telecommunications services to entities that are important to national security and emergency preparedness. FRB Press Release 12/4/02

  • Four FedACH Distributions Per Day

    Four FedACH Distributions Per Day 12/4/02

  • Premium Plus Products Effective January 2, 2003

    Premium Plus Products Effective January 2, 2003
    12/4/02

  • Comptroller of the Currency Fees for Year 2003

    This bulletin informs all national banks, federal branches and agencies, and District of Columbia banks of fees charged by the Office of the Comptroller of the Currency (OCC) for year 2003. OCC: 2002-44 (doc file) 12/4/02

  • OTS Announces 109 CRA Exams Scheduled for First Quarter 2003

    The OTS announced that 109 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the first quarter of 2003. OTS 02-43 12/4/02

  • FDIC's 2003 Budget 8 Percent Lower Than 2002

    The Board of Directors of the FDIC approved a 2003 Corporate Operating Budget of $1,070.5 million and a multi-year Investment Budget of $70.4 million. Estimated spending for 2003 will be $1.1 billion, 8 percent lower than the 2002 budget. FDIC:PR-128-2002 12/4/02

  • FDIC Ask for Input on Website

    Website User Questionnaire 12/4/02

  • OCC Issues First Quarter 2003 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the first quarter of 2003.OCC:NR 2002- 91 12/3/02

  • FRB Issues Proposed Revisions to the Official Staff Commentary on Regulation Z

    The proposed update discusses the status of certain credit card-related fees and the rules for replacing an accepted credit card with one or more cards. FRB Press Release 12/2/02

  • FinCEN Issues Guidance on Recordkeeping Requirements under 31 C.F.R. §103.29

    FinCEN receives numerous questions concerning compliance with the Bank Secrecy Act (BSA) recordkeeping requirement found in 31 C.F.R. §103.29. This section requires financial institutions to verify a customer's identity and retain records of certain information prior to issuing or selling bank checks and drafts, cashier's checks, money orders and traveler's checks when purchased with currency in amounts between $3,000 and $10,000 inclusive. Press Release 12/2/02

  • FRB Publishes Final Regulation W that comprehensively implements sections 23A and 23B

    Sections 23A and 23B and Regulation W restrict loans by a depository institution to its affiliates, asset purchases by a depository institution from its affiliates, and other transactions between a depository institution and its affiliates. Regulation W unifies in one public document the Board's interpretations of sections 23A and 23B. FRB Press Release 12/2/02

  • OCC Publishes Questions Concerning Applicability and Enforcement of State Laws; Contacts from State Officials

    This advisory letter describes the general principles that determine whether a state law is applicable to a national bank. It also affirms that the OCC's visitorial powers with respect to national banks are exclusive except when federal law makes provision for another regulator to have a role. OCC:AL 2002-9 12/2/02

  • Establishment of private-sector group to recommend steps to mitigate risk in the clearance and settlement of U.S. government securities

    The Federal Reserve Board announced that it has established a private-sector working group to recommend steps to mitigate risks in the clearance and settlement of U.S. government securities. FRB Press Release 12/2/02

  • FDIC Consumer News

    Smart ways to use credit and debit cards, plus how long to keep bank records. FDIC Consumer News 12/2/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks and Stolen Money Orders

    Counterfeit cashier's checks drawn on Baltimore Trust Company, Selbyville, Delaware, and on First State Bank of California, Granada Hills, California, are in circulation. In addition, a lot of 500 money orders issued by Bank of America, Dallas, Texas, has been reported stolen. FDIC:FIL-128-2002 12/2/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-129 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-129-2002 12/2/02

  • FDIC Issues First Quarter 2003 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 first quarter of 2003. 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-127-2002 12/2/02

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