Top Story Lending Related

The Federal Reserve has announced two orders of assessment of civil money penalty (CMP) for violations of the Flood Act against Tioga State Bank, Spencer, NY ($4,180) and TransPecos Bank, Pecos, TX ($2,710). The links for details regarding the CMPs have been posted on the BOL Flood Penalties Watch page.

• Joint Agency Release on SEC Action Against Robert L. Bentley, Entrust
  Group and Bentley Financial Services, Inc.

  The joint release notifies all financial institutions that the Securities and Exchange Commission has filed suit against the above-named defendants for suspected securities fraud and has obtained a Temporary Restraining Order to freeze the defendants' assets and appoint a receiver to take control over the defendants' assets until further order of the court. OCC:AL 2001-11 FDIC:FIL-95-2001, NCUA Press Release, FRB:SR 01-26 10/31/01

• FDIC Issues Final Rule Clarifying the Meaning of Engaged In The Business of Receiving Deposits Other Than Trust Funds

  This final rule amends the FDIC's regulations covering filing procedures and delegations of authority, to clarify the meaning of the phrase ``engaged in the business of receiving deposits other than trust funds'' in the Federal Deposit Insurance Act. Under the rule, an insured depository institution must maintain one or more non-trust deposit accounts in the aggregate amount of $500,000 in order to be "engaged in the business of receiving deposits other than trust funds". 66FR54645 (text) 66FR54645 (pdf) 10/30/01

• NCUA makes presentation to Financial Accounting Standards Board

  The NCUA staff participated with other credit union and financial organizations in presenting formal comments to the Financial Accounting Standards Board (FASB) regarding their September 1999 exposure draft “Combinations of Non-stock Depository Institutions. NCUA Press Release 10/30/01

• Dollar Has NCUA Staff Working To Develop “Cost Equity Formula” For Overhead Transfer Rate

  NCUA Chairman Dennis Dollar announced during remarks at the Founders Federal Credit Union annual planning conference that NCUA was working to develop a “cost equity formula” to make its overhead transfer process even œmore efficient and equitable. NCUA Press Release 10/30/01

• FDIC Issues Alert on Fictitious Checks

  The FDIC has learned that fictitious "certified" checks are in circulation. The checks bear the name Sanborne Savings & Trust Company, P.O. Box 1475, Birmingham, AL 35233. FDIC:FIL-94-2001 10/30/01

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

  The OCC has informed the FDIC that the Ministry of Administration, Republic of Palau, has revoked the corporate charter for an entity called First Pacific Development Bank, Ltd., effective August 27, 2001. Proposed transactions involving this entity should be viewed with extreme caution. FDIC:FIL-93-2001 10/30/01

• FTC Seeks Comment on Amending Children's Internet Privacy Rule

  The FTC is seeking public comment on a proposal to extend for two years the period during which Web sites directed to children can use an e-mail message from the parent, coupled with additional steps, to obtain verifiable parental consent for the collection of personal information from children. FTC Press Release, Proposal 66FR54963 (text) 66FR54963 (pdf) 10/29/01

• FDIC Publishes 2000 Program Performance Report

  The 2000 Program Performance Report compares actual performance to the goals established in the FDIC's 2000 Annual Performance Plan. 10/29/01

• FDIC Publishes 2001 - 2006 Strategic Plan

  10/29/01

• OTS Publishes Thrift Bulletin on Lending Limit Pilot Program

  FIRREA revised the lending limits to one borrower for savings associations to parallel those applicable to national banks. Savings associations are now generally allowed to lend no more than 15 percent of their unimpaired capital and surplus to one borrower. TB 79 10/29/01

• FRB Release Board Meeting Minutes

  The FRB released the minutes of its discount rate meetings from May 21, 2001 to September 17, 2001. FRB Press Release 10/29/01

• U.S. Postal Service Mail Delivery to the OCC

  The OCC, along with other agencies and businesses in Washington, D.C., has not received mail from the U.S. Postal Service for the last three days, while the Postal Service deals with the anthrax crisis. If you need immediate assistance or information from the OCC, you may want to call, e-mail, or fax your request. 10/26/01

• OCC Issues General Information on SSCRA

  As a result of the recent activation of military reserves, the OCC has received inquiries about the Soldiers' and Sailors' Civil Relief Act of 1940, 50 USC App. 501 et seq. This advisory is issued to provide general information about certain provisions of the act that may affect national banks. OCC:AL 2001-10 10/26/01

• FRB Issues Proposed Rule to Amend Regulations Relating to International Lending

  The FRB is seeking public comment on a proposal to amend 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). 66FR54399 (text) 66FR54399 (pdf) 10/26/01

• FRB Issues Final Rule to Amend Reg K

  Consistent with section 303 of the Riegle Community Development and Regulatory Improvement Act of 1994 (the Regulatory
  Improvement Act), the Federal Reserve Act, and the International Banking Act of 1978 (the IBA), the Board has reviewed Regulation K, which governs international banking operations, and is amending subparts A, B, and C. 66FR54345 (text) 66FR54345 (pdf) Correction: 66FR58655 (text) 66FR58655 (pdf)10/26/01

• OTS Names Sonja White Director of Examination Policy

  The OTS announced that Sonja White has been appointed to the position of Director, Examination Policy. Ms. White replaces Duane Thorkildsen, who was named Deputy Director of OTS’s Dallas regional office in June. OTS 01-73 10/26/01

• FDIC Publishes Analysis on "How the Banking Industry Has Responded to Crisis"

  How commercial banks have faced crises; their current preparations to expand credit, provide depositors a refuge, sustain profitability. How the Banking Industry Has Responded to Crisis 10/26/01

• SPECIAL REPORT

  "Dark Clouds and Silver Linings -- How the Postal Service Problems May Affect You"

• SPECIAL LEGISLATIVE NEWS ALERT

  The USA PATRIOT ACT

  (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism) was approved by Senate on October 25, 2001. It had previously been passed by the House and may be on the President's desk for signature as early as Friday. The Act contains, in Title III, the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001.

  The intent of International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 is to increase the strength of United States measures to prevent, detect, and prosecute international money laundering and the financing of terrorism and to ensure that banking transactions and financial relationships do not contravene provisions of the US Code or the Federal Deposit Insurance Act.

  The Secretary of Treasury is given broad discretion to take measures tailored to particular money laundering problems presented by foreign institutions and international transactions and to provide guidance to domestic financial institutions on international transactions.

  The Act clarifies the terms of the safe harbor from civil liability for filing SARs and strengthens the authority of the Secretary of the Treasury to issue geographic targeting orders.

  In addition, the Act ensures that all appropriate elements of the financial services industry are subject to requirements to report potential money laundering transactions and jurisdictional disputes do not hinder the examination of compliance by financial institutions with the reporting requirements.

  The Act strengthens measures to prevent the use of the US financial system for personal gain and facilitates the repatriation of any stolen assets to the citizens of the countries to whom such assets belong. USA PATRIOT ACT
  10/25/01

• NCUA Receives Independent Study of Overhead Transfer, Dollar Says Study Backs Agency Approach

  NCUA Chairman Dennis Dollar told a group of community credit union leaders that NCUA has received its long awaited independent
  third-party study of its overhead transfer process and that the “agency came out very well.” NCUA Press Release 10/25/01

• SEC Charges Robert L. Bentley, Bentley Financial Services, Inc. and Entrust Group with Securities Fraud

  NCUA has been notified that the Securities and Exchange Commission charged Robert L. Bentley, Bentley Financial Services, Inc., (“BFS”) and Entrust Group (“EG”), Paoli, Penn., with securities fraud for selling securities misrepresented as insured certificates of deposit (CDs) to hundreds of financial institutions. BFS is a CD broker and EG acts as the custodian for CDs placed through BFS. NCUA Press Release 10/25/01

• OCC Releases Second Quarter Edition of Quarterly Journal

  The September 2001 issue of the Quarterly Journal, Vol. 20, No. 3 (for second quarter 2001), is now available on-line. This issue features the latest "Condition and Performance of Commercial Banks," and data on status of the corporate structure of the national banking system. In addition are the regularly featured speeches and congressional testimony of the agency's executives as well as the legal interpretations of the quarter, the financial performance tables for commercial and national banks based on the latest call-report data for the quarter, and recent corporate decisions. Quarterly Journal 10/24/01

• FDIC Issues FIL on Yugoslavian OFAC Sanctions

  The FDIC has published FIL 92-2001 to notify state-chartered nonmember banks about the 10/3 change that amended OFAC regulations concerning Yugoslavia. [The OFAC change itself was previously covered on BOL.]
  FDIC:FIL-92-2001 10/24/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 20), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL:91-2001 10/24/01

• FTC Launches Telemarketing Fraud Site

  The Federal Trade Commission says telemarketing fraud bilks American consumers out of billions of dollars each year. To provide information to help consumers protect themselves, and guidance for businesses to help them comply with the Telemarketing Sales Rule, the FTC has launched a new Web page "Telemarketing Fraud - Ditch the Pitch". 10/23/01

• FDIC Issues Alert on Counterfeit Official Bank Checks

  The FDIC has learned that counterfeit checks have been drawn on four separate banks and are in circulation. FDIC:FIL-89-2001 10/23/01

• FDIC FIL about OFAC Changes

  The FDIC has published FIL-90-2001 to notify state-chartered nonmember banks about the 10/5 OFAC list changes. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-90-2001 10/23/01

• FDIC Spreads Word about Executive Order

  The FDIC issued FDIC Issues FIL-88-2001 to inform banks under its jurisdiction about the President's Executive Order on Targeting Terrorists. [The Executive Order itself was previously covered on BOL.] FDIC: FIL-88-2001 10/23/01

• FinCEN Releases New SAR Trends/Tips

  The latest issue of the SAR Activity Review is hot off the press. The Highlighted Trend for this issue of the SAR Activity Review is Computer Intrusion, but full statistics. Other notable trends include the use of money transmitters as a money laundering vehicle; use of Traveler's Checks to disguise identities; and more Nigerian letters. FDIC:FIL-96-2001 10/22/01

• OTS' Latest Quarterly Review of Interest Rate Risk Addresses Confusion over Structured Advances

  The OTS has just published an article addressing the, at times, confusing area of Federal Home Loan Bank (FHLB) advances.
  OTS 01-72 10/22/01

• HUD Position on Yield Spread Premiums

  HUD has issued Statement of Policy 2001-1 to clarify its position on yield spread premiums under RESPA in light of two recent court cases. 66FR53051 (text) 66FR53051 (pdf) 10/19/01

• FRB Announces Annual Adjustments for Reserve Calculations and Deposit Reporting

  The FRB announced the annual adjustments in the amount of net transaction accounts used in the calculation of reserve requirements and the cutoff level used to determine the detail and frequency of deposit reporting. FRB Press Release 10/19/01

• Country Risk Management Booklet Online

  The "Country Risk Management" booklet, discusses country risk -- the risk that economic, social, and political conditions and events in a foreign country will adversely affect an institution’s financial interests. It describes the elements of the country risk management process and provides risk-focused examination procedures. 10/19/01

• Veteran NCUA Manager Named Region V Associate Regional Director of Operations

  The National Credit Union Administration Board has selected C. Keith Morton to direct operations for the NCUA regional office in Austin, Texas. NCUA Press Release 10/19/01

• New NIPC Report on Infrastructure Threat

  The National Infrastructure Protection Center has issued a new report "Cyber Protests: The Threat to the U.S.Information Infrastructure". NIPC notes that pro-active network defense and security management are imperative to the prevention of more serious damage to infrastructure assets. 10/18/01

• FRB Issues Final Rule to Reflect the Change in the Discount Rate

  The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. 66FR52850 (text) 66FR52850 (pdf) 10/18/01

• OCC Releases CRA Evaluations For 19 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of September 15 through October 14. OCC:NR 2001-91 10/18/01

• FRB Requests Comment on Proposed Revisions to Subpart D of Regulation K

  The proposal is intended to reduce the regulatory burden on banking institutions engaged in international lending by making the requirements concerning accounting for fees on international loans consistent with generally accepted accounting principles (GAAP).
  FRB Press Release 10/18/01

• FRB Approves Comprehensive Revisions to Regulation K

  The final rule will expand permissible activities abroad for U.S. banking organizations and reducing associated regulatory burdens. It also reduces regulatory burden on foreign banks operating in the United States by streamlining the application and notice processes. FRB Press Release 10/18/01

• Statement of FDIC Director John Reich on Failure of Superior Bank

  FDIC Statement 10/18/01

• Statement of FDIC Chairman on Deposit Insurance Reform

  FDIC Statement 10/18/01

• FDIC Agency Meeting

  The FDIC Board of Directors will meet in open session on October 23, 2001. Meeting Notice 10/18/01

• OCC Announces 6 New Enforcement Actions and 6 Terminations

  The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 6 terminations of existing enforcement actions. OCC:NR 2001- 90 10/18/01

• OTS Details Actions Responding to Attack and Superior Bank

  In the resumption of a Senate Banking Committee hearing on Superior Bank that was postponed shortly after it began on
  September 11, OTS Director Ellen Seidman announced that OTS has issued 27 subpoenas in the Superior case. She reported that agency officials have also had extensive discussions with investigators from the General Accounting Office, and Treasury and FDIC inspector generals. OTS 01-71 10/17/01

• On October 12th Terrorist Additions were Added to the OFAC SDN List

  As earlier reported on BOL, OFAC has added the names of 39 terrorists to its list of Specially Designated Global Terrorists (SDGTs). OCC:Alert 2001-13 10/17/01

• Address Change for CRA and HMDA Data Submissions

  The FFIEC has issued a memo which indicates that due to heightened security concerns, they are changing the mailing addresses for all CRA and HMDA data submissions effective immediately. Because this change may delay receipt of the submissions to the regulators, they strongly encourage all CRA and HMDA data reporters to submit data via email. Consult the memo for complete new address information. FFIEC Memo 10/16/01

• Business Continuity and Security Program Info

  The OCC has rounded up links to a number of issuances related to business continuity plans and security programs to help banks and servicers that are reviewing their business continuity plans and security programs following the terrorist attacks. Institutions of all charters will find these issuances helpful. OCC links 10/15/01

• FRB Allows Banking Organizations some Flexibility in Calculating Capital Ratios for the Third Quarter

  In the aftermath of the September 11 attacks on the World Trade Center, a number of banking organizations have experienced delays in the clearing and settlement of their capital market transactions, such as repurchase and reverse repurchase transactions, securities lending and borrowing transactions, and securities sales. The delays may expose institutions to short-term credit risks they typically do not have when the clearing and settlement systems are operating normally. These credit risk exposures are often greatly mitigated because they are collateralized, in many cases by cash or government securities. FRB:SR 01-24 10/16/01

• FRB Issues Guidelines for Using External Experts on Examinations, Inspections, and Other Bank Supervision
  Matters

  The use of an external expert to meet resource needs is permissible provided the appropriate safeguards are in place to ensure that the Reserve Bank and supervised financial institutions sufficiently are protected from any misuse of information or conflict of interest, and further provided that there are established practices to ensure that an external expert will comply with applicable laws and policies. FRB:SR 01-25 10/16/01

• Comptroller of the Currency speaks to the New York State Department of Banking

  Speech 10/16/01

• Your Insured Deposit Booklet

  Korean and Chinese versions of Your Insured Deposit booklet now available. 10/15/01

• OTS Announces 14 September CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in September 2001. OTS 01-70 10/15/01

• Charter for First Pacific Development Bank, Ltd. Revoke

  The OCC has been advised by the Ministry of Administration, Republic of Palau, that the corporate charter for First Pacific
  Development Bank, Ltd. has been revoked. OCC:2001-12 10/15/01

• OFAC Again Updates

  On October 12, OFAC made changes for the fifth time in less than a month. Today's change added new names and aliases of 39 terrorists to the list of SDGTs. Their assets must be blocked immediately. The SDN material has been revised and the Terrorism brochure has been updated. For details on all the new names and aliases, go to the BOL OFAC page. 10/12/01

• OTS Issued Three Enforcement Orders In August

  The OTS reported that it issued three enforcement orders to one individual and two institutions during August. OTS 01-69 10/12/01

• FRB Announces Modifications to the Method for Calculating PSAF

  The PSAF (private sector adjustment factor) imputes the costs that would have been incurred and profits that would have been
  earned if the Reserve Banks' priced services were provided by a private firm. The revised method will be used to determine the 2002 PSAF and fees for Federal Reserve priced services. FRB Press Release 10/11/01

• NIPC Warns Banks About Hackers

  The NIPC has issued a new warning to financial institutions after it has continued to observe hacking activity targeting the e-commerce or e-finance/banking industry. They point to third-party service providers that employ weak security practices as a particular target of the hackers. NIPC ADVISORY 01-023 10/11/01

• Joint Agency Request Relating to Information Pertaining to the Terrorist Attacks

  The OCC requests your participation in a system to facilitate cooperation with law enforcement authorities in their ongoing
  investigation of terrorist activity. OCC:NR 2001-88 Interagency Letter on the Terrorist Attacks, BOL Cooperating with Law Enforcement 10/8/01

• FDIC Issues October 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 July 2001. FDIC:PR-75-2001 10/8/01

• OCC Supports Efforts of National Banks to Aid in Recovery Efforts

  National banks that support recovery efforts in communities affected by the September 11 terrorist attacks will receive credit under the Community Reinvestment Act, the Office of the Comptroller of the Currency announced. OCC:NR 2001-88 10/8/01

• Interagency data show increase in adversely classified syndicated bank loans

  The 2001 Shared National Credit (SNC)1 review indicates continued deterioration in the quality of syndicated bank loans, consistent with general economic, sectoral, and credit market trends, according to data released Friday by three federal bank regulatory agencies. FRB Joint Press Release, OCC Press Release, FDIC-PR-74-2001 10/8/01

• FTC Unveils Aggressive Privacy Agenda

  In announcing an aggressive pro-consumer privacy agenda, the Federal Trade Commission chairman stated his intention to increase privacy protection resources by 50 percent. The agency revealed a detailed new enforcement plan that will involve initiatives ranging from the creation of a national do-not-call list to greater enforcement of the Fair Credit Reporting Act. Privacy Agenda Overview 10/5/01

• OFAC Again Updates Descriptors

  Late on 10/3/01, OFAC updated, for the second time, the descriptor information on the 27 terrorist-related individuals and entities
  previously added to the OFAC list. In some instances, the updates consist of additional aliases. In other instances, there is simply an alternate date of birth. In addition, it appears that new names not previously listed are found at the end of the
  update. Consult the SDN List and the SDN Changes List for full details of the designations. 10/5/01

• NCUA Chairman Dennis Dollar Takes To The Air; Urges Americans To "Fly And Shop" Again

  It was Dollar's first official travel by air since the events of September 11. He was accompanied to the Open Forum by his Chief of Staff Kirk Cuevas, Special Assistant for Public Affairs Nicholas Owens and Executive Secretary Lynn Calderwood. During the Open Forum, Chairman Dollar told the credit unions leaders that "we all need to be flying again and headed to the malls." NCUA Press Release 10/5/01

• Dollar Says Economic Downturn Emphasizes Need For Quarterly Call Reports

  NCUA Chairman Dennis Dollar told a group of Tennessee and Kentucky credit union leaders that the nation’s present economic downturn, made worse by the unexpected events of September 11, “points out once again that significant changes in the nation’s economy can happen suddenly and without warning.” NCUA Press Release 10/5/01

• FDIC Program Encourages Banks to Make Loans to Those Affected by the September 11 Attacks

  To support rebuilding in New York and Washington after the terrorist attacks of September 11, the FDIC will give the banks it supervises credit under a federal law designed to promote community development when they lend for reconstruction, the agency announced. FDIC: PR-73-2001 10/5/01

• FRB Approves Discount Rate Request

  The FRB approved action by the Board of Directors of the Federal Reserve Bank of Minneapolis and Philadelphia, decreasing the discount rate at the bank from 2-1/2 percent to 2 percent. FRB Press Release, FRB Press Release 10/5/01

• OFAC Special Alert

  A second update was made to the OFAC list on 10/3/01 in the late afternoon. OFAC has published updated descriptor information on the names included in the annex to Executive Order 13224 which was issued by the President with effective date of 12:01am Monday, September 24. The SDN List and the SDN Changes List contain full details of the designations. OFAC is expecting to update the "Terrorism" brochure sometime on 10/04/2001. More OFAC information is available from our OFAC Sanctions Matrix. 10/4/01

• OCC Concludes that GLBA and Barnett Decision Show Parts of West Virginia Law do not Apply to National Banks

  The OCC concluded in an opinion that will be published in the Federal Register that some provisions of a West Virginia
  insurance law would be preempted under the Gramm-Leach-Bliley Act (GLBA) and therefore would not apply to national banks. OCC:NR 2001- 86 Preemption Opinion 10/4/01

• OCC Issues Final Rule on Operating Subsidiaries of Federal Branches and Agencies

  As earlier reported in the Federal Register, the OCC is amending parts 5 and 28 of its regulations to clarify that a federal branch or agency may establish, acquire, or maintain an operating subsidiary in generally the same manner that a national bank may acquire or establish an operating subsidiary. OCC 2001-46 10/4/01

• Massachusetts Attorney Pleads Guilty to Wrongfully Converting Government Funds to Personal Use; Fined $100,000

  FDIC Inspector General Gaston L. Gianni, Jr., has announced that attorney Michael J. Harrington of Beverly, MA, pled guilty on September 20, 2001, in U.S. District Court, Boston, MA, to wrongfully converting to his personal use $226,771 in money and funds of the Hawthorne Hotel, Salem, MA. Harrington was ordered to pay a $100,000 fine. FDIC:PR-72-2001 10/4/01

• Seidman Bids Community Groups and Financial Institutions to Look Beyond CRA

  In her last speech to community groups, OTS Director Ellen Seidman called on them and their financial institution partners to further the spirit of the Community Reinvestment Act by moving beyond it. OTS 01-67 10/4/01

• OFAC Special Alert

  OFAC has published in the Federal Register an amendment to its Yugoslav regulations. Certain blocked FRYK funds transfers can
  be returned to remitters. Others must go forward into blocked accounts at U.S. banks that are the primary holders of those
  accounts. NFA debt is unblocked; other debt needs to be specifically licensed. Yugoslav Summary 10/3/01

• FDIC Report Analyzes Effects of Slowing Economy on Demand for U.S. Office Space

  A slowing economy contributed to softening in some U.S. office markets during the first half of 2001.
  According to a report released by the FDIC, a combination of trends - a drop in demand for office space and an uptick in construction activity in some markets - has led to a slackening of office market conditions. FDIC:PR-71-2001 10/3/01

• FOMC Lower its Target for the Federal Funds Rate

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 2-1/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 2 percent. FRB Press Release 10/3/01

• OCC Announces Realignment of Technology and Compliance Units

  The OCC announced that Grace E. Dailey has been named Deputy Comptroller for Large Banks. The OCC also announced a reorganization involving the realignment of several units and the creation of two new positions. OCC:NR 2001- 85 10/2/01

• FTC to Unveil Aggressive Privacy Agenda

  The FTC announced that it will unveil an aggressive new privacy agenda on October 4, 2001 to increase protection of consumer privacy in the marketplace by focusing on: telemarketing, spam, ID theft, and pretexting, as well as enforcement under the Fair Credit Reporting Act, the Children's Online Privacy Protection Act (COPPA), the Gramm-Leach-Bliley Act and the Telemarketing Sales Rule. BOL will feature a full report on the anticipated impact of this agenda soon after it is released. FTC Press Release 10/2/01

• Help for 20 Worst Threats

  The FBI announced on 10/1/01 that it had teamed up with the computer industry to create a list of the 20 worst threats that have emerged on the Internet and to offer fixes for them in order to encourage users and companies to patch identified vulnerabilities before the next virus appears. The list addresses software bugs in Unix and Microsoft Windows operating systems, and common mistakes, such as inadequate passwords or failure to perform appropriate back-ups. The list and the fixes are available on the Web site of the non-profit Sans Institute, and the Top 20 scanner can be obtained for free by sending an email to the Center for Internet Security, using instructions found on the Sans Institute Web site.
  10/2/01

• FRB appointment of chairmen and deputy chairmen of the twelve Federal Reserve Banks for 2002

  Each Reserve Bank has a board of directors of nine members. The Board of Governors in Washington appoints three of these directors and designates one of its appointees as chairman and a second as deputy chairman. FRB Press Release 10/1/01

• FinCEN Hotline/Reporting Suspicious Transactions Relating to the Recent Terrorist Attacks

  National banks are required to report information concerning known or suspected criminal law violations relating to the recent terrorist attacks to law enforcement authorities by filing Suspicious Activity Reports (SARs) as expeditiously as possible.
  FinCEN Notice , OCC:Alert 2001-10, FDIC:FIL-87-2001, FRB Press Release 10/1/01

• OTS Reminds Thrifts About Law Providing Financial Relief to U.S. Military Personnel

  The OTS reminded thrifts about provisions of the Soldiers and Sailors Civil Relief Act of 1940 that affect certain financial liabilities of military personnel, including in particular military reservists called to active duty, and new members of the armed
  forces. OTS 01-66 10/1/01

• Consumer Advisory Council to hold meeting, open to the public, on October 25 at the Federal Reserve Board

  The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 8:45 a.m. and is open to the public. FRB Press Release 10/1/01

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in August. No administrative hearings are scheduled for October. FDIC:PR-70-2001 10/1/01

• Dollar Announces Historic Open NCUA Budget Briefing and Public Forum –

  NCUA Chairman Dennis Dollar announced that the National Credit Union Administration (NCUA) has scheduled an open Budget Briefing and Public Forum on NCUA’s 2002 budget for November 1, 2001, at the NCUA’s Central Office in Alexandria, VA. NCUA Press Release 10/1/01
  

The Consumer Financial Protection Bureau has posted a CFPB Blog article and released a USAToday.com opinion editorial by Director Cordray explaining what the new CFPB mortgage rules mean to consumers who are shopping for a home loan and while they own their homes.

The FHFA has announced agency direction to Fannie Mae and Freddie Mac to delay the previously announced plans to increase the base guarantee fee for all mortgages by 10 basis points, update the up-front fee grid, and eliminate the up-front 25 basis point adverse market fee that has been assessed on all mortgages. Those changes had been scheduled for implementation in March and April 2014. FHFA said it would give at least 120 days' notice before implementing any changes.

The FHFA has announced agency direction to Fannie Mae and Freddie Mac to delay the previously announced plans to increase the base guarantee fee for all mortgages by 10 basis points, update the up-front fee grid, and eliminate the up-front 25 basis point adverse market fee that has been assessed on all mortgages. Those changes had been scheduled for implementation in March and April 2014. FHFA said it would give at least 120 days' notice before implementing any changes.

• FDIC Issues FIL on Insurance Q&As

  FDIC FIL-84-2001 informs state nonmember banks about the Interagency responses to questions on the insurance consumer protection rules. The questions and answers, which we wrote about previously in Top Stories, were issued August 17, 2001. They can now be accessed in html format on BankersOnline.com. FDIC: FIL-84-2001 9/28/01

• Executive Order Targeting Terrorist Assets

  As earlier reported, President George W. Bush issued an Executive Order targeting terrorists. As a result, a number of new names have been added to Treasury's Office of Foreign Assets Control (OFAC) Specially Designated Nationals and Blocked Persons list. FDIC:FIL-85-2001 9/28/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 19), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-86-2001 9/28/01

• OTS Announces 14 August CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in August 2001. OTS 01-65 9/28/01

• Federal Reserve Board launches interactive web site for students, educators, and the general public

  This site offers students, educators and the general public an introduction to the workings of the Federal Reserve System. FRB Press Release 9/28/01

• FRB of Boston Releases Guide On Check Imaging

  Federal Reserve Bank of Boston released a guide entitled "A Framework for Exchanging Image Returns ," (pdf version) to help banks handle the technical, operational, and legal issues involved in exchanging check images. 9/27/01

• FRB Extends Comment Deadline on Payments System Risk Issues

  The FRB has extended the deadline for its request for comment on the potential longer-term direction of its payments system
  risk policy. The new deadline is November 16, 2001. 66FR49385 (text) 66FR49385 (pdf) 9/27/01

• FRB Issues Final Rule to Change the Discount Rate

  The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank. 66FR49098 (text) 66FR49098 (pdf) 9/26/01

• OCC Issues Final Rule on Operating Subsidiaries of Federal Branches and Agencies

  The OCC is amending its regulations to provide that a Federal branch or agency may establish, acquire, or maintain an operating subsidiary in generally the same manner that a national bank may acquire or establish an operating subsidiary. 66FR49093 (text) 66FR49093 (pdf) Correction 9/26/01

• NCUA Assists FBI Investigation In Correspondence With The Nation's Credit Unions

  NCUA Chairman Dennis Dollar issued a NCUA Letter to Credit Unions upon receiving a formal request for assistance by the Federal Bureau of Investigation (FBI). NCUA Press Release 9/26/01

• Community Bank, Covina, CA - Missing Official Checks

  The FDIC has been informed by the Community Bank, Covina, California, that 300 of the bank's official checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-83-2001 9/26/01

• Ventura Savings Bank - Fictitious Checks in Circulation

  The FDIC has learned that fictitious "official" checks and "certified" checks are in circulation. The checks bear the name Ventura Savings Bank, 1010 Huntcliff Blvd., Roswell, GA 33050. "MEMBER FDIC" is also printed on the checks. FDIC:FIL-82-2001 9/26/01

• Terrorist Additions to the OFAC SDN List

  As earlier reported by BOL, the president has issued a new Executive Order targeting terrorists, and a number of new names have been added to OFAC's Specially Designated Nationals List. Click here to access the summary. OCC:Alert 2001-9 9/26/01

• OCC Issues Proposed Rule to Set Forth the Formula for the Semiannual Assessment

  The amendment would revise the formula to establish a minimum base amount for the semiannual assessment for the first assessment bracket ($0-$2 million) of the assessment schedule. 66FR48983 (text) 66FR48983 (pdf) 9/25/01

• OTS Updates Locations for Filing CRA-Related Agreements

  In accordance with the joint rule titled “Disclosure and Reporting of CRA-Related Agreements,” the OTS has announced that all parties filing CRA-Related agreements or annual reports with OTS should mail paper copies to CRA Sunshine, c/o Dissemination Branch, Office of Thrift Supervision, 1700 G St., N.W., Washington, D.C. 20552 or may now file electronic versions at crasunshine@ots.treas.gov. OTS 01-63 9/25/01

• Interagency-sponsored public workshop on Gramm-Leach-Bliley Act privacy notices set for Dec. 4th

  The workshop will provide a forum to identify successful GLB Act privacy notices, discuss strategies for communicating complex information, and encourage industry self-regulatory efforts and consumer and business education. The workshop will bring together financial institutions, consumer and privacy groups, experts on readability and consumer communication, and others to discuss the issues through moderated panel discussions. Interagency Press Release, OTS, FTC , OCC:NR 2001-84, FDIC-PR-69-2001, NCUA Press Release 9/25/01

• NCUA Chairman Urges "Diligent Management" In America's Credit Unions As Nation Faces Economic Uncertainty
  

  Agency Chief Says Credit Unions “Well Positioned But Not Immune”. NCUA Chairman Dennis Dollar urged credit unions
  to provide “diligent management” as the nation faces a period of economic uncertainty and signs of a downturn. NCUA Press Release 9/24/01

• Credit Unions can make Charitable Contributions

  Credit unions are stepping forward to assist families, businesses and fellow credit unions affected by last week's tragic events by using their authority to make charitable contributions and donations. NCUA Press Release 9/24/01

• Institution Directory

  The FDIC's Institution Directory (ID) and Statistics on Depository Institutions (SDI) have been updated to reflect June 30, 2001 financial information. FDIC Institution Directory 9/24/01

• FDIC Issues Summaries of the Principal Requirements of the National Flood Insurance Act

  Flood hazard determinations must be performed before the closing of loans secured by buildings or
  mobile homes, including loans secured by commercial real estate. Lenders must document the
  determination using the Standard Flood Hazard Determination Form provided by the Federal Emergency
  Management Agency (FEMA) and retain that form for the life of the loan. FDIC:FIL-81-2001 Summary 9/24/01

• Regulators Distribute Call Report for Third Quarter 2001

  Banks should complete your third quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by October 30, 2001, in accordance with the filing requirements discussed below. FDIC:FIL-80-2001 9/24/01

• FDIC Reports Second Quarter 2001 Financial Results for Bank and Thrift Insurance Funds

  The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $706 million for the first six months of 2001, compared to $366 million for
  the same period last year. FDIC:PR-68-2001 9/24/01

• FRB Extends Deadline for Public Comment on Policy on Payment System Risk

  As a result of the September 11 terrorist attacks, some organizations with an interest in the potential longer-term policy direction of the Board's payments system risk policy have had to devote significant resources to ensuring the continued smooth functioning of the payments system and financial markets. The Board has extended the original October 1 comment deadline to
  provide these organizations with adequate time to analyze the issues raised in the notice and to incorporate their perspectives on recent financial market experiences. FRB Press Release 9/24/01

• Treasury Releases 2001 Money Laundering Strategy

  The Administration's 2001 Money Laundering Strategy is now available on the Treasury Department web site.
  9/21/01

• NCUA Lifts Mandatory Compliance Date Electronic Delivery of Disclosures Required by TISA

  Once a permanent final rule is issued, NCUA will afford credit unions a reasonable period of time to comply with the rule. 66FR48206 (text) 66FR48206 (pdf) 9/19/01

• NCUA Issues Final Rule on Nondiscrimination in Real Estate-Related Lending

  The rule provides a federal credit union (FCU) with flexibility in how it gives notice when advertising and allows an FCU to display either the NCUA lobby poster or a similar poster prepared by the United States Department of Housing and Urban Development. 66FR48205 (text) 66FR48205 (pdf) 9/19/01

• NCUA Chairman Dennis Dollar Statement Regarding JoAnn Johnson

  President George W. Bush has announced that he intends to nominate JoAnn Johnson of Iowa to serve on the National Credit Union Administration Board. NCUA Press Release 9/19/01

• FBI Request for Records Search by Banking Organizations

  The Federal Bureau of Investigation has provided the FRB and the other federal financial institutions supervisory
  agencies with a public list of the names of alleged subjects under investigation by the FBI in connection with the World Trade
  Center and Pentagon attacks, and asked all domestic and foreign banking organizations operating in the United States to check
  their records for any relationships or transactions with the named individuals. FRB:SR 01-22, FDIC:FIL-79-2001, OCC:2001-8 9/19/01

• FDIC Ribbon-Cutting Ceremony in Chicago Launches Nationwide Money Smart Program

  The FDIC held a ribbon-cutting ceremony at the Pilsen One-Stop Center in Chicago, Illinois to launch its Money Smart financial education program. FDIC:PR-67-2001 9/19/01

• Dennis Dollar Designated NCUA Chairman

  President George W. Bush announced that he has designated NCUA Board Member Dennis Dollar as the agency's Chairman. NCUA Press Release 9/18/01

• FRB Decreasing the Discount Rate

  The FRB approved actions by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Atlanta and Kansas City, decreasing the discount rate at the bank from 3 percent to 2-1/2 percent, effective immediately. FRB Press Release 9/18/01

• Federal Open Market Committee Lowers Target for the Federal Funds Rate

  The Federal Open Market Committee decided today to lower its target for the federal funds rate by 50 basis points to 3 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 2-1/2 percent. The Federal Reserve will continue to supply unusually large volumes of liquidity to the financial markets, as needed, until more normal market functioning is restored. Federal Reserve Press Release 9/17/01

• FFIEC Distirbutes the June 30, 2001 Uniform Bank Performance Report

  The June 30, 2001 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit
  Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public. FFIEC Press Release 9/17/01

• OCC Transmits Insurance Q& As

  OCC 2001-43 simply informs national banks about the interagency Q&As issued previously that relate to consumer sales of insurance and the Q&As themselves are transmitted to national banks as an attachment to OCC 2001-43. 9/17/01

• NCUA Disaster Assistance Activated for New York City and Arlington, Va. Credit Unions

  The NCUA activated its disaster relief policy to assist credit unions and their members in New York City and Arlington County, Va., following the destruction of the Twin Towers yesterday in New York City and the damage to the Pentagon in Arlington, Va. NUCA Press Release 9/17/01

• NCUA Acting-Chairman Dennis Dollar Statement

  9/17/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published a "Monthly Warning Advisory" (Issue No. 18), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-78-2001 9/17/01

• OTS Reports That Thrift Industry Has Been Operating Normally in Wake of Crisis

  The OTS reported that the thrift industry has been operating normally and that the industry has taken steps to assist customers affected by events related to the September 11 terrorist attacks. OTS 01-61
  9/17/01

• OCC and ABA Postpone Conference on Community and Economic Development

  The OCC and ABA announced that the 2001 National Community and Economic Development Conference scheduled for September 17-19 in Baltimore Maryland has been postponed due to the national tragedy of September 11 and the uncertainty of U.S. airline service.
  OCC:NR 2001-83 9/17/01

• OCC Announces 19 New Enforcement Actions and 5 Terminations

  The OCC announced 19 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 2001- 81 9/17/01

• Swap arrangement between the Federal Reserve and the Bank of England
  

  The Federal Reserve and the Bank of England have agreed to establish a temporary swap facility
  in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars. FRB Press Release 9/17/01

• Federal Reserve encourages banks to work with customers affected by disaster

  The Federal Reserve encourages state member banks and bank holding companies to work with customers who directly or indirectly have been affected by the events of September 11. FRB Press Release 9/17/01

• Federal Reserve and Bank of Canada augment swap facility

  The Federal Reserve and the Bank of Canada have agreed to a temporary augmentation of their existing swap facility in order to facilitate the functioning of financial markets and provide liquidity in U.S. dollars. FRB Press Release 9/17/01

• Swap arrangement between the Federal Reserve and the European Central Bank

  In order to facilitate the functioning of financial markets and provide liquidity in dollars, the Federal
  Reserve and the European Central Bank have agreed on a swap arrangement. FRB Press Release 9/17/01

• Joint Interagency Statement

  Market responses in the aftermath of the tragic events of September 11 could lead to temporary balance
  sheet growth at some banking organizations, including thrifts. This growth could occur if, for example,
  during this period corporate borrowers make unusual draws on their existing lines of credit or request new
  lines in response to a perceived need for extra liquidity, or if a banking organization were to receive
  unusually large deposit inflows. Absent other factors, increases in extensions of credit or large deposit
  inflows would likely result in an increase in total assets. FDIC-PR-66-2001, FRB Press Release, OCC NR 2001-82 , OTS 01-62 9/17/01

• National Infrastructure Protection Center (NIPC) Issues Advisory for Increased Cyber Awareness

  The National Infrastructure Protection Center (NIPC) expects to see an upswing in incidents as a result of the tragic events of September 11, 2001. ADVISORY 01-020 9/14/01

• OCC Releases CRA Evaluations For 13 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of August 15 through September 14. OCC:NR 2001- 80 9/14/01

• Swap arrangement between the Federal Reserve and the European Central Bank

  In order to facilitate the functioning of financial markets and provide liquidity in dollars, the Federal
  Reserve and the European Central Bank have agreed on a swap arrangement. FRB Press Release 9/14/01

• Supervisory Flexibility Due to September 11 Disasters

  The FDIC has issued supervisory guidance that it issued to its examiners relating to the tragic events of September 11, 2001.
  FDIC:FIL-77-2001 9/14/01

• OTS Asks Thrifts to Assist Customers Affected by Terrorist Attacks

  The OTS announced steps thrifts can take to assist customers affected by events related to Tuesday's terrorist attacks in New York City and Washington, DC. OTS 01-60 9/13/01

• OCC Encourages National Banks to Work With Customers Affected by Terrorist Attacks

  The OCC is encouraging national banks to work with customers affected by Tuesday's terrorist attacks in
  New York and Washington. OCC:NR 2001- 79 9/13/01

• OTS Outlines Reasons for Superior Bank Failure and Suggests Remedies

  OTS Director Ellen Seidman detailed the history of the failed Superior Bank for the Senate Banking Committee. “I sincerely believe that this failure was the responsibility of those who owned and managed the institution and related parties,” Ms. Seidman said. However, she stressed that investigations into the failure are still underway by OTS, FDIC, Treasury Inspector General and the General Accounting Office. OTS 01-59 9/13/01

• OTS Issued Eight Enforcement Orders in July

  The OTS reported that it issued eight enforcement orders to three individuals and four institutions and terminated three others during July. OTS 01-58 9/13/01

• OCC Allows National Bank Offices Affected by Emergency to Close

  The OCC issued a proclamation allowing national bank offices affected by the emergency situation to close at their discretion. OCC:NR 2001-78 9/12/01

• Federal Reserve System is open and operating.

  The Federal Reserve System is open and operating. The discount window is available to meet liquidity needs. FRB Press Release 9/12/01

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on the Interamerica Bank, Albuquerque, New Mexico, are in circulation. FDIC:FIL-76-2001 9/11/01

• OCC and ABA Co-Sponsor Community and Economic Development Conference

  The OCC and the ABA will co-sponsor the 2001 National Community and Economic Development Conference titled "Grow Markets....Grow Profits" in Baltimore, Maryland on September 17-19. OCC:NR 2001-77 9/11/01

• NCUA Chief Tells Texas Credit Unions Agency's Streamlined Approach to Adopting Underserved Areas May Open Doors for Greater Expansion into Hispanic Communities

  The nation's federal credit unions have added over 18 million potential members in 2001 and NCUA's streamlined process has helped create this expansion says NCUA Acting Chairman Dennis Dollar. He says these additions will extend low-cost financial services to many underserved Americans and open additional doors for credit unions in “meeting member needs from all walks of life.” NCUA Press Release 9/10/01

• OCC Issues Advisory Letter about obligations under the EFTA and Regulation E

  The OCC wishes to ensure that national banks fully comply with the EFTA's error resolution requirements and that they conduct adequate investigations of claims of unauthorized transactions. The purpose of this advisory letter is to assist banks in
  addressing the compliance and reputation risks of inadequate investigations under Regulation E. OCC:AL 2001-9 9/10/01

• Sinclair National Bank Closed by the OCC and FDIC Appointed Receiver

  Sinclair National Bank, Gravette, Arkansas, was closed by the OCC and the FDIC was appointed receiver. FDIC:PR-63-2001 , OCC:NR 2001-76 9/10/01

• Agricultural Loans Affected by the Drought Oregon and Northern California

  The FDIC is encouraging banks to work constructively with agricultural borrowers affected by the severe drought in the Klamath Basin of Southern Oregon and Northern California. FDIC:FIL-75-2001 9/10/01

• Latest FDIC Survey Finds Some Weakening In Real Estate Markets

  The latest results of the FDIC's Survey of Real Estate Trends indicated somewhat weaker conditions in the nation's real estate markets, particularly for local offices. Although reports of stability continued to dominate, the survey results indicate some deterioration in real estate markets. FDIC: PR-62-2001 9/10/01

• OCC Reports "More Normal" Derivatives Trading Revenue for Banks

  U.S. commercial banks earned $2.8 billion from cash instruments and derivatives activities in the second quarter of 2001, down from the $4.0 billion record revenue of the first quarter. The notional amount of derivatives in insured commercial bank portfolios increased by $3.9 trillion in the first quarter, to $47.8 trillion. OCC:NR 2001- 75 9/10/01

• Thrift Industry Earnings Set Quarterly Record

  Thrift industry earnings rose sharply during the second quarter of 2001 to a record $2.5 billion, the OTS reported. OTS Director Ellen Seidman attributed the strong earnings to continued strength in the housing market coupled with low mortgage interest rates. OTS 01-57 9/7/01

• FDIC Distributes HUD's 2001 Adjusted Median Family Income Figures

  The FDIC distributed the 2001 median family income figures developed by the Department of Housing and Urban Development (HUD) for each metropolitan statistical area (MSA) and the statewide portions of nonmetropolitan areas. FDIC:FIL-74-2001 9/6/01

• Commercial Banks Earn Almost $20 Billion In Second Quarter, 2001

  Insured commercial banks earned $19.2 billion in the second quarter of 2001, the Federal Deposit Insurance Corporation announced. FDIC:PR-61-2001 9/6/01

• FDIC Issues September List Of Banks Examined For CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in June 2001. FDIC:PR-60-2001 9/6/01

• OCC Issues Final Rule to Amend the Percentage of Capital and Surplus a Bank may Loan

  As earlier reported in the Federal Register, this final rule establishes a three-year pilot program that creates new
  special lending limits for 1-4 family residential real estate loans and loans to small businesses. Eligible national banks with main offices located in states that have a lending limit available for residential real estate, small business or unsecured loans that is higher than the current Federal limit may apply to take part in the pilot program. OCC 2001-42 9/6/01

• OCC Issues Fourth Quarter 2001 CRA Examination Schedule

  The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 2001. OCC:NR 2001- 74 9/6/01

• FDIC Issues Fourth Quarter CRA Examination Schedule

  The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2001. FDIC:PR-59-2001 9/4/01

The CFPB has announced the release of additional resources for consumers regarding the new protections provided by the Bureau's mortgage rules. The new materials include sample letters that consumers can send to their mortgage servicers, mortgage tips, answers to questions, consumer tools, and fact sheets. Print copies of the materials are available in seven languages.

The CFPB has announced the release of additional resources for consumers regarding the new protections provided by the Bureau's mortgage rules. The new materials include sample letters that consumers can send to their mortgage servicers, mortgage tips, answers to questions, consumer tools, and fact sheets. Print copies of the materials are available in seven languages.

• Latest FDIC Consumer News Offers Tips for Safe Shopping Over the Internet

  The latest edition of FDIC Consumer News offers practical guidance on how to become a smarter, safer user of financial services. 8/31/01

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

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for September. FDIC:PR-58-2001 8/31/01

• OCC Summary of Community Development Investments Underscores the Impact of Local Partnership Efforts

  The OCC released a directory summarizing all Part 24 national bank investments made during 2000. Part 24 investments are
  investments that support community development, that are made pursuant to Part 24 of the OCC's regulations. OCC:NR 2001-73 8/31/01

• FRB Issues Final Rule to Decrease the Basic Discount Rate

  The FRB has amended its Regulation A, Extensions of Credit by Federal Reserve Banks to reflect its approval
  of a decrease in the basic discount rate at each Federal Reserve Bank. The Board acted on requests submitted by the Boards of Directors of the twelve Federal Reserve Banks. 66FR45752 (text) 66FR45752 (pdf) 8/30/01

• Donald E. Powell Sworn in as 18th FDIC Chairman

  "I've spent my entire professional career as a banker and look forward to working with the dedicated and
  trusted people of the FDIC," said Chairman Powell. "This is an exciting time in the banking industry, and I
  am honored to be able to have a hand in shaping the issues that lie ahead." FDIC:PR-57-2001 8/30/01

• FDIC Distributes the FFIEC CD-ROM on Financial Privacy and Information

  The CD-ROM, developed by the FFIEC, contains reference and training materials on consumer financial privacy. The CD-ROM may be used to help your staff:

  • understand the Gramm-Leach-Bliley Act privacy provisions,
  • implement effective policies and practices to maintain compliance with the new privacy rule, and
  • protect the security and confidentiality of customer information.
    FDIC:FIL-73-2001 8/29/01

• FDIC Distributes FinCEN SAR Bulletin

  The SAR Bulletin, published by FinCEN is part of a series of overviews of trends and patterns in money laundering derived from the Suspicious Activity Report (SAR) database that can help financial institutions prevent and detect financial crime. FDIC:FIL-72-2001 8/29/01

• FDIC Publishes OSFI Monthly Warning Advisory

  The Office of the Superintendent of Financial Institutions of Canada has published a "Monthly Warning Advisory", which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-71-2001 8/29/01

• FDIC Seeks Comment on Study of Banking Regulations Regarding the Online Delivery of Banking Services

  As previously reported in the Federal Register, the FDIC has issued "Request for Comment on Study of Banking Regulations Regarding the Online Delivery of Banking Services." Section 729 of the Gramm-Leach-Bliley Act requires the FDIC to review its regulations regarding the delivery of financial services and report recommendations to Congress for adapting existing requirements to online banking and lending. FDIC:FIL-70-2001 8/29/01

• FDIC Web Page Allows Users to Search for Unclaimed Funds from Failed Banks

  The FDIC may be holding unclaimed funds in one of two ways: either as unclaimed insured deposits or as undeliverable dividend checks. The new Web page provides depositors of failed institutions who did not claim their funds previously, or whose dividend checks were returned to the FDIC as undeliverable, an opportunity to claim their funds. FDIC:PR-56-2001 8/28/01

• OTS Announces 46 CRA Exams Scheduled for 4th Quarter 2001

  The OTS announced that 46 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the fourth quarter of 2001. OTS 01-56 8/28/01

• As Growth Trust Activities Increases, OTS Focuses on Risk-Based Exams

  The OTS has released its updated Trust and Asset Management Handbook, designed to assist OTS examiners in planning and conducting examinations of trust and asset management products and services provided by savings associations. OTS 01-54 8/28/01

• OCC Offers Bank Directors Seminar

  This one-day workshop will allow directors to interact with senior OCC staff experienced in the risk assessment process through a
  combination of lectures, discussions and exercises. Banker Education 8/27/01

• FDIC Publishes FFIEC Guidance on Authenticating Identity of Online Customers

  This guidance focuses on the risk-management controls necessary to authenticate the identity of customers accessing electronic financial services. It also addresses the verification of new customers and the authentication of existing customers. The guidance applies to both retail and commercial customers. FDIC:FIL-69-2001 8/27/01

• FDIC Issues InfoSec Exam Procedures

  The FDIC's examination procedures for customer information security are now available to help both examiners and financial institutions understand compliance expectations in this area. FDIC:FIL-68-2001 8/27/01

• FRB Publishes List of Foreign Margin Stocks

  The List of Foreign Margin Stocks is composed of certain foreign equity securities that qualify as margin securities
  under Regulation T. The Foreign List is published twice a year by the Board. 66FR44525 8/24/01

• OTS Publishes Thrift Industry Interest Rate Risk Measures Newsletter

  First Quarter 2001 Newsletter contains the most recent industry statistics for several measures of interest rate risk (IRR): the Post-Shock Net Portfolio Value (NPV) Ratio, the Interest Rate Sensitivity Measure, the Pre-Shock NPV Ratio, and the Change in NPV Ratio. 8/24/01

• FFIEC Financial Privacy InfoBase Available on Web

  It is now possible to access the FFIEC Financial Privacy InfoBase online. This interactive training resource allows you to customize your view of the information, looking at it in alphabetical order, by agency, by document type, or in chronological order. Download the Flash plug-in and hook up your speakers, because in addition to documents, there are multimedia presentations. 8/24/01

• OTS Distributes Financial Privacy Infobase CD-ROM

  This CD contains a variety of both print materials and audio-visual training segments on the Privacy of Consumer Financial Information (“the privacy rule”), section 305 of the Gramm-Leach-Bliley Act. OTS CEO Ltr 144 8/23/01

• OTS Announces July CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in July 2001. OTS 01-55 8/23/01

• HUD Issues Final Rule to Govern payments on Ginnie Mae

  The rule requires that payments on Ginnie Mae MBS due to Depositories be made in immediately available funds and supersedes any current provisions allowing those payments to be made by check. Payments to other security holders may be made by check or other means provided the check is received by the security holder not later than the applicable payment date specified in the Ginnie Mae Mortgage-Backed Securities Guide. 66FR44257 (text) 66FR44257 (pdf) 8/22/01

• Regulators Respond to Insurance Consumer Protection Rules Questions

  Regulators responded to questions submitted by ABA and ABIA relating to the insurance consumer protection rules implementing section 305 of the Gramm-Leach-Bliley Act. Letter 8/22/01

• FRB Lowers Interest Rate

  The FOMC decided to lower its target for the federal funds rate by 25 basis points to 3-1/2 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 3 percent. FRB Press Release FRB Press Release, FRB Press Release 8/22/01

• FDIC Appoints CEO and Selects Financial Advisor for Superior Federal, FSB, Hinsdale, Illinois

  The Board of Directors of the FDIC announced that John D. Broderick has been appointed president and chief executive officer of Superior Federal, FSB, Hinsdale, Illinois (New Superior). FDIC: PR-55-2001 8/21/01

• FRB to purchase office building in Washington, DC

  The FRB announced it has contracted to purchase from Mack-Cali Realty Corporation of Cranford, N.J., an eight-story, 173,390 square-foot* office building located at 1709 New York Avenue, N.W., Washington, D.C., for $67 million. FRB Press Release 8/21/01

• OCC Releases CRA Evaluations For 20 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of July 15 through August 14. OCC:NR 2001-71 8/17/01

• Gale Cincotta a "National Treasure," Says Comptroller Hawke

  Comptroller of the Currency John D. Hawke, Jr. issued a statement regarding community activist Gale Cincotta, who passed away on August 15. OCC:NR 2001-72 8/17/01

• FRB Final Rule on Subs Published in Federal Register

  The final rule of the Federal Reserve Board implementing the financial subsidiary provisions of the Gramm-Leach-Bliley Act for state member banks has now been published in the Federal Register. GLBA authorizes state member banks that comply with the requirements of the rule to control, or hold an
  interest in, a financial subsidiary which may conduct certain financial activities that are not permissible for the parent bank to conduct directly. The final rule is substantially similar to the interim rule that the Board adopted in March 2000. The effective date of the final rule is September 17, 2001. 66 FR 42929 [text] 66 FR 42929 [PDF] 8/16/01

• NCUA Mid-year Statistics - Assets, deposits and investments surge at midyear 2001

  Expanding rapidly, federally insured credit union assets grew 8.9 percent, while savings grew nearly 10 percent and the amount of money placed in investments grew 11.4 percent in the first six months of 2001, according to midyear call report data. NCUA Press Release 8/16/01

• Dollar AIMs For Minimum 4% NCUA Staff Reduction As Agency Begins Work On 2002 Budget

  NCUA Acting Chairman Dennis Dollar told a group of agency department directors today that he will propose a minimum four percent (4%) NCUA staff reduction to be accomplished in the 2002 and 2003 budget cycles. NCUA Press Release 8/16/01

• OCC Distributes CRA: Income Level, Median Family Income

  OCC Distributes 1990 U.S. Census and 2001 Department of Housing and Urban Development (HUD) estimated median
  family incomes for metropolitan statistical areas (MSA) and non-MSA portions of each state. OCC 2001-40 8/16/01

• FRB Publishes FFIEC Guidance on Authentication

  The federal banking agencies recently issued guidance for examiners and banking organizations. The guidance addresses authentication in an electronic banking environment. FRB:SR 01-20 8/16/01

• FDIC Issues Alert on Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on Atlantic Bank, New York, New York, are in circulation. The counterfeit items bear no resemblance to the legitimate checks. The address of 211 W. 53rd Street, New York, New York, does not match any Atlantic Bank branch location. FDIC:FIL-67-2001
  8/15/01

• OCC Announces New Enforcement Actions and Termination

  The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 1 termination of an existing enforcement action. OCC:NR 2001- 70 8/15/01

• FDIC Publishes FRB Notice on Lifting Mandatory Compliance Date for Interim Rules Amending Regulations B, E, M, Z, and DD

  As earlier reported in Federal Register, the FRB announced it had lifted the October 1, 2001, mandatory compliance date for interim rules governing the electronic delivery of certain consumer disclosures. FDIC:FIL-66-2001 8/14/01

• OCC Publishes Alert on Fraud Prevention Regarding the Issuance of Tax Relief Treasury Checks

  OCC:Alert 2001-7 8/14/01

• FRB adopts final rule implementing the financial subsidiary provisions of the GLB Act for state member banks

  The final rule is substantially similar to the interim rule that the Board adopted last year and issued for comment. The rule continues to allow qualifying state member banks to use a streamlined notice procedure to establish a financial subsidiary.
  FRB Press Release 8/14/01

• FRB Revises Reports of Examination of Community Banking Organizations

  Developments in technology, the expansion of financial services, and a risk-focused approach to examinations necessitate increased flexibility in structuring and organizing the content of reports of examination. The FRB has collaborated on the development of guidance on the format of reports of examination for community banking organizations. FRB:SR 01-19 8/14/01

• OCC Releases First Quarter Edition of Quarterly Journal

  The June 2001 issue of the Quarterly Journal, Vol. 20, No. 2 (for first quarter 2001), is now available on-line. 8/13/01

• FFIEC Guidance on Authenticating Identity of Online Customers

  The FFIEC has released a guidance document, "Authentication in an Electronic Banking Environment", to address the verification of new customers and the authentication of existing customers in electronic banking. It provides guidance on the risks and risk management controls which are necessary for proper identity authentication, and applies to both retail and commercial customers. FFIEC Press Release     Guidance Document 8/9/01

• Comptroller Highlights Opportunities in Ethnically-Diverse Market

  In the lead article of OCC’s summer 2001 community affairs newsletter, Comptroller of the Currency John D. Hawke, Jr. underscores the opportunities for national banks to meet the fast-growing needs of an ethnically-diverse financial services market. OCC 2001-69 8/9/01

• Federal Register Publication of E-Regs Delay

  The previously announced push back of the compliance deadline for the e-regs has now been made official with publication in the Federal Register. 66 FR 41439 [text] 66 FR 41439 [PDF] 8/8/01

• OCC Integrates Canary Early Warning Process into Community Bank Supervision Booklet

  The Office of the Comptroller has revised its 1998 "Community Bank Supervision" booklet in the
  Comptroller's Handbook, to integrate the Canary early warning process (a risk level assessment) into community bank supervision and makes the assessment of a community bank's information technology part
  of its safety and soundness examination. Community Bank Supervision Booklet 8/7/01

• FRB Publishes Spanish Version of Complaint Brochure

  The Federal Reserve Board has published a Spanish version of its brochure for consumers, "How to File a Consumer Complaint About a Bank". The brochure covers the kinds of complaints the Federal Reserve System investigates and information needed from consumers in order to assist in an investigation. The brochure also provides information about major consumer protection laws and lists the other federal regulatory agencies and the types of financial institutions they supervise. FRB PR 8/7/01

• FDIC Issues August List of Banks Examined For CRA Compliance

  The Federal Deposit Insurance Corporation (FDIC) today issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in May 2001. 8/6/01

• FRB Lifts Compliance Deadline on E-regs

  The Federal Reserve has issued a press release announcing the lifting of the October 1, 2001 mandatory compliance date for interim rules governing the electronic delivery of certain consumer disclosures that amended Regs B, E, M, Z and DD.
  Based on the comments received, the Board is considering adjustments to the rules
  to provide additional flexibility. The Board is, therefore, lifting the
  October 1, 2001 compliance date for the interim rules. Once permanent
  final rules are issued, the Board expects to afford institutions a reasonable
  period of time to comply with those rules.
  FRB Notice 8/3/01

• Regulators Issue Advance Notice of Proposed Rulemaking Regarding CRA

  As earlier reported in the Federal Register, this advance notice of proposed rulemaking (ANPR) seeks public comment on a wide range of questions as part of the review. The regulators also welcome comments discussing other aspects of the CRA regulations and suggesting ways to improve the efficacy of the regulations. FDIC:FIL-65-2001 8/3/01

• OTS Issued Five Enforcement Orders In June

  The OTS reported that it issued five enforcement orders to three individuals and one institution during June. OTS 01-53 8/3/01

• FDIC & OCC Publish FFIEC CRA Q & A s

  As earlier reported in the Federal Register, the FFIEC sent out an update of "Interagency Questions and Answers
  Regarding Community Reinvestment", which is a comprehensive interpretation of the Community Reinvestment Act
  regulations. OCC 2001-39 FDIC:FIL-64-2001 8/3/01

• Statement of Ellen Broadman Before The Subcommittee On Capital Markets, Insurance And Government Sponsored Enterprises

  OCC discusses the Securities and Exchange Commission’s Interim Final Rules
  Testimony OCC:NR 2001- 68 8/3/01

• OTS Approves AIG Acquisition of American General Bank

  The OTS announced the approval of the application from American International Group, Inc. (AIG), New York, N.Y., the savings and loan holding company of AIG Federal Savings Bank (AIG Bank), Wilmington, Del., to acquire control of American General Corporation (American General), Houston, Texas, and American General Finance, Inc. (AGFI), a wholly-owned subsidiary of American General
  and parent savings and loan holding company of American General Bank, FSB (American General Bank), Midvale, Utah, and to merge American General Bank into AIG Bank. OTS 01-52 8/2/01

• OCC Distributes New Form for National Bank Community Development Investments

  The new form provides a convenient method for national banks to self-certify or to request prior approval of a community development investment. OCC 2001-38 8/2/01

• OCC Releases the FFIEC Guidance "Authentication in an Electronic Banking Environment"

  This interagency guidance reviews the risks and risk management features of a number of existing and emerging authentication
  tools. These tools are necessary to initially verify the identity of new customers and to authenticate existing customers that access electronic banking services. OCC:AL 2001-8 8/1/01

The Bureau has announced the release of an Ability-to-Repay: Fact vs. Fiction Guide intended to help dispel some of the most common misconceptions about what the rule actually means for consumers.