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07/29/2019

Credit card profitability report

The Federal Reserve Board has submitted its 2019 report to Congress on the profitability of credit card operations of depository institutions. The report analyzes the profitability over time of depository institutions' credit card activities by examining the performance of larger institutions that specialize in such activities and of a sample of smaller commercial banks that offer a range of credit services. The report also reviews trends in credit card pricing, including changes in interest rates.

07/29/2019

Fed and FDIC complete 'living will' evals

The Federal Reserve Board and the FDIC have announced several resolution plan actions, including completing their evaluations of the 2018 resolution plans for 82 foreign banks and extending the deadline for the next resolution plans from those firms, as well as 15 domestic banks. The extensions will give the banks additional time to prepare their plans in light of resolution plan rule changes proposed by the agencies in April 2019.

The agencies extended the next full resolution plan submission date for four other foreign banks—Barclays PLC, Credit Suisse, Deutsche Bank AG, and UBS AG—to July 1, 2021. These banks remain required to submit limited plans by July 1, 2020, describing how they have addressed the shortcomings identified in December 2018 and providing updates concerning certain resolution projects.

07/29/2019

FDIC issues guidance following severe storms in MO and TX

The FDIC has issued FIL-44-2019 and FIL-45-2019 to provide financial institutions and facilitate recovery in areas of Missouri and Texas, respectively, following severe storms and flooding (including tornadoes in Missouri).

07/29/2019

OFAC amends Venezuela-related general license

OFAC has published amended Venezuela-related General License 8B, “Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for Maintenance of Operations for Certain Entities in Venezuela.”

07/29/2019

FDIC releases enforcement actions

The FDIC has released a list of enforcement decisions and orders issued in June (and one in late May). There were two civil money penalties totaling $155,700 for patterns or practices of flood insurance-related violations. One, for $19,600, was issued to a bank in Fort Atkinson, Wisconsin. The other was an adjudicated decision following a Recommended Decision by an administrative law judge, and imposed a $136,100 penalty on a bank in New Orleans, Louisiana.

The list also included Removal/Prohibition Orders issued against

  • a former vice president and chief operating officer of Peoples Bank of Moniteau County, Jamestown, Missouri, found to have taken bank funds for her and her family's personal use and falsified bank records to conceal her misconduct
  • a former executive vice president, chief lending officer and regional president of FortuneBank, Arnold, Missouri, who was found to have engaged in a scheme to conceal losses on loans by knowingly making new loans to uncreditworthy borrowers, making loans to nominee borrowers, inflating the value of collateral used to support new loans, misapplying the proceeds of new loans to keep existing loans current, and falsifying bank records

    07/26/2019

    OCC revises and updates booklets

    The OCC has issued Bulletin 2019-38 to announce a fully-revised "Corporate and Risk Governance" booklet of the Comptroller’s Handbook. Also issued was an updated "Internal and External Audits" booklet for the Handbook, with changes that are more limited in scope. The revised and updated booklets:

    • reflect relevant OCC issuances and auditing standards published since the booklets were last issued.
    • reflect the integration of federal savings associations into certain regulations.
    • include clarifying edits regarding supervisory guidance, sound risk management practices, or legal language.
    • clarify the duties and responsibilities of the bank’s board and management. The board is responsible for overseeing the activities of a bank, and management is responsible for implementing the appropriate actions.
    • include some revised content for general clarity.

    The revised "Corporate and Risk Governance" booklet was also reorganized for clarity. Additionally, certain sections of the examination procedures were removed and replaced with cross-references to more comprehensive examination procedures in other booklets.

    07/26/2019

    OFAC targets Venezuelan food network corruption

    Yesterday, OFAC designated Colombian national Alex Nain Saab Moran (Saab), a profiteer orchestrating a vast corruption network that has enabled former President Nicolás Maduro (Maduro) and his regime to significantly profit from food imports and distribution in Venezuela. Also designated were Maduro’s three stepsons, Walter, Yosser, and Yoswal, to whom Saab funneled money in exchange for access to contracts with the Government of Venezuela, including its food subsidy program. Several individuals who were determined to be involved in deceptive practices and corruption and in the Government of Venezuela or projects or programs administered by the Government of Venezuela, or who are immediate adult family members of such persons, or who operate in the gold sector of the Venezuelan economy, or are current or former officials of the Government of Venezuela were also designated, along with a number of companies owned or controlled by the designated individuals. For identity information on the designated individuals and companies, see BankersOnline's OFAC Update.

    07/26/2019

    State updates Cuba Restricted List

    The Department of State has published [84 FR 36154] in this morning's Federal Register its List of Restricted Entities and Subentities Associated with Cuba (Cuba Restricted List) with which direct financial transactions are generally prohibited under the Cuban Assets Control Regulations (CACR), updated through today. This update includes four additional subentities.

    07/24/2019

    OCC bans and fines former Rabobank attorney

    The OCC has announced it has issued a consent order of prohibition and a $50,000 civil money penalty against Daniel Weiss, former General Counsel of Rabobank, N.A., Roseville, California. The OCC's notice of charges alleges that Daniel Weiss, as General Counsel of the bank, participated in the continuous concealment of a third party report assessing the Bank’s Bank Secrecy Act program from, and made false statements to, the OCC.

    In February 2018, Rabobank pleaded guilty to conspiracy to obstruct an OCC examination, and agreed to pay a forfeiture in the amount of $368,701,259 and a $50 million civil money penalty to the OCC.

    07/24/2019

    Large banks' resolution plans released

    The Federal Reserve and FDIC have released the public sections of eight large domestic firms' resolution plans, which are required by the Dodd-Frank Act and commonly known as "living wills." The resolution plans describe the companies' strategies for rapid and orderly resolution under bankruptcy in the event of material financial distress or failure. Eight firms were required to submit plans by July 1: Bank of America Corporation, Bank of New York Mellon Corporation, Citigroup Inc., Goldman Sachs Group, JPMorgan Chase & Co., Morgan Stanley, State Street Corporation, and Wells Fargo & Company.

    The public sections of the resolution plans are available on the FDIC's and the Federal Reserve's websites.

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