Top Story Operations Related

The appointment of Matthew J. Eichner as director of the Division of Reserve Bank Operations and Payment Systems has been announced by the Federal Reserve Board. As division director, Mr. Eichner will be responsible for the division's oversight of:

• Federal Reserve Banks' operations
• The development of regulations and policies governing payment, clearing, and settlement systems
• The supervision of systemically important financial market infrastructures
• Carrying out the Board's responsibilities as issuance authority for U.S. currency
• Fostering improvements to the efficiency and integrity of the U.S. payments system more broadly; and the division's research program focused on a variety of payment, clearing, and settlement topics.

In a presentation to the participants at the Eurofi High Level Seminar 2016 in Amsterdam, The Netherlands, Chairman Gruenberg discussed the significant progress that has been made to foster cross-border cooperation among the major jurisdictions of the world on the resolution of systemically important financial institutions, as well as the work of the FDIC on this critically important issue. He noted that in the United States, provisions of the Dodd-Frank Act provided essential new authorities to manage the orderly failure of a systemically important financial institution. The Chairman also discussed the FDIC’s role as an insurer of deposits held in the U.S. banking system.

Treasury has announced the allocation of the final $1 billion in funds under the Hardest Hit Fund (HHF). Thirteen of the 19 participating HHF states will receive additional funds, which were allocated through a competitive application process. In order to qualify for funds in this phase, state housing finance agencies (HFAs) were required to submit detailed applications that demonstrated an ongoing need for additional funding to prevent foreclosures and stabilize housing markets, and lay out a reasonable plan of action to address those needs and fully utilize the funds by December 31, 2020. The Department also posted FAQs with additional information on the HHF allocations.

Treasury Secretary Lew has announced plans for the new $20, $10 and $5 notes, with the portrait of Harriet Tubman to be featured on the front of the new $20. The reverse of the new $10 will feature an image of the historic march for suffrage that ended on the steps of the Treasury Department and honor the leaders of the suffrage movement—Lucretia Mott, Sojourner Truth, Susan B. Anthony, Elizabeth Cady Stanton, and Alice Paul. The front of the new $10 note will maintain the portrait of Alexander Hamilton. The reverse of the new $5 will honor events at the Lincoln Memorial that helped to shape our history and our democracy and prominent individuals involved in those events, including Marian Anderson, Eleanor Roosevelt and Martin Luther King Jr. The reverse of the new $20 will feature images of the White House and President Andrew Jackson. Federal Reserve Chair Yellen also issued a statement on the redesign of the currency. The first of the newly designed notes should enter circulation in 2020.

A letter from the Federal Reserve Bank of Atlanta has been sent to Sixth District financial institutions concerning preparations for the upcoming hurricane season and emergency contact information.

Under a new Executive Order, OFAC has announced the sanctioning of Khalifa Ghweil, who claims to be the Prime Minister and Defense Minister of the “National Salvation Government,” which is aligned with the unrecognized Libyan General National Congress. See our OFAC Update for more information.

The Federal Reserve Board and the California Department of Business Oversight have announced the issuance of a cease and desist order to Commercewest Bank, Irving, California, due to an examination that identified significant deficiencies in its risk management and compliance relating to anti-money laundering including the Bank Secrecy Act.

The NCUA has announced the selection of Cherie Freed as Regional Director of the agency's Region V office in Tempe, Arizona. Freed will be replacing current Regional Director Elizabeth Whitehead, who will retire in May. Region V covers Alaska, Arizona, California, Guam, Hawaii, Idaho, Nevada, Oregon, Utah and Washington.

The Financial Stability Oversight Council (FSOC) has released a statement providing a public update on its review of potential risks to U.S. financial stability that may arise from asset management products and activities. The statement details the Council’s views regarding potential financial stability risks and next steps to respond to these potential risks. The Council’s evaluation of risks focused on: (1) liquidity and redemption; (2) leverage; (3) operational functions; (4) securities lending; and (5) resolvability and transition planning. Remarks by Treasury Secretary Lew prepared for delivery at the FSOC meeting were also released.

The NCUA has announced it will receive $69.8 million from UBS in damages and interest for claims arising from losses to Members United and Southwest, two corporate credit unions that failed during the financial crisis, related to purchases of residential mortgage-backed securities. As liquidating agent for Members United and Southwest, the NCUA Board initiated litigation against UBS. UBS will also be liable for attorneys' fees and expenses in an amount to be determined.