• Banking Agencies Issue Host State Loan-to-Deposit Ratios

  The FRB, FDIC and OCC 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 Joint Press Release, OCC 2001-29, FDIC-PR-47-2001 FDIC:FIL-56-2001 6/29/01

• OFAC CORRECTS ERRORS IN DOWNLOADABLE FILES

  At 1:30 p.m. yesterday, OFAC corrected errors in the downloadable delimited .zip and .exe files it makes available on its Web site. Earlier yesterday, as noted in yesterday's special BOL OFAC alert, the Office of Foreign Assets Control updated the OFAC list to add 35 new specially designated nationals who are believed to threaten stabilization efforts in the Western Balkans. The errors in the downloadable files related to those earlier changes and affect only those people who downloaded the files within the few hours between when the list changed and when the delimited file errors were discovered and corrected by OFAC.6/28/01

• Comptroller Views Underwriting Tightening Rational Response to Previous Lending Excesses

  The OCC's seventh annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened during the 12-month period ending March 31, 2001. OCC:NR 2001-59 6/28/01

• FOMC Lowers Target for Federal Funds by 25 Basis Points

  The FOMC at its meeting decided to lower its target for the federal funds rate by 25 basis points to 3-3/4 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 3-1/4 percent. FRB Press Release 6/28/01

• OFAC List Updated with New SDNs

  The Office of Foreign Assets Control has updated its SDN list June 27, 2001, in light of a new Executive Order from President Bush blocking property of persons "who threaten international stabilization efforts in the Western Balkans." The names of 35 new Specially Designated Nationals (SDNs) have been added to the list. Get the details. 6/27/01

• Douglas W. Roeder Appointed Senior Deputy Comptroller for Large Banks

  Comptroller of the Currency John D. Hawke, Jr. announced that Douglas W. Roeder has been appointed Senior Deputy Comptroller for Large Banks. In this newly established position, Mr. Roeder will be responsible for examinations and supervision activities in the largest national banks and for overseeing operations in the OCC's London office. OCC:NR 2001-58 6/26/01

• FDIC Press Briefing on Wednesday, June 27, at 9:30 a.m.

  At a press briefing on Wednesday, June 27, at 9:30 a.m., FDIC staff analysts will provide details on first-quarter 2001 earnings for the commercial banking and thrift industries. 6/26/01

• FRB Issues Correction to Proposed Regulation W Rule

  This Proposed Rule seeks comment on whether the Board should exempt extensions of credit by a bank to any person that are secured by shares of a mutual fund for which the bank or an affiliate of the bank acts as investment adviser. 66FR33649 (text) 66FR33649 (pdf) 6/25/01

• FDIC Reports On Banking Industry Readiness

  U.S. banks generally are well positioned to deal with difficulties if the economy continues to slow, the
  FDIC reported. FDIC:PR-46-2001 6/25/01

• Regulators Mail Second Quarter Call Report Information

  Reports of Condition and Income (Call Report) for Second Quarter 2001 aree due by July 30, 2001. FDIC:FIL-55-2001 6/25/01

• NCUA amends Truth in Savings Act (TISA)

  NCUA is amending the Truth in Savings Act (TISA) to address electronic
  advertisements. These amendments conform to the Electronic Signatures
  in Global and National Commerce Act (E-Sign Act). This rule is effective
  June 21, 2001, however the mandatory compliance date is October 1, 2001
  to allow time for any necessary operational changes. NCUA: 66FR33159 6/21/01

• NCUA proposes amendments to various rules

  The NCUA Board is proposing amendments to various rules to make technical corrections and add and revise certain definitions. Comments must be received on or before August 20, 2001. NCUA: 66FR33211 6/21/01

• OTS increases costs of supervising 3-, 4-, and 5-rated institutions

  The Office of Thrift Supervision (OTS) is amending its assessments rule to more accurately reflect the increased costs of
  supervising 3-, 4-, and 5-rated institutions. As amended, OTS will compute the condition component of a savings association's assessment at 50 percent of the size component for 3-rated institutions, and 100 percent of the size component for 4- and 5-rated institutions. The new rates will be effective July 23, 2001. OTS: 66FR33157 6/21/01

• OTS Issued Two Enforcement Orders In April

  The OTS reported that it issued a cease and desist order and civil money penalty both dated April 17, to Dennis M. Ware, former employee of Banco Popular, Newark, New Jersey. OTS 01-40 6/21/01

• OTS and Thrifts Strong and Prepared, Director Seidman Tells Senate

  The nation's thrift industry and its primary regulator, the Office of Thrift Supervision, are “strong and prepared to meet the challenges ahead,” OTS Director Ellen Seidman testified at a Senate Banking Committee oversight hearing on the condition of the U.S. financial system. OTS 01-39 6/21/01

• Comptroller Cites Industry Trends that Give Cause for Concern

  Comptroller of the Currency John D. Hawke, Jr. told a Senate panel that while banks are far better prepared to deal with a slowing economy than they were at the onset of the last economic downturn in 1990, there are trends in the industry that give cause for concern. OCC: NR 2001-57, Speech 6/21/01

• OCC Announces New Enforcement Actions

  The OCC announced 9 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- 56 6/21/01

• Identity Theft Highlighted in SAR Activity Review

  There has been a dramatic increase in the number of incidents of identity theft reported by banks on suspicious activity reports (SARs). This finding is reported in the second issue of the SAR Activity Review – Trends, Tips and Issues, a collaborative report being released today which provides feedback to the financial, law enforcement and regulatory communities based on analysis of the SAR data. FinCEN News 6/19/01

• FDIC Takes Steps to Help Rebuild Areas Affected by Tropical Storm Allison

  The FDIC has announced a series of steps intended to facilitate the process of rebuilding in Houston and surrounding communities damaged by the storm. The FDIC has issued guidelines encouraging banks to work constructively with borrowers who are experiencing difficulties due to conditions beyond their control. FDIC:FIL-54-2001 6/19/01

• OCC Reports Record Derivatives Trading Revenue for Banks

  U.S. commercial banks earned a record $4 billion from cash instruments and derivatives activities in the first quarter of 2001, an increase of $1.2 billion over the fourth quarter of 2000. The notional amount of derivatives in insured commercial bank portfolios increased by $3.4 trillion in the first quarter, to $43.9 trillion. OCC:NR 2001-54 6/19/01

• OCC Releases CRA Evaluations for 18 National Banks

  The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of May 15 through June 14. 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 2001-55 6/19/01

• FDIC Circulates Fictitious Regulatory Agency Issuances

  The OCC has asked the FDIC to circulate information to FDIC-supervised institutions about fictitious documents that contain
  proposals suggesting that individuals can claim certain international payments reportedly being held by the OCC. FDIC:FIL-52-2001 6/14/01

• Donna Tanoue Announces her Resignation as Chairman of the FDIC

  Donna Tanoue announced that she has submitted her resignation as Chairman of the FDIC, effective July 11, 2001.FDIC:PR-45-2001, OTS 01-38 6/13/01

• OCC Encourages National Banks to Work with Customers Affected by Floods in Houston Area

  The OCC has outlined measures to assist national banks and their customers affected by the floods in the Houston area.
  The OCC recognizes that the effects of natural disasters on individuals and businesses are often temporary, and that prudent efforts to adjust or alter terms on existing loans in areas affected by the disasters and related problems should not be subject to bank examiner criticism. OCC:NR 2001- 53 6/12/01

• FRB Announces New Appointments

  Appointments of Donald Kohn as Advisor to the Board for Monetary Policy in the Office of Board Members, Vincent Reinhart as Director of the Division of Monetary Affairs, and Brian Madigan as Deputy Director of the Division of Monetary Affairs, all
  effective July 2, 2001. FRB Press Release 6/12/01

• NACHA Approves E-Sign For ACH Debits

  The Electronic Payments Association has approved an E-Sign provision for the NACHA Operating Rules that govern the Automated Clearing House Network. Under the new rule, any electronic signature that complies with the Electronic Signatures in Global and National Commerce Act will be deemed to comply with NACHA's requirements for "similarly authenticating" a consumer ACH debit authorization. NACHA News Release 6/12/01

• OTS Requests Comment on Study of Banking Regulations Regarding the Online Delivery of Financial Services

  Pursuant to section 729 of the Gramm-Leach-Bliley Act (GLBA), OTS and the other federal banking agencies are studying their
  regulations on the delivery of financial services. The purpose of the study is to report findings and conclusions to Congress, together with recommendations for appropriate legislative or regulatory action to adapt existing requirements to online banking and lending. 64FR31186 (text), 64FR31186 (pdf) 6/11/01

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

  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:NR 2001-52 Final Rule 6/11/01

• OTS Reports Highest Quarterly Earnings Since March 2000; 1-4 Family Mortgage Originations Near Record Level

  Earnings for the nation’s thrift industry jumped 12 percent in the first quarter of 2001 to $2.16 billion, the OTS reported. In its First Quarter 2001 Thrift Industry Data Report, OTS said that earnings were the highest since the first quarter of 2000 when they stood at $2.23 billion. OTS 01-37 6/8/01

• FDIC Reports Commercial Banks Report Record Quarterly Earnings

  Commercial banking industry profits rebounded in the first quarter of 2001 to a record $19.9 billion, up from $17.7 billion in the fourth quarter of 2000, the Federal Deposit Insurance Corporation announced. FDIC:PR-44-2001 6/8/01

• FDIC Spotlights OFAC Change

  FDIC has issued its FIL-51-2001 to notify nonmember banks of the May 16, 2001 changes to the OFAC list. FDIC:FIL-51-2001 6/7/01

• FinCEN Issues Bulletin on Suspicious Activity Related to Phone Card Businesses

  A review of SARs filed with the Treasury Department's Financial Crimes Enforcement Network identified over 160 reports indicating suspicious financial activity related to businesses involved in phone card sales. SAR Bulletin 6/7/01

• OTS Announces 48 CRA Exams Scheduled for 3rd Quarter 2001

  The OTS announced that 48 savings associations are scheduled for Community Reinvestment Act examinations during the third quarter of 2001. OTS 01-36 6/6/01

• OCC Issues Third Quarter 2001 CRA Examination Schedule

  The OCC today released its schedule of Community Reinvestment Act examinations to be conducted in the third quarter of 2001. OCC:NR 2001- 51 6/6/01

• FDIC Issues June 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 March 2001. FDIC:PR-43-2001 6/6/01

• Disclosing Account Numbers

  Regulators issue a Privacy rule: Interagency letter, concerning sharing of account numbers for use in marketing. 6/5/01

• OFAC Changes

  Weeks with no activity, then four changes to the OFAC list in under three weeks. We show you where to find the complete list of changes in Top Stories, including the changes on May 16, 23, 31 and June 1. You can always get the information for the last change at http://www.treas.gov/ofac/bulletin.txt. To get a list of updates for the entire click here: http://www.treas.gov/ofac/t11edit.html 6/5/01

• FDIC Publishes Bank Technology Bulletin

  The FDIC Bank Technology Bulletin introduces three short documents containing practical ideas for banks to consider when they engage in technology outsourcing. FDIC:FIL-50-2001 6/5/01

• Governor Edward W. Kelley, Jr., announces intention to resign from the Board of Governors

  The FRB released a statement from Governor Edward W. Kelley, Jr., announcing his plans to resign from the Board after at least one of the current vacancies is filled. Kelley said he will submit a formal letter of resignation to the President when an additional Governor has been nominated and confirmed, and is at work at the Board. FRB Press Release 6/5/01

• GE Bank Subsidiary Granted Federal Thrift Charter

  GE Capital Consumer Card Co., Mason, Ohio, received approval from the OTS May 31 to switch from a state bank charter to a federal savings bank charter. Upon adopting the new charter, the savings bank will change its name to GE Financial Corp. OTS 01-35 6/4/01

• OCC Publishes Amended Year 2001 Fee Schedule

  This Bulletin supersedes material contained in Bulletin OCC 2000-30 concerning semiannual assessments for independent credit card banks and the assessment surcharge for problem banks. Fees OCC:2001-27
  6/4/01

• Former FDIC Employee Sentenced in Identity Fraud Scheme

  FDIC Inspector General Gaston L. Gianni, Jr., announced that former FDIC employee Theresa A. Hill of Seat Pleasant, MD, was sentenced on May 29, 2001, to five years of probation, including six months of home confinement, in connection with an identity fraud scheme. FDIC:PR-41-2001 6/4/01

• Former Illinois Bank President Indicted

  FDIC Inspector General Gaston L. Gianni, Jr., announced that Clark K. Bush, former president of the Murphy-Wall State Bank in Pinckneyville, Illinois, has been indicted on eight criminal charges relating to alleged misconduct while serving as the bank's president. FDIC:PR-42-2001 6/4/01

• FDIC Issues Third 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 third quarter of 2001. FDIC:PR-39-2001 6/4/01

• The Federal Reserve Board has just issued guidance for examiners to follow in examining banks for compliance with the guidelines for safeguarding customer information security.

  The new guidance, which includes an Examination Questionnaire, should give bankers insight into what the examiners will focus on. FRB:SR 01-15 6/1/01

• The OFAC list was updated today to include the names of twelve new Specially Designated Nationals and Blocked Persons. OFAC 6/1/01

• Risk-Based Examination Program May Require Call Reports For All Credit Unions

  NCUA Acting Chairman Dennis Dollar told a group of Pennsylvania and New Jersey credit union leaders today that a proposed flexible examination schedule which seeks to extend the exam cycle from 12 to 18 months for certain credit unions with strong CAMEL ratings and make NCUA examinations more risk-focused will carry “great benefits to both credit unions and the NCUA while maintaining the highest standards of safety and soundness. NCUA Press Release 6/1/01

• OCC Issues Final Rule to Assessment Rule

  The OCC is changing the way they assess "independent credit card banks." They are also raising the surcharge for all institutions with composite ratings of 3, 4, or 5 under the CAMEL Rating. 66FR29889 (text) 66FR29889 (pdf) 6/1/01

• FRB Requests Comment on Proposed Changes to Policy on Payments System Risk

  The FRB is requesting comment on a proposed interim policy statement and a package of short- and long-term proposals pertaining to its Payments System Risk (PSR) policy. In addition, the Board is rescinding the interaffiliate transfer policy. FRB Press Release 5/31/01

• OCC Bulletin Focuses on Privacy Exam Procedures

  OCC has issued its OCC Bulletin 2001-26 to advise national banks of the privacy exam procedures recently adopted by the federal banking agencies. OCC 2001-26 5/31/01

• FDIC Issues Alert on Missing/Stolen Official Checks

  The FDIC has been informed by the IndyMac Bank, FSB, Pasadena, California, that 100 of the bank's official checks are missing and presumed stolen from a shipment from the check printer. The missing official checks are numbered 256064500 through and including 256064599. FDIC: FIL-49-2001 5/31/01

• FDIC Issues Alert on Missing Cashier's Checks

  The FDIC has been informed by the Banco Tejano, Branch of Texline State Bank, Houston, Texas, that 100 of the bank's cashier's checks are missing. The missing checks are numbered 1801 through and including 1900. FDIC:FIL-48-2001 5/31/01

• FDIC Makes Public March Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in April. No administrative hearings are scheduled for June. FDIC:PR-39-2001 5/31/01

• OFAC Updates Listing of Specially Designated Narcotics Traffickers

  As earlier reported, a new Presidential order affecting the OFAC list was released on May 23, 2001, but it does not add new SDNs to the list or new countries. It is instead directed at prohibiting the direct or indirect importation into the United States of all rough diamonds from Liberia. 66FR29229 (text) 66FR29229 (pdf) 5/30/01

• Federal Reserve Board announced that it is seeking nominations for appointments to its Consumer Advisory Council

  The Council advises the FRB on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters on which the Board seeks advice. The group meets in Washington, D.C., three times a year. FRB Press Release 5/30/01

• Consumer Advisory Council Announces Meeting Date

  The FRB announced that the Consumer Advisory Council will hold its next meeting on Thursday, June 28. FRB Press Release 5/30/01

• FDIC Issues Alerts on Entities That May Be Conducting Banking Operations in the United States Without Authorization
  

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published a "Monthly Warning Advisory", which contains the name of an entity recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-47-2001 5/30/01

• FRB Issues Final Rule to Decrease the Basic Discount Rate

  The FRB amended its Regulation A on 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 FRB acted on requests submitted by the Boards of Directors of the
  twelve Federal Reserve Banks. 66FR29009 (text) 66FR29009 (pdf) 5/29/01

• Don't Sweat 5/23 OFAC Change

  A new Presidential order affecting the OFAC list was released on May 23, 2001, but it does not add new SDNs to the list or new countries. It is instead directed at prohibiting the direct or indirect importation into the United States of all rough diamonds from Liberia.OFAC Change 5/24/01

• OTS Announces 12 April CRA Ratings

  The OTS announced savings associations' Community Reinvestment Act performance evaluation ratings that became available in April 2001. OTS 01-34 5/23/01

• Comptroller Hawke Tells Bankers that Regulators Must Respond In Measured and Predictable Way to Credit Problems

  Comptroller of the Currency John D. Hawke, Jr. said that the OCC learned from the experience of the late 1980s and early 1990s how important it is to maintain a supervisory approach that is both carefully measured and predictable. OCC:NR 2001-50 , Speech 5/22/01

• Julie L. Williams Speaks Before the Consumer Bankers Association

  Read her speech on CRA. OCC:NR 2001-49 5/22/01

• Study of regulations; request for comment

  Pursuant to section 729 of the Gramm-Leach-Bliley Act, the FRB is conducting a study and preparing a report about its banking regulations with respect to the online delivery of financial services. 66FR27912 (text) 66FR27912 (pdf) 5/21/01

• FDIC Publishes Semiannual Agenda of Regulations

  The FDIC has published its semiannual agenda of regulations in the Federal Register to inform the public of the Corporation's regulatory actions and encourage participation in the rulemaking process. FDIC:PR-38-2001 5/18/01

• OCC Releases CRA Evaluations for National Banks

  The OCC released a list of Community Reinvestment Act performance evaluations that became public during the period of April 15 through May 14. OCC:NR 2001- 48 5/18/01

• OCC Announces Enforcement Actions and Terminations

  The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 2 terminations of existing enforcement actions. OCC:NR 2001- 47 5/18/01

• FRB Requests Comment on how Regulations May Be Adapted to Online Banking and Lending

  The FRB is currently reviewing pertinent regulations to assess their suitability for transactions that
  are conducted through the Internet. FRB Press Release 5/18/01

• Privacy Exam Procedures

  The new exam procedures for consumer financial privacy have been adopted by the federal bank regulatory agencies through the FFIEC. As anticipated, the exam procedures are tailored to institutions' information-sharing practices. The procedures describe how institutions are to be examined for compliance with the privacy regulation. They also include an examination checklist for use in verifying compliance. (Scroll down to page 11 of the pdf document to reach the Exam Objectives.) 5/17/01

• OFAC Updates Listing of Specially Designated Narcotics Traffickers

  On May 16, 2001, the Office of Foreign Assets Control issued an update to its SDN list and updated its brochure on Terrorism to incorporate new entries. The new entries were added to the list of Specially Designated Nationals after the Secretary of State published the designation of the REAL IRA.OFAC 5/17/01

• Fed Lowers Interest Rate

  The FOMC at its meeting decided to lower its target for the federal funds rate by 50 basis points to 4 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 3-1/2 percent. FRB Press Release 5/16/01

• FDIC Issues Alert on Missing/Stolen Cashier's Checks

  The FDIC has been informed by the Bank of Prescott, Prescott, Arkansas, that packages containing 700 of the bank's cashier's checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-45-2001 5/16/01

• OFAC Updates List of Specially Designated Nationals and Blocked Persons

  On April 24, 2001, the Department of the Treasury's OFAC amended its listing of specially designated nationals and blocked persons to include the names of additional Specially Designated Narcotics Traffickers. FDIC:FIL-44-2001 5/16/01

• FDIC Issues Alert Fictitious Invoices

  The FDIC has learned that a number of financial institutions nationwide are receiving fictitious invoices from International Distributors LTD, P.O. Box 3841-1000, San Jose, Costa Rica, for 12 dozen "Ribbon Black NCR encoding MICR-80." FDIC:FIL-43-2001 5/16/01

• FDIC Issues Alert on Counterfeit Checks

  The FBI Baltimore, Maryland, office has asked the FDIC to alert all FDIC-supervised banks about the circulation of counterfeit checks drawn on the National Cancer Institute's account at the National Institutes of Health Federal Credit Union in Bethesda, Maryland. In December 2000 and January 2001, at least seven counterfeit checks were fraudulently negotiated. FDIC:FIL-42-2001 5/16/01

• FDIC Issues Alert on Stolen Western Union Money Orders

  The FDIC has learned that a substantial number of Western Union Money Orders were stolen during a robbery. Many of the stolen items have been deposited to bank accounts in several states. FDIC:FIL-41-2001 5/16/01

• FRB Announces Availability of Identity Theft: Protect Yourself Video

  The 15-minute video explains how easily someone can obtain your personal financial information and unlawfully use that information to obtain credit or other financial information under your name. Included in the video are interviews with identity theft victims, law enforcement officers and industry representatives. FRB Press Release 5/15/01

• OCC Updates Large Bank Supervision Guidance

  The OCC issued a revised version of the Large Bank Supervision booklet, updating the guidance and procedures used in
  supervising large and complex mid-sized national banks. OCC:NR 2001- 46 5/15/01

• FRB Issues Guidance on Securities Activities of State Member Banks

  This guidance addresses issues and questions that have been raised by examiners and other
  supervisory personnel regarding this change to the permissible securities activities of state member banks. FRB:SR 01-13
  5/15/01

• Electronic Delivery of Consumer Disclosures

  As earlier report in the Federal Register, the FRB published interim final rules establishing uniform standards for the electronic delivery of federally mandated disclosures under five consumer protection regulations. Reg B, Reg E, Reg M, Reg Z, Reg DD
  5/14/01

• Agencies Remind Bankers of Risks Associated with Reliance on Brokered and Rate-Sensitive Deposits

  The federal bank and thrift regulatory agencies issued an advisory on the risks of brokered and other rate-sensitive deposits. The agencies warn that excessive reliance on these types of funding products without proper risk management safeguards has the potential to weaken an institution's financial condition. OTS 01-33, FDIC:PR-37-2001 OCC:NR 2001-44, FRB Press Release 5/14/01

• The FRB is proposing a new rule to implement comprehensively sections 23A and 23B of the Federal Reserve Act.

  The proposed rule would combine statutory restrictions on transactions between a bank and its affiliates with numerous existing and proposed Board interpretations and exemptions in an effort to simplify compliance with sections 23A and 23B. 66FR24185 (text) 66FR24185 (pdf) 66FR33649 (correction)5/11/01

• FRB Issues Final Rule on Applicability of Section 23A of the Federal Reserve Act to the
  Purchase of Securities From Certain Affiliates

  The FRB is adopting an interpretation that would expand the types of asset purchases that are eligible for the exemption in section 23A(d)(6), which exempts the purchase from an affiliate of an asset that has a readily identifiable and publicly available market quotation. 66FR24219 (text) 66FR24219 (pdf) 5/11/01

• FRB Issues Final Rule on Loans and Extensions of Credit Made by a Member Bank to a Third Party

  The FRB is adopting an interpretation and exemptions from section 23A for certain loans made by an insured depository institution to customers who use the loan proceeds to purchase a security or other asset through an affiliate of the depository institution acting exclusively as a broker or riskless principal in the transaction. 66FR24226 (text) 66FR24226 (pdf) 5/11/01

• FRB Adopts Interim Rule to Address the Application of Sections 23A and 23B

  The rules require institutions to adopt policies and procedures reasonably designed to monitor, manage, and control credit exposures arising out of the transactions and clarify that the transactions are subject to section 23B. 66FR24230 (text) 66FR24230 (pdf) 5/11/01

• OCC Publishes the FFIEC Availability of "A Guide to CRA Data Collection and Reporting" available on the Internet

  The FFIEC agencies developed the guide as a resource for financial institutions required to report Community Reinvestment Act (CRA) data. CRA data reports are due annually on March 1. OCC 2001-25 5/11/01

• FDIC Issues a Guide to Federal Microenterprise Programs

  The publication, Crossing the Bridge to Self-Employment: A Federal Microenterprise Resource Guide, describes various microenterprise programs available through the federal government, and how financial institutions, practitioners and others can access these resources. FDIC:FIL-38-2001 5/10/01

• FDIC Issues Guidance On Identity Theft And Pretext Calling

  The FDIC issued guidance on measures to prevent identity theft and pretext calling. The guidance reminds financial institutions how to report such activities to regulators using Suspicious Activity Reports (SARs), suggests educating consumers on identity theft and pretext calling, and summarizes relevant federal laws.
  FDIC:PR-36-2001 and FDIC:FIL-39-2001 5/10/01

• FDIC Report Risky Underwriting Practices Rise at Banks but General Underwriting Risks Show a Slight Decline

  FDIC examiners have reported an increase in the occurrence of risky underwriting practices by banks in both construction and consumer lending but found that the percentage of banks in the high-risk categories for general underwriting practices declined slightly, according to the agency's latest Report on Underwriting Practices. FDIC:PR-35-2001 5/10/01

• FDIC Reports First 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 $451 million for the first quarter, compared to $325 million for the same period last year. FDIC:PR-34-2001 5/9/01

• OTS is proposing to amend its regulation on conversions from stock form depository institutions
  to federal stock savings associations

  This proposed rule would clarify that the resulting federal stock savings association in such transactions succeeds to all the rights, property, and obligations of the converting institution. This amendment merely codifies OTS's interpretation of its existing regulation. 66FR23198 (txt) 66FR23198 (pdf) 5/8/01

• OTS is amending its regulation on conversions from stock from depository institutions to federal stock savings associations

  This direct final rule clarifies that the resulting federal stock savings association in such transactions succeeds to all the rights, property, and obligations of the converting institution. This amendment merely codifies OTS's interpretation of its existing regulation. 66FR23153 (txt) 66FR23153 (pdf) 5/8/01

• OCC Issues Final Rule to amend its assessment regulation

  The OCC is amending its assessment regulation to clarify that the OCC has authority to charge a national bank when the OCC conducts a special examination of a third party that provides services to the bank. 66FR23151 (txt) 66FR23151 (pdf) 5/8/01

• FDIC Issues May 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 February 2001. FDIC:PR-33-2001 5/8/01

• OTS Advises Thrifts on Measures to Reduce Incidents of Identity Theft and Pretext Calling

  The OTS advised thrifts to take steps to prevent the unauthorized disclosure of customer financial information. The agency also called on the financial institutions it supervises to detect and deter fraudulent access to such information. OTS 01-32 5/8/01

• FDIC Issues Alert on Fictitious Cashier's Checks

  The FDIC has learned that fictitious cashier's checks drawn on "Ferndale Trust & Loan" are in circulation. The address shown on the checks is 22750 Woodward Avenue, Ferndale, MI 48226. The Michigan Division of Financial Institutions has advised that Ferndale Trust & Loan does not exist. FDIC:FIL-37-2001 5/7/01

• OCC Issues Proposed Rule on Debt Cancellation Contracts and Debt Suspension Agreements

  As earlier reported in the Federal Register, the OCC is requesting comment on a proposed rule that would establish the standards that apply to a national bank's provision of DCCs and DSAs, enhance consumer protections for customers who buy DCCs or DSAs from banks, and ensure that national banks providing DCCs or DSAs do so on a safe and sound basis. OCC 2001-24 5/7/01

• FDIC Insurance Big Factor in Investment Decisions, Gallup Survey Shows

  More than half of the people who make household financial decisions took federal deposit insurance into account when considering recent investments, a survey conducted by The Gallup Organization reveals. FDIC:PR-31-2001 5/4/01

• OTS Issued One Enforcement Order In March

  The OTS reported that it issued a prompt corrective action enforcement order March 23 to Life Bank, San Bernadino, Calif. OTS 01-31 5/4/01

• Basel Committee Report Outlines Risk Management Principles for Electronic Banking

  The Electronic Banking Group of the Basel Committee on Banking Supervision, set forth fourteen risk management principles on electronic banking for financial institutions in a report. OCC:NR 2001- 42 5/4/01

• FRB Requests Comment on a Proposed New Reg W to Implement Sections 23A and 23B

  Regulation W would unify in one document various Board and staff interpretations issued over the years as well as several new interpretations of the statute. It also would provide several additional exemptions from the statute. The purpose of sections 23A and 23B and Regulation W is to limit a bank's risk of loss in transactions with affiliates and limit a bank's ability to transfer to its affiliates the benefits arising from its access to the federal safety net. FRB Press Release FRB Board Press Release 5/4/01

• Comptroller Closes Malta National Bank

  The FDIC reports that the OCC closed The Malta National Bank, Malta, Ohio, and appointed the FDIC as receiver. The FDIC, as receiver, entered into an agreement with North Valley Bank, Zanesville, Ohio, to assume all the deposits of the failed bank.
  OCC: NR 2001-43 FDIC: PR-32-2001 5/4/01

• Missing Cashier's Checks

  The FDIC has been informed by the Hudson City Savings Bank, Paramus, New Jersey, that 200 of the bank's cashier's checks are missing and presumed stolen from a shipment from the check printer. FDIC:FIL-36-2001 5/3/01

• OCC and FRB Issue Guidance on How to Protect Against ID Theft

  The OCC has issued an advisory letter and the Federal Reserve Board has issued a Supervisory Letter giving institutions under their jurisdiction guidance on how to protect customer information against identity theft and pretext calling. 5/1/01

The NCUA has issued an order prohibiting a former employee of a Louisiana federal credit union from participating in the affairs of any federally insured financial institution. The individual had entered a pretrial intervention program relating to charges of felony theft in connection with her employment at the credit union.

The NCUA has issued an order prohibiting a former employee of a Louisiana federal credit union from participating in the affairs of any federally insured financial institution. The individual had entered a pretrial intervention program relating to charges of felony theft in connection with her employment at the credit union.

• OTS Issues Proposed Rule to Amend Assessment Rule

  The OTS is proposing to amend its assessments rule to more accurately reflect the increased costs of supervising 3-, 4-, and 5-rated institutions. 66FR21288 (4/30/01)

• OTS Reports Interest Rate Risk Reduction For Thrift Industry in 4th Quarter

  The OTS reported that only 3.5 percent of thrifts were at high risk from a hypothetical 200
  basis point fluctuation in interest rates at the end of the fourth quarter. That’s a 42 percent reduction from six percent at the end of the third quarter and eight percent last June. OTS 01-30 (4/30/01)

• OTS Approves Charter Switch From Credit Union to Thrift

  The OTS announced that it approved the charter application of AGE Federal Credit Union in Albany, Ga., to become HeritageBank of the South, a federal thrift. OTS 01-29 (4/30/01)

• NCUA Issues Proposed rule that relaxes certain provisions in NCUA's regulations

  This proposed rule relaxes certain provisions in NCUA's regulations for advertising and posting notice of nondiscrimination in
  real estate-related lending. Currently, the regulations provide that a federal credit union (FCU) must include notice of nondiscrimination through use of a particular logotype and specified language. The proposed rule will provide an FCU with more flexibility in how it gives notice when advertising. 66FR20945 (text) 66FR20945 (pdf) (4/30/01)

• NCUA Issues Final Rule to Revise its Regulations pertaining to the Community Development Revolving Loan Program For Credit Unions

  The NCUA is revising its regulations pertaining to the Community Development Revolving Loan Program For Credit Unions (CDRLP)
  to make more flexible the manner in which NCUA may deliver technical assistance to participating credit unions. This revision reflects the broad authority granted to NCUA by the Federal Credit Union Act (Act) in this context. 66FR20901 (text) 66FR20901 (pdf) (4/30/01)

• FDIC Makes Public March Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in March. No administrative hearings are scheduled for May. FDIC:PR-30-2001 (4/27/01)

• OFAC Updates Listing of Specially Designated Narcotics Traffickers

  OFAC (4/25/01)

• OCC Advises Banks to Ensure Information Systems Security is Maintained

  The OCC issued an alert outlining steps that national banks should take to protect and maintain network security. OCC:NR 2001-40 (4/25/01)

• OCC, Julie L. Williams Speaks at ABA Conference on Account Aggregation Services

  Technology innovations, such as aggregation, make possible today the creation, transfer and manipulation of information in ways we didn't even dream of 10 years ago. Because the financial industry is fundamentally information-based and driven, advances in technology have had and will continue to have a profound affect on financial services and particularly on the evolution of the banking business. Aggregation services are a perfect illustration of both the promise and the new challenges that technology present for the banking industry. OCC:NR 2001-39 (4/24/01)

• Regflex Approach Begins Long-Term Process for NCUA Rule and Regulation Evaluation

  The innovative risk-based approach for the RegFlex proposed rule is the first major step in an expected long-term strategic process for NCUA to evaluate current and future rules and regulations, NCUA Acting Chairman Dennis Dollar said. NCUA Press Release (4/23/01)

• NCUA donates computers nationwide and joins the Adopt-A-School Program in Alexandria

  The NCUA donated over 1,000 computers to nonprofit organizations in recent years, and the Alexandria office has officially
  adopted a local elementary school where agency volunteers tutor students. NCUA Press Release (4/23/01)

• FDIC Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  As earlier report, in the Federal Register, this proposal amends the regulatory prohibition against branches being used as deposit production offices to include any bank or branch of a bank controlled by an out-of-State bank holding company, including a bank consisting only of a main office. FDIC:FIL-34-2001 (4/23/01)

• FDIC Publishes the FRB's Final Rule Revising Reg E Commentary

  The FRB has adopted a final rule revising the Official Staff Commentary to Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The final rule took effect on March 15, 2001; however, the mandatory compliance date is January 1, 2002. FDIC:FIL-33-2001 (4/23/01)

• FDIC Issues Alert on Possible Attempted Fraud By Convicted Fugitive

  The U.S. Marshals Service has asked the FDIC to alert all U.S. banks about the current activities of fugitive John Ruffo, who was convicted in 1998 for his role in defrauding several banks of over $350 million and may now be attempting another fraud scheme. FIL-32-2001 (4/20/01)

• FRB Issues Interagency Guidance on Leveraged Financing

  The FRB, along with the other federal banking agencies, issued guidance concerning sound risk management practices for institutions engaged in leveraged financing. FRB:SR 01-9 (4/20/01)

• FDIC Proposes Rule on Applicants for Deposit Insurance

  The FDIC is proposing to codify into a regulation a requirement previously interpreted in a General Counsel Opinion that an applicant for deposit insurance must be "engaged in the business of
  receiving deposits other than trust funds". The requirement was first
  interpreted in General Counsel Opinion No. 12, which was published by
  the FDIC in March of 2000. 66FR20102 (text) 66FR20102 (pdf) (4/19/01)

• Donna A. Tanoue elected Chairman of the FFIEC

  Donna A. Tanoue, Chairman of the FDIC, was elected Chairman of the FFIEC for a two-year term beginning April 1. Chairman Tanoue succeeds Dr. Laurence H. Meyer, member of the Board of Governors of the Federal Reserve System. FFIEC Press Release (4/19/01)

• OCC Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  As earlier reported in the Federal Register, this proposal amends the regulatory prohibition against branches being used as deposit production offices to include any bank or branch of a bank controlled by an out-of-State bank holding company, including a bank consisting only of a main office. OCC 2001-22 (4/19/01)

• OCC Announces 4 New Enforcement Actions

  The OCC announced 4 new enforcement actions taken against national banks and individuals currently and
  formerly affiliated with national banks. OCC:NR 2001- 38 (4/19/01)

• FRB Cuts Interest Rate by 50 Basis Points

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 4-1/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 4 percent. FRB Press Release (4/19/01)

• OCC Issues Proposed Rule to Address Debt Cancellation Contracts and Debt Suspension Agreements

  The purposes of the customer protections set forth in the proposed rule are to facilitate customers' informed choice about whether to purchase DCCs and DSAs, based on an understanding of the costs, benefits, and limitations of the products and to discourage inappropriate or abusive sales practices. 66FR19901 (text) 66FR19901 (pdf) (4/18/01)

• OCC Publishes the FRB's Revisions to Reg E

  As earlier reported in the Federal Register, the FRB published a final rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The rule took effect on March 9, 2001. However, compliance with the amendments is not mandatory until October 1, 2001. OCC 2001-21 (4/18/01)

• FRB Issues Final Rule Regarding Access to Personal Information Under the Privacy Act

  In accordance with the Privacy Act, the FRB is amending its Rules Regarding Access to Personal Information under the Privacy Act regarding monitoring of individuals who may pose a possible threat to the safety of Board members. 66FR19717(text), 66FR19717 (pdf) Notice    Correction(4/17/01)

• FDIC Issues Alert on Stolen Credit Cards

  The FDIC has been informed by the USAA Federal Savings Bank, San Antonio, Texas, that a number of the bank's credit cards have been stolen from the mail in the upper New England area. FDIC:FIL-30-2001 (4/17/01)

• OCC Releases CRA Evaluations for 10 National Banks

  The OCC released a list of Community Reinvestment Act performance evaluations that became public during the period of March 15 through April 14. OCC:NR 2001-37 (4/17/01)

• FRB Issues Final Rule to Adopt Technical Amendments to the Financial Holding Company Provision of Reg Y

  The restored provisions were adopted in December 2000, and inadvertently deleted from the Code of Federal Regulations. 66FR19081(text), 66FR19081 (pdf) (4/16/01)

• OCC Publishes Update on Status of Proposed FCRA Rule

  OCC has published its OCC-2001-20 to describe the status of the Notice of Proposed Rulemaking previously published by the banking agencies on October 20, 2000 (FCRA rule), to implement the
  provisions of the Fair Credit Reporting Act (FCRA). OCC 2001-20 (4/16/01)

• OCC Issues Proposed Rule to Amend the Formula it Uses to Assess Independent Credit Card Banks

  As earlier reported in the Federal Register, the rule as proposed would amend the formula the OCC uses to assess
  independent credit card banks. OCC 2001-19 (4/13/01)

• OTS Announces 13 March CRA Ratings

  The OTS announced savings associations' CRA performance evaluation ratings that became available in March 2001.
  OTS 01-28 (4/12/01)

• FRB Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  As earlier reported in the Federal Register, the FRB is requesting public comment on a proposal that would amend Regulation H to expand the prohibition against deposit production offices to include any branch of a bank controlled by an out-of-state bank holding company. FRB Press Release (4/12/01)

• FDIC Reports Year-End 2000 Financial Results For Bank And Thrift Insurance Funds

  The FDIC announced that the Bank Insurance Fund reported comprehensive income (net income plus current period unrealized gains/losses on available-for-sale securities) of $1.6 billion for the 12 months ending December 31, 2000, compared to a
  loss of $198 million for the same period last year. Consequently, the fund balance increased to $31.0 billion at December 31, 2000. FDIC-PR-29-2001 (4/11/01)

• Agencies Issue Risk Management Practices for Leveraged Financing

  The federal bank regulatory agencies today issued guidance concerning sound risk management practices for institutions engaged in leveraged financing. FRB Press Release, OCC: NR 2001-36, OTS 01-27 FDIC-PR-28-2001 (4/10/01)

• NCUA Acting Chairman Says Risk-Based Regulatory Approach Can Keep Agency Budget From Unnecessary Growth

  NCUA Acting Chairman Dennis Dollar told Minnesota credit union leaders that the RegFlex proposed rule could facilitate the NCUA’s
  development of a more efficient resource allocation plan, while protecting against unnecessary budget increases in future years.
  NCUA Press Release (4/10/01)

• OCC, FRB and FDIC Issues Proposed Rule to Amend the Deposit Production Offices Prohibition

  This proposal amends the regulatory prohibition against branches being used as deposit production offices to include any bank or branch of a bank controlled by an out-of-State bank holding company, including a bank consisting only of a main office.
  66FR18411 (4/9/01)

• Comptroller Hawke Urges New Look at Funding Bank Supervision

  Comptroller of the Currency John D. Hawke, Jr. said that the U.S. must find a new method of funding bank supervision -- one that
  strengthens both state and federal supervisory agencies and ensures that they have the resources they need to do their jobs.
  OCC: NR 2001-35 (4/9/01)

• Counterfeit Cashier's Checks

  The FDIC has learned that counterfeit cashier's checks drawn on the Exchange Bank, Santa Rosa, California, are in circulation. Circulation of the items seems to be widespread. FDIC:FIL-28-2001 (4/9/01)

• FRB Issues Final Rule Amending the Basic Discount Rate

  The FRB has amended its Regulation A on 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. 66FR18185 (4/6/01)

• NCUA Acting Chairman Dennis Dollar Seeks Options for Faith-Based Credit Unions to Provide Affordable Financial Services for Communities, Underserved Areas

  NCUA Acting Chairman Dennis Dollar announced that he is reviewing the options and opportunities to promote the enhancement of the charter and field of membership for the nation’s nearly 500 faith-based credit unions to serve their respective communities in providing affordable financial services especially in designated underserved areas. NCUA Press Release (4/6/01)

• Sale of Performing/Non-performing Loans

  The Dallas Field Operations Branch of the FDIC is offering to sell Loan Sale Packages located throughout the United States. (4/6/01)

• FRB Issues Guidance on Complex Wholesale Borrowings

  Over the past several years, commercial banks have become increasingly reliant on wholesale borrowings obtained
  from a number of financial intermediaries, including Federal Home Loan Banks, other commercial banks, and securities firms.
  These borrowings frequently have attractive features and pricing, and can, if properly assessed and prudently managed, enhance a
  bank's funding options and assist in controlling interest rate and liquidity risks. FRB Press Release (4/6/01)

• FDIC Issues Recommendations for Reform of Deposit Insurance

  FDIC Chairman Donna Tanoue released the agency's report on recommendations to reform the federal deposit insurance system, saying that the plan would enhance the safety and soundness of the banking industry and ensure that deposit insurance remains the anchor of public confidence in the banking system. FDIC: PR-27-2001 (4/6/01)

• FDIC Issues April List of Banks Examined for CRA Compliance

  The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the CRA. The list covers evaluation ratings that the FDIC assigned to institutions in January 2001. FDIC:PR-26-2001 (4/6/01)

• FFIEC Announces Risk Management Planning Seminar for 2001

  Identifying and Managing Technology Risks, San Francisco, CA, October 11 - 12, 2001 FFIEC Press Release (4/5/01)

• OCC Issues Alert on Fraudulent Investment Programs

  The OCC urges all institutions to be wary of proposals to leverage investment portfolios through some type of secondary market activity. The programs are allegedly managed by or under the supervision of the Federal Reserve but this is not the case. The Federal Reserve does not support, issue or supervise any such programs. OCC:Alert 2001-3 (4/5/01)

• Comptroller Hawke Tells Congress that New Capital Proposal Would Permit Continued Investment in Small Business

  Comptroller of the Currency John D. Hawke, Jr. told a Congressional panel that a revised capital proposal for merchant
  banking investment activities would permit continued investment in small business while preserving bank safety and soundness.
  OCC:NR 2001-34, Statement, Testimony (4/5/01)

• FRB is Adopting an Interim Final Rule amending Reg DD to Establish Uniform Standards for Electronic Delivery of Disclosures

  The rule provides guidance on the timing and delivery of electronic disclosures to ensure that applicants have adequate opportunity to access and retain required information. 66FR17795 (4/4/01)

• FRB is Adopting an Interim Final Rule amending Reg B to Establish Uniform Standards for Electronic Delivery of Disclosures

  The rule provides guidance on the timing and delivery of electronic disclosures to ensure that applicants have adequate opportunity to access and retain required information. 66FR17779 (4/4/01)

• FRB is Adopting an Interim Final Rule amending Reg E to Establish Uniform Standards for Electronic Delivery of Disclosures

  The rule provides guidance on the timing and delivery of electronic disclosures to ensure consumers have adequate opportunity to access and retain information when shopping for electronic fund transfer services. 66FR17786 (4/4/01)

• OCC Issues Proposed Rule to Amend the Formula it Uses to Assess Independent Credit Card Banks

  A national bank is considered independent for purposes of this proposal if it engages primarily in credit card operations and is not affiliated with a full-service national bank. Under the revised assessment structure, all credit card banks would continue to be assessed based on balance sheet assets. Independent credit card banks would pay an additional assessment component based on the ``receivables attributable'' to credit card accounts owned by the bank. This additional assessment is intended to result in payment by these banks of a more appropriate share of the OCC's expenses than under the current book-asset assessment structure.
  66FR17821 (4/4/01)

• OTS Director Seidman Proposes Enhancing Thrift Charter, Questions Fairness Of Bank Supervision Charges

  OTS Director Ellen Seidman announced a series of legislative proposals designed to give thrifts the right to conduct some additional activities and take actions comparable to commercial banks. OTS 01-26 (4/4/01)

• Missing Cashier's Checks

  The FDIC has been informed by the Bank of Old Monroe, Old Monroe, Missouri, that a number of the bank's cashier's checks are missing and presumed stolen from a shipment from the check printer. FDIC: FIL-27-2001 (4/4/01)

• FDIC Issues Final Rule to Repeal Section 29A of the FDI Act

  As part of the Financial Regulatory Relief and Economic Efficiency Act of 2000, Congress repealed section 29A of the Federal
  Deposit Insurance Act (``FDI Act''). Section 29A imposed certain requirements on deposit brokers and authorized the FDIC to issue
  implementing regulations. 66FR17621 (4/3/01)

• PACA Director Bob Loftus to Retire

  The NCUA announted that Public & Congressional Affairs Director Robert E. Loftus plans to retire July 27, 2001. Mr. Loftus is the first director of NCUA’s Office of Public & Congressional Affairs, formed in 1985 when the offices of Public Affairs and Congressional Affairs were combined.
  NCUA Press Release (4/3/01)

• NCUA Chairman Meets with Australian Credit Union Leader; Discusses Regulations, Market Issues

  NCUA Chairman Dennis Dollar met with Phillip G. Elliott, chief executive officer of the National Credit Union Association,
  Inc., the second largest credit union trade association in the nation of Australia. Mr. Dollar and Mr. Elliott discussed credit union issues in both Australia and the United States, including the 1999 restructuring of Australia’s financial regulatory laws.
  NCUA Press Release (4/3/01)

• FDIC Mails First Quarter Call Report Information

  Reports of Condition and Income (Call Report) for First Quarter 2001 are due by April 30, 2001.
  FDIC:FIL-24-2001 (4/2/01)

• FDIC Makes Public February 2001 Enforcement Actions; No Administrative Hearings Scheduled

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in February 2001. FDIC:PR-25-2001 (4/2/01)

• OTS Issued Six Enforcement Orders in February

  The OTS reported that it issued six enforcement orders to five individuals, entities, or institutions during February 2001.
  OTS 01-25 (4/2/01)

• FRB Issues Interim Rule to Establish Uniform Standards for Electronic Delivery of Mandated Disclosures Under the Consumer Regs

  Under the rules, financial institutions, creditors, lessors, and others may deliver disclosures electronically if they obtain consumers' consent in accordance with the requirements of the Electronic Signatures in Global and National Commerce Act (the "E-Sign Act"), enacted in June 2000. Reg M Interim Rule, Reg Z Interim Rule, FRB Press Release (3/30/01)

• OCC Publishes the FFIEC Statement on Article 9 Revisions

  National banks and their legal counsel should consider carefully the changes in state law brought about by revised Article 9 in order to ensure the attachment and perfection of their existing and future security interests. OCC 2001-16 FFIEC Statement (3/29/01)

• Agencies Clarify Guidance on the Accounting and Reporting for Loans Held for Sale

  The federal financial institution regulatory agencies issued guidance to institutions and examiners about the appropriate accounting and reporting treatment for certain loans that are sold directly from the loan portfolio or transferred to a held-for-sale account. FRB Press Release, OCC 2001-15, OTS 01-24 FDIC: PR-24-2001 (3/28/01)

• Agencies Publish Proposed Regulation Implementing the Provisions of the Fair Credit Reporting Act

  As earlier reported by the agencies, they have published for comment proposed regulations implementing the provisions of the Fair Credit Reporting Act (FCRA) that permit institutions to communicate consumer information to their affiliates (affiliate information sharing) without incurring the obligations of consumer reporting agencies. 66FR16624 (3/27/01)

• FRB Issues Final Rule Amending Regulation E

  As earlier reported in the Federal Register, the FRB published a final rule amending Regulation E, which implements the Electronic Fund Transfer Act (EFTA). The rule took effect on March 9, 2001. However, compliance with the amendments is not mandatory until October 1, 2001. FDIC:FIL-25-2001 (3/26/01)

• Regulators Issue Supervisory Guidance to Enhance Puplic Disclosures

  A private sector working group recommended several specific practices that would enhance disclosure by large banking organizations. These include quarterly disclosure of some market risk information that is now disclosed annually and enhanced quarterly disclosures about credit concentrations and credit quality of portfolios. FRB Press Release OCC 2001-14 - Guidance (3/26/01)

• FRB Announces Procedures for Filing of Documents Required by the CRA Sunshine Requirements

  The new CRA Sunshine provisions require nongovernmental entities or persons (NGEPs) and insured depository institutions or affiliates that are parties to certain written agreements that are in fulfillment of the Community Reinvestment Act (CRA) to (1) make the agreement available to the public and the relevant bank or thrift supervisory agency, and (2) file an annual report about the agreement with the relevant supervisory agency. FRB Press Release (3/23/01)

• FRB Revised its Brochure: When Your Home Is on the Line: What You Should Know about Home Equity Lines of Credit.

  Regulation Z, which implements the Truth in Lending Act, requires creditors to provide the brochure, or a suitable substitute, to consumers when an application form is provided for a home equity line of credit. FRB Press Release Brochure (3/23/01)

• FDIC Report Evaluates Prospects for Commercial Credit Quality

  Continuing increases in problem commercial loans are focusing a spotlight on declining conditions in business lending, according to the FDIC. On September 30, 2000, commercial banks reported noncurrent commercial loans of 1.52 percent of total commercial loans, the highest level in the past six years. FDIC:PR-23-2001 (3/22/01)

• FOMC Lowers Federal Funds by 50 Basis Points

  The FOMC decided to lower its target for the federal funds rate by 50 basis points to 5 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 4-1/2 percent. FRB Press Release (3/21/01)

• NCUA Issues Interim Final Rule on Membership Manual

  The NCUA Board is amending its chartering and field of membership manual to make two changes to ease the burden on applicants for community charters, expansions or conversions. First, applicants need not submit documentation to establish a community area that is the same as one the NCUA has previously determined to be a well-defined local community, neighborhood or rural district. Second, the Board is deleting the category of common characteristics and background of residents from the examples of acceptable documentation because it has proven to generate documentation of limited relevance. 66FR15619 (3/20/01)

• Agencies Extend Effective Date on Bank Insurance Rules

  As earlier reported by each agency, the effective date of consumer protection rules for the sale of insurance products by depository institutions on their premises has been changed. The new effective date will be October 1, 2001, rather than the original effective date of April 1, 2001. 66FR15345 (pdf) (3/19/01)

• OCC Releases CRA Evaluations for 15 National Banks

  The OCC released a list of Community Reinvestment Act performance evaluations that became public during the period of February 15 through March 14. OCC:NR 2001-32 (3/19/01)

• OTS Issued Three Enforcement Orders In January

  The OTS reported that it issued three enforcement orders during January 2001, one instituting a civil money penalty and two terminating previously issued cease and desist orders. OTS 01-22 (3/19/01)

• FRB Publishes Final Rule Revising Reg E Commentary

  The Rule provides guidance regarding electronic check conversion transactions, computer-initiated bill payments, authorization of recurring debits from a customers accounts and telephone-initiated transfers. 66FR15187 (3/16/01)

• Director Seidman Announces Staff Paper That Finds Real Estate Lending Less Risky
  Than Capital Rules Suggest

  OTS Director Ellen Seidman announced the preliminary findings of an OTS economist’s working paper that concludes that the 1988 Basel Capital Accord risk weights do not accurately track the historical credit experience of U.S. loan portfolios and suggests that residential mortgage and other real estate secured loans may be relatively overburdened by the current standards. OTS 01-21 (3/16/01)

• NCUA Issues Proposed Rule on Regulatory Flexibility Program

  The NCUA Board is proposing a new rule that would permit credit unions with advanced levels of net worth and consistently strong
  supervisory examination ratings to be exempt, in whole or in part, from certain NCUA regulations that are not specifically required by statute. The NCUA Board is also proposing an amendment to the appraisal regulation to increase the dollar threshold from $100,000 to $250,000 for when an appraisal is required. 66FR15055 (3/16/01)

• OTS Would Simplify Certain Capital Requirements And Revise Liquidity Standards

  The OTS proposed a rule change to reduce certain capital burdens and separately issued an interim final rule that would conform to recent changes in the law by eliminating a four percent liquidity requirement and replacing it with a general requirement that thrift institutions maintain sufficient liquidity. OTS 01-20 (3/15/01)

• Agencies Will Allow Privacy Notices Under Existing Fair Credit Reporting Act

  Federal banking agencies announced that any final Fair Credit Reporting Act rule will not require depository institutions to
  revise Gramm Leach Bliley Act privacy notices prepared in reliance on existing FCRA law and delivered to consumers before next January.FDIC-PR-22-2001, FRB Press Release, OCC: NR 2001-30, OTS 01-19, FDIC-PR-22-2001 (3/15/01)

• FIL Released on February's InfoSec Guidelines

  Nearly a month and a half after the guidelines were published in the Federal Register, FDIC has released an FIL alerting institutions to the guidelines. FIL-22-2001 (3/15/01)

• OCC Announces 5 New Enforcement Actions

  The OCC announced 5 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC:NR 2001- 31 (3/15/01)

• Agencies Extend Effective Date on Bank Insurance Rules

  The federal banking regulatory agencies approved a joint rulemaking that extends the effective date of consumer protection rules for the sale of insurance products by depository institutions on their premises, or on their behalf. The new effective date will be October 1, 2001, rather than the original effective date of April 1, 2001. FDIC-PR-21-2001, FRB Press Release, OCC: NR 2001-29, OTS 01-18 (3/14/01)

• FRB Publishes Revisions to Reg E Commentary

  The revisions provide guidance on electronic check conversion transactions when a consumer authorizes the use of a check to capture information for initiating an electronic debit from the consumer’s account. FRB Press Release (3/14/01)

• President's Tax Cut Plan Count Benefit Credit Union's Liquidity

  NCUA Acting Chairman Dennis Dollar told state and federal regulators today that President Bush’s proposed tax cut plan provides credit unions with “an excellent opportunity to emphasize the value of savings and paying down debt while improving their liquidity position at the same time. NCUA Press Release (3/13/01)

• Uniform Bank Performance Report is Available

  The December 31, 2000 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. For the most part, the formats for the commercial banks and the FDIC-ISB are identical; however, the FDIC-ISB has its own unique UBPR peer groupings. FFIEC Press Release (3/12/01)

• Latest FDIC Survey Finds Real Estate Slowing

  The latest results of the FDIC's Survey of Real Estate Trends indicated that conditions generally remained favorable in the nation's real estate markets during the second half of 2000 but there was some deterioration, especially involving single-family homes and local retail properties. FDIC:PR-20-2001 (3/12/01)

• OTS Announces 14 February CRA Ratings

  The OTS announced savings associations' CRA performance evaluation ratings that became available in February 2001. OTS 01-14 (3/12/01)

• OCC Reports Trading Revenues Remain Consistent As Derivatives Volume Reaches Record Level

  U.S. commercial banks earned $2.7 billion from trading activities during the fourth quarter 2000, off slightly from the revenue earned a quarter earlier. Trading revenue is earned from cash instruments and off-balance sheet derivative instruments. OCC: NR 2001-28 Report (3/12/01)

• Regulators Publish Correction to Disclose and Reporting CRA Rule

  Regulators make correction to the previously published final rule, concerning the disclosure
  and reporting of certain agreements related to the CRA. 66FR14071 (3/9/01)

• Federally insured credit unions will receive $99.5 million

  The NCUA voted to waive an insurance premium for 2001 and pay a 3 percent dividend of $99.5 million to the nation’s 10,316 federally insured credit unions. The dividend returns the National Credit Union Share Insurance Fund (NCUSIF) to the Board approved 1.3 percent normal operating level for calendar year 2000. NCUA Press Release (3/9/01)

• FDIC Publishes Consumer News

  The latest edition of the FDIC’s quarterly newsletter for consumers features a "how-to" guide to
  understanding and using new rights to financial privacy. Other stories address such topics as what the FDIC’s insurance rules say if you manage deposits for a friend or relative.
  FDIC Consumer News (3/9/01)

• Comptroller Hawke Says Bankers and Regulators Better Prepared to
  Deal with Challenging Economy

  Comptroller of the Currency John D. Hawke, Jr. said that bankers and regulators both learned from the problems of the early 1990s and are far better prepared to deal with a challenging economic
  environment today as a result. OCC:NR 2001- 26 (3/9/01)

• Interagency Task Force Publishes Spanish-Language Consumer Brochure about Shopping for and Negotiating the Best Mortgage

  The federal Interagency Task Force on Fair Lending has published a Spanish-language version of its popular brochure for consumers, Looking for the Best Mortgage: Shop, Compare, Negotiate. FRB Press Release, OCC: NR 2001-27, FTC, OTS (3/9/01)

• CAC Schedules Next Meeting

  The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 22. FRB Press Release (3/9/01)

• FDIC Chairman Tanoe Gives Preview of Deposit Insurance Reform

  FDIC Chairman Donna Tanoue previewed the deposit insurance reform recommendations the agency plans to issue at the end of this month. FDIC:PR-19-2001 (3/8/01)

• FDIC Issues Statement on Appraisal Standards

  The Appraisal Standards Board (ASB) of The Appraisal Foundation recently released Appraisal Standards Statement No.10, "Assignments for Use by a Federally Insured Depository Institution in a Federally Related Transaction." The statement was issued in response to indications that some appraisers are not following Uniform Standards of Professional Appraisal Practice (USPAP) for federally related transactions. FDIC: FIL-20-2001 (3/8/01)

• FDIC Releases Preliminary Fourth Quarter and Year-End Earnings for Commercial Banks

  Annual profits of the commercial banking industry fell in the year 2000, snapping an eight-year streak of annual earnings records, the Federal Deposit Insurance Corporation reported. FDIC:PR-18-2001 (3/8/01)

• OTS Reports Near Record Thrift Earnings in 2000; Industry Mortgage Originations Top
  $200 Billion

  The nation’s thrift industry recorded net income of $8 billion in 2000, down only $200 million from
  the record set in 1999, the OTS reported. In its fourth quarter Thrift Industry Financial Condition Report, the OTS said that earnings were $1.91 billion during the fourth quarter, up from $1.84 billion in the third quarter, a 3.8 percent hike. OTS 01-16 (3/8/01)

• Nicholas Owens Joins NCUA's Public Affairs Team

  NCUA Chairman Dennis Dollar has selected Nicholas N. Owens as special assistant to the chairman for public affairs. NCUA Press Release (3/7/01)

• OTS Supports Oxley Information Sharing Initiative Targeted at Financial Services
  Industry Wrongdoers

  The OTS supported Financial Services Committee Chairman Michael Oxley’s (R-Ohio) initiative to have the major financial services regulators share information about people and entities in the financial services industry that have committed crimes or engaged in other pertinent wrongdoing.
  OTS 01-15 (3/7/01)

• Comptroller Hawke Outlines the Global Challenges of Internet Banking

  Comptroller of the Currency John D. Hawke, Jr. addressed the cross-border and international challenges of Internet banking for bankers and bank supervisors in a speech to the Institute of International
  Bankers. OCC:NR 2001- 23
  (3/7/01)

• Comptroller Hawke Outlines the Challenges of Reaching the Unbanked

  Comptroller of the Currency John D. Hawke, Jr. outlined the challenges of bringing banking services to the unbanked in a speech to the National Community Reinvestment Coalition. OCC: NR 2001-24 (3/7/01)

• FRB Issues Revisions to Reg E

  The revisions implement amendments to the act contained in the Gramm-Leach-Bliley Act that require the disclosure of certain fees associated with automated teller machine transactions. The amendments require ATM operators that impose a fee for providing electronic fund transfer services to post a notice in a prominent and conspicuous location on or at the ATM. 66FR13409 FDIC: FIL-25-2001 (3/6/01)

• SEC Issues Proposed Rule Regarding the Electronic Signatures in Global and National Commerce Act of 2000

  The SEC announces several upcoming rulemaking activities regarding recordkeeping requirements under the federal securities laws consistent with the Electronic Signatures in Global and National Commerce Act of 2000. The action delays the effective date of certain provisions in the Act that may affect certain recordkeeping requirements under the federal securities laws. SEC: 33-7955 (3/6/01)

• FDIC Issues March 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 December 2000. FDIC:PR-17-2001 (3/6/01)

• OCC Issued Proposed Capital Rule for Nonfinancial Equity Investments

  As earlier reported in the Federal Register, the OCC has issued a proposed rule on the regulatory capital treatment of nonfinancial equity investments. OCC 2001-13 (3/6/01)

• Roger W. Ferguson, Nominated to Full term on FRB Board

  Federal Reserve Board member Roger W. Ferguson, Jr. issued the following statement: "I am pleased that President Bush has announced his intention to nominate me to a full term on the Federal Reserve Board. My experience on the Board has been enormously gratifying. I'm delighted to have the opportunity to continue my work with Chairman Greenspan and our colleagues on the Board." FRB Press Release (3/6/01)

• Former FDIC Employee Pleads Guilty to Identity Fraud Scheme

  FDIC Inspector General Gaston L. Gianni, Jr., announced that former FDIC employee Theresa A. Hill of Seat Pleasant, MD, pled guilty on March 1 to conspiracy in connection with an identity fraud scheme. FDIC: PR-16-2001 (3/5/01)

• OTS Makes Application Processing Easier

  The OTS issued rules designed to make application processing easier to understand and more predictable for both applicants and the agency. OTS 01-13 (3/5/01)

• OTS Announces CRA Examination Schedule for 2nd Quarter 2001

  The OTS announced that 43 savings associations are scheduled for CRA examinations during the second quarter of 2001. OTS-01-12 (3/5/01)

• OCC Issues Second Quarter 2001 CRA Examination Schedule

  The OCC released its schedule of CRA examinations to be conducted in the second quarter of 2001.
  OCC:NR 2000- 21 (3/5/01)

• OCC Issues Guidance on Bank-Provided Aggregation Services

  The OCC issued a bulletin that outlines the risks involved in the offering of account aggregation services by national banks and the management controls that are needed in connection with such services.
  OCC:NR 2001- 22 (3/5/01)

• FRB Publishes Final Rule to Implement Provisions of GLBA Requiring Disclosure of ATM Fees

  The GLBA amended the Electronic Fund Transfer Act by requiring disclosure of fees imposed by ATM operators (sometimes referred to as "surcharges"). Many ATM operators that impose such fees already disclose information about the fee to satisfy existing Regulation E and ATM interchange network requirements. FRB Press Release Board's Notice (3/5/01)

• Comptroller Hawke Praises Community Development Lenders

  Comptroller of the Currency John D. Hawke, Jr. said that community development organizations, through hard work and resourcefulness, have passed a critical turning point that ensures their future success in both good economic times and bad. OCC: NR 2001-20 Speech (3/2/01)

• FDIC Issued Proposed Capital Rule for Nonfinancial Equity Investments

  As earlier reported in the Federal Register, the FDIC is requesting public comment on a proposed rule governing the regulatory capital treatment for equity investments in nonfinancial companies held by FDIC-supervised banks. FDIC:FIL-19-2001 (3/2/01)

• FDIC Issues Second Quarter CRA Examination Schedule

  The FDIC has issued the public list of institutions that it has scheduled for a CRA examination during the second quarter of 2001. FDIC:PR-15-2001 (3/2/01)

• FDIC Spotlights FFIEC Statement on Revised Article 9

  The FFIEC has issued a statement concerning a major revision to Article 9 of the UCC and its effect on financial institutions. Article 9 governs transactions involving the granting of credit secured by personal property. FIL-18-2001 (3/1/01)

• FRB is Integrating the Examination Frequency for Trust and Transfer Agency Examinations with Safety and Soundness Exams

  The frequency and scope of examination coverage of fiduciary activities at banking organizations supervised by the FRB should be based on the guidelines provided by the FRB. Supervisory risk profiles, risk assessments, and supervisory plans should also reflect fiduciary activities. FRB: SR 01-5 (3/1/01)

• FDIC Makes Public January 2001 Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in January 2001. No administrative hearings are scheduled for March 2001. FDIC:PR-14-2001 (2/28/01)

• OCC Updates The Permissible Bank Activities Guide

  (2/28/01)

• OCC Publishes Guide to Aid in Identification of Problem Banks

  The OCC published a guide intended to help examiners identify problem banks and assist in their rehabilitation or resolution. OCC:NR 2001-19 (2/28/01)

• FRB and Treasury Extend Comment Period on Reg Y

  As earlier report, the FRB and Treasury published for public comment a joint proposal that would permit financial holding companies and financial subsidiaries of national banks to engage in real estate brokerage and real estate management. The Agencies are extending the comment period on the proposal to May 1, 2001. 66FR12440 (2/27/01)

• OTS Publishes the Community Liaison

  (2/27/01)

• FDIC's Bank Technology Group Appoint Five Agency Veterans to Key Posts

  The Bank Technology Group ensures the FDIC uses a corporate-wide, integrated approach in monitoring and managing risks associated with emerging bank technologies as the risks relate to consumers and to the FDIC's insurance and supervisory functions. Areas of focus include electronic commerce activities such as Internet banking and Internet payments, enabling technologies, and related policy implications. FDIC:PR-13-2001 (2/27/01)

• Comptroller Hawke Notes Promise, Risks of Internet Banking

  Comptroller of the Currency John D. Hawke, Jr., said that while the OCC’s goal in the area of Internet banking is to encourage innovation, the new technology poses special risks and challenges for regulators. OCC:NR 2001-18 (2/26/01)

• NCUA proposes to revise its regulation establishing standards for vital record preservation

  The proposal clarifies that a credit union may preserve records in electronic form, as authorized by the Electronic Signatures in Global and National Commerce Act. 66FR11239 (2/23/01)

• NCUA is Adopting a Rule Clarifying Repayment Fees

  The NCUA is adopting a rule clarifying that as conservator or liquidating agent of a federally-insured credit union, the NCUA Board (Board) will honor a claim for prepayment fees by a Federal Home Loan Bank under the circumstances set forth in the rule. 66FR11229 (2/23/01)

• FFIEC Publishes Final Money Laundering Report

  Financial Action Task Force on Money Laundering Report on Money Launder Typologies for 2000-2001 (2/23/01)

• OCC Issues Alerts on Entities That May Be Conducting Banking Operations in the
  United States Without Authorization

  The OCC has learned that the British Bank of Commerce, a.k.a. British Bank of Trade & Commerce, 499 Park Avenue, Ste 621, New York, NY 10022 may be operating a banking business in the United States without authorization. OCC: 2001-2 (2/23/01)

• Credit unions show marked loan growth in 2000

  Lending grew 11 percent and shares grew 6.3 percent in 2000 according to preliminary data compiled from yearend call reports submitted by the nations 10,316 federally insured credit unions. NCUA Press Release (2/23/01)

• NCUA Issues Proposed Rule Concerning FCU Investments in and Loas to CUSOs
  The first proposed change clarifies that the list of permissible activities in the CUSO regulation is intended to establish broad categories of permissible activities. The second proposed change adds a
  federally-chartered corporation to the category of permissible structures for CUSOs.
  66 FR 11125 (2/22/01)

• FRB Amends Reg T

  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 FRB.
  66 FR 11101 (2/22/01)

• OCC Issues Alerts on Entities That May Be Conducting Banking Operations in the
  United States Without Authorization

  The OCC has learned that the Chase (Trust) Bank, 365 Madison Avenue, New York, NY 10002, may be operating a banking business in the United States without authorization. OCC: 2001-1 (2/22/01)

• OCC Publishes Guidance on Foreign Official Corruption

  The Treasury, OCC, FDIC, OTS and FRB issued guidance to help U.S. financial
  institutions avoid transactions that may involve the proceeds of foreign official corruption. OCC 2001-9 (2/22/01)

• FRB Raises Exemption Threshold

  The FRB has raised the asset size exemption threshold to $31 million for depository institutions
  that are required to report data under HMDA. The previous exemption level was $30 million. OCC 2001-10
  (2/22/01)

• FRB and Treasury Extend Comment Period on Real Estate Activities Proposal

  The FRB and the Department of the Treasury announced an extension of the deadline, through May 1, 2001, on their request for comment on whether real estate brokerage and real estate management are activities that are financial in nature or incidental to a financial activity and therefore permissible for financial holding companies and financial subsidiaries of national banks. Joint Press Release (2/22/01)

• FDIC Issues Deposit Broker Notification

  The FDIC informed banks that due to Congress's repeal of Section 29A of the FDIA - through enactment of the Financial Regulatory Relief and Economic Efficiency Act of 2000 - deposit brokers are no longer required to notify the FDIC that they are acting as deposit brokers or that they have stopped acting as deposit brokers. December 27, 2000, was the effective date of the legislation. FDIC:FIL-16-2001 (2/21/01)

• OCC Releases CRA Evaluations for 9 National Banks

  The OCC released a list of CRA performance evaluations that became public during the period of
  January 15 through February 14. OCC:NR 2001-17 (2/19/01)

• OCC Announces New Enforcement Actions

  The OCC announced 9 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. OCC: NR 2001-16 (2/19/01)

• FDIC Issues Alerts on Entities That May Be Conducting Banking Operations in the United States Without Authorization

  The FDIC has learned that the American Republic Bank, Indianapolis, Indiana may be operating
  a banking business in the United States illegally or without authorization. FDIC:FIL-15-2001 (2/19/01)

• Len Skiles Named NCUA Executive Director

  The NCUA Board named veteran decision-maker James Leonard Skiles executive director of the NCUA. As executive director, Skiles will be responsible for the day-to-day operation of the 1000-person federal agency. NCUA Press Release
  (2/16/01)

• Basel Committee on Banking Supervision Seeks Comment on Consultative Paper on Customer Due Diligence for Banks

  As reported in January, the paper is part of the Basel Committee's ongoing effort to strengthen risk-management procedures in banks throughout the world. As set forth in the paper, key elements for customer due diligence policies and procedures include customer acceptance, customer identification, ongoing monitoring of high-risk accounts and risk management. The paper is available on the Bank for International Settlements' Web site.FDIC:FIL-13-2001 (2/16/01)

• The FDIC would like to remind institutions that Calendar Year 2000 HMDA data is due by March 1, 2001.

  The FDIC has again contracted with the FRB in Washington, DC, to collect and process CY2000 HMDA data from those FDIC-supervised institutions that have a HMDA-reporting obligation. FDIC:FIL-14-2001 (2/16/01)

• OCC Issues Procedures on Reverse Stock Split

  This advisory dated 05/10/2000 was updated to reflect the addition of Minnesota to the list of states for which the OCC has approved reverse stock splits conducted under state corporate governance procedures. OCC:AL 2000-4 (2/15/01)

• FDIC Issues Alert on Entities That May Be Conducting Banking Operations in Canada or the US Without Authorization

  The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published the
  "Monthly Warning Advisory" (Issue No. 10), which contains the names of entities recently brought to
  OSFI's attention through an inquiry or complaint. FDIC:FIL-12-2001 (2/15/01)

• Regulators Request Comment on Proposed Rule that would Establish Minimum Capital Requirements

  The proposed capital treatment would apply symmetrically to equity investments of banks and bank holding
  companies. 66FR10212 (2/14/01)

• FRB amends Reg A to reflect the decrease in the discount rate

  The FRB has amended its Regulation A on 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. 66FR9907 (2/13/01)

• President Bush Appoints Dennis Dollar to Chair the NCUA Board

  Mr. Dollar has been the single Republican member of the NCUA Board since October 9, 1997.
  During his tenure, Mr. Dollar has supported the expansion of credit union services to more
  Americans and has championed a move toward greater regulatory flexibility for credit unions with
  sound safety records. NCUA Press Release (2/13/01)

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

  The entities were incorporated in the state of Indiana; however, the actual location of their operations is unknown. The State of Indiana Department of Financial Institutions has not issued a banking license to these entities, and they are not authorized to conduct a banking business in the state.
  FDIC:FIL-11-2001 (2/9/01)

• Basel Committee on Banking Supervision Published a Paper Entitled "Customer Due Diligence for Banks

  The committee's paper provides guidance to banks and bank supervisors on customer due diligence. The paper particularly focuses on basic standards for customer acceptance, identification, and dealing with high-risk accounts; the role of supervisors; and customer due diligence in a cross-border context. OCC 2001-7 (2/9/01)

• OCC Offers New Guidance on Liquidity Risk

  The Liquidity handbook emphasizes the importance of understanding the inherent risks associated with reduced asset liquidity, increased wholesale funding dependence, growing funding concentrations, and higher exposures to rollover risk. OCC:PR 2001-15 (2/9/01)

• IRS Extends Time Regarding Mandatory Use of Revised W-9

  The IRS has extended the deadline for the mandatory use of the revised W-9 Form until June 30, 2001. Payors must use the revised form for all new solicitations after that date. The revision requires a payee to certify that he or she is a U. S. person. Additional information regarding the extension will be contained an Internal Revenue Bulletin on February 20, 2001. IRS Notice (2/8/01)

• FDIC Issues Final rule Implementing the Program Fraud Civil Remedies

  The final rule establishes administrative procedures to impose statutorily authorized civil penalties against any person who makes, submits, or presents a false, fictitious, or fraudulent statement or claim to the FDIC in connection with FDIC employment matters, FDIC contracting activities, and the FDIC
  Asset Purchaser Certification Program. 66FR9187 (2/7/01)

• NCUA Chairwoman Moves to Assist Communications, Legislative Efforts

  Newly appointed Chairwoman Yolanda Townsend Wheat recently hired four new staffers to assist with the communications and congressional affairs operations at the NCUA. NCUA Press Release (2/7/01)

• OTS Grants Federal Thrift Charter to National Advisors Holdings, Inc.

  The National Advisors Holdings, Inc., Overland Park, Kansas received approval from the OTS to organize a federal savings bank to be known as National Advisors Trust Company, FSB (NATCO). The thrift will be located in Overland Park, Kansas and will operate as a nationwide provider of trust products and services. NATCO will not accept deposits or make loans. OTS 01-10 (2/6/01)

• OTS Releases January National CRA Ratings

  The OTS issued savings associations' Community Reinvestment Act performance evaluation ratings that became available in January 2001. OTS 01-11
  (2/6/01)

• Comptroller Hawke Outlines E-Banking Challenges Facing International Bank Supervisors

  Comptroller of the Currency John D. Hawke, Jr. underscored the need for international cooperation in the supervision of electronic banking in a speech to the annual International Monetary Seminar sponsored by the Banque de France, Paris. OCC:NR 2001-14 (2/6/01)

• 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 CRA. The list covers evaluation ratings that the FDIC assigned to institutions in November 2000.
  FDIC: PR-12-2001 (2/6/01)

• FDIC Approves Assumption of all Deposits of First Alliance Bank & Trust Co.

  The Board of Directors of the FDIC has approved the assumption of all the deposits of First Alliance Bank & Trust Company, Manchester, New Hampshire, by Southern New Hampshire Bank & Trust Company, Salem, New Hampshire. FDIC: PR-11-2001 (2/5/01)

• FDIC Helps Launch Third Annual National Consumer Protection Week

  Joining forces with federal, state and local organizations, the FDIC will help launch the third annual National Consumer Protection Week (NCPW), taking place February 5 - 10. The event will focus on predatory lending and other abusive lending practices, and highlight nationwide consumer protection and education efforts in these areas. FDIC: PR-10-2001 (2/5/01)

• OCC Issues Advisory on Internet-Initiated ACH Debits/ACH Risks

  The advisory alerts national bank management and boards of directors to specific Automated Clearing
  House (ACH) risks and emphasizes the importance of sound ACH risk management practices. In particular,
  this advisory describes a recently approved amendment to the operating rules of the National Automated
  Clearing House Association. OCC:AL 2001-3 (2/5/01)

• FRB Issued Final Rule to Amend Reg H

  The FRB issued a final rule that provides a national or state member bank meets the alternative criteria if the bank has a current long-term issuer credit rating from a nationally recognized statistical rating organization that is within the three highest investment grade rating categories used by the organization. 66FR8748
  (2/2/01)

• FDIC Issues Final Rule on the Disclosure and Reporting of CRA-Related Agreements

  As earlier reported in the Federal Register, the FDIC, FRB, OCC and OTS approved final regulations implementing the CRA Sunshine Requirements of the Federal Deposit Insurance Act (FDIA), which were enacted by the Gramm-Leach-Bliley Act. FIL-10-2001 (2/2/01)

• OTS Approves MONY's Acquisition of The Advest Group, Inc.

  The MONY Group Inc., New York, N.Y., and its subsidiary, MONY Acquisition Corp., received approval from the OTS to acquire AGI and Advest Bank and Trust Company (the Savings Bank), Hartford, Connecticut. OTS 01-09 (2/2/01)

• Technology Enhances Banks' Ability to Segment Banking Business, Play to Strengths

  In a financial world increasingly influenced by technology, one key to a
  bank's success may be its ability to segment products and services into component parts that can
  then be marketed separately, said Julie L. Williams, First Senior Deputy Comptroller and Chief
  Counsel. OCC:NR 2001-13 Remarks by Julie L. Williams (2/2/01)

• Agencies Publish Final Rule on Standards for Safekeeping Customer Information

  The OCC, FRB, FDIC, OTS published final Guidelines establishing standards for safeguarding customer information that implement sections 501 and 505(b) of the Gramm-Leach-Bliley Act. 66FR8615 (2/1/01)

• NCUA Issues Order of Prohibition

  The NCUA announced that it has issued Prohibition Orders against San Clemente Securities Inc., a brokerage firm located in San Clemente, California. NCUA Press Release (2/1/01)

• Comptroller Highlights National Bank Commitment to Community Development Investments

  Comptroller of the Currency John D. Hawke, Jr. praised national bank community development investments for supporting neighborhood revitalization efforts across the country. Part 24 of the OCC’s regulations authorizes national banks to make investments that are designed primarily to promote the public welfare. OCC:NR 2001-11 (2/1/01)

• Regulators Jointly Issue Expanded Examination Guidance for Subprime Lending Programs

  The FRB, OCC, FDIC and OTS, has developed expanded examination guidance on subprime lending.
  The purpose of the expanded guidance is to strengthen the Agencies' supervision of institutions with subprime lending programs. The guidance is directed primarily to those institutions that have subprime lending programs that equal or exceed 25 percent of tier 1 regulatory capital. Joint Press Release (2/1/01)

• FOMC Lowers its Target for Federal Funds

  The FOMC at its meeting decided to lower its target for the federal funds rate by 50 basis points to 5-1/2 percent. In a related action, the Board of Governors approved a 50 basis point reduction in the discount rate to 5 percent. FRB Press Release (2/1/01)

• FRB and Treasury Issue Joint Final Rule Governing Merchant Banking Investments

  As earlier reported by the FRB and Treasury, the final rule implements provisions of the Gramm-Leach-Bliley Act that permit financial holding companies to make investments as part of a bona fide securities underwriting or merchant or investment banking activity. 66FR8465 (1/31/01)

• OTS Releases Enforcement Actions

  The OTS Released October, November and December Enforcement Actions. (1/31/01)

• FDIC Makes Public December 2000 Enforcement Actions

  The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December 2000. No administrative hearings are scheduled for February 2001. FDIC: PR-8-2001 (1/31/01)

• FDIC Issues Alert on Stolen Cashier's Checks and Money Orders

  The FDIC has been informed by the GreenPoint Bank, Brooklyn, New York, that a number of the bank's cashier's checks and money orders have been stolen from one of its branches. FDIC:FIL-8-2001 (1/31/01)

• A memorandum has been issued on behalf of President Bush that affects recently passed regulations which have not yet been published in the Federal Register, as well as published final rules which have not yet taken effect. Regulations which have been published but have not taken effect are to have their effective date temporarily postponed for 60 days. Those that have been sent to the Federal Register but haven't yet been published are to be temporarily withdrawn from publication. There is an exception for regulations promulgated pursuant to statutory or judicial deadlines. Also, if the appropriate head of the agency signs off on it, it can be published or put into place. 66FR7701 (1/30/01)

• The OCC is proposing to amend its rules governing investment securities

  The proposed revisions to the investment securities regulations incorporate the authority to underwrite, deal in, and purchase certain municipal bonds that is provided to well capitalized national banks by the Gramm-Leach-Bliley Act. 66FR8178 OCC 2001-5 (1/30/01)

• FFIEC announces the publication of "A Guide to CRA Data Collection and Reporting

  The CRA regulations generally require the annual reporting of data on small business, small farm, and community development lending by independent commercial banks and savings associations having assets of $250 million or more. The guide can be accesses at: http://www.ffiec.gov/cra. FFIEC Press Release (1/30/01)

• The NCUA Board is modifying its security program requirements to include security of member information

  The NCUA Board is issuing ``Guidelines for Safeguarding Member Information'' to implement certain provisions of the Gramm-Leach-Bliley Act. 66FR8152 (1/30/01)

• OCC Proposes Updates and Revisions to Regulations

  The OCC is proposing to amend 12 CFR parts 1, 7, and 23 to update and revise the OCC's regulations to keep pace with developments in the law and in the national banking system. OCC:NR 2001-10 (1/30/01)

• FDIC Creates Privacy Rule Handbook to Assist Banks with Compliance

  The Privacy Rule Handbook was produced by the FDIC to help financial institutions comply with the final rule governing the privacy of consumer financial information and implement effective consumer privacy policies. FDIC:FIL-3-2001 and PR-7-2001
  (1/26/01)

• A Day of Firsts at the NCUA

  An historic event was witnessed by an overflow crowd in the Boardroom of the NCUA as Yolanda Townsend Wheat presided over the first NCUA monthly Board meeting of 2001. Not only was it the first NCUA Board meeting of the year, more significantly Wheat becomes the first woman and the first minority of African-American and Hispanic descent to hold the position of Chairwoman of the Board in the 20-year history of the NCUA. NCUA Press Release (1/26/01)

• FRB Issues Interim Rule to Revise its Rule Regarding Equal Opportunity

  The FRB has revised and reissued its Rules Regarding Equal Opportunity (rule) in order to continue its practice of conforming that rule as closely as possible to the ``Federal Sector Equal Employment Opportunity,'' regulation of the Equal Employment Opportunity Commission (Commission), which the Commission revised effective November 9, 1999. 66FR7703 (1/25/01)

• OCC Releases CRA Evaluations for 24 National Banks

  The OCC released a list of CRA performance evaluations that became public during the period of
  December 15 through January 14. OCC:NR 2001-9 List of Evaulations (1/25/01)

• OCC Announces New Electronic Interpretations and Actions

  (1/25/01)

• OCC Issues Advisory to Help Prepare Banks for the Implementation of the New Privacy Rules

  The advisory is to help banks prepare for the implementation of the new Privacy of Consumer Financial
  Information regulation, 12 CFR 40. The regulation becomes fully effective on July 1, 2001, and it affects all national banks, large and small, including most of their subsidiaries. OCC:AL 2001-2. The OCC also issued a Privacy Preparedness Questionnaire that assists banks in assessing their existing information practices. (1/24/01)

• Basel Committee on Banking Supervision Proposes Revisions to 1988 Basel Capital Accord

  The FRB, FDIC, and OCC offer summary and discussion issues on new Basel Capital Accord (1/24/01)

• OTS Publishes Quarterly Loan Servicing Market Data Survey

  (1/24/01)

• Prior to leaving office, President Clinton issued an Executive Order that revised and expanded the sanctions applicable to Yugoslavia and the Republic of Serbia. The OFAC list has been changed accordingly. OFAC (1/23/01)

• If your institution is subject to HMDA, you won't want to miss the opportunity to comment on the extensive revisions that have been proposed to Regulation C. Lucy Griffin provides guidance on how to
  comment and specific issues for comment and offers a sample comment letter to serve as an example. Get all three by clicking here. (1/23/01)

• Regulators Issued Guidance on Enhanced Scrutiny for Transactions That May Involve the Proceeds of Foreign Official Corruption

  The FRB, OCC, FDIC, OTS and Treasury issue guidance to banks on accounts held by senior foreign officials and closely related persons or entities that may involve proceeds from corruption. (1/23/01)

• Comptroller Hawke Given Treasury's Highest Honor

  Comptroller of the Currency John D. Hawke, Jr. received Treasury’s highest honor, the Alexander Hamilton Award, in a ceremony Thursday at the Department of Treasury. The award was presented by Treasury
  Secretary Lawrence H. Summers and honored Mr. Hawke for setting “an enduring standard of excellence.” OCC:NR 2001-8 (1/22/01)

• FRB And Treasury Announce Final Rule on ALternative to Rated Debt Requirement

  The FRB and Treasury announced their approval of a final rule establishing the alternative criteria that certain large banks may satisfy in order to control a financial subsidiary under the Gramm-Leach-Bliley Act. Joint Press Release (1/22/01)

• FDIC Publishes Revisions to the 2001 Call Report from FFIEC

  Most of these changes will take effect on the March 31, 2001, report date, the FFIEC has deferred the
  implementation dates for the collection of new data on securitizations until June 30, 2001, and for the new trust activities schedule until December 31, 2001. FDIC:FIL-5-2001 (1/22/01)

• FDIC, DOL Introduce Money Smart Program

  The FDIC and the Department of Labor announced a joint initiative, called Money Smart, which offers basic financial education for the first time to people taking part in Welfare-to-Work and Workforce Investment Act programs nationwide. PR-6-2001 (1/22/01)

• FDIC Proposed Capital Rule for Nonfinancial Equity Investments

  The FDIC requested public comment on a proposed rule governing the regulatory capital treatment for equity investments in nonfinancial companies held by FDIC-supervised banks. FDIC:PR-5-2001 (1/22/01)

• NCUA Issues Prohibition Orders

  NCUA Press Release (1/19/01)

• FRB Distributed $25.3 Billion to the Treasury During 2000

  Preliminary figures indicate that the Federal Reserve Banks distributed approximately $25.3 billion of their $34.0 billion total income to the Treasury during 2000. In addition, $3.75 billion was transferred from surplus to the Treasury in May 2000, as required by statute. FRB Press Release (1/19/01)

• Agencies Release Revised Capital Proposal for Nonfinancial Equity Investments

  The FRB and OCC announced proposed new rules governing the regulatory capital treatment for equity investments in nonfinancial companies held by banks, bank holding companies and financial holding companies. (1/19/01)

• OCC Issues Corporate Manual on Internet Banking

  The booklet is the last of four booklets that consolidate policies, procedures, and practices applicable to organizations and institutions seeking entry into the national banking system. OCC:NR 2001-6. Corporate Manual on Internet Banking (1/19/01)

• OTS Director Seidman Offers a Flexible Approach to Holding Company Supervision

  Explaining to the Exchequer Club that holding company supervision “is
  becoming increasingly important as we adapt our supervisory processes to meet new practical and legal
  challenges arising from the evolution of the financial services industry,” Director Ellen Seidman of the OTS outlined the Agency’s five-part strategy for supervising thrift holding companies. OTS 01-03 (1/18/01)

• Agencies Adopt Guidelines for Customer Information Security

  The OCC, FDIC, FRB and OTS have sent to the Federal Register joint guidelines for safeguarding confidential customer information. The guidelines implement section 501(b) of the
  Gramm-Leach-Bliley Act (GLBA), and will be effective on July 1, 2001. (1/18/01)

• OCC Announces 14 New Enforcement Actions

  The OCC announced 14 new enforcement actions taken against national banks and individuals
  currently and formerly affiliated with national banks. OCC: NR 2001-2 (1/17/01)

• OCC Issues Advisory on Financial Literacy

  This advisory highlights the range of financial literacy activities in which banks have participated that have been effective in enhancing consumer financial skills and extending the reach of banks' products and services to underserved or unbanked markets. OCC: AL 2001-1 (1/17/01)

• Agencies To Accept Comments on Basel Proposal To Amend Capital Adequacy Framework

  The FRB, OCC and FDIC will accept public comments on a major proposal by the Basel
  Committee on Banking Supervision to amend the 1988 international capital adequacy framework. (1/17/01)

• FRB Issues Guidance on Enhanced Scrutiny for Transactions That May Involve the Proceeds of Foreign Official Corruption

  The Money Laundering and Financial Crimes Strategy Act of 1998 requires the federal
  government to develop a national strategy to combat money laundering. Under the Act, the strategy is
  to be developed through consultation with various federal and state law enforcement and bank
  regulatory agencies, including the Board. In addition, the law requires that annual reports be submitted to Congress detailing the steps the government proposes to take with regard to its anti-money
  laundering efforts. FRB Press Release (1/17/01)

• FRB Changes its Career Enhancement Programs

  The FRB is instituting changes to its career enhancement programs for
  examination and supervisory staff to provide more opportunities for continuing professional growth and
  development. While the System has a well established training program, the rapid pace of change in the financial services industry calls for offering continuous education and career development that go beyond the traditional classroom-based instruction. FRB Press Release (1/17/01)

• FRB Modifies its Capital Adequacy Standards

  The Federal Reserve has had a longstanding practice of applying its capital adequacy standards to the top tier U.S. bank holding company (BHC) owned by a foreign banking organization. The Federal Reserve is modifying this practice in light of provisions in the Gramm-Leach-Bliley Act that permit a foreign bank to be a financial holding company (FHC). FRB Press Release (1/17/01)

• FRB Makes Revisions to the Fiduciary Education Program for Banking Supervision Staff

  The FRB is adopting a new fiduciary education program for supervision staff. The program recognizes that, with the integration of specialty examinations into the overall assessment of financial institutions, all examiners need a broad understanding of specialty areas. FRB Press Release
  (1/17/01)

• OTS Publishes Info Security Guidelines

  The Office of Thrift Supervision's version of the final information security guidelines has now been published on its site. OTS:73112 (1/16/01)

• FDIC Publicizes BSA Q&A from FinCEN

  The FDIC has published guidance to make insured banks aware of FinCEN's recently published answers to frequently asked Bank Secrecy Act questions. FDIC: FIL-4-2001 (1/16/01)

• Agencies Release Recommendations of Working Group on Public Disclosure

  A private-sector working group recommended enhanced and more frequent public
  disclosure of financial information by banking and securities organizations. Joint Press Release from FRB, OCC, and SEC (1/12/01)

• FRB Amends Reg A to Reflect a Decrease in the Basic Discount Rate

  The Board of Governors has amended its Regulation A on Extensions of Credit by Federal Reserve Banks to reflect its approval of a decrease in the basic discount rate at each Federal Reserve Bank.
  66FR2211 (1/11/01)

• FRB and Treasury Announce Final Rule on Merchant Banking Activities

  The rule, effective February 15, 2001, implements provisions of the Gramm-Leach-Bliley Act. The FRB and Secretary believe it permits a "two-way street" between securities firms and banking organizations while, at the same time, giving effect to the statutory limitations and framework adopted by Congress to help maintain the separation of banking and commerce and ensure the safety and soundness of depository institutions. Joint Press Release (1/11/01)

• FDIC Simplifies Examination Report for Well-Managed Small Banks

  The FDIC began using a streamlined format for reporting examination findings at well-managed
  small banks supervised by the agency. The new system will reduce paperwork and help the FDIC allocate
  more resources toward institutions that pose the highest risks. FDIC:PR-2-2001 and FDIC:FIL-2-2001 (1/11/01)

• OTS Publishes Applications for New Thrift Charters Detail Report

  (1/11/01)

• Regulators Publish Final Rule to Implement the CRA Sunshine Provisions

  These provisions require NGEPs, insured depository institutions, and affiliates of insured depository institutions that are parties to certain agreements that are in fulfillment of the Community Reinvestment Act of 1977 to make the agreements available to the public and the appropriate agency and file annual reports concerning the agreements with the appropriate agency. These provisions
  were contained in section 711 of the Gramm-Leach-Bliley Act. 66FR2051 (1/10/01)

• President Clinton Appoints Yolanda Townsend Wheat Chairman of the NCUA Board

  NCUA Press Release (1/10/01)

• The OTS published the Thrift Financial Report Instruction Manual.

  (1/9/01)

• OTS Releases December National CRA Ratings

  The OTS issued savings associations' Community Reinvestment Act performance evaluation ratings that became available in December 2000. OTS 01-01
  (1/9/01)

• FRB Names New Members to its Consumer Advisory Council

  The FRB 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 2001. FRB Press Release (1/9/01)

• FDIC Issues Final Rule to Implement provisions of GLB Governing Investments

  As reported Jan. 5th in the Federal Register The FDIC adopts a streamlined certification process for insured state nonmember banks to follow before they may conduct activities as principal through a financial subsidiary. State nonmember banks will self-certify that they meet the requirements to carry out these activities, which will allow
  the banks to conduct the new activities immediately. FDIC: FIL-1-2001 (1/9/01)

• 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 CRA. The list covers evaluation ratings that the FDIC assigned to institutions in October 2000.
  PR-1-2001 (1/8/01)

• OCC Proposes to Amend its Regulation to Codify OCC Interpretations on National Bank Multi-State Trust Operations

  As previously reported in the Federal Register the OCC, is proposing to amend its regulations to codify OCC interpretations on national bank multi-state trust operations. The purpose of these changes is to provide enhanced guidance to national banks engaging in fiduciary activities. OCC 2001-1 (1/8/01)

• HOT NEWS!

  The regulators have reached agreement on the final version of the information security guidelines, an important component of the G-L-B privacy protections. They should be published in the near future in the Federal Register. You can access the prepublication version by clicking here. [NOTE: works best if you are using Internet Explorer as your browser.](1/5/01)

• OCC updates the Reverse Stock Split Procedures to include Texas and New York

  This guidance describes expedited review procedures for national banks to effect reverse stock splits.
  AL 2000-4 (1/5/01)

• FDIC Issues Final Rule to Implement provisions of GLB Governing Investments

  Under the final rule, the FDIC adopts a streamlined certification process for insured state nonmember banks to follow before they may conduct activities as principal through a financial subsidiary. State nonmember banks will self-certify that they meet the requirements to carry out these activities, which will allow the banks to conduct the new activities immediately. 66FR1018 (1/5/01)

• FOMC Lowers its Target for Federal Funds Rate

  The Federal Open Market Committee decided to lower its target for the federal funds rate by 50 basis points to 6 percent. FRB Press Release (1/4/01)

• FRB adopts final rule that implements the financial holding company provisions of GLBA

  This final rule replaces the interim rules governing financial holding companies that the FRB adopted previously. The final rule describes the procedures a domestic bank holding company and a foreign banking organization must follow and the capital, management, and Community Reinvestment Act requirements they must meet in order to qualify as a financial holding company. 66FR399 (1/3/01)

• FRB and Treasury are soliciting comment on interim rules

  The FRB and Treasury are soliciting comment on interim rules that would implement section 4(k)(5) of the Bank Holding Company Act and section 5136A(b)(3) of the Revised Statutes, as enacted by the Gramm-Leach-Bliley Act. The interim rules find three general types of activities to be financial in nature, and create a mechanism by which financial holding companies, financial subsidiaries of
  national banks, or others may request that the Board or the Secretary, respectively, define particular activities within one of the three categories. 66FR257 (1/3/01)

• FRB and Treasury issued joint proposal on RE Brokerage Activity

  The FRB and Treasury jointly propose to seek comment on whether to determine by rule that real estate brokerage is an activity that is financial in nature or incidental to a financial activity and therefore
  permissible for financial holding companies and financial subsidiaries of national banks. 66FR307 (1/3/01)

• President Clinton Appoints Geoff Bacino to the NCUA Board

  President Bill Clinton has named Geoff Bacino to the NCUA Board in a recess appointment effective December 29, 2000, filling the seat held by Chairman Norman E. D'Amours, whose term expired August 2, 1999. NCUA Press Release
  (1/3/01)

November 2000

FRB Issues Proposal to Expand HMDA Reporting

The FRB has published a proposal to amend Regulation C, Home Mortgage Disclosure, to increase the
amount of information that institutions report on the Loan Application Register. The number of items
reported would increase from 13 to 17 items.
Article written by Lucy Griffin on Reg C Proposal
FRB Press Release (11/30/00)

FDIC Distributes the FFIEC 004 Form

The FDIC has sent out the FFIEC 004 report that may be used to comply with the reporting requirements of Title VIII of the Financial Institutions Regulatory and Interest Rate Control Act of 1978.
FDIC: FIL-82-2000 (11/30/00)

Greenspan Issues Statement on the Death of Henry B. Gonzalez

FRB Chairman Alan Greenspan issued the following statement: I was saddened to hear of the passing of former House Banking Committee Chairman Henry B. Gonzalez.
FRB Press Release (11/30/00)

FFIEC Releases Guidance on Technology Outsourcing

The FFIEC issued guidance on financial institutions' management of risk arising from technology services supplied by outside firms. FFIEC Press Release
(11/30/00)

FDIC Issues Notice on Risk Management Of Technology Outsourcing

The FDIC, together with the other federal regulators of banks, thrifts and credit unions, issued joint guidance on managing the risk exposure an institution faces when it uses outside firms for technology.
FDIC: FIL-81-2000 (11/29/00)

Large Credit Unions Post Continued Growth

The 1,505 federally insured credit unions with assets over $50 million posted continued growth through the first nine months of 2000 according to call report data.
NCUA Press Release (11/29/00)

HMDA Heads Up!

The Federal Reserve Board has scheduled a Board Meeting for Wednesday, November 29, 2000, to consider proposing modifications to Regulation C and the HMDA LAR. In spite of the FRB's low-key announcement, this proposal promises to be a bombshell. The FRB may propose to modify the LAR to incorporate information, such as the APR, designed to identify patterns and instances of predatory lending.(11/28/00)

Agencies Urge Banks and Thrifts to Evaluate Risks with Vendors

The OCC and OTS alerted national banks and federal thrifts that the agencies have significant safety and soundness, compliance and consumer protection concerns with banks and thrifts entering into contractual arrangements with vendors to fund so-called “title loans” and “payday loans.”
OCC: NR 2000-88 and
OTS 00-99 (11/28/00)

OCC Issues Warning on Title Loan Companies

It has come to the attention of the OCC that title loan companies are approaching national banks urging them to enter into contractual arrangements to fund title loans. These arrangements also can
involve the sale to the title loan company of the loans or servicing rights to the loans. The OCC has significant safety and soundness, compliance, and consumer protection concerns with title lending and with these arrangements.
OCC: AL 2000-11 (11/28/00)

OCC Issues Advisory on Pay Day Lending

The OCC is issuing an advisory letter to ensure that any national bank that engages in payday lending does so in a safe and sound manner and does not engage in abusive practices that would increase the compliance, legal, and reputation risks associated with payday lending and could harm the bank's customers.
OCC: AL 2000-10 (11/28/00)

FDIC Publishes Enforcement Actions

The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in October. No administrative hearings are scheduled for December.
FDIC: PR-81-2000 (11/28/00)

OCC Puts Asset Management Handbook Online

The Comptroller's Handbook booklet "Asset Management" is now available on the Internet. The keystone of the Asset Management series of handbook booklets, the booklet provides an overview of the asset management business and guidance on sound risk management processes. (11/27/00)

OTS Sets Schedule for Implementing Changes to Thrift Financial Report

The OTS will phase in proposed changes to the Thrift Financial Report in response to thrift industry requests for more time to implement the changes. OTS will delay collecting information on subprime and high loan-to-value lending until September 2001, but will begin collecting consolidated financial data on savings and loan holding companies it regulates starting with the March 2001 TFR. OTS 00-98 (11/27/00)

FRB Issues Final Rule to Adjust Dollar Amount for Certain Mortgages

As reported last week, the FRB published in the Federal Register, a final rule amending the staff commentary that interprets the requirements of Regulation Z . The FRB is required to adjust annually the dollar amount that triggers requirements for certain mortgages bearing fees above a certain amount. The adjusted dollar amount for 2001 is $465. (11/27/00)

NCUA Issues Proposed Rule to Revise Regulations

The NCUA is proposing a revised regulation to categorize activities deemed to be within the incidental powers of a federal credit union. (11/27/00)

IRS Announces 2001 Standard Mileage Rates

The IRS announced the optional standard mileage rates to use for 2001 in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. (11/27/00)

Pension Plan Limitations for Tax Year 2001

The IRS announced cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2001. (11/27/00)

FRB Announces New Internet Resource

The FRB announced a new Internet resource designed to help bankers and bank examiners apply consumer regulations to Internet banking. The Checkers Bank (TCB) is a mock online bank whose website contains violations of federal consumer protection regulations. The TCB site highlights these violations for further investigation. (11/22/00)

FRB Publishes its Annual Adjustment to Reg Z Dollar Amounts

The FRB published its annual adjustment of the dollar amount that triggers additional disclosure requirements under the Truth in Lending Act for mortgage loans that bear rates or fees above a certain amount. FRB Press Release (11/22/00)

Regulators Publish Final Insurance Consumer Protection Rules

The OCC, FRB, FDIC and OTS are publishing final insurance consumer protection rules. These rules are
published pursuant to section 47 of the Federal Deposit Insurance Act (FDIA), which was added by
section 305 of the Gramm-Leach-Bliley Act (the G-L-B Act or Act). Section 47 directs the Agencies
jointly to prescribe and publish consumer protection regulations that apply to retail sales practices,
solicitations, advertising, or offers of any insurance product by a depository institution 1 or any person that is engaged in such activities at an office of the institution or on behalf of the institution. (11/22/00)

OCC's Fair Lending Examination Procedures Manual Available Online

The "Fair Lending Examination Procedures" booklet in the Comptroller's Handbook for Compliance is now available on the Web. The booklet, which supersedes "Fair Lending" booklet issued in October 1997, incorporates the Interagency Fair Lending Examination Procedures issued by the FFIEC in 1999. (11/21/00)

FDIC Seeks Comment on How to Avoid Purchasing or Investing in Predatory Mortgage Loans

The FDIC is seeking public comments on a draft staff advisory explaining how financial institutions may
avoid indirect associations with predatory lending. While the FDIC believes that very few banks are
directly engaged in predatory lending, banks might participate in predatory lending unknowingly through
loan purchases or securitizations from predatory lenders. (11/21/00)

FRB Issues Final Rule to Decrease the Amount of Net Transaction Accounts

The FRB is amending Regulation D to reflect the annual indexing of the low reserve tranche and the reserve requirement exemption for 2001, and announces the annual indexing of the deposit reporting cutoff level that will be effective beginning in September 2001. The amendments decrease the amount of net transaction accounts subject to a reserve requirement ratio of three percent in 2001. Read the final rule. (11/21/00)

OCC Publishes Electronic Listing of National Banks

The OCC has published an electronic listing of National Banks active as of 10/31/00. You can download either an Excel or PDF file. (11/20/00)

OTS Grants Federal Thrift Charter to Independent Insurance Agents

The Independent Insurance Agents of America Inc., Alexandria, Va., and four companies that will share ownership received approval from the OTS to organize a new federal thrift institution. (11/20/00) OTS 00-97

OTS Releases September Enforcement Statistics

The OTS reported that it completed seven enforcement actions during the month of September 2000. (11/20/00) OTS 00-93A

FDIC Publishes the FinCEN SAR Activity Review

This is the first edition of The SAR Activity Review, which will be published semiannually. The publication will provide feedback to financial institutions about suspicious activity reported to FinCEN by the institutions. (11/20/00) FIL-80-2000

NCUA Issues Order of Prohibition

The NCUA announced that it has issued an Order of Prohibition against James E. Chittick, Sr., former Chairman of the Board of Grand Terrace Federal Credit Union, located in Grand Terrace, California.
(11/17/00) NCUA Press Release

NCUA Issues Order of Prohibition

The NCUA announced that it has issued an Order of Prohibition against Janell Kay Smith, former employee of Food Industries Credit Union, located in Springfield, Oregon. (11/17/00) NCUA Press Release

FDIC Issues Alert on Unauthorized Bonds

The FDIC has learned that the City of Colon, Republic of Panama, issued approximately $300 million of Panamanian bonds without the authorization and backing of the Central Government. (11/17/00) FIL-79-2000

FDIC Issues Alert on Telemarketing Scam

The Royal Canadian Mounted Police has asked the FDIC to circulate to FDIC-supervised institutions information about a Canadian lottery telemarketing scam. Although it does not appear that banks are the primary targets of this scam, banks risk potential losses if uncollected funds are advanced to customers who are the targets and victims of this scam. (11/17/00) FIL-78-2000

OCC Releases CRA Evalations for 48 National Banks

The OCC released a list of CRA performance evaluations that became public during the period of
October 15 through November 14. (11/17/00) OCC: NR 2000-87

FRB Announces Annual Adjustment 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 levels used to determine the detail and frequency of deposit reporting. (11/17/00) FRB Press Release

FOMC Maintains Existing Stance of Monetary Policy

The Federal Open Market Committee at its meeting decided to maintain the existing stance
of monetary policy, keeping its target for the federal funds rate at 6-1/2 percent. (11/16/00)
FRB Press Release

FDIC Chairman Warns Risk Managers to Watch Markets

Rising risk levels in booming markets that are vulnerable to an economic downturn, particularly
commercial real estate, are of growing concern, FDIC Chairman Donna Tanoue said in a speech
to the Risk Management Association in Nashville. (11/15/00) FDIC: PR-80-2000

OCC Announces 6 New Enforcement Actions

The OCC announced 6 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. (11/15/00) OCC: NR 2000-86

OTS Releases August and October National CRA Ratings

The OTS issued savings associations' CRA performance evaluation ratings that became available in August
and October 2000. The September ratings were issued on October 5, 2000 and are available on the OTS web site. (11/14/00) OTS 00-95

NCUA Issues Order of Prohibition

The National Credit Union Administration announced that it has issued an Order of Prohibition against Terry Hacker, former loan manager of Hawaii Federal Credit Union, located in Honolulu, Hawaii. (11/14/00) NCUA Press Release

The OCC has been advised that effective October 12, 2000, the Registrar of International and Foreign Companies, Samoa, revoked International Business Bank Corporation, Ltd. Level 2, Chandra House
Apia, Samoa, company's "A" class banking license, No. 107. (11/10/00) FDIC FIL-75-2000

The FDIC has learned that a number of official checks drawn on the Bay State Savings Bank, Worcester, Massachusetts, are missing and presumed stolen. The instruments have serial numbers ranging from 046255303 through and including 046255650. The checks have the caption "Club Check" immediately below the caption "Official Check" and are presigned.(11/10/00) FDIC FIL-76-2000

The FDIC has published the second Bank Technology Bulletin issued by FDIC's Bank Technology Group. The subject of this bulletin is Internet domain names. The bulletins highlight current issues of concern to the banking industry.
(11/10/00) FDIC: FIL-77-2000

The 2001 price level for Federal Reserve payments services is projected to increase 4.2 percent from the 2000 level. Because of price reductions in recent years, the overall price level has risen only half a percent since 1996.
(11/9/00) FRB Press Release

As earlier reported from the FFIEC, The FFIEC has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) for 2001. These revisions will become final upon approval by the U.S. Office of Management and Budget.
(11/9/00) FDIC FIL-74-2000

The FDIC announced that the Bank Insurance Fund (BIF) reported comprehensive income (net income plus unrealized gain on available-for-sale securities) of $1.141 billion for the first nine months of 2000. This is an increase of $1.254 billion over the same period last year. BIF reported a comprehensive loss of $198 million for 1999. As of September 30, 2000, the fund balance was $30.6 billion, up from $29.4 billion at year-end 1999. BIF revenues totaled $1.422 billion for the first nine months of 2000, including $1.359 billion in interest on investments in U.S. Treasury obligations and $36 million in deposit insurance assessments. (11/8/00) FDIC PR-79-2000:

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) FDIC-PR-77-2000 and FIL-73-2000

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) FRB Press Release

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) OCC NR 2000-85

As reported in the Federal Register, The federal bank and thrift regulatory agencies requested public comment on an advance notice of proposed rulemaking that considers the establishment of a simplified regulatory capital framework for non-complex institutions. (11/6/00) OTS 00-94

The SAR Activity Review Trends, Tips and Issues
(11/6/00) FinCEN:

The FFIEC announced that it has approved revisions to the reporting requirements for the Reports of Condition and Income (Call Report) for 2001. (11/6/00) FFIEC Press Release

The OTS reported that it completed seven enforcement actions during the month of September 2000.
(11/3/00) OTS 00-93

This is an issuance from the FDIC relating to the ESIGN Act. The E-Sign Act, signed into law on June 30, 2000, provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce. Included among the E-Sign Act's provisions is a section addressing the use of electronic records for an institution that wishes to exclusively provide electronic disclosures to consumers in lieu of written disclosures.
(11/3/00) FIL-72-2000

The OCC, FRB, FDIC, and OTS

are considering developing a simplified regulatory capital framework applicable to non-complex banks and thrifts (non-complex institutions). The Agencies believe that the size, structure, complexity, and risk profile of many banking and thrift institutions (banking organizations or institutions) may warrant the application of a simplified capital framework that could relieve regulatory burden associated with the existing capital rules. (11/3/00)

The OTS is proposing to change its regulations concerning corporate governance to create a class of preapproved optional bylaw provisions that federally chartered savings associations may adopt. The proposal decreases regulatory burden on federal savings associations by permitting them to adopt certain bylaws expeditiously without prior OTS review. (11/2/00) OTS:

As earlier reported by the OTS. The OTS is proposing changes would update the rules to reflect existing practices and procedures; provide more predictable procedures for applicants; and provide greater flexibility to OTS in processing applications. OTS has also applied ``plain language'' drafting techniques, which should make the application processing rules easier to understand.
(11/2/00) OTS:

The FRB announced a new approach to pricing Federal Reserve Banks' automated clearinghouse (ACH) transactions intended to enhance competition in the provision of
services to depository institutions. (11/1/00) FRB Press Release:

As earlier published in the Federal Register, the FRB has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The rule revises the disclosure requirements for credit and charge card solicitations and applications. (11/1/00) OCC 2000-28:

The OTS said it is issuing a regulatory proposal to have optional bylaws that savings associations could adopt without first obtaining OTS approval. By not requiring advance notice and allowing the thrift simply to notify OTS within 30 days of its action, the proposal reduces regulatory burden, OTS said. (11/1/00) OTS 00-92:

The OTS announced proposed changes to its applications processing rules that would help streamline the process, particularly in the early phases, and reduce the time and expense of handling applications. (11/1/00) OTS 00-91:

Director Ellen Seidman of the OTS announced that her agency will host its first ever All-Industry Leadership Conference for savings association chief executive officers and directors next April 23 and 24 in Atlanta. (11/1/00) OTS 00-90:

The occurrence of risky underwriting practices for construction, commercial (nonresidential) real estate, and home equity lending by banks has increased slightly in recent months, according to the FDIC's latest Report on Underwriting Practices. While the frequency of risky underwriting practices in these loan categories has not reached highs from two years ago, FDIC officials said the situation remains a concern.(11/1/00) FDIC PR-76-2000:

Feedback on SAR reporting released at ABA/ABA Money Laundering Seminar (11/1/00) FinCEN News Release:

• To provide Reserve Banks with more flexibility in scheduling, a risk assessment should be completed for each small shell bank holding company at least once during each supervisory cycle and within 45 calendar days of receipt of the lead bank's full-scope examination report. (10/31/00) FRB SR 00-15:
• The FDIC announced that it will begin operating its new Call Center on November 1, 2000. The Call Center will serve as the FDIC's primary telephone point of contact for the public and the banking community. (10/31/00) FDIC PR-73-2000
• FDIC Chairman Tanoe Warns Bankers: Time is of the Essence for Deposit Insurance Reform
  (10/31/00) FDIC PR-74-2000
• The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in September. No administrative hearings are scheduled for November.
  (10/31/00) FDIC PR-75-2000
• The Federal Civil Monetary Penalty Inflation Adjustment Act of 1990 requires all federal agencies with statutory authority to impose civil money penalties (CMPs) to evaluate and adjust those CMPs every four years. The FDIC last adjusted its CMP statutes in 1996. The FDIC is issuing this final rule to implement the required adjustments to its CMP statutes. (10/31/00) FDIC Final Rule:
• The number of national banks that allow customers to conduct financial transactions on their internet sites increased 52 percent from 9/99 to 7/00, according to analysis conducted by bank examiners from the OCC. Thirty-two percent of national banks had transactional Web sites in July compared to 21 percent in 9/99. (10/30/00) OCC NR 2000-84
• This booklet updates the 1995 edition. Its introduction explains which banks are subject to the booklet's procedures and how examiners set the scope of a community bank's consumer compliance examination.(10/30/00) OCC Community Bank Consumer Compliance Booklet:
• Enhancements to the Interagency Program for Supervising the U.S. Operations of Foreign Banking Organizations. (10/23/00) FRB SR 00-14
• Basel Committee Report Addresses The Supervisory Challenges of Electronic Banking (10/23/00) OCC NR 2000-82
• FRB, OCC, FDIC and OTS issued a proposed regulation implementing the provisions of the Fair Credit Reporting Act (FCRA) that permit institutions to communicate consumer information to their affiliates (affiliate information sharing) without incurring the obligations of consumer reporting agencies. (10/20/00)
• The FRB has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The rule revises the disclosure requirements for credit and charge card solicitations and
  applications. Although the revisions are effective immediately, compliance is not mandatory until October 1, 2001. (10/19/00) FRB: FIL: 70-00
• OFAC issued General Licenses effective October 12, 2000 relating to Federal Republic of Yugoslavia (Serbia and Montenegro) Kosovo Sanctions Regulations. 10/12/00 OFAC
• FRB, OCC and FDIC Syndicated bank loans adversely classified by examiners increased in 2000 for the second consecutive year, according to data released by three federal bank regulatory agencies. (10/10/00)
• FTC extends the comment deadline for its proposed customer information safeguard rules 10/6/00 FTC Press Release
• NCUA Issues Prohibition Order against the former manager of Hartford Courant Employees Federal Credit Union located in Hartford, Connecticut 10/6/2000
  NCUA
• FDIC issues new FIL to document recent OFAC changes 10/5/2000
  FDIC-FIL-68-2000:
• OTS Extends Mutual Holding Company, Conversion Rules Comment Period 10/5/2000 OTS 00-84:
• CRA Guidance from OTS Director Seidman 10/5/2000 OTS 00-83:
• NCUA Issues Prohibition Order against the former manager of GW Federal Credit Union, located in Denver, Colorado 10/4/2000
  NCUA:
• FDIC Issues October List of Banks Examined for CRA Compliance 10/5/2000 FDIC-PR-67-2000:
• FRB FINAL RULE: Federal Reserve Board issues final rule to amend Regulation Z to revise the disclosure requirements for credit and charge card solicitations and applications 10/3/00
• Security Monitoring Of Computer Networks 10/3/2000 FDIC-FIL-67-2000:
• OCC issues bulletin for national trust banks to maintain adequate liqidity & capital for examiners to assess 10/2/00 OCC 2000-26: