Skip to content

How to add predictive analytics into your risk program. Risk reports are often limited to historical insights and issues and do not provide guidance and insights into the future of the organization. Adding predictive analytics can allow your organization to detect emerging risks and create mitigation plans. This can be achieved by combining internal and external key risk indicators (KRIs) and key performance indicators (KPIs) with regulatory intelligence. This ensures that risk reports can detect more issues and highlight areas of concern. Click here to learn more.


Top Story Technology Related

08/31/2002

Top Stories for September 2002

  • FRB Publishes Final Rule for Annual Adjustment of Fee-based Trigger for Additional Mortgage Loan Disclosures

    The Federal Reserve Board 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 9/30/02

  • Consumer Advisory Council to meet on October 24, 2002

    The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, October 24. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. FRB Press Release 9/30/02

  • FFIEC Publishes Country Exposure Lending Survey

    Country Exposure Statistical Release 9/30/02

  • North Carolina State Treasurer to Host Conferences Featuring FDIC's Money Smart

    Women in North Carolina will have an opportunity to receive free instruction on personal finance and money management thanks to regional conferences hosted by the State Treasurer's office. The first conference will be held in Greenville on Saturday, September 28, at Faith Assembly of God Church. It begins at 8:30 a.m. and will be using the Money Smart curriculum developed by the Federal Deposit Insurance Corporation (FDIC). FDIC:PR-99-2002 9/27/02

  • FTC Launches Internet Security Initiative

    Federal Trade Commissioner Orson Swindle launched the FTC's new Internet security initiative at the Privacy2002 Conference in Cleveland, Ohio. The Commissioner detailed a "culture of security," in which consumers, educators, and businesses combine forces to change the way society thinks about privacy and security. FTC Press Release 9/27/02

  • Bank Robbery in Nebraska leaves 4 bank employees and 1 customer dead

    Three gunmen opened fire during an early morning bank robbery leaving 5 dead. Police are searching for the suspects, described as Hispanics wearing dark blue clothing. Additional news stories and reports can be found at: Four employees, one customer killed | Deadly Robbery | Five Killed in Neb. Bank Robbery | Five Killed in Bank Robbery in Nebraska (Reuters) 9/27/02

  • Police Detain 3 Men Who May Be the Robbers

    Coverage from the Norfolk Daily News 9/26/02

  • Federal Register Publishes Final Rule Regarding Information Sharing

    FinCEN is issuing this final rule to encourage information sharing among financial institutions and Federal government law enforcement agencies for the purpose of identifying, preventing, and deterring money laundering and terrorist activity. [This was earlier reported on BOL] 67FR60579 9/26/02

  • FinCEN Issues Final Rule to Implement New Provisions of the BSA

    The final rule would prohibit certain financial institutions from providing correspondent accounts to foreign shell banks. [This was earlier reported on BOL] 67FR60562 9/26/02

  • OTS Says State Housing Creditors Using the Parity Act Must Follow State Prepayment and Late Fee Rules

    The OTS announced that it is removing prepayment and late fee rules from the list of OTS regulations that apply to state housing creditors under the Alternative Mortgage Transaction Parity Act. OTS 02-37 9/26/02

  • Holiday District Announcements

    The Federal Reserve Banks will be closed on Monday, October 14, for the Columbus Day holiday. FR Financial Services 9/26/02

  • OCC Announces District Office Restructuring to Meet Challenges of the Future

    The OCC announced that it is realigning its District Office structure in response to continuing consolidation in the national bank system and to take advantage of advances in technology and changes in the way the OCC manages its nationwide network of examiners and field offices. OCC:NR 2002-77 9/26/02

  • FRB Approval of proposal of Herky Hawk Financial Corporation

    The Federal Reserve Board announced its approval of the application by Herky Hawk Financial Corporation, Monticello, Iowa, to acquire all the voting shares of New Vienna Savings Bank, New Vienna, Iowa; Casey State Bank, Casey, Illinois; and to merge with Biggsville Financial Corporation, and thereby acquire all the voting shares of First State Bank of Biggsville, both in Biggsville, Illinois. FRB Press Release 9/26/02

  • FOMC Leave Interest Rates Unchanged

    The Federal Open Market Committee decided today to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 9/25/02

  • Comptroller Hawke Addresses Independent Bankers Association of Texas

    OCC:NR 2002-76 9/25/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The Federal Deposit Insurance Corporation (FDIC) has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC: FIL-113-2002 9/24/02

  • FDIC Announces First Advisory Committee on Banking Policy Meeting for November 13

    Stressing his desire for transparency in conducting the business of government, FDIC Chairman Don Powell today announced that the FDIC Advisory Committee on Banking Policy will hold its first meeting on November 13. The meeting, which is open to the public, will be held at the FDIC's Washington headquarters. FDIC:PR-98-2002 9/24/02

  • Warning: New Twist to Nigerian Fraud Scheme

    The perpetrators of Advance Fee Fraud schemes are often very creative and innovative. This scheme is commonly known as "4-1-9" fraud, in reference to the section of the Nigerian penal code that addresses this type of activity. Nigerian nationals, purporting to be officials of their government or banking institutions, will fax or mail letters to individuals and businesses in the United States and other countries. Treasury Press Release 9/23/02

  • OCC Updates Guide to Tribal Ownership of a National Bank

    The OCC released an updated A Guide to Tribal Ownership of a National Bank, an agency publication designed to help Native American tribes explore entry into the national banking system by establishing or acquiring control of a national bank. OCC:NR 2002- 74 ,       Tribal Guide 9/20/02

  • Regulators Distribute Call Report for Third Quarter 2002

    Banks should complete your second quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by October 30, 2002. FDIC:FIL-112-2002 9/20/02

  • FinCEN™s Guidance on Determining Whether Tribally Owned and Operated Casinos are Eligible for Exemption From CTR Requirements

    FinCEN receives numerous questions from depository institutions regarding the applicability of exemptions from filing Currency Transaction Reports (CTRs) for tribally owned and operated casinos in accordance with the Bank Secrecy Act. FinCEN Press Release 9/20/02

  • Testimony of Dam Terrorist Financing: A Progress Report on Implementation of the USA PATRIOT Act

    Testimony 9/20/02

  • Barry Kolatch Named Deputy Comptroller For Economic Research and Policy Development

    The OCC announced that Barry Kolatch has been appointed Deputy Comptroller for Economic Research
    and Policy Development. Mr. Kolatch, who will start in his new position on September 23, will be responsible for economic and policy analysis and research on the performance of national banks. OCC:NR 2002- 75 9/20/02

  • Banking Industry Has Weathered The Downturn; Commercial Credit Quality Remains A Concern

    The banking industry has performed well in recent years despite increasing loan delinquencies, notably in commercial credits, according to a report released in the FDIC's Regional Outlook. FDIC Chairman Don Powell stated that "the extent of commercial loan deterioration has not reached the levels experienced in the early 1990s, however, this is a situation that we're continuing to watch closely." FDIC:PR-97-2002 9/20/02

  • Survey of Real Estate Trends

    Semiannual summary of observations on developments in local commercial and residential real estate markets. Survey, FYI 9/20/02

  • FTC and Citigroup Announce $215 Million Settlement

    On September 19, 2002, the FTC announced the settlement of charges involving abusive subprime lending practices brought against the Associates First Capital Corporation and Associates Corporation of North America (The Associates).


    The $215 Million settlement is the largest consumer protection settlement in the history of the FTC. The charges against The Associates involved engaging in systematic and widespread deceptive and abusive lending practices. The Associates were acquired by Citigroup in November 2000. The charges only related to the actions of The Associates prior to the acquisition. The allegations involved violations of the FTC Act through lending practices the induced consumers to refinance existing debts into high interest rate home loans and the purchase of high cost credit insurance.


    Over 2,000,000 consumers were impacted by the action of The Associates and will be receiving a portion of the settlement. In addition to the FTC settlement, a proposed class action lawsuit settlement will provide an additional $25 million to consumers whose mortgages loans were "flipped" by The Associates.


    The FTC indicated that consumers will, within the next few weeks, receive a notice in the mail regarding eligibility and participation in the distribution of the settlement funds. It is estimated that the average payout may be $1,000 per consumer.
    Citigroup Press Release - 9/19/02

    9/19/02

  • Treasury Announces Final Rule Regarding Information Sharing Issued

    FinCEN has issued the final rule under Section 314 of the USA Patriot Act. We have summarized the thirty-nine pages for you and highlighted the important sections in "Sharing Information Under the Patriot Act". Treasury Press Release,    BOL Summary 9/19/02

  • Federal Register Publishes Final Rule on Cancellation Contracts and Debt Suspension Agreements

    As earlier report, the OCC is adding a new part 37 to its regulations that addresses debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). 67FR58962 9/19/02

  • FDIC FIL about OFAC FAQ

    As earlier reported, on September 11, 2002, the Department of the Treasury's Office of Foreign Assets Control (OFAC) published on its Web site a series of frequently asked questions (FAQs) concerning OFAC regulations, policies and procedures, including questions from financial institutions. FDIC:FIL-111-2002 9/19/02

  • OCC Announces New Electronic Interpretations and Actions

    Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 9/19/02

  • Regional Outlook: 3rd Quarter 2002

    Banking industry has performed well in recent years, notably in commercial credits. Regional Outlook 9/19/02

  • New SAR-MSB Form Available

    MSBs that are money transmitters or issuers, sellers or redeemers of money orders or traveler's checks are required to report suspicious activity by filing the SAR-MSB Form. Form suspicious activity by filing the SAR-MSB Form. Form 9/18/02

  • OCC Rule on Debt Cancellation Contracts and Debt Suspension Agreements Provides New Consumer Protections and Safety and Soundness Standards

    The OCC has adopted a new regulation adding consumer protections and establishing safety and soundness standards for debt cancellation contracts (DCCs) and debt suspension agreements (DSAs). OCC: NR 2002- 73 9/18/02

  • OCC Releases CRA Evaluations For 35 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of August 15 through September 14, 2002. OCC:NR 2002-72 9/18/02

  • OCC Announces 10 New Enforcement Actions and 1 Termination

    The OCC announced 10 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 2002- 71 9/18/02

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 33), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-109-2002 9/17/02

  • FDIC Issues Alert on Counterfeit Official Bank Checks

    The FDIC has learned that counterfeit official bank checks drawn on First Hawaiian Bank, Honolulu, Hawaii, are in circulation. FDIC:FIL-108-2002 9/17/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-94 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-109-2002 9/17/02

  • NCUA Introduces 5300 Call Report Short Form as Some Credit Unions Prepare for More Frequent Reporting

    The NCUA has finalized a new 5300 Call Report Short Form to be used by federally insured credit unions (FICUs) with $10 million or less in assets. The Short Form, with only seven pages, will be used by 54 percent of FICUs as they begin reporting on a quarterly basis at the end of the third quarter of 2002 which concludes September 30. Press Release 9/16/02

  • FRB Issues Interim Rule on Reporting and Disclosure Requirements for State Member Banks With Securities

    The Board has modified its regulations implementing section 12(i) of the Securities Exchange Act of 1934 to reflect the amendments made to section 12(i) by the Sarbanes-Oxley Act of 2002. These amendments vest the Board with the authority to administer and enforce several of the enhanced reporting, disclosure and corporate governance obligations imposed by the Sarbanes-Oxley Act with respect to state member banks that have a class of securities registered under the Securities Exchange Act of 1934. 67FR57938 9/16/02

  • Test Drive FedImageSM Services

    Find out how FedImage Services can drive your competitive advantage as you customize your total image management solution. FedImage 9/16/02

  • OCC Publishes Working Paper on "A Cross-Country Analysis of the Bank Supervisory Framework and Bank Performance"

    This OCC Economics Department working paper discusses the policy issues raised by the structure, scope, and independence of bank supervisors. The paper compares how nations across the world address these issues and whether the way a nation addresses these issues affects the profitability of its banks. Paper 9/16/02

  • Quarterly Banking Profile--2nd Quarter 2002

    This report card on industry status and performance includes written analyses, graphs, and statistical tables. Quarterly Banking Profile, FYI 9/13/02

  • OCC Issues Correction to Assessment Fees

    This final rule makes a technical correction to the final rule that the OCC published on November 16, 2001. That provision sets forth the formula for the semiannual assessment the OCC charges each national bank. 67FR57509 9/12/02

  • FDIC List of Minority Depository Institutions

    Minority Depository Institutions often play a unique role in promoting the economic viability of under-served communities. The FDIC has historically taken steps to preserve and encourage minority ownership of insured financial institutions. On April 9, 2002, the FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. Minority Depository Institutions Program 9/12/02

  • Progress in the Financial War on Terrorism

    This issue of FYI summarizes the progress that has been made over the past 12 months in the financial war on terrorism. The FDIC is proud to work closely with the Office of Homeland Security (OHS), the Department of the Treasury, and our fellow state and federal financial regulators to stem the flow of terrorist funds, provide technical assistance to foreign governments, and safeguard the nation's critical banking and finance infrastructure. FYI 9/12/02

  • OFAC Publishes FAQ

    OFAC has published on its website the first installment of answers to questions of general applicability frequently asked by the public. As part of its commitment to regulatory transparency and customer service, the Office is continuing to prepare answers to additional questions that are often asked; additional questions and answers will be posted periodically. FAQ 9/11/02

  • Pricing The Risks of Deposit Insurance

    Papers for a closed September 13 conference cosponsored with the Journal of Financial Services Research. Conference Information 9/11/02

  • FATF calls on all countries to join combat against terrorist financing

    One year after the events of 11th September 2001 in the United States, the Financial Action Task Force (FATF) reaffirms its commitment to be a leader in the international fight against the financing of terrorism. Building on its efforts in the past year, the FATF will continue to take aggressive steps to prevent, detect and ultimately dry up the flow of funds to terrorists. Countering the financing of terrorism is a top priority for the FATF said the new FATF President Jochen Sanio and we are calling upon all countries around the world to join us in this effort. FATF Press Release 9/11/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-107-2002 to notify banks of a recent OFAC change where OFAC has amended its Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-107-2002 9/11/02

  • FDIC-hosted symposium on a new standard for organizations sharing financial data.

    On September 23, an FDIC-sponsored symposium will explore the many ways that Extensible Business Reporting Language (XBRL) can help the financial services industry exchange data. XBRL is a freely licensed standard that uses common terms and definitions. Symposium 9/9/02

  • FDIC Publishes Issue of FYI

    Corporate Earnings Growth Suggests Business Sector Recovery 9/9/02

  • FinCEN Issues Enforcement Action

    Great Eastern Bank of Florida, Miami, Florida 9/9/02

  • FDIC Seeks Comment on Proposed Rule Regarding Insurance for State Banks That Are Chartered as Limited Liability Companies

    As previosuly reported in the Federal Register, the FDIC is requesting public comment on the attached proposed rule clarifying that a state bank that is chartered as a limited liability company (LLC) could be considered eligible for federal deposit insurance. Comments on this proposed rule are due by October 21, 2002. FDIC:FIL-106-2002 9/9/02

  • FDIC Issues September List of Banks Examined for CRA Compliance

    The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in June 2002. FDIC:PR-96-2002 Monthly List of Banks Examined for CRA Compliance
    9/6/02

  • FFIEC Reports that the June 30, 2002 Uniform Bank Performance Report are Online

    FFIEC Press Release 9/6/02

  • OCC Issues Guidance on Investment Portfolio Credit Risks

    The guidance alerts banks to the potentially significant credits risks they incur when safekeeping investment portfolio assets with third parties, such as brokers, broker/dealer firms and banks. OCC 2002-39 9/6/02

  • FDIC Issues Alert on Stolen U.S. Savings Bonds

    The East Windsor Township Police Department, Mercer County, New Jersey, has asked the FDIC to alert all U.S. banks to the theft of $100,000 in U.S. Savings Bonds during a residential burglary in East Windsor Township. It is believed the suspects will attempt to redeem the bonds outside the geographical area where the burglary occurred. FDIC:FIL-105-2002 9/6/02

  • OCC Reports Derivatives Volume Tops $50 Trillion

    Derivatives held by U. S. commercial banks increased $3.8 trillion in the second quarter 2002, to $50.1 trillion, the second highest amount ever recorded, the Office of the Comptroller of the Currency reported today in its quarterly Bank Derivatives Report. OCC:NR 2002- 70 Bank Derivatives Report 9/6/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-104-2002 to notify banks of a recent OFAC change where OFAC has amended its Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC: FIL-104-2002 9/6/02

  • FFIEC Publishes Call Report Validation Criteria

    Updated the Current Validation Criteria: Excel | PDF for the September 2002 Call Reports. 9/5/02

  • Federal Register Publishes Comment Deadline on Draft White Paper on Sound Practices

    The paper discusses the views of the agencies on sound practices based on discussions with industry representatives on how the events surrounding September 11, 2001, have altered business recovery and resumption expectations for purposes of ensuring the resilience of the U.S. financial system and seeks comments on those views. 67FR56835 (text) 9/5/02

  • Accounting Services via FedLine for the Web Demo

    The Accounting Services Demo illustrates the steps a Depository Institution would take to view accounting information services. This service provides real-time access to intra-day account balance; daylight overdraft balance and available funds balance information, as well as information found on your statement of account. Federal Reserve Financial Services 9/4/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-103-2002 to notify banks of a recent OFAC change where OFAC removed names from its Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-103-2002 9/4/02

  • FDIC Issues Special Alert on Counterfeit Cashier's Checks and Altered Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks and altered cashier's checks drawn on Mid City Bank, Inc., Omaha, Nebraska, are in circulation. FDIC:FIL-101-2002 9/4/02

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 32), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-100-2002 9/4/02

  • OCC Issues Fourth Quarter 2002 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 2002. OCC:NR 2002- 69, Schedule 9/4/02

  • OTS Announces 117 CRA Exams Scheduled for 4th Quarter 2002

    The OTS announced that 117 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the fourth quarter of 2002. OTS 02-36 Schedule 9/4/02

  • Fed Information Services via FedLine for the Web

    You can now access FedACH Information Services on the Internet. This latest service addition to FedLine for the Web® makes it possible for you to use the web to track, research and account for your institution's FedACH activity. Press Release 9/4/02

  • FRB Financial Services Publishes New Accounting Documents

    Operating Circular #1 Account Relationships (PDF) | Agreements and Forms (PDF) 9/4/02

  • FinCEN Announces Survey on Costs of Filing Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs) and the Use of the Exemption Process

    On August 23, 2002, FinCEN launched a survey of a statistically valid sample of banks, savings and loans and credit unions to gather information on the costs of filing CTRs and SARs, as well as the use of the exemption process for CTR filings. Sampled institutions were notified via email and faxes that highlighted the importance of the survey and their responses to it in helping to improve the effectiveness of Bank Secrecy Act reporting requirements to the benefit of financial institutions, as well as the federal government™s anti-money laundering efforts. FinCEN Press Release 9/3/02

  • FDIC Issues Fourth Quarter CRA Examination Schedule

    The FDIC has issued the public list of institutions that it has scheduled for a Community Reinvestment Act (CRA) examination during the fourth quarter of 2002. This list is published pursuant to revised CRA regulations published in May 1995 that require each federal bank and thrift regulator to publish a quarterly CRA examination schedule at least 30 days before the beginning of each quarter. FDIC:PR-93-2002 FDIC Issues Fourth Quarter CRA Examination Schedule, FDIC Regional Offices 9/3/02

  • Regulators Issue Draft White Paper on Sound Practices To Strengthen the Resilience of the U.S. Financial System

    The sound practices identified reflect the preliminary conclusions of the FRB, OCC, SEC, and the New York State Banking Department regarding the factors necessary to strengthen the resilience of critical U.S. financial markets in the face of a wide-scale, regional disaster. FRB Press Release, OCC:NR 2002-68, SEC:2002-130 Draft White Paper

  • FDIC'S Money Smart Financial Education Program to Aid Victims of Predatory Lending In East Palo Alto and Menlo Park

    Victims of abusive predatory lending practices in East Palo Alto and Menlo Park may qualify for mortgage payment relief, thanks to an innovative $5 million anti-predatory lending initiative in which the FDIC Money Smart curriculum serves as the financial education component. FDIC:PR-94-2002 9/3/02/li>

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

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for September. FDIC:PR-95-2002 9/3/02

  • September 2002 Call Reports

    Posted the Current Validation Criteria: Excel | PDF for the September 2002 Call Reports 9/3/02

07/31/2002

Top Stories for August 2002

  • OCC Issues Revised Advisory on Reverse Stock Split Procedures



  • The OCC is revising the expedited review procedures for national banks to effect reverse stock splits. The
    revision is necessary to reflect the repeal of 12 USC 51, minimum capital requirements. Advisory Letter AL 2000-4,
    dated May 9, 2000, is rescinded. OCC:AL 2002-6 8/30/02

  • OCC Issues Examiner Handbook on Personal Fiduciary Services



  • The handbook addresses a broad range of fiduciary services that banks provide to individuals, their families and their businesses. Banks provide these services as a trustee, investment adviser or in any capacities where the bank possesses investment discretion on behalf of another. Personal Fiduciary Services OCC:NR 2002- 67 8/30/02

  • Banking Industry Reports Record Earnings



  • Commercial banks had record earnings of $23.4 billion in the second quarter, surpassing the previous record set three months earlier by 7.8 percent, the Federal Deposit Insurance Corporation reported today. A basic yardstick of earnings performance-return on assets (ROA)-rose to 1.41 percent, the second highest level recorded. For the first time in two years, average net interest margins-the difference between the average yield on loans and other investments and the average cost of deposits and other liabilities-at smaller banks increased. Despite problems with commercial and industrial (C&I) loans, banks have seen continued strength in consumer lending. FDIC:PR-92-2002 , Preliminary Bank Earnings Report -- Second Quarter 2002, FYI 8/30/02

  • FDIC Consumer News

    How to protect against a high-cost “predatory” home loan, plus tips on other topics. FDIC Consumer News 8/28/02

  • FDIC Publishes Contact List



  • Telephone, mail contacts in the FDIC; links to other governmental financial agencies.
    Contact Page 8/28/02

  • FDIC and the Association of Military Banks of America Join Forces for Worldwide Promotion of Money Smart Curriculum



  • The FDIC announced that the Association of Military Banks of America (AMBA) has joined its Money Smart Alliance Program. The announcement was made by Donna Gambrell, Deputy Director of the FDIC's Division of Supervision and Consumer Protection (DSC), and by Henry W. Neill, Jr., Executive Vice President of AMBA, at a signing ceremony held at the FDIC's headquarters in Washington, D.C.
    FDIC-PR-91-2002 8/28/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on O'Bannon Bank, Buffalo, Missouri, are in circulation. The counterfeit items bear the routing number 081505702 and the account number 780001. FDIC:FIL-99-2002 8/28/02

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



  • The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 31), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-98-2002 8/28/02

  • FDIC Issues Alert on Internet Investment Scheme



  • The Canada Deposit Insurance Corporation (CDIC) has issued a news release advising North American investors and depositors of an apparent Internet fraud scheme falsely involving CDIC. FDIC:FIL-97-2002 8/28/02

  • FDIC Issues Alert on Possible Attempted Fraud By Convicted Fugitive



  • The U.S. Marshals Service has again asked the FDIC to alert all U.S. banks about the 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 other fraud schemes. He has used his real name, John Ruffo, in various schemes, but he may also attempt to use an alias. He is believed to have access to large sums of money and may have U. S. bank accounts. FDIC:FIL-96-2002 8/28/02

  • FDIC Issues Alert on Unauthorized Sale of Samoan Banking Licenses



  • The OCC has advised that the Office of the Registrar of International and Foreign Companies, Samoa, has issued a press release announcing that Witherspoon, Seymour & Robinson Incorporated (WSR II C.) is promoting "pre-approved banking licenses" purportedly issued by Samoa. This entity is not a licensed trustee company in Samoa, and only such companies are permitted to submit license applications. FDIC:FIL-95-2002 8/28/02

  • FDIC FIL about OFAC Change



  • The FDIC has published FIL-94 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-94-2002 8/28/02

  • FDIC Issues Alert on Fictitious Official Checks and Certified Checks



  • The FDIC has learned that fictitious official checks and certified checks are being widely circulated. The checks bear the name Americrest Bank & Trust. Some show the address as Post Office Box 23202, Van Nuys, CA, while others show the address as P. O. Box 2012, Van Nuys, CA 91411. All show the telephone number 818-779-7778. There is no bank in California named Americrest Bank & Trust.
    FDIC:FIL-93-2002 8/28/02

  • Thrift Industry Turns in Another Strong Quarter



  • The OTS reported earnings for the nation’s thrift industry of $2.86 billion in the second quarter of 2002, up 14 percent over the year-ago second quarter. The results were down six percent from the record high in the first quarter of 2002. OTS 02-35 8/27/02

  • OECD Issues Guidelines for the Security of Information Systems and Networks: Towards a Culture of Security



  • The Organization for Economic Cooperation and Development formally has released its Guidelines for the Security of Information Systems and Networks. The Guidelines consist of nine principles that aim to increase public awareness, education, information sharing, and training that can lead to a better understanding of online security and the adoption of best practices. "A Culture of Security" represents a new way of thinking -- one in which everyone using computers and networks like the Internet has a role to play. Press Release 8/26/02

  • FRB releases Discount Rate Meetings Minutes



  • The Federal Reserve Board released the minutes of its discount rate meetings from May 20 to June 24, 2002. FRB Press Release 8/26/02

  • FDIC Issues FIL on Proposed Rule on Customer Identification Program



  • As earlier reported, the regulators issued jointly proposed a rule that would add a new section to the Bank Secrecy Act regulations. The proposed Section 103.121, Customer Identification Programs for Banks, Savings Associations, and Credit Unions, requires that financial institutions implement a written, risk-based customer identification program, maintain information used to verify identities and compare the names of new customers against government lists of known or suspected terrorists or terrorist organizations. The proposed rule will apply to customers seeking to open new accounts. FDIC:FIL-92-2002 8/23/02

  • FinCEN Issues SAR Activity Review



  • This issue of The Review contains information related to potential terrorist financing activity as well as an analysis of SAR filings since September 11, 2001 that referred to terrorism. FinCEN News Release, SAR Activity Review 8/23/02

  • OFAC Makes Comment Letters Public



  • OFAC has published on its Web site copies of comment letters and emails it received in response to its proposal to make civil penalty actions public. The actual regulation on making civil penalty actions public has still not been finalized by OFAC. OFAC 8/22/02

  • OCC Issues Bulletin on Enforcement Action Policy



  • This bulletin makes public Policies & Procedures Manual, dated July 30, 2001, which describes the OCC's policy for taking appropriate enforcement action in response to violations of law, rules, regulations, final agency orders and/or unsafe and
    unsound practices or conditions (Enforcement Action Policy). OCC 2002-38 8/22/02

  • FFIEC Adds September Forms



  • The FFIEC added the September 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 8/22/02

  • OCC Announces New Electronic Interpretations and Actions



  • Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 8/22/02

  • FRB Issues Statement on Payments System Risk Policy



  • The FRB announced that it will not, over the near term, incorporate two policy options into its longer-term Payments System Risk (PSR) policy plan. The FRB will, however, continue to analyze the benefits and potential drawbacks of a two-tiered pricing regime for daylight overdrafts. FRB Press Release 8/21/02

  • OCC Issues Alert on Internet Banking Fraud Scam



  • The Canada Deposit Insurance Corporation (CDIC) has advised North American investors and depositors of an apparent Internet fraud scam falsely involving CDIC. A person or group of persons carrying on business as the Maryland Investments Club is offering investment certificates called "digital investment certificates" for sale over the Internet. OCC:ALERT 2002-10 8/21/02

  • OCC Releases CRA Evaluations For 26 National Banks



  • The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of July 15 through August 14, 2002. OCC:NR 2002-66 Evaluations 8/21/02

  • FRB Publishes List of Foreign Margin Stocks



  • The List of Foreign Margin Stocks is composed of certain foreign equity securities that qualify as margin securities under Regulation T. The Foreign List is published twice a year by the Board. 67FR53875 (text) 67FR53875 (pdf) 8/20/02

  • OCC Announces 10 New Enforcement Actions and 3 Terminations



  • The OCC announced 10 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002-65 8/20/02

  • FDIC Issues Alert on Counterfeit Official Checks and Money Orders



  • The FDIC has learned that counterfeit official checks drawn on United California Bank, Los Angeles, California, and counterfeit bank money orders drawn on Warren Five Cents Savings Bank (Warren Bank), Peabody, Massachusetts, are in circulation. FDIC:FIL-91-2002 8/19/02

  • FDIC Issues Alert on Missing Money Orders



  • The FDIC has been informed by Peoples State Bank, Many, Louisiana, that 1,200 of the bank's money orders have been stolen while in transit from the printer to the bank. FDIC:FIL-90-2002
    8/19/02

  • Governor Gramlich to begin treatment for leukemia



  • Federal Reserve Board member Edward M. Gramlich will begin treatment Monday for chronic lymphocytic leukemia (CLL) – a form of leukemia that can be treated successfully. Governor Gramlich will be treated with chemotherapy on an out-patient basis at Georgetown University Medical Center. FRB Press Release 8/19/02

  • OCC Publishes Final Rule of Section 312 of the USA PATRIOT Act



  • As earlier reported in the Federal Register, the interim final rule provides guidance to banks on how to implement section 312, which became effective July 23. OCC 2002-37 8/19/02

  • Ten Largest Thrift Companies



  • The Ten Largest Thrift Companies highlights the performance of the largest thrift companies in the most recently completed quarter. The report is based on earning announcements and other publicly available information and generally is published within 45 days of the completion of a calendar quarter. Ten Largest Thrift Companies, FYI 8/16/02

  • OCC Issues Bulletin on Previously Announced Changes to HMDA



  • The bulletin announces revisions to reporting requirements in Regulation C. Most of the changes become effective January 1, 2004, for data required to be reported by March 1, 2005. However, two changes become effective January 1, 2003, for data required to be reported by March 1, 2004. OCC 2002-36 8/16/02

  • Holiday District Announcement



  • The Federal Reserve Banks will be closed on Monday, September 2, for the Labor Day holiday. Please refer to the instructions listed for information on your local office. Announcement 8/16/02

  • Revisions to Federal Reserve Study Suggest Check Use Peaked in the Mid-1990s



  • An analysis published in the August edition of the Federal Reserve Bulletin compared the
    revised annual check volume in 2000, 42.5 billion, to estimates from two earlier Federal Reserve
    studies that 49.5 billion checks were paid in 1995 and 32.8 billion in 1979. The analysis
    suggested that check use may have peaked during the mid-1990s, though the exact year of the
    peak is unknown. Press Release
    8/15/02

  • Fed Keeps Fed Funds Unchanged



  • The FOMC decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release
    8/13/02

  • FDIC Publishes Historical Statistics on Banking



  • The Historical Statistics on Banking (HSOB) provides annual statistical information on the banking industry beginning in 1934. These data can be used to identify and analyze long-term trends and to develop benchmarks to evaluate the current condition of the banking and thrift industries. HSOB 8/13/02

  • OCC Publishes Final Rule on Capital Equivalency Deposits



  • As earlier reported in the Federal Register, the OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies. OCC 2002-35 67FR41619 8/13/02

  • FDIC Issues Alert on Counterfeit Official Bank Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. The items appear to be widely circulated. FDIC:FIL-89-2002 8/13/02

  • FDIC Distributes FinCEN Advisory



  • In a continuing effort to assist banks in Bank Secrecy Act compliance, anti-money laundering efforts, and prevention and detection of other financial crimes, the Federal Deposit Insurance Corporation (FDIC) forwards to FDIC-supervised banks each issue of FinCEN Advisory. FDIC: FIL-88-2002 8/13/02

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



  • The Central Bank of Belize has issued a warning about entities that are not licensed to provide banking and/or financial business in Belize. Any proposed transactions involving Trinity Savings Bank and Goldman & Stein should be viewed with extreme caution. FDIC:FIL-87-2002 8/13/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on Founders Bank, Chesterfield, Missouri, are in circulation.
    FDIC:FIL-86-2002 8/13/02

  • OCC Issues Alert on Unauthorized Sale of Samoan Banking Licenses



  • This issuance informs banks and financial regulators that Witherspoon, Seymour, and Robinson, Incorporated is promoting "pre-approved banking licenses" purportedly issued by the territory of Samoa. This company is not a licensed trustee company in Samoa. OCC:ALERT 2002-9 8/12/02

  • Group on OFAC List Loses Challenge

    The Holy Land Foundation has lost its lawsuit challenging an Executive Order which designated it a terrorist organization subject to OFAC sanctions. In a ruling issued 8/8, U.S. District Judge Kessler held that orders blocking assets "are an important component of U.S. foreign policy, and the president's choice of this tool to combat terrorism is entitled to particular deference." Kessler turned down the injunction sought by the foundation, and rejected arguments that the blocking order violates due process, free speech rights, and the foundation's religious freedom. US Courts
    8/9/02

  • Regulators Extend Comment Period On Draft Credit Card Guidance

    The federal financial institution regulatory agencies announced Thursday
    that they are extending the deadline, to September 23, for comment on
    their draft guidance on account management and loss allowances for credit
    card lending. OCC NR 2002-64,
    OTS 02-34 , FDIC PR-90-2002, FFIEC Press Release , FFIEC Press Release
    8/9/02

  • False Privacy Claims Lead to Settlement

    When a company makes claims about the steps it takes to protect the privacy of customer data, they'd better be true. Microsoft learned that lesson the hard way and, as a result, has settled charges with the FTC regarding the privacy and security of personal information collected from consumers through Microsoft's "Passport" web services. FTC Announcement 8/9/02

  • OTS Changes Mutual-to-Stock Conversion Rules

    The Office of Thrift Supervision is publishing a final rule implementing changes to its mutual-to-stock conversion and mutual holding company regulations. OTS Announcement

    Conversion Application 8/9/02

  • FDIC's FYI Report on 25 Largest Banking Companies

    According to the FDIC, second quarter Net Income dipped slightly and asset quality worsened for the 25 largest banking companies. FDIC FYI ,
    Quarterly Study of the 25 Largest
    8/9/02

  • SEC Proposes Regulation Analyst Certification



  • The proposed regulation would require
    that any research report disseminated by broker or dealer include
    certifications by the research analyst that the views expressed in the
    research report accurately reflect the analyst's personal views, and
    whether the analyst received compensation or other payments in
    connection with his or her specific recommendations or views.
    67FR51510 8/7/02

  • FDIC Issues Special Alert Regarding Fictitious Cashier's Checks In Circulation



  • The Federal Deposit Insurance Corporation (FDIC) has learned that fictitious cashier's checks are in circulation. The checks bear the name Audi Bank N. A., 19 East 54th Street, New York, New York 10022. Audi Bank N. A. does not exist. However, Bank Audi (USA), a legitimate bank, is located at that address. The routing number used on the checks, 021200957, is assigned to the Commerce Bank/North, Ramsey, New Jersey. The account number, 03771407, does not appear to be a valid number.
    FDIC: FIL-85-2002 8/7/02

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



  • The Federal Deposit Insurance Corporation (FDIC) reported that the Bank Insurance Fund's (BIF) reserve ratio fell 1.26 percent from December 31, 2001 to March 31, 2002. The Savings Association Insurance Fund (SAIF) increased to $388 million compared to $33 million for the same period last year. The increase in comprehensive income was due to the fluctuation in the loss reserves for anticipated failures of insured institutions during the first half of 2002 compared to last year. Seven BIF-insured banks failed during the first six months of 2002 with total assets at failure of $2.4 billion. One SAIF-insured thrift failed during the same period with total assets at failure of $50 million.
    FDIC Press Release 8/7/02

  • SEC Issues Supplemental Information on Accelerated Deadline for Insider Transaction Reports



  • The SEC has issued supplemental information about the provision of the Sarbanes-Oxley Act that amends Section 16(a) of the Securities Exchange Act of 1934 to accelerate the due date for officers,' directors' and principal security holders' reports of transactions. The amendment becomes effective Aug. 29, 2002.
    SEC Press Release 8/6/02

  • FBIIC Issues Interim Policy on GETS Card Program



  • The Financial and Banking Information Infrastructure Committee (FBIIC) issued the an interim policy on the sponsorship of private sector entities in the Government Emergency Telecommunications Service (GETS) Card Program. The interim policy states the circumstances under which qualifying private sector financial institutions may request federal sponsorship in the program.
    FDIC: FIL-84-2002 8/6/02

  • OCC Appoints New Deputy Comptroller for Risk Evaluation



  • The Office of the Comptroller of the Currency has appointed
    Kathryn E. Dick as the new Deputy Comptroller for Risk Evaluation.
    Ms. Dick will serve as the Comptroller's principal advisor on systemic risks facing
    the national banking system and will chair the OCC's National Risk Committee, which
    coordinates the agency's risk identification practices.
    NR 2002-63 8/6/02

  • FDIC Issues August 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 May 2002. FDIC Press Release 8/5/02

  • Settlement Agent Inquiry Feature via FedLine for the Web



  • Settlement agents for Federal Reserve banks can now gain access to the National Settlement Service via the Web. Agents will be able to directly monitor their own settlement activity as well as view settlement arrangement profiles for the arrangements for with they act as agent. There will be no change to the process for submitting settlement files. FRB Financial Services Announcement 8/5/02

  • Company that Pitched "Advance-fee" Loans Will Pay $3 Million in Redress as Part of Federal/state Settlement



  • American Savings Discount Club (ASDC) and two individual defendants will establish a redress fund of nearly $3 million, will be subject to a lifetime ban on credit-related telemarketing, and will face a lifetime telemarketing bond of $500,000. FTC Press Release 8/2/02

  • FFIEC Announces the Availability of Data on Mortgage Lending



  • The FFIEC announced the availability of data for the year 2001 regarding mortgage lending transactions at 7,631 financial institutions covered by the Home Mortgage Disclosure Act (HMDA) in metropolitan areas throughout the nation. FFIEC Press Release 8/2/02

  • FFIEC Announces the Availability of Data on Small Business



  • The 2001 CRA data reflect originations and purchases of small business, small farm, and community development loans from 1,912 institutions, including 1,443 commercial banks and 469 savings associations. FFIEC Press Release 8/2/02

  • FDIC Issues Special Alert/Counterfeit Official Bank Checks



  • The FDIC has learned that counterfeit cashier's checks drawn on three separate financial institutions are in circulation. The items appear to be circulating nationwide. FDIC:FIL-83-2002 8/2/02

  • Approval of proposal of Bank of Orange County



  • The Federal Reserve Board announced its approval of the applications by Bank of Orange County, Fountain Valley, California, to merge with Cerritos Valley Bank, Artesia, California, and establish branches at the former locations of Cerritos. FRB Press Release 8/1/02

  • FDIC Publishes Notice of Agency Meeting



  • The meeting will be held in the Board Room on the sixth floor of the FDIC Building located at 550 - 17th Street, N.W., Washington, D. C. on August 6, 2002. Notice 8/1/02

  • TO ACCESS PRIOR TOP STORIES

    To access previous Top Stories (such as the ones from July, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

06/30/2002

Top Stories for July 2002

  • Treasury Withdraws and Reproposes Bank Deposit Interest Regulations

    The Treasury Department withdrew January 2001 proposed regulations that would have required reporting to the IRS for bank deposit interest paid to all nonresident alien individuals and issued new proposed regulations that will require reporting on a more limited basis. Treasury PO-3301 Bank Deposit Interest Regulations 7/31/02

  • OFAC Publishes Interpretative Ruling

    The Office of Foreign Assets Control has published an interpretative ruling on computerized reservation systems (Cuba travel). Interpretative Ruling 7/31/02

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

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in June. No administrative hearings are scheduled for August. FDIC:PR-87-2002 7/31/02

  • FDIC Issues Amended Statement of Policy on Bank Merger Act Transactions

    The FDIC has amended its Statement of Policy on Bank Merger Transactions to incorporate a statutory change made by the USA PATRIOT Act. FDIC:FIL-82-2002, Notice 7/31/02

  • Hispanic Banking Forum Encourages Banks to Reach Growing Hispanic Population in Chicago Region

    The OCC, FRB of Chicago and the FDIC will co-sponsor a Hispanic Banking Forum in Chicago, Illinois on July 31. OCC:NR 2002-62 7/31/02

  • OCC Publishes Bulletin on Customer ID Proposal

    As earlier reported in the Federal Register, this bulletin transmits a notice of proposed rule making jointly published by the U.S. Treasury Department, through the Financial Crimes Enforcement Network (FinCEN), the federal banking agencies, and the National Credit Union Administration on July 23. OCC 2002-34 7/31/02

  • Appeals Court Upholds Financial Privacy Regulations

    Trans Union May Not Sell Consumers' Personally Identifiable Financial Information without their Consent. The United States Court of Appeals for the District of Columbia Circuit has affirmed a lower court decision upholding regulations enacted by the Federal Trade Commission and six other federal agencies to implement the privacy provisions of the Gramm-Leach-Bliley Act (GLBA). FTC Press Release 7/30/02

  • Written Agreement with Community First Bank and Trust

    The Federal Reserve Board announced the execution of a Written Agreement by and among the Community First Bank and Trust, Celina, Ohio, the Federal Reserve Bank of Cleveland, and the Ohio Division of Financial Institutions. FRB Press Release 7/30/02

  • HUD Issues Proposed Rule to RESPA

    HUD is issuing a proposed rule under RESPA, to simplify and improve the process of obtaining home mortgages and reduce settlement costs for consumers. 67FR49133 7/29/02

  • OCC is Revising the Expedited Review Procedures for National Banks to Effect Reverse Stock Splits

    This advisory letter updates existing guidance to reflect the repeal of 12 USC 51 on minimal capital requirements. OCC:AL 2002-6 7/29/02

  • Regulators Issue Proposed Collection of Data on Subprime Consumer Lending Programs

    As earlier reported in the fderal register, the FDIC, FRB, and the OCC are requesting comment on the addition of a proposed new schedule to the Reports of Condition and Income (Call Report) that would collect data on consumer loans in subprime lending programs. FDIC:FIL-81-2002, FFIEC 7/29/02

  • 2002 National Money Laundering Strategy Roll Out

    The release of the 2002 National Money Laundering Strategy into a world that changed dramatically as a result of the villainous terrorist attacks on September 11, 2001. The Strategy directs the government's resources against money launderers and those who finance terrorist activities and individuals. It is a good plan and a critical mission. Press Release 2002 Money Laundering Strategy 7/26/02

  • Treasury Requests Comments on Suspicious Activity Report Money Services Businesses

    It is anticipated that the form will be final and available for use on October 1, 2002. Until that time, Money Services Businesses are to continue to use the Bank SAR form, Form TD F 90–22.47. 67FR48704 7/26/02

  • Approval of application of Nordea Bank Finland

    The Federal Reserve Board announced the approval of the application of Nordea Bank Finland Plc, Helsinki, Finland, to establish a branch in New York, New York and acquire ownership of a commercial lending company, American Scandinavian Banking Corp., New York, New York. FRB Press Release 7/26/02

  • DIT Test Schedule

    Federal Reserves Financial Services publishes the DIT Test Schedule 7/26/02

  • FDIC Merger Decisions: Annual Report to Congress

    Approval of bank absorptions when the resulting bank is a state nonmember bank. Report 7/26/02

  • The Rise of Risk Management: Basel and Beyond

    FDIC hosts a symposium on risk management and the new Basel Capital Accord. Symposium Description 7/26/02

  • FDIC Issues Rule on Corporate Debt Collection

    The regulation sets forth the procedures the FDIC will follow in collecting debts owed to the United States. These procedures include collection of debts through administrative offset, salary offset, administrative wage garnishment and tax refund offset. 67FR48525 (text) 7/25/02

  • Enhancing Financial Transparency

    In response to the recent wave of corporate accounting controversies that has shaken investor confidence in U.S. financial markets, the FDIC gathered prominent policymakers, academic experts, and business and accounting professionals on June 4, 2002 to participate in a daylong symposium addressing transparency issues. This issue of FYI and an accompanying Bank Trends report summarize the comments provided by participants in the June FDIC symposium. FYI 7/25/02

  • FinCEN Announces it is Rescinding an Exemption

    FinCEN is announcing that it is rescinding an exemption from the provisions of the Bank Secrecy Act regulations granted in 1972 to persons required to register as brokers or dealers in securities (``broker-dealers'') solely to permit the sale of variable annuities contracts issued by life insurance companies. 67FR48388 (text) 7/24/02

  • Software Change to the Fedwire Funds Service Message Format

    A number of changes were made to the Fedwire Funds Service message format to facilitate mapping from a SWIFT MT103 to Fedwire . One of these changes was to add a second optional element to Business Function Code field tag {3600} to map to the SWIFT field 26T, Transaction Type Code. This second optional element of the Business Function Code {3600} is intended to be present only when the first element, Business Function Code, is CTR. Software Change and Clarification of Field {3600} 7/24/02

  • FBIIC Policy on Sponsorship of GETS Cards

    In order to provide guidance to financial organizations seeking sponsorship for NCS services, the Financial and Banking Information Infrastructure Committee (FBIIC) is developing a series of policies on the sponsorship of priority telecommunications access for private sector entities through the NCS. OCC 2002-33 FBIIC GETS Process 7/24/02

  • Prohibition Against Interstate Deposit Production: Annual Loan-to-Deposit Ratios

    The FRB, OCC and FDIC recently issued updated 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 (Interstate Act). OCC 2002-32, 2002 Host State Loan-to-Deposit Ratios 7/24/02

  • OCC Issues Alert on Unauthorized Banking Entities

    This issuance alerts banks and financial regulators that Trinity Savings Bank and Goldman & Stein are not authorized to conduct banking or financial business in Belize. Neither entity has been authorized by the OCC to conduct banking in the United States. ALERT 2002-8 7/24/02

  • 2001 FDIC Program Performance Report

    The Report compares actual performance to the goals established in the FDIC's 2001 Annual Performance Plan. 7/24/02

  • OFAC

    The Office of Foreign Assets Control has issued guidance on transshipments to Iran. Guidance7/24/02

  • Regulators Draft Guidance on Credit Card Lending

    Under the auspices of the FFIEC, the OCC, FRB, FDIC and OTS have developed account management and loss allowance guidance for credit card lending. FRB Press Release, OCC:NR 2002-61, OTS 02-32, FDIC-PR-86-2002, FFIEC Press Release , Guidance 7/23/02

  • FDIC Issues Proposed Rule on State Banks Chartered as Limited Liability Companies

    The FDIC proposes to issue a regulation that would clarify that a bank that is chartered as an LLC under State law would be considered to be ``incorporated'' under State law if it meets certain criteria. 67FR48054 (text) 67FR48054 (pdf) 7/23/02

  • Customer ID Proposals Published in Federal Register

    The proposed rules on customer identification and verification have now been published in the Federal Register. Written comments must be submitted within 45 days from today. 67FR48289 (text), 67FR48289 (pdf)7/23/02

  • Treasury Issues Guidance on the USA PATRIOT Act, Pending Issuance of Final Rule

    The Department of the Treasury and FinCEN issued an interim rule advising financial institutions on how to comply with the statutory provisions of section 312 of the USA PATRIOT Act, pending issuance of the final rule that will be published by October 25, 2002. PO-3270 7/22/02

  • FDIC Issues Alert on Missing Cashiers Checks

    The FDIC has been informed by Bank of America, Dallas, Texas, that 1,000 of the bank's cashier's checks have been stolen while in transit from the check printer to the bank. The bank's routing number is 114000019, and the account number is 001641003748. FDIC:FIL-80-2002 7/22/02

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

    The OSFI of Canada has published "Monthly Warning Advisory" (Issue No. 30), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-79-2002 7/22/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-78 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-78-2002 7/22/02

  • FTC Testifies on Identity Theft and the Impact on Seniors

    The FTC told the U.S. Senate Special Committee on Aging that about 10 percent of consumers who called the agency to report that they are victims of identity theft are age 60 or older. FTC Press Release 7/19/02

  • OCC Unveils New Version of Web-based Manual To Ease Access to Updated Application Requirements

    The OCC announced that the first six booklets in the Comptroller's Licensing Manual are now available on the OCC's Internet site. OCC:NR 2002- 60 Licensing Manual 7/19/02

  • Administrative Actions Against PNC Financial Services Group

    The Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission jointly announced the issuance of administrative actions addressing bank supervisory and securities law-related matters against The PNC Financial Services Group, Inc., Pittsburgh, Pennsylvania, a bank holding company. FRB Press Release 7/19/02

  • OFAC Comment Deadline Looms

    July 19 is the deadline for submitting comments on OFAC's proposal to make information public on OFAC civil penalty actions Don't miss the opportunity to tell them what you think! OFAC Civil Penalties Proposal How to Write a Comment Letter 7/18/02

  • OCC Issues Examination Procedures for COPPA

    Financial institutions are subject to COPPA if they operate a Web site(s) or online service(s) (or portion thereof) directed to children, or have actual knowledge that they are collecting or maintaining personal information from a child online. OCC 2002-31 Examination Procedures 7/18/02

  • Treasury Department and Social Security Administration Announce Plans to Develop ID Verification System to Help Fight Identity Fraud

    The Treasury Department and the Social Security Administration (SSA) announced an agreement to develop and implement a system by which financial institutions may access a database to verify the authenticity of Social Security Numbers provided by customers at account opening. PO-3264 7/18/02

  • Treasury and Federal Financial Regulators Issue Patriot Act Regulations on Customer Identification

    The Department of the Treasury and seven federal financial regulators issued proposed rules that would require certain financial institutions to establish minimum procedures for identifying and verifying the identity of customers seeking to open new financial accounts. Written comments on the proposed rules may be submitted within 45 days of their publication in the Federal Register. FRB Press Release, FDIC: PR-85-2002, NCUA Press Release, SEC Press Release, OCC:NR 2002-59 , OTS 02-31 7/18/02

  • OCC Announces New Electronic Interpretations and Actions

    Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 7/18/02

  • OCC Releases CRA Evaluations For National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of June 15 through July 14, 2002. 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 2002-58 7/18/02

  • THE WAIT IS OVER -- Proposed Rules on Customer ID Just Issued

    The proposed rules on customer identification and verification, required by Section 326 of the USA PATRIOT Act have now been issued by the various regulatory agencies. Proposed Rules on Customer ID Just Issued 7/17/02

  • OCC Issues Correction to Previously Issued Rule

    On June 6, 2002, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC published a final rule in the Federal Register that amended each Agency's regulation governing deposit production offices. Today they issued a document that corrects a typographical error in the OCC's regulation. 67FR46842 7/17/02

  • OCC Announces New Enforcement Actions and Terminations

    The OCC announced 11 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 3 terminations of an existing enforcement action. OCC:NR 2002- 57 7/17/02

  • NCUA Submits Comment to SEC Supporting Credit Union Ability to Offer Sweep Accounts

    The NCUA announced that it has issued a letter to the SEC in response to the SEC's request for comment on the Notice of Application of Evangelical Christian Credit Union (ECCU) for Exemptive Relief (SEC File No. S7-12-01). In the letter, NCUA Chairman Dennis Dollar stated, We support exemptive relief for ECCU and for all federally-insured credit unions to permit them to offer sweep account services without registration to all their members on the same terms and conditions as banks and thrifts.” NCUA Press Release 7/17/02

  • FBI Studying SSN Misusage for Terrorist Links

    The FBI has reported to Congress that it is undertaking a multi-phase data mining project that seeks to identify potential terrorist related individuals through Social Security Number misusage analysis. The report was in connection with a Congressional hearing on identity theft. FBI Statement to Congress on ID Theft 7/16/02

  • Regulators are Hosting an Inter-agency Information Technology Security Conference

    The Regulators are hosting an inter-agency information technology security conference October 15 – 17, 2002 at the Hilton DFW Lakes Executive Center in Grapevine, Texas. OTS Press Release 7/16/02

  • RESPA Proposed Rule to Simplify and Improve the Process Of Obtaining Mortgages to Reduce Settlement Costs to Consumers

    HUD submitted to Congress a draft of its proposed rule to reform the Real Estate Settlement Procedures Act ("RESPA"). Congress has 15 days from the date of submission to review this draft proposal before HUD can publish it in the Federal Register for public comment. The draft proposed rule has three major parts. First, the proposal clarifies disclosure rules applicable to transactions involving mortgage brokers. Second, the proposed rule amends the good faith estimate disclosure ("GFE") to increase clarity and make it more useful to consumers. Third, the draft proposal creates a system of guaranteed cost disclosures pursuant to a safe harbor under Section 8 of RESPA. Press Release (Word doc) 7/15/02

  • FRB's Financial Services Publishes Operating Circular #7

    The Operating Circular sets forth the terms under which the Federal Reserve Bank of (City) maintains Securities Accounts and effects Transfers of Book-Entry Securities for Participants. By maintaining a Securities Account, a Participant agrees to all theprovisions of this Circular, as amended from time to time. Operating Circular #7 7/15/02

  • Service Charge Information via FedLine for the Web

    FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Service Charge Information 7/15/02

  • Account Management Information via FedLine for the Web

    FedLine for the Web provides Internet access to many of the Federal Reserve's financial services. These services can be accessed from most Internet-connected PCs within your institution, eliminating the need for a dedicated FedLine terminal with proprietary Federal Reserve software. Initially, only select services will be available on FedLine for the Web, but the Federal Reserve will continue to develop and introduce new Web-based services to support your business environment. Account Management Information 7/15/02

  • Agenices Request Comment on Changes to the Call Report

    The FFIEC, of which the agencies are members, has approved the agencies' publication for public comment of proposed revisions to the Consolidated Reports of Condition and Income (Call Report) for banks and the Thrift Financial Report (TFR) for savings associations, which are currently approved collections of information. 67FR46250 7/12/02

  • FedACH File Edit Change

    A change to FedACH edit procedures will align the stale date and duplicate file parameters. Beginning July 29, 2002, the stale date edit will check for file creation dates that are older than four days. Previously the stale date edit looked for files that were over five days old. FRB Financial Services 7/12/02

  • New Quarterly Letter to FDIC Stakeholders to Communicate Significant Agency Activities

    The Letter to Stakeholders will be published at the end of each calendar quarter. It will appear in both electronic and hard-copy forms. This is just one of many tools we are using to communicate significant activities at the FDIC. FDIC:FIL-77-2002, Letter to Stakeholders FYI 7/11/02

  • Minutes of Board discount rate meetings, April 1, 2002, to May 6, 2002

    The Federal Reserve Board released the minutes of its discount rate meetings from April 1 to May 6, 2002. FRB Press Release 7/11/02

  • Written Agreement with Rurban Financial and State Bank and Trust

    The Federal Reserve Board announced the execution of a Written Agreement by and among Rurban Financial Corp., Defiance, Ohio; The State Bank and Trust Company, Defiance, Ohio; the Federal Reserve Bank of Cleveland; and the Ohio Division of Financial Institutions. FRB Press Release 7/11/02

  • U.S. Lifts Financial Advisories on Israel, Lebanon and St. Kitts & Nevis

    FinCEN notified U.S. financial institutions that, based on the improvements in their anti-money laundering regimes and on the FATF action, the U.S. is withdrawing the FinCEN Advisories on Israel, Lebanon, and St. Kitts & Nevis. Treasury Press Release FinCEN Advisory #26A FinCEN Advisory #18A, FinCEN Advisory #17A, Financial Action Task Force (FATF) 7/10/02

  • FTC Calls for Stiffer Penalties for Identity Thieves

    The Federal Trade Commission testified that it supports a Senate bill to increase penalties for identity thieves who use stolen identities to commit certain federal crimes. FTC Press Release 7/10/02

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 29), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-74-20027/10/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on four separate financial institutions are in circulation. FDIC:FIL-75-2002 7/10/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-76 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-76-2002 7/10/02

  • Federal Reserves Financial Services Publishes the Summary of Billing Service Changes

    The survey results identified a need to improve the Summary Statement of Service Charges. Specifically, customers indicated they had trouble interpreting the Billing statement and reconciling their monthly charges. Summary of Billing Service Changes 7/9/02

  • Written Agreement with First American Bank

    The Federal Reserve Board announced the execution of a Written Agreement by and among First American Bancorp, Inc., Stonewall, Oklahoma, the First American Bank, Stonewall, Oklahoma, the Federal Reserve Bank of Kansas City, and the Oklahoma State Banking Department. FRB Press Release 7/9/02

  • Orders of Restitution against former directors of Great Eastern Bank

    The Federal Reserve Board announced the issuance of Orders of Restitution against William Chiang, Paul Lee, Joseph C.C. Kuo, Lih Yuh Kuo, and Ching-Tseh Yao, all former directors of the Great Eastern Bank, Flushing, New York. FRB Press Release 7/9/02

  • FOMC Announces 2003 Schedule

    The Federal Open Market Committee announced its tentative meeting schedule for 2003 FRB Press Release 7/8/02

  • FDIC Issues July 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 April 2002. FDIC:PR-84-2002 7/8/02

  • Opportunities for Former FDIC Employees

    The FDIC is collecting the names of former employees who may be interested in working on projects, including foreign technical assistance projects, when needed by federal government agencies, international organizations, or private organizations seeking persons knowledgeable about banking and financial issues. These projects vary in nature, scope and duration. Employment Opportunity 7/5/02

  • OCC Issues Bulletin on OFAC Proposed Rulemaking

    The OCC bulletin transmits a notice of proposed rulemaking published by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) on June 19 concerning the availability of information. This notice was previously announced on BOL. OCC 2002-30 7/5/02

  • FFIEC Publishes Call Report Validation Criteria

    Added March 31, 2002 Call Report Validation Criteria Edits Expressed in Boolean Logic: PDF | Excel - FINAL, revised July 1, 2002 7/5/02

  • OCC Issues Alert on Fictitious Regulatory Agency Issuances

    This issuance alerts banks and financial regulators to the distribution from an unknown source by e-mail, fax, or regular mail of fictitious regulatory agency issuances that contain proposals involving claims to certain international payments reportedly held by the OCC. The names and signatures on these documents are not those of real OCC officials. OCC:Alert 2002-7 7/3/02

  • FDIC Sells Nextbank Owned Credit Card Portfolio

    The FDIC has announced the sale of the owned credit card portfolio from the former NextBank, National Association, Phoenix, Arizona (NextBank). NextBank was closed on February 7, 2002, by the Office of the Comptroller of the Currency and the FDIC was named receiver. FDIC:PR-83-2002 7/3/02

  • FFIEC Publishes Statistical Release

    March 31, 2002 E16 Country Exposure Statistical Release 7/3/02

  • Suspicious Activity Reporting Rule for Broker-Dealers Finalized

    In a continuing effort to expand the coverage of suspicious activity reporting to all potentially vulnerable sectors of the financial services industry, the Financial Crimes Enforcement Network announced a new rule requiring brokers and dealers in securities to report suspicious activity. FinCEN Press Release7/2/02

  • FTC Charges of Violating Debt Collection and Credit Reporting Laws

    Canoga Park, California-based D.C. Credit Services, Inc. and company co-owner, David Cohen, have agreed to pay a $300,000 civil penalty as part of a settlement of Federal Trade Commission charges that they violated the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). In addition to requiring the civil penalty, the consent decree to settle the charges would permanently ban defendant David Cohen from engaging in debt collection activity. FTC Press Release 7/2/02

  • FDIC Issues Final Rule on an Agency Reorganization

    On June 30, 2002, the FDIC, through an internal organizational order, merged the Division of Supervision and the Division of
    Compliance and Consumer Affairs and as a result of the merger, changed the name of the ``Division of Supervision'' and ``Division of Compliance and Consumer Affairs'' to the ``Division of Supervision and Consumer Protection'' (DSC). 67FR44351 (text) 7/2/02

  • FDIC To Market Connecticut Bank of Commerce Assets

    The FDIC announced that it will market a $248 million loan portfolio from the failed Connecticut Bank of Commerce, Stamford, Connecticut, whose offices were located in several Connecticut cities and New York, New York, within the next 45 days. FDIC:PR-82-2002 7/2/02

  • Testing, Testing

    Is it a subliminal message from the regulators emphasizing the importance of testing your compliance program and testing your information security measures, or is it simply a reflection of the fact that some Internet technology simply isn't ready for prime time? Start your day with a chuckle by viewing an FDIC Webcast on "Enhancing Financial Transparency". You'll see that even the regulators can get befuddled by technology. (And once you get past the humorous opening part, the Webcast really is excellent.) 7/1/02

  • FRB of Philly Enters into Written Agreement with PA Bank

    The latest bank to bite the BSA dust is a Pennsylvania bank which entered into a written agreement with the Federal Reserve Bank of Philadelphia June 20, 2002. The Agreement requires the bank to conduct a comprehensive review of BSA compliance controls and procedures and identification and reporting of suspicious activity and make a written report of what it finds to the reserve bank, plus a lot more. You'll want to read the order. FRB Press Release 7/1/02

  • Money Smart, a training program from the FDIC

    The FDIC recognizes the importance of financial education, particularly for people with little or no banking experience. That 's why they created Money Smart, a training program to help adults outside the financial mainstream enhance their money skills and create positive banking relationships. Money Smart 7/1/02

  • FDIC Approves Assumption of the Insured Deposits and Certain Assets of the Universal Federal Savings Bank, Chicago, Illinois

    The FDIC has approved the assumption of the insured deposits of Universal Federal Savings Bank, Chicago, Illinois by Chicago Community Bank, Chicago, Illinois. FDIC:PR-81-2002, Spanish Version 7/1/02

  • FDIC Approves Assumption of The Insured Deposits and Certain Assets of The Connecticut Bank of Commerce, Stamford, Connecticut

    The FDIC has approved the assumption of the insured deposits of The Connecticut Bank Of Commerce, Stamford, Connecticut, by Hudson United Bank, Mahwah, New Jersey. FDIC:PR-80-2002 7/1/02

  • FDIC Makes Public May Enforcement Actions; One Administrative Hearing Scheduled

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in May. One administrative hearing is scheduled for July. FDIC:PR-79-2002 7/1/02

  • FDIC Chairman Appoints Cottrell L. Webster As Agency's Ombudsman

    FDIC Chairman Don Powell today announced the appointment of Cottrell L. Webster to the post of Ombudsman. Webster replaces Ronald F. Bieker, who will become the agency's Regional Director in Kansas City. Webster now serves as Director of the Division of Supervision's Memphis Regional Office. FDIC:PR-78-2002 7/1/02

  • FDIC is Centralizing the Consumer Affairs Function

    The FDIC is pleased to announce that it is centralizing its consumer affairs function with the establishment of the National Consumer Response Center (CRC) within the Division of Supervision and Consumer Protection. This move will improve efficiency and enhance service to consumers needing assistance. The CRC will become operational on July 1, 2002. FDIC:FIL-73-2002 7/1/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Guaranty Bank of California, Los Angeles, California, are in circulation. The routing number is 122235902. It appears the checks may be circulating nationwide. FDIC:FIL-72-2002 7/1/02

  • FDIC Issues Alert on Missing Cashier's Checks

    The FDIC has been informed by Bank West of Nevada, Las Vegas, Nevada, that 284 of the bank's cashier's checks are missing and may have been stolen. The bank's routing number is 122401778. FDIC:FIL-71-2002 7/1/02

05/31/2002

Top Stories for June 2002

  • Statement by FTC Chairman Muris Regarding Proposed RESPA Rule Revisions by Housing and Urban Development

    Speaking at the National Press Club in Washington, D.C. , Department of Housing and Urban Development (HUD) Secretary Mel Martinez announced a proposal that would reform the regulatory requirements under the Real Estate Settlement Procedures Act (RESPA) that govern settlement fees paid by home buyers. FTC Press Release 6/28/02

  • OCC Survey Shows Measured Response By Banks to Slowing Economy

    The OCC's eighth annual Survey of Credit Underwriting Practices found that underwriting standards for commercial and retail loans tightened for the second consecutive year in a measured response to a slowing economy and pockets of deteriorating product performance. OCC:NR 2002-56 6/28/02

  • OCC Announces New Electronic Interpretations and Actions

    Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 6/28/02

  • FDIC Expands Money Smart Alliance Program

    The FDIC announced that the U.S. Department of Housing and Urban Development, the U.S. Small Business Administration, the United Way of Greater Los Angeles and the CHARO Business Center have joined the FDIC in an effort to raise financial literacy in underserved communities and bring the unbanked into healthy banking relationships through the FDIC's Money Smart financial education program. The announcement was made at a news conference in Los Angeles. FDIC:PR-75-2002 6/28/02

  • FDIC Announces Receivership of Universal Federal Savings Bank, Chicago, Illinois

    Universal Federal Savings Bank, Chicago, Illinois, was closed by the Office of Thrift Supervision (OTS), and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-76-2002 Statement 6/28/02

  • Fed Leaves Interest Rates Unchanged

    The Federal Open Market Committee decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. FRB Press Release 6/27/02

  • Scam Artists Use Do Not Call Registry to Commit Fraud

    Scam artists capitalizing on the popularity of existing state "Do Not Call" lists and the proposed FTC "Do Not Call" registry have devised yet another method to trick consumers into giving up personal information, such as their Social Security number, bank account number, credit card number or telephone calling card number. FTC Press Release 6/27/02

  • FFIEC Adds June Forms

    The FFIEC added the June 2002 FFIEC 002 Reporting Form and instructions and the June 2002 Instructions for Preparation of the FFIEC 031 and 041 Reporting Forms. 6/27/02

  • Financial Institution Guidelines for Making Same-day Federal Tax payments in EFTPS

    The guidelines provide consolidated information to financial institutions regarding same-day payment methods to remit Federal tax payments for business taxpayers. FRB Financial Services 6/27/02

  • Reg C Changes Published in the Federal Register

    The FRB has published in the Federal Register, its amendments to Regulation C (the HMDA reg) and staff interpretations. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. 67FR43217 (text), 67FR43218 (text) 6/27/02

  • FDIC Announces Receivership Of The Connecticut Bank Of Commerce, Stamford, Connecticut

    The Connecticut Bank of Commerce, Stamford, Connecticut, was closed by the Banking Commissioner, Connecticut Department of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. FDIC:PR-74-2002 Closing Information 6/27/02

  • New Money Smart Initiatives Announced at San Antonio Event

    As part of the national rollout of the Federal Deposit Insurance Corporation's (FDIC) Spanish-language version of its highly successful Money Smart financial education program, several new initiatives were announced at a news conference in San Antonio, Texas. FDIC:PR-73-2002 6/27/02

  • FDIC Announces Release of Spanish Language Version of Money Smart Program

    Calling financial education "key to building assets and achieving long-held dreams," FDIC Chairman Don Powell launched the Spanish language version of the FDIC's adult financial education curriculum, Money Smart, at a news conference in Pilsen, a Latino neighborhood in Chicago. FDIC:PR-71-2002 , Speech 6/26/02

  • FDIC Issues Removal and Prohibition Order and a Civil Money Penalty Against a Texas Banker

    The FDIC has issued a removal and prohibition order and a civil money penalty of $2,500 against Vernon Beryl Murdock, Jr., formerly with the Kent County State Bank, Jayton, Texas. FDIC:PR-72-2002 6/26/02

  • Banking agencies issue host state loan-to-deposit ratios

    The FRB, OCC and FDIC iissued 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. These ratios update data released in June 2001. Ratios, FRB Press Release, OCC:NR 2002-55 FDIC:FIL-70-2002, FDIC-PR-70-2002 6/25/02

  • OCC Issues Booklet on Insurance Activities

    The OCC issued a booklet that provides information to national banks and OCC examiners on the risks, controls and supervision of national bank insurance activities. OCC:NR 2002- 54, Booklet 6/25/02

  • Regulation C Changes Become Official

    The FRB has published its amendments to Regulation C (the HMDA reg) and staff interpretations reported on earlier in BOL Top Stories. There is also a new technical amendment which requires lenders to ask telephone applicants for monitoring information.. The technical amendment on telephone applicants is effective for applications taken beginning January 1, 2003. FRB Press Release 6/24/02

  • Regulators Distribute Call Report for Second Quarter 2002

    Banks should complete your second quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by July 30, 2002. FDIC:FIL-69-2002 6/24/02

  • OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

    The OTS announced that 81 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the third quarter of 2002. OTS 02-30, Exam Schedule 6/24/02

  • FATF Annual Report for 2001-2002 released

    The Financial Action Task Force on Money Laundering (FATF) issued its thirteenth annual report. The report outlines the main achievements of the FATF in 2001-2002 under the Presidency of Hong Kong, China, including the significant progress that has been made in combating terrorist financing and in the work on non-cooperative countries and territories (NCCTs). FATF Press Release 6/24/02

  • OCC Issues Bulletin on Previously Issued Proposed Rule to Implement a Provision of the USA PATRIOT Act

    Section 312 of the act furthers this goal by requiring U.S. financial institutions to establish due-diligence policies,
    procedures, and controls reasonably designed to detect and report money laundering through correspondent accounts and private banking accounts of non-U.S. persons. Private banking accounts involve accounts of $1 million or more for individuals that are administered by an officer, employee, or agent of a financial institution acting as a liaison between the financial institution and the direct or beneficial owner of the account. OCC 2002-29 6/24/02

  • Bill McPherson Named Deputy Comptroller for Large Banks; Michael Brosnan Appointed Examiner-in-Charge

    The Office of the Comptroller of the Currency announced that James W. (Bill) McPherson has been named Deputy Comptroller for Large Banks. Mr. McPherson, who has served as the Examiner-in-Charge for Bank of America, NA, since January, 1998, will report to Douglas W. Roeder, Senior Deputy Comptroller for Large Banks. OCC:NR 2002-53 6/24/02

  • Federal Reserve Financial Services Issues Memo on Unilateral Repo Adjustments

    As previously announced in Clearing Memorandum #236, Fedwire ® Securities Service participants will be permitted on payment date to unilaterally cancel a preauthorized debit associated with a Repo Claim Adjustment to another Fedwire participant. This will be done by submitting a Unilateral Adjustment Request to the Federal Reserve, with the understanding that the Fedwire participant sending the request has not notified the Fedwire participant counterparty and has no agreement from that counterparty. Clearing Memo #238 6/21/02

  • Fedwire Securities Service Enhanced Functionality

    Under the category of Book-Entry Securities, the Federal Reserve Financial Services has just posted information on repo tracking and interim accounting cash adjustments. Federal Reserve Financial Services 6/21/02

  • Treasury and FRB Announce Plans for Redesigned Notes

    In keeping with their strategy of maintaining the security of Federal Reserve notes by enhancing the design of U.S. currency every seven to ten years, the Department of the Treasury's Bureau of Engraving and Printing (Bureau) and the Federal Reserve Board announced plans to release the next generation of redesigned notes, with improved security features to deter counterfeiting. FRB Press Release 6/21/02

  • FFIEC Updates the June 2002 Validation Criteria for the FFIEC031 and FFIEC041 Call Reports

    Validity Edits: PDF | Word - FINAL, revised June 11, 2002
    Quality & Intraseries Edits: PDF | Word - FINAL, revised June 7, 2002 6/21/02

  • FDIC Money Smart Curriculum Adopted By South Carolina Adult Education Program

    The FDIC and the South Carolina Department of Education's Workplace Resource Center (WRC) today announced the adoption of the FDIC's Money Smart financial education program as the financial literacy curriculum for use in South Carolina's statewide adult education system. FDIC:PR-69-2002 6/21/02

  • OTS Announces 81 CRA Exams Secheduled for 3rd Quarter 2002

    The schedule reflects OTS's implementation of Section 712 of the Gramm-Leach-Bliley Act, which extends the CRA examination cycle from approximately every two years to four or five years for institutions with aggregate assets of not more than $250 million and CRA examination ratings of “Satisfactory” or “Outstanding” respectively. OTS 02-30 6/21/02

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 28), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-67-2002 6/20/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on eight separate financial institutions are in circulation. It appears these checks may be circulating nationwide. FDIC:FIL-68-2002 6/20/02

  • OCC Issues Final Rule on Capital Equivalency Deposits

    The OCC is revising certain requirements regarding CED deposit arrangements to increase flexibility for, and reduce burden on, certain Federal branches and agencies, based on a supervisory assessment of the risks presented by the particular institution.
    67FR41619 (text) 6/19/02

  • FRB Seeking Nominations for Consumer Advisory Council

    The Council advises the Board 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 6/19/02

  • FRB Financial Services Makes Holiday District Announcement

    The Federal Reserve Banks will be closed on Thursday, July 4, for the Fourth of July holiday. Please refer to the instructions for information on your local office. Unless it is listed separately, all of the particular District's offices and branches will follow the same Cash schedule. Holiday District Announcement 6/19/02

  • Banking Industry Performance Remains Strong Despite Lingering Economic Weaknesses

    A report released in the FDIC's Regional Outlook describes recent signs of a consumer-led recovery in the U.S. economy, but cautions that banks remain exposed to lingering economic risks, notably in the area of subprime consumer lending. FDIC:PR-68-2002 6/19/02

  • FDIC Appoints 43 Executives as Part of Upcoming Reorganization

    The reorganization and the appointments, which were made through a competitive selection process, become effective June 30.
    "My vision for a reorganized, refocused, accountable and more proficient FDIC is taking shape," Chairman Powell said today. "With these selections, the FDIC now has in place the management structure and team to put a greater percentage of our resources on the line, where our most critical work gets done." FDIC:PR-67-2002 6/18/02

  • EFT Newsclips

    The Treasury Department's Financial mangement Service has published its Summer 2002 edition of EFT Newsclips. Among the articles we think are noteworthy are a report on the number of banks (nearly 600) who are participating in the Electronic Transfer Account ("ETA") program; beginning 1/1/04, Treasury checks will no longer have personal identification numbers (such as SSNs) on them; more than 100,000 businesses and individuals have signed up for the online EFTPS program; free marketing materials are available to promote EFTPS; the policy for government ACH reclamations has been clarified; and new SSA procedures are being implemented to quickly resolve erroneous reports from financial institutions of the death of Direct Deposit benefit recipients. EFT Newsclips6/18/02

  • OCC Issues Bulletin on Homeownership Counseling: Notice of Statutory Requirement

    This bulletin announces the renewal of a statute requiring all creditors to provide notice of the availability of homeownership counseling to certain first-time mortgage loan applicants and to certain homeowners who are delinquent on their home loans. OCC 2002-27 6/18/02

  • OCC Issues Bulletion on Prohibition Against Use of Interstate Branches Primarily for Deposit Production

    As reported earlier in the Federal Register, the OCC has issued a final rule regarding the prohibition against using interstate
    branches for purposes of "deposit production" found in section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act (Riegle-Neal Act). OCC 2002-28 6/18/02

  • OCC Releases CRA Evaluations For 38 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, 2002. OCC:NR 2002- 51 6/17/02

  • FDIC Issues Several Alerts on Fictitious Checks

    The FDIC has learned that several fictitious cashier's checks are in circulation. The following alerts have been issued: FDIC:FIL-60-2002, FDIC:FIL-61-2002, FDIC:FIL-65-2002 6/17/02

  • FDIC Issues Alert on Stolen Bank Note Security Paper

    The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of bank note security paper from the Denver County (Colorado) Vital Statistics Office. FDIC:FIL-62-2002 6/17/02

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 27), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-63-2002 6/17/02

  • FDIC Issues FIL on FinCEN Advisory

    The Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) published issues 28 through 32 of its FinCEN Advisory in April 2002. FDIC:FIL-64-2002 6/17/02

  • OCC Announces 2 New Enforcement Actions and 1 Termination

    The OCC announced 2 new enforcement actions taken against national banks and 1 termination of an existing enforcement action. OCC:NR 2002-52 6/17/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-66 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-66-2002 6/17/02

  • Settlement Agent Information

    Under the category of Net Settlement, the Federal Reserve Financial Services has just posted information for settlement agents, with operating hours, contacts and forms. Federal Reserve Financial Services 6/14/02

  • FDIC Chairman Announces Money Smart Alliance Program to Promote Financial Education in Underserved Communities

    Speaking before a meeting of the National Association of Affordable Housing Lenders, Powell stressed that financial education — particularly of those who are outside the financial mainstream — is a matter of critical importance both to regulators and the American people as a whole. FDIC:PR-66-2002 6/14/02

  • FFIEC Adds Forms and Call Report Edits

    The FFIEC has added the June 2002 FFIEC 031 Reporting Form and FFIEC 041 Reporting Form , updated the UBPR order form, and posted validation criteria for the FFIEC031 and FFIEC041 Call Reports. FFIEC 6/13/02

  • FDIC Publishes Quarterly Banking Profile - First Quarter 2002

    The Quarterly Banking Profile is a quarterly publication that provides the earliest comprehensive summary of financial results for all FDIC-insured commercial banks and savings institutions. This report card on industry status and performance includes written analyses, graphs, and statistical tables. 6/13/02

  • FDIC Minority Depository Institutions Program

    The FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. The new Policy Statement has been updated to reflect changes in certain regulations and to expand the FDIC's Minority Depository Institutions Program. Enhancements to the program include increased communication with Minority Depository Institutions, better coordination with trade associations that represent Minority Depository Institutions, defined roles of a national program coordinator and regional coordinators, and more opportunities for institutions to request technical assistance. 6/13/02

  • FFIEC Updates Reporting Forms

    The FFIEC has updated two Reporting Forms for June 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices. FFIEC 031, FFIEC 041 6/12/02

  • FFIEC Reports that the March 31, 2002 Uniform Bank Performance Report are Online

    The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release 6/12/02

  • FATF to Publish Annual Report and Report on Non-Cooperative Countries and Territories

    The Financial Action Task Force on Money Laundering (FATF), will issue its thirteenth annual report on its anti-money laundering and anti-terrorist financing activities as well as a new report updating its findings on the non-cooperative countries and territories in the international fight against money laundering. FATF Press Release 6/12/02

  • Chairman Details Progress Made in Implementing The Federal Trade Commission's New Privacy Agenda

    Remarks Presented at the Networked Economy Summit in Reston, Virginia
    Presenting remarks titled "Protecting Consumers' Privacy: Goals and Accomplishments" at the Networked Economy Summit in Reston, Virginia, Federal Trade Commission Chairman Timothy J. Muris said that the FTC has made significant strides in implementing the Privacy Agenda announced last October, and pledged continued diligence to ensure that consumers are protected as the "information economy" grows more complex. FTC Press Release 6/12/02

  • OCC Issues Bulletin on Reg Z Final Rule

    As earlier announced by the Federal Reserve, the revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. OCC 2002-26, Final Rule 6/11/02

  • OFAC

    Yesterdays OFAC change should not affect banks. It has simply issued License Application Guidelines for specific licenses for travel to Cuba to engage in educational exchanges not pursuant to a degree program. OFAC 6/11/02

  • OTS Issues Proposed Rule for Recordkeeping and Confirmation Requirements that Effect Securities Transactions

    The proposal affords savings association customers the same protections and disclosures provided to bank customers; ensures that examiners will be able to evaluate a savings association's compliance with securities laws and to assess whether savings associations effect securities transactions safely and soundly; and provides savings associations with formal guidance for effecting securities transactions. 67FR39886 (text) 6/11/02

  • OTS Proposes Standards for Thrift Broker-Dealer Activities Without SEC Registration

    The OTS is proposing standards for federal savings associations that may now perform certain broker-dealer activities, just like banks, without registering with the Securities and Exchange Commission. OTS 02-29 6/11/02

  • OCC Notes FinCEN's Country Updates

    The OCC has issued AL 2002-5 to advise banks of a revision in the list of countries detailed in a previous OCC Advisory Letter (AL 2002-2). These deal with identification of countries with serious deficiencies in their counter-money-launder systems, as previously identified by FinCEN advisories. OCC: AL 2002-5 6/10/02

  • FR-FMS Account Management Guide Revised

    The Federal Reserve Financial Management Service has revised its account management guide. It is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. Account Management Guide 6/10/02

  • FDIC Points to FATF Guidance

    The FDIC has published FIL-59-2002 to alert banks to guidance on detecting terrorist financing recently published by the Financial Action Task Force on Money Laundering (and previously noted on BOL). FDIC:FIL-59-2002 6/10/02

  • Exception Fax Forms

    The Federal Reserves Financial Services publishes ACH Return Item Exception Fax Form. 6/10/02

  • Virginia Woman Indicted in Scheme to Steal Keystone Assets

    FDIC Inspector General Gaston L. Gianni, Jr., has announced that Norma Faye Canipe of Virginia was indicted on June 5 in the Southern District of West Virginia, Charleston, West Virginia, in connection with a scheme to obtain property and other assets owned by Terry L. Church and her family. Church is the former Vice President of the failed First National Bank of Keystone, Keystone, West Virginia. FDIC:PR-65-2002 6/10/02

  • FedWire Security Services Enchanced Functionality

    The implementation of Repo Tracking and Interim Accounting cash adjustments will not begin in June 2002, as previously announced. However, participants may continue to test Interim Accounting and Repo Tracking in the Depository Institution Testing (DIT) environment. FedLine 6/10/02

  • Fed Announces FedImage Services

    The Federal Reserve announced FedImage Services, an all-new image service for financial institutions, recognizing the increasing role that image-based services are playing in the evolution of the U.S. payments system and the migration toward more electronic payments. FedImage Services 6/10/02

  • FDIC Imposes Civil Money Penalties Against Five Ohio Bankers

    The FDIC has issued civil money penalties totaling $17,000 against five directors and officers of The Monitor Bank, Big Prairie, Ohio. FDIC:PR-64-2002 6/7/02

  • OCC Speeches

    Mark A. Nishan, Chief of Staff, Office of the Comptroller of the Currency, Before a Bankers Outreach Meeting Minneapolis, Minnesota, NR 2002- 50 Remarks by John D. Hawke, Jr., Comptroller of the Currency, Before The Risk Management Association's Capital Management Conference Washington, D.C. , OCC: NR 2002- 49 6/7/02

  • HUD Notice Clarifies Applicability of Homeownership Counseling Requirement

    In Mortgagee Letter 2002-12, the Department of Housing and Urban Development describes the braod scope of the types of loans to which the homeownership counseling notices apply. Mortgagee Letter 2002-12 6/6/02

  • Agencies Amend Rule On Prohibition Against Using Interstate Branches Primarily for Deposit Production

    The Riegle-Neal Interstate Banking and Branching Efficiency Act prohibits any bank from establishing or acquiring a branch outside of its home state primarily for the purpose of deposit production. Section 106 of the Gramm-Leach-Bliley Act expands this prohibition to include any branch of a bank controlled by an out-of-state bank holding company. To conform their regulations to this statutory change, the agencies have amended their rules so that the prohibition against deposit production offices also applies to any bank or branch of a bank controlled by an out-of-state bank holding company. Joint Final Rule FRB Press Release, OCC:NR 2002- 47, FDIC-PR-63-2002, FDIC:FIL-58-2002 67FR38844 (pdf) 67FR38844 (txt) 6/6/02

  • OCC Reports Bank Trading Revenues Over $3 Billion

    Earnings from cash instruments and derivatives trading activities at U.S. commercial banks grew to $3.1 billion in the first quarter 2002, an increase of $492 million from the previous quarter. The notional amount of derivatives grew by $946 billion this quarter to $46.3 trillion. OCC:NR 2002- 48, Bank Derivatives Report 6/6/02

  • 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 2002. FDIC:PR-62-2002 6/6/02

  • Call and Thrift Financial Reports

    The March 31, 2002, reports are now posted online. 6/5/02

  • FDIC Consumer News

    Tips on banking long distance, saving for retirement and tracing old bank accounts are featured in the latest edition of Consumer News. 6/5/02

  • Makes Public April Enforcement Actions; No Administrative Hearings Scheduled

    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-61-2002 6/5/02

  • FDIC Announces Record Banking Industry Earnings; Returns at Large Banks Climb Most

    Commercial banks had record earnings of $21.7 billion in the first quarter, surpassing the previous quarterly record by 9.6 percent, the Federal Deposit Insurance Corporation reported today. The industry's return on assets (ROA), a basic yardstick of earnings performance, rose to 1.33 percent, the third-highest ever. FDIC:PR-60-2002 6/5/02

  • CAC Schedules Next Meeting

    The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, June 27. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. FRB Press Release 6/4/02

  • OCC Issues Bulletin on Independent Trust Bank Assessment

    Pursuant to newly revised 12 CFR 8.6(c), the independent trust bank assessment is based on "Fiduciary and Related
    Assets" as reported on Schedule RC-T of FFIEC Forms 031 and 041. OCC 2002-25 6/4/02

  • FDIC Issues Preliminary Bank Earnings Report

    Wider net interest margins at large banks, combined with slow growth in noninterest expenses, helped propel commercial bank profits to a record $21.7 billion in the first quarter. Bank Earnings Report, FYI 6/4/02

  • FinCEN Holds Law Enforcement Seminar on Informal Value Transfer Systems

    A seminar to discuss issues surrounding informal value transfer systems, to include hawala, was held May 29thy at the FinCEN. The seminar was attended by over 50 representatives from the law enforcement community. FinCEN News Release 6/4/02

  • Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

    FinCEN publishes the Due Diligence Anti-Money Laundering Programs for Certain Foreign Accounts Implementing Section 312 of the USA PATRIOT ACT. This was earlier announced on BOL. Proposed Rule 6/4/02

  • "Touring the Board" added to the FRB Web Site

    The site provides information about visiting the Federal Reserve in person and includes a "virtual tour" offering photos of the Board's buildings and art collection, as well as an architectural history of the Board's Eccles Building. FRB Press Release 6/4/02

  • FFIEC Releases UBPR Schedule

    The FFIEC has announced that UBPR's will be available online 30 days after an institution's call report is filed. For the call reports which were due 4/30/02, UBPRs are available online beginning June 5. FFIEC Press Release 6/3/02

  • OFAC Lists Changes

    OFAC has added new entities to its list, removed one entity, and revised the entry for another. BOL OFAC PAGE 6/3/02

  • FATF Releases Public Consultation Paper on the Review of the Forty Recommendations

    The FATF is consulting all interested parties during its review of the Forty Recommendations on money laundering – the global anti-money laundering standard – to ensure that the Recommendations adequately address the changes in money laundering
    techniques and trends, new international developments, and other factors. FATF Press Release 6/3/02

  • 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 2002. FDIC:PR-59-2002 6/3/02

  • OCC Issues Final Rule on Assessment of Fees

    As earlier published in the Federal Register and reported by BOL, the final rule updates section 8.6 to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form
    currently referenced in section 8.6(c). OCC: 2002-24 6/3/02

  • TO ACCESS PRIOR TOP STORIES

    To access previous Top Stories (such as the ones from May, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

04/30/2002

Top Stories for May 2002

  • Unfair or Deceptive Acts or Practices: Applicability of the Federal Trade Commission Act

    The federal banking agencies are legally authorized to use enforcement powers under section 8 of the Federal Deposit Insurance Act against violations of this prohibition. FDIC:FIL-57-2002, FRB Press Release 5/31/02

  • Financial Transparency and Regulatory Policy

    Financial transparency is of vital importance to market participants and regulators alike. The FDIC's mission to promote public confidence in the U.S. banking system gives it a shared responsibility for defining the rules of the road in the financial marketplace. To that end, the FDIC is hosting a June 4 symposium entitled Enhancing Financial Transparency where the nation's leading experts from the private and public sectors will address the issue from the perspective of financial analysis, accounting standards, and regulatory policy. FYI 5/31/02

  • OCC Issues Third Quarter 2002 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the third quarter of 2002. OCC:NR 2002- 46 5/31/02

  • FRB Approves proposal of JPMorgan Chase Bank

    The Federal Reserve Board announced its approval of the notice by JPMorgan Chase Bank, New York, New York, to establish a branch at the Newport Center, 575 Washington Boulevard, Jersey City, New Jersey. FRB Press Release 5/31/02

  • OFAC List Changes

    OFAC has made a change but it simply consists of an update to its list of authorized service providers under the Cuban Assets Control Regulations. BOL OFAC Page 5/30/02

  • FinCEN Launches E-Filing System

    FinCEN announced that it has begun its pilot testing of the Patriot Act Communications System (PACS).PACS is designed to allow participating financial institutions to quickly and securely file Bank Secrecy Act (BSA)reports over the Internet. FinCEN News Release 5/30/02

  • OCC Issues Final Rule on Fees Assessment

    The OCC is amending its regulation that addresses assessments for independent trust banks. The final rule updates the regulation to reference the appropriate portion of new forms issued by the Federal Financial Institutions Examination Council (FFIEC), which replace the FFIEC form currently referenced in the regulation. 67FR37664 (text), 67FR37664 5/30/02

  • OTS Reports Record Quarterly Earnings, Profitability for Thrift Industry

    The OTS reported record thrift industry quarterly earnings of $3 billion for the first quarter of 2002. OTS 02-27 5/30/02

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 26), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-55-2002 5/30/02

  • Summary of Deposits Survey for June 30, 2002

    The annual Summary of Deposits (SOD) survey and instructions for the period ending June 30, 2002, will be mailed on July 8 to institutions with more than a main office facility. FDIC:FIL-56-2002 5/30/02

  • Mississippi Housing Initiative Adopts FDIC "Money Smart" Program

    The FDIC and the Mississippi Housing Initiative (MHI) announced the adoption of the FDIC's "Money Smart" financial education program to supplement the current homeownership curriculum used by MHI's Mississippi Home Buyer Education Center (MHEC) Program. FDIC:PR-58-2002 5/30/02

  • Court Shuts down Cyberscam Permanently

    A U.S. District Court has ordered the perpetrator of an Internet scheme to halt his illegal practices. The defendant employed more than 5,500 copycat Web addresses to divert surfers from their intended Internet destinations to one of his sites, and hold them captive while he pelted their screens with a barrage of adult-oriented ads. FTC Press Release Related BOL Article 5/29/02

  • FDIC Celebrates National NeighborWorks® Week

    June 1 - 8: The FDIC, a Neighborhood Reinvestment Corporation member, celebrates a week of neighborhood change. National NeighborWorks® Week 5/29/02

  • Interagency Questions and Answers on the Capital Treatment of Recourse, Direct Credit Substitutes, and Residual Interests in Asset Securitizations

    The document clarifies several issues arising from the agencies' final rule on the capital treatment of these exposures. FDIC:FIL-54-2002 , OCC 2002-22, OTS CEO Ltr 162, Questions & Answers 5/28/02

  • FRB Issues Proposed Rule to Restructuring Credit Programs

    This proposed restructuring of Federal Reserve credit programs is designed to improve the functioning of the discount window and does not represent a change in the stance of monetary policy. The proposed rule also would reorganize and streamline existing provisions of Regulation A. 67FR36544 5/28/02

  • Treasury Department Issues Proposed Regulation Implementing Section 312 of the USA PATRIOT Act

    The Treasury Department issued a proposed rule implementing Section 312 of the USA PATRIOT Act. Section 312 requires certain U.S. financial institutions to take prescribed anti-money laundering measures with respect to correspondent and private banking accounts that they establish or maintain for non-U.S. persons. Treasury:PO-3125 5/24/02

  • Interagency Advisory on the Unsafe and Unsound Use of Covenants Tied to Supervisory Actions in Securitization Documents

    This advisory alerts both bankers and examiners to the safety and soundness implications of covenants associated with supervisory actions in securitization documents. FDIC:FIL-53-2002, OCC 2002-21, OTS:CEO Ltr 161 5/24/02

  • Interagency Guidance on Implicit Recourse in Asset Securitizations

    The guidance highlights the agencies' fundamental concern that implicit recourse may expose a bank's earnings and capital to potential losses. The guidance sets forth a range of supervisory actions that may be taken against a bank that provides implicit support to its securitizations. FDIC:FIL-52-2002, OCC 2002-20, OTS:CEO Ltr 163 5/24/02

  • OCC Cautions National Banks on "Yield Chasing"

    The OCC issued guidance alerting national banks to the potential risk to future earnings and capital that arises when banks engage in "yield chasing" - taking on higher levels of credit, interest rate and liquidity risk to boost returns on their investment portfolios. OCC:NR 2002- 45 5/24/02

  • 2003 FFIEC Examiner Education Course Catalogue

    5/24/02

  • FDIC Publishes Bank Trends

    FYI 5/24/02

  • FTC Issues Information Safeguards Rule

    The FTC has published in the federal register the final rule governing the safeguarding of customer records and information for the financial institutions subject to its jurisdiction. This was previously announced on BOL. 67FR36483 (text) 67FR36483 (pdf) 5/24/02

  • Account Management Guide

    This Guide is designed as a practical reference to make it easier for financial institutions to manage reserve accounts. The Guide assumes a familiarity with accounting practice and provides a detailed discussion of each major aspect of reserve management, together with descriptions and samples of the reports and other information tools available from the Federal Reserve System. Account Management Guide 5/23/02

  • FFIEC Internet Reporting System

    The system now offers the following aggregate reports: List of Banks in Peer Group, Peer Group Data Report, Peer Group Distribution Report, State Average Report, and State Average Distribution Report. Internet Reporting System 5/23/02

  • Preliminary Bank Earnings Report

    At a June 3 press briefing, the FDIC Chairman will summarize the Preliminary Bank Earnings Report for the first quarter 2001. This Report is the earliest comprehensive analysis of the commercial banking industry's performance, based on the quarterly data that banks file with the FDIC. 5/23/02

  • 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-56-2002 5/23/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-51-2002 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-51-2002 5/23/02

  • FDIC Issues Alert/Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Yukon National Bank, Yukon, Oklahoma, are in circulation. The bank's name is misspelled as "Yunkon National Bank" in the lower left corner of the counterfeit instruments, and the check number, routing number and account number appear to be typewritten and not MICR encoded. FDIC:FIL-50-2002 5/23/02

  • FDIC Issues Special Alert/Counterfeit South Carolina Driver's Licenses and Identification Cards

    The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of equipment and supplies used to produce driver's licenses and identification cards. The equipment and supplies were stolen from two offices of the South Carolina Department of Public Safety on March 12, 2002, and March 25, 2002. The equipment has been recovered and the suspect has been arrested. However, it is believed that a number of counterfeit South Carolina driver's licenses and identification cards were produced. FDIC:FIL-49-2002 5/23/02

  • Chairman Powell's Statement on Passage of Deposit Insurance Reform Legislation By House of Representatives

    FDIC:PR-57-2002 5/23/02

  • FDIC and White House Office Sign Agreement Promoting Financial Education in U.S. Asian Communities

    Under an agreement the AAPI will support the FDIC's "Money Smart" financial education program and encourage its network of organizations to implement the curriculum in Asian communities. FDIC:PR-55-2002 5/22/02

  • "Prime Bank" and Other Financial Instrument Fraud Schemes

    The FRB alerted financial institutions and the public to the continued proliferation of fraudulent schemes involving financial instruments. FRB Press Release
    5/21/02

  • FDIC Lines Up Policy Leaders for June 4 Symposium on Enhancing Financial Transparency

    Lawrence B. Lindsey, Assistant to the President for Economic Policy; Sen. Jon Corzine, (D.-N.J.); Rep. Michael Oxley (R-OH), Chairman of the House Financial Services Committee; and Paul A. Volcker, former Chairman of the Federal Reserve Board, will share their perspectives on financial transparency at a one-day program sponsored by the Federal Deposit Insurance Corporation (FDIC) in Washington, D.C., on June 4, 2002. FDIC:PR-54-2002 5/21/02

  • Interagency Advisory on the Regulatory Capital Treatment of Accrued Interest Receivable Related to Credit Card Securitizations

    The agencies are issuing this advisory to clarify the appropriate risk-based capital treatment for banking organizations (institutions) that securitize credit card receivables and record an on-balance sheet asset commonly referred to as an Accrued Interest Receivable. OCC 2002-17, FDIC:FIL-48-2002, Interagency Advisory on AIR 5/20/02

  • FRB Issues Proposal to revise Federal Reserve discount window programs

    The FRB requested public comment on a proposal to revise the Federal Reserve's discount window programs, which provide credit to help depository institutions meet temporary liquidity needs. Adoption of the proposal would not entail a change in the stance of monetary policy. The Federal Open Market Committee's target for the federal funds rate would not change as a result of this proposal and the level of market rates more generally would be unaffected. FRB Press Release 5/20/02

  • OCC Announces New Electronic Interpretations and Actions

    Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 5/20/02

  • OCC Transmits the FATF Terrorist Financing Guide

    As earlier reported on BOL, the Financial Action Task Force on Money Laundering has published Guidance for Financial Institutions in Detecting Terrorist Financing. OCC:AL 2002-4 5/20/02

  • FTC Finally Issues Information Safeguards Rule

    The Federal Trade Commission has issued a final rule governing the safeguarding of customer records and information for the financial institutions subject to its jurisdiction. The Rule will be published in the Federal Register shortly. The Rule implements the safeguards provisions of the Gramm-Leach-Bliley Act (GLB Act). FTC Press Release , FTC Business Alert, FTC Final Rule 5/17/02

  • FTC to Host Public Workshop on Consumer Information Security

    The FTC will host a two-day public workshop to explore issues related to the security of consumers' computers and the personal information stored in them or in company databases. FTC Press Release 5/17/02

  • Regulators Issue Corrected Final Rule for Risk-Based Capital

    The final rule amended the Agencies' risk-based capital standards for banks, bank holding companies, and savings associations with regard to the risk weighting of claims on, and claims guaranteed by, qualifying securities firms. This document clarifies the effective date of the rule, corrects errors made in the Supplementary Information section and in the Board's Regulation Y, and makes technical changes to the footnote numbers in the instructions to and text of the FDIC's Part 325. 67FR34991 (text), 67FR34991 (pdf) 5/17/02

  • OCC Issues Final Rule on Electronic Banking

    The OCC published a final rule that will facilitate the use of electronic technologies by national banks, consistent with safety and soundness. OCC:NR 2002- 44, 67FR34992 (text), 67FR34992 (pdf), OCC 2002-23 5/17/02

  • Consumer's Guide to Direct Payment

    A new brochure available from the Federal Reserve Financial Services can help you answer questions a consumer may have about direct deposit. Consumer's Guide to Direct Deposit, Press Release 5/17/02

  • FRB Publishes Written Agreement with Allied Irish Banks and Allfirst Financial

    The Federal Reserve Board, the Maryland Commissioner of Financial Regulation, and the Central Bank of Ireland jointly announced the execution of a Written Agreement by and among Allied Irish Banks, p.l.c., Dublin, Ireland, Allfirst Financial Inc., Baltimore, Maryland, and Allfirst Bank, Baltimore, Maryland. FRB Press Release 5/17/02

  • FDIC Issues Alert on Information About Fraudulent Bonus Checks For Non-Existent Jobs

    On March 28, 2002, the FDIC issued an alert about individuals and banks being victimized by a scheme involving online job applications This is to inform you that the FDIC has received responses to that announcement indicating that more individuals and banks are being victimized by the same scheme, and that checks appearing to be drawn on at least one other bank also are being used. FDIC:FIL-47-2002 5/16/02

  • OCC Issues Risk Management Guidance for Banks that Use Foreign-Based Third-Party Service Providers

    The guidance outlines risk management principles to facilitate sound use of foreign-based providers and to ensure that national banks manage these relationships in a safe and sound manner. It also addresses the need for a national bank to establish such relationships in a way that does not diminish the ability of the OCC to access, in a timely manner, data or information needed to effectively supervise the bank's operations. OCC:NR 2002- 43, OCC 2002-16 5/16/02

  • OFAC List Changes

    OFAC has made a change but it simply consists of an update to its list of authorized service providers under the Cuban Assets Control Regulations. Another change updates "a.k.a." information that has been added to OFAC's SDN list for a number of SDGTs. BOL OFAC Page 5/16/02

  • FDIC Publishes List of Ten Largest Thrift Companies

    The Ten Largest Thrift Companies highlights the performance of the largest thrift companies in the most recently completed quarter. The report is based on earning announcements and other publicly available information and generally is published within 45 days of the completion of a calendar quarter. 5/16/02

  • NCUA Board Releases Strategic Plan 2003-2008 As the Agency Plans for the Future

    The plan builds on the foundation laid in NCUA Strategic Plan 2000-2005, which reflected a need to focus more on positioning NCUA as more forward-looking with a vision that is more responsive to the rapidly changing financial marketplace. NCUA Press Release 5/16/02

  • OCC Releases CRA Evaluations For 25 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of April 15 through May 14, 2002. OCC:NR 2002-41 5/16/02

  • OCC Announces 15 New Enforcement Actions and 1 Terminations

    The OCC announced 15 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 2002-42 5/16/02

  • FDIC Issues Interim Rule on Contractor Conflicts of Interest

    This rule establishes standards for independent contractors governing contracting prohibitions, conflicts of interest, ethical responsibilities, confidential information, and reportable information. 67FR34591 5/15/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-46 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-46-2002 5/15/02

  • FDIC Issues Final Rule on Payment of Post-insolvency Interest In Receiverships With Surplus
    Funds

    The final rule establishes a single uniform interest rate, calculation method, and payment priority for post-insolvency interest.
    67FR34385 (text) 5/14/02

  • IRS Warns of Fake W-8 BEN Forms & More

    The IRS has issued a warning regarding the use by identity thieves of bogus W-8BEN forms and totally fictitious W-888 and W-9095 forms to gain information from bank customers. The thieves send out correspondence that purports to be from a bank. Warnings had previously been issued by some of the bank regulators on the W-9095 form scam and some ficitious fraud questionnaires. IRS:IR-2002-55 5/10/02

  • FRB and SEC Publish White Paper on Potential Structural Change in the Settlement of Government Securities

    The paper, to be published May 13 in the Federal Register, was developed with a goal of identifying issues and questions that need to be further explored. In releasing the paper, the staffs of the agencies emphasized they have not concluded that any of the approaches discussed represent an improvement over current arrangements or that structural change is necessary. FRB Press Release 5/10/02

  • Anthrax Tested at the FRB

    Mail processed in a secure facility outside the Federal Reserve Board buildings has tested positive for traces of anthrax DNA. FRB Press Release

    5/10/02

  • Comptroller Welcomes Growing Consensus that Fee Disparity Problem Must Be Fixed

    Basic flaws in the allocation of bank supervision costs are a threat to the independence of bank supervisors and to
    the dual banking system, Comptroller of the Currency John D. Hawke Jr. said. OCC:NR 2002-40 5/10/02

  • OTS Adjusts Capital Requirements For 1-4 Family Mortgages

    The OTS announced that it is adjusting its capital requirements to bring them in line with the other federal banking agencies. Under a final rule, a one- to four-family residential first mortgage loan will qualify for 50 percent risk weight capital treatment if the loan is underwritten in accordance with prudent underwriting standards, including standards in the Interagency Guidelines for Real Estate Lending. 67FR31722 (text) 67FR31722 (pdf) OTS 02-26 5/10/02

  • FFIEC 001 and FFIEC 006 Reporting Forms have been discontinued

    FFIEC 001 - Annual Report of Trust Assets | FFIEC 006 - Annual Report of International Fiduciary Activities 5/10/02

  • Delay of Reg C Amendments Officially Published

    It's official. The FRB's final rule that postpones the effective date of the recent amendments to Regulation C (HMDA) from January 1, 2003, to January 1, 2004 has now been published in the Federal Register. (The FRB's informal notice of the delay was announced last week on BankersOnline.com.) 67FR30771 (text) 67FR30771 (pdf) 5/9/02

  • OCC Issues Alert on Fictitious Bank Correspondence and Fraud Reporting Forms

    Some of your customers may be the unwitting subjects of another recently discovered fraud scheme that uses fictitious bank forms and fraudulent bank correspondence. The OCC has provided samples of fictitious documents (addressed to a bank customer) that purport to be from the fraud control department of the customer's bank. OCC:Alert 2002-6

    5/9/02

  • Timothy W. Long Appointed Senior Deputy Comptroller for Mid-Size/Community Bank Supervision

    Comptroller of the Currency John D. Hawke, Jr. announced the appointment of Timothy W. Long as the agency's new Senior Deputy Comptroller for Mid-Size/Community Bank Supervision. In his new position, he will have responsibility for the supervision of the vast majority of national banks and oversee half the OCC workforce. OCC:NR 2002-39 5/9/02

  • FDIC Enters into Removal and Prohibition Order and Civil Money Penalty Against an Illinois Banker

    The FDIC has issued a removal and prohibition order and imposed a civil money penalty of $25,000 against John C. Bollman, formerly of the Lena State Bank, Lena, Illinois. Mr. Bollman was the former President and Chairman of the Board of the bank. FDIC:PR-53-2002 5/9/02

  • FDIC Reports First Quarter Net Income Rises Sharply, Sets Record at 25 Largest Banking Companies

    Amid signs of resurgence in the U.S. economy, earnings at the 25 largest banking companies grew significantly in the first quarter of 2002 - up $4.8 billion from the fourth quarter of 2001. Net income for the first quarter totaled $16.2 billion, surpassing the $15.8 billion mark set in the first quarter of 2000. FDIC:PR-52-2002 FYI 5/9/02

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published an issue of its "Warning Notice" (Issues No. 23, 24 and 25), which contain the names of entities recently brought to OSFI's attention through inquiries or complaints. FDIC:FIL-44-2002 5/9/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Cambridge Bank, Lake Zurich, Illinois, are in circulation.
    FDIC:FIL-45-2002 5/9/02

  • FDIC Issues FIL on Homeownership Counseling Notification Requirements

    The FDIC is advising banks that the VA/FHA Appropriations Act, signed into law on November 26, 2001, reinstates a requirement for creditors to notify delinquent mortgage borrowers of the availability of homeownership counseling. FDIC:FIL-43-2002 5/8/02

  • FFIEC Updates Forms

    The FFIEC has updated the following forms: FFIEC 002, FFIEC 002s, FFIEC 019. 5/8/02

  • FDIC Reports Year-End 2001 and First Quarter 2002 Financial Results for Its Insurance Funds

    The FDIC announced that the Bank Insurance Fund (BIF) reported a comprehensive loss (net loss plus current period unrealized gains/losses on available-for-sale securities) of $536 million for 2001, compared to income of $1.6 billion for the same period last year. FDIC:PR-51-2002 5/8/02

  • FOMC Leaves Interest Rates Unchanged

    The FOMC decided to keep its target for the federal funds rate unchanged at 1 3/4 percent. Press Release 5/8/02

  • OCC Alerts Banks of Colorado stolen birth and death certificates

    On April 9, the City and County of Denver Vital Records Office was robbed of over 2,300 sheets of preprinted security paper that can be used to create birth and death certificates. In addition, the electronic seal machine that produces an embossed seal of the City and County of Denver was stolen. OCC:Alert 2002-5 5/8/02

  • IRS Warns of Scheme to Steal Identity and Financial Data

    The IRS warned of a fraudulent scheme currently circulating that uses fictitious bank correspondence and IRS forms in an attempt to trick taxpayers into disclosing their personal and banking data. The information fraudulently obtained is then used to steal the taxpayer's identity and bank account deposits. Release No: IR-2002-55 5/6/02

  • FTC Submit Second Annual Report to Congress on the GLBA

    In accordance with the reporting provisions of the Gramm-Leach-Bliley Act, the Commission has submitted its second annual report to Congress on the number and disposition of enforcement actions taken pursuant to Section 521 of the Act. Since submission of the first report, the FTC has filed complaints against three defendants allegedly engaged in, or soliciting others to engage in, "pretexting" - obtaining a consumer's financial information from financial institutions under false pretenses. FTC Release 5/6/02

  • Matz Urges Credit Unions to Look to the Future

    NCUA Board Member Deborah Matz urged the Government Affairs Conference of the Michigan Credit Union League to be prepared. Meeting with the Michigan League is part of Matz’ national tour to familiarize herself with the needs of credit unions and learn how NCUA can further serve in the credit union spirit of people helping people. NCUA Press Release 5/6/02

  • FRB Postpones Effective Date for Recent Reg C Amendments BIG NEWS!

    The FRB approved a final rule that postpones the effective date of the recent amendments to Regulation C (Home Mortgage Disclosure Act) from January 1, 2003, to January 1, 2004. The FRB is, however, adopting an interim amendment to Regulation C, effective January 1, 2003, mandating the use of 2000 census data in HMDA reporting. FRB Press Release, Notice 67FR30771 (text) 5/3/02

  • Treasury Publishes USA PATRIOT Act Report to Congress

    The Treasury Department has published a number of reports to Congress that it was required to make under Sections 357 and 361 of the USA PATRIOT Act. 5/3/02

  • FATF Releases Terrorist Financing Guide

    The Financial Action Task Force on Money Laundering has published Guidance for Financial Institutions in Detecting Terrorist Financing. 5/3/02

  • FedACH System Quality and Volume Statistics Published

    The Federal Reserve Financial Services published a chart that provides performance measures for FedACHSM for 2002 (through first quarter). 5/3/02

  • FDIC Report Risks in Banks' Underwriting Practices, Loan Portfolios and Loan Administration Continue to Increase Slightly

    FDIC examiners continue to report slight increases in risks in FDIC-supervised banks' underwriting practices, loan portfolios and in the way loans are administered, according to the agency's latest Report on Underwriting Practices, which covers the six months ending March 31, 2002. FDIC:PR-49-2002 5/3/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on the Foster Bank, Chicago, Illinois, are in circulation. FDIC:FIL-42-2002 5/3/02

  • FDIC Issues Alert on Stolen Birth Certificate and Death Certificate Forms

    The FBI has asked the FDIC to alert all FDIC-supervised banks to the theft of official documents from the Denver County (Colorado) Vital Statistics Office on April 9, 2002. FDIC:FIL-41-2002 5/3/02

  • BOL Adds Special PATRIOT Act Section

    BankersOnline has added a new section to the site to bring together articles, resources, tools and links on matters relating to the USA PATRIOT Act, anti-terrorism, anti-money laundering, customer identification, OFAC, Control list issues, and similar subjects. NEW PATRIOT/AML Section 5/2/02

  • FDIC Posts Notice of Agency Meeting

    The FDIC Board of Directors will meet in open session on May 7, 2002. Notice 5/2/02

  • Forms Used by the FDIC

    Forms and instructions used in connection with applications, reports, and other submittals used by the FDIC. 5/2/02

  • FDIC Seeks Comment on Information Quality Guidelines

    The FDIC is requesting comment on in its Information Quality Guidelines, which relate to ensuring and maximizing the quality, objectivity, utility, and integrity of information disseminated to the public by the FDIC. Electronic Public Comment 5/2/02

  • FIL about OFAC Change

    The FDIC has published FIL-40 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-40-2002 5/1/02

  • OTS Signs Information Sharing Pact With Oregon Insurance Regulator

    Oregon became the 45th state during the last two years to sign an information sharing agreement between state insurance regulators and the OTS, and the National Association of Insurance Commissioners (NAIC) announced. OTS 02-24 5/1/02

  • OTS Releases March Enforcement Statistics

    The OTS reported that it issued six enforcement orders to three individuals and three institutions during March 2002. OTS also terminated two orders previously issued to two institutions. OTS 02-25 5/1/02

03/31/2002

Top Stories for April 2002

  • Treasury Report to Congress on FBAR Reporting

    As required by Section 361(b) of the USA PATRIOT Act, the Treasury Department filed a report with Congress about FBAR reporting. The FBAR is a report filed with the Secretary stating that the person filing has a financial interest in, or signature authority over, financial accounts in a foreign country with an aggregate value exceeding $10,000 at any time during the calendar year. Treasury News 4/29/02

  • FTC Members Express Views about Online Personal Privacy Act

    Members of the Federal Trade Commission have submitted letters to regarding their views on the Online Personal Privacy Act, at the request of Senator John McCain. FTC 4/29/02

  • OCC Issues Alert on Identity Theft and Embezzlement in connection with Outside Parties

    The OCC has been advised of fraud schemes involving organized gangs and newly hired bank tellers. OCC:Alert 2002-4 4/26/02

  • FDIC Issues Alert on Bank Investment Securities and Custodial Accounts Held at Securities Broker-Dealers

    The FDIC is alerting you to concerns it has identified regarding bank custodial relationships with failed broker-dealers. These concerns have arisen following the failure of a large regional securities broker-dealer and its liquidation by the Securities Investor Protection Corporation (SIPC). FDIC:FIL-38-2002 4/26/02

  • OTS Releases February Enforcement Statistics

    The OTS reported that it issued four enforcement orders to two individuals and two institutions during the month of February, 2002. OTS also terminated four orders previously issued to three institutions. OTS 02-23 4/26/02

  • FDIC Report Discusses Challenges Bank Mortgage Lenders May Face If Interest Rates Rise

    The profitability of the nation's residential mortgage lending specialists has become more exposed to the effects of a rising interest rate scenario that would compress net interest margins and suppress noninterest revenues associated with mortgage production and sales, according to a report released by the FDIC. FDIC:PR-47-2002 4/26/02

  • OTS Proposes Rule on a Preemption of the Alternative Mortgage Transaction Parity Act

    OTS proposes to revise its rule identifying the OTS regulations that apply to creditors under the Parity Act. OTS would no longer identify its regulations on prepayment and late charges for state housing creditors. 67FR20468 (text) 4/26/02

  • OCC Proposes to Amend Assessments for Independent Trust Banks

    The proposal would update the regulation to reference the appropriate portion of new forms issued by the FFIEC which replace the FFIEC form currently referenced in the regulation. OCC 2002-15, 67FR20466 (text), 67FR20466 (pdf) 4/26/02

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

    The OCC has advised the FDIC that the following entity may be conducting banking business in the United States without authorization: Chase Trust Bank, 2706 Wisconsin Avenue, Washington, DC FDIC:FIL-37-2002 4/25/02

  • FDIC Seeks Ideas on Reducing Burden on Banks and the Public, While Improving the FDIC's Efficiency

    One of the top priorities as Chairman of the Federal Deposit Insurance Corporation is to ensure that the FDIC is as efficient as it can be in its roles as supervisor and insurer of financial institutions. He is particularly interested in ways the FDIC can reduce burden on financial institutions and the public. FDIC:FIL-36-2002 4/25/02

  • W3C Approves P3P

    The World Wide Web Consortium (W3C) has formally issued the Platform for Privacy Preferences (P3P) 1.0 as a W3C Recommendation, representing cross-industry agreement on an XML-based language for expressing Web site privacy policies. P3P is designed to help individuals make informed choices by providing a standard, simple, automated way for users to gain more control over the use of personal information on Web sites they visit. Financial institutions will need to consider the P3P implications for their own Web sites. Press Release 4/24/02

  • Agencies Outline Risks of Parallel-Owned Banking Organizations

    This guidance describes various risks that may be increased because of the structure of parallel-owned banking organizations, including engaging in transactions that prefer the foreign bank member of the group over the U.S. depository institution. The agencies will address these risks by coordinating their supervision of the U.S. operations of parallel-owned banking organizations. Enhanced communication and cooperation with foreign bank supervisors is also important to this process. FRB Press Release, OCC:NR 2002-37, FDIC-PR-46-2002, Joint Release 4/24/02

  • Comptroller Hawke Urges Senate to End Inequitable Treatment of National Banks

    Comptroller of the Currency John D. Hawke, Jr. told a Senate panel that Congress should address the unfair disparity in the fees paid by national and state chartered banks as part of any legislation on deposit insurance reform. OCC:NR 2002-38 4/24/02

  • Treasury Department's USA PATRIOT Act Developments

    There are several new developments in the Treasury Department's implementation of the USA PATRIOT Act.

    • No new AML program regs for banks, thrifts and credit unions!
    • New regulations expand the requirement for an anti-money laundering program to new industries: mutual funds; operators of credit card systems; money services businesses, such as money transfer companies and check cashers; securities brokers and dealers registered with the Securities and Exchange Commission; and futures commission merchants and accompanying introducing brokers registered with the Commodity Futures Trading Commission.
    • New regulations are now available for those industries, all of whom have ninety days to develop AML programs (except broker dealers and futures commissions merchants).
    • The Treasury Department will study additional sectors over the next six months, such as loan or finance companies, pawnbrokers, insurance companies, travel agencies, dealers in precious metals, stones or jewels, telegraph companies, persons engaged in real estate closings and settlements, and others, in order to develop regulations applicable to them.
    • Additional working groups devoted to each of these industry sectors have been formed and will be responsible for drafting regulations.

    Click here to learn more about these developments and access the new regulations. 4/24/02

  • FTC Extends COPPA Rule

    The FTC issued a final amendment to the Children’s Online Privacy Protection Rule to extend, until April 21, 2005, the time period during which website operators may use an e-mail message from the parent, coupled with additional steps, to obtain verifiable parental consent for the collection of personal information from children for internal use by the website operator. FTC Notice 4/23/02

  • FTC Gets Tough on COPPA

    The Federal Trade Commission has announced a number of new initiatives under the Children's Online Privacy Protection Act, including a new enforcement action involving a $35,000 penalty, release of an FTC COPPA compliance survey, and warning letters to more than 50 children's sites. FTC Press Release 4/23/02

  • IRS Issues Rule on Required Distributions From Retirement Plans

    IRS has issued both final and temporary regulations relating to required minimum distributions from IRAs, qualified plans, individual retirement plans, 457, and section 403(b) annuity contracts, custodial accounts, and retirement income accounts. The new distribution rules become effective January 1, 2003. 67FR18987 (text) 67FR18987 (pdf) 4/23/02

  • OTS Proposes Revisions to Parity Act Regulations

    The OTS announced that it is proposing to remove prepayment and late fee rules from the list of OTS regulations that preempt state law under the Alternative Mortgage Transaction Parity Act. OTS 02-21 4/23/02

  • OCC Announces New Electronic Interpretations and Actions

    Interpretive Letters and No-Objection Letters reflect the views of the Comptroller's legal staff. Corporate Decisions, CRA Decisions and Conditional Approvals are from the office of Bank Organization and Structure. Electronic Interpretations and Actions 4/22/02

  • Minority Depository Institutions Program

    Minority Depository Institutions often play a unique role in promoting the economic viability of under-served communities. The FDIC has historically taken steps to preserve and encourage minority ownership of insured financial institutions. On April 9, 2002, the FDIC Board adopted a new Policy Statement Regarding Minority Depository Institutions. Minority Depository Institutions Program, FDIC: FIL-34-2002 4/22/02

  • Terrorist Threat Against Banks

    Warning directly affects banks in Virginia, Maryland, Delaware, Pennsylvania, New York, New Jersey, Connecticut, Massachusetts, Rhode Island, Maine, Vermont, New Hampshire and the District of Columbia.

  • NCUA Issues Final Rule Repealing CAP Proposal

    Statement of NCUA Chairman Dennis Dollar: "From my first NCUA Board meeting in October 1997 when we put the initial ‘Community Service Amendments’ out for public comment through the first ‘Community Action Plan’ or ‘CAP’ comment period in 2000 and now through this - the second - official comment period on CAP which ended in February 2002, the commenters have spoken clearly. Statement of NCUA Board Member JoAnn Johnson, Statement of Board Member Deborah Matz 4/19/02

  • FDIC Reminds Bankers of the Responsibilities and Activities of FDIC’s Community Affairs Program

    The FDIC established a Community Affairs Program (1990) that advances compliance with the Community Reinvestment Act and the fair lending laws by FDIC-supervised institutions. The FDIC's Division of Compliance and Consumer Affairs administers the program and provides Community Affairs staff to assist lenders and the public. 4/19/02

  • FDIC And Operation Hope Sign Mou Agreement Promoting Financial Education In Underserved Communities

    The FDIC and Operation Hope, Inc. announced a pilot program to help strengthen communities across America through financial education. Under an agreement, Operation Hope has adopted the FDIC's "Money Smart" financial literacy program to train high school students and adults in basic money management skills. FDIC:PR-45-2002 4/19/02

  • New Data Collection Offers Insight Into Noninterest Income Activity at U.S. Banks

    The FDIC reported new detail on commercial banks' noninterest income, added to their quarterly financial reports in 2001, sheds light on the fastest-growing component of banks' revenues. FDIC:PR-44-2002 4/19/02

  • FDIC Chairman Asks for Input on Reducing Regulatory Burden

    The FDIC has established a special group to consider ideas on how to reduce burden on banks and the public and to make the FDIC more efficient. Suggested topics can be transmitted via the FDIC website. FDIC Press Release 4/18/02

  • FDIC Chairman Powell's Statement on Passage of Deposit Insurance Reform Legislation by House Financial Services Committee

    The House Committee passed a good bill and we will continue working to pass deposit insurance reform this year." Don Powell, FDIC Chairman. FDIC:PR-43-2002 4/18/02

  • $100 Billion Claim Against the Federal Reserve Rejected

    The United States Court of Appeals for the 7th Circuit on April 16, 2002 issued an opinion regarding one of the most ludicrous claims ever to be filed against the Federal Reserve System. The plaintiffs, in the case of Marques v. Federal Reserve Bank of Chicago, claimed to be agents of the owners of $25 billion in bearer bonds issued in 1934 in exchange for 1665 metric tons of gold. The suit sought an order requiring payment of the bonds at face value plus 4% interest for a total claim of $100 billion. Plaintiffs also contended there is an international conspiracy to deny the validity of the bonds. The Court noted there is no record of any such bond issue and the total debt of the U.S. in 1934 was only $28 billion. In addition, the entire stock of U. S. gold in 1934 had a value of $9 billion. The case was dismissed in the lower court upon the government's motion for summary judgment but the judgment was reversed by the Court of Appeals on purely procedural grounds. The plaintiffs were admonished that if a new similar suit were filed, they would be subject to appropriate civil or criminal sanctions. The Treasury has issued a warning regarding similar claims regarding the class of frauds called "Morgenthaus" named after Henry Morgenthaus, Jr. the Secretary of Treasury in 1934. 4/17/02

  • FDIC Issues Final Rule Relating to Forms, Instructions, and Reports

    The FDIC is revising its regulation on forms, instructions, and reports to make the information contained in it current. The revised regulation includes current FDIC addresses and websites, and updated descriptions of FDIC forms. 67FR18793 (text) 4/17/02

  • OCC Announces 12 New Enforcement Actions and 2 Terminations

    The OCC announced 12 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 2002-36 4/17/02

  • OCC Releases CRA Evaluations For 27 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of March 15 through April 14, 2002. OCC:NR 2002-35 4/17/02

  • BSA Violations Prove Expensive for PA Bank

    FinCEN has levied civil money penalties of $700,000 against a federally chartered savings bank in Pennsylvania for what it terms a "willful" failure to file Currency Transaction Reports. 4/16/02

  • FinCEN Issues New Advisory Newsletters

    The advisories pertain to the following: Burma (Myanmar), Ukraine, Arab Republic of Egypt, Grenada, Federal Republic of Nigeria. The latest FinCEN advisories suggest that financial institutions should give enhanced scrutiny to all financial transactions originating in or routed to or through the affected countries. 4/16/02

  • OTS Updates Thrift Holding Companies Handbook

    OTS updated the handbook to reflect its risk-focused approach to holding company examinations. It designates two risk classification categories: low risk or noncomplex, and high risk or complex. OTS 02-020 4/16/02

  • FDIC and Neighborhood Reinvestment Corporation Announce Program to Promote Financial Education and Homeownership

    The Neighborhood Reinvestment Corporation will use the FDIC's "Money Smart" financial literacy program to train adult educators and teach money management skills to thousands of people, primarily low-income consumers, minorities or women who are potential homebuyers or existing homeowners having problems making ends meet. FDIC:PR-42-2002 4/16/02

  • OFAC Updates Information on its Travel, Carrier, and Remittance Forwarding Service Provider Program

    The Circular summarizes the current regulatory program that permits certain transactions involving property in which Cuba has an interest with respect to the provision of travel services, carrier services and the forwarding of remittances under the Cuban Assets Control Regulations. 4/15/02

  • Resumption of Critical Operations

    The OCC has published Discussion Notes and a Meeting Summary from a multi-agency meeting held in February to analyze events in the wake of the September 11 attacks in order to strengthen the resilience of the financial system and share insights about developing more robust business continuity plans. 4/12/02

  • New Rule Affects Lockbox Arrangements for Federal Agencies

    If you operate a lockbox for a federal agency, you'll want to read about the revisions to the rule of the Department of the Treasury, Financial Management Service that will permit the conversion of checks to ACH debit entires at federal agency points-of-purchase and at lockbox locations to which payments to agencies are mailed or delivered. 67FR17895 (text) 67FR17895 (pdf) 4/12/02

  • New FMS Interim Rule to Reflect NACHA Changes

    The Department of the Treasury, Financial Management Service has issued an interim rule to reflect certain changes NACHA has made to the ACH Rules since the publication of NACHA's 2001 rule book. The interim rule addresses four topics: l) affidavit and electronic communication issues; 2) reinitiation of entries; 3) electronic authorization; and 4) electronic terminals. 67FR17895 (text) 67FR17895 (pdf) 4/12/02

  • NCUA Chairman Releases Study On Deposit Insurance Reform Legislation

    NCUA Chairman Dennis Dollar told a group of California and Nevada credit union leaders that a recently completed NCUA study of the potential impact of pending deposit insurance reform legislation shows the likelihood of a premium assessment as minimal, but a strong possibility exists that increasing coverage above $100,000 would reduce the NCUSIF equity ratio enough to require at least two years for the fund ratio to be re-built through earnings sufficiently to again begin paying credit unions a dividend. NCUA Press Release 4/12/02

  • OTS Announces 21 March CRA Ratings

    The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in March 2002. OTS 02-18 4/12/02

  • Gilleran Announces OTS Restructuring Plans

    OTS Director James E. Gilleran announced today that he has begun implementing a restructuring plan designed to achieve greater operating efficiencies and consistency of regulation for the thrift industry. OTS 02-19 4/12/02

  • OCC Chief Counsel Julie L. Williams Underscores Major Increase In the Beneficial Relationships Between Banks and CDCs

    Bank involvement with Community Development Corporations has increased significantly in recent years, Julie L. Williams, First Senior Deputy Comptroller and Chief Counsel, said in a speech. 4/11/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The Federal Deposit Insurance Corporation has learned that counterfeit cashier's checks drawn on three separate financial institutions are in circulation. FDIC:FIL-33-2002 4/11/02

  • FDIC FIL about OFAC Change

    The FDIC has published FIL-32 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-32-2002 4/11/02

  • FDIC's Credit Card Center Available Online

    The FDIC's Credit Card Center handles consumer complaints and inquiries for all FDIC-regulated Credit Card Specialty Banks. The staff provides an avenue for efficient and effective resolution of consumer complaints or inquiries. 4/11/02

  • FRB Issues Final Rule Amending Reg Z Commentary

    The revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. In addition, the revisions provide guidance on disclosing costs for certain credit insurance policies and on the definition of ``business day'' for purposes of the right to rescind certain home-secured loans. 67FR16980 (txt) 67FR16980 (pdf) 4/9/02

  • Regulators Issue Final Rule on Risk Based Capital Standards

    This rule amends their risk-based capital standards to permit a zero percent risk weight for certain claims on qualifying securities firms that are collateralized by cash on deposit in the lending institution or by securities issued or guaranteed by the United States or other OECD central governments. 67FR16971 (txt) , 67FR16971 (pdf), FRB Press Release , FDIC-PR-41-2002, FDIC:FIL-31-2002, OCC: NR 2002-33, OTS 02-17, OCC 2002-13 4/9/02

  • Gilleran Announces New Proposal for Enhancing the Mutual Thrift Charter

    As part of an on-going, comprehensive review of the treatment of mutual thrifts, the OTS is proposing rule changes governing mutual thrifts, mutual holding companies and mutual-to-stock conversions. OTS 02-16 4/9/02

  • Comptroller Outlines the Benefits of Financial Literacy Programs

    Financial education programs can be critical to combating predatory lending, to reaching the unbanked and to meeting the needs of the underbanked, Comptroller of the Currency John D. Hawke said. OCC:NR 2002-32, Speech 4/9/02

  • Warning: Bogus Letters with Sham IRS Forms

    Ever heard of an IRS form W-9095? There's no such thing, but con artists are sending them to bank customers -- along with cover letters purporting to be from the bank asking the customer to complete the form (which requests a great deal of sensitive and confidential information) and fax it to a number designated on the letter. If completed and faxed back, the data would make it easy for the thief to commit ID theft. OCC has issued a special warning that includes a copy of the fake form and the bogus letter. Alert those who man the phones at your institution to be especially vigilant about verifying customer identity in the wake of this scam. OCC:Alert 2002-3, Customer Letter, Application Form 4/8/02

  • 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 Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in January 2002. FDIC:PR-40-2002 4/8/02

  • FR Financial Services Publishes International ACH Service Manual

    The Federal Reserve Financial Services has published a new manual that is intended to assist financial institutions in establishing a Canadian ACH program using the Federal Reserve’s International ACH Service. The manual will provide you with an overview of the service, implementation steps and technical requirements. 4/8/02

  • OTS Announces Nine February CRA Ratings

    The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in February 2002. OTS 02-15 4/8/02

  • FFIEC Publishes Annual Report

    The Federal Financial Institutions Examination Council has issued its Annual Report for 2001. 4/5/02

  • FRB Issues Revisions to Reg Z Commentary

    The commentary revisions clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures, in a form the consumer may keep, before consummation. In addition, the revisions provide guidance on disclosing costs for certain credit insurance policies and on the definition of "business day" for purposes of the right to rescind certain home-secured loans. FRB Press Release
    4/4/02

  • Treasury Extends Public Comment Period on Information-Sharing Study

    The Treasury Department announced the extension of the public comment period from April 1, 2002 to May 1, 2002, for the Study of Information Sharing Practices Among Financial Institutions and Their Affiliates. This study was required by Section 508 of the Gramm-Leach-Bliley Act of 1999. Treasury News 4/4/02

  • FDIC Announces Agency Meeting

    The FDIC's Board of Directors will meet in open session at 10:00 a.m. on Tuesday, April 9, 2002. Meeting Notice 4/4/02

  • FFIEC Updates Reporting Forms

    The FFIEC has updated two Reporting Forms for March 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices. FFIEC 031, FFIEC 041 4/3/02

  • Regulators Distribute Call Report for First Quarter 2002

    Banks should complete your first quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by April 30, 2002. FDIC:FIL-29-2002 4/2/02

  • FRB Issues Notice on Derivative Contracts Hedging Trust Preferred Stock

    The Federal Reserve has issued SR 02-10 to express supervisory concerns about certain arrangements under which bank holding companies seeking to hedge the interest rate risk on their issues of trust preferred stock have been offered derivative contracts with terms that have the effect of contravening the strict conditions for the inclusion of the trust preferred stock in tier 1 capital. FRB:SR 02-10 4/1/02

  • OCC Informs National Banks of Information Sharing Proposal and Interim Rule

    In OCC Bulletin 2002-12, the OCC transmits to national bank's the treasury department's recent proposed rule and interim rule on information sharing under Section 314(b) of the USA PATRIOT Act. The proposed rule, which was previously written about in Top Stories, has a comment deadline of April 3, 2002. OCC 2002-12 4/1/02

  • FDIC Makes Public February Enforcement Actions; Two Administrative Hearings Scheduled

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in February. Two administrative hearings are scheduled for April. FDIC:PR-39-2002 4/1/02

02/28/2002

Top Stories for March 2002

  • Fraudulent Bonus Checks For Non-Existent Jobs

    In FIL-30-2002 the FDIC tells of individuals and banks being victimized by a convoluted scheme involving online job applications and checks for "signing bonuses". 3/29/02

  • FTC to Announce Formation of NetForce

    On April 2 the FTC will have a press conference to announce the formation of an International NetForce to target deceptive spam and Internet fraud. Details about the press conference. 3/29/02

  • FTC Extends Comment Deadline on Changes to Telemarketing Sales Rule

    The Federal Trade Commission announced it has extended the public comment period for proposed changes to its Telemarketing Sales Rule until April 15, 2002 3/29/02

  • Michigan Bank Fails; FDIC Approves Payout

    The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of New Century Bank, Shelby Township, MI. The bank was closed today by the Michigan Commissioner of the Office of Financial and Insurance Services, and the FDIC was named receiver. PR-38-2002   Bank Closing Info 3/29/02

  • FDIC Report Evaluates Mortgage Lending Changes

    A report released in the FDIC's Regional Outlook evaluates changes in mortgage lending during the economic expansion of the 1990s, and the possibility that weaker home price growth could bring difficulties to home borrowers and their lenders. The report concludes that the risk of significant downward correction in house prices is not geographically widespread, but that some previously booming locations are exhibiting heightened home price risk. PR-37-2002   FDIC's FYI 3/29/02

  • The Importance of Managing Outsourcers

    A jury awarded a bank consultant a judgment of $276 million against a bank March 27, 2002 in a case where the consultant reportedly developed online loan application software for the bank and the bank subsequently formed its own subsidiary that allegedly used many of the consultant's methods. By utilizing its own company, the bank allegedly cut the consultant out of the processing fee he would have earned on each online loan application. Look at the news report on the case and consider your own outsourcing arrangements and precautions you should be taking now to avoid future disputes. 3/28/02

  • SEC Obtains Emergency Court Orders to Shut Down a Prime Bank Scheme

    The Securities and Exchange Commission obtained emergency court orders to shut down a nationwide, $98 million prime bank scheme and recover victims%™ money. The complaint alleges a team of "facilitators" falsely claimed to investors that their money would be used in Europe to trade financial instruments with top 25% or top 50% banks in a program sponsored by the Federal Reserve and global organizations. However, neither the financial instruments touted by RDI nor the markets on which they purportedly trade exist. SEC Press Release 3/28/02

  • FATF Issues Guidance Notes for Recommendations

    The Financial Action Task Force (FATF) on Money Laundering has issued guidance notes for its special recommendations on Terrorist Financing and the Self-Assessment Questionnaire. FATF Guidance Notes 3/27/02

  • GLBA Pretexting Case Settled

    Information brokers who allegedly using deception to obtain consumers' confidential financial information have agreed to give up their ill-gotten gains as part of a settlement of Federal Trade Commission charges that their practices violated federal law. The settlements also bars the operators from obtaining or hiring others to obtain consumers' financial information through illegal means or by hiring or contracting with others who use illegal methods to obtain consumers' financial information. The scheme involved the use of Web sites. FTC Release 3/27/02

  • Counterfeit Personal Money Orders in Circulation

    FDIC has issued FIL-28-2002 to alert banks that counterfeit personal money orders payable through Bank One, NA, Columbus, Ohio, and Bank of the Bluegrass & Trust Co., Lexington, Kentucky, are in circulation. The account numbers used on the counterfeit items are not the account numbers used by either bank for money orders. Attached for your information are copies of some of the counterfeit instruments. They were received as payment on credit card accounts in an attempt to fraudulently increase credit lines. This information was brought to the attention of FDIC by The New Millennium Bank, New Brunswick, New Jersey. 3/27/02

  • FDIC Publicizes Recent OFAC Changes

    In FIL-26-2002 and FIL-27-2002, the FDIC informs state-chartered nonmember banks of the March 11 and March 15 changes made to the OFAC list (which were previously reported on Top Stories). 3/27/02

  • Comptroller Hawke Spotlights Benefit of Regulator Independence

    Comptroller of the Currency John D. Hawke, Jr. said today that the banking industry's good health -- and its ability to support the economy as it emerges from economic difficulties -- owes in part to the independence of the bank regulatory agencies. NR 2002-31   Text of Speech(doc file) 3/26/02

  • 2002 Annual Performance Plan

    The FDIC's Annual Performance Plan implements the FDIC's strategic goals and objectives by establishing annual performance goals. 3/25/02

  • OCC Chief Counsel Julie L. Williams Urges Banks to be Vigilant In Avoiding Unfair and Deceptive Marketing Practices

    New guidance issued by the OCC will help banks maintain high-quality customer service, said Julie L. Williams, the OCC's First Senior Deputy Comptroller and Chief Counsel. The advisory letter on unfair or deceptive acts or practices "is part of our effort to identify potentially problematic practices and provide guidance to national banks on how to avoid them," Ms. Williams said in a speech before a compliance conference sponsored by the Maryland and Delaware banking associations. OCC:NR 2002- 30, Speech 3/25/02

  • Reminder of Reg H Prior Approval Requirement for Biz Plan Changes

    The Federal Reserve has issued SR 02-9 to remind state-chartered member banks of the Regulation H requirement that they obtain prior approval of the FRB before making any significant change in business plans. SR 02-9 3/22/02

  • OTS Summarizes PATRIOT Act

    A summary of the USA PATRIOT Act has been prepared by the staff of the Office of Thrift Supervision. The 11 page PDF document summaries the provisions which are applicable to thrift operations. OTS PATRIOT Act Summary 3/21/02

  • The Yield Spread Premium Soap Opera Continues

    The 8th Circuit Court of Appeals on March 21, 2002, reversed the class certification in the case of Glover v. Standard Federal Bank and Heartland Mortgage. Previously, the district court had created a nationwide class all individuals who obtained a mortgage financed by Standard Federal and brokered by any mortgage broker. The 8th circuit accepts the loan-specific liability test promulgated by HUD, which recognizes that yield spread premiums may legitimately be used as way to finance closing costs. The court therefore holds that a loan-specific analysis is required in order to determine whether the payment of a yield spread premium is based upon services rendered or an illegal referral. Class certification is therefore impracticable. Individual plaintiffs can still sue on an individual basis, but the certification of all the borrowers as a class in this case was improper. Glover v. Standard Federal Bank 3/22/02

  • FDIC Reports Weakened U.S. Office Markets Could Decline Further

    The demand for U.S. commercial office space deteriorated significantly in 2001 and conditions could weaken further in some key metro areas in 2002, according to a report released by the FDIC. FDIC:PR-35-2002 3/22/02

  • FRB Releases Consumer Guide to Electronic Check Conversions

    The Federal Reserve Board has published a guide to help consumers better understand their rights and responsibilities with regard to electronic check conversion transactions. "When is Your Check Not a Check? Electronic Check Conversion," discusses what electronic check conversion is, how consumers can tell if their check will be electronically converted, some of the differences between a regular check transaction and electronic check conversion, consumers' rights in an electronic check conversion transaction, and what consumers can do if they have problems with such transactions. FRB Press Release Electronic Check Conversion Guide     PDF Version of Guide 3/22/02

  • FRB Governor Susan S. Bies Speaks on Community Bank Challenges

    In a speech to the Ohio Bankers Day Conference, Ohio Department of Commerce, FRB Governor Susan S. Bies addressed financial performance of U.S. banks, in particular, of community banks; the improvements that banks large and small are making in measuring and managing risk; and finally, the responsibilities of directors and senior managers in corporate governance. Speech 3/22/02

  • FRB Supervisory Letter on Section 327 Implementation

    The FRB has issued SR 02-8 relating to implementation of Section 327 of the USA PATRIOT Act in the applications process. Section 327 of the USA Patriot Act amends the Bank Holding Company Act to require the Federal Reserve to consider the effectiveness of an applicant company in combating money laundering activities, when it acts on an application filed under section 3 of the Bank Holding Company Act or when it acts on an application under the Bank Merger Act. SR 02-8 3/22/02

  • Major Predatory Lending Settlement

    The FTC has announced the terms of their largest settlement in a subprime lending case. We've pulled together highlights from the FTC's press conference. Access our article Predatory Lending Practices Result in Large Settlement

    , as well as the FTC press release. 3/22/02

  • FTC Testimony on Identity Theft

    The FTC told the Senate Judiciary Committee's Subcommittee on Technology, Terrorism, and Government Information that while there is good reason for consumers to be concerned about falling victim to identity theft, there are "real and positive steps" that can be taken to reduce the incidence of this crime and alleviate the harm to consumers. FTC Press Release 3/21/02

  • OTS Will Examine for USA PATRIOT Act Compliance

    OTS and the thrift industry have been working together and along with law enforcement agencies to cut the purse strings of terrorists,% said Director James E. Gilleran. The USA Patriot Act enhanced our ability to cut off the financing of terrorism by strengthening the tools we have to prevent, detect and prosecute international money laundering.% OTS 02-13 3/21/02

  • Verifying Customer Identification

    Proposed regulations are expected from Treasury on minimum standards for verifying customer identification under Section 326 of the USA PATRIOT Act. Until then, when verifying identity, keep in mind the ease with which a social security number may have been compromised and look for any evidence that may indicate a SSN is being fraudulently used. The Social Security Act requires state motor vehicle agencies (MVAs) to collect SSNs on drivers license applicants (although it does not require the number to be displayed on the license). A new GAO report mentions deficiencies in MVA protection of social security data. (See p. 14-18 of the GAO Report). Look also at whether similar deficiencies in protecting customer information might exist at your own institution. 3/21/02

  • Latest FDIC Survey Finds Continued Slowing In Real Estate Markets

    The latest results of the FDIC's Survey of Real Estate Trends indicated continued deterioration in the nation's property markets during the second half of 2001. Reports of somewhat worsening conditions were significantly higher compared to six months ago for all property markets but were most prevalent for the commercial markets. FDIC:PR-30-2002 3/21/02

  • Interagency Statement Regarding Arthur Andersen

    The federal financial institutions supervisory agencies announced that the financial institutions they supervise should follow the guidance issued by the U.S. Securities and Exchange Commission with respect to auditing and accounting work performed by Arthur Andersen LLP. FRB Press Release, OCC:NR 2002-29, FDIC-PR-33-2002 , OTS 02-14 3/20/02

  • OCC Releases CRA Evaluations For 29 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of February 15 through March 14, 2002. The list contains only national banks and insured federal branches of foreign banks that have received ratings. OCC:NR 2002-28 3/20/02

  • OCC Announces 11 New Enforcement Actions and 1 Terminations

    The OCC announced 11 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 2002- 27 3/20/02

  • Fed Leaves Interest Rate Unchanged

    The FOMC decided to keep its target for the federal funds rate unchanged at 1-3/4 percent. FRB Press Release 3/20/02

  • OCC Files Notice of Charges Against People's National Bank of Paris, Texas

    The OCC filed a notice of charges against People's National Bank, Paris, Texas, alleging that the bank engaged in unsafe and unsound practices in connection with its high-risk, subprime payday lending operation. OCC:NR 2002- 26 3/19/02

  • NCUA Issues Final Rule Concerning Financial and Statistical Reports

    NCUA is revising its rule concerning financial and statistical reports to require all federally-insured credit unions to file
    quarterly Financial and Statistical Reports with NCUA. Currently, only federally-insured credit unions with assets over $50 million must file these reports quarterly. All other federally-insured credit unions are required to file these reports semi-annually. 67FR12459 (text) 3/19/02

  • FFIEC Updates Draft Reporting Forms

    The FFIEC has updated two Draft Reporting Forms for March 2002 -- FFIEC 031(Consolidated Reports of Condition and Income for A Bank With Domestic and Foreign Offices) and FFIEC 041 (Consolidated Reports of Condition and Income for A Bank With Domestic Offices Only). 3/19/02

  • OFAC Updates SDN list and OFAC's Terrorism brochure

    OFAC's SDN list and OFAC's Terrorism brochure have been updated to include the information released on Friday, March 15th. OFAC Update 3/19/02

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

    The Massachusetts Bankers Association had asked the OCC for an opinion on whether three provisions of a Massachusetts law relating to the sale of insurance by banks apply to national banks. NR 2002-25 3/19/02

  • Comptroller Urges Industry to Adapt Technology To Give Low-Income Americans Greater Access to Banking Services

    Low-income Americans constitute a large and potentially important market for financial services providers, and technology gives banks a means to serve that market in a cost-effective way, Comptroller of the Currency John D. Hawke Jr. said. OCC:NR 2002-24, Speech 3/19/02

  • FDIC FIL about OFAC Changes

    The FDIC has published FIL-25 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals and Blocked Persons by removing the a Specially Designated Narcotics Trafficker. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-25-2002 3/19/02

  • FFIEC Reports that the December 31, 2001 Uniform Bank Performance Report are Online

    The online version of the UBPR includes 5 years of continuous financial history that is restated quarterly to reflect call report amendments and new analytical tools. FFIEC Press Release 3/18/02

  • OCC Issues Alert on Suspicious Transactions

    The OCC has been advised by TCF National Bank, Minneapolis, MN, that certain "confirmation of funds" letters, issued from the bank's Arlington Heights Road branch office, were issued without the authority of the bank. OCC:Alert 2002-13/18/02

  • OCC Issues Unauthorized Banking Alert

    The OCC has not granted a national bank charter to this entity and the District of Columbia has not granted permission for it to operate a banking business. This entity is not associated with Chase Manhattan Bank of New York or any of Chase Manhattan Bank of New York's subsidiaries or affiliates. OCC:Alert 2002-2 3/18/02

  • Treasury Conducts Study of Information Sharing Practices Among Financial Institutions and Their Affiliates

    The Secretary of the Treasury, in conjunction with the federal functional regulatory agencies and the Federal Trade Commission is conducting a study of information sharing by financial institutions. The study is required by section 508 of the Gramm-Leach-Bliley Act of 1999. OCC 2002-113/18/02

  • FRB Issues Supervisory Letter on Section 314 of the USA PATRIOT Act

    The SR letter describes a new, immediately effective regulation concerning the sharing of information about terrorist financing and money laundering among financial institutions that was issued by the U.S. Department of the Treasury, through its Financial Crimes Enforcement Network (FinCEN). The FinCEN rule was issued pursuant to section 314(b) of the USA Patriot Act on March 4, 2001. All banking organizations supervised by the Federal Reserve should take whatever steps are necessary to ensure that the appropriate staff learns about its provisions. (The proposal and interim rule were earlier reported on Top Stories when announced and when published.) FRB:SR 02-6 3/18/02

  • Treasury Issues Final Rule to Amend the Treasury Tax and Loan Program

    The rule provides the Secretary greater flexibility to adjust the rate of interest charged on funds loaned through the existing TT&L investment option. 67FR11573 (text) 67FR11573 (pdf) 3/15/02

  • FDIC Issues FIL on Section 314 of the USA PATRIOT Act

    The FDIC has issued FIL-24-2002 to alert banks to the Treasury Department's proposed rule and interim rule on Information Sharing promulgated under Section 314(b) of the USA PATRIOT Act. (The proposal and interim rule were earlier reported on Top Stories when announced and when published.) FDIC:FIL-24-2002 3/15/02

  • FDIC Publishes Consumer News

    This issue features a story on Weathering a financial storm: how to protect yourself and your family. FDIC Consumer News 3/15/02

  • Comptroller Hawke Says Industry Still Faces Challenges, But Emerged from Difficulties of 2001 in Good Condition

    Julie L. Williams, Chief Counsel and First Senior Deputy Comptroller for the Office of the Comptroller of the Currency, told a House Financial Services subcommittee that the OCC strongly supports provisions in pending legislation that would eliminate unnecessary regulatory burden on banks. OCC:NR 2002-23, Oral Statement, Testimony 3/15/02

  • FDIC Report Shows Insurance Funds Erode In 2001

    Growth of insured deposits and recent increases in the reserves for future losses contributed to a decline in the reserve ratios of the deposit insurance funds in 2001, the Federal Deposit Insurance Corporation (FDIC) reported in the Quarterly Banking Profile. FDIC:PR-32-2002 , FYI 3/14/02

  • OTS Director Gilleran Outlines Policy Prescriptions at ACB Conference

    OTS Director James Gilleran highlighted several important policy initiatives facing the thrift industry in remarks before America's Community Bankers in Washington. OTS 02-12 3/14/02

  • NCUA Chairman to Testify Before U.S. House of Representatives

    NCUA Chairman Dennis Dollar will testify before a U.S. House of Representatives subcommittee regarding the Financial Services Regulatory Relief Act of 2002, a bill to be introduced. He is scheduled to testify with other federal financial regulators on Thursday, March 14, 2002, at 9:30 a.m. NCUA Press Release 3/13/02

  • Federal Banking Regulatory Agencies Jointly Issue Statement on Sound Country Risk Management Practices

    The FDIC, FRB, and OCC have recently agreed on a joint statement addressing "Sound Risk Management Practices" for country risk. The statement describes the elements of an effective country risk management process. FDIC:FIL-23-2002, OCC 2002-10, FDIC:FIL-23-2002, FRB Press Release 3/12/02

  • Regulators Issue Common Form for Charter and Federal Deposit Insurance Applications

    Effective immediately, the "Interagency Charter and Federal Deposit Insurance Application" form will be used to apply for a national bank or federal savings association charter and for federal deposit insurance. OCC:NR 2002-22, OTS 02-11, FDIC-PR-31-2002 3/12/02

  • Interagency Loan Data Request to Improve the Bank Examination Process

    The federal bank supervisory agencies and the CSBS announced an interagency effort to improve the efficiency of the examination process by standardizing the request for electronic loan information. This information is used primarily to conduct community and mid-size bank safety and soundness examinations and is currently provided in a variety of formats that can be time consuming and costly for regulators, banks and service providers to administer. OCC:NR 2002-21, FDIC-PR-29-2002, FRB Press Release 3/12/02

  • Bank Auditing in the Wake of Enron

    FDIC Chairman Don Powell believes financial institution regulators should consider strengthening the ground rules governing bank auditing and accounting. In his most recent speech, he mentions possible reforms and details the authority regulators already have to address auditing conflicts of interest, to mandate the retention of auditing documents, and to enhance sanctions imposed on auditors. FDIC Speech, FDIC:PR-30-2002 , FYI 3/12/02

  • FDIC FIL about OFAC Changes

    The FDIC has published FIL-22 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-22-2002 3/8/02

  • The FDIC Reports The Effects Of The U.S. Economic Slowdown

    Houston's banks could face a challenging 2002, according to a report released by the FDIC. The latest edition of FYI is the first of a series of profiles that will highlight regional issues facing U.S. banks. FDIC:PR-28-2002
    3/8/02

  • Comptroller Hawke Says Industry Still Faces Challenges, But Emerged from Difficulties of 2001 in Good Condition

    Comptroller of the Currency John D. Hawke, Jr. told bankers that the industry emerged from the difficult months of 2001 in far better shape than anyone could have anticipated, but reminded them that many challenges lie ahead. OCC:NR 2002-20, Comptroller's Speech 3/8/02

  • OCC Reports Derivatives Volume Falls Below $50 Trillion

    U.S. commercial banks saw earnings from cash instruments and derivatives activities drop $805 million, to $2.65 billion, in the fourth quarter of 2001. OCC:NR 2002-19 Bank Derivatives Report 3/8/02

  • OTS Posts 4th Quarter Thrift Industry Data

    The report covers earnings and a range of financial and other data collected from the thrift industry for the period October 1 through December 31, 2001. OTS 02-10 3/7/02

  • OCC and ABA Cosponsor Community and Economic Development Conference

    The OCC and ABA will co-sponsor the 2002 National Community and Economic Development Conference titled "Grow Markets....Grow Profits" in Baltimore, Maryland on March 17-19. OCC:NR 2002-18 3/7/02

  • FFIEC Releases UBPR Schedule

    The FFIEC has announced that UBPR's will be available online 35 days after an institution's call report is filed. For the call reports which were due 1/31/02, UBPRs are available online beginning March 6. Online UBPR Schedule 2002 Hints For Using The Online UBPR 3/6/02

  • NCUA to Participate in HUD Project Focusing on the Colonias Gateway Initiative

    The NCUA will join the United States Department of Housing and Urban Development for a workshop focusing on housing and economic development issues in the Colonias region of the southwestern United States. NCUA Press Release 3/6/02

  • FDIC Issues Alert on Counterfeit Official Bank Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Greenfield Banking Company, Greenfield, Indiana, are in circulation. FDIC:FIL-21-2002 3/6/02

  • FDIC FIL about OFAC Changes

    The FDIC has published FIL-20 to notify banks of a recent OFAC change where OFAC amended its listing of Specially Designated Nationals and Blocked Persons. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-20-2002 3/6/02

  • 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 2001. FDIC:PR-27-2002 3/6/02

  • OTS Releases January Enforcement Statistics

    The OTS reported that it issued three enforcement orders to two individuals and one institution during the month of January, 2002. OTS also terminated four orders previously issued to three institutions. OTS 02-09 3/5/02

  • OTS Announces 93 CRA Exams Scheduled for 2nd Quarter 2002

    The OTS announced that 93 savings associations are scheduled for Community Reinvestment Act (CRA) examinations during the second quarter of 2002. OTS 02-08 3/5/02

  • OCC Reduces Regulatory Burden for Well-Managed Federal Branches

    The OCC announced that it is implementing more flexible capital equivalency requirements for federal branches of foreign banks to reduce costs for institutions that present low levels of risk. OCC:NR 2002-16 3/5/02

  • FRB Issues Supervisory Letter on Capital Rules for Nonfinancial Equity Investments

    As previouly reported in the Federal Register, this rule establishes special minimum regulatory capital requirements for equity investments in nonfinancial companies. This advisory summarizes the key provisions of the new capital rule and attaches the text of the interagency preamble and the rules promulgated by the FRB for state member banks and bank holding companies. FRB Press Release, Jan. 2002 Joint Press Release 3/5/02

  • Comptroller Hawke Says Good Progress is Being Made on Capital Accord

    Comptroller of the Currency John D. Hawke, Jr. said that the Basel Committee on Bank Supervision is making good progress toward developing a new capital accord to replace the international agreement that was put in place in 1988, although a number of thorny issues remain to be worked out. OCC: NR 2002-17, Speech 3/5/02

  • FinCEN Issues Interim and Proposed Rule on Information Sharing in the Federal Register

    As earlier reported, the proposed rule would authorize the utilization of the FinCEN's existing communication resources to establish a link between federal law enforcement and financial institutions for the purpose of sharing information concerning accounts and transactions that may involve terrorist activity or money laundering. The interim rule will allow certain financial institutions to be able to share information among themselves for the purpose of identifying and reporting suspected terrorism and money laundering once the financial institutions have notified FinCEN that they intend to share such information and that they will take adequate steps to maintain confidentiality. Interim Rule, Proposed Rule 3/4/02

  • Call and Thrift Financial Reports

    December 31, 2001, Call Reports and Thrift Financial Reports are now available. 3/4/02

  • FDIC Issues Second 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 second quarter of 2002. FDIC:PR-25-2002 3/4/02

  • OCC Closes Net First National Bank and Appoints FDIC Receiver

    Net First National Bank, Boca Raton, Florida, was closed by the OCC and the FDIC was appointed receiver. OCC:NR 2002-15 FDIC Approves the Assumption of the Insured Deposits of Net First National Bank, Boca Raton, Florida FDIC:PR-26-2002
    3/4/02

  • TO ACCESS PRIOR TOP STORIES

    To access previous Top Stories (such as the ones from February, for example), use the Top Stories Archive drop-down menu above, or the drop-down menu at the bottom of this page to select the month you wish to review.

  • FinCEN Requests Comment on the Exempt Person Form

    FinCEN invites all interested parties to comment on its continuing collection of information through its %˜%˜Designation of Exempt Person%™%™ form that is used by banks and other depository institutions to designate their eligible customers as exempt from the requirement to report transactions in currency over $10,000. 3/1/02

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

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in January. No administrative hearings are scheduled for March. FDIC:PR-24-2002 3/1/02

  • FDIC Announces Loan Problems Grow Even as Commercial Bank Earnings Break Records

    Commercial banks earned a record $74.6 billion in 2001, up $3.5 billion from the record $71.1 billion in industry earnings in 1999, the FDIC reported. FDIC:PR-23-2002 , The FDIC Preliminary Bank Earnings Report Fourth Quarter, 2001
    3/1/02

  • OCC Issues Second Quarter 2002 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the second quarter of 2002. OCC:NR 2002-14 3/1/02

  • Treasury Announces Regs on Information Sharing

    The Treasury Department has announced its issuance of a proposed rule and a new interim regulation under the USA PATRIOT Act. The proposed rule would authorize the utilization of the FinCEN's existing communication resources to establish a link between federal law enforcement and financial institutions for the purpose of sharing information concerning accounts and transactions that may involve terrorist activity or money laundering. The interim rule, which will become effective upon publication in the Federal Register, will allow certain financial institutions to be able to share information among themselves for the purpose of identifying and reporting suspected terrorism and money laundering once the financial institutions have notified FinCEN that they intend to share such information and that they will take adequate steps to maintain confidentiality. Treasury Announcement 2/28/02

01/31/2002

Top Stories for February 2002

  • Treasury Announces Regs on Information Sharing

    The Treasury Department has announced its issuance of a proposed rule and a new interim regulation under the USA PATRIOT Act. The proposed rule would authorize the utilization of the FinCEN's existing communication resources to establish a link between federal law enforcement and financial institutions for the purpose of sharing information concerning accounts and transactions that may involve terrorist activity or money laundering. The interim rule, which will become effective upon publication in the Federal Register

    , will allow certain financial institutions to be able to share information among themselves for the purpose of identifying and reporting suspected terrorism and money laundering once the financial institutions have notified FinCEN that they intend to share such information and that they will take adequate steps to maintain confidentiality. Treasury Announcement 2/28/02

  • Updated Notice: FRB Schedules Next CAC Meeting

    The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 14. The meeting will take place in Dining Room E, Terrace level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. This notice includes new security clearance procedures and supersedes the release issued February 20, 2002. FRB Press Release 2/28/02

  • OTS Director Gilleran Reports Thrifts Reach Record $10.2 Billion in Earnings in 2001

    “Last year was one of the best in the thrift industry's history,” said OTS Director James E. Gilleran. He noted that net income reached an annual record of $10.2 billion in 2001, up 27 percent from $8 billion the prior year. OTS 02-07 2/28/02

  • FDIC Alert List Altered

    FDIC has notified banks that it has deleted LiborBank from its list of entities that may be conducting banking operations without authorization. FDIC:FIL-16-2002 2/28/02

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that counterfeit cashier's checks drawn on Community Bank of the Cumberlands, Jamestown, Tennessee, are in circulation. FDIC:FIL-15-2002 2/28/02

  • FDIC Issues Alert on Stolen Treasurer's Checks

    The FDIC has been informed by the Chittenden Bank, Brattleboro, Vermont, that 1,000 of the bank's treasurer's checks were stolen during a January 31, 2002, robbery of the Berkshire Armored Carrier Facility in Rutland, Vermont. The missing checks are numbered 6153451 through and including 6154450. FDIC:FIL-18-2002 2/28/02

  • FDIC FILs about OFAC Changes

    The FDIC has published FIL-14-2002 and FIL-17-2002 to notify banks of a recent OFAC change where OFAC added additional SDGTs to its Terrorist list. [The OFAC change itself was previously covered on BOL.] 2/28/02

  • FDIC Reports Commercial Loan Losses Continue To Grow

    Bank losses on commercial and industrial loans grew again in the fourth quarter of 2001, while key measures of capital and loan loss reserve adequacy also rose, according to a report issued by the FDIC. FDIC:PR-22-2002 2/28/02

  • OTS Announces 13 January CRA Ratings

    The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in January 2002. OTS 02-06 2/27/02

  • FDIC Announces Sale of Residual Interests and Servicing Rights of Superior Federal Bank, FSB

    The FDIC has announced the sale of the servicing rights for and residual interests in $3.7 billion of securitized subprime mortgage loans from the former Superior Federal Bank, FSB, Hinsdale, Illinois. FDIC:PR-21-2002 2/27/02

  • FFIEC Posts UBPR Schedule for 2002

    UPPR's will be available online 35 days after the call report is filed. FFIEC Memo 2/26/02

  • Preliminary Bank Earnings Report

    On February 28 at 10:00 a.m. (ET) FDIC Chairman Donald Powell will conduct a press briefing on the 4th Quarter 2001 Preliminary Bank Earnings Report. 2/26/02

  • FDIC Notice of Agency Meeting

    The FDIC Board of Directors will meet in open session on March 1, 2002. Agenda 2/26/02

  • ABA Issues Money Laundering Resource Guide

    The American Bankers Association is making available a new resource guide it has developed in response to the USA PATRIOT Act requirements to identify and verify account holders. The 17 page publication, which is available online, contains numerous suggestions that institutions will find helpful in developing their own customer verification procedures. 2/26/02

  • FDIC 2000 Annual Report

    The FDIC submits its Annual Report to the President of the U.S. Senate and the Speaker of the U.S. House of Representatives. 2/25/02

  • OCC Revises the Procedures for National Bank to Appeal Agency Decisions and Actions

    National banks and federal branches and agencies of foreign banks are encouraged to contact the ombudsman to discuss any agency policy, decision, or action that might develop into an appealable matter. OCC 2002-9 2/25/02

  • Jacquelyn Fletcher Appointed Chief Information Officer at the OCC

    The OCC announced the appointment of Jacquelyn Fletcher as the agency's new Chief Information Officer. In her new position, she will supervise the agency's information technology programs, including telecommunications, systems development and technology security policy. OCC:NR 2002-13 2/25/02

  • New Savings Bond University

    The U.S. Treasury's Bureau of the Public Debt has launched a new Web-based application designed to help the financial institutions that serve as U.S. Savings Bonds issuing and paying agents train their personnel who handle savings bond transactions. This free, interactive training is called Savings Bonds University. 2/25/02

  • FDIC Reports Business Credit Flowing Despite Recession

    Business credit is more plentiful in this recession than in any other recessionary episode since the early 1970s, according to an FDIC report released. The report cites a generally lower cost of capital, structural changes in banking and the financial markets, and a different regulatory landscape contributing to the current trend. FDIC:PR-20-2002, Business Credit Flowing Despite Recession 2/22/02

  • FDIC Publishes Bank Trends

    This issue of Bank Trends focuses on Business Credit in 2001: More Available than in Past Recessions. 2/22/02

  • FRB Issues List of Foreign Margin Stocks

    The List of Foreign Margin Stocks (Foreign List) is composed of certain foreign equity securities that qualify as margin securities under Regulation T. 67FR8182 2/22/02

  • Revisions to the Call Report

    The FFIEC has approved a number of revisions to the Reports of Condition and Income (Call Report) for 2002. The FFIEC is providing this advance notification to assist you in planning for these changes. FDIC:FIL-13-2002 2/22/02

  • FRB Says State Member Banks May Engage in Equity Hedging

    Any state member bank that seeks to acquire equity securities to hedge the bank's equity derivative transactions must receive the prior approval of the FRB's Director of Banking Supervision and Regulation. In addition, a state member bank may engage in equity hedging activities only to the extent permitted by state law, and the bank must comply with any applicable state notice or approval requirements. FRB Press Release, Board Statement 2/22/02

  • FFIEC Issues Alert on SNMP Vulnerabilities

    The FFIEC has identified sites that are useful in reviewing recently published information on potentially serious vulnerabilities in the Simple Network Management Protocol (SNMP), a software protocol widely used in internal networks and the Internet. Financial institutions should be aware that these vulnerabilities may be exploited to gain unauthorized access to information systems or to cause denial of service attacks resulting in network disruptions. FFIEC recommends that information security personnel review these or other credible sites and take appropriate steps to implement the mitigation procedures to protect the integrity of information systems and safeguard customer information. FFIEC 2/21/02

  • FRB Schedules Next CAC Meeting

    The Federal Reserve Board announced that the Consumer Advisory Council will hold its next meeting on Thursday, March 14. FRB Press Release 2/21/02

  • FDIC's Money Smart Program Celebrates First Anniversary by Announcing Roll-Out of Spanish Version

    In the twelve months since, a comprehensive curriculum was developed by the FDIC and implemented in a series of nationwide roll-outs. This year, Money Smart will become even more accessible through a Spanish version and an interactive CD-ROM. FDIC:PR-19-2002 2/21/02

  • OCC Publishes Interpretive Letters

    OCC has now posted on its Web site the Interpretive Letters, CRA decisions, and conditional approvals it issued in February. The ILs are available in both Word and PDF format. 2/20/02

  • OCC Releases CRA Evaluations For 24 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations. OCC:NR 2002-12 2/20/02

  • Treasury Requests Comments on Information Sharing Practices Among Financial Institutions

    The Secretary of the Treasury, in conjunction with the federal functional regulatory agencies and the FTC, is conducting a study of information sharing practices among financial institutions and their affiliates, as required by the Gramm-Leach-Bliley Act of 1999. Survey responses and comments are due April 1. 67FR7213 2/20/02

  • FDIC Establishes an Advisory Committee on Banking Policy

    The Committee will provide advice and recommendations on a broad range of issues relating to the FDIC's mission and activities, including, but not limited to: the delivery of services by the FDIC, its corporate infrastructure, and policy initiatives in the areas of deposit insurance, supervision of financial institutions, resolutions and management of failing and failed institutions, and other issues impacting the financial services industry. 67FR7373 2/19/02

  • Credit union deposits post strong growth in 2001

    Federally insured credit unions are healthy and doing well based on statistics reported by the nation's 9,984 federally insured credit unions at year-end 2001. NUCA Press Release 2/19/02

  • FRB Finalizes Numerous Changes to Reg C & the Commentary

    Highlights of the amendments to Regulation C include required reporting of some loan pricing, reporting that loans are covered by HOEPA, special requirements for mobile home applications, revisions of important definitions, including "preapproval", "refinancing, and "home improvement". Proposal Final Rule 2/15/02

  • Additional Guidance on Signatures Under Regulation B

    The Federal Reserve Bank of Philadelphia has provided its own detailed guidance on the signature requirements of Regulation B. While it deals with the same subject as the recent FDIC guidance, it presents it in a different way and includes a useful flow chart. We've reworked the Philly Fed's flow chart to make it easier to read and more printer-friendly. You'll find our version under "Reg B - Required Signatures" in the Compliance Tools part of the Banker Tools page. 2/15/02

  • FTC Takes New COPPA Enforcement Actions

    For the fitth time, the Federal Trade Commission has exercised its enforcement authority under the Children's Online Privacy Protection Act to obtain a settlement with a company that violated COPPA by collecting personal information children on the company's Web site without obtaining parental consent. FTC Press Release 2/15/02

  • OCC Announces 20 New Enforcement Actions and 5 Terminations

    The OCC announced 20 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks and 5 terminations of existing enforcement actions. OCC:NR 2002- 11 2/15/02

  • Chairman Powell's Statement on Introduction of Deposit Insurance Reform Legislation

    Chairman Johnson has shown great leadership in developing legislation that will create a stronger, more effective deposit insurance system. FDIC:PR-18-2002 2/15/02

  • Twenty-Five Largest Banking Companies

    The FDIC released a quarterly study of the 25 largest banking companies based on publicly-available data. FDIC:PR-17-2002 2/14/02

  • Comptroller Calls Preemption a Major Advantage of National Bank Charter

    Comptroller of the Currency John D. Hawke, Jr. said that the creation in 1863 of a uniform charter which allows national banks to operate with immunity from many state and local laws has benefited both banks and the nation's consumers. OCC:NR 2001-10 2/13/02

  • FDIC FIL about OFAC Changes

    The FDIC has published FIL-10-2002 to notify banks of a recent OFAC change where OFAC added the Foreign Terrorist Organization (FTO) designation to two Specially Designated Global Terrorists (SDGTs)designated three entities as Specially Designated Global Terrorists. [The OFAC change itself was previously covered on BOL.] FDIC:FIL-10-2002 2/13/02

  • FDIC Issues Alert on Counterfeit Official Bank Checks

    The FDIC has learned that counterfeit official bank checks drawn on four separate financial institutions are in circulation. FDIC:FIL-12-2002 2/13/02

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 22), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-11-2002 2/13/02

  • OFAC List Updated

    OFAC has removed a number of names from the SDN list, including some banks. Get the details on the BOL OFAC page. 2/13/02

  • Remarks by John D. Hawke, Jr. Comptroller of the Currency Before the Women in Housing and Finance Washington, D.C

    2/13/02

  • FRB Issues Revisions to Procedures for Processing Applications and Prior Notifications under Regulation K

    The purpose of the FRB letter is to provide a general description of the procedural changes contained in the revised Regulation K. In addition, the letter establishes procedures for processing the new 12-day and 30-day prior notifications and revises existing processing procedures to be more consistent with procedures for other types of applications, including those filed under Regulation Y. New Procedures for Processing Prior Notifications and Applications under Regulation K, General Consent Limits Under Subpart A of Regulation K, FRB:SR 02-3 2/11/02

  • FRB Issues Guidance on Monitoring Compliance with Reg K

    The FRB has revised its reporting requirements with respect to foreign investments made by U.S. banking organizations pursuant to Subpart A of Regulation K. FRB:SR 02-2 2/11/02

  • Keep up with USA PATRIOT Act Developments

    We've created a special section on the BOL Launch Pad to help keep track of the links relating to regulations and other issuances under the USA PATRIOT Act, as well as a copy of the Act itself. 2/11/02

  • FRB Published Revisions to Regulation C

    The FRB published revisions to its Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The Board approved the revisions at its meeting on January 23, 2002. FRB Press Release, Proposed rule, Final rule 2/8/02

  • OCC Closes NextBank and Appoints FDIC Receiver

    NextBank NA, Phoenix, Arizona, was closed by the OCC and the FDIC was appointed receiver. OCC:NR 2002-09 2/8/02

  • FDIC Approves the Payout of Insured Deposits of NextBank, National Association, Phoenix, Arizona

    The Board of Directors of the FDIC approved the payout of the insured deposits of NextBank, National Association, Phoenix, Arizona. The bank was closed by the OCC, and the FDIC was named receiver. FDIC:PR-16-2002 2/8/02

  • FDIC Report Shows Subprime Mortgage Loan Performance Affected by Recession

    The incidence of significant repayment difficulties among subprime mortgage borrowers is increasing, according to the FDIC. FDIC:PR-14-2002 2/8/02

  • Diamonds, anyone?

    Unless you are interested in the importation of rough diamonds from Sierra Leone and Liberia, there's no need for you to be concerned about the latest interim regulations posted by OFAC. They simply deal with the Rough Diamonds (Sierra Leone & Liberia) Sanctions 2/8/02

  • Statement of FDIC Chairman Don Powell

    "I praise the leadership of Chairmen Oxley and Bachus, and Representatives LaFalce, Gillmor, and Ney, and look forward to swift enactment of deposit insurance reform this year. We appreciate Congress' leadership in recognizing the problems and their aggressive schedule to move forward with legislation." FDIC:PR-15-2002 2/8/02

  • Agencies Publish "Privacy Choices for Your Personal Financial Information"

    In conjunction with National Consumer Protection Week, several federal agencies released a guide to help consumers make informed choices about whether to allow their personal financial information to be shared. Privacy Choices for Your Personal Financial Information guides consumers through the choices they face as a result of the privacy provisions of the Gramm-Leach-Bliley Act of 1999. FRB Press Release, OCC:NR 2002-08, OTS 02-05, FDIC-PR-13-2002, FTC Press Release , SEC:2002-21 2/7/02

  • Federal Trade Commission Announces ID Theft Affidavit

    The FTC unveiled a new tool to assist victims of identity theft restore their good names. The ID Theft Affidavit provides a model form that can be used to report information to many companies, simplifying the process of alerting companies where a new account was opened in the victim's name. FTC Press Release 2/7/02

  • OCC Calls Attention to Treasury Proposal

    The OCC has issued Bulletin OCC 2002-6 to call attention to the upcoming comment deadline on the Treasury Department's proposed rule relating to compliance with two anti-money laundering provisions of the USA PATRIOT Act. 2/6/02

  • FDIC Issues February List of Banks Examined for CRA Compliance

    The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in November 2001. FDIC: PR-12-2002 2/6/02

  • FDIC Issues Guidance on Avoiding Violations of the Spousal Signature Provisions of Regulation B

    The FDIC is issuing guidance to assist banks in complying with the spousal signature provisions of the Equal Credit Opportunity Act (ECOA) and Regulation B, 12 C.F.R. Part 202. Among other things, Regulation B prohibits lending policies and practices that discriminate on the basis of marital status. FDIC:FIL-9-2002 2/5/02

  • OCC Issues Final Rule on Capital Treatment of Nonfinancial Equity Investments

    This final rule requires a series of marginal capital charges on equity investments that increase with the level of those investments relative to the bank's Tier 1 capital. OCC: 2002-5 2/5/02

  • FDIC Approves Assumption of the Insured Deposits of the Oakwood Deposit Bank Company, Oakwood, Ohio

    The FDIC has approved the assumption of the insured deposits of The Oakwood Deposit Bank Company, Oakwood, Ohio, by The State Bank and Trust Company, Defiance, Ohio. FDIC:PR-11-2002 2/5/02

  • FDIC Isssues Guidance on Managing Risks Associated With Wireless Networks and Wireless Customer Access

    Financial institutions are actively evaluating and implementing wireless technology as a means to reach customers and reduce the costs of implementing new networks. In light of this fast-developing trend, the FDIC is providing financial institutions with information about the risks associated with wireless technology and suggestions on managing those risks. FDIC:FIL-8-2002 2/4/02

  • FDIC Announces Receivership of the Oakwood Deposit Bank Company, Oakwood, Ohio

    The Oakwood Deposit Bank Company, Oakwood, Ohio, was closed by the Ohio Superintendent of Financial Institutions, and the FDIC was named receiver. FDIC:PR-10-2002 2/4/02

  • SAR Bulletin Describes Terrorist Activities

    The January SAR Bulletin from FinCEN provides synopses of financial transactions that may be associated with criminal fundraising activities. January SAR Bulletin 2/1/02

  • FDIC Reports on Rising Trend of Corporate Bankruptcies

    The outlook for bank credit quality in 2002 rests on whether the current problems of large corporate borrowers filter down to smaller businesses and consumers, the Federal Deposit Insurance Corporation reports. FDIC:PR-7-2002 2/1/02

  • FDIC Helps Launch Fourth Annual National Consumer Protection Week

    The FDIC has joined federal, state and local organizations and national advocacy groups to launch the fourth annual National Consumer Protection Week (NCPW), to be held from February 3-9. FDIC:PR-8-2002 2/1/02

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

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in December. No administrative hearings are scheduled for February. FDIC:PR-9-2002 2/1/02

  • FDIC Issues Electronic Bulletin on Emerging Issues in Banking and the Economy

    The FDIC has introduced FYI, an electronic bulletin summarizing FDIC analysis of emerging issues in banking and the economy. FYI brings to your desktop current information about the trends that are driving change in the banking industry, plus links to other FDIC publications and data tools. FDIC:FIL-7-2002 2/1/02

12/31/2001

Top Stories for January 2002

  • FRB Explains Antiterrorism Initiatives

    In testimony before a committee of Congress, Richard Spillenkothen, Director of the Federal Reserve's Division of Banking Supervision and Regulation, provided information about the Federal Reserve's work on implementing the USA Patriot Act. Spillenkothen noted that the Treasury Department recently proposed rules on the prohibition of correspondent accounts with shell banks; the recordkeeping requirements on foreign bank ownership and designation of agents for service of legal process for correspondent accounts; and the broker-dealer suspicious activity reporting requirements all reflect consultation with the Federal Reserve. In addition, Treasury is expected to issue additional proposed rules soon to set forth minimum standards for financial institutions to verify the identification of their customers and to require financial institutions to conduct due diligence to identify suspicious activities involving correspondent and private banking accounts. 1/31/02

  • Fed Leaves Interest Rate Unchanged

    The FOMC decided to keep its target for the federal funds rate unchanged at 1-3/4 percent. FRB Press Release 1/31/02

  • OTS Releases December Enforcement Statistics

    The OTS reported that it issued ten enforcement orders to five individuals and five institutions during the month of December, 2001. OTS also terminated three orders previously issued to two individuals and one institution. OTS 02-04 1/31/02

  • OCC Issues Interim Rule Amending its Regulation Regarding the Capital Equivalency Deposits

    This interim rule revises certain requirements regarding CED deposit arrangements to increase flexibility for and reduce burden on certain Federal branches and agencies, based on a supervisory assessment of the risks presented by the particular institution. The OCC is issuing this rule on an interim basis effective January 30, 2002. 67FR4325 (text) 67FR4325 (pdf) 1/30/02

  • FDIC Publishes an International Visitors Training Program

    In response to the many training requests from our foreign visitors and in order to make more efficient and uniform use of resources, the FDIC has developed a three-day International Visitors Training Program designed specifically for officials of foreign banking, deposit insurance and resolution authorities serving in mid-level management or above. 1/30/02

  • Chairman Powell's Statement on FDIC Board Approval of Special Examination Activities

    The agreement establishes a better process for determining when the FDIC will use its authority to examine any insured institution.FDIC:PR-6-2002 1/30/02

  • OCC Publishes the December 2001 Bank Accounting Advisory Series

    The Bank Accounting Advisory Series expresses the OCC's current views on accounting topics of interest to national banks. 1/28/02

  • Regulators Issue Final Rule to Amend their Capital Requirements

    The new capital requirements, which will apply symmetrically to equity investments of banks and bank holding companies, impose a series of marginal capital charges on covered equity investments that increase with the level of a banking organization's overall exposure to equity investments relative to the organization's Tier 1 capital. 67FR3783 (text) 67FR3783 (pdf) FDIC:FIL-6-2002 1/25/02

  • Department of the Treasury's Notice of Funds Availability Invites Applications for the First Accounts Program

    The FDIC Published FIL-5-2002 to announce that the NOFA invites insured depository institutions, and other eligible entities, to apply for grants to provide low-cost electronic, checking or other types of accounts to low- and moderate-income individuals who currently do not have an account with an insured depository institution or an insured credit union. FDIC:FIL-5-2002 1/25/02

  • NCUA Chairman Dennis Dollar's Statement Regarding the President's Recess Appointment of JoAnn Johnson and Deborah Matz

    President George W. Bush announced that he has appointed JoAnn Johnson and Deborah Matz as Members of the National Credit Union Administration Board as recess appointments. NCUA Press Release 1/25/02

  • Statement By NCUA Chairman Dennis Dollar

    NCUA Chairman Dennis Dollar released a statement regarding the National Community Reinvestment Coalition's legal actions concerning the Community Action Plan (CAP). NCUA Press Release 1/25/02

  • FRB Approves Regulatory Changes to HMDA

    The changes to Regulation C will facilitate fair lending analysis and enhance understanding of the home mortgage market generally and the subprime market in particular. FRB Press Release Proposed amendments to Regulation C based on a review of the regulationSupplemental recommendations regarding Regulation C. 1/24/02

  • Identity Theft Is the Top Consumer Fraud Complaint

    The Federal Trade Commission has announced the Top 10 Consumer Fraud Complaints for 2001 and identity theft heads the list, with 42% of the 204,000 complaints entered into the FTC's Consumer Sentinel database last year. Number 5 on the list, with 5%, is "Advance Fee Loans and Credit Protection" fraud. Number 8 is "Foreign Money Offers". FTC has also released a list of tips to help consumers who want to protect themselves from fraud and deception. You may want to consider posting them in your institution or including them in a mailing to customers. 1/24/02

  • Proposed National "Do Not Call" Registry

    The Federal Trade Commission is soliciting comments on a proposal to amend the Telemarketing Sales Rule (TSR) by, among other things, creating a national "do not call" registry. 1/23/02

  • Considering The Unintended Audience

    The National Infrastructure Protection Committee (NIPC) has issued Advisory 02-001 to urge those putting content on the Internet to carefully consider the ramifications of information being accessed by an unintended audience and to encourage Internet content providers to review the data they make available online.1/23/02

  • Obtaining EINs from IRS

    Taxpayers can now call a single toll-free telephone number (866)816-2065 to get an Employer Identification Number (EIN). IRS customer service representatives in three IRS Service Centers will respond to taxpayer calls Monday through Friday from 7:30 a.m.- 5:30 p.m. local time. Taxpayers also can fax requests for an EIN 24 hours a day/7 days a week by dialing the fax number at the location accepting applications from your state. The instructions on the revised Form SS-4 indicate which location will accept your faxed request. For detailed information on Employer Identification Numbers, the IRS has a special page on its Web site. 1/22/02

  • FRB Issues Revisions to Bank Holding Company Supervision Procedures

    To further enhance its risk-focused supervision program, on January 1, 2002, the FRB implemented revised procedures for the supervision of bank holding companies1 with total consolidated assets of $5 billion or less. FRB:SR 02-01 1/22/02

  • OCC and People's Bank of China Assess Money Penalties Against Bank of China

    The OCC and the People's Bank of China announced they have entered into separate actions against Bank of China and its U.S.-based federal branches for misconduct engaged in by prior management. OCC:NR 2002-07 Statement of Comptroller Hawke Statement of People's Bank Statement of Chairman Liu Consent Order1/22/02

  • FDIC Approves the Assumption of the Insured Deposits of Bank of Sierra Blanca, Sierra Blanca, Texas

    The Board of Directors of the FDIC approved the assumption of the insured deposits of the Bank of Sierra Blanca, Sierra Blanca, Texas, by The Security State Bank of Pecos, Pecos, Texas. FDIC:PR-5-2002 1/22/02

  • Change of Address for HMDA and CRA Data

    The OCC is informing all national banks, federal branches and agencies, and District of Columbia banks of the change of mailing address for CRA and HMDA data submissions, which are due March 1, 2002. OCC 2002-4 1/18/02

  • OCC Releases Third Quarter Edition of Quarterly Journal

    The December 2001 issue of the Quarterly Journal, Vol. 20, No. 4 (for third quarter 2001), is now available on-line . This issue features the latest "Condition and Performance of Commercial Banks" and congressional testimony of the agency's executives, including the white paper attachment to Comptroller Hawke's testimony on "Reforming the Funding of Bank Supervision." 1/18/02

  • Consumer Confidential: The Privacy Story

    The Federal Trade Commission has announced that February 3 - 9, 2002 has been designated National Consumer Protection Week ("NCPW") to highlight consumer protection and education efforts around the country. The subject of this year's NCPW is privacy. On the special site they've created for the NCPW, there are noncopyrighted materials freely available for you to use as part of your own NCPW campaign. No reprint permission is required. 1/18/02

  • Fact Sheet on International ACH

    This month, Federal Reserve Financial Services has made available a Fact Sheet on its FedACH International ACH service. 1/18/02

  • Borrower's Loan Number on Recorded Documents

    In case you missed it, there is an interagency opinion letter on the permissibility, under the GLB privacy regs, of putting a borrower's loan number on recorded mortgage documents. 1/18/02

  • OCC Publishes Interpretive Letters

    OCC has now posted on its Web site the Interpretive Letters, CRA decisions, and conditional approvals it issued in December. The ILs are available in both Word and PDF format. 1/18/02

  • OCC Releases CRA Evaluations For 28 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of December 15 through January 14, 2002. OCC:NR 2002-5 1/16/02

  • 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:News Release 2002-6 1/16/02

  • OCC Publishes Inter-Agency Examiner Guidance On Settlement Service Mark-Ups Under RESPA

    The Court of Appeals for the Seventh Circuit held that Section 8(b) of the Real Estate Settlement Procedures Act (RESPA) was not violated when a title company marked-up a fee of a third-party settlement servicer without performing any additional services. OCC 2002-3, Inter-Agency Guidance 1/16/02

  • OCC Issues Guidance on ACH Transactions Involving the Internet

    This bulletin highlights the risks associated with automated clearing house (ACH) transactions that involve the use of the Internet and provides guidance for managing those risks. OCC 2002-2 1/15/02

  • FDIC to Market Hamilton Bank, N.A., Assets

    The FDIC announced that it will market a $1 billion loan portfolio from the failed Hamilton Bank, N.A., Miami, Florida, within the next 60 days. FDIC:PR-4-2002 1/15/02

  • Governor Laurence H. Meyer resigns from FRB

    Laurence H. Meyer submitted his resignation as a member of the Board of Governors of the Federal Reserve System, effective the last day of his term, January 31, 2002. FRB Press Release 1/15/02

  • Hamilton Bank, N.A. Closed by the OCC and FDIC Appointed Receiver

    The OCC acted after finding that the bank, which had assets of $1.3 billion at the time of its closing, was undercapitalized and suffered from deteriorating asset quality, poor earnings, a high level of nonperforming loans and sharply declining capital levels. OCC:NR 2002- 04, FDIC:PR-3-2002 1/14/02

  • FRB Makes Revisions to Bank Holding Company Supervision Procedures

    The FRB implemented revised procedures for the supervision of bank holding companies1 with total consolidated assets of $5 billion or less. FRB:SR 02-01 1/11/02

  • OCC Proposes Interagency Bank Merger Act Application

    The OCC is soliciting comments on proposed revisions to the information collection titled: "‘Interagency Bank Merger Act". 1/11/02

  • NCUA Chairman Dennis Dollar Announces Resumption Of Share Insurance Fund Updates At NCUA Board Meetings

    A once standard practice at NCUA Board meetings dropped in 1997 is making a comeback. NCUA Chairman Dennis Dollar announced today that a quarterly update on the status of the National Credit Union Share Insurance Fund (NCUSIF) will become a part of the official NCUA Board meeting agenda in 2002. NCUA Press Release 1/11/02

  • OTS Withdraws Proposed Holding Company Rule

    The OTS announced that it is withdrawing a proposed rule it published in the November 8 Federal Register covering the authority of some thrift holding companies to engage in the same list of financial activities as the Federal Reserve Board permits financial holding companies under the Gramm-Leach-Bliley Act of 1999. OTS 02-03
    1/10/02

  • FDIC Publishes "Your Insured Deposit" Booklet Available in Chinese and Korean

    The FDIC is pleased to announce that in addition to English and Spanish versions, its "Your Insured Deposit" booklet is now available in Chinese (traditional and simplified) and Korean. FDIC:FIL-4-2002 1/10/02

  • Agencies Adopt Final Rules Concerning the Regulatory Capital Treatment of Nonfinancial Equity Investments

    The FRB, FDIC and OCC, announced the adoption of final rules governing the regulatory capital treatment of equity investments in nonfinancial companies held by banks, bank holding companies and financial holding companies. OCC:NR 2002-03 FDIC-PR-2-2002, FRB Press Release 1/09/02

  • OTS Announces 12 December CRA Ratings

    The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in December 2001. OTS 02-02 1/09/02

  • FRB Publishes Income and Expense Data and Transfers to the Treasury

    Preliminary figures indicate that the Federal Reserve Banks distributed approximately $27.14 billion of their $31.87 billion total income to the U.S. Treasury during 2001. FRB Press Release 1/09/02

  • OCC Issues Examiner Handbook on Custody Services

    The custody business is a bank asset management activity that involves the settlement, safekeeping and reporting of customer marketable securities and cash. The level of assets under custody has increased significantly, as has competition among financial institutions for this business. OCC:NR 2002- 02 "Custody Services" booklet 1/09/02

  • FDIC Seeks Comment on Proposed Policy Statement on Minority-Owned Depository Institutions

    As previously reported in the Federal Register, the FDIC is requesting public comment on the proposed Policy Statement Regarding Minority-Owned Depository Institutions. FDIC:FIL-3-2002 1/09/02

  • FDIC Issues January List Of Banks Examined For CRA Compliance

    The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in October 2001. FDIC:PR-1-2002 1/08/02

  • FRB Announces New Consumer Advisory Council Members

    The Council advises the FRB on the exercise of its responsibilities under the Consumer Credit Protection Act and on other matters in the area of consumer financial services. FRB Press Release 1/07/02

  • OTS Releases November Enforcement Statistics

    The OTS reported that it took six enforcement actions against two individuals and four institutions during the month of November 2001. OTS 02-01 1/07/02

  • OCC Orders Eagle to Cease Payday Lending Program

    The OCC announced that Eagle National Bank has signed a Consent Order directing it to cease all payday lending activities. Eagle has been engaged in payday lending through arrangements with Dollar Financial Group. The OCC acted after finding that Eagle was in material noncompliance with an earlier Memorandum of Understanding entered into with the OCC and was engaged in numerous unsafe and unsound activities. OCC: NR 2002-01 1/04/02

  • FDIC Issues FILs Relating to OFAC

    The FDIC has issued FIL-01-2002 and FIL-02-2002 to alert bankers to OFAC updates that were previously reported on by BOL. Details of all recent OFAC changes are available on the BOL OFAC page.1/03/02

  • FinCEN Proposes SAR Reporting Rule for Brokers and Dealers

    FinCEN is proposing to amend the Bank Secrecy Act regulations to require brokers or dealers in securities to report suspicious transactions to the Department of the Treasury. (text) 1/03/02

  • FedACH Fees Lowered

    The Federal Reserve has announced lower FedACH fees for items
    originated, items received, and for all addenda records, effective February 1, 2002. 1/03/02

11/30/2001

Top Stories for December 2001

  • OFAC List Updated Again

    OFAC has updated its list to add six new SDGTs to the list of terrorists whose assets must be blocked. Get the details on the BOL OFAC page.
    12/31/01

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

    The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published "Monthly Warning Advisory" (Issue No. 21), which contains the names of entities recently brought to OSFI's attention through an inquiry or complaint. FDIC:FIL-111-2001 12/31/01

  • FDIC Issues Interim Guidance Concerning Correspondent Accounts Established or Maintained for Certain Foreign Banking Institutions

    These amendments are intended to make it easier to prevent, detect and prosecute international money laundering and the financing of terrorism. FDIC:FIL-110-2001 12/31/01

  • FDIC Considers New Factor in Bank Merger Act Transactions

    Beginning January 1, 2002, the FDIC, in evaluating and acting on applications filed under section 18 (c) of the Federal Deposit Insurance Act (commonly known as the Bank Merger Act), will expressly consider the anti-money laundering record of each involved insured depository institution in determining the appropriateness of granting consent to the proposed transaction. FDIC:FIL-109-2001 12/31/01

  • OTS Announces 14 November CRA Ratings

    The OTS announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in November 2001. OTS 01-88 12/31/01

  • FRB Issues Correction to the Regulatory Capital Standards Rule

    This corrects the Federal Reserve's regulatory text of a final rule published in the Federal Register of November 29, 2001, regarding the capital treatment of recourse, direct credit substitutes, and residual interests in asset securitizations. 66FR67074 (text) 66FR67074 (pdf) 12/31/01

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

    The FDIC released a list of orders of administrative enforcement actions taken against banks and individuals in November. No administrative hearings are scheduled for January 2002. FDIC:PR-95-2001 12/28/01

  • OFAC List Updated

    SDGTs have now also been designated FTOs. BOL OFAC Page 12/27/01

  • Delays in Mail Delivery to FDIC Addressees in Washington, DC

    Since October 22, 2001, mail service provided by the United States Postal Service (USPS) to FDIC addressees in Washington, DC, has been disrupted, causing delays in mail delivery to the FDIC. FDIC:FIL-107-2001 12/24/01

  • FDIC Issues Alert on Fictitious "Certified" Checks are in Circulation

    The checks bear the name Sanborne Trust Company Bank, 2501 3rd Avenue South, Birmingham, AL. A telephone number, 205-250-7151, is printed on the checks as well as "Member FDIC." The Sanborne Trust Company Bank does not exist. FDIC:FIL-108-2001 12/24/01

  • OFAC List Updated

    OFAC has added five new SDGTs to its listing of Specially Designated Nationals and Blocked Persons. BOL OFAC Page 12/21/01

  • FDIC Hold Line in 2002 Budget

    The Board of Directors of the FDIC approved a 2002 budget of $1.1 billion, which is virtually the same level it approved for 2001. FDIC:PR-94-2001 12/21/01

  • OTS Announces Revised Lending Rule To Enhance Thrift Flexibility

    OTS Director James E. Gilleran announced that OTS changed its lending and investment regulations to allow federal savings associations greater flexibility to provide low-cost credit to their customers and to invest in their communities while still operating safely and soundly. OTS 01-87 12/21/01

  • OCC Publishes the Treasury Guidance on the USA PATRIOT Act

    The notice provides interim guidance to financial institutions on how to comply with the requirements of sections 313 and 319(b) of the USA PATRIOT Act of 2001. These anti-money laundering provisions concern the relationship between U.S. financial institutions and foreign banking institutions. OCC:AL 2001-12 12/21/01

  • FRB Issues Asset-Size Exemption Threshold for HMDA

    The Federal Reserve Board announced that the asset-size exemption threshold for depository institutions under Regulation C (Home Mortgage Disclosure) has been increased from $31 million to $32 million. FRB Press Release 12/20/01

  • IRS Announces Retirement Plan limits that are effective on 1/1/02

    The IRS announced the dollar limitations applicable to pension plans that become effective January 1, 2002 under the
    Economic Growth and Tax Relief Act of 2001 (EGTRRA), and cost-of-living adjustments applicable to dollar limitations for pension plans and other items for Tax Year 2002. IRS:Release No: IR-2001-115 12/20/01

  • FDIC Issues Proposed Rule Regarding the Payment of Post-Insolvency Interest

    The purpose of the rule is to establish a single uniform interest rate, calculation method, and payment priority for
    post-insolvency interest. 66FR65144 (text) 66FR65144 (pdf) 12/18/01

  • Uniform Bank Performance Reports Available to Public

    The September 30, 2001 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public. FFIEC Press Release 12/18/01

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

    The Central Bank of Belize has issued a warning concerning an entity that is not licensed to provide banking and/or financial business in or from within Belize. Any proposed transactions involving Caribbean Building Society should be viewed with extreme caution. FDIC:FIL-105-2001 12/18/01

  • TWO OFAC CHANGES ON DECEMBER 14

    On December 14, 2001, OFAC updated its sanctions list twice, adding new entities whose assets and records are to be blocked each time. The second change was made late in the business day. Full details are available on the BOL OFAC page. 12/17/01

  • Regulators Distribute Call Report for Fourth Quarter 2001

    Banks should complete your fourth quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Except for certain banks with foreign offices, your completed report must be received by January 30, 2002. FDIC:FIL-104-2001 12/17/01

  • OCC Issues Semiannual Assessment

    As earlier reported in the Federal Register, the OCC has established a minimum base amount for the semiannual assessment that is due to be paid by January 31, 2001. OCC 2001-52 Final Rule Correction 12/17/01

  • OCC Announces 6 New Enforcement Actions and 2 Terminations

    The OCC announced 6 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- 103 12/17/01

  • OCC Releases CRA Evaluations For 19 National Banks

    The OCC released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of November 15 through December 14, 2001. OCC:NR 2001-104 12/17/01

  • FRB Announces New Members of its Thrift Institutions Advisory Council

    The Council is an advisory group made up of twelve representatives from thrift institutions. The Council meets three times each year with the Board of Governors to discuss developments relating to thrift institutions, the housing industry, mortgage
    finance, and certain regulatory issues. FRB Press Release 12/17/01

  • OCC Offers New Guidance on Merchant Processing

    The OCC issued new guidance to help examiners and banks understand and manage the risks associated with the merchant processing business. OCC:NR 2001-102 12/14/01

  • New Interagency Privacy Guidance

    The federal regulatory agencies just issued new staff guidance which is a series of Frequently Asked Questions covering various aspects of the privacy rules, from when financial institutions must delivery notices to how to comply with the exception for disclosures under a joint marketing arrangement with an unrelated financial institution. FRB Press Release,
    OCC:NR 2001-101
    , OCC 2001-51 FDIC-PR-93-2001, FDIC:FIL-106-2001
    NCUA Press Release, FTC Press Release, OTS 01-86 12/13/01

  • FRB Issues Proposed Rule to Reg Z Commentary

    As earlier reported, the proposed update would clarify how creditors that place Truth in Lending Act disclosures on the same document with the credit contract may satisfy the requirement for providing the disclosures in a form the consumer may keep before consummation. 66FR64381 12/13/01

  • FRB Issues a Final Rule that Amends its Regulations Aimed at Curbing Predatory Lending

    The amendments to Regulation Z broaden the scope of loans subject to the protections of the Home Ownership and Equity Protection Act (HOEPA) of 1994 by adjusting the price triggers that determine coverage under the act. FRB Press Release 66FR65604 (text) 66FR65604 (pdf) 12/13/01

  • Regulators Propose Common Form for Charter and Federal Deposit Insurance Applications

    To promote consistency and reduce regulatory burden, the OCC, OTS and FDIC have proposed a uniform charter and federal deposit insurance application form. OCC:NR 2001-100, FDIC PR-92-2001 12/13/01

  • Governor Edward W. Kelley, Jr., resigns from FRB<

    Kelley, who has been a member of the Board since May 26, 1987, submitted his letter of resignation to President Bush. In view of his impending departure and in keeping with Board practice, he did not attend the December 11 meeting of the FOMC. FRB Press Release 12/13/01

  • FRB Issues Proposed Revisions Regarding Consumer Credit Disclosures

    The proposed revisions clarify how creditors that place Truth in Lending Act disclosures on the
    same document with the credit contract may satisfy the requirement for providing the disclosures in
    a form the consumer may keep before consummation. FRB Press Release 12/12/01

  • OCC Issues CRA Interagency Examination Procedures

    The Gramm-Leach-Bliley Act imposes disclosure and reporting requirements on national banks and other insured depository institutions with respect to certain agreements related to the Community Reinvestment Act. The OCC's implementing regulation is 12 CFR 35, Disclosure and Reporting of CRA-Related Agreements (CRA Sunshine Regulation). OCC 2001-50 12/12/01

  • Michael J. Zamorski Named FDIC Director of Division of Supervision

    FDIC Chairman Donald E. Powell announced that veteran FDIC official Michael J. Zamorski has been named Director of the Division of Supervision. In this position, he is responsible for overseeing the FDIC's bank supervisory activities and eight Regional Offices.
    FDIC:PR-91-2001 12/12/01

  • FDIC FIL about OFAC Changes

    The FDIC has published FIL-103-2001 to notify banks of the most recent OFAC change where OFAC designated three entities as Specially Designated Global Terrorists. [The OFAC change itself was previously covered on BOL.]
    FDIC:FIL-103-2001 12/12/01

  • FDIC Publishes Call and Thrift Financial Reports

    The September 30, 2001 Call Reports and Thrift Financial Reports are now available. 12/12/01

  • FRB announced that it has revised its Policy Statement on Payments System Risk

    This policy allows certain depository institutions to pledge collateral to the Federal Reserve in order to access additional daylight overdraft capacity above their net debit caps. The revised policy also modifies the net debit cap calculation for U.S.
    branches and agencies of foreign banks. These changes should alleviate liquidity pressures identified during a broad review of the PSR policy. FRB Press Release
    12/12/01

  • FRB eliminate five reprints from the Federal Reserve Bulletin

    The FRB announced that five documents that have regularly been reprinted in the Federal Reserve Bulletin will not appear in the Bulletin after the December 2001 issue. FRB Press Release 12/12/01

  • Fed Lowers Discount Rate

    The Federal Open Market Committee decided to lower its target for the federal funds rate by 25 basis points to 1-3/4 percent. In a related action, the Board of Governors approved a 25 basis point reduction in the discount rate to 1-1/4 percent. FRB Press Release 12/12/01

  • Latest FDIC Consumer News Focuses on FDIC Insurance

    If your bank were to fail, would all your deposits be covered by the FDIC? Here's what you need to know and do to "insure" your money is safe. FDIC Consumer News 12/11/01

  • FDIC, OTS Announce Agreement with Holding Companies of Superior Bank

    Under the terms of the agreement, the Superior holding companies and their owners (the Pritzker and Dworman interests) admit no liability and agree to pay the FDIC $460 million and other consideration. FDIC:PR- 90-2001, OTS 01-84 12/11/01

  • U.S. Banks Generally Well Positioned Entering Recession, According to FDIC Report

    Despite the continuing contraction in the U.S. economy, FDIC-insured institutions remain in generally strong financial shape and will continue to provide credit to finance economic recovery. According to a report released by the FDIC, banks are likely to face
    significantly more difficult economic conditions in the months ahead. FDIC:PR- 89-2001 12/11/01

  • FDIC Reports Third 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 $859 million for the first nine months of 2001, compared to $1.1 billion for
    the same period last year. FDIC:PR-88-2001 12/11/01

  • FDIC Publishes the latest Regional Outlook

    12/11/01

  • Susan Schmidt Bies and Mark W. Olson sworn in as members of the Board of Governors

    Susan Schmidt Bies and Mark W. Olson on Friday took the oath of office as members of the Board of Governors of the Federal Reserve System. The oath was administered by Chairman Alan Greenspan in the Chairman's office. FRB Press Release 12/10/01

  • James E. Gilleran Sworn in as OTS Director

    James E. Gilleran was sworn in as the Director of the Office of Thrift Supervision (OTS), the federal agency that oversees
    the regulation and examination of savings associations. OTS 01-83 12/10/01

  • OCC Reports Derivatives Volume Increases to $51.3 Trillion

    Derivatives held by U.S. commercial banks increased by $3.5 trillion in the third quarter of 2001, to $51.3 trillion, the Office of
    the Comptroller of the Currency reported in its quarterly Bank Derivatives Report. OCC:NR 2001-99 12/10/01

  • Anthrax tests at the FRB

    A preliminary test of mail delivered to a secure, closed mail-handling facility outside the main
    FRB building tested positive for anthrax exposure late Thursday (12/6) afternoon. FRB Press Release 12/10/01

  • OTS Extends Comment Deadline on Authority for Certain Savings and Loan Holding Companies To
    Engage in Financial Activities

    The OTS is extending the comment period for the proposed rule published on November 8, 2001. The proposed rule would clarify what financial activities are authorized for certain savings and loan holding companies after the Gramm-Leach-Bliley Act. This extension will allow interested persons until January 10, 2002 to provide comments on the proposed rule. 66FR63517 12/7/01

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

    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-87-2001 12/7/01

  • FDIC Issues December List of Banks Examined for CRA Compliance

    The FDIC issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in September 2001. FDIC:PR-86-2001 12/7/01

  • Thrift Industry 3rd Quarter Earnings Set Record

    Thrift industry earnings rose by $100 million in the third quarter to a record $2.6 billion, the Office of Thrift Supervision reported. Earnings for the year through the quarter total $7.3 billion and are on pace to break the record earnings of $8.2 billion set in 1999. "This has been the fourth consecutive quarter of earnings growth," said Scott Albinson, OTS's managing director for supervision. "Low interest rates and the strong housing market have been the driving force of the thrift industry over the last year." OTS 01-82 12/7/01

  • OCC Settles Case Against First National Bank of Marin

    The OCC has settled a case against First National Bank of Marin, Las Vegas, in which the bank agreed to cease practices that the OCC alleged are unlawful or unsafe and unsound, and to pay restitution to customers harmed by those practices. Consent Order, Fact Sheet 12/5/01

  • New Harris Poll on Privacy

    There will undoubtedly be a lot of media attention to the new Harris survey on privacy notices. The Harris news release is titled "Privacy Notices Miss the Mark with Consumers" and one of its key findings is that most people find privacy notices too long and complicated. Arm yourself with the facts: l) this survey dealt with privacy notices in general, not financial institution privacy notices specifically; and 2) 70% of respondents agreed that companies "should use the same summary or checklist for their privacy policies". Financial institutions already utilize standardized content. 12/5/01

  • FDIC Issues Guidance on Terrorist Info Requests

    The FDIC has issued a Special Alert to provide guidance for institutions on dealing with the list of FBI's suspected terrorists, as well as with the OFAC list. The guidance helps banks understand the different compliance responsibilities attendant to the two sets of lists. FIL-102-2001 12/5/01

  • Vulnerabilities in I.E. Prompt NIPC Assessment

    The National Infrastructure Protection Center has issued Assessment 01-028 to address vulnerabilities in Microsoft Internet Explorer that are primary means through which several generations of recent mass-mailer computer worms (i.e., LoveLetter, Nimda, Klez, Badtrans.B) propagate. Under certain conditions, any e-mail or Web page with scripting that includes the command "GetObject()" as well as an ActiveX html file can view any file on the user's hard drive. The Assessment contains recommendations on guarding against the vulnerabilities. ASSESSMENT 01-028 12/4/01

  • Regulatory Privacy Workshop Being Held Today

    The Interagency Public Workshop: "Get Noticed: Effective Financial Privacy Notices" is being held today in Washington, D.C. Due to the large volume of registrations, the Workshop had to be moved to a bigger location, and we're told they have a capacity crowd. The agenda includes regulators, representatives of academia and financial institutions, privacy specialists, communications experts, and consumer advocates. Information from the workshop will be available at a later point in time through the FTC Web site in audio, video, transcripts, and a CD-ROM. 12/4/01

  • MORE COMPLIANCE HUMOR

    The latest addition to the BankersOnline.com e-card exchange is a new virtual greeting starring David Dickinson. Drawn straight from a Bankers' Thread post about flood insurance, it features humor only a compliance person could love -- or understand! Check it out now in the Office Humor category of the e-card exchange. And don't miss the "Rambo examiner" card while you're there. 12/4/01

  • America’s Credit Unions Are Adopting Underserved Communities With A Record-Setting 12.5 Million Potential New Members In 2001

    Chairman Dollar Credits NCUA’s Streamlined Process and Regulatory Flexibility Approach With 2001 Numbers Surpassing Year 2000 Numbers By Over 10 Million NCUA Press Release 12/4/01

  • OCC Publishes Its Fees for year 2002

    The purpose of this issuance is to inform all national banks, federal branches and agencies, and District of Columbia banks of fees charged by the OCC for year 2002. Changes are effective January 1, 2002.

  • FDIC Publishes Stats at a Glance

    FDIC-Stats at a Glance provides the latest quarterly and historical data on FDIC-insured institutions, the
    BIF and SAIF insurance funds, and the number of FDIC employees. FDIC Historical Trends, Industry Historical Trends 12/3/01

  • OCC Issues First Quarter 2002 CRA Examination Schedule

    The OCC released its schedule of Community Reinvestment Act (CRA) examinations to be conducted in the first quarter of 2002. OCC:NR 2001-98 12/3/01

  • FDIC Reminds Institutions about HMDA and CRA Data Collection Deadlines

    The FDIC would like to remind institutions that Calendar Year 2001 (CY2001) Home Mortgage Disclosure Act (HMDA) and Community Reinvestment Act (CRA) data must be submitted by March 1, 2002. FIL-101-2001 12/3/01

  • FDIC Issues Alert on Counterfeit Cashier's Checks

    The FDIC has learned that additional counterfeit cashier's checks drawn on the Exchange Bank, Santa Rosa, California, are in circulation. The latest items bear the routing number of the Valley Bank of Kalispell, Kalispell, Montana. FDIC:FIL-100-2001 12/3/01

  • FDIC Issues First 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 first quarter of 2002. FDIC:PR-84-2001 12/3/01

  • Comptroller Underscores National Bank Efforts to Meet the Financial Services Needs of Native Americans

    Comptroller of the Currency John D. Hawke, Jr. highlighted the accomplishments of national banks in overcoming many of the barriers that have historically limited Native Americans' access to credit and financial services in Indian country. OCC:NR 2001-97 12/3/01

  • NCUA Issues Order of Prohibition

    The NCUA has issued an Order of Prohibition against John Humpage, a former collection manager at Santa Fe Credit Union, Topeka, Kansas. NCUA Press Release 12/3/01

Pages

Training View All

Penalties View All

Search Top Stories