R. Kinney Williams - Yennik, Inc.®
R. Kinney Williams
Yennik, Inc.

The Community Banker
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Bank Regulatory News
April 2002

April 30, 2002 - NCUA - Legal Opinion Letter 02-0269 -- Re:  Guaranteeing Deposits

April 30, 2002 - Specially Designated Nationals and Blocked Persons - On April 19, 2002, the Department of the Treasury's Office of Foreign Assets Control amended its listing of Specially Designated Nationals and Blocked Persons by adding ten names of Specially Designated Global Terrorists.

April 30, 2002 -
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 Office of Thrift Supervision, and the National Association of Insurance Commissioners announced today.

April 30, 2002 - OTS Releases March Enforcement Statistics - The Office of Thrift Supervision (OTS) today 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.

April 29, 2002 - Financial Holding Companies - Following is a list of those companies whose elections to become or be treated as financial holding companies are effective.  The list includes only the top-tier holding company in each organization.

April 29, 2002 - FDIC Makes Public March Enforcement Actions; One Administrative Hearing Scheduled - The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in March. One administrative hearing is scheduled for May.

April 29, 2002 - Circulation of Fictitious IRS Forms and Bank Letters - The Federal Deposit Insurance Corporation (FDIC) is alerting you that some of your customers may be the unwitting subjects of a new fraud scheme that uses fictitious Internal Revenue Service (IRS) forms and fraudulent bank correspondence.

April 29, 2002 - NCUA -
Buckham Named Director of Office of Corporate Credit Unions - The National Credit Union Administration today announced the selection of Kent D. Buckham to the position of director of the Office of Corporate Credit Unions


April 26, 2002 - The Federal Reserve Board on Friday announced the issuance of a consent Order of Assessment of a Civil Money Penalty against the Community Bank of Granbury, Granbury, Texas, a state member bank.

April 26, 2002 - Productivity, Innovation, Education Key to Better Living Standards: Says St. Louis Fed's Poole - Keeping U.S. living standards high depends mainly on continuing three trends: an improving productivity rate, an entrepreneur-friendly climate that fosters innovation, and strong, widely available higher education.

April 25, 2002 - OTS Releases February Enforcement Statistics - The Office of Thrift Supervision (OTS) today 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. The orders were:

April 25, 2002 - 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 today by the Federal Deposit Insurance Corporation.

April 25, 2002 -
Alert Regarding Bank Investment Securities And Custodial Accounts Held At Securities Broker-Dealers - The Federal Deposit Insurance Corporation (FDIC) is alerting you to concerns it has identified regarding bank custodial relationships with failed broker-dealers.

April 25, 2002 -
Notice of Proposed Rulemaking - The Office of the Comptroller of the Currency published the attached notice of proposed rulemaking in the Federal Register on April 25, 2002 (NPRM).  The NPRM amends 12 CFR part 8 of its regulations regarding assessments for independent trust banks to update 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).
Press Release - www.occ.treas.gov/ftp/bulletin/2002-15.txt
Attachment - www.occ.treas.gov/ftp/bulletin/2002-15a.pdf

April 25, 2002 - Identity Theft: Organized Gang and Teller Collusion Schemes - The Office of the Comptroller of the Currency (OCC) has been advised of fraud schemes involving organized gangs and newly hired bank tellers.  Organized gangs are

aggressively recruiting bank tellers to cash forged savings account withdrawals from customer accounts, and to cash stolen United States Treasury checks.

 April 24, 2002 - Is there still an investment overhang , and if so, should we worry about it? - Some sectors of the economy may still have excess investment in capital goods, or overhang, leading to below-trend growth in the near future, according to new research featured in the latest Chicago Fed Letter.

April 24, 2002 -
Chicago Fed Announces Official Promotions - The Federal Reserve Bank of Chicago today announced that its Board of Directors has approved the promotion of five Vice Presidents for the Bank.

April 24, 2002 - FDIC Seeks Ideas on Reducing Burden on Banks and the Public, While Improving the FDIC's Efficiency - One of my 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. I am particularly interested in ways the FDIC can reduce burden on financial institutions and the public. To that end, we have been busy identifying ways to focus our time on important areas of risk.

April 24, 2002 - Entities That May Be Conducting Banking Operations In the United States Without Authorization - The Office of the Comptroller of the Currency (OCC) has advised us that the following entity may be conducting banking business in the United States without authorization:

April 24, 2002 – NCUA -
Matz Meets with Wisconsin League – Reconfirms Commitment to Dual Chartering and Stresses the Importance of Serving All Members - NCUA Board Member Deborah Matz reaffirmed her commitment to the dual chartering system today in discussions with Wisconsin Credit Union League members who represent primarily state-chartered credit unions.

April 23, 2002 - Agencies Outline Risks of Parallel-Owned Banking Organizations - The federal bank and thrift regulatory agencies today issued guidance that reviews the risks of parallel-owned banking organizations. The guidance sets forth an approach for supervising those risks.
Press Release -  www.federalreserve.gov/boarddocs/press/General/2002/20020423/default.htm
Press Release - www.fdic.gov/news/news/press/2002/pr4602.html
Press Release - www.fdic.gov/news/news/financial/2002/fil0235.html
Press Release - http://www.occ.treas.gov/ftp/bulletin/2002-14.txt
Attachment - www.occ.treas.gov/ftp/bulletin/2002-14a.pdf 
Press Release - www.occ.treas.gov/ftp/release/2002-37.txt
Attachment - www.occ.treas.gov/ftp/release/2002-37.pdf
Press Release - www.ots.treas.gov/docs/77222.html

April 23, 2002 - Testimony of Chairman Alan Greenspan - Federal deposit insurance reform - Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate
April 23, 2002

April 23, 2002 - Comptroller Hawke Urges Senate to End Inequitable Treatment of National Banks - Comptroller of the Currency John D. Hawke, Jr. told a Senate panel today 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.

April 23, 2002 – NCUA - Matz Encouarges Credit Unions to Partner with Community Groups -  NCUA Board Member Deborah Matz urged Texas credit unions April 22 to partner with community services groups, such as the Neighborhood Reinvestment Corporation and local NeighborWorks Programs, because these groups perform services for people of modest means who can benefit from credit union contributions and assistance. 

April 23, 2002 – NCUA - Guidelines for the Supervisory Review Committee - This policy statement amends Interpretive Ruling and Policy Statement (IRPS) 95-1 to add Regulatory Flexibility Program issues to the list of material supervisory determinations that credit unions may appeal to NCUA’s Supervisory Review Committee.

April 22, 2002 - The Federal Reserve Board today announced its approval of the applications by Charter One Financial, Inc., Cleveland, Ohio, and Charter-Michigan Bancorp, Inc., Dearborn, Michigan, to acquire Charter One Bank, N.A., Cleveland, Ohio.

April 22, 2002 - FDIC Adopts Final Policy Statement on Minority Depository Institutions - The Federal Deposit Insurance Corporation (FDIC) has adopted the attached final Policy Statement Regarding Minority Depository Institutions.

April 22, 2002 - OTS Proposes Revisions to Parity Act Regulations - The Office of Thrift Supervision (OTS) announced today 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.

April 22, 2002 – NCUA - Closed Board Meeting – April 18, 2002 - The Board approved an order of conservatorship for S.M.W. Local #110 Federal Credit Union, which the credit union’s board of directors had requested under Section 206(h)(1)(B) of the Federal Credit Union Act.


April 19, 2002 –NCUA - S.M.W. Local #110 Federal Credit Union Placed Into Conservatorship - The National Credit Union Administration (NCUA) Board has placed S.M.W. Local #110 Federal Credit Union of Louisville, Ky., into conservatorship at the credit union board’s request, with the goal of continuing service to members at a safe and sound institution.

April 19, 2002 - 2001 Annual Report - The Federal Reserve Bank of Kansas City has published its 2001 annual report featuring a message from President Thomas M. Hoenig focusing on the Federal Reserve's response to the tragic events of September 11 and the regional Bank's role in the Federal Reserve System.

April 19, 2002 - The Federal Reserve Board today announced its approval of the application by Chinatrust Financial Holding Company, Ltd., Taipei, Taiwan, to become a bank holding company by indirectly acquiring Chinatrust Bank (U.S.A.), Torrance, California.

April 18, 2002 - FDIC And Operation Hope Sign Mou Agreement Promoting Financial Education In Underserved Communities - The Federal Deposit Insurance Corporation (FDIC) and Operation Hope, Inc. announced today a pilot program to help strengthen communities across America through financial education.

April 18, 2002 – NCUA - Recent Final Rule -- 12 CFR Part 701 - Final amendments on Chartering and Field of Membership (IRPS 02-2)

April 18, 2002 – NCUA - Statement of NCUA Board Member JoAnn Johnson on Final Rule Repealing CAP Proposal

April 18, 2002 – NCUA - Statement of Board Member Deborah Matz - Board Meeting - Statement on Community Action Plan (CAP)

April 18, 2002 – NCUA - Statement of NCUA Chairman Dennis Dollar On Final Rule Repealing CAP Proposal

April 18, 2002 – NCUA - OCUD Programs -The Office of Credit Union Development is responsible for the administration of several programs designed to establish, strengthen, and improve the operation of small and low-income designated credit unions.

April 18, 2002 - New Data Collection Offers Insight Into Noninterest Income Activity At U.S. Banks - 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, according to a report released today by the Federal Deposit Insurance Corporation.

April 17, 2002 - Testimony of Chairman Alan Greenspan - Monetary policy and the economic outlook - Before the Joint Economic Committee, U.S. Congress

April 17, 2002 - International Finance Discussion Papers - Equity Prices, Household Wealth, and Consumption Growth in Foreign Industrial Countries: Wealth Effects in the 1990s

April 17, 2002 - Articles from the Federal Reserve Bulletin April 2002 - Consumers and Credit Disclosures: Credit Cards and Credit Insurance

April 17, 2002 - Chairman Powell's Statement On Passage Of Deposit Insurance Reform Legislation By House Financial Services Committee  - "This is great news. The House Committee passed a good bill today and we will continue working to pass deposit insurance reform this year." Don Powell, FDIC Chairman

April 17, 2002 - Midwest Economic Recovery Depends On Region's Manufacturing - Economists at a recent Federal Reserve Bank of Chicago workshop forecast that the recovery of the Midwest economy will depend on how well the region's manufacturing sector improves, according to the May issue of the Chicago Fed Letter.

April 16, 2002 - Miles White Appointed To Board Of Directors Of Federal Reserve Bank Of Chicago - Miles D. White, chairman of the board and chief executive officer of Abbott Laboratories, has been appointed to a three-year term on the board of directors of the Federal Reserve Bank of Chicago, it was announced today.

April 16, 2002 - OCC Announces 12 New Enforcement Actions and 2 Terminations - The Office of the Comptroller of the Currency today 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.

April 16, 2002 - NCUA Letter to Federal Credit Unions 02-FCU-04 -- Weblinking Relationships -Electronic Financial Services (Part 721.3(c)) - authorizes FCUs to offer through electronic means any services, products, functions, or activities that a credit union could otherwise perform, provide, or deliver to members

April 16, 2002 - OCC Releases CRA Evaluations For 27 National Banks - The Office of the Comptroller of the Currency today released a list of Community Reinvestment Act performance evaluations that became public during the period of  March 15 through  April 14, 2002.

April 15, 2002 - OTS Updates Thrift Holding Companies Handbook - The Office of Thrift Supervision (OTS) today announced publication of an updated Holding Companies Handbook for thrifts.

April 15, 2002 - FDIC And Neighborhood Reinvestment Corporation Announce
Program To Promote Financial Education And Homeownership - The Federal Deposit Insurance Corporation and the Neighborhood Reinvestment Corporation announced today a pilot program to help revitalize communities across America through financial education. 

April 11, 2002 -  NCUA -
Chairman Dollar Calls For Greater Development Of
Latino And Hispanic Credit Union Service
- NCUA Chairman Dennis Dollar told over 200 credit union leaders attending the 2nd annual Latino Credit Union Conference sponsored by the National Federation of Community Development Credit Unions here today that extending credit union access to more Latino and Hispanic communities was a top priority at the National Credit Union Administration.


April 11, 2002 - Gilleran Announces OTS Restructuring Plans - Office of Thrift Supervision 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.

April 11, 2002 - OTS Announces 21 March CRA Ratings - The Office of Thrift Supervision today announced savings associations' Community Reinvestment Act  performance evaluation ratings that became available in March 2002.

April 11, 2002 – NCUA-Chairman Releases Study On Deposit Insurance Reform Legislation, Says Agency Favors Coverage Parity For Credit Unions But Impact On NCUSIF Ratio Would Be Felt - Equity Ratio Reduction From Increased Coverage Not Likely To Require Premium, Could Delay Dividends For At Least Two Years If Proposed Legislation Enacted
Press Release: www.ncua.gov/news/press_releases/nr041102.html
Attachment: www.ncua.gov/ref/special/NCUADepositInsuranceSystemLegislationAnalysis.pdf

April 11, 2002 - Summary of “Lessons Learned” and Implications for Business Continuity February 13, 2002 - Discussion note prepared by staffs of the Federal Reserve, the New York State Banking Department, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission, for discussion at a meeting on February 26, 2002 at the Federal Reserve Bank of New York.

April 11, 2002 - Risk-Based Capital - This bulletin transmits the final rule, "Risk-Based Capital Standards: Claims on Securities Firms" that was published in the Federal Register on April 9, 2002.
Press Release: www.occ.treas.gov/ftp/bulletin/2002-13.txt
Attachment: http://www.occ.treas.gov/ftp/bulletin/2002-13a.pdf

April 11, 2002 - The Federal Reserve Board today announced its approval of the application by SinoPac Holdings, Taipei, Taiwan, to become a bank holding company by indirectly acquiring Far East National Bank (U.S.A.), Los Angeles, California.

April 10, 2002 - 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 today.

April 9, 2002 - Agencies issue final rule lowering risk weighting for claims on securities firms - The federal banking agencies today issued a final rule amending their risk-based capital standards for banks, bank holding companies and savings associations (institutions) to reduce the risk weight applied to claims on, or guaranteed by, qualifying securities firms.
Press Release: www.federalreserve.gov/boarddocs/press/BoardActs/2002/20020409/
Press Release: www.fdic.gov/news/news/financial/2002/fil0231.html
Press Release: http://www.ots.treas.gov/docs/77217.html
Press Release: www.occ.treas.gov/ftp/release/2002-33.txt 
OCC Attachment: www.occ.treas.gov/ftp/release/2002-33a.pdf

April 9, 2002 - Proposals for Comment - The following proposals were recently made available for public comment. Comments may be submitted to the Federal Reserve via the web using the links below. Comments may also be submitted in writing or via electronic mail (see the text of the proposal for contact details).

April 8, 2002 - Remarks by John D. Hawke, Jr., Comptroller of the Currency, Before the Consumer Bankers Association, Arlington, Virginia - Financial Literacy: A Key to New Banking Markets

April 8, 2002 - 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 today.

April 8, 2002 - 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 Office of Thrift Supervision  is proposing rule changes governing mutual thrifts, mutual holding companies and mutual-to-stock conversions.

April 5, 2002 - Supervisory Staff Reports - From time to time, staff members of the Board and the Reserve Banks will undertake a study of a particular banking activity or an issue of importance to the banking industry for a better understanding of industry practices and potential supervisory and regulatory implications.


April 5, 2002 - WARNING--Circulation of Fictitious IRS Formsand Bank Letters - Attached are samples of a fictitious document that is not a genuine IRS Form and a fraudulent letter addressed to a bank customer purporting to be from the customer's bank.
News Release: www.occ.treas.gov/ftp/alert/2002-3.txt
Attachment: www.occ.treas.gov/ftp/alert/2002-3a.pdf
Attachment: www.occ.treas.gov/ftp/alert/2002-3b.pdf

April 5, 2002 - FDIC Issues April List Of Banks Examined For CRA Compliance - The Federal Deposit Insurance Corporation (FDIC) today issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act.

April 5, 2002 - NCUA Chairman Informs Credit Unions Regarding HUD Rural Housing and Economic Development Program - National Credit Union Administration Chairman Dennis Dollar informed credit unions this week that the U.S. Department of Housing and Urban Development last week released a $25 million Notice of Funds Availability for Rural Housing and Economic Development programs which he believes may aid eligible and interested credit unions who choose to apply in planning to develop unique programs for expanding affordable housing and financial services.

April 4, 2002 - OTS Announces Nine February CRA Ratings - The Office of Thrift Supervision today announced savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in February 2002.
April 4, 2002 - Recession's Mildness Due in Large Part to Better Monetary Policy: St. Louis Fed's Poole - Early and sustained action by the Federal Reserve's Federal Open Market Committee (FOMC) to reduce the federal funds rate target played a key role in lessening the effects of the recent recession, said William Poole, president of the Federal Reserve Bank of St. Louis. Poole spoke at Lambuth University to students, faculty and Jackson community leaders.

April 4, 2002 - Annual Report on the Freedom of Information Act for Fiscal Year 2001 - The following information is submitted to the U.S. Department of Justice by the Federal Open Market Committee of the Federal Reserve System (FOMC) in accordance with the requirements of the Freedom of Information Act (5 U.S.C. § 552), as amended in 1974 by Public Law 93-502.

 April 3, 2002 - FFIEC Annual Report for 2001

April 3, 2002 - The Federal Reserve Board on Wednesday issued revisions to its Regulation Z (Truth in Lending) official staff commentary, which applies and interprets the requirements of the regulation.

April 3, 2002 - Marquette High Students Win First Place at District Fed Challenge; Will Compete at Fed Challenge Finals in Washington, D.C. - A team of five students from Marquette High School in Chesterfield, Mo., captured first place in the District contest of the Fed Challenge, an economics competition sponsored by the Federal Reserve Bank of St. Louis.

April 3, 2002 – NCUA - Southern New England Federal Credit Union to Serve Members of Pirelli Federal Credit Union - The National Credit Union Administration announced yesterday that the agency placed Pirelli Federal Credit Union of New Haven, Conn. into liquidation and transferred all of its members’ share accounts to Southern New England Federal Credit Union, also of New Haven.

 April 2, 2002 - Does "Relationship Lending" Protect Small Banks from Economic Downturns - Even though most U.S. community banks do most of their business in their own regions, a new analysis from the Federal Reserve Bank of St. Louis suggests that those banks are able to withstand local economic downturns.

April 2, 2002 - For Love or Money: Why Married Men Make More - Do married men make more money than single men because (a) employers are biased toward married men, (b) marriage makes men more productive, or (c) highly productive men are simply more likely to be married? That's the $64,000 question explored by two researchers at the Federal Reserve Bank of St. Louis.

April 2, 2002 – NCUA - Regulatory Relief - On August 10, 2001, the House Committee on Financial Services Chairman Mike Oxley (R-OH) wrote NCUA Chairman Dennis dollar requesting that NCUA provide the Committee with suggestions that could be included in legislation that would lessen the regulatory burden on insured depository institutions and improve productivity.

April 2, 2002 - Molly Schar Joins National Credit Union Administration Office of Public and Congressional Affairs - The National Credit Union Administration (NCUA) announces the selection of Molly Schar to join the Office of Public and Congressional Affairs (PACA) as writer-editor.  Schar assumed her position in late March.

April 1, 2002 - Financial Holding Companies - Under the Bank Holding Company Act, bank holding companies may elect to be financial holding companies. 


PLEASE NOTE:  Some of the above links may not function properly because the regulatory agency has changed the URL.  Please e-mail us at examiner@yennik.com if we can be of assistance.  

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