Bank Regulatory News
August 1999

August 31, 1999 - The Federal Reserve Board today published an interim rule to Regulation DD, which implements the Truth in Savings Act. The rule permits depository institutions to deliver disclosures on periodic statements to a consumer's e-mail account or post them on a web site, if the consumer agrees.  The interim rule is effective September 1, 1999.

August 31, 1999 - The Federal Reserve Board today requested comment on revised proposals to permit electronic delivery of federally mandated disclosures under five consumer protection regulations: B (Equal Credit Opportunity), E (Electronic Fund Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD (Truth in Savings).  Comment is requested by October 29.

August 31, 1999 - OCC Issues Fourth Quarter 1999 CRA Examination Schedule - The Office of the Comptroller of the Currency (OCC) today released its projected schedule of Community Reinvestment Act (CRA) examinations to be conducted in the fourth quarter of 1999.  http://www.occ.treas.gov/cra/craq499.pdf for schedule.

August 31, 1999 - President Clinton signed an Executive Order, effective July 6, 1999, imposing an assets freeze and trade embargo against the Taliban in Afghanistan.

August 31, 1999 - The Bank Insurance Fund (BIF) earned $219 million for the first six months of 1999, according to an FDIC management report on the Corporation's unaudited financial statements. The Savings Association Insurance Fund (SAIF) earned $226 million for the same period.

August 31, 1999 - The FDIC has issued the public list of its institutions to be examined under regulations implementing the
Community Reinvestment Act (CRA).

August 30, 1999 - The Federal Reserve Board today announced its approval of the proposal of AmSouth Bancorporation, Birmingham, Alabama, to merge with First American Corporation, Nashville, Tennessee, and thereby acquire its subsidiary bank, First American National Bank, and its nonbank subsidiaries, including First American Federal Savings Bank, all in Nashville, Tennessee.

August 26, 1999 - Federal banking and credit union agencies announced today the execution of an agreement with Global Payment Systems LLC, Atlanta, Georgia.  The agreement addresses the Year 2000 readiness of Global's credit card-issuing services offered through its Westlake, Ohio, facility.

August 26, 1999 - The Office of Thrift Supervision (OTS) today issued a final rule making it clear that a federal savings association's existing authority to act as surety also includes the ability to act as a guarantor. The rule also clarifies that a federal savings association may issue letters of credit, eliminating confusion regarding the scope of activities authorized for federal savings associations that was caused by the deletion of a regulation in 1996.

August 25, 1999 - OCC RELEASES CRA EVALUATIONS FOR 56 NATIONAL BANKS
WASHINGTON, DC -- The Office of the Comptroller of the Currency (OCC) today released a list of Community Reinvestment Act (CRA) performance evaluations that became public during the period of July 15 through August 14. The list contains only national banks and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.

August 25, 1999 - Revision of The Financial Institution Employee's Guide to Deposit Insurance
Enclosed is a revised version of the FDIC's publication The Financial Institution Employee's Guide to Deposit Insurance. It is a comprehensive document explaining the FDIC's deposit insurance rules in a non-technical way, and providing background and instructional materials on deposit insurance. This guide includes the amendments to the deposit insurance rules that became effective July 1, 1998, and April 1, 1999.

August 23, 1999 - FDIC Inspector General Gaston L. Gianni, Jr., announced today that Jay Sugarman of North Miami Beach, FL, President of Jay Sugarman Auctioneers (JSA), a division of American Auctioneers, Inc., also of North Miami Beach, and JSA pled guilty on August 16, 1999, to charges of embezzling $118,130 from the proceeds of auctions he conducted for the FDIC in the early 1990s. The plea agreement has been filed in the U.S. District Court for the Southern District of Florida, Miami, FL.

August 23, 1999 - A continuation of recent low prices for agricultural and industrial commodities -- from wheat and corn to oil, chemicals and steel -- could result in higher credit losses for insured depository institutions exposed to these sectors, according to a report issued today by the Federal Deposit Insurance Corporation. In the third quarter edition of the Regional Outlook, FDIC analysts examine the effects that falling commodity prices are having on employment levels, corporate profits and some measures of credit risk across a wide range of industries.

August 23, 1999 - The Federal Reserve Board today announced its approval of the proposal of Texas Regional Bancshares, McAllen, Texas ("Texas Regional"), to merge with Harlingen Bancshares, Inc., and thereby to acquire Harlingen's wholly owned subsidiary, HN Bancshares of Delaware, Inc., which in turn owns Harlingen National Bank, all in Harlingen, Texas. The Board also approved the applications of Texas Regional's lead bank, Texas State Bank, McAllen, Texas, to merge with Harlingen National Bank, and to establish branch offices at the six current offices of Harlingen National Bank.

August 23, 1999 - The Office of Thrift Supervision (OTS) has granted a federal thrift charter to First Tennessee National Corporation, a Memphis bank holding company, to form a thrift institution based in Bristol, Va. The new thrift, First Horizon, FSB, will operate 65 loan production offices (LPOs) providing both prime and subprime consumer loans to customers as well as other traditional thrift products and services.

August 20, 1999 - The Federal Reserve Board today announced the issuance of a consent Order to Cease and Desist against the American Bank, Wichita, Kansas, a state member bank.   The Order was issued jointly with the State of Kansas Office of the State Bank Commissioner.

August 20, 1999 - The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative
enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for September.

August 20, 1999 - Gallup Survey of FDIC's Law, Regulations and Related Acts Loose-leaf Service
Over the next several weeks, the FDIC will sponsor a survey of our Law, Regulations, and Related Acts loose-leaf service. Commonly referred to as the FDIC's "Rules and Regs," the three-volume compendium contains laws, regulations and other material related to the banking industry. All insured institutions receive a free subscription to the loose-leaf service, with six updates per year.

August 19, 1999 - FDIC Announces the Availability of the Year 2000 Customer Brochure in Chinese and Korean and the Year 2000 Customer "Statement Stuffer" in Spanish
The FDIC's brochure The Year 2000 Date Change is now available in Chinese and Korean. The English version of this brochure, which describes the efforts of financial institutions and the Federal Financial Institutions Examination Council to address the Year 2000 computer problem, was distributed to all insured financial institutions in FIL-67-98, dated June 26, 1998, and in Spanish in FIL-89-98, dated August 19, 1998.

August 16, 1999 - Personal Attention Sets Small Banks Apart
ST. LOUIS, Mo. — Small banks (those with assets less than $100 million) have been less successful than midsized banks
in reducing overhead and generating non-traditional sources of revenue in the 1990s. Nevertheless, consumer demand for
personal attention should allow small banks to remain competitive in the next century.

August 12, 1999 - OTS Releases July National CRA Ratings - The Office of Thrift Supervision (OTS) today released savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in July 1999.

August 11, 1999 - The Federal Reserve Board today announced the execution of a Written Agreement by and between Belmont Bancorp, Bridgeport, Ohio, and the Federal Reserve Bank of Cleveland.

August 9, 1999 - The Financial Management Service of the Department of the Treasury (Treasury) published the attached notice in the Federal Register on July 16, 1999. The notice describes the required attributes and optional features of the Electronic Transfer Account (ETA ). In addition, as an appendix to the notice, Treasury published the ETA Financial Agency Agreement (FAA) that Treasury will enter into with financial institutions that offer ETAs .

August 6, 1999 - OTS Releases June Enforcement Statistics
WASHINGTON, D.C., August 6, 1999 -- The Office of Thrift Supervision (OTS) reported
today that it completed one enforcement action in June 1999.

August 5, 1999 - FDIC ISSUES JULY LIST OF BANKS EXAMINED FOR CRA COMPLIANCE
The FDIC today issued its monthly list of state nonmember banks recently evaluated for
compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that
became available in July 1999.

August 4, 1999 - The Federal Reserve Board today published proposed revisions to Regulation B, which implements the Equal Credit Opportunity Act. Comment is requested by November 10,
1999.

August 2, 1999 - Regulators Report That 99% of All Federally Insured Financial Institutions are Prepared for the Year 2000
WASHINGTON, D.C. - Federal bank, thrift, and credit union regulatorsannounced today that 99% of federally insured financial institutions have completed testing of critical systems for Year 2000 readiness. In their announcement, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision noted that most financial
institutions are already using Year 2000 ready systems on a daily basis without problems.