The E-mail Banking News
(Bank Regulatory News)

August 2018

Yennik, Inc. has clients in 43 states that rely on our cybersecurity audits to ensure proper Internet security settings and to meet the independent diagnostic test requirements of FDIC, OCC, FRB, and NCUA, which provides compliance with Gramm-Leach Bliley Act 501(b) s well as the penetration test complies with the FFIEC Cybersecurity Assessment Tool regarding resilience testing The cybersecurity penetration audit and Internet security testing is an affordable-sophisticated process than goes far beyond the simple scanning of ports.  The audit focuses on a hacker's perspective, which will help you identify real-world cybersecurity weaknesses.  For more information, give R. Kinney Williams a call today at 806-798-7119 or visit http://www.internetbankingaudits.com/.
FFIEC information technology audits - As a former bank examiner with over 40 years IT audit experience, I will bring an examiner's perspective to the FFIEC information technology audit for bankers in Texas, New Mexico, Colorado, and Oklahoma.

August 16, 2018 - GoCPS: A First Look at Applications and Offers By Lisa Barrow, Lauren Sartain, & Marisa de la Torre - Chicago Public Schools offers many options when it comes to high school enrollment. In fact, about three of every four incoming ninth graders choose to attend a high school other than their assigned neighborhood school. www.chicagofed.org/~/media/others/people/research-resources/barrow/2018-barrow-sartain-delatorre-go-cps-white-paper-pdf.pdf

August 16, 2018 - Federal Reserve Board announces termination of enforcement actions with Flagstar Bancorp, Inc., and Santander Holdings USA, Inc. www.federalreserve.gov/newsevents/pressreleases/enforcement20180816a.htm

August 16, 2018 - Federal Reserve to offer seven-day term deposits on August 23 - The Federal Reserve plans to continue its previously announced periodic testing of the Term Deposit Facility with one operation in August. www.federalreserve.gov/newsevents/pressreleases/monetary20180816a.htm

August 15, 2018 - Community Reinvestment Act: Revisions to Impact of Evidence of Discriminatory or Other Illegal Credit Practices on Community Reinvestment Act Ratings - The Office of the Comptroller of the Currency is issuing this bulletin to make public the revised Policies and Procedures Manual 5000-43, which clarifies the OCCís policy for applying the regulatory framework to determine the effect of evidence of discriminatory or other illegal credit practices on the Community Reinvestment Act rating of a national bank, federal savings association, or federal branch. www.occ.treas.gov/news-issuances/bulletins/2018/bulletin-2018-23.html

August 15, 2018 - OCC Hosts Compliance and Operational Risk Workshops in Houston - The Office of the Comptroller of the Currency will host two workshops in Houston at the Houston Marriott South at Hobby Airport, September 25 and 26, for directors of national community banks and federal savings associations supervised by the OCC. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-79.html

August 15, 2018 - Bank Accounting Advisory Series Updated - The Office of the Comptroller of the Currency today released an update to the Bank Accounting Advisory Series. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-78.html

August 15, 2018 - Statistical Release - Industrial Production and Capacity Utilization - G.17 - Industrial production edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months. Manufacturing production increased 0.3 percent, the output of utilities moved down 0.5 percent, and, after posting five consecutive months of growth, the index for mining declined 0.3 percent. www.federalreserve.gov/releases/g17/Current/

August 14, 2018 - St. Louis Fed Announces 2018-2019 Student Board of Directors - High school seniors from across the greater St. Louis area are selected based on a rigorous application process, which includes an essay and letters of recommendation. www.stlouisfed.org/news-releases/2018/08/14/st-louis-fed-announces-2018-2019-student-board-of-directors 

August 14, 2018 - Report to the Congress on Government-Administered, General-Use Prepaid Cards, August 2018 - The Board's annual report to the Congress on the use of general-use prepaid cards in federal, state, and local government-administered payment programs and on the interchange fees and cardholder fees charged with respect to the use of those cards. www.federalreserve.gov/publications/government-prepaid-executive.htm

August 14, 2018 - Hidden Baggage: Behavioral Responses to Changes in Airline Ticket Tax Disclosure - Sebastien Bradley and Naomi E. Feldman - We examine the impact on air travelers of an enforcement action issued by the U.S. Department of Transportation in January 2012 that required U.S. air carriers and online travel agents to incorporate all mandatory taxes and fees into their advertised fares. www.federalreserve.gov/econres/feds/files/2018057pap.pdf

August 14, 2018 - Federal Reserve Board announces termination of enforcement actions with HSBC North America Holdings, Inc., Capital Funding Bancorp, Inc. and CFG Community Bank, and CommerceWest Bank.  www.federalreserve.gov/newsevents/pressreleases/enforcement20180814a.htm

August 13, 2018 - NCUA - McWatters: Financial Literacy is Key to Protecting Service Members - Financial regulatory agencies, non-profits, schools financial institutions, and the military must work together to improve the personal finance knowledge of service members and their families to prevent them from being financially exploited, NCUA Board Chairman J. Mark McWatters said today. www.ncua.gov/newsroom/Pages/news-2018-aug-mcwatters-financial-literacy-key-protecting-service-members.aspx

August 13, 2018 - FEDS Notes - SOMA's Unrealized Loss: What does it mean? - Brian Bonis, Lauren Fiesthumel, and Jamie Noonan - In May 2018, the Federal Reserve published its Federal Reserve Banks Combined Quarterly Financial Report for the first quarter of 2018. www.federalreserve.gov/econres/notes/feds-notes/somas-unrealized-loss-what-does-it-mean-20180813.htm

August 13, 2018 - Are Income and Credit Scores Highly Correlated? - Rachael Beer, Felicia Ionescu, and Geng Li - Credit scores, a numerical indicator constructed to predict borrowers' credit risk, represent a crucial element of a person's financial life and are used extensively in loan underwriting and pricing. www.federalreserve.gov/econres/notes/feds-notes/are-income-and-credit-scores-highly-correlated-20180813.htm

August 13, 2018 - A Shadow Rate or a Quadratic Policy Rule? The Best Way to Enforce the Zero Lower Bound in the United States - Martin M. Andreasen and Andrew Meldrum -
We study whether it is better to enforce the zero lower bound in models of U.S. Treasury yields using a shadow rate model or a quadratic term structure model. www.federalreserve.gov/econres/feds/files/2018056pap.pdf

August 10, 2018 - St. Louis Fed Ag Survey: Bankers See Decline in Farm Income and Quality Land Values in Second Quarter - The latest survey shows the majority of agricultural bankers expect farm income to decline next quarter, just as it did in this second quarter report. Quality farmland values also fell in the most recent survey, according to the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis. www.stlouisfed.org/news-releases/2018/08/09/st-louis-fed-ag-survey-decline-in-farm-income-and-quality-land-values-in-second-quarter

August 10, 2018 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

August 10, 2018 - Federal Reserve Board fines Citigroup $8.6 million for the improper execution of residential mortgage-related documents and announces termination of 2011 enforcement action.   www.federalreserve.gov/newsevents/pressreleases/enforcement20180810a.htm

August 9, 2018 - Anna Paulson Discusses Market Resiliency - Market Resiliency: Evidence from Money Market Mutual Fund Reform - A speech delivered by Anna Paulson on June 26, 2018, before the Peopleís Bank of China and Chicago Fedís Symposium on Over-the-Counter Derivatives in Shanghai, China. www.chicagofed.org/publications/speeches/2018/06-26-2018-market-resiliency-evidence-from-money-market-mutual-fund-reform-paulson

August 9, 2018 - OCC Allows Federally Chartered Financial Institutions Affected by Wildfires in California to Close - The Office of the Comptroller of the Currency today issued a proclamation allowing national banks, federal savings associations, and federal branches and agencies of foreign banks affected by wildfires and high winds in California to close. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-77.html

August 9, 2018 - Guidance to Help Financial Institutions and Facilitate Recovery in Areas of California Affected by Wildfires and High Winds - The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of California affected by wildfires and high winds. www.fdic.gov/news/news/financial/2018/fil18041.html
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August 9, 2018 - NCUA - McWatters: Minority Credit Unions Play a Critical Role in Reaching the Underserved - Minority credit unions play a vital role in providing affordable financial services in the nation�s most underserved communities and the agency is looking at new ways to support them, NCUA Board Chairman J. Mark McWatters said today. www.ncua.gov/newsroom/Pages/news-2018-aug-mcwatters-minority-credit-unions-play-critical-role.aspx

August 8, 2018 - OCC to Host Innovation Office Hours in New York - The Office of the Comptroller of the Currency today announced it will hold Innovation Office Hours, September 25-27, 2018, in New York to promote responsible innovation in the federal banking system. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-76.html

August 8, 2018 - The KC Fed LMCI suggest the level of activity increased modestly and momentum remained high in July - The Kansas City Fed Labor Market Conditions Indicators suggest the level of activity increased modestly and momentum remained high in July. The level of activity indicator increased in July from 0.75 to 0.84, while the momentum indicator was little changed at 1.43. www.kansascityfed.org/~/media/files/publicat/research/indicatorsdata/lmci/2018/lmci_080818.pdf

August 8, 2018 - The KCFSI suggests financial stress remains subdued - The Kansas City Financial Stress Index increased from -0.59 in June to -0.44 in July. www.kansascityfed.org/~/media/files/publicat/research/indicatorsdata/kcfsi/2018/08-2018/kcfsi_0718.pdf

August 7, 2018 - NCUA Files Notice of Charges Against Former Melrose CEO - NCUA Seeking Millions from the Melrose CEO for Breach of Duties - The National Credit Union Administration Board, under an infrequently used authority, has filed administrative charges against Alan S. Kaufman, former chief executive officer, treasurer, and board member of Melrose Credit Union. https://www.ncua.gov/newsroom/Pages/news-2018-aug-ncua-files-notice-charges-former-melrose-ceo.aspx

August 7, 2018 - Addressing Displacement Pressures from Public Investment in Chicago�s Communities By Sarah Duda - This article profiles recent research from the Institute for Housing Studies on the topic of displacement, gentrification, and the role of public investment in driving neighborhood change. www.chicagofed.org/publications/profitwise-news-and-views/2018/addressing-displacement-pressures-from-public-investment-in-chicagos-communities

August 7, 2018 - The Near-Term Forward Yield Spread as a Leading Indicator: A Less Distorted Mirror - Eric C. Engstrom, Steven A. Sharpe - The spread between the yield on a 10-year Treasury bond and the yield on a shorter maturity bond, such as a 2-year Treasury, is commonly used as an indicator for predicting U.S. recessions. www.federalreserve.gov/econres/feds/2018.htm#2018055

August 7, 2018 - Statistical Release - Consumer Credit - G.19 - Consumer credit increased at a seasonally adjusted annual rate of 4-1/2 percent during the second quarter. Revolving credit increased at an annual rate of 4 percent, while nonrevolving credit increased at an annual rate of 5 percent. In June, consumer credit increased at an annual rate of 3 percent. www.federalreserve.gov/releases/g19/current/default.htm

August 7, 2018 - Financial Frictions, Financial Shocks, and Aggregate Volatility - Cristina Fuentes-Albero - The Great Moderation in the U.S. economy was accompanied by a widespread increase in the volatility of financial variables. www.federalreserve.gov/econres/feds/files/2018054pap.pdf

August 6, 2018 - Senior Loan Officer Opinion Survey on Bank Lending Practices - The July 2018 Senior Loan Officer Opinion Survey on Bank Lending Practices addressed changes in the standards and terms on, and demand for, bank loans to businesses and households over the past three months, which generally correspond to the second quarter of 2018. www.federalreserve.gov/data/sloos/sloos-201807.htm

August 3, 2018 - U.S. and Oklahoma Economic Outlook By Chad Wilkerson Oklahoma City Branch Executive and Economist.  www.kansascityfed.org/~/media/files/publicat/speeches/2018/2018-wilkerson-govtfinanceofficersok-08-18.pdf

August 3, 2018 - FDIC Publishes 25th Anniversary Special Edition of Consumer Newsletter - FDIC Consumer News, the newsletter published quarterly by the Federal Deposit Insurance Corporation since the fall of 1993, is celebrating its 25th anniversary with a special expanded edition featuring updated versions of 25 of our more popular articles. www.fdic.gov/news/news/press/2018/pr18048.html

August 3, 2018 - FDIC Issues List of Banks Examined for CRA Compliance - The Federal Deposit Insurance Corporation today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act. www.fdic.gov/news/news/press/2018/pr18047.html

August 3, 2018 - FOIA - Chairman Powell's calendar, June 2018.  www.federalreserve.gov/foia/chairmanscalendar-062018.htm

August 3, 2018 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

August 3, 2018 - Tapping into Financial Synergies: Alleviating Financial Constraints Through Acquisitions - Rohan Williamson and Jie Yang - The paper examines whether financially constrained firms are able to use acquisitions to ease their constraints. The results show that acquisitions do ease financing constraints for constrained acquirers. www.federalreserve.gov/econres/feds/files/2018053pap.pdf

August 3, 2018 - First to "Read" the News: New Analytics and Algorithmic Trading - Bastian von Beschwitz, Donald B. Keim, and Massimo Massa - Exploiting a unique identification strategy based on inaccurate news analytics, we document a causal effect of news analytics on the market irrespective of the informational content of the news. www.federalreserve.gov/econres/ifdp/files/ifdp1233.pdf

August 3, 2018 - Federal Reserve Board announces approval of application by Nordea Bank Abp, Helsinki, Finland, to establish a branch in New York, New York. www.federalreserve.gov/newsevents/pressreleases/orders20180803a.htm 

August 2, 2018 - OCC Releases CRA Evaluations for 40 National Banks and Federal Savings Associations - 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 July 1, 2018 through July 31, 2018. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-75.html

August 2, 2018 - Federal Reserve Bank of Chicago�s Detroit Branch Announces New Board Member - The Federal Reserve Bank of Chicago�s Detroit Branch today announced a new member of its board of directors, effective immediately. www.chicagofed.org/publications/news/2018/detroit-release-8-2-2018

August 2, 2018 - NCUA - Proposed Risk-Based Capital Rule Adds One-Year Delay, Exempts More Credit Unions - Budget Review Projects Nearly $8.5 Million Operating Budget Net Savings - The National Credit Union Administration Board held its seventh open meeting of 2018 at the agency�s headquarters today and unanimously approved five items: www.ncua.gov/newsroom/Pages/news-2018-aug-proposed-risk-based-capital-rule-adds-one-year-delay.aspx
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August 1, 2018 - William J. �Bill� Mines Joins St. Louis Fed�s Transportation Industry Council - William J. �Bill� Mines of Bentonville, Ark., has been named to the Transportation Industry Council of the Federal Reserve Bank of St. Louis. Mines is the senior vice president of finance and strategy, Supply Chain, for Walmart U.S. in Bentonville. www.stlouisfed.org/news-releases/2018/08/01/william-j-bill-mines-joins-st-louis-fed-transportation-industry-council

August 1, 2018 - Statistical Release - Foreign Exchange Rates - G.5 - The table below shows the average rates of exchange in JULY 2018 together with comparable figures for other months. Averages are based on daily noon buying rates for cable transfers in New York City certified for customs purposes by the Federal Reserve Bank of New York. https://www.federalreserve.gov/releases/g5/current/default.htm 

August 1, 2018 - Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System was held at on July 31, 2018 and continued at 9:00 a.m. on August 1, 2018. Matter(s) considered: Discussion of Monetary Policy Issues. www.federalreserve.gov/aboutthefed/boardmeetings/20180731closed.htm

August 1, 2018 - Federal Reserve issues FOMC statement - Information received since the Federal Open Market Committee met in June indicates that the labor market has continued to strengthen and that economic activity has been rising at a strong rate. Job gains have been strong, on average, in recent months, and the unemployment rate has stayed low. www.federalreserve.gov/newsevents/pressreleases/monetary20180801a.htm

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