Bank Regulatory Agencies

Bank Regulatory News
December 2000

December 29, 2000 - In 1998, the OCC initiated a project to improve Community Reinvestment Act (CRA) examinations at large banks. Among the goals were to gain efficiencies and to ensure consistency in these examinations. The end product is the attached “Large Bank CRA Examiner Guidance.” Federal Register

December 27, 2000 - The attached final rule amending the Office of the Comptroller's (OCC's) rules of practice and procedure to adjust the maximum amount of each civil money penalty (CMP) within its jurisdiction was published in the Federal Register on Monday, December 11, 2000. Federal Register

December 27, 2000 - The Federal Reserve Board is seeking public comment on a proposal to permit financial holding companies to act as real estate brokers and managers.

December 26, 2000 - OCC Statement on Appraisal Standards for Federally Related Transactions

December 22, 2000 - On December 7, 2000, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) amended its listing of specially designated nationals and blocked persons by adding eight new names of individuals and eight new entities to the list of Specially Designated Narcotics Traffickers.

December 21, 2000 - Updated FFIEC Reporting Forms - FFIEC 002 Report of Assets and Liabilities of U.S. Branches and Agencies of Foreign Banks; FFIEC 031 Consolidated Reports of Condition and Income for a Bank with Domestic and Foreign Offices; FFIEC 041 Consolidated Reports of Condition and Income for a Bank with Domestic Offices Only; FFIEC 004 Report of Indebtedness of Executive Officers and Principal Shareholders and their Related Interests to Correspondent Banks.

December 21, 2000 - FDIC REDUCES BUDGET FIVE PERCENT. The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today approved a 2001 budget of $1.126 billion, a decrease of more than $60 million -- or 5.1 percent -- from its 2000 budget.

December 21, 2000 - The Federal Reserve Board announced the names of seven new members of its Thrift Institutions Advisory Council (TIAC) and designated a new President and Vice President of the Council for 2001.

December 21, 2000 - Agencies Adopt Rule On Disclosure And Reporting Of CRA-Related Agreements. The federal bank regulatory agencies approved the issuance of final regulations implementing the CRA Sunshine Requirements of the Federal Deposit Insurance Act (FDIA), which were recently enacted by the Gramm-Leach-Bliley Act.

December 21, 2000 - The Federal Reserve Board approved a final rule setting forth procedures for domestic bank holding companies and foreign banking organizations to qualify as financial holding companies.

December 21, 2000 - The Federal Reserve Board proposed revisions to the methods used for calculating the private sector adjustment factor (PSAF) and net income on clearing balances (NICB).

December 21, 2000 - The Federal Reserve Board approved an interim rule defining three categories of activities listed in section 4(k)(5) of the Bank Holding Company Act as financial in nature or incidental to a financial activity.

December 20, 2000 - In a semi-annual report on risks in banking released today, analysts with the Federal Deposit Insurance Corporation (FDIC) identified several factors that have weakened the current economic expansion.

December 20, 2000 - Comptroller Hawke Urges FDIC Reforms To End Inequitable Treatment of National Banks

December 20, 2000 - Federal Reserve Board Chairman Alan Greenspan issued the following statement: In Paul O’Neill, the President-elect has attracted an exceptional and talented person.

December 20, 2000 - Federal Reserve Board Chairman Alan Greenspan issued the following statement: Arthur Levitt has much to be proud of in his lengthy and careful stewardship of the Securities and Exchange Commission.

December 20, 2000 - The Federal Reserve Board announced that the exemption threshold for depository institutions that are required to report data under the Home Mortgage Disclosure Act (HMDA) is increased to $31 million.

December 19, 2000 - The Federal Open Market Committee at its meeting decided to maintain the existing stance of monetary policy, keeping its target for the federal funds rate at 6-1/2 percent.

December 19, 2000 - The Federal Reserve Board, after consulting with the Secretary of the Treasury, has determined by rule that acting as a “finder” is an activity that is incidental to a financial activity and, therefore, a permissible activity for a financial holding company.

December 19, 2000 - The Federal Reserve Board published proposed amendments to the provisions of its Regulation Z (Truth in Lending) that implement the Home Ownership and Equity Protection Act (HOEPA) of 1994.

December 18, 2000 - OCC Issues Statement on Bank Holdings of Securities for Hedge Purposes

December 15, 2000 - The September 30, 2000 Uniform Bank Performance Report (UBPR) now being distributed to all insured commercial banks and Federal Deposit Insurance Corporation - Insured Savings Banks (FDIC-ISB) is now available for sale to the public.

December 14, 2000 - National State Bank, Metropolis, Illinois, was closed by the Comptroller of the Currency (OCC) today at 1:00 p.m. (EST) and the Federal Deposit Insurance Corporation (FDIC) was appointed receiver. The FDIC entered into an agreement with Banterra Bank, Marion, Illinois, to assume the insured deposits of the failed bank.

December 14, 2000 - The Federal Reserve Board published proposed revisions to its Regulation C, which implements the Home Mortgage Disclosure Act (HMDA). The Board voted to request comments on the proposed revisions at its meeting on November 29, 2000.

December 13, 2000 - The Federal Reserve Board requested public comment on a proposal that would amend Regulation Y (Bank Holding Companies and Change in Bank Control).

December 13, 2000 - The Federal Reserve Board proposed amending the provisions of the Board’s Regulation Z (Truth in Lending) that implement the Home Ownership and Equity Protection Act (HOEPA) of 1994.

December 13, 2000 - The Federal Reserve Board announced the issuance of a Final Decision and Order of Prohibition against Kaye G. Hill, former employee, Barnett Bank, N.A., Jacksonville, Florida. The Order, the result of an action brought by the Office of the Comptroller of the Currency, prohibits Ms. Hill from participating in the conduct of the affairs of any financial institution or holding company.

December 13, 2000 - The Federal Reserve Board voted to seek public comment on a proposal to permit financial holding companies to act as real estate brokers and managers. Comment is due by March 2, 2001.

December 12, 2000 - The Federal Reserve Board announced the issuance of several enforcement actions related to foreign banking organizations that had been involved with Operation Casablanca.

December 12, 2000 - The Federal Reserve Board announced the issuance of an Order of Prohibition against Bruce Jeffrey Kingdon, a former partner, operating committee member, managing director, employee, and institution-affiliated party of the Bankers Trust Company, New York, New York.

December 12, 2000 - The Federal Reserve Board announced the execution of a Written Agreement by and between People’s Bancshares, Inc., New Bedford, Massachusetts, and the Federal Reserve Bank of Boston.

December 8, 2000 - Reports of Condition and Income (Call Report) for Fourth Quarter 2000
The enclosed materials pertain to the Reports of Condition and Income (Call Report) for the December 31, 2000, report date. Please complete your fourth quarter Call Report, review it for accuracy, and submit the report electronically as soon as possible. Your completed report must be received by January 30, 2001, in accordance with the filing requirements discussed below. No extensions of time for submitting reports are granted.

December 8, 2000 - This OCC bulletin transmits an interim rule and a request for comment on the risk-based capital (RBC) treatment of securities borrowing transactions in which the borrower of the security posts cash collateral. Federal Register

December 8, 2000 - OCC RELEASES CRA EVALUATIONS FOR 11 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 November 15 through December 14.

December 7, 2000 - The National Credit Union Administration announced that it has issued an Order of Prohibition against Rose Lorraine Henry, former President of Parco Community Federal Credit Union, located in Sinclair, Wyoming.

December 7, 2000 - OTS Extends Comment Period to Feb. 9, 2001 on Proposed Holding Company Notice
The Office of Thrift Supervision (OTS) said today it is extending to Feb. 9, 2001, the comment period on its proposal to require some savings and loan holding companies to give advance notice to OTS before undertaking certain significant transactions that could affect the risk profile of subsidiary thrifts. The proposal originally was announced on October 28.

December 6, 2000 - The federal banking regulatory agencies requested public comment on a proposal to amend their capital standards for banks, bank holding companies and savings associations to reduce the risk weight applied to claims on, or guaranteed by, qualifying securities firms. FDIC

December 6, 2000 - Thrift Industry Earnings Strong; But OTS Notes Some Profit Erosion
The nation’s thrift industry turned in another strong performance in the third quarter of 2000, earning $1.9 billion, but Director Ellen Seidman of the Office of Thrift Supervision (OTS) reported today economic conditions and market competition are causing some stress on thrifts’ earning power.

December 6, 2000 - OCC Reports Trading Revenues Off As Derivatives Volume Dips During 3rd Quarter
WASHINGTON -- U.S. commercial banks earned $2.8 billion from trading activities during the third quarter of 2000, down from the $3 billion earned a quarter earlier.

December 5, 2000 - 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 the FDIC assigned to institutions in September 2000.

December 5, 2000 - Commercial bank earnings rebounded sharply in the third quarter to $19.3 billion, up 32 percent from their performance in the second quarter, the Federal Deposit Insurance Corporation (FDIC) announced Tuesday.

December 5, 2000 - The federal bank regulatory agencies issued and requested public comment on an interim rule revising the risk-based capital treatment of cash collateral posted in connection with certain securities borrowing transactions. The agencies are also requesting comment on the capital treatment of securities borrowing transactions where securities are posted as collateral. The rule applies only to those banking organizations with significant trading activities that are subject to capital treatment under the market risk rules.

December 4, 2000 - The federal bank and thrift regulatory agencies announced final consumer protection rules for the sale of insurance products by depository institutions. FDIC

December 4, 2000 - The federal bank and thrift regulatory agencies announced final consumer protection rules for the sale of insurance products by depository institutions. The final rule published in today's Federal Register implements section 305 of the Gramm-Leach-Bliley Act. As required by the statute, the agencies consulted with the National Association of Insurance Commissioners (NAIC). OCC OTS

December 1, 2000 - OCC Issues First Quarter 2001 CRA Examination Schedule
WASHINGTON, D.C. -- The Office of the Comptroller of the Currency (OCC) released its projected schedule of Community Reinvestment Act (CRA) examinations to be conducted in the first quarter of 2001.

December 1, 2000 - The Federal Reserve Board announced the issuance of a Final Decision and Order of Prohibition against Sammie R. Golden, former employee, Union Planters Bank, Memphis, Tennessee. The Order, the result of an action brought by the Office of the Comptroller of the Currency, prohibits Ms. Golden from participating in the conduct of the affairs of any financial institution or holding company.

December 1, 2000 - 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 2001.