Bank Regulatory News
February 26, 1999 - JANUARY
FDIC SURVEY FINDS REAL ESTATE MARKETS STILL
The ongoing expansion in the nation's residential and commercial real estate markets
during the late fall and early winter, according to the FDIC's latest quarterly opinion
Assessments of trends in local real estate markets remained positive but were not as
in earlier favorable surveys. Increased reports of "no change" in market
conditions in the January
survey signal a slowing of the robust commercial and residential markets' expansion.
February 26, 1999 - FDIC
MAKES PUBLIC JANUARY 1999 ENFORCEMENT ACTIONS;
NO ADMINISTRATIVE HEARINGS SCHEDULED FOR MARCH
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of
administrative enforcement actions taken against banks and individuals in January. No
administrative hearings are scheduled for March.
February 26, 1999 - OCC Issues
Second Quarter 1999 CRA Examination Schedule
WASHINGTON, D.C. -- 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
second quarter of 1999.
February 24, 1999 - OCC
Highlights Basle and IOSCO Consultative Paper on Trading and
Derivatives Activities of Banks and Securities Firms
WASHINGTON, DC--The Office of the Comptroller of the Currency (OCC) advises national banks
today that the Basle Committee on Banking Supervision and the Technical Committee of the
International Organization of Securities Commissions (IOSCO) have issued a consultative
paper with recommendations for public disclosure of trading and derivatives activities of
banks and securities firms.
25, 1999 - The Federal Reserve Board today announced the issuance of a Consent Order
against Daniel K. Walker, senior vice-president, a director, and an institution-affiliated
party of the Farmers and Merchants Bank of Long Beach, Long Beach, California, a state
February 24, 1999 -
Comptroller Warns that Senate Proposal Would Compromise Safety and Soundness of National
WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. told a Senate panel today
that a legislative proposal requiring banks to conduct new activities in holding company
affiliates "would have a profound long-term detrimental effect on the safety and
soundness of the banking system."
February 22, 1999 -
Comptroller Cautions Community Banks About Shortcomings in Financial Modernization
ORLANDO -- In his first speech, Comptroller of the Currency John D. Hawke Jr. cautioned
today that pending financial modernization legislation, if not structured properly, could
give rise to an era of "prolonged marginalization" for community banks.
22, 1999 - The Federal Reserve Board today requested comment on proposed changes to its
Regulation CC, Availability of Funds and Collection of Checks, that would provide more
flexibility to depository institutions to experiment with methods to return unpaid checks
electronically. Comment is requested by April 30, 1999.
February 19, 1999 -
REVISED POLICY FOR CLASSIFYING RETAIL CREDITS - FFIEC Revises Uniform Retail Credit
Classification and Account Management Policy
The Federal Financial Institutions Examination Council (FFIEC) has revised the Uniform
Credit Classification and Account Management Policy issued in 1980. The amendments
update and expand the classification policy for retail credit loans. The amended policy is
February 19, 1999 -
TRUST PREFERRED SECURITIES - Authority of State Banks to Invest in Trust Preferred
The Federal Deposit Insurance Corporation (FDIC) has recently received numerous requests
for clarification about the extent of a state bank's ability to invest in "trust
which are hybrid instruments possessing characteristics typically associated with debt
Several insured state nonmember banks have asked whether section 24 of the Federal Deposit
Insurance Act (12 U.S.C. § 1831a) or the FDIC's implementing regulations (12 C.F.R. Part
362) impose limits on the authority of a state nonmember bank to invest in trust preferred
February 18, 1999 -
YEAR 2000 CUSTOMER COMMUNICATION OUTLINE - Interagency Guidance on Customer Communication
The Federal Financial Institutions Examination Council (FFIEC) has previously issued
on developing a Year 2000 customer awareness program. The guidance encourages institutions
to make a concerted effort to inform their customers of the Year 2000 issue and steps they
taking to minimize the risk that customers may be affected by Year 2000-related computer
problems. The attached FFIEC "Year 2000 Customer Communication Outline" provides
guidance on the elements necessary for effective communication statements on Year 2000
February 17, 1999 - Year 2000
Customer Communication Outline
This advisory is to alert you to the recent release of the FFIEC Customer Communication
Outline. This guidance supplements previous FFIEC guidance on Year 2000 customer awareness
programs and encourages national banks to consider doing the following in future customer
1999 - The Federal Reserve Board today announced its approval of the applications of
First Banks, Inc., Creve Coeur, Missouri, and First Banks America, Inc., Clayton,
Missouri, to acquire Redwood Bancorp ("Redwood"), and thereby indirectly acquire
Redwood's subsidiary bank, Redwood Bank, both in San Francisco, California.
February 12, 1999 - Comptroller
Warns that H.R. 10 Would Undermine Safety of National
WASHINGTON -- Comptroller of the Currency John D. Hawke Jr. told a House panel today that
pending banking legislation would undermine the safety and soundness of the national
banking system and urged Congress to question closely arguments advanced in favor of that
bill by the Federal Reserve.
11, 1999 - The Federal Reserve Board today announced the issuance of a Prompt
Corrective Action Directive against the Zia New Mexico Bank, Tucumcari, New Mexico.
February 11, 1999 - OCC ANNOUNCES
NINE NEW ENFORCEMENT ACTIONS, TWO AMENDMENTS AND TWO TERMINATIONS OF EXISTING ACTIONS
WASHINGTON, DC --The Office of the Comptroller of the Currency (OCC) today announced nine
new enforcement actions taken against national banks, two amendments and two terminations
of existing actions. The actions released today include five formal agreements, two
amendments to an existing cease and desist order, one removal, two civil money penalties,
one safety and soundness order, and two terminations of existing orders.
February 11, 1999 -
FAIR LENDING EXAMINATIONS - Interagency Fair Lending Examination Procedures
The Federal Financial Institutions Examination Council (FFIEC) has approved the attached
lending examination procedures. They are intended to provide consistency in the fair
examination process among the federal banking regulators through a basic, flexible
The procedures provide guidance on taking a comprehensive, efficient, risk-based approach
examining banks for compliance with the nondiscriminatory requirements of the Equal Credit
Opportunity (ECOA) and Fair Housing Acts (FHA).
February 10, 1999 - Federal Financial
Institution Regulators Issue - Revised Policy For Classifying Retail Credits
Federal financial institution regulators today announced they have updated and
expanded policies for classifying delinquent retail credits.
February 9, 1999 - Report of
Foreign Bank and Financial Accounts Form
This bulletin transmits the revised Report of Foreign Bank and Financial Accounts form
(FBAR; Treasury form 90-22.1), that has been adopted by the Financial Crimes Enforcement
(FinCEN), Department of the Treasury. The form simplifies the previous FBAR form.
February 5, 1999 -
UNIFORM RATING SYSTEM FOR INFORMATION TECHNOLOGY
FFIEC Adopts Updated Uniform Rating System for Information Technology
The Federal Financial Institutions Examination Council's (FFIEC) Task Force on Supervision
adopted the attached Uniform Rating System for Information Technology (URSIT). The updated
statement replaces the 1978 Uniform Interagency Rating System for Data Processing
February 5, 1999 - BANK
RATE MONITOR'S INTERNET "SAFE AND SOUND BANK AND THRIFT RATING SYSTEM" NOT
AFFILIATED WITH FDIC
The Federal Deposit Insurance Corporation (FDIC) is alerting the public that Bank Rate
Monitor's "Safe and Sound Bank and Thrift Rating System," posted on its Web
site, is not
affiliated with the FDIC. Bank Rate Monitor is an Internet publication.
February 5, 1999 - FDIC
MAKES PUBLIC DECEMBER 1998 ENFORCEMENT ACTIONS;
NO ADMINISTRATIVE HEARINGS SCHEDULED FOR FEBRUARY
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of
adminstrative enforcement actions taken against banks and individuals in December. No
administrative hearings are scheduled for February 1999.
February 4, 1999 - The Board
of Governors of the Federal Reserve System (board) published the attached advance notice
of proposed rulemaking in the Federal Register on December 15, 1998. The board
requests comment on the potential benefits and drawbacks of a modification to Regulation
CC. This modification would shorten the availability schedule that currently applies for
most nonlocal checks from five to four business days. However, a depositary bank would
have the option of retaining a five-business-day schedule for selected categories of
nonlocal checks. To take
advantage of this option, banks would have to certify that a significant proportion of
returned checks fail to arrive within four business days.
1999 - The Asian Crisis: What Happened?
ST. LOUIS The recent economic crisis in Asia likely occurred because either the
regions financial systems were severely flawed, or a swift change in investors
expectations caused massive outflows of capital that triggered and fed the crisis or both
¾ said Michelle Clark Neely, an economist with the Federal Reserve Bank of St. Louis.
February 3, 1999
- The Federal Reserve's Eighth District: Is It Marching In or Out of Step
with the National Economy?
ST. LOUIS--Labor markets in the states of the Federal Reserve's Eighth District, as in
most of the nation, continue to be extremely tight. The growth of the region's payroll
employment, however, has been slower than the national average and, if this trend
continues, output is probably going to grow more slowly than it did six months or a year
ago, observed Adam M. Zaretsky, an economist with the Federal Reserve Bank of St. Louis.
February 1, 1999 -
CONSUMER EDUCATION - Educational Programs on Basic Financial Services for "Cash
The Federal Deposit Insurance Corporation (FDIC) would like to help "cash
more about the benefits of a traditional banking relationship. Cash consumers have been
to as "unbanked" individuals and households that do not have accounts with the
mainstream financial institutions. As part of this consumer awareness effort, the FDIC has
reproduced the attached comprehensive guide for FDIC-supervised institutions, with the
that they will integrate the guide into their community outreach and educational efforts.
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