The E-mail Banking News
(Bank Regulatory News)
February 2016

February 29, 2016 - NCUA Issues Prohibition Notices - The National Credit Union Administration has issued four notices of prohibition in February to individuals who have been convicted of crimes of dishonesty and, as a result, are prohibited from participating in the affairs of any federally insured financial institution.  www.ncua.gov/newsroom/Pages/news-2016-feb-orders.aspx

February 29, 2016 - OCC Issues Second Quarter 2016 CRA Evaluation Schedule - The Office of the Comptroller of the Currency today released its schedule of Community Reinvestment Act evaluations to be conducted in the second quarter of 2016. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-21.html 

February 29, 2016 - Rules of Engagement - John C. Williams - The Federal Reserve uses a number of approaches to inform its policy decisions—they’re all insightful, they’re all useful, and they’re all a part of the debate. But none is absolutely fail-safe. The idea that policymakers should follow only one approach without deviation is ill-advised.  www.frbsf.org/economic-research/publications/economic-letter/2016/february/rules-of-engagement-monetary-policy-rules-speech/

February 29, 2016 - FDIC Issues Second Quarter 2016 CRA Examination Schedule - The Federal Deposit Insurance Corporation (FDIC) has issued the public list of institutions that it has scheduled for a Community Reinvestment Act examination during the second quarter of 2016.  www.fdic.gov/news/news/press/2016/pr16015.html

February 26, 2016 - NCUA Insures Jafari No-Interest Credit Union - More than 23,000 Will Gain Access to Affordable Financial Services in Texas - The National Credit Union Administration’s Office of Consumer Protection today announced the approval of federal insurance of member’s accounts for a credit union recently chartered by the State of Texas Credit Union Department.  https://www.ncua.gov/newsroom/Pages/news-2016-feb-jafari.aspx

February 26, 2016 - NCUA Hosts Merger Strategy Webinar - Learn how Mergers can be an Effective Growth Strategy - Credit unions contemplating mergers can get valuable information in an upcoming webinar, “Mergers as a Growth Strategy,” hosted by the National Credit Union Administration.  www.ncua.gov/newsroom/Pages/news-2016-feb-merger-strategy-webinar.aspx

February 26, 2016 - FDIC Makes Public January Enforcement Actions; - No Administrative Hearings Scheduled for March 2016 - The Federal Deposit Insurance Corporation today released a list of orders of administrative enforcement actions taken against banks and individuals in January.  No administrative hearings are scheduled for March 2016. https://www.fdic.gov/news/news/press/2016/pr16014.html

February 26, 2016 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm 

February 26, 2016 - Open Board Meeting Notice - An Open Board meeting will be held on March 4, 2016, at 3 p.m. ET. Matter to be considered: Proposal to establish single-counterparty credit limits for large U.S. bank holding companies and foreign banking organizations. www.federalreserve.gov/aboutthefed/boardmeetings/20160304open.htm

February 26, 2016 - Payment Systems - Quarterly Data Updates: Fedwire Funds Services, Fedwire Securities Services, and National Settlement Service.   www.federalreserve.gov/paymentsystems/default.htm

February 26, 2016 - Lael Brainard, Governor - What Happened to the Great Divergence? - At the 2016 U.S. Monetary Policy Forum, New York, New York.   www.federalreserve.gov/newsevents/speech/brainard20160226a.htm

February 26, 2016 - Jerome H. Powell, Governor - Discussion of the paper "Language after Liftoff: Fed Communication Away from the Zero Lower Bound" - At the 2016 U.S. Monetary Policy Forum, New York, New York.  www.federalreserve.gov/newsevents/speech/powell20160226a.htm
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February 26, 2016 - FDIC Makes Public January Enforcement Actions - 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 2016. https://www.fdic.gov/news/news/press/2016/pr16014.html

February 25, 2016 - OCC Assesses $2.5 Million Civil Money Penalty Against Gibraltar Private Bank and Trust Company for Bank Secrecy Act Violations - The Office of the Comptroller of the Currency today announced a $2.5 million civil money penalty against Gibraltar Private Bank and Trust Company, Coral Gables, Fla., for violations of the Bank Secrecy Act. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-20.html

February 25, 2016 - St. Louis Fed: Financial Market Stress Fell Modestly - The St. Louis Fed Financial Stress Index fell modestly in the latest reporting week, reversing about half of the previous week’s surge. For the week ending Feb. 19, the STLFSI measured -0.366, down from the previous week’s revised value of -0.245.  www.stlouisfed.org/news-releases/2016/02/25/financial-market-stress-fell-modestly

February 24, 2016 - St. Louis Fed's Bullard Discusses Falling Inflation Expectations and Monetary Policy Normalization - Federal Reserve Bank of St. Louis President James Bullard discussed “More on the Changing Imperatives for U.S. Monetary Policy Normalization” in a presentation Wednesday to the Money Marketeers of New York University. www.stlouisfed.org/news-releases/2016/02/24/st-louis-feds-bullard-discusses-falling-inflation-expectations-and-monetary-policy-normalization

February 24, 2016 - NCUA - Mildred Mitchell-Bateman Hospital Federal Credit Union Closes - Member Deposits Protected up to $250,000 by Share Insurance Fund - The National Credit Union Administration today liquidated the Mildred Mitchell-Bateman Hospital Federal Credit Union of Huntington, West Virginia. www.ncua.gov/newsroom/Pages/news-2016-feb-mildred-mitchell-closure.aspx

February 24, 2016 - Deadlines and Matching - Garth Baughman - Deadlines and fixed end dates are pervasive in matching markets including school choice, the market for new graduates, and even financial markets such as the market for federal funds. Deadlines drive fundamental non-stationarity and complexity in behavior, generating significant departures from the steady-state equilibria usually studied in the search and matching literature. www.federalreserve.gov/econresdata/feds/2016/files/2016014pap.pdf

February 23, 2016 - Proposals for Comment - Proposal to approve under OMB delegated authority the extension for three years, without revision, of the following reports: FR 4004 and FR 4201.   www.federalreserve.gov/apps/foia/dfproposals.aspx#ICP-201606

February 23, 2016 - Stanley Fischer, Vice Chairman - Recent Monetary Policy Developments - At the "Energy Transition: Strategies for a New World," 35th Annual IHS CERAWeek, Houston, Texas.  www.federalreserve.gov/newsevents/speech/fischer20160223a.htm

February 23, 2016 - NCUA - Metsger Outlines “Important and Achievable Goals” for NCUA in 2016 - NCUA Board Vice Chairman Says Agency and Credit Unions Must Embrace Change - Saying credit unions and the National Credit Union Administration both must keep pace with a rapidly changing financial industry and economic environment, NCUA Board Vice Chairman Rick Metsger today pledged to take specific steps to do just that. www.ncua.gov/newsroom/Pages/news-2016-feb-metsger-gac-remarks.aspx

February 23, 2016 - FDIC-Insured Institutions Earn $40.8 Billion in Fourth Quarter 2015 - Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation reported aggregate net income of $40.8 billion in the fourth quarter of 2015, up $4.4 billion from earnings of $36.5 billion a year earlier.  www.fdic.gov/news/news/press/2016/pr16013.html

February 23, 2016 - Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System was held at 10:00 AM on February 23, 2016. Matter considered: Periodic Supervisory Update. www.federalreserve.gov/aboutthefed/boardmeetings/20160223exp.htm

February 23, 2016 - Annual Report on the Freedom of Information Act for Fiscal Year 2015 - The following information is submitted to the U.S. Department of Justice by the Federal Open Market Committee of the Federal Reserve System in accordance with the requirements of the Freedom of Information Act (5 U.S.C. § 552(e)), as amended. www.federalreserve.gov/foia/fomc/annrept_2015.htm

February 23, 2016 - Minutes of the Board's discount rate meeting for January 25, 2016.  www.federalreserve.gov/newsevents/press/monetary/20160223a.htm

February 22, 2016 - Economic Growth Picked Up in January - The Chicago Fed National Activity Index was +0.28 in January, up from –0.34 in December. www.chicagofed.org/~/media/publications/cfnai/2016/cfnai-february2016-pdf.pdf?la=en

February 22, 2016 - St. Louis Fed Adds Q&As to Help Parents Teach Econ, Finances - Parents can teach economics to their children while reading popular children’s books, thanks to a new set of free resources from the Federal Reserve Bank of St. Louis. www.stlouisfed.org/news-releases/2016/02/22/st-louis-fed-adds-q-and-as-to-help-parents-teach-econ-and-finances

February 22, 2016 - NCUA Rolls Out New Interactive Tool for America and Military Saves Week -  NCUA Participating in Military Saves Financial Readiness Fair at the Pentagon - Consumers now have a new interactive learning tool from the National Credit Union Administration to help them understand what it means to save and borrow at a federally insured credit union.  https://www.ncua.gov/newsroom/Pages/news-2016-feb-america-military-saves.aspx

February 22, 2016 - NCUA - Matz Highlights Regulatory Reset and Relevance of Credit Unions - NCUA Chairman Challenges Credit Union Leadership to Be Ready for the Future - The credit union system weathered a crisis, built a recovery and now must keep pace with a changing society, National Credit Union Administration Board Chairman Debbie Matz said today.
www.ncua.gov/newsroom/Pages/news-2016-feb-matz-gac.aspx

February 22, 2016 - OCC Hosts Credit and Compliance Risks Workshops in California - The Office of the Comptroller of the Currency will host two workshops in Santa Ana, Calif., at the DoubleTree Santa Ana-Orange County Airport, March 22-23, for directors of national community banks and federal savings associations supervised by the OCC. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-19.html

February 22, 2016 - OCC Supports America Saves Week - Comptroller of the Currency Thomas J. Curry today issued the following statement in recognition of America Saves Week, February 22 – 27, 2016. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-18.html

February 22, 2016 - The Right Profile: Economic Drivers and the Outlook - John C. Williams - Headline news can give false impressions of what motivates monetary policymakers. While international developments and financial market volatility are closely monitored, what matters for policy is how those things affect jobs and inflation.  www.frbsf.org/economic-research/publications/economic-letter/2016/february/economic-drivers-and-the-outlook-town-hall-los-angeles-speech/
 
February 22, 2016 - FDIC Encourages Consumers to Develop a Plan to Save Toward Their Goals - The Federal Deposit Insurance Corporation encourages consumers to use America Saves Week as a time to begin or continue saving toward financial goals. www.fdic.gov/news/news/press/2016/pr16012.html

February 22, 2016 - What Happened in Money Markets after the Fed's December Rate Increase? - Alyssa Anderson, Jane Ihrig, Ellen Meade, and Gretchen Weinbach - At its December 2015 meeting, the Fed's policymaking committee, the Federal Open Market Committee, announced an increase in the target range for the federal funds rate of 25 basis points, the first increase in the policy rate since June 2006.  www.federalreserve.gov/econresdata/notes/feds-notes/2016/what-happened-in-money-markets-after-the-feds-december-rate-increase-20160222.html

February 22, 2016 - Fiscal Stimulus and Firms: A Tale of Two Recessions - Christine L. Dobridge - In this paper, I examine the effects of a countercyclical fiscal policy that gave firms additional tax refunds--additional liquidity--at the end of the past two recessions.  www.federalreserve.gov/econresdata/feds/2016/files/2016013pap.pdf

February 22, 2016 - Heterogeneity and Unemployment Dynamics - Hie Joo Ahn and James D. Hamilton - This paper develops new estimates of flows into and out of unemployment that allow for unobserved heterogeneity across workers as well as direct effects of unemployment duration on unemployment-exit probabilities.  www.federalreserve.gov/econresdata/feds/2016/files/2016012pap.pdf

February 19, 2016 - Proposals for Comment - Proposal to approve under OMB delegated authority the extension for three years, without revision, Reg Y-1. Proposal to approve under OMB delegated authority the extension for three years, with revision, Form MSD-4 and Form MSD-5. www.federalreserve.gov/apps/foia/dfproposals.aspx#ICP-201604

February 19, 2016 - NCUA Releases Video Module on Credit Union Board’s Role in Policy Planning - Learn Best Practices for Creating Clear and Effective Management Policies - Credit union board directors who want to improve their strategic policymaking skills can get valuable information from a new video module released today by the National Credit Union Administration.  www.ncua.gov/newsroom/Pages/news-2016-feb-video-module.aspx

February 19, 2016 - OCC Enforcement Actions and Terminations for February 2016 - The Office of the Comptroller of the Currency today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-17.html

February 19, 2016 - Federal Banking Agencies Expand Number of Banks and Savings Associations Qualifying for 18-Month Examination Cycle - Federal banking agencies today increased the number of small banks and savings associations eligible for an 18-month examination cycle rather than a 12-month cycle.  www.fdic.gov/news/news/press/2016/pr16011.html

February 19, 2016 - Advanced Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System will be held under expedited procedures at 10:00 AM on February 23, 2016. Matter to be considered: Periodic Supervisory Update. www.federalreserve.gov/aboutthefed/boardmeetings/20160223advexp.htm

February 19, 2016 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

February 19, 2016 - Federal Reserve Board approves reappointment of Reserve Bank presidents and first vice presidents - The Federal Reserve Board on Friday approved the reappointment of 10 Federal Reserve Bank presidents and 10 first vice presidents by their respective boards of directors.  www.federalreserve.gov/newsevents/press/other/20160219a.htm

February 18, 2016 - Federal banking agencies expand number of banks and savings associations qualifying for 18-month examination cycle - Federal banking agencies today increased the number of small banks and savings associations eligible for an 18-month examination cycle rather than a 12-month cycle.  www.federalreserve.gov/newsevents/press/bcreg/20160219a.htm __________________

February 18, 2016 - OCC Hosts Risk Governance and Compliance Workshops in Atlanta - The Office of the Comptroller of the Currency will host two workshops in Atlanta at the DoubleTree by Hilton Atlanta Downtown, March 15-16, for directors of national community banks and federal savings associations supervised by the OCC. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-15.html

February 18, 2016 - Crisis Transmission through the Global Banking Network - Galina Hale, Tumer Kapan, and Camelia Minoiu - We study the transmission of financial sector shocks across borders through international bank connections. For this purpose, we use data on long-term interbank loans among more than 6,000 banks during 1997-2012 to construct a yearly global network of interbank exposures. www.frbsf.org/economic-research/files/wp2016-01.pdf

February 18, 2016 - St. Louis Fed: Financial Market Stress Rises Sharply - The St. Louis Fed Financial Stress Index surged upward in the latest reporting week. For the week ending Feb. 12, the index measured -0.241, up strongly from the previous week’s revised value of -0.474. The latest reading is the highest value since the week ending Dec. 2, 2011.  www.stlouisfed.org/news-releases/2016/02/18/st-louis-fed-financial-market-stress-rises-sharply

February 18, 2016 - Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System was held at 9:30 AM on February 18, 2016. Matter considered: Bank Supervisory Matter. www.federalreserve.gov/aboutthefed/boardmeetings/20160218exp.htm

February 18, 2016 - Statistical Release - Charge-Off and Delinquency Rates on Loans and Leases at Commercial Banks. www.federalreserve.gov/releases/chargeoff/

February 18, 2016 - Federal Reserve Board issues interim final rule regarding dividend payments on Reserve Bank capital stock - The Federal Reserve Board on Thursday issued an interim final rule that amends Regulation I to implement provisions of the Fixing America's Surface Transportation Act. www.federalreserve.gov/newsevents/press/bcreg/20160218a.htm

February 18, 2016 - Federal Reserve announces results of offering of seven-day term deposits on February 18 - On February 18, 2016, the Federal Reserve conducted a floating-rate offering of term deposits through its Term Deposit Facility.  www.federalreserve.gov/newsevents/press/monetary/20160218a.htm

February 18, 2016 - Federal Reserve Board announces termination of enforcement action with Centrue Financial Corporation and Centrue Bank.   www.federalreserve.gov/newsevents/press/enforcement/20160218a.htm

February 17, 2016 - Emerging Trends in the U.S. & Colorado Economies - Alison Felix Economist & Branch Executive Federal Reserve Bank of Kansas City Denver Branch.   www.kansascityfed.org/~/media/files/publicat/speeches/2016/2016-felix-dabe-02-17.pdf

February 17, 2016 - St. Louis Fed's Bullard Discusses Changing Imperatives for U.S. Monetary Policy Normalization - Federal Reserve Bank of St. Louis President James Bullard discussed “Changing Imperatives for U.S. Monetary Policy Normalization” in a presentation Wednesday to the CFA Society St. Louis. www.stlouisfed.org/news-releases/2016/02/17/st-louis-feds-bullard-discusses-changing-imperatives-for-us-monetary-policy-normalization

February 17, 2016 - Federal Reserve Bank of St. Louis to Host Career Fair - The Federal Reserve Bank of St. Louis will host a career fair Wednesday, Feb. 24. The fair will provide attendees with an opportunity to learn more about the St. Louis Fed and its culture, the different departments and their functions, current and future opportunities, and typical projects applicable to each area. www.stlouisfed.org/news-releases/2016/02/18/federal-reserve-bank-of-st-louis-to-host-career-fair

February 17, 2016 - NCUA Combined Federal Campaign Pledges Exceed $101,000 - Agency Honored in Four Categories Recognizing Employees’ Efforts - National Credit Union Administration employees pledged $101,179 to the 2015 Combined Federal Campaign of the National Capital Area, earning multiple honors from the world’s largest workplace giving campaign.
www.ncua.gov/newsroom/Pages/news-2016-feb-combined-federal-campaign.aspx

February 17, 2016 - FDIC Board Approves Proposal on Deposit Account Recordkeeping Requirements to Facilitate Timely Access to Deposits in Large Bank Failures - Proposal Would Apply to Institutions with More Than 2 Million Deposit Accounts - The Federal Deposit Insurance Corporation (FDIC) today approved a proposal for recordkeeping requirements for FDIC-insured institutions with a large number of deposit accounts to facilitate rapid payment of insured deposits to customers if the institutions were to fail. www.fdic.gov/news/news/press/2016/pr16010.html

February 17, 2016 - Stress Tests and Capital Planning - Enhancements to Federal Reserve Models Used to Estimate Operational Risk and Capital.  www.federalreserve.gov/bankinforeg/model-changes-20160217.pdf   

February 17, 2016 - Statistical Release - Industrial Production and Capacity Utilization - G.17 - Industrial production increased 0.9 percent in January after decreasing 0.7 percent in December. A storm late in the month likely held down production in January by a small amount. The index for utilities jumped 5.4 percent; demand for heating moved up markedly after having been suppressed by unseasonably warm weather in December.  www.federalreserve.gov/releases/g17/Current/

February 17, 2016 - Federal Reserve offers seven-day term deposits through its Term Deposit Facility - On February 18, 2016, the Federal Reserve will conduct a floating-rate offering of term deposits with an early withdrawal feature through its Term Deposit Facility. www.federalreserve.gov/newsevents/press/monetary/20160217b.htm

February 17, 2016 - Minutes of the Federal Open Market Committee, January 26-27, 2016. www.federalreserve.gov/newsevents/press/monetary/20160217a.htm 

February 16, 2016 - NCUA’s Four Permanent Funds Earn Clean Audit Opinions for 2015 - Reports Cover Share Insurance Fund, Operating Fund, CLF and CDRLF - The National Credit Union Administration’s four permanent funds have again received unmodified, or “clean,” audit opinions for 2015, according to audited financial reports released today by the Office of the Inspector General.  www.ncua.gov/newsroom/Pages/news-2016-feb-NCUA-audit.aspx

February 16, 2016 - January 2016 NCUA Board Video Available - The video recording of the January 2016 open meeting of the National Credit Union Administration Board is now available on the agency’s website. www.ncua.gov/newsroom/Pages/news-2016-feb-board-video.aspx

February 16, 2016 - The NCUA Report: Are Card-Free ATMs Around the Corner? - In the process of building smarter and more secured ATMs, could the methods consumers use to access their money evolve in ways never considered just a few years ago?  www.ncua.gov/newsroom/Pages/news-2016-feb-the-ncua-report.aspx

February 16, 2016 - Is There a Case for Inflation Overshooting? - Vasco Cúrdia - In the wake of the financial crisis, the Federal Reserve dropped the federal funds rate to near zero to bolster the U.S. economy. Recent research suggests that the constraint preventing this rate from being even lower has kept the economy from reaching its full potential. www.frbsf.org/economic-research/publications/economic-letter/2016/february/case-for-inflation-overshooting/

February 16, 2016 - Economic Outlook - Kevin J. Lansing, research advisor at the Federal Reserve Bank of San Francisco, stated his views on the current economy and the outlook as of February 11, 2016. www.frbsf.org/economic-research/publications/fedviews/2016/february/february-11-2016 /

February 16, 2016 - Federal Reserve Bank Budgets - 2016 Federal Reserve Bank Budgets.  www.federalreserve.gov/foia/budgets.htm

February 16, 2016 - Advanced Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System will be held under expedited procedures at 9:30 AM on February 18, 2016. Matter to be considered: Bank Supervisory Matter. www.federalreserve.gov/aboutthefed/boardmeetings/20160218advexp.htm

February 12, 2016 - The Risk of Returning to the Effective Lower Bound: An Implication for Inflation Dynamics after Lift-Off - Timothy Hills, Taisuke Nakata, and Sebastian Schmidt - In this note, we analyze an implication of the effective lower bound risk--the possibility that adverse shocks will force policymakers in the future to lower the policy rate to the ELB--on inflation dynamics after liftoff.   www.federalreserve.gov/econresdata/notes/feds-notes/2016/risk-of-returning-to-the-effective-lower-bound-an-implication-for-inflation-dynamics-after-lift-off-20160212.html

February 12, 2016 - Notice of Closed Board Meeting - A closed meeting of the Board of Governors of the Federal Reserve System will be held at 10:00 AM on February 19, 2016. Matter considered: Reserve Bank Personnel Matters. www.federalreserve.gov/aboutthefed/boardmeetings/20160219closed.htm

February 12, 2016 - The Federal Reserve's New Approach to Raising Interest Rates - Jane Ihrig, Ellen Meade, and Gretchen Weinbach, with Melanie Josselyn - At its December 2015 meeting, the Federal Open Market Committee--the Federal Reserve's monetary policy committee--raised its target range for the federal funds rate by 25 basis points, marking the end of an extraordinary seven-year period during which the federal funds target range was held near zero to support the recovery of the U.S. economy from the worst financial crisis and recession since the Great Depression. www.federalreserve.gov/econresdata/notes/feds-notes/2016/the-federal-reserves-new-approach-to-raising-interest-rates-20160212.html

February 12, 2016 - Measuring the Natural Rate of Interest Redux - Thomas Laubach and John C. Williams - Persistently low real interest rates have prompted the question whether low interest rates are here to stay. This essay assesses the empirical evidence regarding the natural rate of interest in the United States using the Laubach-Williams model. Since the start of the Great Recession, the estimated natural rate of interest fell sharply and shows no sign of recovering. www.federalreserve.gov/econresdata/feds/2016/files/2016011pap.pdf

February 12, 2016 - On the Effect of Student Loans on Access to Homeownership - Alvaro A. Mezza, Daniel R. Ringo, Shane M. Sherlund, and Kamila Sommer - This paper estimates the effect of student loan debt on subsequent homeownership in a uniquely constructed administrative data set for a nationally representative cohort aged 23 to 31 in 2004 and followed over time, from 1997 to 2010.  www.federalreserve.gov/econresdata/feds/2016/files/2016010pap.pdf

February 12, 2016 - The Risky Steady State and the Interest Rate Lower Bound - Timothy S. Hills, Taisuke Nakata, and Sebastian Schmidt - Even when the policy rate is currently not constrained by its effective lower bound (ELB), the possibility that the policy rate will become constrained in the future lowers today's inflation by creating tail risk in future inflation and thus reducing expected inflation.  www.federalreserve.gov/econresdata/feds/2016/files/2016009pap.pdf

February 12, 2016 - Predicting Fed Forecasts - Neil R. Ericsson - Monetary policy decisions by the Fed's Federal Open Market Committee have attracted considerable attention in recent years, especially with quantitative easing through large-scale asset purchases, the introduction of forward guidance, and December's "lift-off" after seven years of a near-zero federal funds rate.  www.federalreserve.gov/econresdata/notes/ifdp-notes/2016/predicting-fed-forecasts-20160212.html

February 12, 2016 - Federal Reserve announces TDF test operation - For release at 10:00 a.m. EST - The Federal Reserve plans to continue its previously announced periodic testing of the Term Deposit Facility with one operation in February. www.federalreserve.gov/newsevents/press/monetary/20160212a.htm
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February 11, 2016 - Midwest Farmland Values Down Once Again - Latest AgLetter reports Seventh District farmland values for 2015 decreased 3 percent from the previous year, marking the second consecutive annual decline. Values for “good” agricultural land in the fourth quarter of 2015 were 1 percent lower than in the third quarter. www.chicagofed.org/~/media/publications/agletter/2015-2019/february-2016-pdf.pdf?la=en

February 11, 2016 - OCC Hosts Memphis Workshop for Bank Directors - The Office of the Comptroller of the Currency will host a workshop in Memphis at the Sheraton Memphis Downtown, February 29 - March 2, for directors of national community banks and federal savings associations supervised by the OCC. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-14.html

February 11, 2016 - Financial Market Stress Rises Modestly - The St. Louis Fed Financial Stress Index rose in the latest reporting week. For the week ending Febr. 5, the index measured -0.472, up slightly from the previous week’s revised value of -0.487.  www.stlouisfed.org/news-releases/2016/02/11/financial-market-stress-rises-modestly

February 11, 2016 - Federal Reserve Board issues repeal of Regulation AA and requests comment on proposal to repeal Regulation C - The Federal Reserve Board on Thursday announced the repeal of one regulation and a proposal to repeal a second in order to comply with statutory provisions that transferred certain consumer protection rulewriting authority to the Consumer Financial Protection Bureau. www.federalreserve.gov/newsevents/press/bcreg/20160211a.htm

February 10, 2016 - Emerging Trends in the U.S. and Colorado Economies - By Alison Felix. www.kansascityfed.org/~/media/files/publicat/speeches/2016/2016-felix-coassocrealtors-02-10.pdf

February 10, 2016 - NCUA - Follow NCUA’s Twitter Chat for Financial Tips - Feb. 16 Conversation on #NCUAChat Will Discuss Savings Strategies - Credit unions and their members can share ideas on saving money and building financial security during the National Credit Union Administration’s live Twitter chat on Tuesday, Feb. 16, beginning at 11 a.m. Eastern.
www.ncua.gov/newsroom/Pages/news-2016-feb-twitter-chat.aspx

February 10, 2016 - Report to the Congress - Monetary Policy Report - The Federal Reserve Act requires the Federal Reserve Board to submit written reports to Congress containing discussions of "the conduct of monetary policy and economic developments and prospects for the future." www.federalreserve.gov/monetarypolicy/mpr_default.htm

February 10, 2016 - Stanley Fischer, Vice Chairman - The Lender of Last Resort Function in the United States - At "The Lender of Last Resort: An International Perspective," a conference sponsored by the Committee on Capital Markets Regulation, Washington, D.C. www.federalreserve.gov/newsevents/speech/fischer20160210a.htm

February 10, 2016 - Janet L. Yellen, Chair - Semiannual Monetary Policy Report to the Congress - Before the Committee on Financial Services, U.S. House of Representatives, Washington, D.C. www.federalreserve.gov/newsevents/testimony/yellen20160210a.htm

February 9, 2016 - Mortgage Refinancing during the Great Recession: The Role of Credit Scores - Gene Amromin , Benjamin J. Keys , Michael J. Murto - This article examines whether deteriorating credit scores may have posed a barrier to mortgage refinancing during the Great Recession of 2008–09 and its immediate aftermath.  www.chicagofed.org/~/media/publications/chicago-fed-letter/2016/cfl355-pdf.pdf

February 9, 2016 - No Guarantees, No Trade: How Banks Affect Export Patterns - Friederike Niepmann and Tim Schmidt-Eisenlohr - How relevant are financial instruments to manage risk in international trade for exporting? Employing a unique dataset of U.S. banks' trade finance claims by country, this paper estimates the effect of shocks to the supply of letters of credit on U.S. exports. www.federalreserve.gov/econresdata/ifdp/2016/files/ifdp1158.pdf

February 9, 2016 - The Rise of Exporting By U.S. Firms - William F. Lincoln and Andrew H. McCallum - Although a great deal of ink has been spilled over the consequences of globalization, we do not yet fully understand the causes of increased worldwide trade. Using confidential microdata from the U.S. Census, we document widespread entry into countries abroad by U.S. firms from 1987 to 2006. www.federalreserve.gov/econresdata/ifdp/2016/files/ifdp1157.pdf

February 9, 2016 - The Expected Real Interest Rate in the Long Run: Time Series Evidence with the Effective Lower Bound - Benjamin K. Johannsen and Elmar Mertens - In response to the global financial crisis, the Federal Open Market Committee lowered the target for the federal funds rate to a range of 0 to 25 basis points in December 2008, and maintained that target range until the end of 2015.  www.federalreserve.gov/econresdata/notes/feds-notes/2016/the-expected-real-interest-rate-in-the-long-run-time-series-evidence-with-the-effective-lower-bound-20160209.html

February 9, 2016 - Comptroller of the Currency Discusses Support for Revitalizing Communities - Comptroller of the Currency Thomas J. Curry today discussed efforts to help revitalize communities and highlighted how community members can voice their concerns. Remarks came during a speech before the 2016 National Interagency Community Reinvestment Conference.
www.occ.gov/news-issuances/speeches/2016/pub-speech-2016-13.pdf

February 9, 2016 - OCC Terminates Mortgage Servicing-Related Consent Orders Against U.S. Bank and Santander, Issues Civil Money Penalties - The Office of the Comptroller of the Currency today terminated mortgage servicing-related consent orders against U.S. Bank National Association and Santander Bank, N.A., and assessed civil money penalties against the banks for previous violations of the orders. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-12.html

February 9, 2016 - Regulatory Relief - Guidance to Help Financial Institutions and to Facilitate Recovery in Areas of Arkansas Affected by Severe Storms, Tornadoes, Straight-Line Winds, and Flooding - The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of Arkansas affected by severe weather. www.fdic.gov/news/news/financial/2016/fil16011.html

February 9, 2016 - FDIC Releases Economic Scenarios for 2016 Stress Testing - The Federal Deposit Insurance Corporation today released the economic scenarios that will be used by certain financial institutions with total consolidated assets of more than $10 billion for stress tests required under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. www.fdic.gov/news/news/press/2016/pr16009.html

February 8, 2016 - The Dollar in the U.S. International Transactions Model - Joseph Gruber, Andrew McCallum, and Robert Vigfusson - The dollar's 20 percent climb against a broad index of foreign currencies since the middle of 2014 has led to an increased focus on how dollar fluctuations affect the U.S. economy.  www.federalreserve.gov/econresdata/notes/ifdp-notes/2016/the-dollar-in-the-us-international-transactions-model-20160208.html

February 8, 2016 - Will the Economic Recovery Die of Old Age? - Glenn D. Rudebusch - Is the current recovery more likely to end because it’s lasted so long? Have various imbalances and rigidities accumulated to make the economy frailer and more susceptible to a recessionary shock?  www.frbsf.org/economic-research/publications/economic-letter/2016/february/will-economic-recovery-die-of-old-age/

February 8, 2016 - Policy Externalities and Banking Integration - Michael Smolyansky - Can policies directed at the banking sector in one jurisdiction spill over and affect real economic activity elsewhere? To investigate this question, I exploit changes in tax rates on bank profits across U.S. states. Banks respond by reallocating small-business lending to otherwise unaffected states. www.federalreserve.gov/econresdata/feds/2016/files/2016008pap.pdf

February 8, 2016 - Interpreting Shocks to the Relative Price of Investment with a Two-Sector Model - Luca Guerrieri, Dale Henderson, and Jinill Kim - Consumption and investment comove over the business cycle in response to shocks that permanently move the price of investment.   www.federalreserve.gov/econresdata/feds/2016/files/2016007pap.pdf

February 8, 2016 - Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System was held at 11:30 AM on February 8, 2016, under expedited procedures. Matter considered: Review and determination by the Board of Governors of the advance and discount rates to be charged by the Federal Reserve Banks. www.federalreserve.gov/aboutthefed/boardmeetings/20160208exp.htm

February 8, 2016 - International Spillovers of Monetary Policy - John Ammer, Michiel De Pooter, Christopher Erceg, and Steven Kamin - International monetary policy spillovers have been the subject of much economic debate since at least the early interwar period, and formal modeling of monetary policy in an open economy dates back to the pioneering analyses of Mundell and Fleming.  www.federalreserve.gov/econresdata/notes/ifdp-notes/2016/international-spillovers-of-monetary-policy-20160208.html

February 8, 2016 - Proposals for Comment - Proposal to approve under OMB delegated authority the revision, without extension, FR Y-9C, FR Y-9LP, FR Y-11, FR Y-11S, FR 2314, FR 2314S, FR Y-12, FR Y-12A, FR Y-14A/Q/M, FR Y-15, Reg Y-13, FR Y-6, FR Y-7, FR Y-10, FR Y-10E, FR 4200, FR 4201. www.federalreserve.gov/apps/foia/proposedregs.aspx#icp

February 5, 2016 - NCUA - CTK Credit Union Closes - Member Deposits Protected up to $250,000 by Share Insurance Fund - The Wisconsin Office of Credit Unions today served an order of liquidation on CTK Credit Union of Milwaukee and immediately appointed the National Credit Union Administration as liquidating agent.
www.ncua.gov/newsroom/Pages/news-2016-feb-ctk-closes.aspx

February 5, 2016 - 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. The list covers evaluation ratings that the FDIC assigned to institutions in November 2015. www.fdic.gov/news/news/press/2016/pr16008.html

February 5, 2016 - Statistical Release - Consumer Credit - G.19 - Consumer credit increased at a seasonally adjusted annual rate of 5-3/4 percent during the fourth quarter. Revolving credit increased at an annual rate of 5-1/4 percent, while nonrevolving credit increased at a seasonally adjusted rate of 6 percent.  www.federalreserve.gov/releases/g19/current/

February 5, 2016 - FOIA - Chair Yellen's calendar, December 2015.  www.federalreserve.gov/foia/chairscalendar.htm

February 5, 2016 - State and Local Pension Funding in the Enhanced Financial Accounts - Matthew Hoops, Paul Smith, and Irina Stefanescu - In this Note we describe new state-level data on the funding status of state and local government defined-benefit pension plans, which is part of the Enhanced Financial Accounts initiative.  www.federalreserve.gov/econresdata/notes/feds-notes/2016/state-and-local-pension-funding-in-the-enhanced-financial-accounts-20160205.html

February 5, 2016 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm 

February 5, 2016 - Is Los Angeles Becoming Transit Oriented? - Jenny Schuetz, Genevieve Giuliano, and Eun Jin Shin - Over the past 20 years, local and regional governments in the Los Angeles metropolitan area have invested significant resources in building rail transit infrastructure that connects major employment centers.  www.federalreserve.gov/econresdata/feds/2016/files/2016004pap.pdf

February 5, 2016 - Federal Reserve Board announces $131 million penalty against HSBC North America Holdings, Inc. and HSBC Finance Corporation - The Federal Reserve Board on Friday announced a $131 million penalty against HSBC North America Holdings, Inc. and HSBC Finance Corporation for deficiencies in residential mortgage loan servicing and foreclosure processing.  www.federalreserve.gov/newsevents/press/enforcement/20160205a.htm
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February 4, 2016 - Labor Issues Facing Agriculture and the Rural Midwest - Chicago Fed Letter looks at labor-related issues confronting the Midwest’s rural economy, including health care and immigration. - David Oppedahl - For years the rural Midwest has faced concerns about its falling population, waning work force vitality and increasing health problems - all of which have contributed to slower economic growth relative to that of the region’s urban areas.  www.chicagofed.org/~/media/publications/chicago-fed-letter/2016/cfl354-pdf.pdf

February 4, 2016 - NCUA - Cory Methodist Church Credit Union Conserved - Member Deposits Remain Protected to $250,000; Member Services Uninterrupted - The Superintendent of the Ohio Division of Financial Institutions today placed Cory Methodist Church Credit Union, of Cleveland, into conservatorship and appointed the National Credit Union Administration as conservator.  www.ncua.gov/newsroom/Pages/news-2016-feb-cory-methodist-conserved.aspx

February 4, 2016 - OCC Releases 2016 Schedule of Workshops for Directors of National Community Banks and Federal Savings Associations - The Office of the Comptroller of the Currency today announced its 2016 schedule of workshops for directors of national community banks and federal savings associations. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-11.html

February 4, 2016 - For the First Time in Four Weeks, Financial Market Stress Declines - Financial market stress declined in the latest reporting week. For the week ending Jan. 29, the St. Louis Fed Financial Stress Index (STLFSI) measured -0.484, down modestly from the previous week’s revised value of -0.343.  www.stlouisfed.org/news-releases/2016/02/04/st-louis-financial-stress-index-declines-for-first-time-in-four-weeks

February 4, 2016 - Legal Interpretations - February 2, 2016 - Letters to Mark Chorazak, Esq., granting requests by Castle Creek Capital LLC, Rancho Santa Fe, California, for general exemptions pursuant to the Depository Institution Management Interlocks Act and the Board's Regulation L to allow (1) Mr. John M. Eggemeyer (PDF) to serve as a director of Heritage Commerce Corp. and Heritage Bank of Commerce, both of San Jose, while also serving as a management official of PacWest Bancorp, Los Angeles, all of California; and (2) Mr. Mark G. Merlo (PDF) to serve as a director of Carlile Bancshares, Inc., Fort Worth, Texas, while also serving as a management official of First NBC Bank Holding Company, New Orleans, Louisiana. www.federalreserve.gov/bankinforeg/LegalInterpretations/bhc_changeincontrol2016.htm

February 4, 2016 - Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System was held at 2:00 PM on February 4, 2016, under expedited procedures. Matter considered: Proposed Semiannual Monetary Policy Report and Statement to the Congress.   www.federalreserve.gov/aboutthefed/boardmeetings/20160204exp.htm

February 4, 2016 - Advanced Notice of a Meeting under Expedited Procedures - A closed meeting of the Board of Governors of the Federal Reserve System will be held under expedited procedures at 11:30 AM on February 8, 2016. Matter to be considered: Review and determination by the Board of Governors of the advance and discount ratesto be charged by the Federal Reserve Banks. www.federalreserve.gov/aboutthefed/boardmeetings/20160208advexp.htm

February 3, 2016 - Financial Conditions Continue to Tighten - The NFCI increased from a recent low of -0.73 in the first week of November to -0.55 in the last week of January.   www.chicagofed.org/publications/nfci/index

February 3, 2016 - NCUA - Montauk Credit Union Addressing Challenges - Member Accounts Remain Protected by the Share Insurance Fund - In the four months since Montauk Credit Union of New York, New York, was placed into conservatorship, the credit union has taken several steps to address financial and management issues affecting the safety and soundness of its operations. www.ncua.gov/newsroom/Pages/news-2016-feb-montauk.aspx

February 3, 2016 - OCC Releases CRA Evaluations for 20 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 January 1, 2016 through January 31, 2016. www.occ.gov/news-issuances/news-releases/2016/nr-occ-2016-10.html

February 3, 2016 - Interest Rate Risk Videos Updated - As part of the FDIC's Community Banking Initiative, the FDIC is announcing the release of updated videos on interest rate risk. The new videos provide financial institution directors, management and staff with resources for better understanding interest rate risk and how it can be prudently managed. www.fdic.gov/news/news/financial/2016/fil16010.html

February 3, 2016 - Saving for College and Section 529 Plans - Simona Hannon, Kevin Moore, Max Schmeiser, and Irina Stefanescu - The past decade has simultaneously witnessed a substantial increase in enrollment at post-secondary institutions and a marked increase in college tuition. Not surprisingly, this trend overlapped with an increased demand for student loans and tax-advantaged educational savings. www.federalreserve.gov/econresdata/notes/feds-notes/2016/saving-for-college-and-section-529-plans-20160203.html

February 3, 2016 - Predicting Operational Loss Exposure Using Past Losses - Filippo Curti and Marco Migueis - Operational risk models, such as the loss distribution approach, frequently use past internal losses to forecast operational loss exposure. However, the ability of past losses to predict exposure, particularly tail exposure, has not been thoroughly examined in the literature. www.federalreserve.gov/econresdata/feds/2016/files/2016002pap.pdf

February 3, 2016 - Can a Bank Run Be Stopped? Government Guarantees and the Run on Continental Illinois - Mark A. Carlson and Jonathan D. Rose This paper analyzes the run on Continental Illinois in 1984. We find that the run slowed but did not stop following an extraordinary government intervention, which included the guarantee of all liabilities of the bank and a commitment to provide ongoing liquidity support. Continental's outflows were driven by a broad set of US and foreign financial institutions. www.federalreserve.gov/econresdata/feds/2016/files/2016003pap.pdf

February 3, 2016 - Reserve Bank Operations and Payment Systems Director to retire - Reserve Bank Operations and Payment Systems Director to retire.   www.federalreserve.gov/newsevents/press/other/20160203a.htm

February 2, 2016 - NCUA - Register Now for NCUA’s Feb. 11 CUSO Registry Webinar - As part of the launch of the CUSO Registry, NCUA will host a webinar on how to use the system on Thursday, Feb. 11, beginning at 2:30 p.m. Eastern. www.ncua.gov/newsroom/Pages/news-2016-feb-cuso-webinar.aspx

February 2, 2016 - NCUA- Texans Credit Union Reports Strong Financial Performance - Texans Credit Union, a state-chartered, federally insured credit union operating under the conservatorship of the National Credit Union Administration, posted year-end 2015 net income of $26.63 million, marking 48 consecutive months of positive earnings. www.ncua.gov/newsroom/Pages/news-2016-feb-texans-report.aspx

February 2, 2016 - The U.S. Outlook and Monetary Policy - Esther L. George President and Chief Executive Officer Federal Reserve Bank of Kansas City.   www.kansascityfed.org/~/media/files/publicat/speeches/2016/2016-george-kansascity-02-02.pdf

February 2, 2016 - Kathy Deck Joins St. Louis Fed’s Real Estate Industry Council - Kathy Deck, director of the Center for Business and Economic Research in the Sam M. Walton College of Business at the University of Arkansas, has been named to the Real Estate Industry Council of the Federal Reserve Bank of St. Louis. www.stlouisfed.org/news-releases/2016/02/01/kathy-deck-joins-st-louis-fed-real-estate-industry-council

February 2, 2016 - FDIC Announces $62.95 million Settlement With Morgan Stanley Related to RMBS Claims - The Federal Deposit Insurance Corporation, as receiver for three failed banks, today announced a $62.95 million settlement of residential mortgage-backed securities claims against Morgan Stanley & Company LLC. www.fdic.gov/news/news/press/2016/pr16007.html

February 2, 2016 - The Rise of Exporting by U.S. Firms - William F. Lincoln1 and Andrew H. McCallum 2 - Over the last few decades global trade has expanded significantly, both in terms of the volume of trade as well as the number of varieties of goods traded across countries.  www.federalreserve.gov/econresdata/notes/ifdp-notes/2016/the-rise-of-exporting-by-u-s-firms-20160202.html

February 2, 2016 - Federal Reserve Highlights Progress in Efforts to Improve U.S. Payment System - In a report that comes one year after the publication of its Strategies for Improving the U.S. Payment System, the Federal Reserve on Tuesday detailed the progress made and outlined anticipated steps for moving forward with its initiative to enhance payment system speed, efficiency, and security. www.federalreserve.gov/newsevents/press/other/20160202a.htm

February 2, 2016 - Federal Reserve Board announces termination of enforcement actions.  www.federalreserve.gov/newsevents/press/enforcement/20160202a.htm

February 1, 2016 - NCUA - Montgomery County Credit Union Merges into Bridge Credit Union - Member Deposits Remain Protected to $250,000, Member Services Uninterrupted - Montgomery County Credit Union of Dayton, Ohio, has merged into Bridge Credit Union of Columbus, Ohio, effective Jan. 31, the National Credit Union Administration announced today.
www.ncua.gov/newsroom/Pages/news-2016-jan-montgomery-county-credit-union.aspx

February 1, 2016 - Changes in Labor Participation and Household Income - Robert Hall and Nicolas Petrosky-Nadeau - The percentage of people active in the labor force has dropped substantially over the past 15 years. Part of this decline appears to be the result of secular factors like the aging of the workforce. www.frbsf.org/economic-research/
 
February 1, 2016 - Supervisory Insights Journal - Winter 2015 Issue Now Available - The Winter 2015 issue of Supervisory Insights features three articles of interest to examiners, bankers, and supervisors. These articles address the development of an effective cybersecurity framework, marketplace lending, and recent results from the "FDIC's Credit and Consumer Products/Services Survey." www.fdic.gov/news/news/financial/2016/fil16009.html

February 1, 2016 - FDIC Publication Focuses on Enhancing Banks' Cybersecurity Programs -"A Framework for Cybersecurity," which appears in the Winter 2015 issue of Supervisory Insights, released today, discusses the cyber threat landscape and how financial institutions' information security programs can be enhanced to address evolving cybersecurity risks.  www.fdic.gov/news/news/press/2016/pr16006.html

February 1, 2016 - Foreign Exchange Rates -- G.5 Monthly - The table below shows the average rates of exchange in JANUARY 2016 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. www.federalreserve.gov/releases/g5/current/default.htm

February 1, 2016 - Surveys and Reports - Senior Loan Officer Opinion Survey on Bank Lending Practices, January 2016 - The January 2016 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.  www.federalreserve.gov/boarddocs/snloansurvey/201602/

February 1, 2016 -Stanley Fischer, Vice Chairman - Recent Monetary Policy - At the C. Peter McColough Series on International Economics, Council on Foreign Relations, New York, New York.  www.federalreserve.gov/newsevents/speech/fischer20160201a.htm