Bank Regulatory News
July 1999

July 30, 1999 - FDIC MAKES PUBLIC JUNE 1999 ENFORCEMENT ACTIONS; NO
ADMINISTRATIVE HEARINGS SCHEDULED FOR AUGUST
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of
administrative enforcement actions taken against banks and individuals in June. No administrative
hearings are scheduled for August.

July 29, 1999 - The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data about 1998 mortgage lending activity in metropolitan areas and released analyses of nationwide summary statistics regarding lending patterns. The nationwide summary statistics are attached to this release; the following provides a general overview.

July 29, 1999 - OCC ANNOUNCES SEVEN NEW ENFORCEMENT ACTIONS
WASHINGTON, DC --The Office of the Comptroller of the Currency (OCC) today announced seven new enforcement actions taken against national banks. The actions released today include one formal agreement, five civil money penalties, and one removal.

July 29, 1999 - The Federal Financial Institutions Examination Council (FFIEC) today announced the availability of data on small business, small farm, and community development lending reported by commercial banks and savings associations (including savings banks and savings and loan associations) under the Community Reinvestment Act regulations.

July 28, 1999 - The Federal Reserve Board today announced its approval of the application of Security Pecos Bancshares, Inc., Pecos, Texas, and Security Delaware Pecos Bancshares, Inc., Dover, Delaware, to acquire Security State Bank of Pecos, Pecos, Texas.

July 27, 1999 - OCC Highlights Basel Credit Risk Guidance Papers
WASHINGTON--The Office of the Comptroller of the Currency (OCC) advised national banks today that the Basel Committee on Banking Supervision has issued four papers providing guidance on various aspects of credit risk in banking activities. The four papers include one final paper and three draft consultive papers. The three consultive papers invite all interested parties, including
national banks, to comment to the Committee by November 30, 1999.

July 22, 1999 - FOREIGN ASSETS CONTROL ACT - Executive Order Imposing an Assets Freeze and  Trade Embargo Against the Taliban in Afghanistan
President Clinton has signed an Executive Order, effective July 6, 1999, imposing an assets
freeze and trade embargo against the Taliban in Afghanistan. The order blocks all property or
interests in property of the Taliban or entities designated as owned or controlled or acting on its
behalf. Imports and exports of goods and services to the Taliban or to areas of Afghanistan
controlled by the Taliban also are prohibited by the order.

July 21, 1999 - Comptroller Urges Congress to Strengthen Consumer Privacy Protections WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. told a House panel today that Congress should consider strengthening the consumer privacy protections included in pending financial modernization legislation.

July 20, 1999 - OCC RELEASES CRA EVALUATIONS FOR 54 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 June 15 through July 14. The list contains only national banks and insured federal branches of foreign banks that have received ratings. The possible ratings are outstanding, satisfactory, needs to improve, and substantial noncompliance.

July 20, 1999 - The Federal Reserve Board today voted to establish a Century Date Change Special Liquidity Facility, a program for lending to depository institutions from October 1, 1999,
through April 7, 2000.

July 20, 1999 - The Federal Reserve Board today announced the execution of a Written Agreement by and between Grimes County Capital Corporation, Houston, Texas, and the Federal Reserve Bank of Dallas.

July 20, 1999 - The Federal Reserve Board today announced the execution of a Written Agreement by and between Grimes County Capital Corporation, Houston, Texas, and the Federal Reserve Bank of Dallas.

July 19, 1999 - The Federal Reserve Board today announced the issuance of a Notice of Intent to Prohibit against Bruce Jeffrey Kingdon, Kenneth Goglia, and Harvey Plante, former officers of the Bankers Trust Company, New York, New York. The Notice seeks the issuance of orders permanently barring Messrs. Kingdon, Goglia and Plante from participating in the banking industry.

July 16, 1999 - TEXAS GOVERNOR SIGNS BILL TO USHER IN INTERSTATE BRANCHING
Governor Bush has signed a bill which formally opens Texas to interstate bank branching. The bill also makes a Texas bank charter one of the most attractive in the nation to conduct banking business.

July 16, 1999 - The Federal Financial Institutions Examination Council (FFIEC) announced today
the availability of data on 1998 mortgage lending transactions at individual institutions in metropolitan areas throughout the nation. These data, in the form of disclosure statements, are available from the 7,837 lenders covered by the Home Mortgage Disclosure Act (HMDA).

July 15, 1999 - Because of the approaching century date change, the Federal Reserve Board announced today that this year it would not require some depository institutions to shift to more
frequent and detailed reporting of their deposits in September.  Normally, institutions may be required to switch to a new reporting category each September, depending on growth in their level of deposits and reservable liabilities. The Federal Reserve collects deposit data--either weekly, quarterly, or annually--in order to administer reserve requirements and measure the money supply. In general, the larger the institution, the more detailed and more frequent is its reporting.

July15, 1999 - The Office of Thrift Supervision (OTS) reported today that it completed three enforcement actions in May 1999. This brings to 30 the number of enforcement actions by OTS since January 1, 1999.

July 15, 1999 - The Office of Thrift Supervision (OTS) reported today that it completed one enforcement actions in April 1999.  This brings to 27 the number of enforcement actions by OTS since January 1, 1999.

July 15, 1999 - The Federal Financial Institutions Examination Council (FFIEC) is pleased to
announce the release of a new CD-ROM software product, the 1999 FFIEC Census Data CD-ROM, designed to help banks and thrifts comply with the Community Reinvestment Act (CRA) and the Home Mortgage Disclosure Act (HMDA).

July 12, 1999 - The Securities and Exchange Commission, Federal Deposit Insurance Corporation, Federal Reserve Board, Office of the Comptroller of the Currency and Office of Thrift Supervision have jointly issued the attached letter to financial institutions on the allowance for loan losses.

July 9, 1999 - FDIC APPROVES THE ASSUMPTION OF THE INSURED DEPOSITS OF
OCEANMARK BANK, A FSB, NORTH MIAMI BEACH, FLORIDA
The Federal Deposit Insurance Corporation (FDIC) has approved the assumption of all the
deposits of Oceanmark Bank, a FSB, North Miami Beach, Florida, by Third Federal Savings &
Loan Association of Florida, North Miami Beach, Florida, a newly-chartered institution, which is
a subsidiary of TSF Financial, Inc., Wilmington, Delaware.

July 9, 1999 - Oceanmark Bank Sold to TFS Financial; First Failure Since 1996
WASHINGTON, D.C., July 9, 1999 – The Office of Thrift Supervision (OTS) today placed
Oceanmark Bank, F.S.B., North Miami, Fla., in receivership and chartered a new federal
thrift institution to take its place. OTS said Oceanmark was the first thrift to fail since
1996.

July 9, 1999 - FDIC APPROVES THE ASSUMPTION OF ALL THE DEPOSITS OF EAST TEXAS NATIONAL BANK OF MARSHALL, MARSHALL, TEXAS
East Texas National Bank of Marshall, Marshall, Texas, was closed today by the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) was named receiver. The FDIC entered into an agreement with Fredonia State Bank, Nacogdoches, Texas, to assume all the failed bank's deposits and substantially all its assets.

July 8, 1999 - The Federal Reserve today decided not to propose specific changes to Regulation CC at this time to reduce the maximum holds banks may place on nonlocal checks.

July 8, 1999 - FOREIGN ASSETS CONTROL ACT - Specially Designated Nationals and Blocked Persons
On June 17, 1999, the U.S. Department of the Treasury's Office of Foreign Assets Control
(OFAC) updated its listing of Specially Designated Nationals and Blocked Persons to include
new entries for the regime in Belgrade under the sanctions program involving Kosovo. On June
25, 1999, OFAC again updated its listing of Specially Designated Nationals and Blocked
Persons to include additional names under its Kosovo program and to add more names to the
list of Specially Designated Terrorists.

July 8, 1999 - SUSPICIOUS ACTIVITY REPORTS - SAR Bulletin
Attached is a copy of the Department of the Treasury's June 1999 issue of SAR Bulletin,
published by the department's Financial Crimes Enforcement Network (FinCEN). The
publication is the first of a series of overviews of trends and patterns in money laundering derived
from the Suspicious Activity Report (SAR) database. It may provide financial communities with
information that can help financial institutions prevent and detect financial crime.

July 8, 1999 - SUMMARY OF DEPOSITS SURVEY - Summary of Deposits Survey for June 30, 1999
The annual Summary of Deposits (SOD) survey form and instructions for the period ending June
30, 1999, are enclosed. While the survey is unchanged from last year, the instructions and
definitions have been changed slightly for clarification. Also, a table of contents is provided for
easy reference for reporting new, closed and relocated branches.

July 8, 1999 - OTS Releases June National CRA Ratings
WASHINGTON, D.C., July 8, 1999-- The Office of Thrift Supervision (OTS) today released
savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that
became available in June 1999.

July 7, 1999 - RISK ASSESSMENT TOOLS AND PRACTICES FOR INFORMATION SYSTEM SECURITY - FDIC Issues Paper on Information System Security Issues
The Federal Deposit Insurance Corporation (FDIC) is providing financial institutions the
attached paper on information system security issues entitled "Risk Assessment Tools and
Practices for Information System Security." Bank management is responsible for ensuring that
systems and data are protected against risks associated with emerging technology and computer
networks.

July 7, 1999 - The Federal Reserve Board, along with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation and the Office of Thrift Supervision, today issued a joint policy statement regarding branch closings by insured depository institutions.

July 7, 1999 - The Federal Reserve Board today announced the issuance of a Combined Order to Cease and Desist and Order of Assessment of a Civil Money Penalty against John Riesmeyer, a
former foreign exchange trader and institution-affiliated party of the New York Branch of Barclays Bank PLC, London, England.

July 6, 1999 - YEAR 2000-RELATED FRAUD PREVENTION GUIDANCE - Interagency Guidance on Year 2000-Related Fraud Prevention
The Federal Financial Institutions Examination Council (FFIEC) has issued the attached
statement to alert financial institutions to the potential risks of Year 2000-related fraud. The
interagency statement encourages financial institutions to alert their customers about fraudulent
schemes involving the century date change. It also urges institutions to mitigate their own risks by
continuing to follow internal controls and security procedures, and to enhance them where
necessary.

July 6, 1999 - Year 2000-Related Fraud Prevention
This advisory alerts you to the release of Federal Financial Institutions Examination Council (FFIEC) guidance, “Year 2000-Related Fraud Prevention.” The FFIEC acted out of concern that criminal elements will try to defraud financial institutions and their customers using the Year 2000 as cover. The FFIEC guidance urges financial institutions to review their fraud prevention programs to ensure that they are protecting themselves and their customers from Year 2000-related fraud.

July 6, 1999 - FFIEC Releases Guidelines on Year 2000 Fraud Prevention
The Federal Financial Institutions Examination Council (FFIEC) today issued guidance urging financial institutions to review their fraud prevention programs to ensure that they are protecting themselves and their customers from Year-2000 related fraud.

July 6, 1999 - Plain Language Makes Examiner Handbooks Easier To Understand
WASHINGTON, D.C., July 6, 1999 – Plain language is the order of the day at the Office of
Thrift Supervision (OTS), as the agency carries out the June 1998 directive of President
Clinton to make government writing understandable.

July 1, 1999 - FDIC ISSUES JUNE LIST OF BANKS EXAMINED FOR CRA COMPLIANCE
The FDIC today issued its monthly list of state nonmember banks recently evaluated for
compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that
became available in June 1999.