Bank Regulatory News
1999 - FDIC MAKES PUBLIC MAY 1999 ENFORCEMENT ACTIONS; NO
ADMINISTRATIVE HEARINGS SCHEDULED FOR JULY
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of
administrative enforcement actions taken against banks and individuals in May. No
hearings are scheduled for July.
29, 1999 - BRANCH CLOSINGS - Interagency Policy Statement on Branch Closings
The FDIC Board of Directors has amended its policy statement on branch closings. The
incorporate amendments to the Federal Deposit Insurance Act mandated by the Riegle-Neal
Interstate Banking and Branching Efficiency Act of 1994 and the Economic Growth and
Regulatory Paperwork Reduction Act of 1996. The new policy statement is effective June 29,
28, 1999 - BASEL COMMITTEE ON BANKING SUPERVISION CAPITAL ACCORD
Basel Committee on Banking Supervision Seeks Comment on Proposed Revisions to the 1988
On June 3, 1999, the Basel Committee on Banking Supervision (Basel Committee) issued a
consultative paper proposing revisions to the 1988 Capital Accord and requesting industry
comment. The comment period closes March 31, 2000.
June 28, 1999 - Auto
Club Insurance & Auto Club Services Granted Thrift Charter
WASHINGTON, D.C., June 28, 1999 A trio of interrelated Michigan organizations that
serve approximately 2.2 million members of the AAA automobile organization in Michigan and
Wisconsin received approval to organize a federal savings bank, Auto Club Trust, which
will be based in Dearborn, Mich.
June 25, 1999 - OCC Chief Counsel
Julie L. Williams Underscores Importance Of Accurate Disclosure and Fair Treatment for
Customers of Bank-Affiliated Brokers
WASHINGTON, D.C. -- Julie L. Williams, Chief Counsel for the Office of the Comptroller of
the Currency, told Congress today that bank and securities regulators share a common
concern that bank customers understand the risks of securities investments and are made
aware that these products are not FDIC-insured or guaranteed by the bank.
25, 1999 - The Federal Reserve Board today announced the execution of a Written Agreement
by and between Banco Popular del Ecuador, S.A., Quito, Ecuador, Banco Popular del
Ecuador's Miami agency, the Federal Reserve Bank of Atlanta and the State of Florida
Department of Banking and Finance.
24, 1999 - New Expedited Processing Procedure for Certain Applications Filed
Under the Bank Merger Act
The Federal Deposit Insurance Corporation (FDIC) has implemented a new processing
procedure for certain applications filed under the Bank Merger Act (Section 18(c) of the
Federal Deposit Insurance Act) that are also otherwise eligible for expedited processing.
institution need not specifically request the new processing procedure in its application
action is in keeping with the FDIC's ongoing efforts to minimize regulatory burden and
its application processes.
June 24, 1999 - Bank Trading
Revenue Increases 77% To Record $3.6 Billion For 1st Quarter WASHINGTON -- During the
first quarter 1999, bank trading revenue increased 77 percent to a record $3.6 billion, as
compared to $2.0 billion for the fourth quarter 1998, the Office of the Comptroller of the
Currency (OCC) reported today in its Bank Derivatives Report: First Quarter 1999.
Recognizing that fourth quarter earnings are generally lower than other quarters, bank
trading revenues still grew an impressive 33 percent from the $2.7 billion reported for
the first quarter 1998. Mike Brosnan, OCC Deputy Comptroller for Risk Evaluation,
attributed the healthy revenue stream to the combined effects of continued strong
customer activity along with the more favorable market conditions compared to those
experienced last fall."
June 22, 1999 - OCC ANNOUNCES
24 NEW ENFORCEMENT ACTIONS WASHINGTON, DC --The Office of the Comptroller of the
Currency (OCC) today announced 24 new enforcement actions taken against national banks.
The actions released today include one formal agreement, one cease and desist order, 16
civil money penalties, three removals, one prompt corrective action directive, one
personal cease and desist order for restitution, and one safety and soundness order.
June 22, 1999 - Community
Development Corporations, Community Development Projects, and Other Public Welfare
The attached proposal to amend Part 24, the regulation governing national bank investments
designed primarily to promote the public welfare, was published in the Federal Register on
June 10, 1999. Comments are due by August 9, 1999.
June 22, 1999 - OCC Chief
Counsel Urges Industry to Act on Privacy Concerns WASHINGTON -- Chief Counsel Julie L.
Williams today urged bankers to look at privacy rights from their customers' perspective.
"In developing and implementing privacy policies, think about how your
customers would react if you gave them a full description of how much of their information
you collect, what you do with it, whether you transfer it, who you transfer it to and what
happens to it then," she said in a speech to the Financial Institutions Insurance
22, 1999 - YEAR 2000 CONTINGENCY PLANNING - Interim Rule Requiring Banks and Thrifts With
Less Than "Satisfactory" Y2K Ratings to Maintain Key Deposit and Loan
The FDIC Board of Directors has approved the attached interim final rule on Year 2000
contingency planning. The rule requires FDIC-insured depository institutions rated less
"satisfactory" for Year 2000 readiness by their primary federal regulator as of
July 31, 1999, to
maintain key deposit and loan information using a standard format beginning December 24,
1999. The standardized backup programs required by the rule would reduce the time needed
retrieve, translate and transfer information about accounts should a financial institution
help of another data processor or be placed in receivership. The FDIC would use the
information only if an institution experiences a Y2K-related problem.
21, 1999 - The Federal Reserve Board today announced the issuance of an Order of
Assessment of a Civil Money Penalty against Banco Popular de Puerto Rico, San Juan, Puerto
Rico, a state member bank. Banco Popular, without admitting to any allegations,
consented to the issuance of the Order in connection with its alleged violations of the
Board's regulations implementing the National Flood Insurance Act.
June 18, 1999 - FDIC
REPORTS RECORD EARNINGS FOR COMMERCIAL BANKS,
THIRD-BEST EVER FOR SAVINGS INSTITUTIONS IN THE FIRST QUARTER
FDIC-insured commercial banks earned a record $18.0 billion in the first quarter of 1999.
quarter was marked by an absence of major merger-related restructuring expenses at large
banks, which had depressed industry earnings in recent periods. Large bank earnings also
boosted by improvements in international operations and a record quarter for trading
18, 1999 - DEPOSIT INSURANCE COVERAGE - New Edition of "Your Insured Deposit"
The Federal Deposit Insurance Corporation (FDIC) is pleased to announce its new
"Your Insured Deposit." The booklet was revised to reflect the April 1, 1999,
the deposit insurance regulations on joint accounts and "payable-on-death" (POD
18, 1999 - FFEIC RISK MANAGEMENT PLANNING SEMINAR - FFIEC 1999 Risk Management Planning
The Federal Financial Institutions Examination Council (FFIEC) has announced that it will
its 1999 Risk Management Planning Seminar on November 8 and 9 in Washington, D.C.
June 17, 1999 - OTS Looks Beyond
Home Base to Assess CRA Performance of Non-Branch Thrifts
WASHINGTON, D.C., June 17, 1999 Having repeatedly faced the question of how to
evaluate the CRA performance of thrifts that deliver their products by non-branch systems
on a national or regional basis, the Office of Thrift Supervision (OTS) has taken the
approach of looking at their performance throughout the markets where they do credit
business, not just in the main office assessment area.
17, 1999 - FOREIGN ASSETS CONTROL ACT - Specially Designated Nationals, Narcotics
Traffickers and Blocked Persons
On May 26, 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
entries for Sudan and Unita. Certain deletions and modifications to the existing list also
made. On May 28, 1999, OFAC updated its listing of specially designated nationals and
blocked persons to include the names of the five individuals indicted as war criminals by
United Nations International Criminal Tribunal for the former Yugoslavia. On June 8, 1999,
OFAC updated its listing of specially designated narcotics traffickers and also updated
entities previously listed.
17, 1999 - COMMUNITY REINVESTMENT ACT - Revised, New and Proposed Interagency Questions
and Answers Regarding Community Reinvestment
In response to questions from the banking industry, the Federal Financial Institutions
Council (FFIEC) published the attached "Interagency Questions and Answers Regarding
Community Reinvestment" (Q&As) on May 3, 1999, in the Federal Register.
June 17, 1999 - INTERAGENCY
TASK FORCE PUBLISHES CONSUMER BROCHURE ABOUT SHOPPING AND NEGOTIATING FOR THE BEST
The federal Interagency Task Force on Fair Lending has published a brochure for consumers,
"Looking for the Best Mortgage: Shop, Compare, Negotiate." The brochure notes
that shopping around for a home loan or mortgage is similar to shopping for a car --
consumers should obtain information on all costs of the loan and negotiate for the best
June 16, 1999 -
The Federal Reserve Board today announced that it is seeking nominations for seven
appointments to its Consumer Advisory Council.
June 16, 1999 - OCC Expresses
Concern About Any Actions That Put Downward Pressure on Bank Reserves
WASHINGTON -- The Office of the Comptroller of the Currency said today that it is
concerned about any action that might have the effect, even if unintended, of applying
general downward pressures on bank reserves.
June 16, 1999 - OCC RELEASES
CRA EVALUATIONS FOR 58 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 May 15 through June 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.
16, 1999 - BANK REPORTS - Reports of Condition and Income (Call Report) for Second Quarter
The enclosed materials pertain to the Reports of Condition and Income (Call Report) for
June 30, 1999, report date. Please complete your second quarter Call Report and submit the
report electronically as soon as possible. Your completed report must be received by July
1999, in accordance with the filing requirements discussed below. Note that no extensions
time for submitting reports are granted.
June 14, 1999 - OCC Rule
Proposals Would Ease Burdens on Community Banks WASHINGTON -- Rule changes being
proposed today by the Office of the Comptroller of the Currency (OCC) would codify a
number of previously issued interpretations that ease burdens on community banks by
providing flexibility for national banks to satisfy various corporate requirements under
the National Bank Act.
10, 1999 - YEAR 2000 CUSTOMER AWARENESS - Gallup Survey Results
Attached is important Year 2000 customer awareness information from the FDIC, the Office
the Comptroller of the Currency, the Federal Reserve Board, and the Office of Thrift
Supervision. Along with the interagency letter is a report from the Gallup Organization on
recent survey on Y2K and the banking industry.
June 10, 1999 - Thrifts
Urged To Post Privacy Policies As Part Of Transactional Web
WASHINGTON, D.C., June 10, 1999 Any savings association supervised by the Office of
Thrift Supervision (OTS) that is planning to establish a transactional web site on the
Internet should, among other actions, post privacy policies on its web site in a clear
manner customers expect it.
June 9, 1999 - The final rule
on the disclosure of nonpublic OCC information was published in the Federal Register on
June 1, 1999. The final rule was effective on publication.
June 9, 1999 - OCC Proposal
Will Encourage Continuing Public Welfare Investments By National Banks
WASHINGTON, D.C. -- In a move to simplify its procedures and encourage public welfare
investments by national banks, the Office of the Comptroller of the Currency (OCC) will
publish in tomorrow's Federal Register a proposal to amend its regulations governing
national bank investments designed primarily to promote the public welfare, 12 C.F.R. .24,
or "Part 24."
June 8, 1999 - The Homeowners
Protection Act of 1998 (Pub. L. No. 105-216, 112 Stat. 897) becomes effective July 29,
1999. The act requires that lenders or servicers provide certain disclosures and
notifications concerning private mortgage insurance (PMI) on residential mortgage
transactions consummated on or after July 29, 1999. The act also contains disclosure
provisions for existing residential mortgages, i.e., those consummated before July 29,
1999. Finally, it provides for the cancellation and termination of PMI.
June 8, 1999 - COMPTROLLER
HAWKE OUTLINES PROMISING APPROACHES TO INTERNATIONAL CAPITAL STANDARDS
WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. said today that a new
approach is needed to the international capital framework and credited the recent
consultative paper by the Basel Committee as a first step in the right direction. In a
speech to attendees at the International Monetary Conference in Philadelphia, the
Comptroller encouraged bankers to comment on the Committee's recently issued consultative
June 7, 1999 - OCC Agreements
with State Insurance Departments will Benefit Consumers
The Office of the Comptroller of the Currency (OCC) and state insurance regulators today
expanded their efforts to share information concerning customer complaints that may arise
in connection with sales of insurance by banks. The OCC and the insurance departments of
eight states agreed to share information about consumer complaints relating to sales of
insurance products in these eight states by national banking companies. The eight
agreements between the OCC and the individual state insurance departments also call for
the agencies to communicate with each other on matters of common interest, such as
regulatory and policy initiatives.
June 7, 1999 -
Comptroller Urges Industry to End Abusive Practices And Elevate Customer Service Standards
SAN FRANCISCO -- Comptroller of the Currency John D. Hawke, Jr. appealed today to the
banking industry to improve customer service standards and warned that some current
practices are abusive and may invite government scrutiny if not corrected.
7, 1999 - The Federal Reserve Board today announced the issuance of a Cease and Desist
Order against Banco Atlántico, S.A., Barcelona, Spain, and its New York Agency.
The Order was issued jointly with the Acting Superintendent of Banks of the State
of New York.
1999 - FDIC MAKES PUBLIC APRIL 1999 ENFORCEMENT ACTIONS; NO
ADMINISTRATIVE HEARINGS SCHEDULED FOR JUNE
The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of
administrative enforcement actions taken against banks and individuals in April. No
administrative hearings are scheduled for June.
4, 1999 - HOMEOWNERS PROTECTION ACT OF 1998 - Homeowners Protection Act of 1998 to Take
Effect July 29, 1999
The attached Homeowners Protection Act of 1998, which takes effect July 29, 1999, requires
financial institutions to cancel private mortgage insurance (PMI) under certain
Act also requires financial institutions to provide borrowers with a number of disclosures
time of loan origination, yearly while mortgage insurance is in effect, and when the PMI
June 4, 1999 - FDIC BOARD
APPROVES AGENCYS FIRST DIVERSITY STRATEGIC PLAN
The Board of Directors of the FDIC has approved the agencys first Diversity
Strategic Plan. "Our plan is comprehensive, fair and inclusive," said FDIC
Chairman Donna Tanoue. "We want to set a national example by showing how we make the
strengths of a diverse population and a diverse workforce work for the FDIC."
June 4, 1999 - OTS
Releases May National CRA Ratings
WASHINGTON, D.C., June 4, 1999-- The Office of Thrift Supervision (OTS) today released
savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that
became available in May 1999.
June 3, 1999 - BANK
SERVICE COMPANY ACT - Required Notification for Compliance with the Bank Service Company
The Federal Deposit Insurance Corporation (FDIC) would like to remind FDIC-supervised
institutions of the reporting requirements contained in Section 7 of the Bank Service
Act (12 U.S.C. 1867). The Act requires insured financial institutions to notify their
federal banking agency in writing of contracts or relationships with third parties that
certain services to the institution.
3, 1999 - CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES
Federal Reserve Board Revises Consumer Handbook on Adjustable Rate Mortgages
The Board of Governors of the Federal Reserve System has issued a revised Consumer
Handbook on Adjustable Rate Mortgages (CHARM). Regulation Z, which implements the
Truth in Lending Act, requires that the handbook be provided to consumers when they apply
an adjustable rate mortgage loan.
June 3, 1999 - FDIC
PROPOSES NEW DATA RETENTION RULE
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) today proposed
requiring banks and thrift institutions with less-than-satisfactory Year 2000 ratings as
of July 31,
1999, to maintain key deposit and loan information using a standard format at year end.
1999 - FDIC REPORTS 1998 AND FIRST QUARTER 1999 EARNINGS FOR BANK AND THRIFT INSURANCE
The Bank Insurance Fund (BIF) earned $1.3 billion in 1998 and $244 million in the first
of 1999, according to an FDIC management report on the Corporation's unaudited financial
statements. The Savings Association Insurance Fund (SAIF) earned $468 million and $99
million for the same periods.
1999 - FDIC ISSUES MAY 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
became available in May 1999.
June 3, 1999 -
Advance Notice of Proposed Rulemaking
The attached advance notice of proposed rulemaking (ANPR) regarding the OCC's review of
regulations that affect community banks was published in the Federal Register on May 12,
1999. The comment period for the rule expires on July 12, 1999.
June 3, 1999 - OCC Highlights
Basel Proposal for a Capital Framework
WASHINGTON--The Office of the Comptroller of the Currency (OCC) advised national banks
today that the Basel Committee on Banking Supervision has issued a discussion draft of a
new capital adequacy framework for internationally active banks that would replace the
current Capital Accord, issued in 1988. The Basel Committee is made up of representatives
of central banks and
supervisory authorities of the Group of Ten countries and Luxembourg.
June 2, 1999 -
Nations Thrift Industry Earns $2.1 Billion In First Quarter 1999
WASHINGTON, D.C., June 2, 1999 The nations thrift industry earned $2.1
billion in the
first quarter 1999, Director Ellen Seidman of the Office of thrift Supervision (OTS)
today. First quarter earnings were the third best of any quarter, up from $1.4 billion in
the fourth quarter 1998 and $1.9 billion one year ago. The sharp increase in first quarter
earnings over the fourth quarter was primarily due to lower overhead expense, which had
spiked in the fourth quarter due to one-time restructuring charges. Non-interest expense
overhead declined to 2.13 percent of average assets in the first quarter
from 2.53 percent in the fourth quarter and 2.20 percent one year ago. Also contributing
to first quarter profits were lower provisions for losses, reflecting a record low level
of troubled assets.
June 2, 1999 - OTS
Announces CRA Examination Schedule For 3rd Quarter 1999
WASHINGTON, D.C., June 2, 1999 -- The Office of Thrift Supervision (OTS) today announced
the availability of a list of savings associations scheduled for Community Reinvestment
Act (CRA) examinations during the third quarter of 1999.
June 1, 1999 - Major changes or
additions to the FFIEC website for June 1999 - Added the June 1999 versions of the
FFIEC Call Report Forms 031-034.