Bank Regulatory News
March 2000

March 31, 2000 - Lessons Learned from the Year 2000 Project
The Federal Financial Institutions Examination Council (FFIEC) has issued a statement entitled "Lessons Learned from the Year 2000 Project." The statement is intended to share those lessons with the industry and ensure that they have lasting value. The FFIEC encourages management to conduct its own review of lessons learned from the Year 2000 effort and incorporate them, where appropriate, into future risk management practices.

March 31, 2000 - Staff of the Federal Reserve System undertook a staff study, Improving Public Disclosure in Banking, to consider initiatives that promote better disclosure in banking. The purpose of the study is to present a set of initiatives that would reinforce the current process shaping disclosure while avoiding additional regulatory requirements.

March 30, 2000 - Under the federal Consumer Leasing Act, you, the consumer, have a right to information about the costs and terms of a vehicle lease. This information will help you compare lease offers and negotiate a lease that best fits your needs, budget, and driving patterns.

March 30, 2000 - The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in February. No administrative hearings are scheduled for April.

March 30, 2000 - The attached final rule was published in the Federal Register on March 10, 2000. The final rule became effective on March 11, 2000.  The final rule adds a new regulation (12 CFR 5.39) to implement the financial subsidiary provisions of the Gramm Leach Bliley Act (GLBA), revises the OCC's existing operating subsidiary rule at 12 CFR 5.34, revises the OCC's rule at 12 CFR 5.36 to provide a notice process for national banks making non-controlling investments, and makes technical changes to several additional sections of 12 CFR Part 5.  Attachment

March 29, 2000 - OCC RELEASES CRA EVALUATIONS FOR 42 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 February 15 through March 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.

March 29, 2000 - The attached proposed rule on assessment of fees for national banks and District of Columbia banks was published in the Federal Register on March 21, 2000. Comments are due April 20, 2000.  Attachment

March 29, 2000 - Chief executive officers of insured financial institutions have been invited to meet with Donna Tanoue, Chairman of the Federal Deposit Insurance Corporation (FDIC), to discuss deposit insurance reform, regulation and supervision issues, and economic developments. The three meetings will be held May 31-June 1 in Minneapolis, June 7-8 in Dallas, and June 28-29 in Kansas City.

March 29, 2000 - OTS Approves De Novo Charter for Kansas City Life Insurance
WASHINGTON, D.C., March 29, 2000 -- The Office of Thrift Supervision (OTS) has granted a federal thrift charter to Kansas City Life Insurance Company (KCLIC). The thrift, Generations Bank, will operate in Kansas City, Mo.

March 27, 2000 - OTS Lifts Regulatory Burden for Thrifts Engaging in Repurchase Agreements
WASHINGTON, D.C., March 27, 2000 -- The Office of Thrift Supervision (OTS) has announced it will use an expedited rulemaking procedure to eliminate a regulatory burden on thrifts that engage in repurchase agreements.

March 24, 2000 - The Federal Reserve Board today announced revisions to its Regulation Z (Truth in Lending) official staff commentary, which applies and interprets the requirements of the regulation.  The commentary revisions address cash advances commonly called "payday loans."

March 24, 2000 - Interim Final Rule Governing Activities of Insured State Banks (Part 362 of FDIC's Rules and Regulations)
The Federal Deposit Insurance Corporation (FDIC) Board of Directors has revised the agency's regulation governing the activities of insured state banks-Part 362 of the FDIC's rules and regulations. The revisions reflect statutory changes made pursuant to the new financial modernization law, the Gramm-Leach-Bliley Act. The interim final rule, which is attached, took effect March 11, 2000. Comments on the rule are due by May 22, 2000.

March 23, 2000 - OCC ANNOUNCES 21 NEW ENFORCEMENT ACTIONS
WASHINGTON, DC --The Office of the Comptroller of the Currency (OCC) today announced 21 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks.

March 23, 2000 - The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency today issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with Section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (Interstate Act). These ratios update data released on September 3, 1999.  FDIC

March 23, 2000 - The Federal Reserve Board announced that the elections of 27 bank holding companies and foreign banking organizations to become or be treated as financial holding companies are effective today.

March 23, 2000 - OTS Releases February Enforcement Statistics
WASHINGTON, D.C., March 23, 2000 – The Office of Thrift Supervision (OTS) reported today it completed one enforcement action in February 2000.

March 22, 2000 - The Office of the Comptroller of the Currency (OCC), after consultation with the Federal Election Commission (FEC), prepared this issuance to describe and to emphasize the prohibitions on political contributions or expenditures by national banks pursuant to the Federal Election Campaign Act of 1971, as amended, 2 USC 441b (the Act). This bulletin replaces Banking Circular 137 (February 19, 1980).

March 22, 2000 - The Federal Reserve Board today announced the execution of a Written Agreement by and between the Security Dollar Bank, Niles, Ohio, and the Federal Reserve Bank of Cleveland.

March 21, 2000 - The Federal Open Market Committee voted today to raise its target for the federal funds rate by 25 basis points to 6 percent. In a related action, the Board of Governors approved a 25 basis point increase in the discount rate to 5-1/2 percent.

March 21, 2000 - FFIEC Urges Financial Institutions Not to Forget Lessons Learned from Year 2000 Project
Bank, thrift, and credit union regulators issued today a document discussing lessons learned from the preparation for the Year 2000 date change, and urged financial institutions to incorporate the knowledge gained from that experience into future project and technology risk management.

March 21, 2000 - Comptroller Hawke Urges Increased Action, Education To Combat Predatory Lending
WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. said today that while regulators should use all available resources against predatory lenders, it is equally important that supervisory agencies, community groups and responsible lenders attack the problem at its roots.  Speech

March 21, 2000 - The Federal Deposit Insurance Corporation (FDIC) this Thursday will broadcast a public forum on privacy of consumer financial information in an electronic age in real-time via the Internet. The event, hosted by the FDIC, will be held on March 23, beginning at 8:30 a.m. Eastern Time. The Clinton Administration's point person on privacy, Peter Swire of the Office of Management and Budget, will discuss the future of privacy law.

March 20, 2000 - Rapidly growing commercial loan portfolios and weakening indicators of commercial credit quality raise concerns about the future performance of commercial and industrial (C&I) loan portfolios at financial institutions insured by the Federal Deposit Insurance Corporation (FDIC), according to a report released today by the FDIC.

March 20, 2000 - OCC's New Litigation Handbook Focuses on Risks
WASHINGTON -- The Office of the Comptroller of the Currency's (OCC) new Litigation and Other Legal Matters handbook describes litigation and other legal risks faced by banks, provides in-depth discussion of audit and insurance coverage, and specifies how examiners should evaluate a bank's litigation risk management.

March 20, 2000 - OCC Concludes Pennsylvania Law Would Not Apply to National Banks
Washington, D.C. -- The Office of the Comptroller of the Currency (OCC) has published an opinion concluding that a Pennsylvania statute regulating auctioneers would not apply to a national bank that markets and sells certificates of deposit over the Internet. The Pennsylvania law requires that all auctioneers be licensed and subject to examination and inspection by the state.

March 17, 2000 - The Federal Reserve Board today announced the issuance of a consent Order against Sunshine Financial and Frederick K. Wall, institution-affiliated parties of the First Western Bank, Cooper City, Florida, a state member bank.

March 17, 2000 - The Federal Reserve Board today announced the issuance of an Order of Prohibition against Vinay B. Malhotra, a former vice president and officer of The Chicago Branch of The Bank of Tokyo-Mitsubishi, Ltd., Tokyo, Japan.

March 17, 2000 - The Federal Reserve Board today announced the issuance of a consent Order against the R&T Foundation and James R. Sellers, institution-affiliated parties of the First Western Bank, Cooper City, Florida, a state member bank.

March 17, 2000 - Federal Reserve And Treasury Department Announce On Merchant Banking Activities
The Federal Reserve Board and the Secretary of the Treasury jointly announced their approval on Friday of an interim rule governing the merchant banking activities of financial holding companies.

March, 16, 2000 -The NCUA Board today decided and announced the following personnel changes.  

March 16, 2000 - The FDIC today released preliminary data showing that commercial banks continued to demonstrate earnings strength in the fourth quarter of 1999, posting their third-best quarterly earnings ever ($17.8 billion) and raising full-year earnings to a record level ($71.7 billion) for the eighth consecutive year.

March 16, 2000 - The NCUA Board, today by unanimous vote, issued an advance notice of proposed rulemaking asking for comments on a proposal developed by Board Member Dollar that would permit well-capitalized credit unions with consistently strong CAMEL ratings to be exempt, in whole or part, from certain NCUA regulations not specifically required by statute or tied to credit union safety and soundness.

March 15, 2000- OCC LAUNCHES INTERNET BANKING WEBSITE
WASHINGTON, D.C. -- The Office of the Comptroller of the Currency (OCC) today added an Internet banking section to its Web site. The move is meant to accommodate increasing interest among bankers and others in OCC initiatives and actions on Internet banking.

March 15, 2000 - The Federal Reserve Board today announced amendments to its interim rule regarding procedures for bank holding companies and foreign banks to elect to be treated as financial holding companies. The interim rule was issued on January 19, 2000. The amendments announced today are effective immediately.

March 15, 2000 - Reports of Condition and Income (Call Report) for First Quarter 2000
The enclosed materials pertain to the Reports of Condition and Income (Call Report) for the March 31, 2000, report date. Please complete your first quarter Call Report and submit the report electronically as soon as possible. Your completed report must be received by April 30, 2000, in accordance with the filing requirements discussed below. No extensions of time for submitting reports are granted.

March 14, 2000 - FRB CRA Quarterly Examination Schedule Second Quarter 2000

March 14, 2000 - Federal Reserve and Treasury Department Announce Interim Rule on Alternative to Rated Debt Requirement For Financial Subsidiaries
The Federal Reserve Board and the Secretary of the Treasury today announced their approval of an interim rule, effective March 14, 2000, establishing alternative criteria for debt ratings that certain large banks may satisfy in order to establish a financial subsidiary under the Financial Modernization Act.

March 13, 2000 - OCC Reports that 4th Quarter 1999 Bank Derivatives Volume Drops; Trading Revenue Increases
WASHINGTON -- The Office of the Comptroller of the Currency (OCC) today reported that derivatives revenue at U.S. commercial banks rose $335 million to $2.5 billion during the fourth quarter of 999. The rise in trading revenues resulted primarily from increases in commodity and equity trading and in spite of modest revenue decreases in the interest rate and foreign exchange area where trading volumes are much larger.  Report

March 13, 2000 - Deposit Insurance Seminars Scheduled Nationwide
The Federal Deposit Insurance Corporation (FDIC) and FDIC-insured banks and savings associations share responsibility for promoting public confidence in our nation's banking system. For over 66 years, the FDIC has worked to ensure your customers can trust that their deposits are protected up to the insurance limit. As the first source of information about FDIC insurance, you have a duty to ensure that your employees who advise depositors understand the insurance rules well enough that they can accurately explain the requirements.

March 13, 2000 - OTS Releases February National CRA Ratings
The Office of Thrift Supervision (OTS) today issued savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in February 2000.

March 13, 2000 - Federated, Parent of Bloomingdale's and Macy's, Granted Thrift Charter
Federated Department Stores, Inc., received approval Friday from the Office of Thrift Supervision (OTS) to convert its national credit card bank to a federal thrift institution that will be named FDS Bank. The new thrift will operate out of its existing office in Mason, Ohio, a suburb of Cincinnati where Federated has its headquarters.

March 13, 2000 - The Federal Reserve Board today announced its approval of the notice of Wells Fargo & Company, San Francisco, California, to acquire Ragen MacKenzie Group Incorporated, Seattle, Washington, and thereby engage in underwriting and dealing, to a limited extent, in all types of debt and equity securities and certain other nonbanking activities.

March 13, 2000 - The Federal Reserve Board today announced that the elections to become or be treated as financial holding companies of 117 bank holding companies and foreign banking organizations are effective as of today. The list of these companies is attached.

March 13, 2000 - The Federal Reserve Board announced today that it has terminated the Temporary Orders to Cease and Desist issued against Banco Nacional de Mexico, Mexico City, Mexico; Banco Internacional, S.A., Mexico City, Mexico; and Banco Santander, Madrid, Spain.

March 10, 2000 - The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) has approved the assumption of all the deposits (except for five accounts pledged as capital) of Mutual Federal Savings Bank of Atlanta (Mutual Federal), Atlanta, Georgia, by Citizens Trust Bank, Atlanta, Georgia, a subsidiary of Citizens Bancshares Corporation, Atlanta, Georgia. Citizens Trust Bank will assume $30.0 million in about 6,023 deposit accounts. Mutual Federal depositors, therefore, will automatically become depositors of Citizens Trust Bank. Mutual Federal was closed today by the Office of Thrift Supervision, and the FDIC was named receiver.

March 10, 2000 - Proposed Revisions to the Risk-Based Capital Treatment of Recourse Arrangements, Direct Credit Substitutes, and Asset Securitizations  
The Federal Deposit Insurance Corporation (FDIC) Board of Directors is seeking comment on the attached proposal to amend the risk-based capital standards. The proposal would revise the treatment of recourse arrangements, direct credit substitutes, and asset securitization transactions. The FDIC is issuing the proposed rule jointly with the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The agencies will accept comments on the proposal through June 7, 2000.  OCC Press release Attachment

March 10, 2000 - The Federal Reserve Board today approved an interim rule, effective March 11, 2000, listing financial activities permissible for financial holding companies under the Gramm- Leach-Bliley Act.

March 10, 2000 - The Federal Reserve Board today announced the approval of an interim rule permitting qualifying state member banks to establish financial subsidiaries and thereby engage in activities that have been determined to be financial in nature or incidental to financial activities. The interim rule establishes a streamlined notice procedure for state member banks that wish to acquire control of or an interest in a financial subsidiary. The Board's rule parallels that adopted by the Comptroller of the Currency for financial subsidiaries of national banks.

March 10, 2000 - The Federal Reserve Board today approved an interim rule that would apply to financial holding companies authorized under the Gramm-Leach-Bliley Act that have securities affiliates, 2 of 8 operating standards that currently apply to bank holding companies that control so-called section 20 affiliates. These two prudential provisions (1) require that intra-day extensions of credit to a securities firm from an affiliated bank or thrift or U.S. branch or agency of a foreign bank be on market terms consistent with section 23B of the Federal Reserve Act, and (2) apply the limitations of sections 23A and 23B of the Federal Reserve Act to certain covered transactions between a U.S. branch or agency of a foreign bank and a U.S. securities affiliate.

March 9, 2000 - OCC Approves Streamlined Approach for National Banks To Engage in New Activities through Financial Subsidiaries
WASHINGTON, D.C. -- The Office of the Comptroller of the Currency will publish in tomorrow's Federal Register the final rule implementing the financial subsidiary provisions of the Gramm-Leach-Bliley Act (GLBA).

March 9, 2000 - The National Credit Union Administration Board announced today that it has issued a prohibition order against a former official of Hughes Aircraft Employees Federal Credit Union.

March 9, 2000 - The Federal Reserve Board today announced the execution of a Written Agreement by and between Banco Popular de Puerto Rico, Hato Rey, Puerto Rico, and the Federal Reserve Bank of New York.

March 8, 2000 - U.S. Thrift Industry Earns Record $8.2 Billion in 1999
WASHINGTON, D.C., March 8, 2000 – For the third consecutive year, the nation’s thrift industry had record earnings, reaching $8.2 billion in 1999 and surpassing 1998 earnings of $7.6 billion by 9 percent, Director Ellen Seidman of the Office of Thrift Supervision (OTS) reported today. Fourth quarter earnings of $1.98 billion were down slightly from third quarter earnings of $2.09 billion.

March 7, 2000 - The FDIC is undertaking a comprehensive review of the nation's deposit insurance system, Chairman Donna Tanoue announced in a speech today. She also said that the FDIC will hold meetings to solicit feedback from industry officials, consumer groups and other interested parties, starting with a roundtable discussion of deposit insurance reform in April.

March 7, 2000 - OCC Reemphasizes Importance of Internal Controls and Audit at National Banks
SAN ANTONIO --Comptroller of the Currency John D. Hawke, Jr. told bankers today that too many institutions are allowing internal controls to slip and said his agency is re-concentrating its supervisory focus on internal controls and audits" as a result.  Speech

March 7, 2000 - FFIEC's Risk Management Planning Seminar for 2000
The Federal Financial Institutions Examination Council (FFIEC) has announced that it will host its 2000 Risk Management Planning Seminar on June 1 and 2 in Chicago, IL. 

March 6, 2000 - The FDIC today issued its monthly list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA). The list covers evaluation ratings that the FDIC assigned to institutions in December 1999.

March 6, 2000 -- The National Credit Union Administration (NCUA) has issued a Letter of Understanding and Agreement (LUA) to the Toledo Urban Federal Credit Union, Toledo, Ohio.

March 3, 2000 - The Federal Reserve Board today announced the issuance of a Prompt Corrective Action Directive against the New Century Bank, Southfield, Michigan.

March 03, 2000 - The Federal Financial Institutions Examination Council (FFIEC) announces the location and date for its 2000 Risk Management Planning Seminar.

March 2, 2000 - OCC ANNOUNCES 17 NEW ENFORCEMENT ACTIONS
WASHINGTON, DC --The Office of the Comptroller of the Currency (OCC) today announced 17 new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks.

March 2, 2000 - The attached advance notice of proposed rulemaking (ANPR) seeks public comment to assist the Office of the Comptroller of the Currency (OCC) in responding to the rapid growth of electronic commerce and the significant business opportunities that these technological developments are affording national banks consistent with safety and soundness. The ANPR was published in the Federal Register on February 2, 2000. The comment period for the ANPR closes on April 3, 2000.

March 2, 2000 - The OCC attached proposed rule on privacy of financial information was published in the Federal Register on February 22, 2000. Comments are due March 31, 2000.

March 1, 2000 - OTS Announces CRA Examination Schedule For 2nd Quarter 2000
WASHINGTON, D.C., Feb. 29, 2000-- The Office of Thrift Supervision (OTS) today announced the release of a list of savings associations scheduled for Community Reinvestment Act (CRA) examinations during the second quarter of 2000.

March 1, 2000 - Consumer advocates, government policy makers, Congressional staff, bankers and policy analysts will explore the privacy of consumer financial information in an electronic age at an interagency public forum hosted by the Federal Deposit Insurance Corporation (FDIC) on March 23, 2000.

March 1, 2000 - A listing of current OCC Bulletins, Banking Bulletins, Banking Circulars, Examining Bulletins, Examining Circulars, and Trust Banking Circulars as of March 1, 2000.

March 1, 2000 - OCC RELEASES CRA EVALUATIONS FOR 44 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 January 15 through February 14.