Bank Regulatory News
May 1999

May 28, 1999 - FDIC REPORTS WIDESPREAD GAINS IN REAL ESTATE MARKETS
The nation's real estate markets rebounded in recent months after a lackluster fall and early
winter, according to experts polled in the FDIC's April Survey of Real Estate Trends. The
increasingly positive reports on both residential and commercial markets came from across the
country, with particularly upbeat assessments from observers in the Northeast and the West.

May 28, 1999 - OCC Issues Third Quarter 1999 CRA Examination Schedule
WASHINGTON, D.C. -- The Office of the Comptroller of the Currency (OCC) today released its projected schedule of Community Reinvestment Act (CRA) examinations to be conducted in the third quarter of 1999.

May 28, 1999 - FDIC ISSUES THIRD QUARTER CRA EXAMINATION SCHEDULE
The FDIC has issued the public list of its institutions to be examined under regulations
implementing the Community Reinvestment Act (CRA). The list covers the third quarter of 1999.

May 27, 1999 - OCC ANNOUNCES THIRTEEN NEW ENFORCEMENT ACTIONS
WASHINGTON, DC --The Office of the Comptroller of the Currency (OCC) today announced thirteen new enforcement actions taken against national banks. The actions released today include
one formal agreement, one cease and desist order, three civil money penalties, four removals, and four personal cease and desist orders for restitution.

May 26, 1999 - TEXAS BANKING COMMISSIONER RESIGNS
Today, Catherine A. Ghiglieri announced her resignation as Texas Banking Commissioner, effective July 1, 1999. Ms. Ghiglieri is leaving the Texas Department of Banking to form a full-service consulting firm, Ghiglieri & Company, which will be based in Austin, Texas. Randall S. James, Deputy Banking Commissioner, will become Acting Banking Commissioner until a permanent replacement is selected.

May 26, 1999 - The State Liaison Committee of the Federal Financial Institutions Examination
Council has elected G. Edward Leary as its Chairman. Mr. Leary is the Commissioner of the Department of Financial Institutions for the State of Utah with supervisory responsibility over banks, credit unions, industrial loan corporations, savings & loans, trust companies, depository institution holding companies, money transmitters, loan production offices, independent escrow agents, residential mortgage lenders, brokers and servicers. The Department regulates and licenses over 141 financial institutions with assets above $24 billion and supervises over l,900 mortgage
lenders and brokers.

May 24, 1999 - The Federal Reserve Board today announced its approval of the proposal of BOK Financial Corporation, Tulsa, Oklahoma, to acquire First Bancshares of Muskogee, Inc., its banking subsidiary, First National Bank and Trust Company of Muskogee, and its nonbanking subsidiary, First Muskogee Insurance Corporation, all of Muskogee, Oklahoma.

May 24, 1999 - FDIC ANALYSTS EVALUATE ECONOMIC CONDITIONS, EMERGING RISKS IN BANKING
The economy continues to provide a favorable environment for banks and thrifts, but there are
areas of concern that analysts at the Federal Deposit Insurance Corporation (FDIC) continue to
monitor.

May 21, 1999 - The Federal Reserve Board today requested comment on a proposal to establish a Century Date Change Special Liquidity Facility, a program for lending to depository institutions from November 1, 1999, through April 7, 2000. The facility should enable depository institutions to confidently commit to supplying loans to other financial institutions and businesses through the rollover to the new century.  Comments are requested by July 2, 1999.

May 21, 1999 - FDIC in a joint statement - The federal banking agencies announced today the execution of an Agreement withTransAlliance, L.P., Bellevue, Washington.  The Agreement addresses the Year 2000 readiness of TransAlliance's electronic funds transfer services.

May 19, 1999 - FDIC REPORT NOTES DECREASE IN RISK WITH BANKS’ LOAN UNDERWRITING PRACTICES
FDIC examiners reported fewer instances of risky loan underwriting practices at FDIC-supervised banks during the six months ending March 31, 1999, compared with the previous six-month period ending September 30, 1998. In addition, examiners reported a small proportion of banks with "high" risk in current underwriting practices, loan portfolios and loan administration.

May 19, 1999 - St. Louis Fed Economist: Protectionism Reduced U.S. Exports by 26
Percent and Imports by 15 percent
ST. LOUIS, Mo. — U.S. exports were more than 26 percent lower in 1996 than they would have been because of other countries' protectionist policies and, conversely, U.S. protectionism during the same period decreased imports from non-NAFTA countries by more than 15 percent, said an economist at the Federal Reserve Bank of St. Louis.

May 18, 1999 - The Federal Reserve Board today requested comment on the benefits and drawbacks of modifying the Federal Reserve Banks' deposit deadlines and pricing practices for ACH transactions they exchange with private-sector ACH operators. These modifications may have implications for competition in the provision of ACH services, for the efficiency of the ACH system, and for long-term ACH volume growth.  Comments are requested by August 6, 1999.

May 17, 1999 - OCC RELEASES CRA EVALUATIONS FOR 48 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 April 15 through May 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.

May 12, 1999 - Comptroller Says Congress and Supervisory Agencies Can Do More to Reduce Regulatory Burden
WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. told a House subcommittee today that while the steps that Congress and supervisory agencies have taken to reduce the regulatory burden on the banking industry have made a difference, "there is still an opportunity to do more."

May 12, 1999 - CRA Ratings and Evaluations now Available on Web Site
WASHINGTON, D.C., May 12, 1999 -- The Office of Thrift Supervision (OTS) today announced the addition of a new Community Reinvestment Act (CRA) page on the OTS Web site that provides on-line access to savings association CRA ratings and recent CRA public evaluations.

May 11, 1999 - OCC Seeks Ways To Reduce Regulatory Burden For Community-sized National Banks
WASHINGTON -- The Office of the Comptroller of the Currency (OCC) announced today that it is seeking public comment on ways to reduce unnecessary regulatory burdens on community banks under its supervision.

May 11, 1999 - FDIC PUBLISHES SEMIANNUAL AGENDA OF REGULATIONS
The Federal Deposit Insurance Corporation (FDIC) has published its semiannual agenda of
regulations in the Federal Register to inform the public of the Corporation’s regulatory actions
and encourage participation in the rulemaking process.

May 11, 1999 - COMMUNITY REINVESTMENT ACT - Rescission of Community Reinvestment Act Policy Statement
The FDIC Board of Directors has rescinded the 1991 Community Reinvestment Act (CRA)
Policy Statement on Analyses of Geographic Distribution of Lending. The rescission, which took
effect on April 5, 1999, is part of the Corporation’s systematic review of its regulations and
written policies under the Riegle Community Development and Regulatory Improvement Act of
1994.

May 10, 1999 - MARKET RISK - Final Rule Amending Risk-Based Capital Requirements for Market Risk (Part 325 of the FDIC’s Rules and Regulations)
The Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the
Currency, and the Federal Reserve Board have amended their respective risk-based capital
requirements to reduce the regulatory burden for banks with significant trading activities. The
final rule will take effect on July 1, 1999.

May 10, 1999 - OCC advisory is being sent to alert you to the recent release of FFIEC guidance, "Additional Questions and Answers Concerning Year 2000 Business Resumption Contingency Planning." The guidance clarifies FFIEC expectations for the completion of the validation phase of business resumption contingency planning by June 30, 1999, documentation requirements, and the role of "event planning" in the development of business resumption contingency plans.

May 10, 1999 - OCC advisory is being sent to alert you to the recent release of the FFIEC's Year 2000 checklist for customers. The checklist was developed to help you communicate with your customers about the Year 2000. The checklist identifies steps that financial institution customers may want to take in anticipation of the date change. You may want to make the checklist available to your customers as part of your efforts to keep them informed about your Year 2000 activities.

May 10, 1999 - OTS Releases April National CRA Ratings
WASHINGTON, D.C., May 12, 1999-- The Office of Thrift Supervision (OTS) today released
savings associations' Community Reinvestment Act (CRA) performance evaluation ratings
that became available in April 1999.

May 7, 1999 - YEAR 2000 CONTINGENCY PLANNING - Clarification of the FDIC’s Year 2000 Contingency Planning Policy
The Federal Financial Institutions Examination Council (FFIEC) has issued the attached May 6,
1999, interagency statement clarifying expectations on testing Year 2000 business resumption
contingency plans, overall contingency planning documentation requirements, and "event
planning."

May 6, 1999 - OCC Issues Guidance on a National Bank Acting as a Certification Authority for Digital Signatures
WASHINGTON, D.C. -- The Office of the Comptroller of the Currency (OCC) issued guidance today to national banks acting as certification authorities. A certification authority functions as an on-line notary, a trusted third party that confirms the identities of parties sending electronic payments or other communications.

May 5, 1999 - Comptroller Criticizes Subprime Lenders Who Fail To Report Borrower Payment Histories
NEW YORK, N.Y. -- Comptroller of the Currency John D. Hawke Jr., in a speech today to Neighborhood Housing Services of New York, expressed concern that a growing number of subprime lenders are not reporting borrower payment histories to credit bureaus,
because good customers that pay subprime rates are too valuable to lose to their competitors. "The failure to report is unfair to customers, unfair to competitors who play by the rules, and
ultimately inconsistent with the values of our national economy," said Comptroller Hawke.

May 4, 1999 - A Y2K CHECKLIST FOR CUSTOMERS - Interagency Y2K Checklist for Customers
The FDIC, the Federal Reserve Board, the Office of the Comptroller of the Currency, the
Office of Thrift Supervision, and the National Credit Union Administration have produced the
attached Y2K Checklist for Customers.

May 4, 1999 - OCC Guidance Describes Effective Web Privacy Practices
WASHINGTON -- The OCC today provided national banks with examples of effective practices for developing privacy policies and communicating them to customers who use their Internet sites.

May 4, 1999 - Comptroller Urges Banks to Improve Risk Management Practices
ORLANDO -- Comptroller of the Currency John D. Hawke, Jr. said today that the banking industry needs better risk management practices to deal with an environment that is more competitive and more challenging than at any time in the last 40 years.

May 3- 1999 - FDIC ISSUES APRIL 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 April 1999.

May 3, 1999 - OCC Issues Leveraged Lending Advisory
WASHINGTON -- The Office of the Comptroller of the Currency today warned banks about the elevated risks associated with leveraged lending activities, and established risk management expectations for national banks engaging in leveraged lending.