Bank Regulatory News
May 2001
May 31, 2001 - Joint Agency Advisory on Rate-Sensitive Deposits - On
May 11, 2001, the Federal Reserve, along with the other federal banking
agencies, issued an interagency advisory on brokered and rate-sensitive
deposits to highlight the potential risks associated with excessive
reliance on such deposits. The advisory also provides guidance on prudent
risk identification and management for these types of funding. www.federalreserve.gov/BoardDocs/SRLetters/2001/Sr0114.htm
May 31, 2001 - Standards for Safeguarding Customer Information - The
federal banking agencies jointly issued guidelines establishing standards
for safeguarding customer information (Guidelines), which will become
effective July 1, 2001. www.federalreserve.gov/BoardDocs/SRLetters/2001/Sr0115.htm
May 31, 2001 - The Federal Reserve Board today announced the settlement
of its administrative enforcement proceeding against Incus Co., Ltd. and
Carlos Hank Rhon of Mexico City, Mexico, Incus's registered
owner. www.federalreserve.gov:80/boarddocs/press/Enforcement/2001/20010531/default.htm
May 30, 2001 - 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. http://www.fdic.gov/news/news/press/2001/pr3901.html
May 30, 2001 - NCUA Acting Chairman Dennis Dollar told a group of
Pennsylvania and New Jersey credit union leaders today that a proposed
flexible examination schedule which seeks to extend the exam cycle from 12
to 18 months for certain credit unions with strong CAMEL ratings and make
NCUA examinations more risk-focused will carry “great benefits to both
credit unions and the NCUA while maintaining the highest standards of
safety and soundness.” http://www.ncua.gov/news/press_releases/nr053001.html
May 30, 2001 - The Federal Reserve Board is requesting comment on a
proposed interim policy statement and a package of short- and long-term
proposals pertaining to its Payments System Risk (PSR) policy. In
addition, the Board is rescinding the interaffiliate transfer
policy. www.federalreserve.gov/boarddocs/press/BoardActs/2001/20010530/default.htm
May 29, 2001 - The Federal Reserve Board announced today that it is
seeking nominations for appointments to its Consumer Advisory
Council. www.federalreserve.gov/boarddocs/press/General/2001/200105292/default.htm
May 25, 2001 - Title V of the Gramm-Leach-Bliley Act (GLBA) of 1999
sets forth provisions addressing the obligations of a financial
institution with respect to the privacy of consumers' nonpublic personal
information.
Press Release: http://www.occ.treas.gov/ftp/bulletin/2001-26.txt
OCC Privacy Examination Procedures: http://www.occ.treas.gov/ftp/bulletin/2001-26a.pdf
May 25, 2001 - NCUA Limits on Disclosing Account Numbers http://www.ncua.gov/ref/opinion_letters/01-jointletter0525.html
May 23, 2001 - OTS Announces 12 CRA Ratings - The OTS today announced
savings associations' Community Reinvestment Act (CRA) performance
evaluation ratings that became available in April 2001. http://www.ots.treas.gov/docs/77134.html
May 22, 2001 - Comptroller Hawke Tells Bankers That Regulators Must
Respond In Measured and Predictable Way to Credit Problems - Comptroller
of the Currency John D. Hawke, Jr. said today that the OCC learned from
the experience of the late 1980s and early 1990s how important it is to
maintain a supervisory approach that is both carefully measured and
predictable.
Press release: http://www.occ.treas.gov/ftp/release/2001-50.txt
Speech: http://www.occ.treas.gov/ftp/release/2001-50a.txt
__________
May 17, 2001 - Compliance Examination Procedures for Part 332 -
"Privacy of Consumer Financial Information"
The Federal Deposit Insurance Corporation (FDIC) and the other federal
bank regulatory agencies, acting through the Federal Financial
Institutions Examination Council (FFIEC), have developed and approved the
attached examination procedures to review supervised financial
institutions for compliance with the agencies' regulation on "Privacy
of Consumer Financial Information." http://www.fdic.gov/news/news/financial/2001/fil0146.html
May 17, 2001 - 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. http://www.fdic.gov/news/news/press/2001/pr3801.html
May 16, 2001 - The Federal Reserve Board today requested public comment
on how the Board's regulations may be adapted to online banking and
lending. Comments are due by August 20, 2001. www.federalreserve.gov/boarddocs/press/BoardActs/2001/20010516/default.htm
May 16, 2001 - 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. http://www.occ.treas.gov/ftp/release/2001-48.txt
May 16, 2001 - The number and size of federally insured credit unions
with assets over $50 million grew appreciably during the past year. The
number increased from 1,506 to 1,556 between March 2000 and March 2001
while assets grew from $334 to $372.9 billion. These institutions now
represent 15 percent of federally insured credit unions and nearly 85
percent of credit union assets. http://www.ncua.gov/news/press_releases/pr051601.html
May 16, 2001 - The Federal Reserve Board this month will begin a
statistical study of household finances that will provide policymakers
with important insight into the economic condition of a broad array of
American families. www.federalreserve.gov/boarddocs/press/General/2001/20010516/default.htm
May 15, 2001 - The Federal Open Market Committee at its meeting today
decided to lower its target for the federal funds rate by 50 basis points
to 4 percent. In a related action, the Board of Governors approved a 50
basis point reduction in the discount rate to 3-1/2 percent. www.federalreserve.gov/boarddocs/press/General/2001/20010515/default.htm
May 15, 2001 - Specially Designated Nationals and Blocked Persons - On
April 24, 2001, the Department of the Treasury's Office of Foreign Assets
Control (OFAC) amended its listing of specially designated nationals and
blocked persons to include the names of additional Specially Designated
Narcotics Traffickers. http://www.fdic.gov/news/news/financial/2001/fil0144.html
May 15, 2001 - Delegation of Authority to Set and Declare Dividend
Rates - As discussed more fully, we are revising our conclusions so that a
federal credit union’s board of directors (FCU’s board) may delegate
its authority to set dividend rates, within limits. http://www.ncua.gov/ref/opinion_letters/01-0344.html
May 15, 2001 - The Office of the Comptroller of the Currency (OCC)
today announced 10 new enforcement actions taken against national banks
and individuals currently and formerly affiliated with national banks and
2 terminations of existing enforcement actions. http://www.occ.treas.gov/ftp/release/2001-47.txt
May 14, 2001 - The Office of the Comptroller of the Currency today
issued a revised version of the Large Bank Supervision booklet, updating
the guidance and procedures used in supervising large and complex
mid-sized national banks. Press release http://www.occ.treas.gov/ftp/release/2001-46.txt
Handbook http://www.occ.treas.gov/handbook/lbs.pdf
May 14, 2001 - The Federal Reserve Board today announced the
availability of a new video "Identity Theft: Protect Yourself."
The 15-minute video explains how easily someone can obtain your personal
financial information and unlawfully use that information to obtain credit
or other financial information under your name. www.federalreserve.gov/BoardDocs/Press/general/2001/20010514/default.htm
May 14, 2001 - FRB - The Gramm-Leach-Bliley Act (GLBA) repealed the Glass-Steagall Act and made the
following change to the permissible securities underwriting, dealing, and investment activities of state
member banks. Effective March 13, 2000, the GLBA authorized well-capitalized state member
banks to underwrite, deal in, and invest in municipal revenue bonds, without limitation as to the level
of these activities that may be conducted relative to the bank's capital (capital limitations).
www.federalreserve.gov/BoardDocs/SRLetters/2001/Sr0113.htm
__________
May 11, 2001 - Interim Final Rules Amending Regulations B, E, M, Z, and
DD Regarding Electronic Delivery of Required Disclosures
The Board of Governors of the Federal Reserve System (FRB) published the
attached interim final rules establishing uniform standards for the
electronic delivery of federally mandated disclosures under five consumer
protection regulations: B (Equal Credit Opportunity), E (Electronic Fund
Transfers), M (Consumer Leasing), Z (Truth in Lending), and DD (Truth in
Savings). The rules took effect on March 30, 2001; however, to allow time
for any necessary operational changes, the mandatory compliance date is
October 1, 2001. http://www.fdic.gov/news/news/financial/2001/fil0140.html
May 11, 2001 - OCC will Hold Hearing; Agency Seeks Fines, Restitution
and Prohibition Order from Two Former Bankers
The Office of the Comptroller of the Currency (OCC) today announced that
it will hold a public hearing beginning Monday, May 14, 2001, in the
agency’s administrative proceeding against Gene Ulrich, former senior
vice president and senior loan officer of Six Rivers National Bank,
Eureka, California and against Susan Diehl-McCarthy, former vice president
and loan officer of Six Rivers National Bank. http://www.occ.treas.gov/ftp/release/2001-45.txt
May 11, 2001 - Agencies Remind Bankers of Risks Associated with
Reliance on Brokered and Rate-Sensitive Deposits
The federal bank and thrift regulatory agencies today issued an advisory
on the risks of brokered and other rate-sensitive deposits. The agencies
warn that excessive reliance on these types of funding products without
proper risk management safeguards has the potential to weaken an
institution’s financial condition. FRB www.federalreserve.gov/boarddocs/press/General/2001/20010511/default.htm
FDIC
http://www.fdic.gov/news/news/press/2001/pr3701.html
OCC http://www.occ.treas.gov/ftp/advisory/2001-5.txt
OTS http://www.ots.treas.gov/docs/77133.html
May 10, 2001 - Interagency Guidance on Loans Held for Sale
On March 26, 2001, the Federal Reserve Board, the Office of the
Comptroller of the Currency, the Federal Deposit Insurance Corporation,
the Office of Thrift Supervision, and the National Credit Union
Administration (the Agencies) issued the attached interagency guidance on
the appropriate reporting treatment for loans that an institution intends
to sell. Consistent with generally accepted accounting principles (GAAP),
the guidance directs institutions: www.federalreserve.gov/BoardDocs/SRLetters/2001/Sr0112.htm
May 9, 2001 - The FDIC today issued guidance on measures to prevent identity theft and pretext calling. The guidance
reminds financial institutions how to report such activities to regulators using Suspicious Activity Reports
(SARs), suggests educating consumers on identity theft and pretext calling, and summarizes relevant
federal laws. http://www.fdic.gov/news/news/press/2001/pr3601.html
May 9, 2001 - Guide to Federal Microenterprise Programs
The enclosed publication, Crossing the Bridge to Self-Employment: A
Federal Microenterprise Resource Guide, describes various microenterprise
programs available through the federal government, and how financial
institutions, practitioners and others can access these resources. http://www.fdic.gov/news/news/financial/2001/fil0138.html
May 9, 2001 - Guidance on Identity Theft and Pretext Calling
The Federal Deposit Insurance Corporation (FDIC) is issuing the attached
"Guidance on Identity Theft and Pretext Calling" to inform banks
about developments in these two areas of consumer bank fraud. http://www.fdic.gov/news/news/financial/2001/fil0139.html
May 9, 2001 - FDIC examiners have reported an increase in the
occurrence of risky underwriting practices by banks in both construction
and consumer lending but found that the percentage of banks in the
high-risk categories for general underwriting practices declined slightly,
according to the agency's latest Report on Underwriting Practices, which
covers the six months ending March 31, 2001. http://www.fdic.gov/news/news/press/2001/pr3501.html
May 8, 2001 - The Federal Deposit Insurance Corporation (FDIC) today
announced that the Bank Insurance Fund (BIF) reported comprehensive income
(net income plus current period unrealized gains/losses on
available-for-sale securities) of $451 million for the first quarter,
compared to $325 million for the same period last year. http://www.fdic.gov/news/news/press/2001/pr3401.html
May 8, 2001 - The Federal Financial Institutions Examination Council
(FFIEC) has made A Guide to CRA Data Collection and Reporting available on
its Internet Web site < www.ffiec.gov/cra >. The FFIEC agencies
developed the guide as a resource for financial institutions required to
report Community Reinvestment Act (CRA) data. CRA data reports are due
annually on March 1. http://www.occ.treas.gov/ftp/bulletin/2001-25.txt
May 7, 2001 - The Federal Deposit Insurance Corporation (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 February
2001. http://www.fdic.gov/news/news/press/2001/pr3301.html
May 7, 2001 - Director’s Interest in Financial Counseling Services
Offered by a Third Party.
You have asked if your federal credit union (FCU) may enter into an
arrangement with a financial services firm to offer discounted financial
counseling to members. http://www.ncua.gov/ref/opinion_letters/01-0131.html
___________
May 4, 2001 - The Federal Reserve Board is seeking public comment on a
proposed new Regulation W to comprehensively implement sections 23A and
23B of the Federal Reserve Act. Sections 23A and 23B restrict loans
by a bank to an affiliate, asset purchases by a bank from an affiliate and
other transactions between a bank and its affiliates. www.federalreserve.gov/boarddocs/press/BoardActs/2001/20010504/default.htm
May 4, 2001 - The Office of the Comptroller of the Currency (OCC) has
entered into a consent order with Direct Merchants Credit Card Bank, N.A.
The consent order requires the bank to cease certain practices in the
marketing of the bank’s credit cards and to pay approximately $3.2
million in restitution to 62,000 consumers. http://www.occ.treas.gov/ftp/eas/ea2001-24.pdf
May 4, 2001 - The Federal Reserve Board is seeking public comment on
interim final rules, under sections 23A and 23B of the Federal Reserve
Act, requiring institutions to: 1)adopt policies and procedures to
monitor, manage and control credit exposures arising from derivatives
transactions with affiliates and intraday credit extensions to affiliates;
and 2) subject such transactions to the market terms requirement of
section 23B. www.federalreserve.gov/boarddocs/press/BoardActs/2001/200105042/default.htm
May 4, 2001 - The Federal Reserve Board is publishing a final rule
granting exemptions from and providing interpretations of section 23A of
the Federal Reserve Act. The Board approved the final rule at its meeting
on May 2, 2001. www.federalreserve.gov/boarddocs/press/BoardActs/2001/200105043/default.htm
May 3, 2001 - OCC bulletin transmits a proposed rule on debt
cancellation contracts (DCCs) and debt suspension agreements (DSAs) that
was published in the Federal Register on April 18, 2001.
Press release http://www.occ.treas.gov/ftp/bulletin/2001-24.txt
Bulletin http://www.occ.treas.gov/fr/fedregister/66fr19901.htm
May 3, 2001 - The Office of the Comptroller of the Currency (OCC) today
closed The Malta National Bank, Malta, Ohio, and appointed the Federal
Deposit Insurance Corporation (FDIC) as receiver. The FDIC, as receiver,
entered into an agreement with North Valley Bank, Zanesville, Ohio, to
assume all the deposits of the failed bank.
FDIC http://www.fdic.gov/news/news/press/2001/pr3201.html
OCC http://www.occ.treas.gov/ftp/release/2001-43.txt
May 3, 2001 - 2000 Year End Statistics for Federally Insured Credit
Unions http://www.ncua.gov/ref/Statistics/yearend2000.pdf
May 3, 2001 - Basel Committee Report Outlines Risk Management
Principles for Electronic Banking that sets forth fourteen risk management
principles on electronic banking for financial institutions in a report
issued today.
Press release http://www.occ.treas.gov/ftp/release/2001-42.txt
E-banking paper http://www.occ.treas.gov/idtheft.pdf
May 3, 2001- More than half of the people who make household financial
decisions took federal deposit insurance into account when considering
recent investments, a survey conducted by The Gallup Organization
reveals. http://www.fdic.gov/news/news/press/2001/pr3101.html
May 2, 2001 - The Office of Thrift Supervision reported today that it
issued a prompt corrective action enforcement order March 23 to Life Bank,
San Bernadino, Calif. http://www.ots.treas.gov/docs/77131.html
May 2, 2001 - NCUA Addresses Permitted on Report of Officials. http://www.ncua.gov/ref/opinion_letters/01-0333.html
May 2, 2001 - The Federal Reserve Board today decided to seek public
comment on a proposed new Regulation W comprehensively implementing
sections 23A and 23B of the Federal Reserve Act. The sections restrict
loans by a bank to an affiliate, asset purchases by a bank from an
affiliate and other transactions between a bank and its affiliates. www.federalreserve.gov/boarddocs/press/BoardActs/2001/20010502/default.htm
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