Bank Regulatory News
October 29, 1999
- Identity Theft and Assumption Deterrence Act of 1998
The Federal Deposit Insurance Corporation (FDIC) has prepared guidance for bankers who
suspect their customers may have been victims of identity theft. This crime was addressed
with the October 30, 1998, enactment of the attached "Identity Theft and Assumption
Deterrence Act of 1998" (Act), which in part amends 18 U.S.C. §1028 ("Fraud and
related activity in connection with identification documents"). The following
summarizes the provisions of the legislation and recommends certain actions that banks
should take in responding to reports of identity theft.
28, 1999 - The Federal Reserve Board today announced adoption of a final rule amending
Regulation CC, Availability of Funds and Collection of Checks, to clarify the extent to
which depository institutions and others may vary the terms of the regulation by agreement
for the purpose of instituting electronic return systems. The rule is effective
December 15, 1999.
October 27, 1999 - OCC
RELEASES CRA EVALUATIONS FOR 57 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 September 15 through October 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.
October 27, 1999 - Aetna Granted
Federal Thrift Charter by OTS
Aetna Inc., a Hartford, Connecticut-based provider of financial and insurance services,
has received permission from the Office of Thrift Supervision (OTS) to organize Aetna
Trust Company, a federal savings bank, to offer trust services. Aetna becomes a unitary
thrift holding company.
October 26, 1999
- Compliance with Federal Flood Insurance Requirements in Light of Recent Natural
With the recent spate of hurricanes causing severe flooding across the East Coast of the
United States, and the potential for flooding from future natural disasters, the Federal
Deposit Insurance Corporation (FDIC) is encouraging the institutions it supervises to take
special care to meet all the requirements of the flood insurance regulations (12 CFR Part
October 26, 1999
- FDIC Announces the Availability of the Year 2000 Customer Brochure in Two Versions of
Chinese and in Korean and the Year 2000 Customer "Statement Stuffer" in Spanish
October 26, 1999 - Fidelity Granted
Federal Thrift Charter by OTS
FMR (Fidelity) Corp., the Boston-based mutual fund giant, has received a federal thrift
charter from the Office of Thrift Supervision (OTS) to organize a savings bank to offer
personal trust services to customers. The new institution, Fidelity Personal Trust
Company, will be based in Boston. FMR becomes a thrift holding company.
October 26, 1999
- FFIEC Year 2000 Event Planning Supervisory Strategy of Service Providers and Software
The Federal Financial Institutions Examination Council (FFIEC) has issued the attached letter to
service providers and software vendors to notify them of the member agencies' intentions
to intensify the monitoring of operating performance during the fourth quarter of 1999 and
the rollover period.
October 25, 1999
- Interagency Policy Statement on External Auditing Programs of Banks and Savings
Upon the recommendation of the Federal Financial Institutions Examination Council, the
FDIC Board of Directors has adopted the attached "Interagency Policy
Statement on External Auditing Programs of Banks and Savings Associations." It
replaces the FDIC's "Statement of Policy Regarding Independent External Auditing
Programs of State Nonmember Banks" and is effective for fiscal years beginning on or
after January 1, 2000. The other banking agencies have also adopted the interagency policy
October 21, 1999 - OTS Issues
New Guidance on Directors' Responsibilities
Directors of thrift institutions "must not abdicate responsibility for deciding
policy" and "may never delegate" their responsibilities. Directors also
"must exercise independent judgment in evaluating management's actions and
competence." These unequivocal statements are part of the introduction to the
"Directors' Responsibilities Guide,"
a new document unveiled today by the Office of Thrift Supervision (OTS) to 300 directors
from 75 OTS-regulated thrifts meeting in Dallas to discuss the oversight role of directors
of thrift institutions.
October 21, 1999 - OCC
ANNOUNCES FIVE NEW ENFORCEMENT ACTIONS - The Office of the Comptroller of the Currency
(OCC) today announced five new enforcement actions taken against national banks and
individuals currently and formerly affiliated with national banks.
21, 1999 - The Federal Reserve Board, along with the Office of the Comptroller of the
Currency and the Federal Deposit Insurance Corporation, today issued a final rule on a
proposal to expand the examination frequency cycle for certain U.S. branches and agencies
of foreign banks. The rule is effective October 22, 1999. This rule finalizes
an interim rule, effective August 28, 1998, that made U.S. branches and agencies of
foreign banks with total assets of $250 million or less eligible for an 18-month
examination cycle if they met the qualifying criteria set out in the rule.
October 21, 1999 -
The National Credit Union Administration is asking the credit union community to provide
feedback by December 3, 1999, on the strategic plan that NCUA will use as its primary
guide in responding to the challenges and opportunities that the agency and credit unions
will face in the first five years of the 21st century.
October 18, 1999 -
The National Credit Union Administration (NCUA) has terminated the Letters of
Understanding and Agreement (LUA) issued to Hudson River Teachers Federal Credit Union,
Peeksill, New York and N.Y. Methodist Federal Credit Union, White Plains, New York.
October 15, 1999 - The
Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal
Deposit Insurance Corporation recently issued updated 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, which update data released on August 13, 1998, are attached.
October 15, 1999
- The FDIC Board of Directors is seeking comment on the attached "Notice of Proposed
Rulemaking Regarding the Treatment of Financial Assets Transferred by an Insured
Depository Institution in Connection With a Securitization or Participation Following
Appointment of the FDIC as Conservator or Receiver." The FDIC will accept comments on
the proposal through November 8, 1999.
October 15, 1999 - The
attached interim guidelines establishing Year 2000 (Y2K) standards for safety and
soundness for national bank transfer agents and broker-dealers ("Supplemental Guidelines")
became effective on September 30, 1999. Comments are due by November 29, 1999.
October 14, 1999 - OCC
Issues Examination Handbook On Internet Banking
The Office of the Comptroller of the Currency (OCC) issued a new handbook today outlining
procedures for examining Internet banking activities in national banks. The OCC estimates
that about 500 national banks have transactional web sites that would be subject to
today's examination procedures, as would other national banks with non-transactional web
October 14, 1999 - The final
rule on management official interlocks was published in the Federal Register on September
24, 1999. The rule is effective January 1, 2000.
13, 1999 - The Federal Reserve Board today announced the availability of a new
Internet site, 1stSource Community Development Resource Guide, designed to help people
find resources for affordable housing, business development, community infrastructure, and
agribusiness. The new site, developed by the Federal Reserve Bank of Kansas City, can be
accessed at www.1stsource.kc.frb.org.
October 12, 1999
- Federal financial institution regulators today advised banks and thrifts about the risks
associated with high loan-to-value (LTV) residential real estate loans. The guidance
issued today reminds insured institutions that the Interagency Guidelines for Real Estate
Lending Policies adopted in 1992 apply to these transactions.
October 7, 1999 - On
September 28, 1999, the Federal Financial Institutions Examination Council (FFIEC) adopted
the attached "Interagency Policy Statement on External Auditing Programs of Banks and
Savings Associations." This policy statement is directed to banks and savings
associations that are exempt from 12 CFR 363 (i.e., institutions with less than $500
million in total assets) or are not otherwise subject to audit requirements by order,
agreement, statute, or agency regulations. It provides unified interagency guidance
regarding independent external auditing programs of community banks and savings
associations. The policy complements the interagency policy statement on internal auditing
1999 - The Federal Reserve Board today announced a decrease from $46.5 million to
$44.3 million in the net transaction accounts to which a 3 percent reserve requirement
will apply in 2000. This adjustment is known as the low reserve tranche adjustment.
The Board also changed from $4.9 million to $5.0 million the amount of reservable
liabilities of each depository institution that is subject to a reserve requirement of
October 6, 1999 -
The National Credit Union Administration Board today said it will return $88.4 million to
federally insured credit unions. This is the 5th consecutive cash dividend returned to
credit unions from the National Credit Union Share Insurance Fund (NCUSIF).
October 6, 1999
- NCUA Board Member Dennis Dollar announced today that he will be proposing a regulatory
relief measure called "Reg-Flex" in an attempt to encourage greater credit union
innovation in member service initiatives and to help improve the ability of credit unions
to compete in the financial marketplace.
October 5, 1999 -
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 July 1999.
October 5, 1999 - OCC's
Williams Warns of Credit Risk In the Banking System; Calls for Bankers to Scrutinize Loan
Portfolios More Closely
WASHINGTON -- The results of the 1999 Shared National Credit Review -- a survey by federal
bank regulators of all commercial loans that are shared among three or more banks and
exceed $20 million -- show "a marked increased in classified and special mention
credits," according to Julie L. Williams, first senior deputy comptroller and chief
counsel of the Office of the Comptroller of the Currency (OCC).
October 5, 1999 - OCC
ANNOUNCES 13 NEW ENFORCEMENT ACTIONS
WASHINGTON, DC --The Office of the Comptroller of the Currency (OCC) today announced 13
new enforcement actions taken against individuals currently and formerly affiliated with
national banks and national banks.
October 5, 1999 - The Office of
Thrift Supervision (OTS) reported today that it completed nine enforcement action in
October 5, 1999 - The Office of
Thrift Supervision (OTS) today released savings associations' Community Reinvestment Act
(CRA) performance evaluation ratings that became available in September1999.
1, 1999 - The Federal Reserve Board today announced the issuance of a consent Order
against William Barber, an institution-affiliated party of the First Western Bank, Cooper
City, Florida, a state member bank. The individual, without admitting to any
allegations, consented to the Order to resolve allegations that he violated the Change in
Bank Control Act in connection with his acquisition of beneficial ownership of the shares
of the bank.
1, 1999 - Statement of Roger W. Ferguson, Jr. Member, Board of Governors of the
Federal Reserve System
The Federal Reserve supports the creation of the Financial Services Information Sharing
and Analysis Center in response to the President's directive to protect our nation's
banking and financial services from the threat of physical and cyber attacks.
October 1, 1999 - OTS Releases
July Enforcement Statistics
WASHINGTON, D.C., October 1, 1999 -- The Office of Thrift Supervision (OTS) reported today
that it completed three enforcement actions in July 1999.
October 1, 1999
- Joint Interagency Statement - The four federal banking agencies have issued the attached
joint statement addressing the agencies' supervisory approach to possible temporary
balance sheet growth due to potential unusual market responses around the century date
1999 - FDIC Chairman Donna Tanoue today announced the appointment of John F. Bovenzi
as the new Deputy to the Chairman and Chief Operating Officer, effective today. Mr.
Bovenzi has been Director of the Division of Resolutions and Receiverships (DRR). He
replaces Dennis F. Geer, who retired yesterday after more than 27 years of federal
service, including senior positions at the FDIC and the Resolution Trust Corporation for
the past eight years.