Bank Regulatory News
October 2000

October 31, 2000 - The Federal Reserve Board today announced a new approach to pricing Federal Reserve Banks' automated clearinghouse (ACH) transactions intended to enhance competition in the provision of services to depository institutions.

October 31, 2000 - OTS Proposes Optional Bylaws That Don't Need Prior Approval
The Office of Thrift Supervision (OTS) said today it is issuing a regulatory proposal to have optional bylaws that savings associations could adopt without first obtaining OTS approval. By not requiring advance notice and allowing the thrift simply to notify OTS within 30 days of its action, the proposal reduces regulatory burden, OTS said.

October 31, 2000 - OTS Director Seidman Announces 2001 All-Industry Leadership Conference
Director Ellen Seidman of the Office of Thrift Supervision (OTS) announced today that her agency will host its first ever All-Industry Leadership Conference for savings association chief executive officers and directors next April 23 and 24 in Atlanta. She made the announcement in a speech at the annual convention of America’s Community Bankers in Seattle.

October 31, 2000 - The occurrence of risky underwriting practices for construction, commercial (nonresidential) real estate, and home equity lending by banks has increased slightly in recent months, according to the FDIC's latest Report on Underwriting Practices, which covers the six months ending September 30, 2000. While the frequency of risky underwriting practices in these loan categories has not reached highs from two years ago, FDIC officials said the situation remains a concern.

October 30, 2000 - The Federal Deposit Insurance Corporation (FDIC) announced today that it will begin operating its new Call Center on November 1, 2000. The Call Center will serve as the FDIC's primary telephone point of contact for the public and the banking community.

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

October 30, 2000 - The Board of Governors of the Federal Reserve System has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The final rule, published in the Federal Register on October 3, 2000, revises the disclosure requirements for credit and charge card solicitations and applications. The rule was effective September 27, 2000; compliance is mandatory as of October 1, 2001.  Attachment

October 30, 2000 - There are signs that the window of opportunity for deposit insurance reform may be closing, FDIC Chairman Donna Tanoue said Monday in a speech to America's Community Bankers in Seattle.

October 27, 2000 - The OCC's "Community Bank Consumer Compliance" booklet updates the 1995 edition. Its introduction explains which banks are subject to the booklet's procedures and how examiners set the scope of a community bank's consumer compliance examination. The booklet's examination procedures help examiners to evaluate a bank’s internal/external audit processes; a bank's compliance with suspicious activity reporting requirements, anti-money laundering practices, and Office of Foreign Assets Control regulations; a small bank’s Community Reinvestment Act performance; and a bank’s compliance with the Homeowners Protection Act.

October 27, 2000 - More National Banks Offer Internet Services, But Active On-Line Customers Are Few
The number of national banks that allow customers to conduct financial transactions on their internet sites increased 52 percent from September 1999 to July 2000, according to analysis conducted by bank examiners from the Office of the Comptroller of the Currency (OCC). Thirty-two percent of national banks had transactional Web sites in July compared to 21 percent in September 1999.  PDF File

October 25, 2000 - Notice of Certain Holding Company Actions Part of OTS Plan to Safeguard Thrift Subsidiaries
The Office of Thrift Supervision (OTS) issued a proposal today that will require some savings and loan holding companies to notify OTS 30 days before undertaking certain significant new business activities so the agency can assess the potential impact on the risk profile of the consolidated entity and subsidiary thrifts. The proposal covers activities that significantly increase holding company debt, reduce capital substantially or involve certain asset acquisitions.

October 24, 2000 - The Federal Reserve Board today announced it is updating and streamlining the interagency program for supervising the U.S. operations of foreign banks in cooperation with other federal and state authorities involved in supervising the banks.

October 24, 2000 - OCC ANNOUNCES 10 NEW ENFORCEMENT ACTIONS
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.

October 23, 2000 - OTS Tells Thrifts to Analyze Investment Securities Thoroughly
The Office of Thrift Supervision (OTS) today cautioned thrift institutions to thoroughly analyze the quality of any security they buy, saying there have been instances in which savings associations have purchased investment securities without performing a thorough underwriting analysis. The agency warned thrifts that such securities may not meet OTS’s underwriting requirements and may not be safe and sound investments.

October 23, 2000 - OTS Releases August Enforcement Statistics
The Office of Thrift Supervision (OTS) reported today that it completed nine enforcement actions during the month of August 2000.

October 23, 2000 - Basel Committee Report Addresses The Supervisory Challenges of Electronic Banking
In a report released today by the Electronic Banking Group of the Basel Committee on Banking Supervision, international bank supervisors agreed that the accelerating pace of technological innovation demands a cooperative approach to the supervision of electronic banking to avoid conflicting regulation among different countries and supervisors.

October 23, 2000 - The Federal Reserve Board today announced the execution of a Written Agreement by and between Citizens Deposit Bank and Trust, Vanceburg, Kentucky, and the Federal Reserve Bank of Cleveland.

October 23, 2000 - The Federal Reserve Board today announced its approval of the application and notice of Wells Fargo & Company, San Francisco, California, to acquire Brenton Banks, Inc., Des Moines, Iowa, and all its banking and nonbanking subsidiaries.

October 20, 2000 - Agencies Propose Consistent Consumer Protection Rules For Affiliate Information Sharing Practices
The federal bank and thrift regulatory agencies today proposed rules to implement the Fair Credit Reporting Act's notice and opt-out provisions governing the sharing of information among financial institution affiliates.  FDIC  OCC  OTS 

October 19, 2000 - Final Rule Amending Regulation Z (Truth in Lending)
The Federal Reserve Board has adopted a final rule amending Regulation Z, which implements the Truth in Lending Act. The rule revises the disclosure requirements for credit and charge card solicitations and applications. Although the revisions are effective immediately, compliance is not mandatory until October 1, 2001.

October 18, 2000 - The National Credit Union Administration announced that it has issued an Order of Prohibition against Pamela H. Murphy, former employee of the VF Credit Association Federal Credit Union located in Greensboro, North Carolina.

October 17, 2000 - OCC RELEASES CRA EVALUATIONS FOR 8 NATIONAL BANKS
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.

October 18, 2000 - To help it evaluate its risk exposure better, the FDIC will soon engage financial firms to explore ways it might enter into risk-sharing contracts with market participants, FDIC Chairman Donna Tanoue announced today.

October 13, 2000 - The Federal Deposit Insurance Corporation (FDIC) has approved the purchase and assumption of the insured deposits of the Bank of Honolulu, Honolulu, Hawaii, by the Bank of the Orient, San Francisco, California.  The Bank of Honolulu, with approximately $66.9 million in assets, was closed today by Hawaii's Commissioner of Financial Institutions, and the FDIC was named receiver.

October 11, 2000 - The Federal Reserve Board today announced the execution of a Written Agreement by and between Bay View Capital Corporation, San Mateo, California, and the Federal Reserve Bank of San Francisco.

October 10, 2000 - The Federal Reserve Board today announced its approval of the proposal by Wells Fargo & Company, San Francisco, California, to acquire First Security Corporation, Salt Lake City, Utah (“First Security”), and thereby acquire all the banking subsidiaries and certain nonbanking subsidiaries of First Security.

October 10, 2000 - Syndicated bank loans adversely classified by examiners increased in 2000 for the second consecutive year, according to data released today by three federal bank regulatory agencies.  OCC FRB 

October 6, 2000 - The Federal Reserve Board announced the issuance of a Final Decision and Order of Prohibition against Carolyn D. Nelson, former Assistant Vice President, Lone Star National Bank, Pharr, Texas. The Order, the result of an action brought by the Office of the Comptroller of the Currency, prohibits Ms. Nelson from participating in the conduct of the affairs of any financial institution or holding company.

October 6, 2000 - The National Credit Union Administration announced that it has issued an Order of Prohibition against Jane Olivera, former manager of Hartford Courant Employees Federal Credit Union located in Hartford, Connecticut.

October 5, 2000 - The Federal Deposit Insurance Corporation has extended the comment period on the change of control notices filed by Citigroup, Inc., to acquire Associates Capital Bank, Inc., Salt Lake City, Utah, and Hurley State Bank, Sioux Falls, South Dakota. The comment period will now expire on October 18, 2000.

October 5, 2000 - OTS Director Seidman Offers Strategy for Successful Community Reinvestment
WASHINGTON, D.C., Oct. 5, 2000 – Asserting that Community Reinvestment Act (CRA) responsibilities “are now an acknowledged aspect of business operations throughout a bank or thrift,” Director Ellen Seidman of the Office of Thrift Supervision (OTS) today laid out a five-point strategy for effective community reinvestment.

October 5, 2000 - OTS Extends Mutual Holding Company, Conversion Rules' Comment Period
WASHINGTON, D.C., Oct. 5, 2000 – The Office of Thrift Supervision (OTS) said today it is extending the comment period on proposed regulations designed to improve the mutual holding company structure and on an interim final rule that changes sections of the agency’s mutual-to-stock conversion rule.

October 5, 2000 - OTS Releases September National CRA Ratings
WASHINGTON, D.C., October 5, 2000 -The Office of Thrift Supervision (OTS) today issued savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in September 2000.

October 5, 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 July 2000.

October 5, 2000 - Specially Designated Nationals and Blocked Persons 

October 4, 2000 - The National Credit Union Administration announced that it has issued an Order of Prohibition against Robert E. Leffler, former manager of GW Federal Credit Union, located in Denver, Colorado.

October 3, 2000 - Security Monitoring of Computer Networks

October 3, 2000 - The Federal Open Market Committee at its meeting today decided to maintain the existing stance of monetary policy, keeping its target for the federal funds rate at 6-1/2 percent.

October 2, 2000 - The Federal Reserve Board today announced the execution of a Written Agreement by and among Independent Southern Bancshares, Inc. Employee Stock Ownership Trust, Brownsville, Tennessee; Independent Southern Bancshares, Inc., Brownsville, Tennessee; and the Federal Reserve Bank of St. Louis.