R. Kinney Williams - Yennik, Inc.
R. Kinney Williams
Yennik, Inc.

The Community Banker
Brought to you by Yennik, Inc. the acknowledged leader in Internet auditing for financial institutions.


Bank Regulatory News

October 2007

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October 31, 2007 - Frequency of Observation and the Estimation of Integrated Volatility in Deep and Liquid Financial Markets - Alain Chaboud, Benjamin Chiquoine, Erik Hjalmarsson, and Mico Loretan - Using two newly available ultrahigh-frequency datasets, we investigate empirically how frequently one can sample certain foreign exchange and U.S. Treasury security returns without contaminating estimates of their integrated volatility with market microstructure noise. www.federalreserve.gov/pubs/ifdp/2007/905/ifdp905.htm 

October 31, 2007 - Agencies Issue Final Rules on Identity Theft Red Flags and Notices of Address Discrepancy - The federal financial institution regulatory agencies and the Federal Trade Commission have sent to the Federal Register for publication final rules on identity theft "red flags" and address discrepancies. The final rules implement sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003.
Press Release: www.federalreserve.gov/newsevents/press/bcreg/20071031a.htm 
Press Release: www.fdic.gov/news/news/press/2007/pr07089.html 
Press Release: www.occ.treas.gov/ftp/release/2007-122.htm 
Press Release: www.ots.treas.gov/docs/7/777079.html 

October 31, 2007 - FOMC statement and Board approval of discount rate requests of the Federal Reserve Banks of New York, Richmond, Atlanta, Chicago, St. Louis, and San Francisco.  www.federalreserve.gov/newsevents/press/monetary/20071031a.htm 

October 30, 2007 - OTS Encourages Thrifts to Assist Customers Affected by Wildfires - The Office of Thrift Supervision today urged thrifts in areas affected by Southern California wildfires to consider all reasonable steps to meet customers' financial needs. www.ots.treas.gov/docs/7/777078.html 

October 30, 2007 - OCC Chief of Staff Testifies Before House Oversight and Investigations Subcommittee - Chief of Staff and Public Affairs John G. Walsh discussed the Office of the Comptroller of the Currency's progress in promoting and preserving minority-owned financial institutions in testimony today before the Subcommittee on Oversight and Investigations of the House Committee on Financial Services. www.occ.treas.gov/ftp/release/2007-121.htm 

October 30, 2007 - Financial Market Perceptions of Recession Risk - Thomas B. King, Andrew T. Levin, and Roberto Perli - Over the Great Moderation period in the United States, we find that corporate credit spreads embed crucial information about the one-year-ahead probability of recession, as evidenced by both in- and out-of-sample fit. Furthermore, the incidence of "false positive" predictions of recession is dramatically reduced by utilizing a bivariate model that includes a measure of credit spreads along with the slope of the yield curve; indeed, these bivariate models provide much better forecasting performance than any combination of univariate models. www.federalreserve.gov/pubs/feds/2007/200757/index.html 

October 30, 2007 - Welfare-Maximizing Monetary Policy under Parameter Uncertainty - Rochelle M. Edge, Thomas Laubach, and John C. Williams - This paper examines welfare-maximizing monetary policy in an estimated micro-founded general equilibrium model of the U.S. economy where the policymaker faces uncertainty about model parameters. Uncertainty about parameters describing preferences and technology implies not only uncertainty about the dynamics of the economy. www.federalreserve.gov/pubs/feds/2007/200756/index.html 

October 30, 2007 - OTS Appoints Barbara Shycoff Managing Director of External Affairs - The Office of Thrift Supervision announced today the appointment of Barbara Shycoff as Managing Director of External Affairs. www.ots.treas.gov/docs/7/777077.html 

October 30, 2007 - Proposed Guidance on Garnishment of Exempt Federal Benefit Funds: Request for Comment - Guidance encourages financial institutions to minimize hardships on federal benefits recipients while still complying with applicable law. www.occ.treas.gov/ftp/bulletin/2007-43.html 

October 30, 2007 - FDIC Launches Study to Identify Alternatives to Payday Loans; Applications to Participate Accepted Through November 20th - The Federal Deposit Insurance Corporation is now accepting bankers' applications to participate in its Affordable and Responsible Consumer Credit pilot program, which will begin in January 2008. Between 20 and 40 participants will be selected from interested institutions based on information describing their small-dollar loan programs. Applications will be accepted through November 20, 2007. www.fdic.gov/news/news/press/2007/pr07088.html 

October 30, 2007 - Sandra F. Braunstein, Director, Division of Consumer and Community Affairs - Minority-owned banks - Before the Subcommittee on Oversight and Investigations, Committee on Financial Services, U.S. House of Representatives.   www.federalreserve.gov/newsevents/testimony/braunstein20071030a.htm 

October 29, 2007 - Managing Risk When Private Equity has Gone Big - Chicago Fed Letter examines whether risk management in private equity has kept pace with rapid growth. www.chicagofed.org/publications/fedletter/cfldecember2007_245a.pdf 

October 29, 2007 - Statistical Release - G.20 Finance Companies.  www.federalreserve.gov/releases/g20/Current/ 

October 29, 2007 - Oppedahl on the agriculture R&D conference By Guest Blogger David Oppedahl - Have you ever wondered how the U.S. can produce so much food with relatively few farmers? On September 24, 2007, at the Federal Reserve Bank of Chicago you could have learned some of the reasons behind the cornucopia of output from U.S. agriculture at our conference The Role of R&D in Agriculture and Related Industries: Today and Tomorrow. http://midwest.chicagofedblogs.org/archives/2007/10/oppedahl_on_eth.html 

October 29, 2007 - Bank Securities Activities: SEC's and Federal Reserve's Final Regulation R - Final rules define the extent to which securities brokerage activities of banks are subject to SEC regulation." These rules will implement certain provisions of GLBA. www.occ.treas.gov/ftp/bulletin/2007-42.html 

October 29, 2007 - Reports to Congress - Availability of Credit to Small Businesses, October 2007.   www.federalreserve.gov/pubs/reports_other.htm#smallbiz 

October 26, 2007 - Improving the Economic Mobility of Workers - In Chicago Fed Letter Economist Maude Toussaint-Comeau previews conference exploring issues affecting low-wage workers.  www.chicagofed.org/publications/fedletter/cfldecember2007_245.pdf 

October 26, 2007 - OTS Issues Monthly Market Monitor - The Office of Thrift Supervision releases today its first public issue of the Monthly Market Monitor. Going forward, the publication will be carried by the OTS as an online publication providing timely information on the capital markets, the economy and mortgage loan performance. www.ots.treas.gov/docs/7/777075.html 

October 26, 2007 - Implied Interest Rate Skew, Term Premiums, and the "Conundrum" - J. Benson Durham - The skew, irrespective of the mean and variance, of investors' interest rate expectations may affect required bond yields over expected short rates. Indeed, evidence suggests that the near-term skew of the option-implied distribution of expected short-term interest rates correlates with distant-horizon term premiums, as derived from a latent-factor affine term structure model. Reduced-form models that include skew generally fit the data well and actually better "explain" variation in the term premium during the so-called "conundrum" than during other periods of the May 1989 to May 2006 sample. www.federalreserve.gov/pubs/feds/2007/200755/index.html 

October 26, 2007 - Legal Interpretations - Bank Holding Company/Change in Control, October 12, 2007 - Letter to Citigroup, describing the risk-based capital requirements under the Board's capital adequacy guidelines (12 CFR parts 208 and 225, Appendix A) for bank holding companies and state member banks that provide liquidity facilities to a structured finance vehicle, the Master Liquidity Enhancement Conduit. www.federalreserve.gov/boarddocs/legalint/BHC_ChangeInControl/2007/20071012.pdf 

October 26, 2007 - Legal Interpretations - Federal Reserve Act, October 23, 2007 - Letter to Carl Howard, Esq., Citigroup Inc., New York, New York, granting a modification to an exemption from section 23A of the Federal Reserve Act (12 U.S.C. 371c) and Regulation W (12 CFR Part 223) that the Board granted on August 20, 2007; this modification will permit Citibank, N.A., to engage in certain securities financing transactions with its European securities affiliate, Citigroup Global Markets Ltd., London, United Kingdom. www.federalreserve.gov/boarddocs/legalint/FederalReserveAct/2007/20071023/20071023.pdf 

October 26, 2007 - Reserve Requirement Systems in OECD Countries - Yueh-Yun C. O'Brien - This paper compares the reserve requirements of OECD countries. Reserve requirements are the minimum percentages or amounts of liabilities that depository institutions are required to keep in cash or as deposits with their central banks. To facilitate monetary policy implementation, twenty-four of the thirty OECD countries impose reserve requirements to influence their banking systems' demand for liquidity. www.federalreserve.gov/pubs/feds/2007/200754/index.html 

October 26, 2007 - Governor Frederic S. Mishkin - Financial Instability and the Federal Reserve as a Liquidity Provider - At the Museum of American Finance Commemoration of the Panic of 1907, New York, New York.  www.federalreserve.gov/newsevents/speech/mishkin20071026a.htm 

October 26, 2007 - NCUA External Affairs Deputy Moves to Treasury - National Credit Union Administration Associate Director of External Affairs Justin Grove was selected to serve on special detail at the U.S. Department of Treasury. Grove will advise and assist Treasury officials with task forces and initiatives dealing with financial education and current issues facing the economy. www.ncua.gov/news/press_releases/2007/MR07-1026.htm 

October 26, 2007 - OCC Reports Quarterly Bank Trading Revenues of $6.2 Billion - Insured U.S. commercial banks generated $6.2 billion in trading revenues during the second quarter of 2007, up 30 percent from a year earlier, the Office of the Comptroller of the Currency reported today in the OCC's Quarterly Report on Bank Derivatives Activities. Revenues for the quarter were the second highest ever recorded, trailing only this year's first quarter. www.occ.treas.gov/ftp/release/2007-120.htm 

October 26, 2007 - Regulatory Relief - Guidance to Help Financial Institutions and to Facilitate Recovery in Areas of California Affected by Major Fires - The Federal Deposit Insurance Corporation has announced a series of steps intended to provide regulatory relief to financial institutions and to facilitate recovery in areas of California damaged by recent fires. www.fdic.gov/news/news/financial/2007/fil07093.html

October 25, 2007 - Final Regulation R - Exceptions and Exemptions for Banks from the Definition of "Broker" - On October 3, 2007, the Board of Governors of the Federal Reserve System and the U.S. Securities and Exchange Commission published the attached final rules that implement provisions of the Gramm-Leach-Bliley Act that except banks from the definition of "broker" under the Securities Exchange Act of 1934 when they conduct certain securities transactions. Known as "Regulation R," the rules clarify permissible bank brokerage activities that can be conducted under the GLBA exceptions. www.fdic.gov/news/news/financial/2007/fil07092.html 

October 25, 2007 - Letter to Stakeholders - Third Quarter 2007 Edition of FDIC's Letter to Stakeholders - The FDIC has issued the attached Letter to Stakeholders from FDIC Chairman Sheila Bair, which reports on the FDIC's priorities and activities for the third quarter of 2007. www.fdic.gov/news/news/financial/2007/fil07091.html 

October 25, 2007 - Documentation of the Research and Statistics Division's Estimated DSGE Model of the U.S. Economy: 2006 Version - Rochelle M. Edge, Michael T. Kiley, and Jean-Philippe Laforte - This paper provides documentation for the large-scale estimated DSGE model of the U.S. economy used in Edge, Kiley, and Laforte. The model represents part of an ongoing research project in the Macroeconomic and Quantitative Studies section of the Federal Reserve Board aimed at developing a DSGE model that can be used to address practical policy questions and the model documented here is the version that was current at the end of 2006. www.federalreserve.gov/pubs/feds/2007/200753/200753abs.html 

October 25, 2007 - Agencies Issue Final Rules on Affiliate Marketing - The federal financial regulatory agencies issued final rules today that provide consumers with an opportunity to "opt out" before a financial institution uses information provided by an affiliated company to market its products and services to the consumer. The final rules on affiliate marketing implement section 214 of the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act.
Press Release: www.federalreserve.gov/newsevents/press/bcreg/20071025a.htm 
Press Release: www.fdic.gov/news/news/press/2007/pr07087.html 
Press Release: www.occ.treas.gov/ftp/release/2007-119.htm 
Press Release: www.ots.treas.gov/docs/7/777074.html 
Press Release: www.ncua.gov/news/press_releases/2007/JR07-1025.pdf

October 25, 2007 - NCUA - Final Regulation 12 CFR 701 - Reincorporation of FCU Bylaws into NCUA regulations.   www.ncua.gov/RegulationsOpinionsLaws/RecentFinalRegs/F-701.pdf 

October 25, 2007 - NCUA - Results of the 10/25/2007 NCUA Board Meeting are available.  www.ncua.gov/NCUABoard/board_reports/board_reports.html 

October 24, 2007 - OCC Chief of Staff Addresses the Kennedy School of Government - Chief of Staff and Public Affairs John G. Walsh discussed the Office of the Comptroller of the Currency's approach to prudential supervision in a speech today to the Kennedy School of Government. www.occ.treas.gov/ftp/release/2007-118.htm 

October 24, 2007 - OCC Deputy Comptroller for Compliance Policy Ann F. Jaedicke Testifies Before House Oversight and Government Reform Subcommittee - Deputy Comptroller for Compliance Policy Ann F. Jaedicke discussed the Office of the Comptroller of the Currency's fair lending and Community Reinvestment Act examination processes in testimony today before the Subcommittee on Domestic Policy of the House Committee on Oversight and Government Reform. www.occ.treas.gov/ftp/release/2007-117.htm 

October 24, 2007 - Sandra F. Braunstein, Director, Division of Consumer and Community Affairs - The Community Reinvestment Act and fair lending examination processes - Before the Subcommittee on Domestic Policy, Committee on Oversight and Government Reform, U.S. House of Representatives.  www.federalreserve.gov/newsevents/testimony/braunstein20071024a.htm 

October 24, 2007 - Chairman Johnson Testifies On Mortgage Reform - National Credit Union Administration Chairman JoAnn Johnson testified today before the House Financial Services Committee on mortgage reform. The Legislative Proposals on Reforming Mortgage Practices hearing included three panels -- federal regulators and state banking supervisors, consumer groups, and industry trade associations. www.ncua.gov/news/press_releases/2007/MA07-1024.htm 

October 24, 2007 - Comptroller Dugan Discusses Subprime Legislation in Testimony Before House Committee on Financial Services.  www.occ.treas.gov/ftp/release/2007-116a.pdf 

October 24, 2007 - Examination Cycle - Joint Final Rules on Expanded Examination Cycle for Certain Small Insured Depository Institutions and U.S. Branches and Agencies of Foreign Banks - The FDIC and the other federal financial institution regulatory agencies have jointly adopted the attached final rules permitting insured depository institutions that have up to $500 million in total assets, and that meet certain other criteria, to qualify for an 18 month on site examination cycle. www.fdic.gov/news/news/financial/2007/fil07090.html 

October 24, 2007 - Governor Randall S. Kroszner - Legislative proposals on reforming mortgage practices - Before the Committee on Financial Services, U.S. House of Representatives.  www.federalreserve.gov/newsevents/testimony/kroszner20071024a.htm 

October 24, 2007 - Consumers need to keep five tips in mind for managing their checking accounts and safeguarding their funds from unauthorized transfers by criminals, according to a new Federal Reserve Board publication. www.federalreserve.gov/newsevents/press/other/20071024a.htm 

October 23, 2007 - Thirteen Executives Named to St. Louis Fed's Community Development Advisory Council - Federal Reserve Bank of St. Louis has created a Community Development Advisory Council and named executives from 13 organizations that represent nonprofits, financial institutions, universities, governments and foundations throughout the Eighth Federal Reserve District. The Council will meet twice annually. www.stlouisfed.org/news/releases/2007/10_19_07.htm 

October 23, 2007 - OCC Allows National Bank Offices Affected by Wildfires in Southern California to Close - The Office of the Comptroller of the Currency today issued a proclamation allowing national bank offices affected by the wildfires in southern California to close at their discretion. www.occ.treas.gov/ftp/release/2007-115.htm 

October 23, 2007 - Comptroller Dugan Tells Conference of Basel II Capital Accord Forward Progress - Comptroller of the Currency John C. Dugan said today Federal bank regulators are nearing completion of the supervisory and regulatory framework for Basel II in the United States, with tangible progress to report as it relates to both rulemaking efforts regarding Pillar 1 - minimum capital requirements and Pillar 2 - supervisory review of capital adequacy at individual firms. www.occ.treas.gov/ftp/release/2007-114.htm 

October 23, 2007 - Do High Debt Payments Hinder Household Consumption Smoothing? - Kathleen W. Johnson and Geng Li - Recently, U.S. households have committed a rising share of disposable personal income to required principal and interest payments on household debt. Studies of the direct link between the household debt service ratio and consumption show mixed results-perhaps because debt may instead alter the relationship between consumption and income. www.federalreserve.gov/pubs/feds/2007/200752/index.html 

October 22, 2007 - September economic growth below average - The Chicago Fed National Activity Index was -0.45 in September, up from -0.68 in August. All four broad categories of indicators made negative contributions to the index in September. However, contributions from three categories-production, employment, and sales, orders, and inventories - improved in September from August. www.chicagofed.org/economic_research_and_data/files/cfnai_october2007.pdf 

October 22, 2007 - Truth in Savings Act-Regulation DD: Revised Examination Procedures - Procedures reflect changes in regulation that address uniformity and adequacy of information provided to consumers when they overdraw their deposit accounts. www.occ.treas.gov/ftp/bulletin/2007-41.html

October 22, 2007 - Governor Randall S. Kroszner - Recent Events in Financial Markets - At the Institute of International Bankers Annual Breakfast Dialogue, Washington, D.C. www.federalreserve.gov/newsevents/speech/kroszner20071022a.htm 

October 20, 2007 - Governor Frederic S. Mishkin - Headline versus Core Inflation in the Conduct of Monetary Policy - At the Business Cycles, International Transmission and Macroeconomic Policies Conference, HEC Montreal, Montreal, Canada.   www.federalreserve.gov/newsevents/speech/mishkin20071020a.htm 

October 19, 2007 - NCUA - The October 2007 NCUA Newsletter is available.  www.ncua.gov/news/newsletter/NCUA/2007October.pdf 

October 19, 2007 - OCC Releases CRA Evaluations For 32 National Banks - The Office of the Comptroller of the Currency today released a list of Community Reinvestment Act performance evaluations that became public during the period of September 15, 2007 through October 14, 2007. www.occ.treas.gov/ftp/release/2007-113.htm 

October 19, 2007 - The Federal Reserve Board on Friday approved the application by ICICI Bank Limited, Mumbai, India, to establish a federal branch in New York, New York. www.federalreserve.gov/newsevents/press/orders/20071019a.htm 

October 19, 2007 - Mid-year jobs report - By Guest Blogger Vanessa Haleco-Meyer, Associate Economist - Economists and policymakers often pay close attention to payroll job numbers because they are among the most current and wide-ranging economic indicators available for states and regions. However, payroll job numbers should be viewed with caution as they are subject to revision; that is, an annual revision is undertaken during early March for the data of the previous five years. www.midwest.chicagofedblogs.org/archives/2007/10/midyear_munley.html   

October 19, 2007 - FDIC Advisory Committee on Economic Inclusion to Examine Money Services Businesses' Access to Banking System - The FDIC Advisory Committee on Economic Inclusion will convene on October 24 to examine money services businesses and their access to banking services. The committee will hear from experts on the challenges facing the MSB industry as well as from bankers who have successful relationships with MSBs. www.fdic.gov/news/news/press/2007/pr07086.html 

October 19, 2007 - Chairman Ben S. Bernanke - Monetary Policy under Uncertainty - At the 32nd Annual Economic Policy Conference, Federal Reserve Bank of St. Louis www.federalreserve.gov/newsevents/speech/bernanke20071019a.htm 

October 18, 2007 - The Mixing of Banking and Commerce: A conference summary - Nisreen H. Darwish Douglas D. Evanoff - Acquisitions of industrial loan corporations by commercial firms have renewed the debate over the separation between banking and commerce in the U.S. On May 16-18, 2007, policymakers and academics weighed in on this debate during the Chicago Fed's 43rd annual Conference on Bank Structure and Competition, titled The Mixing of Banking and Commerce. www.chicagofed.org/publications/fedletter/cflnovember2007_244a.pdf 

October 18, 2007 - Letter to Jay Levine, The Royal Bank of Scotland plc, Edinburgh, Scotland, granting an exemption from section 23A of the Federal Reserve Act (12 U.S.C. 371c) and Regulation W (12 CFR Part 223) for certain securities financing transactions between the New York, New York, and Greenwich, Connecticut, branches of The Royal Bank of Scotland plc and their U.S. securities affiliate, Greenwich Capital Markets, Inc. www.federalreserve.gov/BoardDocs/LegalInt/FederalReserveAct/2007/20071012/20071012.pdf 

October 18, 2007 - Deposit Insurance Assessments - Advance Notice of Proposed Rulemaking on Dividends - Corrections to Federal Register Notice - On September 26, 2007, the FDIC issued FIL-85-2007 seeking comment on an Advance Notice of Proposed Rulemaking on alternative methods for allocating dividends as part of a final rule to implement the dividend requirements of the Federal Deposit Insurance Reform Act of 2005 and the Federal Deposit Insurance Reform Conforming Amendments Act of 2005. www.fdic.gov/news/news/financial/2007/fil07089.html 

October 18, 2007 - Consumer Information - 5 Tips for Protecting Your Checking Account.  www.federalreserve.gov/Pubs/checkingaccount/ 

October 17, 2007 - Midwest Economic Activity Expands at Modest Pace - "Beige Book" reports on economic conditions during September in the Seventh Federal Reserve District. www.federalreserve.gov/fomc/beigebook/2007/20071017/7.htm 

October 17, 2007 - Limitations on Terms of Consumer Credit Extended to Military Service Members and Dependents: Department of Defense Final Rule - which applies to specific payday loans, vehicle title loans, and tax refund anticipation loans, limits interest on those loans, among other requirements. www.occ.treas.gov/ftp/bulletin/2007-40.html 

October 17, 2007 - OCC Enforcement Actions - The Office of the Comptroller of the Currency today released new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks. www.occ.treas.gov/ftp/release/2007-112.htm 

October 17, 2007 - Statistical Release - U.S. Reserve Assets; Foreign Official Assets Held at Federal Reserve Banks.   www.federalreserve.gov/releases/bulletin/0907assets.htm 

October 17, 2007 - Beige Book - Informal review by the Federal Reserve Banks of current economic conditions in their Districts.  www.federalreserve.gov/fomc/beigebook/2007/20071017/default.htm 

October 16, 2007 - OCC 2007-39, Revisions to 12 CFR 4: 18-Month Examination Cycle: Final Rule - Final rule amends 12 CFR 4 to expand description of banks qualified for the 18-month examination cycle. www.occ.treas.gov/ftp/bulletin/2007-39.html 

October 16, 2007 - Legal Interpretations - Federal Reserve Act, October 11, 2007.  www.federalreserve.gov/boarddocs/legalint/FederalReserveAct/2007/20071011/20071011.pdf 

October 16, 2007 - The Federal Reserve Board on Tuesday released the minutes of its discount rate meetings from August 16 through September 18, 2007. www.federalreserve.gov/newsevents/press/monetary/20071016a.htm 

October 16, 2007 - NCUA Issues Prohibition Orders - The National Credit Union Administration Board has issued orders prohibiting the following individuals from participating in the affairs of any federally insured financial institution. www.ncua.gov/news/press_releases/2007/MR07-1016.htm 

October 16, 2007 - Financial Holding Companies As of October 12, 2007 - Under the Bank Holding Company Act, bank holding companies may elect to be financial holding companies. Following is a list of those companies whose elections to become or be treated as financial holding companies are effective. The list includes only the top-tier company in each organization. www.federalreserve.gov/generalinfo/fhc/default.htm 

October 16, 2007 - Industrial Production And Capacity Utilization - Industrial production increased 0.1 percent in September after having been unchanged in August. At 114.4 percent of its 2002 average, total industrial production in September was 1.9 percent above its year-earlier level. www.federalreserve.gov/releases/g17/Current/default.htm 

October 15, 2007 - Speech by Chairman Ben S. Bernanke - The Recent Financial Turmoil and its Economic and Policy Consequences.  www.federalreserve.gov/newsevents/speech/bernanke20071015a.htm 

October 15, 2007 - Comptroller Dugan Tells Conference that Consumers Will Benefit From More Unified Interagency Approach to Complaint Handling - Comptroller of the Currency John C. Dugan said today that customers of banks, thrifts, and credit unions could benefit significantly from an interagency initiative to create a more streamlined and consumer-friendly approach to handling questions and complaints. www.occ.treas.gov/ftp/release/2007-111.htm 

October 15, 2007 - "Monetary Policy Under Uncertainty," the Federal Reserve Bank of St. Louis' 32nd Annual Economic Policy Conference.  www.stlouisfed.org/news/releases/2007/10_10_07.htm 

October 15, 2007 - Statistical Supplement to the Federal Reserve Bulletin September 2007.   www.federalreserve.gov/pubs/supplement/2007/09/default.htm 

October 15, 2007 - Updated Examination Procedures for Regulation DD - The FFIEC Task Force on Consumer Compliance recently approved the attached examination procedures for Regulation DD. The updated procedures incorporate all amendments to Regulation DD since the original release of the procedures in 1993. www.federalreserve.gov/boarddocs/caletters/2007/0707/caltr0707.htm 

October 15, 2007 - The Federal Reserve Board on Monday announced the termination of the enforcement action against Progress Bancshares, Inc., Sullivan, Missouri.  www.federalreserve.gov/newsevents/press/enforcement/20071015a.htm 

October 15, 2007 - Consumer Affairs Letters - Federal Reserve Address Change for Complaints - Affecting Regulations AA, B, and the Fair Housing Act, CA 07-06.  www.federalreserve.gov/boarddocs/caletters/2007/0706/caltr0706.htm 

October 15, 2007 - Vice Chairman Donald L. Kohn - At the Conference on John Taylor's Contributions to Monetary Theory and Policy, Federal Reserve Bank of Dallas, Dallas, Texas.  www.federalreserve.gov/newsevents/speech/kohn20071012a.htm 

October 12, 2007 - Federal Reserve Bulletin: Legal Developments - Second Quarter, 2007.   www.federalreserve.gov/pubs/bulletin/2007/pdf/legalq207.pdf 

October 12, 2007 - The Federal Reserve Board on Friday announced its determination, after consultation with the Secretary of the Treasury, that the acquisition, management, and operation in the United Kingdom by Citigroup Inc., New York, New York, of certain defined benefit pension plans established by unaffiliated third parties are activities that are financial in nature and permissible for Citigroup Inc., as a financial holding company, to engage in under section 4 of the Bank Holding Company Act. www.federalreserve.gov/newsevents/press/orders/20071012a.htm 

October 12, 2007 - OTS Director Reich Addresses National Bankers Association - Office of Thrift Supervision Director John Reich addressed the National Bankers Association today during its Annual Convention in Durham, N.C. www.ots.treas.gov/docs/7/777073.html 

October 12, 2007 - Chairman Ben S. Bernanke - Opening remarks - To the Conference on John Taylor's Contributions to Monetary Theory and Policy, Federal Reserve Bank of Dallas, Dallas, Texas www.federalreserve.gov/newsevents/speech/bernanke20071012a.htm

October 11, 2007 - The role of securitization in mortgage lending by Richard J. Rosen, senior economist and economic advisor - Recent media coverage on the problems in the subprime mortgage market has featured an alphabet soup of abbreviations, such as MBS, CDO, and SIV. What do these terms stand for? And how do they fit into the mortgage financing process? www.chicagofed.org/publications/fedletter/cflnovember2007_244.pdf 

October 11, 2007 - Working with Borrowers: Statement on Residential Real Estate Loan Structurings for Serviced Loans - Statement encourages servicers to identify borrowers at risk of default and to pursue loss mitigation strategies that could preserve their homeownership. www.occ.treas.gov/ftp/bulletin/2007-38.html 

October 11, 2007 - The Effects of Past Entry, Market Consolidation, and Expansion by Incumbents on the Probability of Entry - Robert M. Adams and Dean F. Amel - The threat of entry is an important factor in the evaluation of the potential competitive effects of proposed mergers and acquisitions. In the evaluation of proposed bank mergers, a high probability of entry, or strong potential competition, is often found to mitigate the potential anticompetitive effect of a proposed horizontal merger. www.federalreserve.gov/pubs/feds/2007/200751/index.html 

October 11, 2007 - Choice of Mortgage Contracts: Evidence from the Survey of Consumer Finances - Brahima Coulibaly and Geng Li - This study revisits the empirical question of the determinants of the choice between fixed and adjustable-rate mortgages using more comprehensive data from the Survey of Consumer Finances (SCF) that overcome some of the data limitations in previous studies. The results from a Logit model of mortgage choice indicate that pricing variables and affordability are important considerations. www.federalreserve.gov/pubs/feds/2007/200750/index.html 

October 11, 2007 - Operational Problems and Aggregate Uncertainty in the Federal Funds Market - Elizabeth Klee -This paper uses operational problems at commercial banks in sending Fedwire payments as a proxy for aggregate uncertainty in end-of-day Fed account positions and then examines funds market behavior on those days. The results suggest that increased uncertainty is associated with a deviation of the federal funds rate from the FOMC's target rate, the magnitude depending on the severity of the difficulty, the payment volume of the affected participant, and the time of day. www.federalreserve.gov/pubs/feds/2007/200749/index.html 

October 11, 2007 - Governor Randall S. Kroszner - Markets, Financial Institutions, and Consumers: The Roles of the Federal Reserve - At the National Bankers Association 80th Annual Convention, Durham, North Carolina.  www.federalreserve.gov/newsevents/speech/kroszner20071011a.htm 

October 10, 2007 - OCC Chief of Staff Addresses the National Bankers Association - The Office of the Comptroller of the Currency's Chief of Staff John G. Walsh discussed minority banking outreach efforts, new foreclosure prevention initiatives, and pending Part 24 legislation today in a speech today to the National Bankers Association. www.occ.treas.gov/ftp/release/2007-110.htm 

October 9, 2007 - Garnishment of Exempt Federal Benefit Funds - Proposed Interagency Guidance - The five federal financial regulatory agencies are seeking public comment on the attached proposed guidance encouraging federally regulated financial institutions to follow best practices to protect federal benefit payments from garnishment orders. www.fdic.gov/news/news/financial/2007/fil07087.html 

October 9, 2007 - NCUA - Regulatory Alert 07-RA-08 - Department of Defense Final Rule, 32 C.F.R. Part 232.  www.ncua.gov/reg_alerts/2007/07-RA-08.pdf 

October 9, 2007 - Habit Persistence, Non-separability Between Consumption and Leisure, or Rule-of-Thumb Consumers: Which Accounts for the Predictability of Consumption Growth? - Michael T. Kiley - Consumption growth is predictable, a basic violation of the permanent-income hypothesis. This paper examines three possible explanations: rule-of-thumb behavior, in which households allow consumption to track per-period income flows rather than permanent income; habit persistence; and non-separability in preferences over consumption and leisure. The data appear most consistent with non-separable preferences over consumption and leisure. www.federalreserve.gov/pubs/feds/2007/200748/index.html 

October 9, 2007 - Credit Derivatives and Risk Management - Michael S. Gibson - The striking growth of credit derivatives suggests that market participants find them to be useful tools for risk management. I illustrate the value of credit derivatives with three examples. A commercial bank can use credit derivatives to manage the risk of its loan portfolio. An investment bank can use credit derivatives to manage the risks it incurs when underwriting securities. www.federalreserve.gov/pubs/feds/2007/200747/index.html 

October 9, 2007 - Cracking the Conundrum - David Backus and Jonathan H. Wright -From 2004 to 2006, the FOMC raised the target federal funds rate by 4.25 percentage points, yet long-maturity yields and forward rates fell. We consider several possible explanations for this "conundrum." www.federalreserve.gov/pubs/feds/2007/200746/index.html 

October 9, 2007 - Does Health Affect Portfolio Choice? - Paul Smith and David Love - Previous studies find a strong and positive empirical connection between health status and the share of risky assets held in household portfolios. But is this relationship truly causal, in the sense that households respond to changes in health by altering their portfolio allocation, or does it simply reflect unobserved differences across households? www.federalreserve.gov/pubs/feds/2007/200745/index.html 

October 9, 2007 - The Federal Reserve Board and the Federal Open Market Committee on Tuesday released the attached minutes of the Committee meeting held on September 18, 2007. www.federalreserve.gov/newsevents/press/monetary/20071009a.htm 

October 8, 2007 - Comptroller Dugan Urges Improved Underwriting Standards on Third Party Loans - Comptroller of the Currency John C. Dugan said today that banks need to strengthen their underwriting standards, particularly on loans sold to third party investors. www.occ.treas.gov/ftp/release/2007-109.htm 

October 5 , 2007 - Governor Kevin Warsh - Financial Stability and the Federal Reserve - At the New York State Economics Association 60th Annual Conference, Loudonville, New York.  www.federalreserve.gov/newsevents/speech/warsh20071005a.htm 

October 5, 2007 - FDIC Makes Public July Enforcement Actions; No Administrative Hearings Scheduled - The Federal Deposit Insurance Corporation today released a list of orders of administrative enforcement actions taken against banks and individuals in July. No administrative hearings are scheduled for August. www.fdic.gov/news/news/press/2007/pr07085.html 

October 5, 2007 - Statistical Release - G.19 Consumer Credit -Consumer credit increased at an annual rate of 6 percent in August. Revolving credit increased at an annual rate of 8 percent, and nonrevolving credit increased at an annual rate of 4-3/4 percent. www.federalreserve.gov/releases/g19/Current/ 

October 5, 2007 - Joint Interagency Proposed Guidance on Garnishment of Federal Benefit Payments.  www.ncua.gov/RegulationsOpinionsLaws/proposed_regs/P-07-4783.pdf 

October 5, 2007 - NCUA - Chairman Johnson Addresses NYC Unbanked Conference - Acknowledging the problem, providing financial education, and expanding service to the unbanked are key to needed change.  www.ncua.gov/news/press_releases/2007/MA07-1005.htm 

October 5, 2007 - FDIC Issues List of Banks Examined for CRA Compliance - The Federal Deposit Insurance Corporation today issued its list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act. The list covers evaluation ratings that the FDIC assigned to institutions in July 2007. www.fdic.gov/news/news/press/2007/pr07084.html 

October 5, 2007 - Vice Chairman Donald L. Kohn - Economic Outlook - At the Greater Philadelphia Chamber of Commerce 207th Annual Meeting, Philadelphia, Pennsylvania www.federalreserve.gov/newsevents/speech/kohn20071004a.htm

October 4, 2007 - OCC Survey Finds Bank Underwriting Standards Continue to Ease - The Office of the Comptroller of the Currency released today its thirteenth annual Survey of Credit Underwriting Practices and reported that commercial and retail underwriting standards continued to ease for the fourth consecutive year. www.occ.treas.gov/ftp/release/2007-108.htm   

October 4, 2007 - FDIC Approves the Assumption of the Insured Deposits of Miami Valley Bank, Lakeview, Ohio - The Board of Directors of the Federal Deposit Insurance Corporation today approved the assumption of the insured deposits of Miami Valley Bank, Lakeview, Ohio, by The Citizens Banking Company, Sandusky, Ohio. www.fdic.gov/news/news/press/2007/pr07083.html 

October 4, 2007 - A User's Guide for the Bank Holding Company Performance Report - Serves as an aid in using the Bank Holding Company Performance Report. Provides definitions of the financial ratios and items presented on each page of the BHCPR. www.federalreserve.gov/boarddocs/supmanual/supervision_ubpr.htm 

October 4, 2007 - The Federal Reserve Board announced Thursday that the Consumer Advisory Council will hold its next meeting on Thursday, October 25. The meeting will take place in Dining Room E, Terrace Level, in the Board's Martin Building. The session will begin at 9:00 a.m. and is open to the public. Anyone planning to attend the meeting should, for security purposes, register no later than Tuesday, October 23, by completing the form found online at: www.federalreserve.gov/newsevents/press/other/20071004a.htm 

October 4, 2007 - Patricia E. Yarrington of Chevron joins SF Fed Economic Advisory Council - The Federal Reserve Bank of San Francisco announced today that Patricia E. Yarrington, vice president and treasurer of Chevron Corporation in San Ramon, California, has joined the San Francisco Fed's Economic Advisory Council for a three-year term to conclude in 2010. www.frbsf.org/news/releases/2007/1004.html 

October 4, 2007 - FDIC Reorganizes Legal Division - The Federal Deposit Insurance Corporation today announced a reorganization of its Legal Division to strengthen the Legal Division's contribution to the overall mission of the Corporation. The reorganization will divide the Supervision & Legislation Branch into two distinct units, the Supervision Branch and the Consumer & Legislation Branch. Changes will not be made to other areas of the Division. www.fdic.gov/news/news/press/2007/pr07082.html 

October 4, 2007 - Scott G. Alvarez, General Counsel - Industrial loan companies - Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate.  www.federalreserve.gov/newsevents/testimony/alvarez20071004a.htm 

October 3, 2007 - OTS Director Reich Addresses British Bankers - Office of Thrift Supervision Director John Reich addressed the British Bankers' Association today in London. www.ots.treas.gov/docs/7/777072.html 

October 3, 2007 - OCC Will Hold Hearing on Charges Against Carlos Loumiet, Esq.; - Agency Seeks Cease and Desist Order and Civil Money Penalty - The Office of the Comptroller of the Currency today announced a public hearing before an Administrative Law Judge beginning Tuesday, October 9, 2007, concerning an enforcement proceeding against Carlos Loumiet, Esq., former counsel for the failed Hamilton Bank, N.A., Miami, Florida. www.occ.treas.gov/ftp/release/2007-107.htm 

October 3, 2007 - The Federal Reserve Board on Wednesday announced the termination of the enforcement action listed below. Terminations of enforcement actions are listed on the Federal Reserve's public web site.  www.federalreserve.gov/newsevents/press/enforcement/20071003a.htm 

October 2, 2007 - OCC and Texas Agree to Share Consumer Complaints, Bringing Total of Such Agreements to Twenty-Eight - Comptroller of the Currency John C. Dugan and Texas Banking Commissioner Randall S. James signed a Memorandum of Understanding today that provides a mechanism for sharing consumer complaints between their two agencies. www.occ.treas.gov/ftp/release/2007-106.htm 

October 2, 2007 - Comptroller Dugan Urges Stronger Risk Management For Commercial Real Estate Loans, And Discusses Money Laundering Supervision - Pointing to potential stresses ahead in commercial real estate lending, Comptroller of the Currency John C. Dugan said community banks engaged in this business need to assess the strength of borrowers and identify problem credits at an early stage. www.occ.treas.gov/ftp/release/2007-105.htm 

October 2, 2007 - St. Louis Fed Analysis: What's the Potential Impact of a Bird Flu Pandemic? - In the event of a widespread influenza pandemic in the United States, the odds are that residents in major metropolitan areas would suffer greater mortality rates than those in rural areas, while some businesses could see a decrease in revenues and others, such as healthcare firms, could gain. www.stlouisfed.org/news/releases/2007/10_02_07.htm 

October 2, 2007 - St. Louis Fed's The Regional Economist: Bird Flu Pandemic Trading Barbs: A Primer on the Globalization Debate U.S. Exporters: Rare but Beneficial Community Profile: Jasper, Ind. - The October edition of The Regional Economist, the Federal Reserve Bank of St. Louis' quarterly publication of economic and business issues, features the following articles. www.stlouisfed.org/news/releases/2007/10_02_07b.htm 

October 1, 2007 - Statistical Release - G.5 Foreign Exchange Rates (Monthly) - The Table Below Shows The Average Rates Of Exchange In September 2007 Together With Comparable Figures For Other Months. Averages Are Based On Daily Noon Buying Rates For Cable Transfers In New York City Certified For Customs Purposes By The Federal Reserve Bank Of New York. www.federalreserve.gov/releases/g5/current/ 

October 1, 2007 - Agencies Propose Joint Rule to Implement Unlawful Internet Gambling Enforcement Act - The Department of the Treasury and the Board of Governors of the Federal Reserve System on Monday announced the release of a joint proposed rule to implement the Unlawful Internet Gambling Enforcement Act. The Act prohibits gambling businesses from accepting payments in connection with unlawful Internet gambling, including payments made through credit cards, electronic funds transfers, and checks. www.federalreserve.gov/newsevents/press/bcreg/20071001a.htm 


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