Bank Regulatory News
July 2000

July 31, 2000 - The Federal Reserve Board today requested public comment on a proposed rule that would allow financial holding companies to act as a "finder" by bringing together buyers and sellers of financial and nonfinancial products for transactions that the buyers and sellers themselves negotiate and consummate.  Comment is requested by September 5, 2000.

June 28, 2000 - The Federal Open Market Committee at its meeting decided to maintain the existing stance of monetary policy, keeping its target for the federal funds rate at 6-1/2 percent.  

July 27, 2000 - The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in June. No administrative hearings are scheduled for August.

July 27, 2000 - OTS TESTS 'MYSTERY SHOPPING' TO HELP CHECK THRIFTS' FAIR LENDING COMPLIANCE
The Office of Thrift Supervision announced today it is conducting a pilot program to determine whether “mystery shopping” is a feasible tool to use as part of its oversight of the thrift industry’s compliance with its fair lending obligations.

July 27, 2000 - Cooperation And Coordination Among Federal Banking Agencies Underlies New Financial Modernization Law - WASHINGTON -- Congress, in passing sweeping financial services legislation last year, reaffirmed the existing roles of each of the financial regulatory agencies and emphasized the importance of the special and complementary roles they play, Comptroller of the Currency John D. Hawke, Jr. said today.

July 26, 2000 - In a continuing effort to assist banks in Bank Secrecy Act compliance, anti-money laundering efforts, and prevention and detection of other financial crimes, the FDIC forwards each issue of FinCEN Advisory to FDIC-supervised banks.

July 26, 2000 - Comptroller Hawke Applauds SEC Effort To Enhance Auditor Independence
WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. applauded the Securities and Exchange Commission today for proposing rules aimed at enhancing auditor independence, citing in particular a provision stating that an auditing firm that provides both internal and external audits would not be considered to satisfy the requisite independence requirements.

July 25, 2000 - Subject: Abusive Lending Practices
This advisory is to alert you to abusive lending practices that may involve violations of fair lending and other consumer protection laws and regulations.

July 24, 2000 - The Office of the Comptroller of the Currency (OCC), in a handbook being distributed today to national banks and bank examiners, is reemphasizing the need for banks to establish and maintain strong internal control systems and audit programs.

July 21, 2000 - OTS Release May Enforcement Statistics
The Office of Thrift Supervision (OTS) reported today that it completed nine enforcement actions during the month of May 2000.

July 21, 2000 - The Federal Reserve Board today announced the execution of a Written Agreement by and among New Century Bancorp, the New Century Bank, both of Southfield, Michigan, the Federal Reserve Bank of Chicago, and the Michigan Office of Financial and Insurance Services.

July 21, 2000 - Bank Purchases of Life Insurance Description: Guidelines for National Banks APPENDIX
This bulletin provides general guidelines for national banks to help ensure that bank purchases of life insurance are consistent with safe and sound banking practices. It replaces Bulletin 96-51, dated September 20, 1996, which is hereby rescinded.

July 21, 2000 - OCC Issues Internal Control and Audit Reminder to Banks
WASHINGTON -- The Office of the Comptroller of the Currency today reminded banks of the importance of audit and internal control systems and said deficiencies at some institutions have led to operating losses and fraud investigations.

July 20, 2000 - Testimony of Chairman Alan Greenspan The Federal Reserve's report on monetary policy Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate

July 20, 2000 - OCC Expands Information Sharing Agreements with State Regulators
WASHINGTON -- The Office of the Comptroller of the Currency recognized the need for cooperation with state insurance agencies long before it was mandated by the Gramm-Leach-Bliley Act, First Senior Deputy Comptroller and Chief Counsel Julie L. Williams told a House panel today.

July 19, 2000 - The Federal Reserve Board today announced a fourth public hearing on predatory practices in the home-equity lending market.  The hearing is scheduled from 9 a.m. to 4:30 p.m. on Wednesday August 16, 2000, at the Federal Reserve Bank of Chicago, 230 South LaSalle Street, Chicago, IL. The Board previously announced hearings on July 27 in Charlotte, NC; August 4 in Boston, MA, and September 7 in San Francisco, CA.

July 19, 2000 - OCC Warns that Some Web Site Names May Confuse Bank Customers
The Office of the Comptroller of the Currency today issued an alert outlining steps national banks can take to protect their customers from problems arising from web sites with names similar to those used by banks.

July 19, 2000 - The Federal Financial Institutions Examination Council (FFIEC) announced today the availability of data on 1999 mortgage lending transactions at individual lenders in metropolitan statistical areas (MSAs) throughout the nation. These data, in the form of disclosure statements, are available from the 7,833 lenders covered by the Home Mortgage Disclosure Act (HMDA).

July 18, 2000 - Revised, New and Proposed Interagency Questions and Answers Regarding Community Reinvestment
The Federal Financial Institutions Examination Council (FFIEC) published the attached "Interagency Questions and Answers Regarding Community Reinvestment" (Q&As) on April 28, 2000, in the Federal Register. The Q&As, except as noted below, were effective upon publication. The document also is available on the FFIEC's Web site at: http://www.ffiec.gov/cra/qa/. 

July 18, 2000 - Proposed Revisions to Regulation E (Electronic Fund Transfer Act) Official Staff Commentary
The Board of Governors of the Federal Reserve System (Board) is requesting comment on the attached proposed revisions to the Regulation E Official Staff Commentary. Regulation E implements the Electronic Fund Transfer Act. The commentary interprets the requirements of Regulation E and facilitates compliance by financial institutions that offer electronic fund transfer services to consumers. Comments are due by August 31, 2000.  The proposal provides guidance on electronic authorization of recurring debits from a consumer's account, coverage of electronic check conversion transactions, telephone-initiated fund transfers and other issues.

July 17, 2000 - OTS Releases June National CRA Ratings
The Office of Thrift Supervision (OTS) today issued savings associations' Community Reinvestment Act (CRA) performance evaluation ratings that became available in June 2000.

July 14, 2000 - The Federal Deposit Insurance Corporation (FDIC) has approved the purchase and assumption of the insured deposits of Town and Country Bank of Almelund, Almelund, Minnesota, by S&C Bank, Minnesota, Almelund, Minnesota. S&C Bank, Minnesota is a newly chartered subsidiary of S&C Banco, Inc., New Richmond, Wisconsin.

July 14, 2000 - SEI Investments Company has received permission from the Office of Thrift Supervision (OTS) to organize a federal savings bank, SEI Federal Trust Company, to conduct trust operations. The new thrift will operate out of SEI headquarters in Oaks, Pa., near Philadelphia, and set up a trust agency office in Wilmington, Del.

July 14, 2000 - Revised Suspicious Activity Report
The Federal Deposit Insurance Corporation (FDIC), in conjunction with the other financial institution regulators and the Financial Crimes Enforcement Network (FinCEN), has issued a revised Suspicious Activity Report (SAR) form. All FDIC-supervised financial institutions may immediately begin using the new SAR, but may also continue using the existing form while procedures and systems are updated to make use of the new SAR. All banks, however, must start using the new SAR form by December 31, 2000.

July 14, 2000 - Sanctions Against North Korea and North Korean Nationals
On June 19, 2000, the Department of the Treasury's Office of Foreign Assets Control (OFAC) amended the Foreign Assets Control Regulations to permit new financial, trade and other transactions with North Korea and its nationals. An import notification and approval procedure is in place for all imports from North Korea. Assets blocked prior to June 19, 2000, must remain blocked.

July 12, 2000 - Guidance on Completing HUD-1, HUD-1A and Good Faith Estimate Forms for Home Mortgage Loans
We have received many questions from FDIC-supervised institutions about the proper completion of the HUD-1, HUD-1A and Good Faith Estimate (GFE) forms for home mortgage loans required by the Real Estate Settlement Procedures Act (RESPA) and the Department of Housing and Urban Development's (HUD) implementing Regulation X. The attached documents from HUD should assist FDIC-supervised institutions in understanding and complying with some of the more complex disclosure requirements imposed under RESPA.

July 10, 2000 - The Federal Reserve Board today invited consumers, consumer advocacy organizations, lenders and other interested parties to participate in three public hearings on predatory practices in the home-equity lending market.

July 7, 2000 - The Federal Reserve Board today requested comment on proposed revisions to Regulation E (Electronic Fund Transfers) to implement provisions of the Gramm-Leach-Bliley Act (GLBA) requiring disclosure of automated teller machine (ATM) fees.  Comment is requested by August 18, 2000.

July 6, 2000 - NCUA is alerting credit unions to potential problems with brokered deposits that may raise safety and soundness concerns.

July 6, 2000 - Implement Maker Deere & Company Granted Thrift Charter By OTS
WASHINGTON, D.C., July 6, 2000 – Deere & Company, the Moline, Ill., farm, construction and home implement manufacturer, has received approval from the Office of Thrift Supervision (OTS) to organize a federal savings bank. The new thrift, named FPC Financial, will be based in Madison, Wis., and will take over Deere’s credit card business.

July 6, 2000 - OCC RELEASES CRA EVALUATIONS FOR 15 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 May 15 through June 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.

July 6, 2000 - New OCC Study Finds Banks Offering Internet Services Differ in Significant Ways from Other Institutions
WASHINGTON -- A study completed by a team of economists at the Office of the Comptroller of the Currency found that banks offering Internet services are typically more profitable than those that do not, with the exception of the smallest institutions.

July 6, 2000 - Proposed Security Standards for Customer Information
The Federal Deposit Insurance Corporation (FDIC), the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision are jointly proposing the attached guidelines establishing standards for safeguarding customer information as required by the Gramm-Leach-Bliley Act (GLBA). The agencies are also seeking comment on the rescission of Year 2000 standards for safety and soundness. Comments are due by August 25, 2000.

July 5, 2000 - The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in May. No administrative hearings are scheduled for July.

July 5, 2000 - Summary of Deposits Survey for June 30, 2000
The annual Summary of Deposits (SOD) survey form and instructions for the period ending June 30, 2000, are enclosed. Also, a table of contents is provided for easy reference for reporting new, closed and relocated branches.

July 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 April 2000.

July 5, 2000 - Revised Examination Guidelines for the New Procedures for Financial Institutions to Exempt Transactions of Certain Businesses from the Requirement to Report Transactions in Currency in Excess of $10,000
As of July 1, 2000, new Treasury exemption procedures allowing financial institutions to exempt transactions of certain businesses from the requirement to report transactions in currency in excess of $10,000 (Currency Transaction Report (CTR)) become fully effective. After July 1, 2000, only exemptions granted pursuant to the new exemption procedures will be valid.

July 3, 2000 - Dutch Financial Giant, ING Groep, Receives OTS Approval for Thrift
WASHINGTON, D.C., July 3, 2000 – ING Groep, N.V., the banking and financial services colossus based in Amsterdam, the Netherlands, has received approval from the Office of Thrift Supervision (OTS) to start up a federal thrift institution. ING Bank, the thrift, will be based in Wilmington, Del., and will operate marketing offices in Wilmington and New York City.

July 3, 2000 - The OCC today announced nine new enforcement actions taken against national banks and individuals currently and formerly affiliated with national banks.