Bank Regulatory News
March 1998
OCC - March 31, 1998 - OCC
Issues Loan Portfolio Management Guidance
WASHINGTON, DC -- With the goals of improving overall portfolio management, reducing
potentially dangerous credit concentrations, and enhancing the quality of bank lending
decisions, the Office of the Comptroller of the Currency (OCC) today issued its first
comprehensive loan portfolio management guidance.
Applications Bulletin - Federal Reserve Bank of
Dallas week ending March 27, 1998
LCNB Bancorporation, Inc., Houston, TX, to acquire LCNB Bancorporation of Delaware, Inc.,
Wilmington, DE, and Langham Creek National Bank, Houston, TX
LCNB Bancorporation of Delaware, Inc., Wilmington, DE, to acquire Langham Creek National
Bank, Houston, TX
Thomas Peters, et al, Walnut Strings, TX, to acquire an interest in Southwestern
Bancshares, Inc., Glen Rose, TX
Notice by Wellington State Bank, Wellington, TX, to increase its investment in bank
premises
March 27, 1998 - Texas
Banking Commissioner Catherine A. Ghiglieri announced that in recent months the
"Nigerian Advance Fee Fraud" schemes have resurfaced in Texas.
FDIC - March 26,
1998 - INTERNET ACCESS TO RULES AND REGULATIONS
The electronic Rules and Regulations service includes the complete text of the Federal
Deposit
Insurance Act, FDIC regulations and source notes. Policy statements approved by the FDIC
Board of Directors, selected General Counsel opinions, legal advisory opinions, consumer
laws and regulations related to banking, and selected Federal Reserve regulations also are
part of this electronic service.
March 26, 1998 - U.S. Appeals
Court Upholds OCC Ruling Assessing $250,000 Penalty
WASHINGTON, D.C. -- An order by the Office of the Comptroller of the Currency (OCC)
assessing a $250,000 civil money penalty against a former banker was upheld by the U.S.
Court of Appeals for the District of Columbia, the OCC announced today. The penalty
was assessed against Charles R. Vickery, Jr. for his actions in 1991 as senior chairman of
the First National Bank of Bellaire in Bellaire, Texas.
FDIC March 26, 1998
- YEAR 2000 INTERNAL COMPLIANCE - FDIC Internal Year 2000 Compliance Activities
The impact of the Year 2000 date change on the FDIC’s business operations and what
steps the Corporation is taking to solve potential Year 2000 problems are of interest to
FDIC-supervised institutions, depositors and the general public.
FRB March
26, 1998 - For immediate release
The Federal Reserve Board has voted to move from a system of contemporaneous reserve
requirements to one where reserves are maintained on a lagged basis. The change will
go into effect with the reserve maintenance period beginning July 30, 1998.
FRB March
24, 1998 - For immediate release
The Federal Reserve Board today announced a clarification of the operating standards
relating to customer disclosures of section 20 subsidiaries of bank holding companies.
The clarification is effective March 27, 1998.
March 24, 1998 - Comptroller
Voices Concern over Lending Study
WASHINGTON, D.C. -- The OCC expressed concern today about the implications of a study on
lending practices conducted by the Fair Housing Council, which tested 72 Washington-area
mortgage lending institutions to determine whether minorities were subject to illegal
discrimination in the pre-application process.
March 24, 1998 - FDIC
ANNOUNCES 1997 FINANCIAL RESULTS
The Bank Insurance Fund (BIF) earned $1.4 billion in 1997, according to an FDIC management
report on the Corporation's unaudited financial statements. The Savings Association
Insurance Fund (SAIF) had net income of $0.5 billion for the year.
Applications Bulletin - Federal Reserve Bank of
Dallas week ending March 20, 1998
H B Financial Corp, Highlands, TX, to acquire H B Financial Corp of Delaware, Wilmington,
DE, and Highlands Bank, Highlands, TX
H B Financial Corp of Delaware, Wilmington, DE, to acquire Highlands Bank, Highlands, TX
FDIC March 18, 1998
- YEAR 2000 RISK - Interagency Guidance on Institution Due Diligence Concerning
Service Provider and Software Vendor Year 2000 Readiness, and Year 2000 Impact on
Customers
The Federal Financial Institutions Examination Council (FFIEC) has issued the attached
statements to provide guidance to the industry on the risks associated with Year 2000
readiness for a financial institution's service providers and software vendors, as well as
for its customers. The statements supplement the FFIEC's statement "Year 2000
Project Management Awareness," issued May 5, 1997.
OCC March 18, 1998 - News
Release- Comptroller Commends Federal Reserve for Seeking Comment On Whether to Permit
Voluntary Collection of Race and Gender Data
March 18, 1998 - FDIC
ANALYSTS WARN BANKS ON YEAR 2000 READINESS, REAL ESTATE LENDING, AND OTHER INDUSTRY
CONCERNS
Time is running out for banks to prevent computer problems that could arise from the
change to the Year 2000, Federal Deposit Insurance Corporation analysts warned today in
publications sent to every bank and thrift institution in the country. "A
failure to address Y2K (Year 2000) exposures immediately and successfully may amount to a
gamble backed by the value of the bank franchise and the officers and directors who run
it," the series of publications -- titled Regional Outlook -- said.
March 17, 1998 - OCC ANNOUNCES
14 NEW ENFORCEMENT ACTIONS AND 6 TERMINATIONS
March 16, 1998 -
BANK REPORTS - Revisions to the Reports of Condition and Income (Call Report) for 1998
The Federal Deposit Insurance Corporation (FDIC), the Federal Reserve Board, and the
Office of the Comptroller of the Currency plan to implement a few revisions to the Reports
of
Condition and Income (Call Report) on March 31, 1998, pending approval by the U.S. Office
of Management and Budget. The Federal Financial Institutions Examination Council (FFIEC),
which also has approved the revisions, provided advance notice of the reporting changes
for
1998 in Financial Institution Letter (FIL) 8-98, dated January 20, 1998.
March 16, 1998 - TEXAS
BUSINESSWOMAN, MARYLAND BUSINESSMAN CHARGED WITH CONSPIRING TO DEFRAUD THE FDIC
Federal Deposit Insurance Corporation (FDIC) Inspector General Gaston L. Gianni, Jr.,
announced today that Texas businesswoman Nolanda Sue Hill and Maryland businessman
Kenneth Charles White were indicted March 13 by a federal grand jury in Washington, D.C.,
on charges of conspiring to defraud the FDIC from 1989 to 1993 while serving as officers
of
Corridor Broadcasting Corporation. Corridor owned and operated television broadcast
stations in the District of Columbia (Channel 50) and the Boston/Worcester, Massachusetts,
area (Channel 27) from the mid-1980s to 1993. Hill held a financial interest in and was
chief executive officer of Corridor, while White was Corridor's chief financial officer.
FRB March
13, 1998 - For immediate release
The Federal Reserve Board today requested comment on a comprehensive review of two
of its consumer protection regulations--Regulation B, Equal Credit Opportunity, and
Regulation C, Home Mortgage Disclosure. Comment is requested by May 29.
FRB March
13, 1998 - For immediate release
The Federal Reserve Board today published an interim rule to its Regulation E, Electronic
Fund Transfers, that permits depository institutions to deliver disclosures electronically
if
the consumer agrees.
Applications Bulletin - Federal Reserve Bank of
Dallas week ending March 13, 1998
Texas United Bancshares, Inc., La Grange, TX, to acquire Premier Bancshares, Inc., La
Grange, TX, and State Bank, La Grange, TX, and simultaneously acquire South Central Texas
Bancshares, Inc., Flatonia, TX, Flatonia State Bank, Flatonia, TX, and Central Texas Bank,
La Grange, TX
FRB March
13, 1998 - For immediate release
The Federal Reserve Board today requested public comment on a proposal to permit the
electronic delivery of disclosures for four of its consumer protection regulations.
Comment is requested by May 15.
March 12, 1998 - TEXAS
MOTORCYCLE DEALER SENTENCED FOR MULTI-MILLION DOLLAR SALE OF BOGUS FDIC ASSETS
Federal Deposit Insurance Corporation (FDIC) Inspector General Gaston L. Gianni, Jr.,
announced today that Danny D. Meister, the owner and operator of a motorcycle sales and
automobile repair facility in Pantego, TX, was sentenced March 10 to 70 months in prison
and
ordered to pay $3.1 million in restitution to his victims for the fraudulent sale of
fictitious FDIC
assets. The sentence followed his November 20, 1997, guilty plea to one count of
defrauding an investor of $360,000 in bogus FDIC assets.
March 12, 1998 - ST.
LOUIS FRB -- The appointment of William Poole as president of the Federal Reserve Bank
of St. Louis was announced today by John F. McDonnell, chairman of the Bank’s board
of directors. He will assume his duties on Monday, March 23, 1998.
March 12, 1998 - FDIC
REPORTS THAT COMMERCIAL BANKS AND SAVINGS INSTITUTIONS EARNED RECORD PROFITS IN 1997
Insured commercial banks had record earnings in the fourth quarter of 1997, as well as for
the
full year, according to preliminary data released today by the FDIC. Fourth-quarter net
income
totaled $15.3 billion, an increase of $511 million (3.5 percent) over the previous
quarterly
record of $14.8 billion in the third quarter of 1997. For all of 1997, banks posted record
net
income of $59.2 billion, up $6.9 billion (13.1 percent) from 1996 results.
FRB March
10, 1998 - For immediate release
The Federal Reserve Board today requested comment on the benefits and drawbacks
associated with its 1994 same-day settlement rule. The Board also is requesting comment on
the implications of potential further rule changes to reduce legal disparities between the
Federal Reserve Banks and private-sector banks in the presentment and settlement of
checks. Comments are requested by July 17, 1998.
March 6, 1998 - Department
of Banking, State of Texas
Due to continued concern about state institutions' readiness to deal with Year 2000 (Y2K)
compliance issues and the regulators' responsibility to properly assess risk, Commissioner
Catherine A. Ghiglieri announced that effective today, the analysis of each application
filed with the Department will include a review of Y2K compliance.
FRB -
March 6, 1998 - For immediate release
The Federal Reserve Board today announced revisions in its cash access policy on how cash
shipments and deposits will be handled in an interstate branching environment. The policy
is effective May 4, 1998.
Applications Bulletin - Federal Reserve Bank of
Dallas week ending March 6, 1998
Texas United Bancshares, Inc., La Grange, TX, to acquire Premier Bancshares, Inc., La
Grange, TX, and State Bank, La Grange, TX, and simultaneously acquire South Central
Texas Bancshares, Inc., Flatonia, TX, Flatonia State Bank, Flatonia, TX, and Central Texas
Bank, La Grange, TX
Keene Bancorp, Inc., 401(k) Employee Stock Ownership Plan & Trust, Keene, TX, to
acquire Keene Bancorp, Inc., Keene, TX, and First State Bank, Keene, TX
Cullen/Frost Bankers, San Antonio, TX, to acquire Overton Bancshares, Inc., Fort Worth,
TX, and Overton Bank & Trust, N.A., Fort Worth, TX
March 5, 1998 - FDIC
ANNOUNCES FIVE KEY MANAGEMENT APPOINTMENTS
IN THE DIVISION OF SUPERVISION
FDIC Division of Supervision (DOS) Director Nicholas J. Ketcha Jr. has announced five key
management appointments within the division. Two senior Washington Office executives and
three Assistant Regional Directors have been named.
March 3, 1998 - OCC ANNOUNCES
13 NEW ENFORCEMENT ACTIONS AND ONE TERMINATION
FDIC March 3, 1998
- COMMUNITY REINVESTMENT ACT - Guidelines for Strategic Plan Submissions
The Federal Deposit Insurance Corporation (FDIC) has developed the attached guidelines for
financial institutions choosing to have their Community Reinvestment Act (CRA) performance
evaluated under the strategic plan option. The attachment supplements existing guidance
for preparing and submitting a strategic plan to the FDIC for approval.
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