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NEW DOCUMENTS

FFIEC Issues 2008 Home Mortgage Disclosure Act Guide
Original | Brief Aug 28
OTS Seeks Comment on Consumer Complaint Form
Original | Brief Aug 28
UK FSA to Apply Complaints Handling Rules to Payment Service Providers
Original | Brief Aug 28
OFAC Removes 26 Colombian Entities from SDN List
Original | Brief Aug 28
Thrift Industry Posts $5.4 Billion Loss in 2Q 2008
Original | Brief Aug 27
NCUA Seeks Comment on Call Report Changes
Original | Brief Aug 27
OCC to Host Seminar on Low Income Housing Tax Credit Funds
Original | Brief Aug 27
OTS Encourages Thrifts that Terminate Home Equity Lines of Credit to Work With Borrowers
Original | Brief Aug 26
Insured Bank and Thrift 2Q Earnings Fall 87 Percent
Original | Brief Aug 26
OTS Urges Thrifts to Maintain Consumer Protections When Altering Home Equity Lines of Credit
Original | Brief Aug 26


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FROM THE EDITOR

Hard Times, Come Again
No More


It’s hard to be confident about the state of the economy, particularly the banking industry right now. Financial stocks seem to be the proverbial canary in the coalmine: dropping at the closing bell, signaling that there are systemic problems with the economy.


One sign of this is that bank stocks are not just falling. Many are down by more than 50% of their former market capitalization, and some banks are out-and-out failing.

 

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OCC Broadens Public Welfare Investment Opportunities for National Banks To implement the changes made by the Housing and Economic Recovery Act, the Office of the Comptroller of the Currency issued an interim rule that expands a national bank's ability to invest in all public welfare projects and not only those that primarily benefit low- and moderate-income families.
Fed Proposes Changes to Reporting Requirements for Higher-Priced Loans The Fed proposed amending Regulation C to require a lender to report the spread between a loan's annual percentage rate and a survey-based estimate of rates offered on comparable prime mortgage loans.
Fed Bans Prepayment Penalties for Subprime Loans The Federal Reserve Board adopted consumer protection rules requiring that loan advertisements contain accurate information. The regulations also require lenders to disclose certain information to consumers early in the transaction process.
FDIC Adopts Interim Rule for Liability Determination at Failed Banks The Federal Deposit Insurance Corporation published methods for determining the value of claims against a failed insured depository institution. With certain exceptions, the agency will treat all claims against a failed bank based on the end-of-day balances using the failed banks' normal procedures.
FDIC Requires Large Banks to Adopt Fail-Safe Mechanisms The Federal Deposit Insurance Corporation issued a final rule that required large insured depository institutions to provide the regulator with standard deposit account and other customer information in the event of the institution’s failure.
Citibank Settles Allegations of Stealing from California Credit CustomersCitibank agreed to a final judgment issued by California Superior Court to settle allegations that the bank stole more than $14 million from its customers in an account sweeping program.
Ideal Federal Savings Bank Must Seek Partner for Merger or AcquisitionThe Office of Thrift Supervision issued a cease and desist order against the Maryland savings association, alleging that Ideal Federal operated with excessive volumes of delinquent loans and problem assets, failed to follow limits on loans to one borrower, and maintained poor books and records.
UK FSA Publicly Censures Mortgage BrokerThe Financial Services Authority issued a final notice against Leybridge Limited, alleging that the English mortgage broker failed to ensure that the advice and mortgages it issued were suitable for its customers.
American Sterling Bank Must Improve Fair Lending Compliance Program, Info Security ProgramThe Office of Thrift Supervision issued a cease and desist order against the Missouri savings association, alleging that American Sterling maintained inadequate records and violated regulations concerning affiliate transactions, lending limits, financial audits, and information security.
Kentucky Federal Savings and Loan Association Must Create 3-Year Business PlanThe Office of Thrift Supervision entered into a supervisory agreement with the Kentucky savings association, which requires it to revise its residential lending policies, correct all regulatory violations, and submit quarterly progress reports to the regulator.
Keeping Out Booted Customers Increasingly Important for Banks, Say Compliance Professionals
Even as banks buy and operate expensive filtering systems to block transactions from individuals and companies on economic sanctions lists, financial regulators are increasingly inquiring about another group: customers previously booted for suspicious activity or actual crimes, say former bankers.
August 27, 2008

In Chief Compliance Slots, AML Officers Have Appeal and Hurdles
For the seasoned anti-money laundering compliance officer, experience and good luck can mean a higher salary and a foray, via promotion, into the larger world of general financial compliance, say consultants. The caveat: the same skills that opened doors can hinder performance, they say.
August 26, 2008

Chinese Bank Faces Lawsuit for Alleged Terrorist Transactions
Over 100 victims of Israeli terrorist attacks are suing one of China’s largest banks for knowingly wiring millions of dollars to two blacklisted terrorist groups, even after Israeli counterterrorism agents commanded the institution to stop.
August 25, 2008

Skimping on AML Training Could Be Costly Compliance Cutback, Say Compliance Professionals
As the general knowledge of anti-money laundering compliance has risen in recent years, financial regulators have expected their financial institutions to place greater emphasis on training, say compliance consultants.
August 22, 2008

A Toronto-based non-profit group raised money in Canada and moved the funds through five separate Canadian banks to fund terrorists in Sri Lanka, the Royal Canadian Mounted Police said in a report made public Monday.

Weapons proliferators have successfully duped dozens of banks into processing transactions tied to WMD technologies, but the transactions are nearly impossible for the institutions involved to detect, says a global AML watchdog.

NEWS ROUNDUPView All



Lenders can't forget consumer rights
Hampton Roads Daily Press (8/28/2008)

An increase in consumer complaints over the cancellation or reduction of home equity lines of credit has prompted one federal banking regulator to remind financial institutions about the laws governing this loan. The Office of Thrift Supervision, which

Growth rate revised upward
MarketWatch (8/28/2008)

The U.S. economy grew at a 3.3% real annual pace in the April-June quarter, the fastest pace in since the third quarter of last year, the Commerce Department reported Thursday. This was almost double the initial 1.9% estimate reported last month Final

Report: FDIC May Borrow Money From Treasury
MoneyNews.com (8/28/2008)

FDIC Chairman Sheila Bair said she wouldn't rule out the possibility that the FDIC may need to tap into lines of credit with the Treasury because of the increase in the number of troubled banks. The Federal Deposit Insurance Corp (FDIC) might have to

FDIC : U.S. Problem Banks Rise to 117 From 90
MoneyNews.com (8/28/2008)

WASHINGTON -- The number of problem banks on a regulatory watch list increased to 117 by the end of the second quarter from 90 at the end of the first quarter, the Federal Deposit Insurance Corp said Tuesday. The combined assets of the problem banks

SEC sets out multiyear plan that could lead to the use of International Financial Reporting Standards by U.S. issuers
Investment Executive (8/28/2008)

The U.S. Securities and Exchange Commission has voted to publish for public comment a proposed roadmap that could lead to the use of International Financial Reporting Standards by U.S. issuers beginning in 2014.The SEC said it would make a decision in

Orders for Durable Goods in U.S. Unexpectedly Gain
Economycom (8/28/2008)

Aug. 27 (Bloomberg) -- Orders for U.S. durable goods unexpectedly increased in July, indicating that growing demand from abroad is still helping companies weather a slump in domestic spending. The 1.3 percent gain in bookings of goods meant to last