Financial Update (April-June 1998)
The following is a summary of recent Federal Reserve actions. To obtain a copy of any of these announcements, contact the Atlanta Fed Service Department at (404) 498-8474. Please give the docket number or circular letter number (if applicable) when calling to request a copy. The date on a circular letter may not be the same as the Federal Reserve Board announcement.
On Jan. 5, the Federal Reserve issued the final report and recommendations of its Committee on the Federal Reserve in the Pay-ments Mechanism, chaired by Federal Reserve Vice Chair Alice M. Rivlin. The committee was appointed by Fed Chair Alan Greenspan in October 1996 to examine the payment services provided by the Federal Reserve to depository institutions in recognition of the rapid changes occurring in financial services and technology. Circular letter 505-98.
The Federal Reserve Bank of Atlanta on Feb. 6 announced the addition of Operating Circular Number 9 (Federal Tax Payments and Treasury, Tax and Loan Depositories). This circular was delayed for inclusion in the Atlanta Fed's new operating circulars issued in late 1997 pending the Treasury's issuance of a revised regulation governing the TT&L Program (31 CFR Part 203). The revised regulation was published in the Federal Register on Feb. 3. The regulation (and the Atlanta Fed's Operating Circular Number 9) became effective March 5. Circular letter 507-98.
On March 9, the Federal Reserve Board issued its 1998 Trading and Capital-Markets Activities Manual for examiners and banking organizations. The new manual represents a substantive revision and expansion of the Trading Activities Manual issued in March 1994. Circular letter 101-98.
On March 10, the Federal Reserve Board 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 further rule changes to reduce legal disparities between the Federal Reserve Banks and private-sector banks in the presentment and settlement of checks. Comment is due to the Board on or before July 17. Refer to docket number R-1009. Circular letter 510-98.
On March 13, the Federal Reserve Board 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 due to the Board on or before May 29. Refer to docket number R-1008 for Regulation B and docket number R-1001 for Regulation C. Circular letter 513-98.
The Federal Reserve Board on March 24 issued a clarification to the operating standards relating to customer disclosures of section 20 subsidiaries of bank holding companies. The clarification went into effect March 27. Circular letter 515-98.
On March 26, the Federal Reserve Board voted to move from a system of contemporaneous reserve requirements to one in which reserves are maintained on a lagged basis. The change will go into effect with the reserve maintenance period beginning July 30, 1998. Circular letter 516-98.
On March 30, the Federal Reserve Board, along with the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision, issued a final rule to expand the examination frequency for certain financial institutions. The rule went into effect April 2. Circular letter 517-98.
The Federal Reserve Board on March 31 published revisions to its official staff commentary to Regulation Z (Truth in Lending). The revisions became effective March 31. Compliance is optional until Oct. 1. Circular letter 519-98.
On April 1, the Federal Reserve Board amended some of its model forms related to Regulation B (Equal Credit Opportunity) to reflect changes to disclosures required by recent amendments to the Fair Credit Reporting Act. The new model forms went into effect April 30. Circular letter 520-98.