Financial Update (July-September 1999)
| he 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 the circular letter may not be the same as the Federal Reserve Board announcement.
March 16 The Federal Reserve Board amended its Policy Statement on Payment System Risk to modify the procedures for measuring daylight overdrafts for net settlement entries processed through the enhanced settlement service. The amendment became effective March 29, 1999.
March 23 The Federal Reserve Board, acting along with the FDIC, the OCC and the OTS, announced withdrawal of its proposed "Know Your Customer" regulation that was issued for public comment on Dec. 7, 1998.
March 23 The Federal Reserve Board announced final amendments to Regulation CC. The amendments will allow banks that consummate merger transactions on or after July 1, 1998, and before March 1, 2000, greater time to implement software changes related to the merger. The extension of the merger transaction period will enable merged banks that were Year 2000 compliant to be treated as separate entities and to delay merging their systems until after the key century rollover and leap year events of Year 2000. A copy of the final rule is available on the Board of Governor's Web site at www.bog.frb.fed.us/boarddocs/press/BoardActs/1999/199903232.
March 31 The Federal Reserve Board announced revisions to its Regulation Z (Truth in Lending) official staff commentary, which applies and interprets the requirements of the regulation. The revisions are effective immediately, but compliance is optional until March 31, 2000. The revisions provide guidance on the prohibition against the issuance of unsolicited credit cards and on calculating payment schedules involving private mortgage insurance. The revisions also discuss credit sale transactions in which down payments include cash and property used as a trade-in and adopt several technical amendments. (For more detailed information on these revisions, see the article on page 3.)
March 31 The Federal Reserve Board announced revisions to its Regulation M (Consumer Leasing) official staff commentary, which applies and interprets the requirements of the regulation. The revisions are effective immediately, but compliance is optional until March 31, 2000. The revision provides guidance on disclosures for lease renegotiations and extensions, official fees and taxes, multiple-item leases and advertisements.
Apr. 19 The Federal Reserve Board, the FDIC and the OCC adopted a joint final rule amending the risk-based capital standards for market risk applicable to certain banks and bank holding companies with significant trading activities. The final rule, which is effective July 1, 1999, includes amendments to Regulations H and Y. A copy of the joint final rule is available on the FDIC's Web site at www.fdic.gov/lawsregs/fedr/99325r.txt.