Financial Update (April-June 2001)

Masthead

Cover Story

Subprime Lending Guidance

Economics of Checks

Greenspan on Lending

Retail Banking Fees

ATM Fee Disclosure

DEPARTMENTS

Did You Know?

Data Bank

The Docket

T he following is a summary of recent Federal Reserve actions or announcements. 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.


Jan. 10 The Federal Reserve Board and the Secretary of the Treasury approved a joint final rule governing the merchant banking activities of financial holding companies. The rule became effective Feb. 15. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010110.
Circular Letter 511-01

Jan. 12 The Federal Reserve Board and the Secretary of the Treasury found that subordinated debt issuance by large depository institutions may encourage market discipline and generate other supervisory benefits. The joint report indicated that the Board, the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) will consider ways to enhance their use of voluntarily issued subordinated debt in supervisory monitoring. The Board and the Secretary of the Treasury, however, are not currently recommending that Congress make subordinated debt issuance mandatory. The press release and report are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010112.
Circular Letter 515-01

Jan. 16 The Federal Reserve Board, the FDIC and the OCC will accept public comments on a major proposal by the Basel Committee on Banking Supervision to amend the 1988 international capital adequacy framework. The full document is available on the Web site of the Bank for International Settlements at www.bis.org/press/p010116.htm. Comments are requested on the proposal by May 31, 2001, and may be sent to the U.S. banking agencies and to the Basel Committee. The press release is available at www.federalreserve.gov/boarddocs/press/general/2001/20010116.
Circular Letter 512-01

Jan. 16 The Federal Reserve Board issued guidance designed to assist financial institutions in applying enhanced scrutiny to transactions that may involve the proceeds of foreign official corruption. The release and guidance letter are available at www.federalreserve.gov/boarddocs/press/general/2001/200101162.
Circular Letter 513-01

Jan. 17 The Federal Reserve Board, the FDIC, the OCC and the OTS sent the Federal Register joint guidelines for safeguarding confidential customer information. The guidelines implement section 501(b) of the Gramm-Leach-Bliley Act and will be effective on July 1, 2001. The press release and guidelines are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010117.
Circular Letter 517-01

Jan. 19 The Federal Reserve Board and the Secretary of the Treasury approved a final rule establishing the alternative criteria that certain large banks may satisfy in order to control a financial subsidiary under the Gramm-Leach-Bliley Act. The final rule became effective 30 days after publication in the Federal Register. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010119.
Circular Letter 518-01

Jan. 23 The Federal Reserve Board released an interagency summary of the Basel Committee on Banking Supervision’s consultative proposal issued to the public on Jan. 16, 2001. The press release and summary are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010123.
Circular Letter 520-01

Jan. 31 The Federal Reserve Board, the FDIC, the OCC and the OTS issued expanded guidance intended to strengthen the examination and supervision of institutions with significant subprime lending programs. The press release and supervisory letter are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010131.
Circular Letter 522-01

Feb. 21 The Federal Reserve Board and the Department of the Treasury announced an extension of the deadline, through May 1, 2001, on their request for comment on whether real estate brokerage and real estate management are activities that are financial in nature or incidental to a financial activity and therefore permissible for financial holding companies and financial subsidiaries of national banks. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010221.
Circular Letter 523-01

Circular Letters Now Available Online
Circular letters from the Federal Reserve Bank of Atlanta are now available online at www.frbatlanta.org/bank_info/circ_router.cfm. Circular letters provide information on Federal Reserve proposals out for comment, final rules, payment system regulatory information, changes in the discount rate, supervisory announcements, and so forth.

Printed circular letters from the Atlanta Fed will be sent to existing subscribers through the end of June 2001; after that date, circular letters will be available only online.

See the next issue of Financial Update for more information about circular letter e-mail notification.