Financial Update (July-September 2001)

Masthead

Cover Story

2000 Annual Report

Consumer Finance

Board Changes

Circular Letters

Identity Theft

Credit Scoring

DEPARTMENTS

Did You Know?

Data Bank

The Docket

T he following is a summary of recent Federal Reserve actions or announcements. Circular letters dated May or later are available online at www.frbatlanta.org/bank_info/circulars/index.html.


March 1 The Federal Reserve Board published a final rule amending Regulation E to implement provisions of the Gramm-Leach-Bliley Act requiring disclosure of automated teller machine fees. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010301.

March 13 The Federal Reserve Board published revisions to the Regulation E Official Staff Commentary. The revisions became effective March 15, 2001; however, the mandatory compliance date is Jan. 1, 2002. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010313.

March 14 The Federal Reserve Board, the Federal Deposit Insurance Corp. (FDIC), the Office of Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) announced that any final Fair Credit Reporting Act (FCRA) rule will not require depository institutions to revise Gramm-Leach-Bliley Act privacy notices prepared in reliance on existing FCRA law and delivered to consumers before next January. The press release and notice are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/200103142.

March 23 The Federal Reserve Board issued supervisory guidance encouraging large banking organizations to enhance their public disclosures by using the recommendations of the Working Group on Public Disclosure. The release and guidance are available at www.federalreserve.gov/boarddocs/press/general/2001/20010323.

March 29 The Federal Reserve Board published interim final rules to establish uniform standards for the electronic delivery of federally mandated disclosures under five consumer protection regulations: B, E, M, Z and DD. The press release and rules are available at www.federalreserve.gov/boarddocs/press/boardacts/2001/20010329.

April 9 The Federal Reserve Board, the FDIC, the OCC and the OTS issued guidance concerning sound risk management practices for institutions engaged in leveraged financing. The press release and guidance are available at www.federalreserve.gov/boarddocs/ press/general/2001/20010409.

May 2 The Federal Reserve Board is seeking public comment on a proposed new Regulation W implementing sections 23A and 23B of the Federal Reserve Act. Separately, the Board, as required by the Gramm-Leach-Bliley Act, approved an interim final rule, under sections 23A and 23B, requiring institutions to adopt policies and procedures designed to monitor, manage and control credit exposures arising from derivatives transactions with affiliates and intraday credit extensions to affiliates. The interim rules are effective Jan. 1, 2002. Also, the Board has approved a final rule granting exemptions from and providing interpretations of section 23A. The rule is effective 30 days after publication in the Federal Register.

May 4 The Federal Reserve Board issued a final rule granting exemptions from and providing interpretations of section 23A of the Federal Reserve Act. The final rule became effective June 11, 2001.

May 11 The Federal Reserve Board, the FDIC, the OCC and the OTS issued an advisory on the risks of brokered and other rate-sensitive deposits. The agencies warn that excessive reliance on these types of funding products without proper risk management safeguards has the potential to weaken an institution’s financial condition.

June 28 The Federal Reserve Board, the FDIC and the OTS issued the host state loan-to-deposit ratios that the banking agencies will use to determine compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios update data released on March 23, 2000.

July 2 The Federal Reserve Board, the OCC and the FDIC wrote a letter to the Securities and Exchange Commission (SEC) concerning the SEC’s interim final rules to implement provisions of the Gramm-Leach-Bliley Act that provide specific exemptions from the broker and dealer definitions that permit banks to continue providing trust, fiduciary and other specified traditional banking products and services.

July 19 The Federal Reserve Board, the FDIC, the OTS and the OCC announced the commencement of a review of their regulations implementing the Community Reinvestment Act (CRA). In connection with the review, the federal bank and thrift regulatory agencies seek comments on a wide range of issues related to the CRA regulations and welcome comments discussing other aspects of the CRA regulations, including ways to improve the efficacy of the regulations. Comments to the Board of Governors must be received by Oct. 17, 2001, should refer to docket number R-1112, and should be addressed to Ms. Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Ave., N.W., Washington, D.C. 20551. Comments may be e-mailed to regs.comments@federalreserve.gov.