Banking Report Index-Summary

DATA SECURITY

– AIG Japan insurance unit reports major outbreak of credit card misuse by 3rd parties, 93:204
– Cloud computing service providers, personal and corporate sensitive information moved to contractor servers may result in different requirements, report says, 92:505
– Compliance with data protection rules continues to challenge companies, survey finds, 92:334
– Credit unions, NCUA warns of bogus letter with fraudulent training CDs, 93:400
– Cybercrime

– – DOJ says cybercriminals targeting PINS and prepaid payroll cards, 92:1001
– – House Homeland Security panel asks payment card industry about effectiveness of self-regulatory standards, 92:795

– Denmark, fears of malware leads to suspension of thousands of online banking accounts, 92:455
– Enforcement policy, FTC to ensure proper protection of consumer personal information, Leibowitz says, 92:697; attorneys say industry guidance should be sustainable model for future actions, 92:698
– Fannie Mae, former contract worker indicted for allegedly attempting to destroy all data on all servers (D.C. Md.), 92:279
– Goldman Sachs computer programmer charged with stealing proprietary software code (S.D.N.Y.), 93:70
– Heartland Payment Sys. breach

– – Banks file putative class action complaints to recoup cost of replacing compromised credit and debit cards (D.N.J.), 92:443; Heartland Payment Sys. faces nearly $32M in pretax expenses related to data breach, 93:282
– – Credit unions and banks file class action seeking damages and cost reimbursement (S.D. Tex.), 93:697

– Hill Watch, 92:957
– Liability

– – Heartland Payment Sys. breach

See Heartland Payment Sys. breach, this heading

– – N.J. lawmakers seeking to expand data breach provisions, 92:265
– – Wash. lawmakers considering retailer responsibility for costs associated with data breaches, 92:265

– National standards

See LEGISLATION, FEDERAL, HR 1319, HR 2221, S 1490

– Outlook 2009, legislation likely to face big challenges, 92:115
– PCI DSS, commonly accepted credit card industry rule last updated in late 2008, 92:795; standards council issues wireless transmission guidance, 93:140
– Personal data breach notification

– – Heartland Payment Sys. discovers malware that may have compromised payment card accounts, 92:192; SEC filing shows pretax expenses directly related to data breach, 92:1107
– – Mo. enacts state law on protected information that includes health data, 93:238
– – National standard, FTC and DOJ call on Congress to enact legislation, 92:1425
– – Rocky Mountain Bank suit against Google over g-mail account involved in data breach dismissed (N.D. Cal.), 93:643

– Research, financial institutions should assume that all personal information of clients and prospective clients compromised, report says, 92:1425
– Rocky Mountain Bank, court rejects bid to seal complaint and other court filings in connection with breach of customer information (N.D. Cal.), 93:584
– Spam watchdog network seeks assistance from banks and automated clearinghouse vendors to identify hackers, 93:350
– Statistics

– – Organized crime seeking PINs, Verizon Business says, 92:936
– – Reported data breaches in 2008 up 47 percent from 2007, Identity Theft Resource Ctr. says, 92:74

– Surveys, Me. bank regulators find data breaches expensive and time-consuming, 92:74
– TJX data breaches, firm agrees to pay fine to group of state AGs to end investigation (Mass. Super. Ct.), 92:1496
– UK fines HSBC $5.2M for failing to protect customers' confidential information adequately, 93:203
– Use of customer information

– – N.J. lawmakers considering restrictions on banks, 92:265
– – N.Y. lawmakers considering new restrictions and obligations on banks and other financial institutions, 92:265

DEBIT CARDS

– Canada, lawmakers reject competition with Interac among issuers' payment systems, 93:87
– Data security, Heartland Payment Sys., 2 banks file putative class action complaints to recoup cost of replacing compromised credit and debit cards (D.N.J.), 92:443; Heartland Payment Sys. faces $32M in pretax expenses related to data breach, 93:282

DELAWARE

– Corporate governance, state measure concerning proposed amendments to state law to be introduced soon, 92:581

DELINQUENCIES

– Consumer credit, American Bankers Ass'n bulletin, 3rd quarter 2008, 92:71; 2nd quarter 2009, 93:625
– Mortgages, delinquency rate hits record high in 2nd quarter of 2009, Mortgage Bankers Ass'n finds, 93:344; commercial and multifamily rates continue to increase in 2nd quarter of 2009, 93:431; soaring rates among commercial mortgage-backed securities and commercial real estate loans confirm impact of slump on sector, 93:501

DENMARK

– Banking rescue package, new bank lending facility to make additional $17.2B in loans available while new supervisory requirements introduced, 92:211; European Comm'n approves plan, 92:355
– Data security, fears of malware leads to suspension of thousands of online banking accounts, 92:455

DEPOSIT INSURANCE

– Basel Comm. and IADI issue final version of joint voluntary guidelines, 92:1452
– Deposit Insurance Fund (DIF)

– – Emergency assessment, bank groups offer alternatives to FDIC plan, 92:784; banks keep close eye on FDIC proposed basis points, 92:1141; FDIC approves 5 basis point assessment on assets minus capital, 92:1191
– – Line of credit with U.S. Treasury, FDIC may use to replenish fund, 93:512
– – Quarterly Banking Profile, FDIC reports rapidly shrinking balance and falling bank profits for first quarter 2009, 92:1249
– – Restoration, FDIC board approves plan with increase in assessments and authorized special assessment, 92:469; board votes to impose surcharge on new debt, 92:666; bankers urge FDIC to consider alternatives, 93:558; FDIC board of directors adopts requirement for prepaid assessments, 93:631
– – Risk-based fees and premiums

See LEGISLATION, FEDERAL, HR 2897

– Failed banks, FDIC board approves proposed rule to clarify interest rate restrictions, 92:249
– Higher credit limit extension

– – FDIC asks Congress for expanded credit and fee authority, 92:317
– – Financing FDIC borrowing authority should come from big banks, community banks say, 92:667
– – House measure

See LEGISLATION, FEDERAL, HR 786

– – Senate measure, Dodd (D-Conn) developing plan to increase borrowing authority, 92:535; industry groups express concern that measure will not progress swiftly, 92:615

– HOPE for Homeowners loan modification program

See LEGISLATION, FEDERAL, HR 703, HR 787

– International working group efforts to develop “core principles” for effective systems commendable, FDIC says, 92:689
– Nonbank institutions, lawmakers consider expanded FDIC authority to “unwind” firms posing systemic risk to broader financial system, 92:666; Bair calls for authority to resolve failing nonbank firms, 92:786
– Regulatory reform, Dugan calls for dedicated prudential supervisor responsible for monitoring day-to-day operations, 92:786

DERIVATIVES

– Accounting

– – Embedded derivatives

See Embedded derivatives accounting, this heading

– – Equity-versus-liability classification of rights, IASB issues proposed rules on, 93:297

– Certainty for financial sector, Chilton outlines several steps to help create stability, 92:275; Peterson (D-Minn) says CFTC best choice to oversee clearing of OTC derivatives, 92:335
– Clearing, Hill Watch, 92:957
– Clearinghouses

– – Gensler calls moving all standardized swaps contracts through regulated facilities “critical” requirement, 93:798
– – Hill Watch, 93:478

– Credit default swaps

See CREDIT DEFAULT SWAPS (CDS)

– Embedded derivatives accounting

– – Bifurcation, FASB proposed guidance to clarify issues, 92:135; FASB shortens comment period, 93:689; FASB issues revised proposal to tighten use of exception, 93:730
– – FAS 133 scope exceptions, FASB to narrow and re-expose proposed guidance, 92:1316
– – FAS 155 scope exception of FAS 155, FASB to defer effective date of proposed implementation date, 92:561
– – Reassessment, IASB publishes proposals to make post-implementation amendments to IFRC 9, 92:295
– – Recognition and measurement of financial instruments, IASB seeking public comment on emergency amendment to IAS 39, 92:40; EU securities regulators offer comments, 92:93; IASB confirms no changes with respect to day-one gains or losses, 92:450; IASB publishes final effective version of amendment, 92:640; tensions flare after IASB refuses to follow FASB revisions, 92:1072; Basel Comm. on Banking Supervision releases several recommended improvements, 93:406
– – Scope exception of FAS 155, FASB to defer effective date of proposed implementation date, 92:561

– European Union, OTC market

– – Counterparty clearing of credit contracts, European Comm'n to propose regulatory framework, 92:157
– – Risk management, European Comm'n outlines 4 available options, 93:86
– – Standardized contracts, European Comm'n outlines plan to impose requirements on clearing and fees, 93:813

– Mutual funds, SEC official highlights growing use of derivatives, 92:931
– Nasdaq Group subsidiary launches OTC interest rate swap clearinghouse, 92:73
– OCC report on bank activities, 3rd quarter 2008, net current credit exposure increased 7 percent, 92:15; 2nd quarter 2009, 93:570
– OTC market

– – Bankruptcy, CFTC proposal to create new account class in case of future commission merchant's insolvency, 93:338
– – Bilateral collateralization, banks to be required to hold more collateral under global agreement, 93:746
– – Clearing arrangements

– – – BIS and IOSCO agree to set up expert working group to examine application of trading recommendations, 93:199
– – – Use of central counterparty clearing facilities to help mitigate systemic risk but does not constitute “silver bullet,” Overdahl says, 93:274

– – Coordination between EU and U.S. likely to ensure goals met despite differences in regulatory approach, 93:593
– – Enforcement policy, CFTC and SEC need expanded authority for effective oversight, agencies say, 93:734
– – Infrastructure, major market participants and federal and state regulators to continue working on improvements, 92:812
– – Inter-dealer brokers form association to promote industry and lobby Congress, 93:134
– – Key House committees present outline of plans for legislation, 93:233; Frank (D-Mass) circulates discussion draft of regulation measure, 93:639
– – Mandatory reporting of trades, Schumer (D-NY) announces plan to propose central repository for information collection, 93:274
– – Regulatory reform, Treasury Dep't publishes draft measure to bring oversight and transparency to market sector, 93:324; House committee likely to use draft, 93:526; further action, see LEGISLATION, FEDERAL, HR 3795
– – Tax on transactions

See LEGISLATION, FEDERAL, HR 3153

– Oversight

– – CFTC to attempt dual oversight of swaps dealers and markets, Gensler tells Senate panel, 92:1319
– – McMahon (D-NY) measure to require registration of broker-dealers and to split regulatory duties between SEC and CFTC, 93:180

– Regulatory policy

– – Bair agrees with need for greater transparency and exchange mechanisms with central clearing, 92:1156
– – Comprehensive Derivatives Regulation Act, Reed (D-RI) introduces measure to require standardization of contracts and other improvements, 93:574
– – Loopholes, Gensler remains concerned about possible dealer workarounds, 93:574
– – Obama administration urges Congress to provide SEC and CFTC with authority over markets, 92:1148

– Regulatory reform, financial regulatory system overhaul, Geithner introduces Obama administration plan based on minimizing custom derivatives, Special Report, 93:96; Gensler asks key legislators to “enhance” draft language, 93:322
– Risk management, major banks voluntarily agree to implement best practices to improve transparency and reduce systemic risk in OTC market, 92:1317
– Russia, lawmakers approve measure to amend tax legislation to support markets, 92:1289
– Swap dealer hedging exemptions, CFTC seeking comment on recommendations to review elimination option, 92:751

DEVELOPING COUNTRIES

– Emerging markets, best bet to build domestic financial markets, BIS warns, 92:355

DISCLOSURE

– Accounting

See ACCOUNTING

– Asset-backed securities, IOSCO publishes guidance for regulators seeking to improve regulation of disclosure, 93:36
– Credit cards

– – Attorney payments, D.C. allows earned fees and retainers as long as client gives informed consent, 92:1277
– – Cardholder rights, OCC tells national banks to clarify rights under new law for customers, 93:387

– Executive compensation

– – Best practices, alternative summary compensation tables making comeback in proxy statements, 92:503
– – SEC proposal, companies need to start planning for final rules likely to take effect for 2010 proxy season, speakers tell conference, 93:334
– – TARP, SEC reviewing disclosures to shareholders on Merrill Lynch bonus payments, 92:921

– Failed banks, Columbian Bank and Trust, FDIC employee indicted on charge of disclosing confidential information (D. Kan.), 93:700; employee allegedly disclosed borrower's identity, income, and tax return, 93:744
– Fair value measurement

See FAIR VALUE MEASUREMENT

– GLB Act, nonpublic personal information, federal law supersedes state disclosure notice order (Wash. Ct. App.), 92:153
– HELOC, FRB proposes Regulation Z changes to highlight potentially risky features, 93:171
– Lease-in/lease-out (LILO) transactions, IRS settlement strategies exempt from disclosure under FOIA (D.C. Cir.), 92:940
– Mortgages

– – Cost information, FRB approves final rule ensuring that consumers receive data earlier in loan process, 92:1099
– – Regulation Z changes, FRB proposes to highlight potentially risky features, 93:171

– Sweep accounts, FDIC clarifies rule on requirements for certain accounts used during failed bank resolution, 93:65
– TARP, Towns (D-NY) calls on Treasury Dep't to release more data on use of funds, 93:168; Barofsky voices continued opposition to Treasury Dep't decision not to require disclosure of fund use, 93:217; Treasury Dep't withdraws request for DOJ opinion on Barofsky's independence, 93:428
– Tax havens

See generally TAX HAVENS

– TILA

– – Preemption provision only supersedes state laws relating to format, content, manner, or substance of disclosures (U.S., rev den), 92:200
– – Regulation Z amendment exempts employer-sponsored retirement plan loans from disclosure requirements, 92:559

– UBS disclosure of U.S. taxpayer identities

See SWITZERLAND

– UK, top executives of banks and other big financial institutions should report renumeration packages and face deferred bonuses, report says, 93:149

DISCRIMINATION

– Mortgages

– – Golden Empire Mortgage and owner alleged violated ECOA by charging Hispanic customers higher prices for loans than non-Hispanic white customers (C.D. Cal.), 92:1175
– – N.Y. AG announces 2 settlement agreements and launch of another suit involving allegedly higher fees for minority borrowers, 92:84

– Reverse redlining, OCC and FDIC regulators express concern with phenomenon, 93:725; Braunstein calls for better consumer education, 93:784

DISTRICT OF COLUMBIA

– Auto title loans, Loan Max and CashPoint agree to refund all interest paid by car owners and to return seized cars, 92:1168

DIVIDENDS

– Bank holding companies, FRB warns boards not to pay dividends in face of falling earnings, 92:479