Banking Report Index-Summary

MAINE

– Data security, state bank regulators find data breaches expensive and time-consuming, 92:74

MARKETING

– Credit card reforms

– – Dodd (D-Conn) introduces measure to limit rate increases, fees, and penalties, and establish new marketing restrictions, 92:379
– – Schumer (D-NY) and Maloney (D-NY) to reintroduce measure with 90-day deadline, 92:130

– RALs, H&R Block to pay $4.85M to settle state suit over allegedly deceptive marketing (Cal. Super. Ct.), 92:87
– Subprime mortgages, Countrywide Financial agrees to pay settlement in deceptive marketing suit (Colo. Dist. Ct.), 92:393

MARYLAND

– Consumer protection, owner of debt settlement firm jailed for refusing to abide by cease operations order, 93:293
– Data security, former Fannie Mae contract worker indicted for allegedly attempting to destroy all data on all servers (D.C. Md.), 92:279
– Failed banks

– – Bradford Bank, OTS closes Baltimore thrift and names FDIC as receiver with buyer in place to reopen institution, 93:392
– – Suburban Fed. Savings Bank, Bank of Essex set to reopen all 7 branches, 92:266; Treasury IG finds OTS let thrift's high-risk behavior continue for 5 years, 93:525

MASSACHUSETTS

– Reserve Mgmt., state officials charge firm with making false statements about supporting net asset value of fund (Mass. Sec. Div.), 92:152
– Subprime mortgages, Goldman Sachs agrees to spend $60M to help borrowers restructure loans, 92:1167
– TJX data breaches, firm agrees to pay fine to group of state AGs to end investigation (Mass. Super. Ct.), 92:1496

MEETINGS

See CONFERENCES AND MEETINGS

MERGERS AND ACQUISITIONS

– Application processing, FRB using in-house procedures to ease BHCA bids for troubled banks, 92:911
– Bear Stearns buyout by JPMorgan Chase, Treasury Dep't replies to request from Baucus (D-Mont) and Grassley (R-Iowa) to detail agreement background, 92:803
– Eastern Financial Fla. Credit Union and Space Coast Credit Union may merge, NCUA says, 92:1493
– France, Banque Populaire and Caisse d'Epargne may merge, antitrust agency says, 92:1503
– Horizontal merger guidelines, DOJ and FTC to conduct workshops to explore updates, 93:586
– Huntsman reaches $1.7B settlement in leveraged buyout suit against Credit Suisse and Deutsche Bank (Tex. Dist. Ct.), 92:1496
– IndyMac Fed. Bank FSB, bank regulators approve sale of banking operations to IMB Mgmt. Holdings, 92:78
– Merrill Lynch acquisition by Bank of America

– – Capital Purchase Program, BoA receives $20B capital infusion to help guard against losses from Merrill Lynch assets, 92:126; Cuomo claims Paulson threatened to try to remove BoA senior management and directors, 92:986; Bernanke tells House panel he made no threats during merger negotiations, 92:1473; Paulson tells House panel that “strong message” necessary to complete acquisition, 93:127; House Oversight Comm. asks Schapiro and Bair to testify about SEC and FDIC role in deal, 93:511; BoA to provide House committee with documents from deal, 93:562; BoA releases documents to comply with outstanding information request, 93:782
– – Enforcement, Merrill Lynch still target of litigation, 93:390
– – Fraud, SEC reviewing disclosures to shareholders on Merrill Lynch bonus payments, 92:921; BoA agrees to pay $33M to settle SEC charges of misleading shareholders about executive compensation (S.D.N.Y.), 93:213; judge rejects settlement agreement, 93:290; court takes special exception to SEC failure to bring charges against individual executives, 93:383; SEC defends decision not to charge individual executives, 93:457; BoA claims statements and disclosures related to Merrill Lynch acquisition compliant with relevant rules, 93:459; Kotz to investigate settlement, 93:511; rejection of settlement will not change SEC case resolution process, 93:637
– – N.Y. AG subpoenas former Merrill Lynch CEO and current BoA CAO as part of continuing investigation into executive compensation, 92:264; Cuomo serves subpoena on BoA officials to learn names of bonus pay recipients, 92:473; TARP overseer “coordinating closely” with investigation of Merrill Lynch bonuses, 92:474; BoA fights Cuomo claims of abuse of attorney-client privilege during investigation, 93:451; Cuomo says Lewis retirement from CEO and President posts will not affect investigation, 93:636
– – Ohio AG files complaint over shareholder losses from merger (S.D.N.Y.), 93:648

– Morgan Stanley may use equity funds to boost bank stakes in Taiwan bank and Cal. subsidiary, FRB says, 92:1469
– Wachovia acquisition by Wells Fargo

– – Citigroup claims that exclusivity agreement barred Wachovia from striking separate deal rejected (S.D.N.Y.), 93:142
– – FRB allows Wells Fargo to count more deferred tax assets as capital, 92:564

– Washington Mutual takeover by JPMorgan Chase, integration of operations to result in projected workforce reduction of about 12,000 jobs, 92:495

MEXICO

– Banamex, lawmaker delays decision on legality of Citigroup control of subsidiary, 93:651; lawmakers agree to bring constitutional challenge to court, 93:703; lawmakers vote on challenge proposal, 93:747
– Stanford Fondos to be carefully examined for possible violations of national law, 92:455

MICHIGAN

– Auction rate securities, Banc of Am. Securities and Merrill Lynch to offer to buy back securities from customers who thought they were safe investments, 93:30
– Auction rate securities, J.P. Morgan Chase customers to receive full buybacks under settlement agreement, 93:693
– Failed banks, Warren Bank, state regulators close institution, 93:638
– Foreclosure, homeowners to have time and access to housing counselors to work out loan modifications under state measure, 92:1168
– Rouge Employees Credit Union being served by Chief Financial Fed. Credit Union following liquidation by state officials, 92:1166

MINNESOTA

– Failed banks

– – Brickwell Community Bank, state agency closes institution, 93:425
– – Horizon Bank, state officials close institution and name FDIC as receiver, 93:18
– – Jennings State Bank reopens as Central Bank after state regulators close both branches, 93:638
– – Mainstreet Bank, state officials close institution and name FDIC as receiver with buyer in place, 93:392
– – Riverview Community Bank, state regulators shutter Otsego institution, 93:780

– Mortgages, unsigned loan documents, mortgage upheld despite state law invalidating loan unless both spouses sign (8th Cir.), 93:143

MISSISSIPPI

– First Delta Fed. Credit Union, NCUA closes Marks institution, 93:780

MISSOURI

– Arbitration

– – Credit card agreement including binding arbitration clause with class action waiver valid and enforceable under state law (8th Cir.), 93:804

– Auction rate securities, BoA subsidiaries to provide state investors with relief and to pay fine, 92:1172
– Bank supervision, Midwest Indep. Bancshares and subsidiary agree to reduce exposure to commercial real estate market and to make changes in corporate governance, 93:436
– Class actions, NovaStar Financial, former employee alleges breach of fiduciary duties by offering stock as retirement plan option (W.D. Mo.), 92:890
– Failed banks, First Bank of Kansas City, Great Am. Bank assumes all deposits under agreement with FDIC, 93:425
– Fraud, First Bank Mortgage, former president pleads guilty to misapplying bank funds and causing loss of $35M (E.D. Mo.), 92:205
– Personal data breach notification, state enacts law on protected information that includes health data, 93:238

MONACO

– Tax havens, OECD removes from 2002 list of uncooperative jurisdictions, 92:1286
– Taxation, government prepared to accept OECD standards on transparency and information exchange, 92:714

MONETARY POLICY

– Bernanke remarks

– – FRB speech, central bank has necessary tools to rein in accommodative policies at appropriate time, 93:671
– – London Sch. of Econ. speech, financial stability crucial component of broader economic recovery, 92:129

– Commercial Paper Funding Facility (CPFF), FRB amends eligibility to exclude inactive issuers, 92:187; FRB extends program for 6 months, 92:321
– Excess balance accounts at Federal Reserve banks, FRB seeking public comment on proposed rule, 92:269
– Extraordinary lending programs

– – Declining use of FRB lending and liquidity provisions signals improved economy, 93:753
– – FRB makes wholesale changes to many, 92:1475

– Federal Open Market Comm. prepared to approve additional measures to assist U.S. economy in recovering from recession, 92:748
– FRB transparency, Hill Watch, 93:478
– Future economic crises, FRB Philadelphia president calls for “systemic” approach to preparations, 93:794
– Interest rates

See INTEREST RATES

– Japan, BOJ to continue emergency strategy as part of cooperative effort with U.S. and EU, 93:151
– Long-term Treasury Dep't securities, FRB buys $23.5B worth of debt, 92:815
– Primary Dealer Credit Facility (PDCF), FRB extends program for 6 months, 92:321
– Reverse repurchase agreements, FRB N.Y. warns market not to jump to conclusions about system tests, 93:783
– Russian central bank to limit holdings in U.S. Treasury bonds, 92:1395
– Supplementary Financing Account, Treasury Dep't plans to shrink amount of short-term bills to help ease debt ceiling concerns, 93:506
– Term Auction Facility (TAF), FRB auctions nearly $103B worth of 3-month cash loans, 92:23; demand for loans climbing, 92:269; FRB loans $112B in latest auction of short-term credit, 92:494; FRB auctions $117.9B of one-month cash loans, 92:606; FRB auctions $101.64B in 3-month cash loans, 92:752; FRB auctions $106.3B of one-month cash loans, 92:879; FRB auctions $84B of 3-month cas loans, 92:992; FRB auctions nearly $131.6B in one-month cash loans, 92:1105; FRB auctions nearly $95.6B of one-month cash loans, 92:1311; FRB auctions more than $48B of 3-month cash loans, 92:1424; FRB auctions nearly $86.4B in one-month cash loans, 93:14; FRB awards $47.77B in 84-day credit, 93:124; FRB to offer $25B less in loans per auction, 93:176; FRB auctions nearly $82.4B in one-month cash loans, 93:223; FRB to modify calculations on collateral pledges, 93:320; FRB auctions $73.4B worth of one-month cash loans, 93:396; FRB provides $31.9B in 3-month cash loans, 93:442; FRB announces new pullback in short-term credit, 93:565; demand continues to decline, 93:684; demand remains light, 93:790
– Term Securities Lending Facility (TSLF), FRB loans $28.75B in general Treasury Dep't collateral to primary dealers, 92:23; FRB extends program 6 months, 92:321; FRB schedules 4 auctions for short-term loans in July, 92:1255; FRB announces new pullback in short-term credit, 93:565

MONEY LAUNDERING

– AremisSoft ill-gotten proceeds, judge denies request to apply U.S. rules to Lloyds TSB Bank due to lack of jurisdiction (S.D.N.Y.), 93:291
– Argentina, capital repatriation law, U.S. softens criticism of controversial measure, 92:591
– Audits, IRS should coordinate efforts to examine money service businesses, GAO says, 92:692
– Computer payment processing companies' operator charged with running firms as front for handling internet gambling transactions (S.D.N.Y.), 93:292
– Corruption, 44 individuals, including 3 mayors and 5 rabbis, charged in bribery and money laundering case (D.N.J.), 93:191
– Detection, OECD releases new handbook, 93:704
– France calls for comments on draft changes to transposition of EU terrorist financing directive, 93:652
– Futures trading, CFTC and FinCEN regulators enter into information-exchange agreement on enforcement of Commodity Exchange Act and Bank Secrecy Act, 92:191
– Japan penalizes Citibank for opening alleged accounts for organized crime, 93:32
– Mortgage-related fraud

– – FinCEN making referrals to law enforcement agencies on foreclosure rescue and loan modification scams, Geithner says, 92:1147
– – Loan officer sentenced on conspiracy, money laundering, wire fraud, and false statements charges (D. Colo.), 93:294

– Russia, customs agency pursuing case against Bank of N.Y. Mellon despite earlier suggestions of out-of-court settlement, 92:294; customs agency allegedly seeking out-of-court settlement, 92:591; out-of-court settlement discussions continue, 92:637; bank's attorney predicts settlement soon, 92:952; court adjourns hearing to allow more discussions of out-of-court settlement, 92:1279; Russian officials support out-of-court settlement, 93:545
– Societe Generale agrees to design and implement policies and procedures to correct alleged deficiencies, 92:689
– Suspicious Activity Reports (SARs)

– – OCC and FinCEN proposals to clarify scope of confidential treatment, 92:553; GAO calls for more clarity by FinCEN on revisions to forms, 92:802; correction to 92:802, 92:886
– – Terrorism financing, banks filed more SARs in 2008, FinCEN says, 93:122

– Switzerland adopts FATF recommendations, 92:211
– Uruguay to keep financial secrecy laws intact despite criticism from U.S., 92:837

MONEY MARKET FUNDS

– Enforcement policy, Schapiro promises proposal to tighten restrictions soon, 92:1060
– Guaranty program, SEC considering extension of temporary relief rule, 92:381; MSRB asks Geithner to extend program, 92:572; Treasury Dep't extends temporary guaranty by nearly 5 months, 92:814; Treasury Dep't announces end of temporary emergency program, 93:508; SEC adopts interim final temporary rule to continue certain disclosure requirements, 93:572
– Liquidity

– – Asset-Backed Commercial Paper Money Market Fund Liquidity Facility (AMLF), FRB temporarily relaxes certain rules, 92:261; FRB extends program for 6 months, 92:321
– – Money Market Investor Funding Facility (MMIFF), FRB widens eligibility and adjusts some boundaries of program, 92:63; FRB extends program for 6 months, 92:321; FRB opts against renewing program, 92:1475

– Regulatory policy

– – Donohue lays out directives for review of models, 92:754
– – ICI endorses working group recommendations to strengthen rules, 92:697
– – SEC proposes rule changes to improve stability and address problems from Sept. 2008, 92:1470
– – Stabilization rules, SEC staff currently reviewing comments on proposal, Donohue says, 93:572

– Safe harbor, IRS allows investment advisers to make payments to eligible funds to maintain $1 share value, 92:14

MONEY SERVICE BUSINESSES

– Money laundering, IRS should coordinate efforts to audit entities, GAO says, 92:692
– Regulatory policy, FDIC and Wash. state agency agree to formal information sharing process, 92:559
– Remittances, Maloney (D-NY) measure likely to be marked up soon, 92:1311

MORTGAGES

– Adjustable rate loans

See ADJUSTABLE RATE MORTGAGES (ARMs)

– Applications, MBA report, week ended Dec. 19, 2008, 92:26; week ended Jan. 9, 92:149; week ended Jan. 30, 92:346; week ended Feb. 20, 92:508; week ended Feb. 27, 92:577; week ended March 6, 92:633; week ended March 27, 92:824; week ended April 2, 92:889; week ended April 10, 92:939; week ended May 29, 92:1327; week ended June 12, 92:1444; week ended July 3, 93:78; week ended July 10, 93:134; week ended July 31, 93:289; week ended Oct. 9, 93:741
– Appraisal standards, New Home Valuation Protection Code, FHFA and N.Y. AG revise agreement on tougher standards for loans backed by Fannie Mae and Freddie Mac, 92:10
– Audits, CAQ white paper outlines application of FAS 114 to modifications of residential loans that qualify as troubled debt restructuring, 92:12
– Canada, federal regulators propose rules to prohibit lenders from charging customers more than actual cost of loan insurance, 93:364
– Capital reserves, FHA will not need extraordinary taxpayer assistance, Stevens tells House panel, 93:672
– Class actions, discretion abused in certifying overtime pay suit on behalf of current and former Wells Fargo consultants (9th Cir.), 93:81
– Colonial BancGroup to cooperate with federal investigation into alleged accounting irregularities, 93:264
– Community reinvestment

– – Economic stimulus package should include incentives for firms investing in depressed areas, white paper says, 92:145
– – Statistics, CRA lenders made fewer bad loans than lenders not covered by act, study by regional banks finds, 92:378

– Congressional ethics rules, Dodd (D-Conn) and Conrad (D-ND) cleared of charges of violating gift rules by accepting favorable terms from Countrywide, 93:265
– Consumer protection, FTC to ask stakeholders for input on nonbank industry rulemaking, 92:810
– 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
– Disclosure requirements

– – 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
– – Streamlining, FRB and HUD examining ways to avoid conflicts with RESPA and TILA requirements, 93:515; trade associations ask HUD to delay implementation of good faith estimate rule, 93:738

– Discrimination

– – 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

– Down payments, FHA to allow lenders to permit first-time home buyers to use tax credit, 92:1155; FHA issues guidelines, 92:1267
– Evictions, JPMorgan Chase agrees to pay fine to settle Oakland dispute over “just cause” law (Cal. Super. Ct.), 93:83
– Fees and costs

– – Advance fees for loan modification and foreclosure rescue services, FTC considering federal ban, 93:522
– – N.Y. AG announces 2 settlement agreements and launch of another suit involving allegedly higher fees for minority borrowers, 92:84
– – Regulation Z under TILA, FRB proposes changes to bar yield spread premiums that reward brokers for steering clients to higher cost loans, 93:171

– Financial crisis, home loan data show CRA not guilty of causing crisis, Viewpoint, 92:296; CRA critic Wallison responds to Traiger & Hinkley study, 92:296
– Foreclosure

See FORECLOSURE

– Fraud

See FRAUD

– Good Faith Estimates, HUD to implement tougher RESPA rules despite calls for coordinated effort with FRB, 92:1145; HUD releases guidance to implement new rule, 93:332; NAMB fails to block implementation of rule (D.D.C.), 93:352
– Green Act

See LEGISLATION, FEDERAL, HR 2336

– Hill Watch, 92:957
– Home Mortgage Disclosure Act, 2008 data show expansion of FHA role in market, FRB preliminary research report says, 93:622
– Illegal campaign contributions, FEC dismisses complaint against Pres. Obama for Northern Trust loan, 92:572
– Insurance

– – Capital reserve fund to decline below statutory requirement of 2 percent, FHA says, 93:502
– – Enforcement policy, FHA needs to increase oversight of rapidly growing share of U.S. market, HUD auditor says, 92:69; HUD officials ask Senate panel for better computer technology and more staff, 92:811; further action, see LEGISLATION, FEDERAL, HR 3357
– – Fraud, CUNA Mutual offers first loan documentation coverage for retail credit unions, 93:288

– Interest rates

See INTEREST RATES

– Japan still affected by crisis from nonperforming loans after 13 years, 93:404
– Kickbacks and fee splitting, home buyers need not cite concrete injury to have standing to sue for RESPA violations (6th Cir.), 92:390
– Lending practices and standards

– – “Boring is effective,” Canadian attorney counsels U.S., Analysis and Perspective, 93:412
– – Overhaul

See LEGISLATION, FEDERAL, HR 1728

– Licensing and business practice standards for lenders, brokers, and loan originators

– – N.J. governor signs measure into law, 92:1120
– – Or. state lawmakers pass measure requiring loan originators to obtain license, 93:22

– Lien renewal judgments not retroactive under state law (N.Y.), 92:1173
– Metrics Report, OCC-OTS report, 4th quarter 2008, 92:793; first quarter 2009, 93:8; 2nd quarter 2009, 93:623
– Minimum down payment requirement for FHA loans, Garrett (R-NJ) introduces measure to increase level to 5 percent, 93:633
– Modification of loans

See LOAN MODIFICATION

– Multi-state exams for nonbank lenders, state regulators adopt nationwide protocol for information sharing and coordination, 93:332
– Negative amortization loans, Or. state legislature approves measure restricting loans without verifying ability to repay, 92:1325; governor signs measure, 93:22
– New Markets Tax Credit Program

– – CDFI updates announcement, In Brief, 92:822
– – House panels to explore lack of success of minority-owned entities under CRA, 92:1380

– PNMAC Capital Mgmt. (PennyMac) buys FDIC residential loan portfolio as receiver for First Natl. Bank of Nevada, 92:78
– Predatory loans, measure should be tailored to avoid overlap with HOEPA rules, FRB official says, 92:616; House lawmakers to consider measure requiring tougher underwriting standards and restrictions on nontraditional products, 92:740
– Recission, technical flaw in notice in certain mortgage refinancing documents cannot support longer deadline for borrower (1st Cir.), 92:30
– Relief measure

See LEGISLATION, FEDERAL, S 896

– REMICs

See REAL ESTATE MORTGAGE INVESTMENT CONDUITS (REMICs)

– Research, FHA loans not always safe and secure solution, FRB conference finds, 92:923
– Reverse auction of underwater loans, federal government purchase program one of many proposals at Treasury Dep't meeting, 92:373
– Reverse mortgages can provide benefits to retired homeowners but have substantial costs and are difficult to understand, GAO report finds, 93:17; McCaskill (D-Mo) to introduce measure to impose increased regulatory control and reporting requirements, 93:681
– Secondary loan market, Mortgage Bankers Ass'n council recommends public-private line of mortgage-backed securities, 93:434
– Seeds of crisis sown during 2004-2007, GAO finds, 93:269
– Subprime loans

See SUBPRIME MORTGAGES

– Switzerland eases capital rules for bond issuers to unblock lending freeze, 92:451
– Tax credit for first-time home buyers, N.Y. residents to be eligible for federal income tax credit under mortgage credit certificate program, 93:342
– Taylor, Bean & Whitaker Mortgage ceasing loan origination operations after temporary suspension from FHA and Ginnie Mae programs, 93:270
– Transaction reporting requirements, FinCEN seeks comment on plans to expand rules to nonbank lenders and originators, 93:122
– Unsigned loan documents, mortgage upheld despite Minn. statute invalidating loan unless both spouses sign (8th Cir.), 93:143

MUTUAL FUNDS

– Midnight regulations, SEC initiatives may be subject to Pres. Obama's freeze on rulemaking, 92:190
– Money market funds

See MONEY MARKET FUNDS

– Regulatory reform, ICI reform proposal calls for federal regulators to oversee systemic risk and capital markets, 92:574
– Reserve Fund, state regulators claim failure to redeem investments made by local government at $1/share (Colo. Dist. Ct.), 92:152
– Reserve Management

– – SEC files securities fraud charges against firm and top officials for failing to tell investors and trustees of fund's vulnerability (S.D.N.Y.), 92:1124
– – State officials charge firm with making false statements about supporting net asset value of fund (Mass. Sec. Div.), 92:152

– Switzerland aligns collective investment rules with EU minimum requirements, 92:294
– Wachovia units to pay FINRA fine for violations in sales, 92:381