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Contact: Michael Stevens
July 3, 2008 FDIC Gives Guidance on Disposal of Other Real
Estate
With the weakness in the housing market and rising foreclosures, FDIC
reminded bankers on July 1 of their responsibilities for acquiring,
holding, and disposing of other real estate. The agency said a
bank’s policies and procedures should ensure that the
institution’s interests in the ORE are protected, while mitigating
the impact on the value of surrounding properties. Some of the steps
outlined in the guidance included: obtaining a new or updated valuation
of the property that complies with state law requirements; maintaining
and protecting the property to maximize the recovery value; and properly
accounting for the value of the property during the acquisition, holding
and disposition phases. More information
July 3, 2008 FTC to Study Experiences of Identity Theft
Victims
The Federal Trade Commission plans to study the experiences of identity
theft victims by conducting a survey of consumers who contacted the
agency after they were victimized. The survey would examine the remedies
available to victims under the Fair and Accurate Credit Transactions Act
of 2003. Among other things, the law gave consumers the right to place
fraud alerts on their credit files if they are, or suspect they may
become, victims of identity theft; block information on their credit
reports that resulted from identity theft; and obtain free copies of
their credit reports. The survey would seek information from identity
theft victims who contacted FTC between Jan. 1 and May 30, 2008, and
would inquire about their experiences when they contacted one or more
credit reporting agencies; and when they sought to use their legal
rights. The agency plans to use the survey results to guide efforts to
enforce the law and educate consumers and the consumer reporting
industry about their rights and duties. More
information
July 1, 2008 International Report Examines Financial Market
Turmoil
The fundamental cause of problems in the global economy is
excessive and imprudent credit growth over a long period, according to
an annual report published on June 30 by the Bank for International
Settlements. BIS said the experience of the recent financial turmoil
showed the need for a new macrofinancial stability framework with a
primary focus on systemic issues and a much more countercyclical use of
policy instruments. The report also called for closer cooperation
between the central banking and regulatory communities in trying to
identify the build-up of systemic risks, deciding what to do to mitigate
them, and agreeing in advance on steps that might be taken to manage
periods of stress. BIS General Manager Malcolm Knight noted that
“central banks face a difficult dilemma because inflation
pressures have come to the surface just when downside risks to growth
have increased.” Another area that must be considered is how
central banks should provide liquidity to banks and their role in
financial system oversight. “The BIS looks forward to working
closely with both central banks and regulators in developing better
analytical frameworks for addressing these important questions,”
Knight said. More information
July 1, 2008 Regulators Remind Bankers of Call Reports Due in
July
Federal banking regulators reminded financial institutions that most of
them face a July 30 deadline for their June 30 Call Reports. The joint
notice by FDIC, the Federal Reserve and the Office of the Comptroller of
the Currency reminded the bankers of the new reporting items that were
previously optional, but are now mandatory. In the Call Report for
this quarter, banks must report the number and amount currently
outstanding of loans to small businesses and small farms; the number of
deposit accounts (other than retirement deposit accounts) of $100,000 or
less; and the number of retirement deposit accounts of $250,000 or
less. More information
June 30, 2008 Senators Dodd, Shelby Seek Input on Investment
Bank Regulation
Sens. Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.) sent a
joint letter to the heads of the Treasury Department, Federal Reserve
and Securities and Exchange Commission seeking to slow down any formal
agreements on reforming the regulation of U.S. financial institutions.
In the letter, Dodd and Shelby recognized the agencies’ efforts to
improve and streamline the regulatory structure, but said any formal
agreement among the agencies must not interfere with Congressional
efforts to examine the issue. The senators were reacting to published
reports that the agencies are working on a memorandum of understanding
that would provide for greater information sharing between the Fed and
SEC and expand the Fed’s oversight over investment banks with
primary dealer status. “Given the limited authority of the Fed and
the SEC to regulate investment banks with primary dealer status, and
Congress’s ultimate responsibility for formulating financial
regulatory policy, we ask that no action regarding implementation of the
[memorandum of understanding] be taken before we can determine that it
is in the best interests of our nation’s economy and the well
being of its citizens,” the senators said. More information
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