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