Magazine article American Banker

Regulatory Roundup: Recent Action

Magazine article American Banker

Regulatory Roundup: Recent Action

Article excerpt

TRUTH-IN-LENDING: The Fed adjusted for inflation the dollar amount of fees and points that trigger additional Truth-in-Lending Act disclosures. Lenders must make the extra disclosures if fees and points exceed the greater of $441 or 8% of the loan's value. Published Dec. 2. Effective Jan. 1.

DERIVATIVES: The Office of Thrift Supervision approved a rule permitting thrifts to invest in derivatives, provided the transactions are legal and meet safety-and-soundness standards. The rule also required boards of directors to draft written derivatives policies and periodically check to make sure they are being honored. Published Dec. 1. Effective Jan. 1, but a thrift may choose to comply as early as Dec. 1.

CONVICTS: The Federal Deposit Insurance Corp. amended its policy on financial institutions' right to hire people who have been convicted of crimes. Though banks still must seek approval from the FDIC, job applicants with only one conviction who served no jail time may, under certain circumstances, be hired. Published and effective Dec. 1.

ELECTRONIC COMMERCE: The OTS approved a rule that will make it easier for thrifts to engage in electronic commerce. The policy states that thrifts may do anything electronically that they already do by traditional means. However, they must notify the agency 30 days before launching a transactional Web site. Published Nov. 30. Effective Jan. 1.

LOAN LOSSES: Bank and thrift regulators and the Securities and Exchange Commission on Nov. 24 issued a joint statement on how banks should determine the proper amount of loan-loss reserves to hold. …

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