Dodd-Frank News Center

ICE Trust Not Subject to Management Interlocks

This story appeared in Bank Digest.

The Federal Reserve Board has issued an interpretation determining that management interlocks between ICE US Trust LLC and unaffiliated depository organizations would not be prohibited by the Depository Institution Management Interlocks Act (12 U.S.C. 3201) or Regulation L (12 CFR 212).

Treasury Releases Latest CPP Transactions Report

This story appeared in Bank Digest.

The Treasury Department has released the latest transactions completed under its Capital Purchase Program. As of October 23, 2009, the Treasury has invested $204,662,776,320 in 746 financial institutions.

Treasury Department Issues Cumulative Dividends Report

This story appeared in Bank Digest.

The Treasury Department has released its Cumulative Dividends Report as of Sept. 30, 2009. The report covers the dividends paid by financial institutions that have received assistance from the federal government pursuant to such programs as the Capital Purchase Program, Systemically Significant Failing Institution Program or Automotive Industry Financing Program.

FTC Dismisses Individual as “Making Home Affordable” Imposter

By Gregg D. Killoren, J.D., CCH State Banking Law Reporter, Bank Digest and Individual Retirement Plans Guide.

The Federal Trade Commission has voted to dismiss defendant Neil Sperry from FTC v. Cantkier, a law enforcement action against several defendants marketing homeowner relief programs. The FTC alleged the defendants misrepresented that they are affiliated with free federal government programs, such as Making Home Affordable, in marketing mortgage modification or foreclosure relief programs for a fee to consumers. After the FTC filed its complaint earlier this year, a federal court issued an order stopping the defendants from making deceptive claims pending trial. FTC staff later learned that Sperry had no part in the alleged deceptive practices, and that his identity was used by unnamed persons as part of the scheme. The FTC therefore recommended that Sperry be dismissed from the case.

House Committee, Treasury Propose Systemic Risk Bill

By Richard Roth, J.D., Editor, the CCH Federal Banking Law Reporter, CCH Bank Compliance Guide and Bank Digest.

The Treasury Department and the House Financial Services Committee leadership have jointly drafted a bill that is intended to address both systemic risk in the financial system and the problem of institutions that are seen as “too big to fail.” The proposal, designated as a “discussion draft,” is intended to create a way to monitor and reduce the threats posed by systemically risky firms and establish a process for resolving large, financially-troubled non-bank financial institutions in an orderly manner.

Dodd Introduces Bill to Immediately Freeze Credit Card Interest Rates

This story appeared in Bank Digest.

Senate Banking Committee Chairman Christopher J. Dodd, D-Conn., introduced a bill to immediately freeze credit card interest rates, fees and finance charges on existing balances. The Credit Card Accountability, Responsibility, and Disclosure (CARD) Act, enacted in May, prevents arbitrary interest rate, fee and finance charge increases on a customer’s existing balance. It requires 45 day notification of interest rate increases, and increases from 14 days to 21 days the amount of time before a bill is due that a statement must be delivered. According to a Banking Committee press release, “Unfortunately, credit card companies have been jacking up rates in a last ditch effort to squeeze customers before all of the bill’s provisions can take effect.” Dodd’s bill would force companies to immediately freeze rates, finance charges and fees on existing balances until the remaining provisions in the Credit CARD Act go into effect. “We worked long and hard to enact the safeguards included in the Credit CARD Act,” said Dodd. “But as soon as it was signed into law, credit card companies were looking for ways to get around the protections this Congress and the American people demanded. This bill would end those abuses and further protect customers today.”

http://banking.senate.gov/public/index.cfm?FuseAction=Newsroom.PressReleases&ContentRecord_id=9229fdac-acc8-f78e-3f79-2aed0eb2e24c&Region_id=&Issue_id

Fraudulent E-Mails Claiming to Be from FDIC Are Being Circulated

This story appeared in Bank Digest.

The FDIC has received numerous reports of a fraudulent e-mail that has the appearance of being sent from the FDIC. The subject line of the e-mail states: check your Bank Deposit Insurance Coverage. The e-mail tells recipients that, “You have received this message because you are a holder of a FDIC-insured bank account. Recently FDIC has officially named the bank you have opened your account with as a failed bank, thus, taking control of its assets.” The e-mail then asks recipients to visit the official FDIC website and perform the following steps to check your Deposit Insurance Coverage (a fraudulent link is provided). It then instructs recipients to download and open your personal FDIC Insurance File to check your Deposit Insurance Coverage. This e-mail and associated Web site are fraudulent. Recipients should consider the intent of this e-mail as an attempt to collect personal or confidential information, some of which may be used to gain unauthorized access to online banking services or to conduct identity theft. The FDIC noted that it does not issue unsolicited e-mails to consumers.

http://www.fdic.gov/consumers/consumer/alerts/index.html

Letter to Credit Unions Addresses Premium Assessments

This story appeared in Bank Digest.

The NCUA has issued a Letter to Credit Unions on recent action it took to maintain the strength of the National Credit Union Share Insurance Fund (NCUSIF) and begin the repayment of the Treasury borrowing for the corporate credit union stabilization plan. It noted that, as projected in prior guidance to credit unions, the resulting combined premium collection to credit unions is 15 basis points of insured shares. The invoice for the assessment will be sent in the fourth quarter of 2009 with payment due within 30 days of the invoice date.

09-CU-20 at http://www.ncua.gov/Resources/Letters/09-CU-20.pdf

Stress Testing Results at http://www.ncua.gov/Resources/Letters/09-CU-20(Attachment1).pdf

Corporate Credit Union Reserve at http://www.ncua.gov/Resources/Letters/09-CU-20(Attachment2).pdf

Treasury Releases Asset Guarantee Program—Bank of America Termination Agreement

This story appeared in Bank Digest.

The Treasury Department has published a copy of the Asset Guarantee Program—Bank of America Termination Agreement, signed on Sept. 21, 2009. The Agreement, entered into between Bank of America, and the Treasury, the Federal Reserve Board, and the Federal Deposit Insurance Corp., provided protection against the possibility of unusually large losses on an asset pool of approximately $118 billion of loans, securities backed by residential and commercial real estate loans, and other similar assets. The majority of these assets were assumed by Bank of America as a result of its acquisition of Merrill Lynch.

http://www.financialstability.gov/docs/AGP/BofA%20-%20Termination%20Agreement%20-%20executed.pdf

Committee Communications Director Responds to CFPA Debate Claim

This story appeared in Bank Digest.

Steve Adamske, Communications Director for the House Financial Services Committee, issued a statement in response to Ranking Member Spencer Bachus’s claim that Committee Chairman Barney Frank cut off debate on the bill to create the Consumer Financial  Protection Agency. Part of the statement noted that “Ranking Member Bachus’ true objection is not that we proceeded too quickly; it is that we proceeded at all.”

http://www.house.gov/apps/list/press/financialsvcs_dem/pr_202309.shtml