CREDIT REPORTING: In a May 5 speech, Comptroller of the Currency John D. Hawke Jr. criticized some subprime lenders for failing to report positive borrower payment histories to credit bureaus. He said bank regulators and the Federal Trade Commission will soon introduce joint guidelines to encourage such reporting.
CAPITAL ACCORDS: Regulators are still trying to resolve a dispute with Germany that has stalled a proposed rewrite of the risked-based capital accords. The conflict centers on how much capital to hold for certain types of real estate loans. Consensus, however, has emerged for requiring higher reserves on loans to hedge funds and using public debt ratings to determine how much capital a bank must hold on loans to sovereign governments. Release of the international proposal is not expected this month.
EFT ACCOUNTS: The Treasury Department is expected as early as this month to finalize a rule on low-cost bank accounts for recipients of electronically delivered federal benefits. The rule will set standards for such accounts.
BUSINESS LOANS: The NCUA is expected to issue a final rule as early as this month that would limit credit union business loans. An interim final rule, published and effective Sept. 29, capped business lending at the lesser of 1.75 times net worth or 12.25% of total assets. Business loans of less than $50,000 were excluded from the cap.
THRIFT RULE: The Office of Thrift Supervision is expected to issue a rule by yearend to clarify when a unitary thrift holding company may own more than one thrift but still engage in nonfinancial activities.
EFT '99: The Treasury may issue a proposal on whether banks, thrifts, and credit unions should be allowed to subcontract electronic benefit transfer services with unregulated institutions, such as check cashers, currency dealers, and money transmitters. Comments on an advanced notice of proposed rulemaking were due April 8, but the Treasury is not certain if or when it will issue a proposal.
SUSPICIOUS ACTIVITY: The Treasury Department's Financial Crimes Enforcement Network is expected to propose a rule this summer requiring securities brokers and dealers to report suspicious transactions by customers. Similarly, Fincen expects to approve a final rule requiring other nonbanks-such as check cashers and currency exchanges-to report suspicious customer activity.
FAILED BANKS: The FDIC in June is expected to propose barring people who helped cause the failure of a bank or thrift from buying that institution's assets.
LOAN POOLING: The Small Business Administration expects to propose a rule this summer that would let small banks pool and sell the nonguaranteed portions of their 7(a) loans.
