Regulatory Roundup: Action Expected Soon

PRIVACY: The OCC is expected to issue guidance this month on how to preserve customers' privacy. The guidance, which will not be legally binding, will suggest how to communicate privacy policies on bank Web sites and how to comply with disclosure requirements of the Fair Credit Reporting Act.

RECEIVERSHIPS: The FDIC is expected in the next several months to modify its receivership policies. The agency would establish uniform rules for interest payments stemming from the resolution of failed banks and thrifts. In a separate rule, it would prohibit people who helped cause the failure of a bank or thrift from buying that institution's assets.

CRA SURVEY: The OCC is mulling a plan to survey the 50 largest banks to find out if they are living up to their Community Reinvestment Act pledges. If the agency decides to go ahead, it is expected to conduct the survey early next year.

LOAN CHARGEOFFS: The Federal Financial Institutions Examination Council is expected in the next several months to revise its loan chargeoff policy. The Exam Council is expected to drop a controversial proposal to require banks to write off all bad loans within 150 days. Instead, it will retain the 120-day writeoff period for closed-end loans and 180-day period for open-end loans.

FAIR-LENDING: The Exam Council is preparing guidance on fair-lending compliance. The guidance includes details on how examiners will decide whether to search for pricing, underwriting, or marketing discrimination. The guidance is expected to be issued shortly and will take effect early next year.

SUBPRIME LENDING: The OCC is finalizing guidance on subprime lending. The guidance will urge banks to research the market before entering, prepare detailed business plans, and price credits based by risk, not by what competitors charge.

MONEY LAUNDERING: The Treasury Department's Financial Crimes Enforcement Network expects to approve a final anti-money-laundering rule for nonbanks- such as check cashers and currency exchanges-by yearend.

DEPOSIT INSURANCE: The FDIC is considering a plan to make healthy banks involved in risky investment strategies pay higher deposit insurance premiums. This could take effect as early as the second half of 1999. In a Nov. 3 speech, the agency's chairman said the policy is expected to focus on banks that have overall Camels ratings of 1 or 2 but management ratings of 3 or worse.

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