Regulatory Roundup: Action Expected Soon

OP-SUB UNDERWRITING: The OCC is expected this week to approve an application filed by Zions First National Bank to underwrite municipal revenue bonds through an operating subsidiary.

DERIVATIVES ACCOUNTING: The Financial Accounting Standards Board plans to finalize by the end of December its proposal requiring companies to report derivatives at fair-market value on quarterly income statements.

YEAR 2000: The Federal Financial Institutions Examination Council is expected to issue guidelines before the end of December that outline responsibilities of bank directors and senior management to fix year-2000 computer glitches. It plans in early 1998 to issue instructions on scrutinizing vendors and making sure borrowers and vendors are addressing their own year-2000 problems. Guidelines for testing computer repairs are expected by the end of the first quarter.

MONEY LAUNDERING: Regulators are expected to propose in early 1998 long- delayed rules governing how federal financial institutions verify the identity of their customers. The Fed plans to have a draft ready by yearend and then develop a joint proposal with the other banking and thrift agencies. Regulators have been working on draft "know-your-customer" rules, which are meant to deter money launderers, since May 1996.

LENDING DISCLOSURES: The Fed and HUD plan to issue a legislative proposal by early next year on how Congress should combine the disclosures required by the Truth-in-Lending and Real Estate Settlement Procedures acts. The Fed requested recommendations April 2 and comments were due June 30. The Fed's consumer advisory council recently recommended simplified rate disclosures for homebuyers and tightened limits on fees for home equity loans.

FANNIE OVERSIGHT: The Office of Federal Housing Enterprise Oversight plans to initiate a comprehensive examination program for Fannie Mae and Freddie Mac on Jan. 1.