May 6, 2002 News Archive

Interagency Guidance on Risks of Parallel-Owned Banking Organizations
The federal agencies issued a joint statement and guidance(PDF) on parallel-owned banking organizations outlining potential risks associated with these banking organizations and the approach to supervision of those risks. The statement also discusses the application process for proposals involving parallel-owned banking organizations.

Chairman Greenspan Testifies Before the Senate Banking Committee on Deposit Insurance Reform
In his testimony before the Committee on Banking, Housing, and Urban Affairs, Chairman Alan Greenspan commented on general reform issues as proposed by the Federal Deposit Insurance Corporation (FDIC) and expressed the broad views of the Federal Reserve Board on the issues associated with modifications of deposit insurance. He indicated that the Board of Governors of the Federal Reserve System supports, with some modifications, the FDIC's recommendations except indexing the current $100,000 ceiling. The proposed modifications would call for a wider permissible range for the size of the fund relative to insured liabilities, reduced variation of the insurance premium as the relative size of the fund changes with banking and economic conditions, and a positive premium net of rebates.

Governor Olson Remarks on Risk Management in a Changing Economic Environment
In a speech delivered at the Bank Administration Institute's Audit, Compliance, and Electronic Security Conference, Governor Mark W. Olson remarked on the four key environmental factors that have changed in the financial services industry. The changes have required the industry to improve both its monitoring and its management of risk exposures. These factors include industry consolidation, increased competition, technological changes, and management focus on shareholder value. He also mentioned that these factors are not the only ones affecting the industry, but their combined influence has clearly altered management challenges.