May 12, 2003 News Archive

Guidance Regarding Restrictions on Institutions in Troubled Condition
The Board issued SR 03-6 reiterating the statuatory restrictions applicable to banks and holding companies in troubled condition. These restrictions apply to "golden parachute" payments, and and the appointment of directors and senior officers.

Treasury and Financial Regulators Issue Final Rules on Customer Identification
The Department of the Treasury, the Financial Crimes Enforcement Network, and the seven federal financial regulators announced the issuance of final rules implementing section 326 of the USA PATRIOT Act, which requires certain financial institutions to establish procedures to verify the identity of new accountholders. The joint final rule is effective May 31, 2003. Financial institutions will have until October 1, 2003, to come into full compliance.

BIS Forum Reviews Vulnerabilities in the International Financial System
The Financial Stability Forum of the Bank for International Settlements (BIS) recently reviewed the global macroeconomic situation and progress made in addressing weaknesses in market foundations. According to the press release, Forum members also discussed credit risk transfer issues and transparency and disclosure in the reinsurance industry.

BIS Releases Results of Third Quantitative Impact Survey
The Bank for International Settlements (BIS) has released aggregate results (PDF) of the New Basel Accord's third Quantitative Impact Survey (QIS-3), which assessed the impact that the proposed Accord will have on capital levels. Over 180 banks from G10 countries, including 22 large U.S. banking organizations, participated in the survey. The Board of Governors is planning to meet with each U.S. QIS-3 participant to provide individualized feedback regarding the results.