August 18, 2003 News Archive

NEW...Capital Risk Page
The Capital Group of the Federal Reserve Bank of Chicago shares their knowledge of Capital Risk.

The Capital Group is a team of 6 risk specialists within the Chicago Fed's Banking Super vision and Regulation department. Their activities focus on enterprise-wide risk management, how those risks are quantified, and how those measures are related to firms' decisions to allocate and hold capital for their lines of business. The Capital Group is also integrally involved in the US efforts to develop and implement the proposed Basel II capital framework.

Final Rule on Disciplinary Action for Accountants and Accounting Firms Performing Audit Services
In a joint press release, the regulatory agencies issued final rules that establish procedures under which the agencies could remove, suspend, or bar an accountant or firm from performing audit and attestation services for insured depository institutions with assets of $500 million or more. Under the final rules, violations of law, certain negligent conduct, reckless violations of professional standards, or lack of qualifications to perform auditing services would be considered good cause for removal, suspension or disbarment.

The rules take effect October 1, 2003.

Comments Sought for Interagency Guidance on Identity Theft Response Programs
The regulatory agencies issued a press release seeking public comment on proposed guidance requiring financial institutions to create programs to respond to incidents of identity theft, including customer notification procedures. The comment period ends on October 14, 2003.

SEC Proposes New Disclosure Requirements
The Securities and Exchange Commission (SEC) recently proposed new disclosure requirements for the nomination of directors and for shareholder communications with directors. The proposal would require companies to disclose such information as whether they have separate nominating committees; how a company identifies and evaluates director nominees; whether a company pays any third party a fee to assist in the process; and whether the company allows shareholder nominations. In the area of shareholder communications with directors, the proposal would require companies to disclose their communications process, covering such areas as whether and how communications are screened.