October 10, 2005 News Archive

Banking Agencies Announce Revised Plan for Implementation of Basel II Framework
The Federal banking agencies announced their revised plans for the U.S. implementation of the "International Convergence of Capital Measurement and Capital Standards: A Revised Framework," otherwise known as Basel II. The agencies previously announced on April 29, 2005 that they were delaying issuance of a notice of proposed rulemaking (NPR), pending additional analysis of the quantitative impact study (QIS4)submissions. The agencies intend to move forward with an NPR for domestic implementation of Basel II, but plan to introduce additional prudential safeguards in the NPR to address concerns identified in the analysis of the results of the QIS4 conducted with the industry. The agencies expect that the U.S. Basel II proposal will be available in the first quarter of 2006.

Katrina Related Marketing Practices Invoking the Name of the Federal Reserve
SR 05-17 serves to address the marketing practices of firms claiming that the Federal Reserve plans increased scrutiny of banking organizations' business continuity and disaster recovery plans in the wake of Hurricane Katrina.

Banking organizations supervised by the Federal Reserve can be assured that there are no plans at this time to conduct special investigations of the business continuity and disaster recovery plans of banking organizations with offices in Alabama, Mississippi, and Louisiana as a result of Hurricane Katrina. Business continuity and disaster recovery plans are routinely reviewed in the course of regularly scheduled safety and soundness examinations. The Federal Reserve expects to be flexible in developing supervisory responses to issues that may arise as a result of the very difficult environment surrounding Hurricane Katrina.

Agencies Announce Orders Exempting Bank Transfer Agents Affected by Hurricane Katrina
The federal banking agencies announced the issuance of orders granting emergency relief to bank transfer agents affected by Hurricane Katrina. The orders cover national banks, state member banks, state nonmember banks, bank holding companies, and bank subsidiaries. The relief applies retroactively for the period beginning Aug. 29, 2005 through Oct. 17, 2005.

Transfer agents maintain records related to the issuance and transfer of securities and provide operational assistance in the sale and transfer of ownership of securities. These agents also may disburse dividends and send corporate information, including proxies, to holders of securities. The storm and its aftermath have resulted in a lack of communications, facilities, and available staff that could hamper the efforts of transfer agents to access securities, records, and funds, and to process securities transactions.