Nov. 13, 2006 News Archive

FinCEN: Suspected Mortgage Loan Fraud Continues to Rise offsite link
An assessment released Nov. 3 by the Financial Crimes Enforcement Network (FinCEN) reveals that suspected mortgage loan fraud in the United States continues to rise, and has risen 35 percent in the past year. FinCEN conducted the assessment, which was based on an analysis of Suspicious Activity Reports (SARs) regarding suspected mortgage loan fraud, to identify trends and patterns that may be useful to law enforcement, regulatory authorities, and financial institutions offering mortgage loan products. (PDF)

Fed Grants Reg W Exemption to E*TRADE Clearning LLC offsite link
The Federal Reserve gave permission for E*TRADE Clearing LLC to become a subsidiary of E*TRADE Bank in Arlington, Va., by granting an exemption under Regulation W. The transaction would permit E*Trade Financial Corp to transfer of all of its equity interest in E*Trade Clearing to the bank, which would make it a wholly-owned operating subsidiary. The Fed said while it has routinely granted exemptions for one-time corporate reorganizations, this is the first time it has approved the transfer of a broker dealer regulated by the Securities and Exchange Commission or of a company principally engaged in securities clearing when the transferred company would become a subsidiary of a bank. In approving the plan, the Fed noted that ETFC made a number of commitments to reduce risk to the bank, such as promising that none of the assets transferred to the bank would be low-quality assets. The Fed also imposed some conditions on the transaction, such as requiring Clearing to inform customers that funds are not covered by FDIC insurance. (PDF)