Latest News Sep 25, 2008 Treasury Department Seeks Fast Action for Financial System Sep 19, 2008 Fed, Treasury Take Steps to Address Latest Turmoil Sep 11, 2008 Fannie Mae, Freddie Mac Control Shifts to Government Aug 28, 2008 Bank Earnings Fall; FDIC May Increase Insurance Premiums Aug 7, 2008 Comprehensive Housing Bill Signed into Law Jul 30, 2008 The Red Flags Deadline Is Looming: Best Practices to Meeting Guidelines and Implementing a Successful Solution   Archive Contact CCH Focus CCH Focus CCHFocusEditor@cch.com   CCH Customer Support Phone: 800.449.6435 Subscriber Invitation Visitors to CCH Focus are invited to submit articles for future issues. Analyses, viewpoints, letters to the editor, manuscripts, legal memoranda and other original materials that could be adapted for publication are welcome. Submissions or queries may be sent to   Serena Lynn, Editor 2700 Lake Cook Road, Riverwoods, Illinois 60015 Phone: 847.267.7087 Fax 847.267.7776 CCHFocusEditor@cch.com

Sign up via Treasury Department Seeks Fast Action for Financial System Reprinted from the CCH Federal Banking Law Reporter. Treasury Secretary Henry M. Paulson Jr. and Federal Reserve Board Chairman Ben S. Bernanke have asked Congress to take quick action on legislation intended to restore confidence in the financial system by removing illiquid mortgage assets from the balance sheets of financial institutions. Paulson said on Sept. 19, 2008, that "until we get stability in the housing market we're not going to get stability in our financial markets." He explained that illiquid mortgage assets, which have lost value as the housing correction has proceeded, are choking off the flow of credit in the economy and are "undermining the strength of our otherwise sound financial institutions." National Economic Council Director Keith Hennessey said separately that the administration is "very willing" to work with members of Congress to figure out the best way of dealing with the illiquid... Read full article Fed, Treasury Take Steps to Address Latest Turmoil By John M. Pachkowski, J.D., Editor, CCH Federal Banking Law Reporter and Bank Digest; Author, Anti-Money Laundering and Bank Secrecy: Compliance and the USA PATRIOT Act; Co-Author CCH Financial Privacy Law Guide. In response to the bankruptcy of Lehman Brothers, the sale of Merrill Lynch & Co. to Bank of America and the request by American International Group (AIG) to the Federal Reserve Board for a bridge loan, the Fed has announced several initiatives to provide additional support to financial markets, including enhancements to its existing liquidity facilities. On Sept. 14, 2008, the Fed moved to expand the collateral eligible to be pledged at the Primary Dealer Credit... Read full article Fannie Mae, Freddie Mac Control Shifts to Government Reprinted from the CCH Federal Banking Law Reporter. The Federal Housing Finance Agency has placed the Federal Home Loan Mortgage Corp. (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) into conservatorship. In making the Sept. 7, 2008, announcement, FHFA Director James B. Lockhart noted that balance between the mission of Freddie Mac and Fannie Mae to provide liquidity to the housing market and their ability to raise and maintain capital "has been lost." Lockhart added that FHFA's action addresses safety and soundness concerns and "pervasive weaknesses across the board" regarding Fannie Mae and Freddie Mac. The action was based on the agency's rating system --Government Sponsored Enterprise (GSE) Risk or G-Seer --which stands for Governance, Solvency, Earnings and Enterprise Risk, including credit, market and operational risk. Treasury Secretary Henry M. Paulson Jr. stated that "Fannie Mae... Read full article Bank Earnings Fall; FDIC May Increase Insurance Premiums Reprinted from the CCH Federal Banking Law Reporter. Commercial banks and thrifts insured by the Federal Deposit Insurance Corp. reported net income of only $5 billion in the second quarter of 2008, $31.8 billion less than in last year's second quarter, according to the FDIC. The earnings report was the second lowest since 1991, with only the earnings in the fourth quarter of 2007 being less. According to the FDIC, the main reason for the drop in earnings was increased provisions by banks for loan losses. The agency also said that its list of problem banks rose to 117, as opposed to 90 banks only three months before. The number of banks on the list was said to be the largest since mid-2003. Additionally, total assets of these institutions increased from $26 billion $78 billion, including $32 billion from IndyMac Bank F.S.B., which was placed into receivership in July. Deposit Insurance Fund... Read full article Comprehensive Housing Bill Signed into Law By John M. Pachkowski, J.D., Editor, CCH Federal Banking Law Reporter and Bank Digest; Author, Anti-Money Laundering and Bank Secrecy: Compliance and the USA PATRIOT Act; Co-Author CCH Financial Privacy Law Guide. Despite an earlier veto threat, President Bush signed the Housing and Economic Recovery Act of 2008 into law on July 30, 2008. The Act, called by some the "most comprehensive housing legislation in over a generation," is expected to help hundreds of thousands of Americans who are struggling to keep their homes, as well as countless homeowners and communities that already are experiencing the devastating effects of foreclosure. The Act contains comprehensive reforms to the... Read full article The Red Flags Deadline Is Looming: Best Practices to Meeting Guidelines and Implementing a Successful Solution By Adam Elliott, President, ID Insight.  Reprinted from the CCH Federal Banking Law Reporter. With roughly three months left until the FACT Act Red Flag Guidelines compliance deadline, it’s becoming apparent that we collectively have a large mountain to climb. News on the Red Flag Guidelines can be found around every corner these days. Webinars, white papers and industry publications are bursting with information about the impending November 1 deadline. But despite the deadline’s increasing visibility, all of this discussion appears to have done little to spur banks and credit unions into action. In a recent survey by BankInfoSecurity.com, only half of financial institutions said they will beat the compliance deadline for the FACT Act Red Flag Guidelines. This underscores much of what we have been seeing in the market. With the banking crisis still... Read full article