R. Kinney Williams - Yennik, Inc.®
R. Kinney Williams
Yennik, Inc.

The E-mail Banking News
for the week of August 19, 2018

Published by Yennik, Inc. the acknowledged leader in independent IT security audits for financial institutions.

FFIEC information technology audits - As a former bank examiner with over 40 years IT audit experience, I will bring an examiner's perspective to the FFIEC information technology audit for bankers in Texas, New Mexico, Colorado, and Oklahoma. 

August 17, 2018 - OCC Enforcement Actions and Terminations for August 2018 - The Office of the Comptroller of the Currency (OCC) today released new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with national banks and federal savings associations. https://www.occ.treas.gov/news-issuances/news-releases/2018/nr-occ-2018-80.html

August 16, 2018 - GoCPS: A First Look at Applications and Offers By Lisa Barrow, Lauren Sartain, & Marisa de la Torre - Chicago Public Schools offers many options when it comes to high school enrollment. In fact, about three of every four incoming ninth graders choose to attend a high school other than their assigned neighborhood school. www.chicagofed.org/~/media/others/people/research-resources/barrow/2018-barrow-sartain-delatorre-go-cps-white-paper-pdf.pdf

August 16, 2018 - Federal Reserve Board announces termination of enforcement actions with Flagstar Bancorp, Inc., and Santander Holdings USA, Inc. www.federalreserve.gov/newsevents/pressreleases/enforcement20180816a.htm

August 16, 2018 - Federal Reserve to offer seven-day term deposits on August 23 - The Federal Reserve plans to continue its previously announced periodic testing of the Term Deposit Facility with one operation in August. www.federalreserve.gov/newsevents/pressreleases/monetary20180816a.htm

August 15, 2018 - Community Reinvestment Act: Revisions to Impact of Evidence of Discriminatory or Other Illegal Credit Practices on Community Reinvestment Act Ratings - The Office of the Comptroller of the Currency is issuing this bulletin to make public the revised Policies and Procedures Manual 5000-43, which clarifies the OCC’s policy for applying the regulatory framework to determine the effect of evidence of discriminatory or other illegal credit practices on the Community Reinvestment Act rating of a national bank, federal savings association, or federal branch. www.occ.treas.gov/news-issuances/bulletins/2018/bulletin-2018-23.html

August 15, 2018 - OCC Hosts Compliance and Operational Risk Workshops in Houston - The Office of the Comptroller of the Currency will host two workshops in Houston at the Houston Marriott South at Hobby Airport, September 25 and 26, for directors of national community banks and federal savings associations supervised by the OCC. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-79.html

August 15, 2018 - Bank Accounting Advisory Series Updated - The Office of the Comptroller of the Currency today released an update to the Bank Accounting Advisory Series. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-78.html

August 15, 2018 - Statistical Release - Industrial Production and Capacity Utilization - G.17 - Industrial production edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months. Manufacturing production increased 0.3 percent, the output of utilities moved down 0.5 percent, and, after posting five consecutive months of growth, the index for mining declined 0.3 percent. www.federalreserve.gov/releases/g17/Current/

August 14, 2018 - St. Louis Fed Announces 2018-2019 Student Board of Directors - High school seniors from across the greater St. Louis area are selected based on a rigorous application process, which includes an essay and letters of recommendation. www.stlouisfed.org/news-releases/2018/08/14/st-louis-fed-announces-2018-2019-student-board-of-directors 

August 14, 2018 - Report to the Congress on Government-Administered, General-Use Prepaid Cards, August 2018 - The Board's annual report to the Congress on the use of general-use prepaid cards in federal, state, and local government-administered payment programs and on the interchange fees and cardholder fees charged with respect to the use of those cards. www.federalreserve.gov/publications/government-prepaid-executive.htm

August 14, 2018 - Hidden Baggage: Behavioral Responses to Changes in Airline Ticket Tax Disclosure - Sebastien Bradley and Naomi E. Feldman - We examine the impact on air travelers of an enforcement action issued by the U.S. Department of Transportation in January 2012 that required U.S. air carriers and online travel agents to incorporate all mandatory taxes and fees into their advertised fares. www.federalreserve.gov/econres/feds/files/2018057pap.pdf

August 14, 2018 - Federal Reserve Board announces termination of enforcement actions with HSBC North America Holdings, Inc., Capital Funding Bancorp, Inc. and CFG Community Bank, and CommerceWest Bank.  www.federalreserve.gov/newsevents/pressreleases/enforcement20180814a.htm

August 13, 2018 - NCUA - McWatters: Financial Literacy is Key to Protecting Service Members - Financial regulatory agencies, non-profits, schools financial institutions, and the military must work together to improve the personal finance knowledge of service members and their families to prevent them from being financially exploited, NCUA Board Chairman J. Mark McWatters said today. www.ncua.gov/newsroom/Pages/news-2018-aug-mcwatters-financial-literacy-key-protecting-service-members.aspx

August 13, 2018 - FEDS Notes - SOMA's Unrealized Loss: What does it mean? - Brian Bonis, Lauren Fiesthumel, and Jamie Noonan - In May 2018, the Federal Reserve published its Federal Reserve Banks Combined Quarterly Financial Report for the first quarter of 2018. www.federalreserve.gov/econres/notes/feds-notes/somas-unrealized-loss-what-does-it-mean-20180813.htm

August 13, 2018 - Are Income and Credit Scores Highly Correlated? - Rachael Beer, Felicia Ionescu, and Geng Li - Credit scores, a numerical indicator constructed to predict borrowers' credit risk, represent a crucial element of a person's financial life and are used extensively in loan underwriting and pricing. www.federalreserve.gov/econres/notes/feds-notes/are-income-and-credit-scores-highly-correlated-20180813.htm

August 13, 2018 - A Shadow Rate or a Quadratic Policy Rule? The Best Way to Enforce the Zero Lower Bound in the United States - Martin M. Andreasen and Andrew Meldrum -
We study whether it is better to enforce the zero lower bound in models of U.S. Treasury yields using a shadow rate model or a quadratic term structure model. www.federalreserve.gov/econres/feds/files/2018056pap.pdf

August 10, 2018 - St. Louis Fed Ag Survey: Bankers See Decline in Farm Income and Quality Land Values in Second Quarter - The latest survey shows the majority of agricultural bankers expect farm income to decline next quarter, just as it did in this second quarter report. Quality farmland values also fell in the most recent survey, according to the latest Agricultural Finance Monitor published by the Federal Reserve Bank of St. Louis. www.stlouisfed.org/news-releases/2018/08/09/st-louis-fed-ag-survey-decline-in-farm-income-and-quality-land-values-in-second-quarter

August 10, 2018 - Credit and Liquidity Programs and the Balance Sheet - Recent balance sheet trends, weekly chart update.  www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm

August 10, 2018 - Federal Reserve Board fines Citigroup $8.6 million for the improper execution of residential mortgage-related documents and announces termination of 2011 enforcement action.   www.federalreserve.gov/newsevents/pressreleases/enforcement20180810a.htm

August 9, 2018 - Anna Paulson Discusses Market Resiliency - Market Resiliency: Evidence from Money Market Mutual Fund Reform - A speech delivered by Anna Paulson on June 26, 2018, before the People’s Bank of China and Chicago Fed’s Symposium on Over-the-Counter Derivatives in Shanghai, China. www.chicagofed.org/publications/speeches/2018/06-26-2018-market-resiliency-evidence-from-money-market-mutual-fund-reform-paulson

August 9, 2018 - OCC Allows Federally Chartered Financial Institutions Affected by Wildfires in California to Close - The Office of the Comptroller of the Currency today issued a proclamation allowing national banks, federal savings associations, and federal branches and agencies of foreign banks affected by wildfires and high winds in California to close. www.occ.gov/news-issuances/news-releases/2018/nr-occ-2018-77.html

August 9, 2018 - Guidance to Help Financial Institutions and Facilitate Recovery in Areas of California Affected by Wildfires and High Winds - The FDIC has announced a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of California affected by wildfires and high winds. www.fdic.gov/news/news/financial/2018/fil18041.html

Please don't hesitate to email me (examiner@yennik.com) if you have any questions.  Have a great week,

R. Kinney Williams, President
Certified Financial Examiner
Yennik, Inc.

Independent Pen-test Audits
Our pen-test firewall audit  meets the independent diagnostic test requirements of FDIC, OCC, FRB, and NCUA, which provides compliance with Gramm-Leach Bliley Act 501(b) The audit focuses on a hacker's perspective, which will help your IT staff identify real-world weaknesses.  For more information, please call R. Kinney Williams at Office 806-798-7119, send an email to examiner@yennik.com, or visit http://www.internetbankingaudits.com/.


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