Banking Regulatory News

The Federal Home Loan Bank of San Francisco announced December 31, 2009, that the 11th District Monthly Weighted Average Cost of Funds Index ("COFI") for November 2009 is 2.094%.

The COFI is computed from the actual interest expense reported for a given month by the Arizona, California, and Nevada savings institutions members of the Federal Home Loan Bank of San Francisco that satisfy the Bank's criteria for inclusion in the COFI ("COFI Reporting Members").

Changes in interest rates on adjustable rate mortgage loans offered by many financial institutions are tied to changes in the COFI.

This change will help customers by reducing the likelihood they may inadvertently overdraw their account and thus eliminate unexpected overdraft fees on these transactions.

Customers will still have the choice to link their checking account to another account through Overdraft Protection to cover these types of transactions.

"Our solution is simple, clear and helps customers control their finances by reducing the possibility of over-extending themselves at the point of sale with a debit card."

Mar. 10--Broward County government is taking on Big Banking.

Bank of America lost out on a role in financing a new courthouse in downtown Fort Lauderdale on Tuesday after county commissioners complained the megabank has failed to help people with troubled mortgages and unfairly jacked up credit card fees.

"I don't think that bad behavior should be rewarded," said Commissioner Lois Wexler, who joined with Commissioner Stacy Ritter in moving to ice out Bank of America.

MELBOURNE, March 9 Asia Pulse - Australia's ANZ Banking Group Ltd (ASX:ANZ) said former institutional bank group managing director Steve Targett has dropped his A$57 million (US$51.83 million) lawsuit against the bank.

ANZ said Mr Targett had agreed to discontinue his legal action, and a deed of release signed by him was received by the bank on Tuesday.

"No payment will be made by ANZ to Mr Targett and each party will meet their own legal costs," ANZ said in a statement on Tuesday.

JAKARTA, March 9 Asia Pulse - Assets of Indonesia's PT Bank Tabungan Negara Tbk (BTN) (JSX:BTPN) climbed 30 per cent in 2009 after its initial public offering (IPO), making the bank one of the 10 biggest in Indonesia.

Its president director, Iqbal Latanro, said in a press conference on Monday he was optimistic the company`s performance would continue to grow in 2010.

Based on various indicators of its financial performance until December 31, 2009, the bank is healthy in terms of its assets, credits, third party funds, profits and a number of financial ratios.

Mar. 10--The National Bank of Commerce in Superior must do due diligence on its at-risk credit clients and follow stringent reporting requirements after federal regulators found "unsafe and unsound banking practices" relating to the bank's credit administration.

The findings came after an extensive review last fall by the Comptroller of the Currency, the federal agency that supervises national banks.

"It was not unexpected that they asked us to improve some lending practices," bank Vice President Bruce Thompson said.

PARIS - Rich countries must strengthen financial market regulation and bring down their oversized government deficits, two of the biggest new challenges to have arisen from the global economic crisis, the OECD said Wednesday.

In a 30-nation report, the chief economist of the Paris-based Organization for Economic Cooperation and Development said restoring public finances to health will be a "daunting task" for most OECD governments.

There was no specific mention of Greece's fiscal crisis in the report entitled "Going for Growth", an annual overview of economic reforms, but the OECD recommended cutting social spending as a general tool to reduce government debt.

NEW YORK - Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards.

It's a step that may become a common move ahead of new regulations limiting overdraft fees.

Rules set by the Federal Reserve that will ban banks from charging such fees, without first getting permission from the customer, are set to take effect July 1.

Bank of America customers soon will be unable to spend more than they have in the accounts linked to their debit cards.

It's a step that may become a common move ahead of new regulations limiting overdraft fees.

Rules set by the Federal Reserve that will ban banks from charging such fees, without first getting permission from the customer, are set to take effect July 1.

Mar. 10--BRADENTON -- Horizon Bank of Bradenton has been ordered by the Federal Reserve to either raise funds or merge with another bank within 45 days.

It states that the undercapitalized bank has not filed a capital restoration plan that meets federal requirements and therefore must take immediate action to improve its financial position.

Under such a directive, one of the toughest issued by the Fed, the bank must submit an acceptable plan and timetable to the Fed within 30 days, detailing its plan of action.