Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Comment Fed interest payments OFAC enforcements
WASHINGTON (10/14/08)—The Credit Union National Association (CUNA) is seeking comment on two recent, unrelated proposals: the Federal Reserve Board’s plan to pay interest on depository institutions’ required and excess reserve balances; and proposed guidelines from the Office of Foreign Assets Control (OFAC) for enforcement of its economic sanctions. Although it was the Financial Services Regulatory Relief Act of 2006 that originally authorized the Fed to begin paying interest on balances held by or on behalf of depository institutions, the 2008 Emergency Economic Stabilization Act moved the effective date up three years from Oct. 1, 2011. The Fed will pay interest on average balances maintained over the reserve maintenance periods as of Oct. 9 this year. In its Comment Call, CUNA noted such details as:
* The initial rate of interest for required reserve balances will be the average targeted federal funds rate over the reserve maintenance period less 10 basis points; * The interest rate for excess balances will be the lowest targeted federal funds rate during the reserve maintenance period less 75 basis points; and * Interest will be paid on correspondent balances, which does not have to be passed back to the respondent.
CUNA requests that comments be sent by Nov. 1; they are due to the Fed Nov. 21. Regarding the OFAC proposal, the guidelines reflect factors that will be considered in determining the appropriate enforcement response to any apparent violation of an OFAC sanctions program. The guidelines identify enforcement actions that OFAC may take and list “general factors” that will be considered in determining both enforcement action and penalty amount. The interim final rule supersedes all previous guidance issued by OFAC, and applies to all persons and entities subject to any of the sanctions programs administered by OFAC. For more on each regulatory plan, and to read CUNA’s complete Comment Calls, use the resource links below.


RSS print
News Now LiveWire
July 's Fed Bank's "FedFocus" has some interesting articles: incl cost/benefits of $1 currency 2 coin conversion ttp://tinyurl.com/nybmnhh
20 hours ago
Do you wish you were a News Now subscriber? Go here: http://t.co/7evfBSjeMx
20 hours ago
Financial education for student body key part of Altura #creditunion, UC-Riverside partnership #NewsNow http://t.co/Xp6OJd66o6
21 hours ago
.@VTcreditunions gains 200 new FB followers in just 2 wks to reach 1,000 http://t.co/I89xJcv4Jg
21 hours ago
.@CUNA is testifying on reg relief Tues,July 15 at 2 p.m. be4 Hs Fin Serv Subc. Here is the agenda and witness list: http://t.co/yBRhlmdqHt
1 Day ago