* WASHINGTON (7/8/08)--A rule by the Federal Deposit Insurance Corp. could help students learn financial skills and give financial institutions a way to serve the underserved by allowing banks to operate inside schools (American Banker
July 7). The rule allows banks to hire students as tellers to learn financial skills, but some see it as an opportunity to grow business. James Maloney, chairman and CEO of Mitchell Bank in Milwaukee, said deposits from a branch at South Division High School totaled $870,000 at one point. The branch also made $300,000 in loans to staff and parents, he said. Park Federal Savings Bank, Chicago, said the purpose of its in-school branch is community service, and that the branch is an “expense item” ... * WASHINGTON (7/8/08)--The Federal Reserve Board and the Securities and Exchange Commission (SEC) Monday announced they had reached a memorandum of understanding (MOU) to share information on clearing and settling banks’ and investment firms’ transactions, bank brokerage activities and anti-money laundering measures (The Wall Street Journal
July 7). “The MOU finalized between the SEC and the Federal Reserve is consistent with the long-term vision of the Treasury’s Blueprint for a Modernized Regulatory Structure and should help inform future decisions as our Congress considers how to modernize and improve our regulatory structure,” said Treasury Secretary Henry Paulson Jr. The Bush administration has proposed changes to the U.S. financial system. Credit Union National Association President/CEO Dan Mica has spoken out against the Treasury blueprint, saying it would eliminate credit unions as they function today ... * WASHINGTON (7/8/08)--The Treasury Department has released Notice 2008-59
regarding health savings accounts (HSAs). Since HSAs were created as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the Treasury and the Internal Revenue Service have issued a large number of formal guidance items containing questions and answers on HSAs. The notice contains more than 40 new frequently asked questions and answers that cover topics including: who is eligible; issues related to high deductible health plans; contributions to HSAs; distributions from HSAs; and establishing an HSA ...