* WASHINGTON (7/16/10)--Now that the regulatory reform bill has passed, the Federal Reserve Board will have more power to assert systemic threats. Under the legislation, the Fed would write 54 rules and requirements for liquidity and risk-based capital. It also would conduct annual stress tests for systemically significant institutions, publish a results summary, implement the Volcker Rule and write rules that would require large financial firms to draw “living wills” (American Banker
July 15). The Volcker rule bans proprietary trading and limits what commercial banks invest with private-equity and hedge funds ... * WASHINGTON (7/16/10)--The consumer financial protection bureau, included in the financial regulatory reform bill that passed Thursday, will have “a lot of teeth,” said Elizabeth Warren, who was a part of the Congressional Oversight Panel of the Troubled Asset Relief Program and is credited with coming up with the consumer financial protector regulator. The bureau will have the ability to reshape the consumer credit market, she said (American Banker
July 15) ... * ALEXANDRIA, Va. (7/16/10)--The National Credit Union Administration (NCUA) on Thursday confirmed that it has formally terminated former Arrowhead CU CEO Larry Sharp, chief financial officer Daniel Marciante, senior vice president of lending Gene Shabinaw, and senior vice president of strategic development Ray Messler after the four executives were placed on administrative leave by the NCUA last month. Arrowhead CU, an $876 million asset credit union based in San Bernardino, Calif., was placed into conservatorship by the NCUA last month due to its declining financial condition. Following the June 25 announcement that the credit union was being placed into conservatorship, the NCUA named Kay Woods, a former CEO at Las Vegas-based Weststar CU, to serve as interim CEO of Arrowhead Central. Arrowhead Central continues to operate without interruption, the NCUA added in a release… * VIENNA, Va. (7/16/10)--The Financial Crimes Enforcement Network (FinCEN) has approved a 30-day extension to the comment period for a recently proposed revision
to Bank Secrecy Act regulations applicable to money services businesses with regard to definitions of stored value and prepaid access. The new comment deadline is Aug. 27. The proposal would also delete the terms “issuer and redeemer” of stored value; impose suspicious activity reporting, customer information and transaction information recordkeeping requirements on both providers and sellers of prepaid access and, additionally, impose a registration requirement on providers only; and exempt certain categories of prepaid access products and services posing lower risks of money laundering and terrorist financing from certain requirements… * WASHINGTON (7/16/10)--The Office of the Comptroller of the Currency (OCC) has appointed Carolyn DuChene as deputy comptroller for operational risk policy. She will oversee all activities related to operational risk and bank information technology. She joined OCC in 1984 and works as assistant deputy controller in the Cleveland field office ...