|
NEW REPORT REVEALS OPPORTUNITY FOR COMMUNITY BANK INVESTMENT PROGRAMS
December 21, 2007 - Community bank investment program income totaled $129.76 million in the third quarter of 2007, up slightly from second quarter’s $129.72 million,
according to the
Michael White-LPL Financial Institution Services Report: Community Bank Investment Programs, sponsored by LPL
Financial Institution Services.
To read
more of the press release, click here.
Back
to Top of Page
BANK MUTUAL FUND AND ANNUITY INCOME UP 4.6% IN FIRST NINE MONTHS OF 2007 OVER YEAR-AGO
December 4, 2007 - Income earned from the sale and servicing of mutual funds and annuities at banks rose 4.6%
to $4.33 billion for the first three quarters of 2007, according to the
Michael White-Symetra Bank
Fee Income Report™,
sponsored by Symetra
Financial.
To read
more of the press release, click here.
Back
to Top of Page
BANK HOLDING COMPANY SECURITIES BROKERAGE INCOME HITS $9.8 BILLION IN FIRST HALF 2007
November 6, 2007 - Bank holding company securities brokerage income totaled $9.8 billion year-to-date at the end of second quarter 2007, according to the
Michael White-Symetra Bank Holding Company Fee Income Report™,
sponsored by Symetra
Financial.
To read
more of the press release, click here.
Back
to Top of Page
BANK BOLI ASSETS REACH NEARLY $109 BILLION IN FIRST HALF 2007
October 23, 2007 - Large bank holding companies
and stand-alone banks reported bank-owned life insurance (BOLI) assets of $108.6 billion in the first six months of 2007, reflecting an 11.1% increase from
the first half of 2006, according to the Michael White-MullinTBG BOLI Holdings Report™,
sponsored by MullinTBG.
To read
more of the press release, click here.
Back
to Top of Page
TOTAL BANK INSURANCE REVENUE UP IN FIRST HALF
2007
October 16, 2007 - The nation’s bank holding companies increased their total insurance revenue to $21.7 billion in the first half of 2007,
up from $21.4 billion during the same period in 2006, according to findings released today by Michael White Associates and the American Bankers Insurance Association.
To read
more of the press release, click here.
To read
the entire report, click here.
Back
to Top of Page
BANK HOLDING COMPANY MUTUAL FUND AND ANNUITY INCOME UP 29.7% IN FIRST HALF 2007
October 9, 2007 - Income earned from the sale and servicing of mutual funds and annuities at bank holding companies
rose 29.7% to $12.2 billion in first half 2007, according to the Michael White-Symetra Bank Holding Company Fee Income Report™, sponsored by
Symetra Financial.
To read
more of the press release, click here.
Back
to Top of Page
COMMUNITY
BANKS BOOST INVESTMENT PROGRAM RESULTS
October 3, 2007 - Community bank investment program income totaled $129.7 million in the second quarter of 2007, up 9.5% from first quarter’s $118.4 million, according to a new report, the
Michael White-LPL Financial Institution Services Report: Community Bank Investment Programs, sponsored by LPL
Financial Institution Services.
To read
more of the press release, click here.
Back
to Top of Page
BANK HOLDING COMPANIES BRING IN $4.2 BILLION IN SECURITIES BROKERAGE INCOME IN FIRST QUARTER
July 31, 2007 - Bank holding company securities brokerage income totaled $4.2 billion in first quarter 2007,
according to the
Michael White-Symetra Bank
Holding Company Fee Income Report™ (BHC-FIR™), sponsored by
Symetra Financial.
To read
more of the press release, click here.
Back
to Top of Page
BANK HOLDING COMPANY INSURANCE BROKERAGE FEE INCOME REACHES NEW HIGH IN FIRST QUARTER 2007
July 16, 2007 - Bank holding company insurance brokerage fee income was up 2.4% in first quarter 2007, compared to the first quarter of 2006, enough to set a new quarterly record of $3.1 billion,
according to the
Michael White-Symetra Bank
Holding Company Fee Income Report™ (BHC-FIR™), sponsored by
Symetra Financial.
To read
more of the press release, click here.
Back
to Top of Page
40.1% HIKE IN BANK HOLDING COMPANIES' MUTUAL FUND AND ANNUITY INCOME
July 9, 2007 - Income earned from the sale and servicing of mutual funds and annuities at bank holding companies (BHCs) rose 40.1% from $4.0 billion in fourth quarter 2006 to $5.6 billion in first quarter 2007, according to the
Michael White-Symetra Bank
Holding Company Fee Income Report™ (BHC-FIR™), sponsored by
Symetra Financial.
To read
more of the press release, click here.
Back
to Top of Page
BANKS RAKE IN $761.8 MILLION IN 1Q ANNUITY COMMISSIONS
June 18, 2007 - Bank commissions and fees from the sale of annuities totaled $761.8 million in the first quarter of the year, according to the
Michael White-Symetra Bank Fee Income Report™ (Bank-FIR™), sponsored by
Symetra Financial.
The first quarter of 2007 is the first time separate annuity fee income data has been available.
To read
more of the press release, click here.
Back
to Top of Page
BANK
INSURANCE BROKERAGE FEE INCOME UP 3.9 PERCENT IN FIRST QUARTER 2007
June 5, 2007 - Bank insurance brokerage fee income was up 3.9 percent year-to-date through March 31, 2007, compared to the first quarter of 2006, according to the
Michael White-Symetra Bank Fee Income Report™ (Bank-FIR™), sponsored by
Symetra Financial.
To read
more of the press release, click here.
Back
to Top of Page
BANK
BOLI ASSETS REACH NEARLY $104 BILLION IN 2006
May 8, 2007 - Large bank holding companies (BHCs) and stand-alone banks reported bank-owned life insurance (BOLI) assets of $103.9 billion in 2006, reflecting a 48.6% increase
over the prior year, according to the 2007 edition of The Michael White-MullinTBG BOLI Holdings Report™.
To read
more of the press release, click here.
Back
to Top of Page
BANK HOLDING COMPANIES’ TOTAL INSURANCE REVENUE DOWN, INSURANCE BROKERAGE FEE INCOME UP
April 10, 2007 - The nation’s bank holding companies experienced a slight decline in their total insurance revenue, according to findings released today by Michael White Associates and the American Bankers Insurance Association.
To read
more of the press release, click here.
To
read the entire report. click here.
Back
to Top of Page
BANK HOLDING COMPANIES’ MUTUAL FUND AND ANNUITY FEE INCOME LEVELS OFF AT
$19.3B IN 2006
April 3, 2007 - Mutual fund and annuity fee income at bank holding companies
leveled off at $19.33 billion in 2006, according to The
2007 Michael White-Symetra Bank Holding Company Fee Income Report™.
To read
more, click here.
Back
to Top of Page
BANKS’ MUTUAL FUND AND ANNUITY FEE INCOME REACHES $5.4B
March 5, 2007 - Banks increased their
2006 mutual fund and annuity fee income to $5.38 billion, according to The
2007 Michael White-Symetra Bank Fee Income Report™.
To read
more, click here.
Back
to Top of Page
BANK INSURANCE BROKERAGE FEE INCOME REACHES RECORD HIGH IN 2006
March 1, 2007 - Banks increased their 2006 insurance brokerage fee income to a record $4.08 billion,
according to The
2007 Michael White-Symetra Bank Fee Income Report™.
To read
more, click here.
Back
to Top of Page
TOTAL
BANK INSURANCE REVENUE UP IN FIRST HALF OF 2006
October 9, 2006 - The nation’s bank holding companies increased their total insurance revenue 1.1 percent to $21.4 billion in the first half of 2006, according to findings released today by Michael White Associates and the American Bankers Insurance Association.
To read
more, click here.
Back
to Top of Page
BofA
AND WACHOVIA LEAD THE PACK IN MUTUAL FUND AND ANNUITY FEE INCOME
October 4, 2006 - Bank of America and Wachovia led all bank holding companies with significant banking activities in mutual fund and annuity fee income in the first six months of
2006.
To read
more, click here.
Back
to Top of Page
BANKS
REPORT RECORD MUTUAL FUND AND ANNUITY SALES
September 5, 2006 - Bank mutual fund and annuity fee income was up 8.6% during the first half of the year, compared to the same period in
2005.
To read
more, click here.
Back
to Top of Page
BANK
INSURANCE REVENUE UP IN 2005
April 20, 2006 - The nation’s bank holding companies
increased their total insurance revenue 18.9% to $44.1 billion in 2005 from $37.1 billion in 2004,
according to findings released by Michael White Associates (MWA) and the American Bankers Insurance Association
(ABIA).
To read
more, click here.
Back
to Top of Page
MUTUAL
FUND AND ANNUITY INCOME UP 13% AT BANK HOLDING COMPANIES FOR 2005
April 3, 2006 - Bank holding companies increased mutual fund and
annuity fee income 13% in 2005 to $19.46 billion, according to
Michael White’s Bank Insurance & Investment Fee Income
Report.
To read
more about mutual fund and annuity income climbing 13% at bank holding companies, click here.
Back
to Top of Page
BANK
INSURANCE BROKERAGE FEE INCOME HITS NEW HIGH
March 23, 2006 - Bank insurance brokerage fee income jumped
over 8% to a record $3.9 Billion in 2005, according to
Michael White’s Bank Insurance & Investment Fee Income
Report.
To read
more about bank insurance brokerage fee income hitting a new high, click here.
Back
to Top of Page
BANK
MUTUAL FUND & ANNUITY FEE INCOME DOWN IN 2005
March 9, 2006 - U.S. bank mutual fund & annuity fee income in 2005 fell 10.6% from $5.62 billion in 2004 to $5.02
billion in 2005, according to
Michael White’s Bank Insurance & Investment Fee Income
Report.
To read
more about bank mutual fund & annuity fee income falling, click here.
Back
to Top of Page
BANKS’ INSURANCE EARNINGS NEARLY 10% HIGHER
November 29, 2005 - U.S. bank insurance brokerage fee income in the first three quarters of 2005 totaled $2.86 billion, up 9.8% from $2.6 billion in the first three quarters of 2004, according to
Michael White’s Bank Insurance & Investment Fee Income
Report.
To read
more about the nearly 10% spike in banks' insurance earnings, click here.
Back
to Top of Page
INSURANCE REVENUE CONTINUES TO CLIMB AT U.S. BANK HOLDING COMPANIES
November 1, 2005 - U.S. bank holding companies increased their total insurance revenue 1.6% to $21.2 billion in the first half of 2005, up from $20.9 billion in first half 2004, propelled by growth in underwriting earnings and insurance brokerage fee income, according
to findings released by Michael White Associates and the American Bankers Insurance Association.
To read
more about climbing insurance revenue at U.S. bank holding companies, click here.
Back
to Top of Page
CITIGROUP AND WACHOVIA LEAD BANK HOLDING COMPANIES IN MUTUAL FUND AND ANNUITY FEE INCOME IN FIRST HALF OF 2005
October 13, 2005 - CitiGroup and Wachovia Corporation led all bank holding companies with significant banking activities in mutual fund and annuity fee income in the first six months of 2005, according to
Michael White’s Bank Holding Company Insurance & Investment Fee Income Report.
To
read more about Citigroup and Wachovia leading bank holding companies in mutual fund and annuity fee income.
Back
to Top of Page
MWA SUPPORTS PROPOSED CALL REPORT CHANGES - SUGGESTS FURTHER REFINEMENT IN COMMENT LETTER
September 9, 2005 - Michael White Associates (MWA) has submitted a comment letter to the FDIC, FRB and OCC regarding proposed revisions to Call Reports. MWA supports the agencies’ proposed changes and has recommended amendments to them.
To access MWA’s comment
letter supporting proposed call report changes and suggesting further refinement,
click
here.
Back
to Top of Page
BOLI CAPITAL CONCENTRATION REPORT HELPS BANKS MEET NEW REGULATORY REQUIREMENTS
June 28, 2005 - MWA Announces Bank-Owned Life Insurance (BOLI) Report to
Meet New Compliance Requirements of Banking Regulators. First-of-its-kind peer analysis of BOLI holdings addresses capital concentration, liquidity and reputation risks, and “outlier”
status. Click
here to find out how the BOLI capital concentration report helps bank meet regulatory requirements.
Back
to Top of Page
SOFTENING INSURANCE MARKET BRINGS EXTRA CHALLENGES
June 28, 2005 - In a softening insurance market, banks face extra challenges. In his latest article, Michael White discusses these challenges, and discusses why insurance consortiums might offer community banks an edge.
Click here to read more about how the softening insurance market brings extra challenges.
Back
to Top of Page
BANK INSURANCE BROKERAGE FEE INCOME 7.5% HIGHER IN 1Q 2005
June 21, 2005 - Bank insurance brokerage fee income was up 7.5% in first quarter 2005, with total insurance brokerage fee income reaching $921.1 million.
Click here to read more about bank insurance brokerage fee income rising 7.5%.
Back
to Top of Page
BANCORPSOUTH CITES MICHAEL WHITES' INSURANCE & INVESTMENT FEE INCOME REPORT
June 1, 2005 - BancorpSouth cites MWA's BHC-Fee Income Report as it announces its reign in the Top 25 bank holding companies in America for insurance brokerage fee income.
Click here to read the BancorpSouth press release.
Back
to Top of Page
NEW CUSTOMIZABLE 'RATINGS REPORT' BENCHMARKS BANKS’ FEE INCOME
PERFORMANCE
May 10, 2005 - New customizable 'Ratings Report' benchmarks a bank's fee income performance in insurance brokerage, total insurance, investment, mutual fund and annuity, fiduciary activities, wealth management and total noninterest fee income.
Click here to read more about the customizable ratings report that benchmarks
banks' fee income performance.
Back
to Top of Page
BHCs EARN RECORD INSURANCE REVENUE
April 6, 2005 - U.S. bank holding companies earned a record $37.1 billion in insurance revenue in 2004, including $27.4 billion in insurance underwriting income and $9.6 billion in insurance brokerage fee income.
Click here to read more about BHCs earning record insurance revenue.
Back
to Top of Page
BANK INSURANCE BROKERAGE FEE INCOME JUMPS 22%
March 21, 2005 - Bank insurance brokerage fee income jumps 22% to record $3.6 billion – in 2004, total bank insurance brokerage fee income reached a record high of $3.6
billion.
Click
here to read more about the 22% jump in bank insurance brokerage fee income.
Back
to Top of Page
BANK MUTUAL FUND & ANNUITY FEE INCOME REACHES $5.6 BILLION
March 14, 2005 - Bank mutual fund and annuity fee income reaches $5.6 billion – in 2004, total bank mutual fund and annuity fee income inched 1.6% higher than in 2003, with the biggest banks benefiting the
most.
Click
here to read more about bank mutual fund & annuity fee income reaching $5.6 billion.
Back
to Top of Page
INSURANCE IS A BOON FOR BANKS
December 14, 2004 - Insurance is a boon for banks – in first three quarters of 2004, total insurance brokerage fee income was 21% higher than it was at the same time last year. MWA analyzes the data and reveals which banks benefited most from the
gain.
Click
here to read more about how insurance has become a boon for banks.
Back
to Top of Page
CITIGROUP, WELLS FARGO AND BB&T LEAD BHCS IN MUTUAL FUND & ANNUITY FEE INCOME
December 7, 2004 - CitiGroup, Wells Fargo and BB&T lead bank holding companies in mutual fund and annuity fee income at the end of the third quarter. We break down the numbers, and lists the mutual fund and annuity leaders in the first three quarters of 2004.
Click here to read more about how Citigroup, Wells Fargo and BB&T led BHCs in mutual fund & annuity fee
income.
Back
to Top of Page
CITIGROUP, WACHOVIA AND BANK OF AMERICA LEAD BHCS IN INSURANCE BROKERAGE FEE INCOME
November 30, 2004 - CitiGroup, Wachovia and Bank of America lead bank holding companies in insurance brokerage fee income at September 30, 2004. MWA reveals the fifteen top-performing bank holding companies in the first three quarters of 2004.
Click here to read more about how Citigroup, Wachovia and Bank of America led BHCs in insurance brokerage fee
income.
Back
to Top of Page
BANK INSURANCE BROKERAGE FEE INCOME UP 18.7% IN FIRST HALF 2004
September 21, 2004 - Bank Insurance Brokerage Fee Income Up 18.7% in First Half of 2004 Bank insurance brokerage fee income was up 18.7% year-to-date through June 30, 2004, compared to the same period in 2003. We take a look at the numbers, and at the fifteen top-performing banks in first half 2004.
Click here to read more about the 18.7% hike in bank insurance brokerage fee income.
Back
to Top of Page
BHC LEADERS IN MUTUAL FUND & ANNUITY FEE INCOME
September 1, 2004 - The bank holding company (BHC) leaders in mutual fund and annuity (MF&A) fee income for first half 2004 are announced. Preliminary data show CitiGroup taking top honors, followed by Wachovia and Bank of America. Twelve of the fifteen top-performing BHCs showed growth in MF&A income compared to last year. The rank list will be updated as new data become available, but this first look is a must-see.
Click here to read more about the BHC leaders in mutual fund & annuity fee income.
Back
to Top of Page
INSURANCE BROKERAGE FEE INCOME LEADERS ANNOUNCED
August 30, 2004 - Preliminary bank holding company (BHC) data for first half 2004 are in! MWA has analyzed these first-look data, and today reports the leaders among BHCs in insurance brokerage fee income for first half of 2004.
Click here to read more about the insurance brokerage fee income leaders.
Back
to Top of Page
BANK FINDS SUCCESS SELLING ANNUITIES AFTER DEVELOPING A PLAN OF ACTION WITH MWA
August 2004 - A York, PA bank finds success selling annuities after developing a plan of action in consultation with
MWA. Plan of Action, originally published in Independent Banker, August 2004.
Click here to read more about the bank that found success selling annuities after developing a plan of action with MWA.
Back
to Top of Page
BHC PROPRIETARY MUTUAL FUND & ANNUITY ASSETS DOWN
August 2, 2004 - Bank Holding Company proprietary mutual fund and annuity assets down 3.3% to $2.3 trillion in 2003.
Click here to read more about the fall in BHC proprietary mutual fund & annuity assets.
Back
to Top of Page
BHC INSURANCE UNDERWRITING INCOME UP
July 26, 2004 - Bank Holding Company insurance underwriting income up 2.0% to $25 billion in 2003.
Click here to read more about the rise in BHC insurance underwriting income.
Back
to Top of Page
BHC INVESTMENT FEE INCOME BREAKS RECORD
July 19, 2004 - Bank Holding Companies' investment fee income up 6.9% to record $41.9 billion in 2003.
Click here to read more about BHC investment fee income breaking records.
Back
to Top of Page
BHC INSURANCE AGENCY FEE INCOME UP 42.5%
July 12, 2004 - Bank Holding Companies' insurance agency fee income up 42.5% to record $8.4 billion in 2003.
Click here to read more about the rise in BHC insurance agency fee income.
Back
to Top of Page
BANKS RAKED IN RECORD EARNINGS FROM INSURANCE FEE INCOME
March 2004 - Banks raked in record earnings from insurance fee income in 2003, according to Michael White's newly-published 2003 Bank Insurance & Investment Fee Income Report.
Click here to read more about banks raking in record earnings from insurance fee income.
Back
to Top of Page
3Q BANK INSURANCE FEE INCOME DIPS SLIGHTLY
February 2004 - Bank Insurance Fee Income Dropped Slightly in Third Quarter 2003. Michael White's article examines the facts.
Click here to read more about the third quarter bank insurance fee income dip.
Back
to Top of Page
MORE BHCS ARE UNDERWRITING INSURANCE
January 2004 - More and more bank holding companies are underwriting insurance. Read about this new trend in Michael White's latest article.
Click here to read more about BHCs underwriting insurance.
Back
to Top of Page
BANKS' FEE INCOME RISES WHILE INVESTMENT FEE INCOME FALLS
September 2003 - Banks' fee income from investments fell in the first quarter while fee income from insurance rose - Michael White investigates the facts in his latest article.
Click here to read the article about rising banks fee income and falling investment fee income.
Back
to Top of Page
STUDY IN CONTRASTS
August 2003 - Michael White's latest article discusses the surprising contrast between the rise in banks' insurance fee income in 2002 with the dip in investment fee income during the same period.
Click here to read more about the rise in banks' insurance fee income with the dip in investment fee
income.
Back
to Top of Page
REPORT SHOWS 3% OF BANKS INVOLVED IN UNDERWRITING IN FIRST QUARTER
July 28, 2003 - For the first time U.S. banks reported insurance underwriting income and Michael White's latest article discusses how this new information reveals that insurance is big business for banks of all sizes.
Click here to read more about banks involved in underwriting in first quarter.
Back
to Top of Page
BANKS BOAST RECORD INSURANCE SALES IN 2002
April 22, 2003 - Insurance fee income earned by U.S. banks grew 17% to $3.5 billion in 2002, with banks over $10 billion in assets earning $2.6 billion, a 45% climb over 2001 numbers, according to Michael White Associates' newly-published 2002
Bank Insurance & Investment Fee Income Report.
Click here to find out more about banks' record insurance sales in 2002.
Back
to Top of Page
OTS URGES THRIFTS TO KEEP BOTH EYES OPEN WHEN HIRING THIRD PARTY CONTRACTORS
March 19, 2003 - The Office of Thrift Supervision has issued new guidance to thrifts urging them to use care and due diligence when hiring third party contractors and reminding them that "reduced financial and operational control over third-party activities poses additional risks."
Click here to read the OTS Thrift Bulletin regarding thrifts hiring third party contractors.
Back
to Top of Page
OCC LETTER DESCRIBES ITS AUTHORITY TO REGULATE NATIONAL BANKS
December 2, 2002 - The Office of the Comptroller of the Currency (OCC) has issued Advisory Letter 2002-9 describing the general principles that determine when state laws apply to national banks and describing the statutory authority of the OCC to regulate national banks.
Click here to read OCC Advisory Letter 2002-9 describing its authority to regulate national banks.
Back
to Top of Page
APPEALS COURT UPHOLDS OCC'S PREEMPTION OF WV BANK INSURANCE LAWS
November 22, 2002 - The U.S. Fourth Circuit Court of Appeals Wednesday upheld the Office of the Comptroller of the Currency's
(OCC) preemptive determination that West Virginia laws impacting bank insurance sales were too restrictive and did not comply with the provisions of the
Gramm-Leach-Bliley Act. The West Virginia insurance commissioner had challenged the OCC's preemption. A similar case is pending in Massachusetts.
Click here to read the appelate decision upholding the OCC's preemption of WV bank insurance laws.
Back
to Top of Page
OCC ISSUES NEW DEBT CANCELLATION AND DEBT SUSPENSION REGS
September 18, 2002 - The Office of the Comptroller of the Currency has adopted a new regulation adding consumer protections and establishing safety and soundness standards for debt cancellation contracts
(DCCs) and debt suspension agreements (DSAs). According to Comptroller of the Currency John D. Hawke, Jr., the disclosures are based on the OCC’s insurance sales consumer protection regulations. The rule will be published in the Federal Register September 19, 2002 and will take effect June 16, 2003.
To read the OCC’s new debt cancellation and debt suspension
rule, click
here.
Back
to Top of Page
MWA AND POWELL GOLDSTEIN FRAZER & MURPHY FORM BANK INSURANCE CONSULTING AND LEGAL SERVICES
ALLIANCE
May 29, 2002 - Michael White Associates, LLC (MWA) and the Financial Institutions Group of law firm Powell Goldstein Frazer & Murphy, LLP
(PGFM) have formed a strategic alliance to provide an integrated program of bank insurance consulting and legal services to community banks. PGFM Washington partner Len Rubin serves as general counsel for the Independent Community Bankers of America
(ICBA) and MWA is the preferred bank insurance consulting provider for that 5,000+ member organization.
Click here to read more about the MWA and Powell Goldstein Frazer & Murphy alliance.
Back
to Top of Page
ICBA PARTNERS WITH MICHAEL WHITE ASSOCIATES TO OFFER BANK INSURANCE CONSULTING
April 18, 2002 - The Independent Community Bankers of America (ICBA) is partnering with Michael White Associates, LLC
(MWA) to offer its 5,000 community bank members affordable bank insurance consulting products and services. MWA is the only consulting firm to have been selected as a preferred vendor by the
ICBA. MWA welcomes this vote of confidence and looks forward to working with the ICBA to help its members develop successful bank insurance sales programs, top line revenue and bottom line profits.
Back
to Top of Page
OCC SAYS GLB PREEMPTS MASSACHUSETTS INSURANCE
PROVISIONS
March 19, 2002 - The Office of the Comptroller of the Currency has concluded that three provisions in Massachusetts insurance law are pre-empted under the
Gramm-Leach-Bliley Act (GLB) Section 104 and do not apply to national banks. The Massachusetts Referral Prohibition prohibits non-licensed personnel from referring a customer to a licensed insurance agent unless the customer initiates an inquiry. The Massachusetts Referral Fee Prohibition prohibits banks from compensating non-licensed employees who make referrals, and the Massachusetts Waiting Period requirement prohibits banks from telling loan applicants that insurance products are available through the bank until their loan applications are approved. The three provisions are pre-empted and do not apply to national banks because they significantly interfere with the ability of banks or their affiliates to sell, solicit or cross-market insurance, the OCC found in an opinion published in the Federal Register.
Click here to read the OCC Massachusetts Preemption Determination.
Back
to Top of Page
AGENCIES ANSWER PRIVACY REGULATION QUESTIONS
December 13, 2001 - The Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency
(OCC) and Office of Thrift Supervision in consultation with the Commodity Futures Trading Commission, Federal Trade Commission and Securities & Exchange Commission yesterday issued guidance to Frequently Asked Questions
(FAQs) regarding these agencies' consumer privacy regulations which implement
Gramm-Leach-Bliley and which have been in effect since July 1, 2001. The OCC has issued a "Small Bank Compliance Guide," which includes an overview, summary and checklist in addition to the combined agencies
FAQs, in order to help community banks comply with the rules.
Click here to access the OCC Small Bank Compliance Guide.
Back
to Top of Page
GLBA PREEMPTS PROVISIONS IN WV INSURANCE SALES CONSUMER PROTECTION ACT
October 4, 2001 - The Office of the Comptroller of the Currency (OCC) has determined that four provisions in the West Virginia Insurance Sales Consumer Protection Act are preempted under the
Gramm-Leach-Bliley Act (GLBA) and do not apply to national banks. The preempted sections are as follows: 1) provisions requiring financial institutions to use separate employees for insurance sales; 2) restrictions on the timing of bank employee referral or solicitation of insurance business from customers with loan applications pending with the bank; 3) restrictions on sharing with bank affiliates information acquired by a financial institution in the course of a loan transaction; 4) a requirement that financial institutions segregate the place of solicitation or sale of insurance so that it is readily distinguishable as separate and distinct from the deposit-taking and lending areas. The manner and timing of disclosures in Section 9a of the West Virginia law are also preempted.
Click here to read the OCC decision that GLBA preempts provisions in WV Insurance
Sales Consumer Protection Act.
Back
to Top of Page
AGENCIES ISSUE GUIDANCE ON SECTION 305 OF GLB ACT
September 17, 2001 - The Office of the Comptroller of the Currency (OCC), Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift Supervision
(OTS) have issued their response for guidance on specific questions regarding the Final Rules implementing Section 305 of the
Gramm-Leach-Bliley Act that take effect October 1, 2001.
Click here to read the joint response by the banking agencies to questions asked by the American Bankers Association and the American Bankers Insurance
Association.
Back
to Top of Page
TX BILL WILL ALLOW STATE BANKS TO COMPETE ON A LEVEL WITH NATIONAL BANKS
August 20, 2001 - Texas H.B. 2155 was passed by the state legislature in May, signed into law by the governor in June and becomes effective September 1, 2001. The bill is designed to ensure the viability of Texas state bank and trust company charters and responds to
Gramm-Leach-Bliley’s (GLB) expansion of national bank activities and pre-emption of certain state laws.
H.B. 2155 authorizes activities for these state-chartered institutions beyond those allowed for national banks and their subsidiaries and gives the Texas banking commissioner authority to allow the state-chartered entities to compete on a level with national
banks.
Click here to read TX
H.B.2155 that would allow state banks to compete on a level with national banks.
Back
to Top of Page
FED, OCC AND FDIC LAY INTO SEC'S 'UNWARRANTED' AND 'BURDENSOME' INTERIM FINAL RULES
July 3, 2001 - The Federal Reserve Board (FRB), the Office of the Comptroller of the Currency
(OCC) and the Federal Deposit Insurance Corporation (FDIC) have sent a blistering letter to the Securities & Exchange Commission (SEC) highly critical of the SEC's Interim Final Rules for the implementation of
Gramm-Leach-Bliley Act provisions, urging the SEC to stop July 1, 2001 implementation and reconsider. These rules deal with trust and investment programs run by or on behalf of banks. The bank regulators note the Rules were issued without public comment in a way that was "fundamentally unfair and inconsistent with sound administrative practice." As a result, the Rules "are premised on misunderstandings of how certain activities are conducted by banks" and impose costs on banks and consumers that are "wholly unwarranted."
The Rules, the bank regulators say, "create an extremely burdensome regime of overly complex, costly, and unworkable requirements" that are "fundamentally inconsistent with the principles of functional regulation that underlie the GLB Act" and place banks "in an untenable position." The regulators assert "it is wrong to require banks to establish procedures to comply with Interim Final Rules" given their "critical flaws."
The FRB, OCC and FDIC urge the SEC to "immediately ... treat the Interim Final Rules as proposed rules" and address the concerns of the bank regulators, the banking industry and the public. The FRB, OCC and FDIC call on the SEC to "immediately further extend the effective date of the GLB Act's push-out provisions" until after the proposed rules are amended, and they ask the SEC to give banks at least a one-year transition period to bring their
operations into compliance with the final rules.
Click here to read the FRB, OCC and FDIC comments on the SEC's Interim Final
Rules.
Click here to read the Appendix to the comments.
Back
to Top of Page
OCC REQUESTS COMMENTS ON DEBT CANCELLATION CONTRACTS AND SUSPENSION AGREEMENTS
May 11, 2001 - The OCC is requesting comments due June 18, 2001 on a proposed rule that establishes standards regarding a national bank's provision of debt cancellation contracts
(DCCs) and debt suspension agreements (DSAs). The proposed rule also focuses on facilitating customers' informed choice about DCCs and
DSAs.
Click here to read the OCC's proposed debt cancellation contracts and suspension agreements
rule in the Federal Register.
Back
to Top of Page
INSURED STATE BANKS GET FINAL RULE FROM FDIC
January 5, 2001 - Effective today, the FDIC is adopting a final rule to implement certain provisions of the
Gramm-Leach-Bliley Act, governing activities and investments of insured state banks. Under the final rule, the FDIC adopts a streamlined certification process for insured state nonmember banks to follow before they may conduct activities as principal through a financial subsidiary. State nonmember banks will self-certify that they meet the requirements to carry out these activities, which will allow the banks to conduct the new activities immediately. There will be no delay for administrative approval or review, although the FDIC will evaluate these activities as part of its normal supervision process for safety and soundness standards pursuant to the FDIC's authority under section 8 of the Federal Deposit Insurance Act. The final rule confirms, with modifications, an interim rule that has been in effect since March 11, 2000. To eliminate unnecessary provisions and make technical amendments, the FDIC also has revised its rule implementing sections 24 and 18(m) of the FDI Act dealing with other activities and investments of insured state banks.
Click here to read the final rule governing insured state banks from the
FDIC in the Federal Register.
Back
to Top of Page
FINAL GLB CONSUMER PROTECTION RULES FOR
INSURANCE
December 5, 2000 - The Board of Governors of the Federal Reserve System, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and the Office of Thrift Supervision announced final consumer protection rules for the sale of insurance products by depository institutions. The rule is effective on April 1, 2001. (Editors Note: It has since been deferred until October 1, 2001.)
The final rule applies to any depository institution or any person selling, soliciting, advertising, or offering insurance products or annuities to a consumer at an office of the institution or on behalf of the institution.
According to the rule, depository institutions must keep insurance and annuity sales activities physically segregated from the areas where retail deposits are routinely accepted from the general public. Any referral fees paid to bank employees that refer a consumer who seeks to purchase an insurance product or annuity may be no more than a one-time, nominal fee that does not depend on whether the referral results in a transaction.
Persons who sell insurance products or annuities must be qualified and licensed under applicable state insurance licensing standards.
Additionally, the rule requires that the following disclosures be made:
The insurance product or annuity is not a deposit or other obligation of, or guaranteed by, the depository institution or its affiliate;
The insurance product or annuity is not insured by the FDIC or any other agency of the United States, the depository institution or its affiliate;
In the case of an insurance product or annuity that involves an investment risk, there is investment risk associated with the product, including the possible loss of value; and
The depository institution may not condition an extension of credit on the consumer’s purchase of an insurance product or annuity from the depository institution or from any of its affiliates, or on the consumer’s agreement not to obtain, or a prohibition on the consumer from obtaining, an insurance product or annuity from an unaffiliated
entity.
Click here to read the Final GLB Rules on Consumer Protections for Depository Institution Sales of
Insurance.
Back
to Top of Page
OTS PROPOSES NEW RULES FOR HOLDING COMPANIES WITH THRIFT SUBSIDIARIES
October 27, 2000 - The Office of Thrift Supervision (OTS) issued a proposal Wednesday that will require savings and loan holding companies with consolidated subsidiary thrift assets that comprise 20% or more of total assets or consolidated holding companies with capital equal to less than 10% to notify the OTS 30 days before undertaking “certain significant new business activities” that could increase holding company debt, substantially reduce capital or “involve certain asset acquisitions.” The proposal is published in the Federal
Register.
To read the OTS
proposal for new rules for holding companies with thrift subsidiaries, click
here.
Back
to Top of Page
NCUA PROPOSES CREDIT REPORTING RULES FOR CREDIT UNIONS
October 27, 2000 - The National Credit Union Administration (NCUA) yesterday published proposed regulations to implement provisions of the Fair Credit Reporting Act that allow federal credit unions to communicate information to their affiliates without incurring the obligations of consumer reporting agencies. The proposed regulations explain how to comply with affiliate information provisions including content and notice to consumers and are intended to implement the privacy provisions of the
Gramm-Leach-Bliley Act. The proposal is published in the Federal Register.
To read the NCUA proposed credit reporting rules for credit unions, click HERE.
Back
to Top of Page
FINAL CONSUMER FINANCIAL PRIVACY REGULATIONS
APPROVED
May 10, 2000 - The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision approved and issued the final regulations implementing the provisions of the
Gramm-Leach-Bliley Act governing the privacy of consumer financial information.
Under the interagency effort, the regulations impose three main requirements established by the Act:
Financial institutions must provide initial notices to customers about their privacy policies, describing the conditions under which they may disclose nonpublic personal information to nonaffiliated third parties and affiliates. These notices must be accurate, clear, and conspicuous.
Financial institutions must provide annual notices of their privacy policies to their current customers. These notices must be accurate, clear, and conspicuous.
Financial institutions must provide a reasonable method for consumers to “opt out” of disclosures to nonaffiliated third parties. That is, consumers must be given a reasonable opportunity to “opt out” and a reasonable means to do so. Consumers may exercise their “opt out” option at any time. The regulations, which are identical in all substantive respects, apply to financial institutions for which the agencies have primary supervisory authority. The regulations limit disclosure by financial institutions of “nonpublic personal information” about individuals who obtain financial products or services for personal, family, or household purposes. Subject to certain exceptions allowed by law, the regulations cover information sharing between financial institutions and nonaffiliated third parties. The regulations are effective November 13, 2000, but in order to provide sufficient time for financial institutions to establish policies and procedures and to put in place systems to implement the requirements of the regulations, the time for full compliance with the regulations is extended until July 1, 2001.
To read the regulations in their entirety, click here - Final Regulations for Privacy of Consumer Financial
Information.
Back
to Top of Page
GENE A. LUDWIG RECEIVES FIIA
RAIKEN-SENDER BANK INSURANCE INDUSTRY AWARD
April 17, 2000 - The Financial Institutions Insurance Association (FIIA) awarded Eugene A. Ludwig, Managing Partner of Promontory Capital Group, LLC, and Comptroller of the Currency from 1993-98, the year 2000 FIIA Allen L.
Raiken-Stanton P. Sender Bank Insurance Industry Award. Dr. Michael D. White, FIIA Director and Chairman of the Association’s Honors Committee, presented the Award to Mr. Ludwig at the Association’s 12th annual convention on April 17 at the Bellagio Hotel in Las Vegas,
Nevada.
Dr. White’s presentation, “Gene Ludwig, ‘The Minuteman of Bank
Insurance,’” drew on parallels among Mr. Ludwig’s fight for bank insurance powers, his hometown origins and the 225th anniversary of the battles of Lexington and Concord where “was fired the shot heard round the
world."
Following the award presentation, Mr. Ludwig delivered the convention’s keynote address in which he outlined four great challenges in the future to the bank sales of insurance.
Back
to Top of Page
CURIOUS? FED ANNOUNCES NEW FINANCIAL HOLDING COMPANIES UNDER
GLB. MORE THAN 2/3 OF APPLICANTS HAVE LESS THAN $1 BILLION IN ASSETS
March 13, 2000 - The Federal Reserve Board announced that the election of 117 bank holding companies to become or be treated as Financial Holding Companies under the
Gramm-Leach-Bliley Act were effective as of March 13, 2000.
In his remarks before the Independent Community Bankers of America in San Antonio on March 8, Fed Chairman Alan Greenspan addressed the misperception that GLB only opens doors for big banks when he said, "Although some perceive that new powers available through the
Gramm-Leach-Bliley Act fall exclusively in the domain of large bank holding companies, such opportunities are available to community-based organizations as well. Indeed, more than two-thirds of the applications to form financial holding companies have come from companies with total assets of less than $1 billion."
Click here to view the NEW - REGULARLY UPDATED Fed List of New Financial Holding Companies under
GLB.
Back
to Top of Page
GRAMM-LEACH-BLILEY ACT AND ANALYSIS
Familiarize yourself with the new financial services modernization law,
the Gramm-Leach-Bliley Act or GLB Act, signed into law on November 12,
1999.
Then, read about the GLB Act’s significance for the banking sector and the financial services industry in general. Three law firms have provided BankInsurance.Com with white papers that analyze key provisions of the law and address its significance for banking organizations, operating and financial subsidiaries of national banks, and the new financial services holding companies that can house banks, insurance companies and securities firms under one roof.
Stradley Ronon’s white paper addresses GLB’s significance for commercial banks and bank holding
companies.
Morgan, Lewis & Bockius describes GLB’s structural reform of the financial services
industry.
Squire, Sanders & Dempsey’s executive summary also answers frequently asked questions about
GLB.
Back
to Top of Page
NEW FED RULE OUTLINES
HOW-TOs FOR FINANCIAL HOLDING COMPANIES
January 19, 2000 - The Federal Reserve Board announced on January 19, its approval of an interim rule outlining procedures for bank holding companies and others to elect to be treated as financial holding companies. Under Title I of the newly-enacted
Gramm-Leach-Bliley Act, financial holding companies may engage in a broad range of securities, insurance, and other financial activities.
The Fed also announced that those companies filing their elections to be treated as financial holding companies prior to February 15, 2000 will most likely receive action from the Fed by March 13, 2000, the first business day following the effective date of the financial holding company provisions of the
Gramm-Leach-Bliley Act.
The Office of the Comptroller of the Currency separately announced it would propose rules for national banks wanting to take advantage of the new law by setting up financial subsidiaries to sell products and services they had previously been restricted from offering.
Click here for the full text of the Fed Rule outlining How-Tos for Financial
Holding Companies or the OCC Proposal.
Back
to Top of Page
TEXAS PROVIDES INTERIM GUIDELINES FOR
BANK INSURANCE LICENSING IN WAKE OF GRAMM-LEACH-BLILEY PREEMPTION
January 18, 2000 - Texas Insurance Commissioner Jose Montemayor announced Tuesday the state's provision of interim guidelines for the licensing of depository institutions and other affiliated entities as insurance agents in Texas in compliance with the provisions of the
Gramm-Leach-Bliley Act. The insurance commissioner described the interim guidelines as a "response to a spate of recent inquiries" concerning the new legislation.
Click here to read the TX Commissioner's
Bulletin.
Back
to Top of Page
BACK
TO PAGE ONE OF BANK INSURANCE INDUSTRY ANALYSIS
|
