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A Message to Our Readers
As I reflect on the past year, one thing is
certain: The condition of
the U.S. banking system is healthy. Industry speaking, earnings and
asset-quality ratios were strong in 2005. More than 90 percent of FDIC-insured
institutions were “well capitalized.” The number of problem
banks was low, and there hasn’t been a bank
failure since June of 2004. .... to
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Automobile
Manufacturing Employment in the Fourth District
Banking
industry concerns about the automobile manufacturing industry extend beyond
an institution’s direct credit or investment exposure; organizations
could experience indirect negative effects from continued plant closings and
layoffs. The loss of automobile manufacturing jobs may... to
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Benefits
of Leveraging the Work of Sarbanes-Oxley
Without a doubt, the Sarbanes-Oxley
Act of 2002 is lengthy, detailed, and complex. Regarding the financial
burden of compliance, especially at small companies, there has been
much discussion on the cost versus benefit of the Act’s objective
to “protect investors by improving the accuracy and reliability
of corporate disclosures made pursuant to the securities laws." ... to
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Board
Minutes Becoming More Heavily Scrutinized
Since
at least 2002, corporate America has been under a magnifying glass.
Investors and regulators are increasingly interested in the governance
practices of U.S. companies, and they are quick to criticize companies
whose governance practices are not up-to-par. Of course, identifying
..... to
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Environmental
Risks and Mitigation
Environmental hazards in a bank’s commercial
real estate loan portfolio can be a source of high risk and potential
liability. Problems can exist in any type of property, including raw
land, multifamily, office buildings, industrial, and warehouses, and
can be found in asbestos insulation, underground storage tanks, septic-tank
systems, oil and gas wells, and wetlands...... to
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Information-Technology
Threats are Evolving
Technology risk remains at a heightened level
as threats to privacy and confidentiality continue to rise and
further pilfer the Internet. Most notably, there has been a shift
in the threat landscape from larger-scale network- perimeter
attacks to smaller, more ... to
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The
Risks Associated with Electronic Payments
Electronic payments are
steadily replacing traditional vehicles like currency and the
paper check as a preferred means of payment in the United States
. Card payments — credit and debit — are responsible
for most of the payment-vehicle substitution in which consumers
and businesses are engaged. . ... to
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Regulatory
Update: Federal Reserve and Interagency Actions
The Board of Governors of the Federal Reserve System regularly issues supervision and regulation letters to assist regulators in their supervisory duties and to provide guidance to bankers on complying with regulations or enhancing their risk-management practices. The following supervision and regulation letters have been issued since October 1, 2005.... to
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©Federal
Reserve Bank of Cleveland
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