Press Room
 

To view or print the PDF content on this page, download the free Adobe® Acrobat® Reader®.

September 14, 2001
po-616

TREASURY SECRETARY PAUL O'NEILL PRAISES REGULATORS' ACTIONS FOLLOWING DISASTER

WASHINGTON, DC -- U.S. Treasury Secretary Paul H. O'Neill today lauded a series of steps financial regulators have undertaken to ensure the efficient operation of U.S. financial markets in the wake of Tuesday's terrorist attack on Manhattan's financial district.

"The regulatory community has responded swiftly and prudently in providing relief for financial market participants affected by Tuesday's disaster," said O'Neill. Regulators continue to closely monitor the situation and will continue to provide relief measures they deem appropriate."

Actions taken to date include:

Customer Relief: The Federal Reserve Board (FRB), the Office of the Comptroller of the Currency (OCC), the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) have issued guidance to their regulated institutions requesting that they undertake prudent efforts to work with customers impacted by Tuesday's events, or by resulting delays in mail delivery. These efforts include waiving late payment fees, extending loan terms, restructuring debt obligations, and easing credit terms where a customer has a demonstrable need resulting from the events of September 11.

Safety and Soundness: The FRB, OCC, OTS, and FDIC have also issued joint interagency guidance urging their regulated institutions to contact them if the events of September 11 have created temporary balance sheet growth through, for example, unusual draws on existing lines of credit by corporate borrowers. Such growth can cause a temporary decline in regulatory capital ratios.

Equity Markets: The Securities Exchange Commission has undertaken a number of regulatory relief measures in preparation for Monday's re-opening of the stock markets. These include providing relief under Rule 10b-18 which provides a safe harbor from liability for manipulation in connection with purchases by an issuer of its own stock. The relief will give issuers greater latitude to provide buy side liquidity when the markets reopen on Monday. The SEC has also announced revisions to Rule 16b to facilitate certain purchases by persons subject to that rule during trading next week.

Futures Markets: The Commodity Futures Trading Commission (CFTC) has worked closely with the SEC and bank regulators to address intermarket coordination issues and facilitate an orderly re-opening of equity futures markets when the primary stock markets re-open. Trading in non-equity-based contracts has already resumed on the Chicago and other midwestern futures exchanges. The CFTC continues to be in close communication with the New York futures exchanges to support their efforts toward safe, orderly resumption of trading in contracts based on energy products, metals, agricultural, and other commodities.

Information on these initiatives and other issuances related to the events of September 11 have been posted on the financial regulatory agencies' websites and are linked below. Also linked below are the Treasury Department's own recent releases related to September 11.

Links to Issuances by Financial Regulatory Agencies

Office of the Comptroller of the Currency

September 14, 2001 press release on interagency statement concerning possible temporary balance sheet growth:

http://www.occ.treas.gov/ftp/release/2001-82.txt

September 14, 2001 joint interagency statement on possible temporary balance sheet growth:

http://www.occ.treas.gov/ftp/release/2001-82a.txt

September 12, 2001 press release encouraging national banks to work with customers affected by terrorist attacks:

http://www.occ.treas.gov/ftp/release/2001-79.txt

August 3, 1998 bulletin to chief executive officers of national banks encouraging national banks to work with communities affected by man-made or natural disasters:

http://www.occ.treas.gov/ftp/bulletin/98-34.txt

September 11, 2001 press release concerning the Comptroller's proclamation allowing national bank offices affected by the emergency situation to close at their discretion:

http://www.occ.treas.gov/ftp/release/2001-78.txt

September 11, 2001 proclamation:

http://www.occ.treas.gov/ftp/release/2001-78a.pdf

 

Office of Thrift Supervision

Federal Deposit Insurance Corporation

September 13, 2001 guidance to examiners on supervisory flexibility due to the attacks:

September 12, 2001 press release on the status of FDIC and its employees:

September 11, 2001 press release stating that the deposit insurance system is functioning in full force:

Federal Reserve Board

September 14, 2001 press release on the agreement between the Federal Reserve and the Bank of England on a temporary swap facility to facilitate the functioning of the financial markets:

http://www.federalreserve.gov/boarddocs/press/general/2001/200109144/default.htm

September 14, 2001 press release encouraging state member banks and bank holding companies to work with customers affected by the attacks:

September 14, 2001 joint interagency statement on possible temporary balance sheet growth:

September 14, 2001 press release on the agreement between the Federal Reserve and the Bank of Canada to temporarily augment their existing swap facility to facilitate the functioning of the financial markets:

September 13, 2001 press release on the agreement between the Federal Reserve and the European Central Bank on a swap arrangement to facilitate the functioning of the financial markets:

September 11, 2001 press release stating that the Federal Reserve System is open and operating, and the discount window is available to meet liquidity needs.

National Credit Union Administration

September 12, 2001 press release stating that the NCUA has activated its disaster relief policy to assist credit unions and their members in New York City and Arlington, VA:

September 11, 2001 statement by NCUA Acting Chairman Dennis Dollar:

Securities and Exchange Commission

Commodity Futures Trading Commission

September 12, 2001 press release on the closing of the securities and futures markets:

Links to Other Treasury and IRS Issuances

September 14, 2001 Press Release Announcing that Treasury Waives Penalties for State and Local Government Securities Customers:

September 14 New IRS Publication About Providing Assistance for Disaster Relief Through Charitable Organizations:

September 13, 2001 Treasury and IRS Press Release Announcing Disaster Relief for Taxpayers Affected by the September 11 Terrorist Attack:

September 13, 2001 Notice on Disaster relief for taxpayers affected by the September 11, 2001 Terrorist Attack: