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NEW BANKING INDUSTRY DEPOSIT DISCLOSURE RULES ADOPTED BY FEDERAL RESERVE BOARD

 NEW BANKING INDUSTRY DEPOSIT DISCLOSURE RULES
 ADOPTED BY FEDERAL RESERVE BOARD
 PHILADELPHIA, Sept. 14 /PRNewswire/ -- In a controversial 3-2 decision, the Federal Reserve Board has adopted regulations to implement the new banking deposit disclosure rules mandated by the Truth-in-Savings Act of 1991.
 The new regulations will require depository institutions to notify account holders about truth-in-savings disclosure information such as the yields, fees and penalties on all interest bearing accounts. It will also require many banks to change the way they calculate interest and advertise rates. Banking institutions will now have to give 30 days notice to customers before reducing rates on certain deposit accounts. Banks will also have to use the "annual percentage yield" as the standard for advertising deposit rates.
 "Even though these new disclosure requirements will cost the banking industry millions of dollars to implement, the Federal Reserve had little choice in voting to approve these regulations," said Alan Kaplinsky, a senior partner at Wolf, Block, Schorr and Solis-Cohen and the head of the firm's Financial Institutions Practice Group.
 "Banking institutions will now have to be much more aggressive in notifying their customers and prospective customers about their rates, fees and penalties," said John L. Culhane Jr., a senior associate at Wolf, Block. "Although these new rules are very burdensome to banking institutions, they will make life a little bit easier for banking customers."
 In June of 1992, Kaplinsky and Culhane participated in a series of seminars sponsored by the Pennsylvania Bankers Association which discussed the proposed Truth-in-Savings regulations. Officials of the Federal Reserve Bank of Philadelphia also participated in the seminars.
 Kaplinsky, who is the immediate past chairman of the American Bar Association's Committee on Consumer Financial Services, is a nationally known authority on banking law and consumer finance issues. He has written extensively on the impact of usury laws. He has also served as an adjunct professor at the University of Pennsylvania Law School and as a lecturer-in-law at the Temple University Law School.
 Culhane, the current chairman of the American Bar Association subcommittee that covers credit discrimination issues, frequently speaks and writes about financial institution issues and has published articles in The Business Lawyer, Commercial Lending Review, BNA Lender Liability Report, CFI Compliance News and ABA Bank Compliance.
 For more information about the Federal Reserve Board decision and its impact on the banking industry, place contact Kaplinsky at 215-977-2144, or Culhane at 215-977-2136.
 /delval/
 -0- 9/14/92
 /CONTACT: Scott Allocco of Earle Palmer Brown & Spiro, 215-851-9525, for Wolf, Block, Schorr and Solis-Cohen/ CO: Wolf, Block, Schorr and Solis-Cohen; Federal Reserve Bank ST: Pennsylvania IN: FIN SU:


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Date:Sep 14, 1992
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