IBT News Blog

This article discusses the expansion of several Lebanese banking operations to neighboring countries. See http://www.ft.com/cms/s/0/20702b64-114a-11dd-a93b-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=fc3334c0-2f7a-11da-8b51-00000e2511c8,print=no,_i_email=y.html

The cost of farm land in Europe has risen to a new high level. See http://www.ft.com/cms/s/0/55c8dc0c-1159-11dd-a93b-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=3ee7fd72-e9dd-11dc-b3c9-0000779fd2ac,print=no,_i_email=y.html

This article discusses the impact of freeing trade between the US and the Dominican Republic on the Dominican Republic. See http://www.ft.com/cms/s/0/1ec611da-116c-11dd-a93b-0000779fd2ac,noOfParas=2,emailFormat=plainText,storyType=ultralight,dwp_uuid=a22ad130-8ad8-11db-8940-0000779e2340,print=no,_i_email=y.html

This article discusses Mexico and Canada's support for US efforts to expand NAFTA and the controversy over expanding NAFTA. See http://www.iht.com/articles/2008/04/23/america/23trade.php

The government of Macau is ceasing allowing an increase in gambling operations despite these operations being extremely lucrative to the state as a whole. See http://news.bbc.co.uk/go/em/fr/-/2/hi/asia-pacific/7362683.stm

The leaders of four Latin American countries have devised an agreement to control the costs of food within their countries. See http://news.bbc.co.uk/go/em/fr/-/2/hi/americas/7364153.stm

New information indicates that the rate of business morale in France and Germany have declined. See http://www.iht.com/articles/2008/04/24/business/gcon.php

The Office of the Comptroller of the Currency (OCC) was established in 1863 as a bureau of the US Department of the Treasury. The OCC charters, regulates and supervises all national banks. Furthermore, it supervises the federal branches and agencies of foreign banks.

Typical to many government agencies, the OCC performs quasi-legislative and quasi-judicial functions. It has the authority to issue agency rules, legal interpretations, and corporate decisions concerning banking, bank investments, bank community development activities, and other aspects of bank operations.

The OCC activities are based upon four objectives: 1) to ensure the safety and soundness of the national banking system; 2) to encourage competition by allowing banks to offer new products and services; 3) improving the efficiency and effectiveness of the OCC; and 4) to ensure fair and equal access to financial services of all Americans.

http://www.occ.treas.gov/aboutocc.htm

Recently, the OCC announced the creation of a new group to focus on international supervision, stating that "International banking issues have grown increasingly important to the OCC and the national banking system."

http://www.occ.treas.gov/ftp/release/2008-37.htm

This could raise several questions concerning increased political administration in private banking issues. Essentially, since the OCC has the authority to pass regulations and enforce them upon national banks, it has the ability to affect how national banks engage in international agreements.

Suppose that the President decides that it does not condone political activity in Cuba. To foreclose investment in tandem with US banks, the President orders the OCC to scrutinize prospective banks who are in communications with Cuban investors. Effectively, without formal action or accountability, the executive can unilaterally prevent private investment activity to further unrelated agendas.

Granted, perhaps that is a very cynical view, but in my opinion it is not that improbable for the Executive to exercise his influence in that matter. Do you agree that this could create an avenue for underhanded political activity in international banking? Or do you think that the creation of the new group on international activity in OCC will ultimately lead to better coordinated and more profitable investment activity while protecting the banking industry within the United States?

submitted by: Brian