Proposed Actions - Brief Article

Federal Reserve Bulletin, Sept, 2000

The Federal Reserve Board on July 31, 2000, requested public comment on a proposed rule that would allow financial holding companies to act as a "finder" by bringing together buyers and sellers of financial and nonfinancial products for transactions that the buyers and sellers themselves negotiate and consummate. Comments will be accepted until September 5, 2000.

The proposed rule, which was developed in consultation with the Secretary of the Treasury, would allow financial holding companies to, among other things, host an Internet marketplace consisting of links to the web sites of third-party buyers and sellers. The rule would also permit financial holding companies to operate a web site that allows buyers and sellers to post information about the products and services they are willing to buy and sell and to enter into transactions among themselves.

The Federal Reserve Board on July 7, 2000, requested comment on proposed revisions to Regulation E (Electronic Fund Transfers) to implement provisions of the Gramm-Leach-Bliley Act (GLBA) requiring disclosure of automated teller machine (ATM) fees. Comments are due by August 18, 2000.

The GLBA amends the Electronic Fund Transfer Act by requiring ATM operators that impose fees on consumers who hold accounts at other institutions to post a prominent and conspicuous notice of that fact on or near the ATM. Before the consumer is committed to completing the transaction, ATM operators must also disclose the existence of and the amount of the fee, either on the ATM screen or on a paper notice. Many financial institutions that impose ATM fees already disclose the information required by the GLBA to satisfy existing regulatory and ATM network requirements.