Release Date: September 5, 2008
For immediate release
The Federal Reserve Board on Friday issued a joint supervisory and consumer affairs letter that encourages banking organizations to work with borrowers and customers in communities affected by Hurricane Gustav or any subsequent storms.
The letter reaffirms the Federal Reserve's long-standing policy of using available regulatory flexibility to facilitate the recovery efforts of banks serving areas that experience damage caused by hurricanes. Banking organization's efforts to work with borrowers in communities under stress, if conducted in a reasonable manner, are consistent with safe and sound banking practice, may contribute to the health and recovery of the local communities, and are in the public interest.
Banking organizations supervised by the Federal Reserve are encouraged to work with Reserve Bank supervisory and operations staff to resolve any weather-related operating problems.
The Board's letter is attached.