Credit cards and overdraft services are the targets of a major new regulatory effort. The three agencies that define unfair or deceptive acts or practices for depository institutions — the Federal Reserve Board, Office of Thrift Supervision, and the National Credit Union Administration — have jointly proposed a new regulation to declare a number of common practices to be violations of the Federal Trade Commission Act. The proposal targets practices that the agencies say “have raised concern about fairness and transparency.”

The Credit and Debit Card Receipt Clarification Act unanimously passed in the Senate on May 20, a week after the legislation accomplished the same feat in the House. President Bush will sign the bill shortly.

Almost half of banking executives (49 percent) are concerned that recent credit issues will have an adverse impact on their bank, according to Grant Thornton LLP’s 15th Bank Executive Survey. Reflecting this concern, less than half (46 percent) of bankers participating in the survey have confidence in the appraisals supporting loans underwritten by their bank and just 22 percent expressed confidence in the appraisals supporting loans the bank purchases.

Under the National Bank Act, an officer serves at the pleasure of the board of directors. See 12 U.S.C. § 24(fifth). This “at pleasure” provision gives the board of directors the power to discharge a bank officer at any time with or without cause and without fear of liability. In a recent decision, however, the South Dakota Supreme Court has held that a discharged bank officer can bring a retaliatory discharge claim against her former employee.