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Article: Has risk of check fraud grown? Many banks think so, but link to Fed rule is unclear. (American Bankers Association study of the effects of Federal Reserve Board Regulation CC on banks)
- Article from:
- American Banker
- Article date:
- October 30, 1992
- Author:
CopyrightCOPYRIGHT 1992 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Nearly half of banks say their exposure to check fraud has increased since Federal regulations been mandating accelerated availability of funds, according to an American Bankers Association study.
Despite this, most of the 459 banks surveyed are clearing checks a day earlier than they need to under the rules - in order to keep customers happy and to compete with rivals.
The findings make it difficult for the ABA to make a case that the Federal Reserve's controversial Regulation CC has hurt banks, said Robert B. McDonald, executive vice president of Riggs National Bank and a member of the task force that conducted the study.
Competitive ...