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Monday p.m. Update: Another Record Plunge; Global Markets Show Strain

The passage of the $700 billion bailout of Wall Street didn't have the desired effect on the world's stock markets, as they all suffered through another traumatic session on Monday. The Dow Jones industrials plunged as much as 800 points, setting a new record for a one-day point drop.

Investors watched with baited breath as despair over the credit crisis spreading globally hit home. The Dow fell below 10,000 for the first time since 2004, and regained some of the 800 point loss, closing at -369.88 at the closing bell.

PCI Data Security Standard Updated

The Payment Card Industry (PCI) has released its newest version of its data security standards (PCI-DSS). The version is designed to help protect transmitted charge and debit card information, and spells out a comprehensive vulnerability management program.

While not a banking regulatory standard, PCI was developed by the founding payment brands of the PCI Security Standards Council, including American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. Inc. International. It is a standard with which many banking institutions comply.

ID Theft Red Flags: The 3 Questions You Must Answer by Nov. 1

It's the 11th Hour; Do You Have Your Board's Approval Yet?
It's officially the 11th hour.

The deadline for compliance with the Identity Theft Red Flags Rule is less than one month away, and financial institutions are scrambling to meet it.

Yet, a new study from Tower Group, the financial services research firm, predicts that less than one-third of institutions will be compliant by Nov. 1.

As institutions await Nov. 1 and further clarity from their regulators, here are three key compliance questions they must answer for themselves:

Modern History: Overview of the Month that Changed Banking

We just saw banking history being created.

It isn't over yet, the reshaping of the U.S. financial services landscape, but when you look back on the seismic changes that occurred in September, you appreciate that we have indeed just experienced a series of events unlike any since the Great Depression. It seems every time we ask "What can happen next?" we get a shocking, historic response. Witness: Today's announcement that Wells Fargo, not Citigroup, will acquire Wachovia.

To put the month's news in perspective, consider:

Wachovia to be Acquired by Wells Fargo for $15.1 Billion?

News Update: Bailout Bill Signed by Bush; New Credit Union Chartered
In a stunning move announced early Friday morning, Wells Fargo & Company (NYSE:WFC) and Wachovia Corporation (NYSE:WB) have signed a definitive agreement to merge their operations in a stock-for-stock transaction requiring no government assistance.

This merger is a 180-degree turnaround from the news announced earlier this week by the FDIC, which had facilitated an agreement for Citigroup (NYSE: C) to negotiate the acquisition of only Wachovia's banking subsidiaries.

Thursday Update: Bailout Clears Senate; Another Credit Union Closes

Two days after the House narrowly rejected the Bush Administration's proposed $7 billion financial market bailout, the U.S. Senate on Wednesday approved an amended version of the bill.

By a 74-25 vote, the Senate gave thumbs-up to an aid package that includes new "sweeteners" to attract House critics - i.e. middle class and corporate tax breaks, as well as a one-year increase in the federal insurance on individual bank deposits from $100,000 to $250,000.

Economic Update - Bailout Bill Goes to Senate

A quick update on economic events since Tuesday ...

The stock market rose on Tuesday on news that the work on the revised $7 billion financial market bailout bill looked promising. This was one day after the biggest point drop in its history.

Economic Update: Back to the Table with Bailout Talks

A quick update on economic events since Monday morning ...

After the $700 billion bailout bill didn't pass in the House, the blame game began with finger-pointing and political posturing from both parties. Without much room to maneuver, the Senate will attempt to salvage the $700 billion financial-rescue package when it reconvenes on Thursday. Behind the scenes meetings haven't yielded much progress on Tuesday.

Economy in Crisis: 3 Tips for Easing Customer, Employee Concerns

You Need to Reinforce Safety & Soundness - and Keep a Close Eye on Risk Management
In the wake of recent economic news, banking/security leaders everywhere are asking "What should I tell my customers about my own bank's safety and soundness?"

Here are three tips for your consideration.

1) Reinforce that Your Institution is Safe & Sound -- Community banks traditionally have had a unique, close relationship with their customers, says Steve Katz, a recognized thought-leader and former CISO at both Citibank and Merrill Lynch. "It's different for them, and the relationship reflects more on the closer, 'hometown' customer focus that community banks have with their customers," he says. "They just need to maintain their relationship with their customers and communicate with them."

Wachovia Assets Acquired by Citigroup

Feds Broker Deal to Avoid 'Systemic Risk' to U.S. Financial Industry
Citigroup Inc. will acquire the banking operations of Wachovia Corp., one of the nation's largest banks, in a deal facilitated by the Federal Deposit Insurance Corp. over the weekend.

The Citigroup acquisition of Wachovia comes only four days after Washington Mutual failedand JP Morgan Chase bought the Seattle, WA.-based mortgage giant for $1.9 billion.