NR 2000-19
FOR IMMEDIATE RELEASE                                           
Contact: Sam Eskenazi (202) 874-5770
March 20, 2000                                                                  

                                    
             OCC's New Litigation Handbook Focuses on Risks
                                    
WASHINGTON -- The Office of the Comptroller of the Currency's
(OCC) new Litigation and Other Legal Matters handbook describes
litigation and other legal risks faced by banks, provides 
in-depth discussion of audit and insurance coverage, and specifies
how examiners should evaluate a bank's litigation risk
management. 

It states that examiners will review the quality of each bank's
policies, processes and personnel for handling litigation and
other legal risks.  It also provides guidance for occasions when
an examiner must obtain legally privileged material from a bank.  

The handbook guides bank management in developing policies to
help ensure that directors and management remain fully informed
of potential litigation and other legal issues where a bank could
face significant risks to its capital and earnings, and it helps
them monitor and control these risks.

The primary risks for banks associated with litigation include:
liquidity, reputation, strategic, credit, and compliance risks. 

The handbook can be accessed from the OCC's web site:
www.occ.treas.gov.  
                                     
                                

The OCC charters, regulates and examines approximately 2,400 
national banks and 58 federal branches and agencies of 
foreign banks in the United States, accounting for 57 
percent of the nation's banking assets.  Its mission is to
ensure a safe, sound and competitive national banking system 
that supports the citizens, communities and economy of 
the United States.