UPDATE 1-US regulators urge banks to work with oil spill victims

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WASHINGTON, July 14 (BestGrowthStock) – U.S. financial regulators
on Wednesday urged banks to work with businesses in states that
have been hit by the disastrous BP oil spill in the Gulf of
Mexico by temporarily waiving late fees and other charges.

Lenders might also consider easing credit terms to certain
borrowers, according to a joint statement from the Federal
Reserve, the Federal Deposit Insurance Corporation, the Office
of the Comptroller of the Currency, the Office of Thrift
Supervision, the National Credit Union Administration and the
Conference of State Bank Supervisors.

Nearly three months into the worst oil spill in U.S.
history, BP Plc (BP.L: ) (BP.N: ) has yet to successfully shut off
the thousands of gallons of crude spilling into the gulf daily.
The environmental effects are expected to have a deep impact in
surrounding areas for years to come.

“Financial institutions are encouraged to work with their
customers and consider measures to assist creditworthy
borrowers affected by the Gulf oil spill,” the agencies said in
a statement.

They could do so, the regulators said, by temporarily
waiving late payment charges, ATM fees and penalties for early
withdrawal of savings, as well as expediting lending decisions.

“Consistent with the regulators’ longstanding practice
of assessing the financial condition of institutions directly
affected by natural and other disasters, examiners will
consider the unusual circumstances of banks and credit unions
in affected areas,” they said.

UPDATE 1-US regulators urge banks to work with oil spill victims