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FDIC Federal Register Citations

[Federal Register: December 27, 2002 (Volume 67, Number 249)]
[Notices]               
[Page 79278]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr27de02-196]                         


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FEDERAL DEPOSIT INSURANCE CORPORATION

 
FDIC Statement of Policy on Bank Merger Transactions

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Final agency policy statement; amendment.


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SUMMARY: The FDIC is amending its Statement of Policy on Bank Merger 
Transactions to reflect changes made pursuant to an internal 
reorganization. The reorganization merged the Division of Supervision 
and the Division of Compliance and Consumer Affairs. The amended 
Statement of Policy is intended to be read in conjunction with the 
merger provisions of the FDIC's revised regulations governing 
applications filed with the FDIC, which appears elsewhere in this issue 
of the Federal Register.


EFFECTIVE DATE: December 27, 2002.


FOR FURTHER INFORMATION CONTACT: Mindy West, Examination Specialist, 
Division of Supervision and Consumer Protection, (202/898-7221); Robert 
C. Fick, Counsel, Legal Division, (202/898-8962), FDIC, Washington, DC 
20429.


SUPPLEMENTARY INFORMATION: On June 30, 2002, the FDIC implemented an 
internal reorganization. The primary purpose of the reorganization was 
to streamline the management and decision making processes. As part of 
the reorganization, several divisions were merged. In particular, the 
Division of Supervision was merged with the Division of Compliance and 
Consumer Affairs to create the Division of Supervision and Consumer 
Protection. The reorganization has necessitated changes to the 
Statement of Policy on Bank Merger Transactions (Statement of Policy), 
to reflect the new structure since there are references to the former 
divisions and management structure in the prior Statement of Policy.
    In conjunction with the revisions to the Statement of Policy, the 
FDIC is also amending 12 CFR part 303 (part 303) of the FDIC's 
regulations governing application, notice, and request procedures. The 
amendments to part 303 reflect the FDIC's new organizational structure. 
The FDIC is also removing and updating the delegations of authority 
previously found in part 303 to provide greater flexibility when making 
decisions throughout the application process. As a result of these 
changes, the revised Statement of Policy is intended to be read in 
conjunction with the revised merger provisions of newly-amended part 
303, notice of which is published in this issue of the Federal 
Register.
    Section 307(c) of the Gramm-Leach-Bliley Act (GLBA) requires the 
FDIC to consult with the appropriate state insurance regulator before 
making any determination relating to the initial affiliation of, or the 
continuing affiliation of, a depository institution with a company 
engaged in insurance activities. On April 29, 2002, the Office of the 
Comptroller of the Currency, Board of Governors of the Federal Reserve 
System, FDIC and the Office of Thrift Supervision published a final 
notice in the Federal Register (67 FR 21014) revising the Interagency 
Bank Merger Act Application (Application) to add an item to the form to 
collect information required by GLBA. The FDIC is now amending the 
Statement of Policy to conform to the recently updated Application to 
include the specified information required therein. The information 
that is required is the name of the affiliated insurance company, a 
description of its insurance activities, a list of each state and the 
lines of business in that state in which the company holds, or will 
hold, an insurance license. The applicant must also indicate the state 
where the company holds a resident license or charter, as applicable.
    The Statement of Policy published December 1, 1998 (63 FR 66184) is 
hereby amended as follows:


FDIC Statement of Policy on Bank Merger Transactions


* * * * *


II. Application Procedures


    1. Application filing. Application forms and instructions may be 
obtained from the appropriate FDIC office. Completed applications and 
any other pertinent materials should be filed with the appropriate FDIC 
office. The application and related materials will be reviewed by the 
FDIC for compliance with applicable laws and FDIC rules and 
regulations. When all necessary information has been received, the 
application will be processed and a decision rendered by the FDIC.
* * * * *
    3. Publication of notice. The FDIC will not take final action on a 
merger application until notice of the proposed merger transaction is 
published in a newspaper or newspapers of general circulation in 
accordance with the requirements of section 18(c)(3) of the Federal 
Deposit Insurance Act. See Sec.  303.65 of the FDIC rules and 
regulations (12 CFR 303.65). The applicant must furnish evidence of 
publication of the notice to the appropriate FDIC office following 
compliance with the publication requirement. See Sec.  303.7(b) of the 
FDIC rules and regulations (12 CFR 303.7(b)).
* * * * *
    6. Merger decisions available. Applicants for consent to engage in 
a merger transaction may find additional guidance in the reported bases 
for FDIC approval or denial in prior merger transaction cases compiled 
in the FDIC's annual ``Merger Decisions'' report. Reports may be 
obtained from the FDIC Public Information Center, Room 100, 801 17th 
Street NW., Washington, DC 20434. Reports may also be viewed at http://www.fdic.gov
.
* * * * *


III. Evaluation of Merger Applications


* * * * *
    Special Information requirement if applicant is affiliated with or 
will be affiliated with an insurance company.
    If the institution that is the subject of the application is, or 
will be, affiliated with a company engaged in insurance activities that 
is subject to supervision by a state insurance regulator, the applicant 
must submit the following information as part of its application: (1) 
The name of insurance company; (2) a description of the insurance 
activities that the company is engaged in and has plans to conduct; and 
(3) a list of each state and the lines of business in that state which 
the company holds, or will hold, an insurance license. Applicant must 
also indicate the state where the company holds a resident license or 
charter, as applicable.


    By order of the Board of Directors.


    Dated at Washington, DC, this 3rd day of December, 2002.


Federal Deposit Insurance Corporation.
Valerie J. Best,
Assistant Executive Secretary.
[FR Doc. 02-31919 Filed 12-26-02; 8:45 am]
BILLING CODE 6714-01-P







Last Updated 12/27/2002 regs@fdic.gov