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FDIC Federal Register Citations

[Federal Register: January 11, 2007 (Volume 72, Number 7)]

[Rules and Regulations]

[Page 1274-1276]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr11ja07-3]

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 26

[Docket No. 2006-16]

RIN 1557-AD01

FEDERAL RESERVE SYSTEM

12 CFR Part 212

[Regulation L; Docket No. R-1272]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 348

RIN 3064-AD13

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 563f

[Docket No. 2006-47]

RIN 1550-AC09

Management Official Interlocks

AGENCIES: Office of the Comptroller of the Currency, Treasury; Board of

Governors of the Federal Reserve System; Federal Deposit Insurance

Corporation; and Office of Thrift Supervision, Treasury.

ACTION: Joint interim rule with request for comment.

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SUMMARY: The Office of the Comptroller of the Currency (OCC), the Board

of Governors of the Federal Reserve System (Board), the Federal Deposit

Insurance Corporation (FDIC), and the Office of Thrift Supervision

(OTS) (collectively, the Agencies) are amending their rules regarding

management interlocks to implement section 610 of the Financial

Services Regulatory Relief Act of 2006 (FSRRA) and to correct

inaccurate cross-references.

DATES: This interim rule is effective on January 11, 2007. Comments on

the rule must be received by February 12, 2007.

ADDRESSES: Comments should be directed to:

OCC: You should include OCC and Docket Number 2006-16 in your

comment. You may submit comments by any of the following methods:

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

OCC Web Site: http://www.occ.treas.gov. Click on ``Contact

the OCC,'' scroll down and click on ``Comments on Proposed

Regulations.''

E-mail address: regs.comments@occ.treas.gov.

Fax: (202) 874-4448.

Mail: Office of the Comptroller of the Currency, 250 E

Street, SW., Mail Stop 1-5, Washington, DC 20219.

Hand Delivery/Courier: 250 E Street, SW., Attn: Public

Information Room, Mail Stop 1-5, Washington, DC 20219.

Instructions: All submissions received must include the agency name

(OCC) and docket number or Regulatory Information Number (RIN) for this

interim rule. In general, the OCC will enter all comments received into

the docket without change, including any business or personal

information that you provide. You may review comments and other related

materials by any of the following methods:

Viewing Comments Personally: You may personally inspect and

photocopy comments at the OCC's Public Information Room, 250 E Street,

SW., Washington, DC. You can make an appointment to inspect comments by

calling (202) 874-5043.

Board: You may submit comments, identified by Docket No. R-1272, by

any of the following methods:

Agency Web site: http://www.federalreserve.gov Follow the instructions for submitting comments at http://www.federalreserve.gov/. .

Follow the instructions for submitting comments.

E-mail: regs.comments@federalreserve.gov. Include docket

number in the subject line of the message.

FAX: 202/452-3819 or 202/452-3102.

Mail: Jennifer J. Johnson, Secretary, Board of Governors

of the Federal Reserve System, 20th Street and Constitution Avenue,

NW., Washington, DC 20551.

All public comments are available from the Board's Web site at

http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as

submitted, unless modified for technical reasons. Accordingly, your

comments will not be edited to remove any identifying or contact

information. Public comments may also be viewed electronically or in

paper in Room MP-500 of the Board's Martin Building (20th and C

Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.

FDIC: You may submit comments, identified by RIN number, by any of

the following methods:

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

Agency Web Site: http://www.fdic.gov/regulations/laws/federal/propose.html

Mail: Robert E. Feldman, Executive Secretary, Attention:

Comments, Federal Deposit Insurance Corporation, 550 17th Street, NW.,

Washington, DC 20429.

Hand Delivery/Courier: Guard station at rear of the 550

17th Street Building (located on F Street) on business days between 7

a.m. and 5 p.m.

E-mail: Comments@FDIC.gov.

Public Inspection: Comments may be inspected at the FDIC

Public Information Center, Room E-1002, 3502 Fairfax Drive, Arlington,

VA 22226, between 9 a.m. and 5 p.m. on business days.

Instructions: Submissions received must include the agency name and

RIN for this rulemaking. Comments received will be posted without

change to http://www.fdic.gov/regulations/laws/federal/propose.html

including any personal information provided.

OTS: You may submit comments, identified by No. 2006-47, by any of

the following methods:

Federal eRulemaking Portal: http://www.regulations.gov.

Follow the instructions for submitting comments.

E-mail address: regs.comments@ots.treas.gov. Please

include No. 2006-47 in the subject line of the message and include your

name and telephone number in the message.

Fax: (202) 906-6518.

Mail: Regulation Comments, Chief Counsel's Office, Office

of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552,

Attention: No. 2006-47.

Hand Delivery/Courier: Guard's Desk, East Lobby Entrance,

1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention:

Regulation Comments, Chief Counsel's Office, Attention: No. 2006-33.

Instructions: All submissions received must include the agency name

and docket number or Regulatory Information Number (RIN) for this

rulemaking. All comments received will be posted without change to the

OTS Internet Site at http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1,

[[Page 1275]]

including any personal information provided.

Docket: For access to the docket to read background documents or

comments received, go to http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1

In addition, you may inspect comments at the Public Reading Room,

1700 G Street, NW., by appointment. To make an appointment for access,

call (202) 906-5922, send an e-mail to public.info@ots.treas.gov, or

send a facsimile transmission to (202) 906-7755. (Prior notice

identifying the materials you will be requesting will assist us in

serving you.) We schedule appointments on business days between 10 a.m.

and 4 p.m. In most cases, appointments will be available the next

business day following the date we receive a request.

FOR FURTHER INFORMATION CONTACT:

OCC: Heidi M. Thomas, Special Counsel, Legislative and Regulatory

Activities Division, (202) 874-4688; Sue Auerbach, Counsel, Bank

Activities and Structure Division, (202) 874-5300; or Cheryl A. Martin,

Senior Licensing Analyst, Licensing Activities Division, (202) 874-

4614, Office of the Comptroller of the Currency, 250 E Street SW.,

Washington, DC 20219.

Board: Andrew S. Baer, Counsel, (202) 452-2246, or Jennifer L.

Sutton, Attorney, (202) 452-3564, Legal Division. For users of

Telecommunication Device for the Deaf (TDD) only, contact (202) 263-

4869.

FDIC: Patricia A. Colohan, Senior Examination Specialist, Division

of Supervision and Consumer Protection, (202) 898-7283, or Leneta G.

Gregorie, Counsel, Legal Division, (202) 898-3719.

OTS: David J. Bristol, Senior Attorney, (202) 906-6461, Business

Transactions Division, Office of Thrift Supervision, or Donald W.

Dwyer, Director of Applications, Examinations and Supervision--

Operations, (202) 906-6414, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

I. Background

The Depository Institution Management Interlocks Act (12 U.S.C.

3201 et seq.) (Interlocks Act or Act) prohibits individuals from

simultaneously serving as a management official \1\ at two unaffiliated

depository institutions or their holding companies (collectively,

depository organizations) under certain circumstances. For example,

section 203(1) of the Act (12 U.S.C. 3202(1)) prohibits interlocks

between unaffiliated depository organizations if each depository

organization (or a depository institution affiliate thereof) has an

office in the same relevant metropolitan statistical area (RMSA) (RMSA

prohibition), unless each of the depository organizations involved has

total assets below a specified threshold (small institution exception).

Prior to enactment of the FSRRA, this asset threshold was $20 million.

However, section 610 of the FSRRA amended the Interlocks Act by raising

this asset threshold to $50 million, effective as of October 13,

2006.\2\

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\1\ Each of the Agencies' regulations generally define

``management official'' to include a director, an advisory or

honorary director of a depository institution with total assets of

$100 million or more, a senior executive officer, a branch manager,

a trustee of a depository organization under the control of

trustees, and any person who has a representative or nominee serving

in such capacity. See 12 CFR 26.2(j) (OCC); 12 CFR 212.2(j) (Board);

12 CFR 348.2(j) (FDIC); and 12 CFR 563f.2(j) (OTS).

\2\ Pub. L. 109-351, Sec. 610, 120 Stat.--(Oct. 13, 2006).

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II. Interim Rule

The Agencies are amending their rules in order to implement section

610 of the FSRRA. Specifically, the interim rules modify the RMSA

prohibition to allow a management official of one depository

organization to serve as a management official of an unaffiliated

depository organization that has an office in the same RMSA as the

first organization if each of the depository organizations in question

(or a depository institution affiliate thereof) has total assets of

less than $50 million.

This interim rule also makes technical changes to correct

inaccurate cross-references in the definition of management official in

each of the Agencies' rules.

III. Regulatory Analysis

Plain Language

Section 722 of the Gramm-Leach-Bliley Act (12 U.S.C. 4809) requires

the Agencies to use ``plain language'' in all rules published in the

Federal Register after January 1, 2000. The Agencies believe the

interim rules are presented in a simple and straightforward manner.


Administrative Procedure Act

The interim rule takes effect upon publication in the Federal

Register. The interim rule implements a statutory change that took

effect upon enactment on October 13, 2006. The new statutory provision

itself gives the Agencies no discretion to modify the asset-size

threshold for the small institution exception. The technical

corrections of cross-references effected by the interim rule have no

substantive effect. For the foregoing reasons, notice and public

procedure are unnecessary. Accordingly, pursuant to 5 U.S.C. 553(b),

the Agencies find good cause for making the rule effective as of

January 11, 2007 without first seeking and reviewing public comment.

However, the Agencies nonetheless invite public comment on the interim

rule and will amend the rules if appropriate after reviewing public

comments.

Regulatory Flexibility Act

Pursuant to section 605(b) of the Regulatory Flexibility Act (RFA)

(5 U.S.C. 605(b)), the regulatory flexibility analysis otherwise

required under section 603 of the RFA (5 U.S.C. 603) is not required if

the head of the agency certifies that the rule will not have a

significant economic impact on a substantial number of small entities

and the agency publishes such certification and a statement explaining

the factual basis for such certification in the Federal Register along

with its rule.

Pursuant to section 605(b) of the RFA, each of the Agencies

certifies that this interim rule will not have a significant economic

impact on a substantial number of small entities. The Agencies expect

that this rule will not create any additional burden on small entities.

The interim rule relaxes the criteria for obtaining an exemption from

the RMSA prohibition, and specifically addresses the needs of small

entities by allowing greater numbers of small organizations to qualify

for the small institution exception from the RMSA prohibition.

Accordingly, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.

3506; 5 CFR part 1320 Appendix A.1), the Agencies have determined that

no collections of information pursuant to the Paperwork Reduction Act

are contained in the interim rule.


OCC and OTS Executive Order 12866 Statement

The OCC and OTS each have independently determined that the interim

rule is not a ``significant regulatory action'' as defined in Executive

Order 12866. Accordingly, a regulatory assessment is not required.

OCC and OTS Unfunded Mandates Act of 1995 Statement

Section 202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C.

1532), requires the OCC and OTS to prepare a budgetary impact statement

before promulgating a rule that includes

[[Page 1276]]

a federal mandate that may result in the expenditure by state, local,

and tribal governments, in the aggregate, or by the private sector, of

$100 million or more in any one year. However, this requirement does

not apply to regulations that incorporate requirements specifically set

forth in law. Because this interim rule implements section 610 of the

FSRRA, the OTS and OCC have not conducted an Unfunded Mandates Analysis

for this rulemaking.

List of Subjects

12 CFR Part 26

Antitrust, Holding companies, National banks.

12 CFR Part 212

Antitrust, Banks, banking, Holding companies.
 

12 CFR Part 348

Antitrust, Banks, banking, Holding companies.

12 CFR Part 563f

Antitrust, Holding companies, Reporting and recordkeeping

requirements, Savings associations.

Office of the Comptroller of the Currency

12 CFR Chapter I

Authority and Issuance

0

For the reasons set out in the joint preamble, part 26 of chapter I of

title 12 of the Code of Federal Regulations is amended as follows:

PART 26--MANAGEMENT OFFICIAL INTERLOCKS

0

1. The authority citation for part 26 continues to read as follows:

Authority: 12 U.S.C. 93a and 3201-3208.


Sec. 26.2 [Amended]

0

2. Amend Sec. 26.2(k)(1)(vi) by removing ``(m)(1)'' and adding in its

place ``(k)(1)''.


Sec. 26.3 [Amended]

0

3. Amend Sec. 26.3(b) by removing ``$20'' and adding in its place

``$50''.

Federal Reserve System

12 CFR Chapter II

Authority and Issuance

0

For the reasons set out in the joint preamble, part 212 of chapter II

of title 12 of the Code of Federal Regulations is amended as follows:

PART 212--MANAGEMENT OFFICIAL INTERLOCKS

0

1. The authority citation for part 212 continues to read as follows:

Authority: 12 U.S.C. 3201-3208; 15 U.S.C. 19.
 

Sec. 212.2 [Amended]
 

0

2. Amend Sec. 212.2(j)(1)(iii) by removing ``12 CFR 225.71(a)'' and

adding in its place ``12 CFR 225.71(c)''.

0

3. Amend Sec. 212.2(j)(1)(vi), by removing ``(p)'' and adding in its

place ``(n)'' and by removing ``(l)(1)'' and adding in its place

``(j)(1)''.


Sec. 212.3 [Amended]

0

4. Amend Sec. 212.3(b) by removing ``$20'' and adding in its place

``$50''.

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

0

For the reasons set forth in the joint preamble, part 348 of chapter

III of title 12 of the Code of Federal Regulations is amended as

follows:

PART 348--MANAGEMENT OFFICIAL INTERLOCKS

0

1. The authority citation for part 348 continues to read as follows:

Authority: 12 U.S.C. 1823(k), 3207.


Sec. 348.2 [Amended]

0

2. Amend Sec. 348.2(j)(1)(vi), by removing ``(l)(1)'' and adding in

its place ``(j)(1)''.


Sec. 348.3 [Amended]

3. Amend Sec. 348.3(b) by removing ``$20'' and adding in its place

``$50''.

Office of Thrift Supervision

12 CFR Chapter V

Authority and Issuance

0

For the reasons set out in the joint preamble, part 563f of chapter V

of title 12 of the Code of Federal Regulations is amended as follows:

PART 563f--MANAGEMENT OFFICIAL INTERLOCKS

0

1. The authority citation for part 563f continues to read as follows:

Authority: 12 U.S.C. 3201-3208.


Sec. 563f.2 [Amended]

0

2. Amend Sec. 563f.2(j)(1)(vi) by removing ``(l)(1)'' and adding in

its place ``(j)(1)''.


Sec. 563f.3 [Amended]

0

3. Amend Sec. 563f.3(b) by removing ``$20'' and adding in its place

``$50''.

Dated: December 6, 2006.

John C. Dugan,

Comptroller of the Currency.

By order of the Board of Governors of the Federal Reserve

System, January 8, 2007.

Jennifer J. Johnson,

Secretary of the Board.

By order of the Board of Directors.

Dated at Washington, DC, this 22nd day of December, 2006.

Robert E. Feldman,

Executive Secretary, Federal Deposit Insurance Corporation.

Dated: December 4, 2006.

By the Office of Thrift Supervision.

John J. Reich,

Director.

[FR Doc. 07-79 Filed 1-10-07; 8:45 am]

BILLING CODE 4810-33-P
 


Last Updated 01/11/2007 Regs@fdic.gov