Robert E. Feldman
Executive Secretary
Federal Deposit Insurance Corporation
550 17th Street, NW
Washington, D.C. 20429
Attention: Comments 12 CFR Parts 303 and 324
Thank you for the opportunity to provide comments in response to the
FDICs proposal to amend title 12 of the Code of Federal Regulations to
cross reference Regulation W in order to make it clear that insured state
nonmember banks are subject to the restrictions and limitations and may
take advantage of the exemptions contained in Regulation W. Through the
proposal, the FDIC also notes that insured state nonmember banks are
subject to the restrictions and limitations that govern transactions
between member banks and their affiliates found in sections 23A and 23B of
the Federal Reserve Act in the same manner and to the same extent
(emphasis added) as though they were member banks.
To provide non member banks with additional guidance in this area, the
FDIC also proposes to clarify that the FDIC administers the restrictions and
limitations contained in Regulation W as this rule applies to insured non
member banks, that the FDIC may grant case-by-case exemptions from those
restrictions and limitations and that the FDIC is the appropriate agency to
make other determinations under Regulation W. Additionally, the FDIC has
proposed to amend part 303 of the agencys regulations by adding a new
section that would govern requests for exemptions from new part 324 as well
as hearings that are held to determine whether a shareholder or company
exercises a controlling influence over another company.
As the banking industry continues to serve its customers by providing
products and services in coordination with or through one or more of their
affiliates, clear guidance in this area is essential. As the federal banking
agencies address this matter, including the resolution of issues that may
require interagency coordination relative to Regulation W, CSBS as the
professional organization of the nations state banking agencies would be
happy to provide assistance or information that might be helpful.