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FDIC Federal Register Citations People's Bank
Eric J. Appellof May 31, 2005 Mr. Robert E. Feldman Re: Part 335 Securities of Nonmember Insured Banks Dear Mr. Feldman: These comments relate to interim final rules published by the Federal Deposit Insurance Corporation (the FDIC) as amendments to 12 CFR Part 335 Securities of Nonmember Insured Banks. These comments are being submitted by the undersigned on behalf of Peoples Bank of Bridgeport, Connecticut. Section 3, Adoption of Section 335.121 It is certainly appropriate for regulatory agencies to issue parallel or even identical regulations when the groups to be regulated are different. Thus, there is a definite need for the FDIC to promulgate regulations under Section 12(i) of the Exchange Act, where those regulations apply directly to state-chartered, non-member banks which would otherwise not be subject to certain SEC regulations. The situation differs, however, where a comprehensive system of regulation already applies to the regulated group. Section 10A(m) of the Exchange Act focuses on the national securities exchanges and associations as the entities to be regulated, not on the financial institutions which are otherwise the focus of Section 12(i) of the Exchange Act. It seems reasonable to conclude that all banks regulated by the FDIC pursuant to Section 12(i) have already taken action to comply with recent revisions to applicable listing standards. The adoption of Section 335.121 will not achieve anything different from that which has already been accomplished by virtue of existing SEC regulations. By adopting Section 335.121, the FDIC will be exercising regulatory authority over national securities exchanges and associations, entities with which the FDIC has no prior experience (and which themselves may not anticipate the FDIC as the source of enforceable regulation). On the other hand, the SEC has long experience regulating these entities, and established procedures and processes in place for doing so. In this case, the FDIC should forego the exercise of its authority under Section 10A(m) of the Exchange Act, relying instead on the SECs broader oversight of the national securities exchanges and associations as the appropriate means to implement and enforce this portion of the law. Section 6, Amendment of Section 335.221 Thank you for permitting us to submit these comments. Sincerely, |
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Last Updated 06/01/2005 | Regs@fdic.gov |