Abstract: This rulemaking withdraws a proposed rule published August
23, 1996, in the Federal Register at 61 FR 43486 (RIN 3064-AB75) to
amend the FDIC's regulations governing the activities and investments
of insured State banks, and replaces it with a more comprehensive rule.
The more comprehensive rulemaking combines the FDIC's regulations
governing the activities and investments of insured State banks
(presently found in 12 CFR part 362) with those governing insured
savings associations (presently found at 12 CFR 303.12) into a revised
part 362. In addition, the rule moves the FDIC's regulations governing
safety and soundness of securities activities of subsidiaries and
affiliates of insured State nonmember banks (currently at 12 CFR 337.4)
into part 362. The intention is to modernize this group of regulations
and harmonize the provisions of part 362 governing activities that are
not permissible for national banks with those governing the securities
activities of State nonmember banks.