[Federal Register Volume 60, Number 115 (Thursday, June 15, 1995)]
[Rules and Regulations]
[Pages 31382-31384]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-14661]
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FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 303, 304, 308, 309, 324, 337, 341, 343, 346, 361 and
362
Applications, Requests, Submittals, Delegations of Authority, and
Notices Required To Be Filed by Statute or Regulation; Forms,
Instructions and Reports; Rules of Practice and Procedure; Disclosure
of Information; Agricultural Loan Loss Amortization; Unsafe and Unsound
Banking Practices; Registration of Securities Transfer Agents; Insured
State Nonmember Banks Which Are Municipal Securities Dealers; Foreign
Banks; Minority and Women Outreach Program--Contracting; Activities and
Investments of Insured State Banks
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Final rule.
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SUMMARY: The FDIC is adopting final amendments concerning delegations
of authority and other technical amendments to its regulations in order
to reflect a recent internal reorganization. Under the revised
organizational structure, which becomes effective June 18, 1995, the
FDIC's divisions and offices will report to one of three deputies to
the Chairman. As part of the restructuring, a new Division of Insurance
is being established to identify and assess risks to the deposit
insurance funds, which the FDIC administers. In addition, a new
Division of Administration is being created by abolishing the Offices
of Personnel Management, Corporate Services, and Training and
Educational Services and transferring their functions to the new
division. As a result of the reorganization, the position of Executive
Director for Compliance, Resolutions, and Supervision is being
abolished as no longer necessary. The intended effect of these
amendments is to provide the Director of the Division of Supervision
with appropriate delegated authority and to make other technical and
conforming amendments to implement the agency's reorganization.
EFFECTIVE DATE: June 18, 1995.
FOR FURTHER INFORMATION CONTACT: Joseph A. DiNuzzo, Acting Senior
Counsel, Legal Division (202-898-7349), or Lori J. Sommerfeld,
Attorney, Legal Division (202-898-8515).
SUPPLEMENTARY INFORMATION:
Background
On May 16, 1995, the FDIC's Board of Directors adopted a resolution
approving an internal reorganization of the agency, which will result
in several organizational and management changes that become effective
June 18, 1995. Under the revised organizational structure, the FDIC's
divisions and offices will report to one of three deputies to the
Chairman: the Deputy to the Chairman/Chief Operating Officer (Deputy/
COO), the Deputy to the Chairman for Finance/Chief Financial Officer
(Deputy/CFO), and the Deputy to the Chairman for Policy (Deputy/
Policy). Specifically, the Divisions of Supervision, Compliance and
Consumer Affairs, Research and Statistics, and Information Resources
Management, as well as the Offices of the Executive Secretary and Equal
Employment Opportunity, will report to the Chairman through the Deputy/
COO. The Deputy/CFO will provide general oversight over the operations
of the Divisions of Resolutions, Depositor and Asset Services, and
Finance, and the Deputy/Policy will serve the same function with
respect to the Offices of Corporate Communications, Legislative
Affairs, and Ombudsman. The General Counsel and the Inspector General,
however, will continue to report directly to the Chairman.
As part of the reorganization, a new Division of Insurance is being
established to identify and assess existing and emerging risks to the
deposit insurance funds, which the FDIC administers. Furthermore, a new
Division of Administration is being created by abolishing the Offices
of Personnel Management, Corporate Services, and Training and
Educational Services and transferring their functions to the new
division. As a result of the reorganization, the position of Executive
Director for Compliance, Resolutions, and Supervision (Executive
Director), which provided general oversight for the Divisions of
Compliance and Consumer Affairs, Resolutions and Supervision, is being
abolished as no longer necessary. Other management changes are being
made as part of the restructuring, but those do not require regulatory
amendments.
Discussion
The FDIC has identified portions of its regulations that will be
directly affected by the aforementioned corporate reorganization and
thus require modification. The first set of technical changes amend
Parts 303, 337, 346 and 362 to delete all references to the position of
Executive Director and to provide the Director of the Division of
Supervision (DOS) with appropriate delegated authority. The second set
of amendments involve conforming changes to reflect the new names of a
division affected by the reorganization and to conform obsolete names
of divisions found throughout the FDIC's regulations to their current
nomenclature. Specifically, most references to the Division of
Accounting and Corporate Services (DACS) are being changed to either
the Division of Administration, which will assume part of the duties
and functions of DACS as part of the restructuring, or the Division of
Finance (DOF), which already assumed a portion of DACS' duties and
functions during a prior reorganization. Two references to DACS are
being changed to DOS to reflect the availability of forms from the
latter division. Further, references to the obsolete terms ``Division
of Liquidation'' and ``Division of Bank Supervision'' are being amended
to reflect their current names, the Division of Depositor and Asset
Services (DDAS) and DOS, respectively.
A. Technical Amendments to Parts 303, 337, 346 and 362
1. Part 303 (Applications, Requests, Submittals, Delegations of
Authority, and Notices Required To Be Filed by Statute or Regulation)
Part 303 of the FDIC's regulations generally describes the
procedures to be followed by both the FDIC and applicants with respect
to applications, requests, or notices required to be filed by statute
or regulation. Part 303 also sets forth delegations of authority from
the FDIC's Board of Directors to the Directors of DOS and the Division
of Compliance and Consumer Affairs (DCA) and, in some cases, their
designees to act on certain applications and other matters. Section
303.0(c)(1) of the FDIC's regulations (12 CFR 303.0(c)(1)) provides
that, for purposes of Part 303, the Executive Director may exercise any
authority delegated to the Director of DOS or the Director of DCA or,
in the event the title Executive Director becomes obsolete, an official
of equivalent of authority. Since the title of Executive Director has
been abolished and an ``official of equivalent authority''
[[Page 31383]] does not exist, this provision is no longer necessary.
Accordingly, Sec. 303.0(c)(1) is removed.
2. Part 337 (Unsafe and Unsound Banking Practices)
Part 337 of the FDIC's regulations governs certain banking
practices which are likely to have adverse effects on the safety and
soundness of insured state nonmember banks or which are likely to
result in violations of law or regulations. Sections 337.6(e) and
337.6(h)(3) of the FDIC regulations (12 CFR 337.6(e), (h)(3)) provide
delegated authority to both the Executive Director and the Director of
DOS in connection with brokered deposits. Section 337.6(e) provides
that the Executive Director, the Director of DOS and, when confirmed in
writing by the Director, an associate director or appropriate regional
director or deputy regional director may approve waiver applications to
accept, renew or roll over brokered deposits. Section 337.6(h)(3)
provides that the Executive Director or the Director of DOS or any of
their designees may request, from time to time, quarterly written
reports from deposit brokers regarding the volume of brokered deposits
placed with a specific insured depository institution and the
maturities, rates and costs associated with such deposits. These
sections are amended only to delete the reference to Executive
Director; the Director of DOS or designee will retain this delegated
authority.
3. Part 346 (Foreign Banks)
The activities and operations of branches of foreign banks (both
insured and uninsured) are governed by Part 346 of the FDIC's
regulations. Section 346.101(g) (12 CFR 346.101(g)) delegates authority
to the Executive Director and the Director of DOS and, where confirmed
in writing by the Director, to an associate director or appropriate
regional director or deputy regional director to approve divestiture
and cessation plans submitted by insured state branches of foreign
banks. This section is amended to delete the reference to Executive
Director. Again, the Director of DOS or designee will retain this
delegated authority.
4. Part 362 (Activities and Investments of Insured State Banks)
Part 362 implements section 24 of the Federal Deposit Insurance Act
(12 U.S.C. 1831a), which sets forth certain restrictions and
prohibitions on the activities and investments of insured state banks
and their subsidiaries. Section 362.6 of the FDIC's regulations (12 CFR
362.6) delegates to the Executive Director the authority to act on
applications by state banks to engage in activities or make equity
investments not permissible for national banks and to take related
actions. The Executive Director may then subdelegate this authority in
writing to the Director of DOS or designee. Since the position
Executive Director has been abolished, this section is being amended to
delegate such authority directly from the Board of Directors to the
Director of DOS, who may then subdelegate the authority in writing to
appropriate officials within DOS.
B. Conforming Amendments: Division Names
Several conforming amendments are being made to reflect the new
names of a division directly affected by the reorganization.
Specifically, most references to DACS are being changed to either the
``Division of Administration'' or the ``Division of Finance'' in order
to reflect the names of the divisions to which DACS' duties and
functions have been transferred. Two references to DACS are being
changed to DOS to indicate the availability of certain forms (Form
8020/05 [Summary of Deposits] and FFIEC Form 001 [Annual Report of
Trust Assets]) from the latter division.
In addition, the FDIC is taking this opportunity to correct
obsolete references to two divisions within the Corporation that are
found throughout the agency's regulations. All references to the
Division of Liquidation and the Division of Bank Supervision are being
changed to ``Division of Depositor and Asset Services'' and ``Division
of Supervision,'' respectively, to reflect the current names of those
divisions.
Exemption From Public Comment
Rules of agency organization, procedure or practice are exempt from
the public comment requirements of section 553 of the Administrative
Procedure Act (5 U.S.C. 553(b)(A)). The FDIC believes that it is
unnecessary to seek public comment in this case because these
amendments clearly concern rules of agency organization, procedure or
practice which fall within this exemption. Therefore, the amendments
are being issued as a final, rather than proposed, rule.
Effective Date of Amendments
Section 553 of the Administrative Procedure Act (5 U.S.C. 553)
generally requires that a final rule be published 30 days prior to its
effective date, subject to certain exceptions. One such exception is
that if an agency finds good cause for making a rule immediately
effective and publishes the basis for its determination, then the rule
need not be published 30 days before it becomes effective. 5 U.S.C.
553(d)(3). These amendments merely pertain to internal organization and
delegations of authority and do not affect any substantive rights of
entities regulated by the FDIC. Accordingly, the FDIC Board of
Directors finds good cause to waive the 30-day delayed effective date
in order to quickly effectuate the corporate reorganization and to
reflect the name of the newly created Division of Administration.
Regulatory Flexibility Act
The Board of Directors hereby certifies that the final rule will
not have a significant economic impact on a substantial number of small
entities within the meaning of the Regulatory Flexibility Act (5 U.S.C.
601 et seq.). It will not impose burdens on depository institutions of
any size and will not have the type of economic impact addressed by the
Act. Therefore, the Act's requirements regarding an initial and final
regulatory flexibility analysis (Id. at 603 & 604) do not apply.
Paperwork Reduction Act
This rulemaking does not require any collections of information
pursuant to section 3504(h) of the Paperwork Reduction Act (44 U.S.C.
3501 et seq.). Accordingly, no information has been submitted to the
Office of Management and Budget for review.
Authority
These amendments are promulgated under the FDIC's general authority
to prescribe, through its Board of Directors, such rules and
regulations as it may deem necessary to carry out the provisions of the
Federal Deposit Insurance Act or any other law which the FDIC has the
responsibility of administering or enforcing (except to the extent that
authority to issue such rules and regulations has been expressly and
exclusively granted to any other regulatory agency). 12 U.S.C.
1819(a)(Tenth).
List of Subjects
12 CFR Part 303
Administrative practice and procedure, Authority delegations
(Government agencies), Bank deposit insurance, Banks, banking, Insured
depository institutions, Reporting and recordkeeping requirements,
Savings associations.
12 CFR Part 337
Banks, banking, Reporting and recordkeeping requirements,
Securities. [[Page 31384]]
12 CFR Part 346
Bank deposit insurance, Foreign banking, Reporting and
recordkeeping requirements.
12 CFR Part 362
Administrative practice and procedure, Authority delegations
(Government agencies), Bank deposit insurance, Banks, banking, Insured
depository institutions, Investments.
The Board of Directors of the Federal Deposit Insurance
Corporation, under the authority of 12 U.S.C. 1819(a)(Tenth), hereby
amends Parts 303, 304, 308, 309, 324, 337, 341, 343, 346, 361 and 362
of title 12 of the Code of Federal Regulations as follows:
PART 303--APPLICATIONS, REQUESTS, SUBMITTALS, DELEGATIONS OF
AUTHORITY, AND NOTICES REQUIRED TO BE FILED BY STATUTE OR
REGULATION
1. The authority citation for Part 303 continues to read as
follows:
Authority: 12 U.S.C. 378, 1813, 1815, 1816, 1817(a)(2)(b),
1817(j), 1818, 1819 (``Seventh,'' ``Eighth'' and ``Tenth''), 1828,
1831e, 1831o, 1831p-1(a); 15 U.S.C. 1607.
Sec. 303.0 [Amended]
2. In Sec. 303.0, the heading for paragraph (c) and paragraph
(c)(1) are removed and paragraph (c)(2) is redesignated as paragraph
(c).
PART 337--UNSAFE AND UNSOUND BANKING PRACTICES
1. The authority citation for Part 337 continues to read as
follows:
Authority: 12 U.S.C. 375a(4), 375b, 1816, 1818(a), 1818(b),
1819, 1821(f), 1828(j)(2), 1831f, 1831f-1.
2. Section 337.6 is amended by revising the first sentence of
paragraph (e)(1) and paragraph (h)(3) to read as follows:
Sec. 337.6 Brokered deposits.
* * * * *
(e) Decision. (1) The Director of the Division of Supervision and,
when confirmed in writing by the Director, an associate director or the
appropriate regional director or deputy regional director, shall each
have the authority to approve any waiver application properly filed. *
* *
* * * * *
(h) * * *
(3) The Director of the Division of Supervision or designee may
request, from time to time, quarterly written reports from any deposit
broker regarding the volume of brokered deposits placed with a
specified insured depository institution and the maturities, rates and
costs associated with such deposits.
* * * * *
PART 346--FOREIGN BANKS
1. The authority citation for Part 346 continues to read as
follows:
Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 3103, 3104,
3105, 3108.
2. Section 346.101 is amended by revising paragraph (g) to read as
follows:
Sec. 346.101 Applications.
* * * * *
(g) Delegation of authority. Authority is hereby delegated to the
Director of the Division of Supervision and, when confirmed in writing
by the Director, to an associate director, or to the appropriate
regional director or deputy regional director, to approve plans of
divestiture and cessation submitted pursuant to paragraph (f) of this
section.
PART 362--ACTIVITIES AND INVESTMENTS OF INSURED STATE BANKS
1. The authority citation for Part 362 continues to read as
follows:
Authority: 12 U.S.C. 1816, 1818, 1819(Tenth), 1831a.
2. Section 362.6 is revised to read as follows:
Sec. 362.6 Delegation of authority.
The authority to review and act upon divestiture plans submitted
pursuant to Sec. 362.3(c)(2); the authority to approve or deny notices
filed pursuant to Sec. 362.3(d); the authority to approve or deny
applications pursuant to Sec. 362.3(b)(7)(ii); and the authority to
approve or deny requests for consent pursuant to Sec. 362.4(d) as well
as to take any other action authorized by Sec. 362.4(d) is delegated to
the Director of the Division of Supervision or the Director's designee.
PARTS 304, 308, 309, 324, 341, 343, 346 AND 361--[AMENDED]
Sec. 304.5 [Amended]
1. In Sec. 304.5(a) and (c), by removing the words ``Bank Financial
Reporting Section, Division of Accounting and Corporate Services'' and
adding in lieu thereof the words ``Division of Supervision'' each place
they appear.
Sec. 309.4 [Amended]
2. In Sec. 309.4(e) introductory text, by removing the words
``Information Center Unit, Bank Systems Section, Management Information
Services Branch, Division of Accounting and Corporate Services'' and
adding in lieu thereof the words ``Division of Finance'' and by
removing the semicolon at the end of the paragraph and adding a colon
in its place.
Sec. 361.7 [Amended]
3. In Sec. 361.7(b), by removing the words ``Corporate Services
Branch, Division of Accounting and Corporate Services'' and adding in
lieu thereof the words ``Division of Administration''.
Secs. 308.145, 309.4, 309.5 [Amended]
4. By removing the words ``Division of Liquidation'' and adding in
lieu thereof the words ``Division of Depositor and Asset Services''
where they appear in the following places:
a. Sec. 308.145
b. Sec. 309.4(g)
c. Sec. 309.5(h)
Secs. 324.2, 324.7, 341.3, 341.5, 343.3, 346.20 [Amended]
5. By removing the words ``Division of Bank Supervision'' and
adding in lieu thereof the words ``Division of Supervision'' where they
appear in the following places:
a. Sec. 324.2(d)
b. Sec. 324.7(a)
c. Sec. 341.3(c)
d. Sec. 341.5(b)
e. Sec. 343.3(e)
f. Sec. 346.20(a)
By Order of the Board of Directors.
Dated at Washington, D.C. this 8th day of June, 1995.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Acting Executive Secretary.
[FR Doc. 95-14661 Filed 6-14-95; 8:45 am]
BILLING CODE 6714-01-P
