[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