[Federal Register Volume 64, Number 228 (Monday, November 29, 1999)]
[Rules and Regulations]
[Pages 66706-66708]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-30285]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 30

[Docket No. 99-17]
RIN 1557-AB67

FEDERAL RESERVE SYSTEM

12 CFR Part 263

[Docket No. R-1018]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 364

RIN 3064-AC18


DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 570

[Docket No. 99-50]
RIN 1550-AB27

Safety and Soundness Standards

AGENCIES: Office of the Comptroller of the Currency, Treasury; Board of 
Governors of the Federal Reserve System; Federal Deposit Insurance 
Corporation; and Office of Thrift Supervision, Treasury.

ACTION: Joint final rule.

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SUMMARY: The Office of the Comptroller of the Currency (OCC), the Board 
of Governors of the Federal Reserve System (Board), the Federal Deposit 
Insurance Corporation (FDIC), and the Office of Thrift Supervision 
(OTS) (collectively, the Agencies) are issuing this joint final rule to 
update their procedural rules pertaining to safety and soundness 
standards issued under section 39 of the Federal Deposit Insurance Act 
(FDI Act). This joint final rule adopts, with only one technical 
change, the Agencies' interim rules. This final rule is intended only 
to incorporate appropriate references to the Interagency Guidelines 
Establishing Year 2000 Standards for Safety and Soundness published 
elsewhere in this issue of the Federal Register.

EFFECTIVE DATE: This joint final rule is effective on November 29, 
1999.

FOR FURTHER INFORMATION CONTACT: OCC: Karl Betz, Attorney, Legislative 
and Regulatory Activities (202) 874-5090; or Brian McCormally, 
Assistant Director, Enforcement and Compliance (202) 874-4800, Office 
of the Comptroller of the Currency, 250 E Street, SW, Washington, DC 
20219.
    Board: Stephanie Martin, Managing Senior Counsel, Legal Division 
(202) 452-3198. For the hearing impaired only, Telecommunication Device 
for Deaf (TDD), Diane Jenkins (202) 452-3544, Board of Governors of the 
Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551.
    FDIC: Sandy Comenetz, Year 2000 Project Manager, Legal Division 
(202) 898-3582; Richard Bogue, Counsel, Legal Division (202) 898-3726; 
or Nancy Chase Burton, Counsel, Legal Division (202) 898-6533, Federal 
Deposit Insurance Corporation, 550 17th Street, NW, Washington, DC 
20429.
    OTS: Dorothy Van Cleave, National Year 2000 Coordinator (202) 906-
7380; Stephen E. Hart, Assistant Chief Counsel, Office of Enforcement, 
Office of Chief Counsel (202) 906-7204; or Timothy P. Leary, Counsel 
(Banking & Finance), Regulations and Legislation Division, Office of 
Chief Counsel (202) 906-7170, Office of Thrift Supervision, 1700 G 
Street, NW, Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

Background and Discussion of Final Rule

    In 1995, the Agencies jointly adopted Guidelines Establishing 
Standards for Safety and Soundness pursuant to section 39 of the FDI 
Act. 12 U.S.C. 1831p-1. At the same time, each Agency adopted rules 
establishing procedures for requiring submission of a compliance plan 
and issuing an enforceable order for violation of safety and soundness 
standards pursuant to section 39. The Guidelines Establishing Standards 
for Safety and Soundness are set forth in an appendix to each Agency's 
procedural rules. 60 FR 35674 (July 10, 1995).
    On October 15, 1998, the Agencies adopted interim Interagency 
Guidelines Establishing Year 2000 Standards for Safety and Soundness 
(Year 2000 Guidelines) under section 39 of the FDI Act. 63 FR 55480. 
Elsewhere in this issue of the Federal Register, the Agencies are 
publishing final Year 2000 Guidelines. These Year 2000 Guidelines

[[Page 66707]]

will appear as a second appendix to the Agencies' respective procedural 
rules.
    On October 15, 1998, the Agencies also published interim rules that 
made minor conforming amendments to their procedural rules to 
incorporate appropriate references to the Year 2000 Guidelines. 63 FR 
55486. The Agencies received one comment on the interim rule. The 
commenter, a banking trade association, supported the interim rule.
    The Agencies are now adopting the interim rule as published with 
two exceptions.
    First, the OTS is making a minor, technical change to a reference 
in its rule.
    Second, the OCC's current rules of procedure, set forth at 
Secs. 30.1 through 30.6, differ slightly from those in the interim rule 
dated October 15, 1998 (63 FR 55486). On September 30, 1999, the OCC 
published its Guidelines Establishing Year 2000 Standards for Safety 
and Soundness for National Bank Transfer Agents and Broker-Dealers (64 
FR 52638) (Supplemental Guidelines). The Supplemental Guidelines added 
a new appendix C to part 30 and made conforming changes to Secs. 30.2 
and 30.3(a) to incorporate appropriate references to appendix C to part 
30. After adoption of this final rule, Secs. 30.2 and 30.3(a) will 
continue to read as amended by the Supplemental Guidelines (that is, 
these sections will contain references to appendix C to part 30). 
Otherwise, the OCC adopts the interim rule as it was published.

Effective Date

    The Agencies find good cause for issuing this final rule to be 
effective immediately. Cf. 5 U.S.C. 553(d) (good cause exception to the 
requirement in the Administrative Procedure Act for a 30 day delayed 
effective date for a final rule); 12 U.S.C. 4802(b)(1) (good cause 
exception to the requirement in the Riegle Community Development and 
Regulatory Improvement Act that the Federal banking agencies make rules 
effective on the first day of a calender quarter which begins on or 
after the date on which the regulations are published in final form). 
The Agencies are finalizing, with one technical change, already 
effective interim rules. The interim rule made only conforming 
amendments to the Agencies' current rules of procedure to refer to the 
Year 2000 Guidelines. This final rule imposes no new substantive 
requirements on insured depository institutions. Therefore, each of the 
Agencies finds good cause to dispense with the delayed effective date 
requirements.

Regulatory Flexibility Act Analysis

    The Regulatory Flexibility Act (RFA) does not apply to a rule for 
which an agency is not required to publish a notice of proposed 
rulemaking. 5 U.S.C. 603. In issuing the interim rule, the Agencies 
concluded, for good cause, that they are not required to publish a 
notice of proposed rulemaking. Accordingly, they issued the interim 
rule without prior notice and comment to be effective immediately. 
Since the RFA does not apply to a rule for which an agency is not 
required to publish a notice of proposed rulemaking, the Agencies also 
conclude that the RFA does not require a regulatory flexibility 
analysis of this final rule.
    Nevertheless, since the final rule imposes no new requirements on 
insured depository institutions and makes only conforming amendments to 
the Agencies' current rules of procedure, the Agencies find that the 
final rule does not have a significant effect on a substantial number 
of small entities or create any additional burden on small entities 
under the RFA.

Paperwork Reduction Act

    The Agencies have determined that the final rule does not involve a 
collection of information pursuant to the Paperwork Reduction Act of 
1995 (44 U.S.C. 3501 et seq.).

Executive Order 12866

    The OCC and OTS have determined that the final rule is not a 
significant regulatory action under Executive Order 12866.

OCC and OTS: Unfunded Mandates Reform Act Analysis

    The Unfunded Mandates Reform Act of 1995 (UMA), Public Law 104-4, 
does not apply to a rule for which an agency is not required to publish 
a notice of proposed rulemaking. 2 U.S.C. 1532. In issuing the interim 
rule, the Agencies concluded, for good cause, that they are not 
required to publish a notice of proposed rulemaking. Accordingly, the 
OCC and OTS conclude that the UMA does not require an unfunded mandates 
analysis of this final rule.
    Nevertheless, since this final rule imposes no new requirements on 
insured depository institutions and makes only conforming amendments to 
the Agencies' current rules of procedure, the OCC and OTS find that 
this final rule will not result in expenditure by State, local, and 
tribal governments, or by the private sector, of more than $100 million 
in any one year. Accordingly, neither the OCC nor the OTS has prepared 
a budgetary impact statement or specifically addressed the regulatory 
alternatives considered.

List of Subjects

12 CFR Part 30

    Administrative practice and procedure, National banks, Reporting 
and recordkeeping requirements, Safety and soundness.

12 CFR Part 263

    Administrative practice and procedure, Claims, Crime, Equal access 
to justice, Federal Reserve System, Lawyers, Penalties.

12 CFR Part 364

    Administrative practice and procedure, Bank deposit insurance, 
Banks, banking, Reporting and recordkeeping requirements, Safety and 
soundness.

12 CFR Part 570

    Accounting, Administrative practice and procedure, Bank deposit 
insurance, Holding companies, Reporting and recordkeeping requirements, 
Savings associations, Safety and soundness.

Office of the Comptroller of the Currency

12 CFR CHAPTER I

Authority and Issuance

    For the reasons set out in the joint preamble, the OCC amends part 
30 of chapter I of title 12 of the Code of Federal Regulations as 
follows:

PART 30--SAFETY AND SOUNDNESS STANDARDS

    Accordingly, the interim rule amending 12 CFR part 30, which was 
published at 63 FR 55486 on October 15, 1998, was superseded by an 
interim rule published at 64 FR 52638 on September 30, 1999.

    Dated: October 12, 1999.
John D. Hawke, Jr.,
Comptroller of the Currency.

Federal Reserve System

12 CFR CHAPTER II

    For the reasons set out in the joint preamble, the Board amends 
part 263 of chapter II of title 12 of the Code of Federal Regulations 
as follows:

PART 263--RULES OF PRACTICE FOR HEARINGS

    Accordingly, the interim rule amending 12 CFR part 263, which was 
published at 63 FR 55486 on October 15, 1998, is adopted as a final 
rule without change.

    By Order of the Board of Governors of the Federal Reserve 
System.


[[Page 66708]]


    Dated: October 22, 1999.
Robert deV. Frierson,
Associate Secretary of the Board.

Federal Deposit Insurance Corporation

12 CFR CHAPTER III

    For the reasons set out in the joint preamble, the FDIC amends part 
364 of chapter III of title 12 of the Code of Federal Regulations as 
follows:

PART 364--STANDARDS FOR SAFETY AND SOUNDNESS

    Accordingly, the interim rule amending 12 CFR part 364, which was 
published at 63 FR 55486 on October 15, 1998, is adopted as a final 
rule without change.

    By Order of the Board of Directors.

    Dated at Washington, DC, this 8th Day of November, 1999.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.

Office of Thrift Supervision

12 CFR CHAPTER V

Authority and Issuance

    For the reasons set out in the joint preamble, the interim rule 
amending 12 CFR part 570, which was published at 63 FR 55486 on October 
15, 1998, is adopted as a final rule with the following change:

PART 570--SUBMISSION AND REVIEW OF SAFETY AND SOUNDNESS COMPLIANCE 
PLANS AND ISSUANCE OF ORDERS TO CORRECT SAFETY AND SOUNDNESS 
DEFICIENCIES

    1. The authority citation for part 570 continues to read as 
follows:

    Authority: 12 U.S.C. 1831p-1.

    2. Section 570.1(c) is revised to read as follows:


Sec. 570.1  Authority, purpose, scope and preservation of existing 
authority.

* * * * *
    (c) Scope. This part and the Interagency Guidelines Establishing 
Safety and Soundness Standards as set forth at Appendix A to this part 
and the Interagency Guidelines Establishing Year 2000 Standards for 
Safety and Soundness as set forth at Appendix B to this part implement 
the provisions of section 39 of the FDI Act as they apply to savings 
associations.
* * * * *

    Dated: October 15, 1999.
Ellen Seidman,
Director.
[FR Doc. 99-30285 Filed 11-26-99; 8:45 am]
BILLING CODE 4810-33-U; 6210-01-U; 6714-01-U; 6720-01-U