[Federal Register Volume 65, Number 187 (Tuesday, September 26, 2000)]
[Proposed Rules]
[Page 57748]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24619]


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 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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  Federal Register/Vol. 65, No. 187/Tuesday, September 26, 2000/
Proposed Rules  

[[Page 57748]]



FEDERAL HOUSING FINANCE BOARD

12 CFR Parts 917, 925, 930, 931, 932, 933, 956, and 960

[No. 2000-23]
RIN 3069-AB01


Capital Requirements for Federal Home Loan Banks

AGENCY: Federal Housing Finance Board.

ACTION: Proposed Rule; extension of public comment period.

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SUMMARY: On July 13, 2000, the Federal Housing Finance Board (Finance 
Board) published a proposed rule in the Federal Register (65 FR 43408 
(July 13, 2000)) that would amend its regulations to implement a new 
capital structure for the Federal Home Loan Banks (Banks), as is 
required by the Gramm-Leach-Bliley Act (GLB Act). As discussed in that 
Federal Register release, the GLB Act mandates a new, risk-based 
capital structure for the Bank system that includes elements with more 
permanence than the one based on six-month redeemable stock that had 
been in effect. The capital system which governed the Banks prior to 
the GLB Act amendments remains in effect until the new capital 
regulations are adopted and the Banks fulfill the transition 
requirements set forth in those rules. The timely transition to the new 
capital structure is especially important given that the GLB Act 
eliminated mandatory membership requirements for federal savings 
associations, and membership in the Bank system is now voluntary for 
all members. The GLB Act also required the Finance Board to issue 
regulations implementing the capital requirement by November 12, 2000.
    The proposed regulation provided for a public comment period of 
ninety days, which would have ended on October 11, 2000. Numerous 
commenters have requested that the Finance Board extend this comment 
period to allow the Banks and their membership time to fully discuss 
the new capital regulation before submitting comments on the proposal. 
Commenters have suggested extensions of the comment period of 60 days, 
180 days and even one year. The Finance Board realizes that well-
considered comments from the Banks and their members are essential to 
developing a regulation that allows a smooth transition to the new 
capital structure. The Finance Board also recognizes, however, the 
importance to the Bank system of implementing this new structure within 
the transition period mandated by the GLB Act. To balance these goals, 
the Finance Board is committed to finding ways to implement the new 
statutory requirements and work productively with the Banks and their 
membership in developing the new rules. Thus, after considering the 
requests for extension of the public comment period and the importance 
of fulfilling the legal and regulatory goals of the GLB Act, the 
Finance Board is extending the close of the comment period for the 
proposed capital regulation from October 11, 2000 until November 20, 
2000.

DATES:  The comment period on the proposed rule is extended until 
November 20, 2000.

ADDRESSES: Comments should be mailed to: Elaine L. Baker, Secretary to 
the Board, by electronic mail at [email protected], or by regular mail at 
the Federal Housing Finance Board, 1777 F Street, NW., Washington, DC 
20006. Comments will be available for public inspection at this 
address.

FOR FURTHER INFORMATION CONTACT: Scott L. Smith, Acting Director, (202) 
408-2991; Ellen Hancock, Senior Financial Analyst, (202) 408-2906; or 
Christina Muradian, Senior Financial Analyst, (202) 408-2584; or Julie 
Paller, Senior Financial Analyst, (202) 408-2482, Office of Policy 
Research and Analysis; or Deborah F. Silberman, General Counsel, (202) 
408-2570; or Neil R. Crowley, Deputy General Counsel (202) 408-2990; or 
Thomas E. Joseph, Attorney-Advisor, (202) 408-2512, Office of General 
Counsel, Federal Housing Finance Board, 1777 F Street, NW., Washington, 
DC 20006. A telecommunication device for deaf persons (TDD) is 
available at (202) 408-2579.

    Dated: September 19, 2000.

    By the Board of Directors of the Federal Housing Finance Board.
William C. Apgar,
HUD Secretary Designee to the Board.
[FR Doc. 00-24619 Filed 9-25-00; 8:45 am]
BILLING CODE 6725-01-P