[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Notices]
[Pages 81861-81862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32916]


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FEDERAL HOUSING FINANCE BOARD

[No. 2000-N-9]


Notice of Receipt of Petition for Case-by-Case Determination

AGENCY: Federal Housing Finance Board.

ACTION: Notice.

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SUMMARY: Notice is hereby given that the Federal Housing Finance Board 
(Finance Board) has received a Petition from the Federal Home Loan Bank 
(Bank) of Dallas for Finance Board approval of an application for 
membership in the Dallas Bank by Washington Mutual Bank, FA (WMBFA), 
currently a member of the San Francisco Bank, upon completion of the 
merger of Bank United into WMBFA, under section 4(b) of the Federal 
Home Loan Bank Act (Bank Act) and Sec. 925.18(a)(2) of the Finance 
Board's membership regulations. The effect of such an approval would be 
to allow WMBFA to be a member of both the San Francisco and the Dallas 
Banks.

ADDRESSES: Send Requests to Intervene to: Elaine L. Baker, Secretary to 
the Board, at the Federal Housing Finance Board, 1777 F Street, NW., 
Washington, DC 20006. Copies of non-confidential portions of the 
Petition and of non-confidential portions of Requests to Intervene will 
be available for inspection at this address.

FOR FURTHER INFORMATION CONTACT: James L. Bothwell, Managing Director 
and Chief Economist, (202) 408-2821; Scott L. Smith, Acting Director, 
Office of Policy, Research and Analysis, (202) 408-2991; Deborah F. 
Silberman, General Counsel, (202) 408-2570. Staff also can be reached 
by regular mail at the Federal Housing Finance Board, 1777 F Street, 
NW., Washington, DC 20006.

SUPPLEMENTARY INFORMATION: Section 907.8(a) of the Finance Board's 
regulations provides that a Bank may file a Petition for Case-by-Case 
Determination with the Finance Board concerning any matter that may 
require a determination, finding or approval under the Bank Act or 
Finance Board regulations by the Board of Directors, and for which no 
controlling statutory, regulatory or other Finance Board standard 
previously has been established. See 12 CFR 907.8(a). Section 907.12(a) 
of the Finance Board's regulations requires the Finance Board to 
promptly publish a notice of receipt of a Petition for Case-by-Case 
Determination, including a brief summary of the issue(s) involved, in 
the Federal Register. Id. Sec. 907.12(a).
    The Dallas Bank has filed a Petition for Case-by-Case 
Determination, dated December 8, 2000, and received by the Finance 
Board on December 11, 2000 (Petition), requesting that the Finance 
Board approve the membership of WMBFA in the Dallas Bank upon 
completion of the merger of Bank United into WMBFA, under section 4(b) 
of the Bank Act and Sec. 925.18(a)(2) of the Finance Board's 
regulations, thereby allowing WMBFA to be a member of both the San 
Francisco and Dallas Banks. See 12 U.S.C. 1424(b); 12 CFR 925.18(a)(2). 
The Finance Board is hereby providing notice of receipt of such 
Petition, pursuant to 12 CFR 907.12(a).
    WMBFA, a member of the San Francisco Bank, is awaiting approval 
from its primary bank regulators of its proposed acquisition of Bank 
United, a Dallas Bank member, which would be merged into WMBFA and its 
charter cancelled. Upon consummation of the merger, WMBFA would seek to 
retain its current membership in the San Francisco Bank and to gain 
membership in the Dallas Bank, as if it had maintained the Bank United 
charter. To that end, on November 24, 2000, WMBFA submitted a 
membership application to the Dallas Bank. According to the Petition, 
on November 29, 2000, the Dallas Bank found that WMBFA satisfied the 
eligibility requirements for membership set forth in section 4 of the 
Bank Act and part 925 of the Finance Board's regulations, see 12 U.S.C. 
1424, 12 CFR part 925, and approved WMBFA's membership in the Dallas 
Bank contingent upon approval by the Finance Board of WMFBA's 
membership in the Dallas Bank under section 4(b) of the Bank Act and 
Sec. 925.18(a)(2) of the Finance Board's regulations. 12 U.S.C. 
1424(b); 12 CFR 925.18(a)(2).
    Section 4(b) of the Bank Act states that:

    An institution eligible to become a member under this section 
may become a member only of, or secure advances from, the [Bank] of 
the district in which is located the institution's principal place 
of business, or of the [B]ank of a district adjoining such district, 
if demanded by convenience and then only with the approval of the 
[Finance] Board.

12 U.S.C. 1424(b); see 12 CFR 925.18(a)(2).

    The Petition supplies a legal opinion that the above-referenced 
statutory and implementing regulatory language may be interpreted to 
allow a Bank to be a member of both the Bank in the district where its 
principal place of business is located, and the Bank in the district 
adjoining such district and, therefore, that WMBFA may be a member 
simultaneously of the San Francisco and Dallas Banks.\1\ The Petition 
further argues that, as a factual matter, WMBFA's membership in the 
Dallas Bank meets the ``demanded by convenience'' standard set forth in 
section 4(b) of the Bank Act and Sec. 925.18(a)(2) of the Finance 
Board's regulations. Accordingly, the Petition requests Finance Board 
approval of WMBFA's membership in the Dallas Bank under section 4(b) 
and Sec. 925.18(a)(2), thereby allowing WMBFA to be a member of both 
the San Francisco and Dallas Banks.
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    \1\ The San Francisco and Dallas Bank districts are adjoining 
districts.
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    The Petition raises numerous fundamental legal, political and 
policy issues of first impression that are critical to the structure 
and function of the Bank System, such as the continued consolidation of 
the financial institutions industry and the effect of that 
consolidation on the economics, regional structure and cooperative 
nature of the Bank System, and the impact of all of those changes on 
the Banks as they implement a new capital structure.
    Pursuant to the Finance Board's procedures under 12 CFR part 907, 
any member, Bank, or the Office of Finance may file a Request to 
Intervene in the consideration of the Petition in accordance with 12 
CFR 907.11 if it believes its rights may be affected by the issues 
raised by the Petition. Any Request to Intervene must be in writing and 
must be filed with the Secretary to

[[Page 81862]]

the Finance Board within 45 days from the date the Petition was filed. 
Requests to Intervene may include a Request to Appear before the Board 
of Directors in any meeting conducted under the Finance Board's 
procedures to consider the Petition.

    Dated: December 20, 2000.
William C. Apgar,
HUD Secretary's Designee to the Finance Board
[FR Doc. 00-32916 Filed 12-26-00; 8:45 am]
BILLING CODE 6725-01-P