[Federal Register Volume 72, Number 7 (Thursday, January 11, 2007)]
[Rules and Regulations]
[Pages 1274-1276]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-79]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 26

[Docket No. 2006-16]
RIN 1557-AD01

FEDERAL RESERVE SYSTEM

12 CFR Part 212

[Regulation L; Docket No. R-1272]

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 348

RIN 3064-AD13

DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 563f

[Docket No. 2006-47]
RIN 1550-AC09


Management Official Interlocks

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 interim rule with request for comment.

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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 amending their rules regarding 
management interlocks to implement section 610 of the Financial 
Services Regulatory Relief Act of 2006 (FSRRA) and to correct 
inaccurate cross-references.

DATES: This interim rule is effective on January 11, 2007. Comments on 
the rule must be received by February 12, 2007.

ADDRESSES: Comments should be directed to:
    OCC: You should include OCC and Docket Number 2006-16 in your 
comment. You may submit comments by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     OCC Web Site: http://www.occ.treas.gov. Click on ``Contact 
the OCC,'' scroll down and click on ``Comments on Proposed 
Regulations.''
     E-mail address: [email protected].
     Fax: (202) 874-4448.
     Mail: Office of the Comptroller of the Currency, 250 E 
Street, SW., Mail Stop 1-5, Washington, DC 20219.
     Hand Delivery/Courier: 250 E Street, SW., Attn: Public 
Information Room, Mail Stop 1-5, Washington, DC 20219.
    Instructions: All submissions received must include the agency name 
(OCC) and docket number or Regulatory Information Number (RIN) for this 
interim rule. In general, the OCC will enter all comments received into 
the docket without change, including any business or personal 
information that you provide. You may review comments and other related 
materials by any of the following methods:
    Viewing Comments Personally: You may personally inspect and 
photocopy comments at the OCC's Public Information Room, 250 E Street, 
SW., Washington, DC. You can make an appointment to inspect comments by 
calling (202) 874-5043.
    Board: You may submit comments, identified by Docket No. R-1272, by 
any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: [email protected]. Include docket 
number in the subject line of the message.
     FAX: 202/452-3819 or 202/452-3102.
     Mail: Jennifer J. Johnson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue, 
NW., Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper in Room MP-500 of the Board's Martin Building (20th and C 
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.
    FDIC: You may submit comments, identified by RIN number, by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Agency Web Site: http://www.fdic.gov/regulations/laws/federal/propose.html.
     Mail: Robert E. Feldman, Executive Secretary, Attention: 
Comments, Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429.
     Hand Delivery/Courier: Guard station at rear of the 550 
17th Street Building (located on F Street) on business days between 7 
a.m. and 5 p.m.
     E-mail: [email protected].
     Public Inspection: Comments may be inspected at the FDIC 
Public Information Center, Room E-1002, 3502 Fairfax Drive, Arlington, 
VA 22226, between 9 a.m. and 5 p.m. on business days.
    Instructions: Submissions received must include the agency name and 
RIN for this rulemaking. Comments received will be posted without 
change to http://www.fdic.gov/regulations/laws/federal/propose.html 
including any personal information provided.
    OTS: You may submit comments, identified by No. 2006-47, by any of 
the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail address: [email protected]. Please 
include No. 2006-47 in the subject line of the message and include your 
name and telephone number in the message.
     Fax: (202) 906-6518.
     Mail: Regulation Comments, Chief Counsel's Office, Office 
of Thrift Supervision, 1700 G Street, NW., Washington, DC 20552, 
Attention: No. 2006-47.
     Hand Delivery/Courier: Guard's Desk, East Lobby Entrance, 
1700 G Street, NW., from 9 a.m. to 4 p.m. on business days, Attention: 
Regulation Comments, Chief Counsel's Office, Attention: No. 2006-33.
    Instructions: All submissions received must include the agency name 
and docket number or Regulatory Information Number (RIN) for this 
rulemaking. All comments received will be posted without change to the 
OTS Internet Site at http://www.ots.treas.gov/ 
pagehtml.cfm?catNumber=67&an=1,

[[Page 1275]]

including any personal information provided.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.ots.treas.gov/pagehtml.cfm?catNumber=67&an=1.
    In addition, you may inspect comments at the Public Reading Room, 
1700 G Street, NW., by appointment. To make an appointment for access, 
call (202) 906-5922, send an e-mail to public.info@ots.treas.gov">public.info@ots.treas.gov, or 
send a facsimile transmission to (202) 906-7755. (Prior notice 
identifying the materials you will be requesting will assist us in 
serving you.) We schedule appointments on business days between 10 a.m. 
and 4 p.m. In most cases, appointments will be available the next 
business day following the date we receive a request.

FOR FURTHER INFORMATION CONTACT:
    OCC: Heidi M. Thomas, Special Counsel, Legislative and Regulatory 
Activities Division, (202) 874-4688; Sue Auerbach, Counsel, Bank 
Activities and Structure Division, (202) 874-5300; or Cheryl A. Martin, 
Senior Licensing Analyst, Licensing Activities Division, (202) 874-
4614, Office of the Comptroller of the Currency, 250 E Street SW., 
Washington, DC 20219.
    Board: Andrew S. Baer, Counsel, (202) 452-2246, or Jennifer L. 
Sutton, Attorney, (202) 452-3564, Legal Division. For users of 
Telecommunication Device for the Deaf (TDD) only, contact (202) 263-
4869.
    FDIC: Patricia A. Colohan, Senior Examination Specialist, Division 
of Supervision and Consumer Protection, (202) 898-7283, or Leneta G. 
Gregorie, Counsel, Legal Division, (202) 898-3719.
    OTS: David J. Bristol, Senior Attorney, (202) 906-6461, Business 
Transactions Division, Office of Thrift Supervision, or Donald W. 
Dwyer, Director of Applications, Examinations and Supervision--
Operations, (202) 906-6414, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

I. Background

    The Depository Institution Management Interlocks Act (12 U.S.C. 
3201 et seq.) (Interlocks Act or Act) prohibits individuals from 
simultaneously serving as a management official \1\ at two unaffiliated 
depository institutions or their holding companies (collectively, 
depository organizations) under certain circumstances. For example, 
section 203(1) of the Act (12 U.S.C. 3202(1)) prohibits interlocks 
between unaffiliated depository organizations if each depository 
organization (or a depository institution affiliate thereof) has an 
office in the same relevant metropolitan statistical area (RMSA) (RMSA 
prohibition), unless each of the depository organizations involved has 
total assets below a specified threshold (small institution exception). 
Prior to enactment of the FSRRA, this asset threshold was $20 million. 
However, section 610 of the FSRRA amended the Interlocks Act by raising 
this asset threshold to $50 million, effective as of October 13, 
2006.\2\
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    \1\ Each of the Agencies' regulations generally define 
``management official'' to include a director, an advisory or 
honorary director of a depository institution with total assets of 
$100 million or more, a senior executive officer, a branch manager, 
a trustee of a depository organization under the control of 
trustees, and any person who has a representative or nominee serving 
in such capacity. See 12 CFR 26.2(j) (OCC); 12 CFR 212.2(j) (Board); 
12 CFR 348.2(j) (FDIC); and 12 CFR 563f.2(j) (OTS).
    \2\ Pub. L. 109-351, Sec.  610, 120 Stat.--(Oct. 13, 2006).
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II. Interim Rule

    The Agencies are amending their rules in order to implement section 
610 of the FSRRA. Specifically, the interim rules modify the RMSA 
prohibition to allow a management official of one depository 
organization to serve as a management official of an unaffiliated 
depository organization that has an office in the same RMSA as the 
first organization if each of the depository organizations in question 
(or a depository institution affiliate thereof) has total assets of 
less than $50 million.
    This interim rule also makes technical changes to correct 
inaccurate cross-references in the definition of management official in 
each of the Agencies' rules.

III. Regulatory Analysis

Plain Language

    Section 722 of the Gramm-Leach-Bliley Act (12 U.S.C. 4809) requires 
the Agencies to use ``plain language'' in all rules published in the 
Federal Register after January 1, 2000. The Agencies believe the 
interim rules are presented in a simple and straightforward manner.

Administrative Procedure Act

    The interim rule takes effect upon publication in the Federal 
Register. The interim rule implements a statutory change that took 
effect upon enactment on October 13, 2006. The new statutory provision 
itself gives the Agencies no discretion to modify the asset-size 
threshold for the small institution exception. The technical 
corrections of cross-references effected by the interim rule have no 
substantive effect. For the foregoing reasons, notice and public 
procedure are unnecessary. Accordingly, pursuant to 5 U.S.C. 553(b), 
the Agencies find good cause for making the rule effective as of 
January 11, 2007 without first seeking and reviewing public comment. 
However, the Agencies nonetheless invite public comment on the interim 
rule and will amend the rules if appropriate after reviewing public 
comments.

Regulatory Flexibility Act

    Pursuant to section 605(b) of the Regulatory Flexibility Act (RFA) 
(5 U.S.C. 605(b)), the regulatory flexibility analysis otherwise 
required under section 603 of the RFA (5 U.S.C. 603) is not required if 
the head of the agency certifies that the rule will not have a 
significant economic impact on a substantial number of small entities 
and the agency publishes such certification and a statement explaining 
the factual basis for such certification in the Federal Register along 
with its rule.
    Pursuant to section 605(b) of the RFA, each of the Agencies 
certifies that this interim rule will not have a significant economic 
impact on a substantial number of small entities. The Agencies expect 
that this rule will not create any additional burden on small entities. 
The interim rule relaxes the criteria for obtaining an exemption from 
the RMSA prohibition, and specifically addresses the needs of small 
entities by allowing greater numbers of small organizations to qualify 
for the small institution exception from the RMSA prohibition. 
Accordingly, a regulatory flexibility analysis is not required.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3506; 5 CFR part 1320 Appendix A.1), the Agencies have determined that 
no collections of information pursuant to the Paperwork Reduction Act 
are contained in the interim rule.

OCC and OTS Executive Order 12866 Statement

    The OCC and OTS each have independently determined that the interim 
rule is not a ``significant regulatory action'' as defined in Executive 
Order 12866. Accordingly, a regulatory assessment is not required.

OCC and OTS Unfunded Mandates Act of 1995 Statement

    Section 202 of the Unfunded Mandates Reform Act of 1995 (2 U.S.C. 
1532), requires the OCC and OTS to prepare a budgetary impact statement 
before promulgating a rule that includes

[[Page 1276]]

a federal mandate that may result in the expenditure by state, local, 
and tribal governments, in the aggregate, or by the private sector, of 
$100 million or more in any one year. However, this requirement does 
not apply to regulations that incorporate requirements specifically set 
forth in law. Because this interim rule implements section 610 of the 
FSRRA, the OTS and OCC have not conducted an Unfunded Mandates Analysis 
for this rulemaking.

List of Subjects

12 CFR Part 26

    Antitrust, Holding companies, National banks.

12 CFR Part 212

    Antitrust, Banks, banking, Holding companies.

12 CFR Part 348

    Antitrust, Banks, banking, Holding companies.

12 CFR Part 563f

    Antitrust, Holding companies, Reporting and recordkeeping 
requirements, Savings associations.

Office of the Comptroller of the Currency

12 CFR Chapter I

Authority and Issuance

0
For the reasons set out in the joint preamble, part 26 of chapter I of 
title 12 of the Code of Federal Regulations is amended as follows:

PART 26--MANAGEMENT OFFICIAL INTERLOCKS

0
1. The authority citation for part 26 continues to read as follows:

    Authority: 12 U.S.C. 93a and 3201-3208.


Sec.  26.2  [Amended]

0
2. Amend Sec.  26.2(k)(1)(vi) by removing ``(m)(1)'' and adding in its 
place ``(k)(1)''.


Sec.  26.3  [Amended]

0
3. Amend Sec.  26.3(b) by removing ``$20'' and adding in its place 
``$50''.

Federal Reserve System

12 CFR Chapter II

Authority and Issuance

0
For the reasons set out in the joint preamble, part 212 of chapter II 
of title 12 of the Code of Federal Regulations is amended as follows:

PART 212--MANAGEMENT OFFICIAL INTERLOCKS

0
1. The authority citation for part 212 continues to read as follows:

    Authority: 12 U.S.C. 3201-3208; 15 U.S.C. 19.


Sec.  212.2  [Amended]

0
2. Amend Sec.  212.2(j)(1)(iii) by removing ``12 CFR 225.71(a)'' and 
adding in its place ``12 CFR 225.71(c)''.

0
3. Amend Sec.  212.2(j)(1)(vi), by removing ``(p)'' and adding in its 
place ``(n)'' and by removing ``(l)(1)'' and adding in its place 
``(j)(1)''.


Sec.  212.3  [Amended]

0
4. Amend Sec.  212.3(b) by removing ``$20'' and adding in its place 
``$50''.

Federal Deposit Insurance Corporation

12 CFR Chapter III

Authority and Issuance

0
For the reasons set forth in the joint preamble, part 348 of chapter 
III of title 12 of the Code of Federal Regulations is amended as 
follows:

PART 348--MANAGEMENT OFFICIAL INTERLOCKS

0
1. The authority citation for part 348 continues to read as follows:

    Authority: 12 U.S.C. 1823(k), 3207.


Sec.  348.2  [Amended]

0
2. Amend Sec.  348.2(j)(1)(vi), by removing ``(l)(1)'' and adding in 
its place ``(j)(1)''.


Sec.  348.3  [Amended]

    3. Amend Sec.  348.3(b) by removing ``$20'' and adding in its place 
``$50''.

Office of Thrift Supervision

12 CFR Chapter V

Authority and Issuance

0
For the reasons set out in the joint preamble, part 563f of chapter V 
of title 12 of the Code of Federal Regulations is amended as follows:

PART 563f--MANAGEMENT OFFICIAL INTERLOCKS

0
1. The authority citation for part 563f continues to read as follows:

    Authority: 12 U.S.C. 3201-3208.


Sec.  563f.2  [Amended]

0
2. Amend Sec.  563f.2(j)(1)(vi) by removing ``(l)(1)'' and adding in 
its place ``(j)(1)''.


Sec.  563f.3  [Amended]

0
3. Amend Sec.  563f.3(b) by removing ``$20'' and adding in its place 
``$50''.

    Dated: December 6, 2006.
John C. Dugan,
Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, January 8, 2007.
Jennifer J. Johnson,
Secretary of the Board.
    By order of the Board of Directors.

    Dated at Washington, DC, this 22nd day of December, 2006.
Robert E. Feldman,
Executive Secretary, Federal Deposit Insurance Corporation.
    Dated: December 4, 2006.

    By the Office of Thrift Supervision.
John J. Reich,
Director.

[FR Doc. 07-79 Filed 1-10-07; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6717-01-P; 6720-01-P