[Federal Register Volume 72, Number 244 (Thursday, December 20, 2007)]
[Proposed Rules]
[Page 72264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-24743]


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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. 72, No. 244 / Thursday, December 20, 2007 / 
Proposed Rules  

[[Page 72264]]



DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Parts 544 and 552

[Docket ID OTS-2007-0025]
RIN 1550-ACOO


Federal Savings Association Bylaws; Integrity of Directors; 
Withdrawal of Proposed Rule

AGENCY: Office of Thrift Supervision, Treasury.

ACTION: Proposed rule; withdrawal.

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SUMMARY: The Office of Thrift Supervision (OTS) is withdrawing the 
proposed rule. The proposed rule would have amended OTS's regulations 
concerning corporate governance to permit federally chartered savings 
associations and mutual holding companies (collectively, federal 
savings associations) to adopt a preapproved bylaw that would have 
precluded certain persons from serving on the adopting federal savings 
association's board of directors, and from nominating others to so 
serve. In addition, the proposed preapproved bylaw would have precluded 
any entity owned or controlled by a prohibited person from nominating 
anyone to serve on the adopting federal savings association's board of 
directors.\1\
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    \1\ OTS proposed amending regulations governing bylaws of 
federal stock and federal mutual savings associations. However, 
OTS's regulations governing mutual holding companies incorporate the 
bylaw provisions of federal stock and federal mutual savings 
associations.

DATES: The amendments to 12 CFR 544.5 and 552.5 proposed in the Federal 
Register on February 14, 2006, at 71 FR 7695, are withdrawn as of 
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December 20, 2007.

FOR FURTHER INFORMATION CONTACT: Aaron B. Kahn, Assistant Chief 
Counsel, Business Transactions Division, (202) 906-6263; or Donald W. 
Dwyer, Director, Applications, Examinations and Supervision-Operations, 
(202) 906-6414, Office of Thrift Supervision, 1700 G Street, NW., 
Washington, DC 20552.

SUPPLEMENTARY INFORMATION:

I. Background

    In 2001 OTS adopted a regulation that provided for preapproved 
optional bylaws for federally chartered savings associations. OTS 
simultaneously promulgated an optional preapproved bylaw providing 
integrity standards for directors of such associations. On February 14, 
2006, OTS published a proposed rule, which, if adopted, would have 
amended the rules governing the permissible bylaws for federal savings 
associations to permit a federal savings association to adopt an 
optional bylaw precluding persons who, among other things, have ever 
been subject to certain cease and desist orders entered by any of the 
banking agencies from serving on the adopting federal savings 
association's board of directors. In addition, under the optional bylaw 
provision, persons precluded from serving as a director could have been 
prohibited from nominating others to serve as a director, and entities 
controlled by a ineligible person could have similarly been precluded 
from nominating directors.\2\
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    \2\ 71 FR 7695 (Feb. 14, 2006).
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    OTS received ten comments on the proposed rule. Eight comments 
favored the proposal and/or sought to extend the restrictions included 
in the proposed optional bylaw. Two comments objected to the proposal.
    After reviewing the public comments, as well as other relevant 
considerations, OTS has concluded that the proposed rule should be 
withdrawn.

Withdrawal of the Proposed Rule

    In light of the foregoing, OTS withdraws its proposal published in 
the Federal Register on February 14, 2006 at 71 FR 7695.

    Dated: December 14, 2007.

    By the Office of Thrift Supervision.
John M. Reich,
Director.
 [FR Doc. E7-24743 Filed 12-19-07; 8:45 am]
BILLING CODE 6720-01-P