[Federal Register Volume 87, Number 169 (Thursday, September 1, 2022)]
[Rules and Regulations]
[Pages 53988-54026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-18203]



[[Page 53987]]

Vol. 87

Thursday,

No. 169

September 1, 2022

Part III





Federal Reserve System





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 12 CFR Part 265





Rules Regarding Delegation of Authority; Final Rule

  Federal Register / Vol. 87 , No. 169 / Thursday, September 1, 2022 / 
Rules and Regulations  

[[Page 53988]]


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FEDERAL RESERVE SYSTEM

12 CFR Part 265

[Docket No. R-1778]
RIN No. 7100-AG 37


Rules Regarding Delegation of Authority

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Final rule.

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SUMMARY: The Board is adopting a final rule that revises its rules 
regarding delegation of authority. The final rule codifies and revises 
delegations of authority previously approved by the Board, makes 
technical changes, and rescinds moot or superseded delegations.

DATES: Effective September 1, 2022.

FOR FURTHER INFORMATION CONTACT: Alison Thro, Deputy Associate General 
Counsel, (202) 452-3236; Amory Goldberg, Senior Counsel, (202) 452-
3124; Andrew Hartlage, Senior Counsel, (202) 452-6483; Derald Seid, 
Senior Counsel, (202) 452-2246; David Imhoff, Attorney, (202) 452-2249; 
or Jasmin Keskinen, Attorney, (202) 475-6650, Legal Division; Vaishali 
Sack, Deputy Associate Director, (202) 452-5221, or Dana Burnett, 
Assistant Director, (202) 973-7317, Division of Supervision and 
Regulation, Board of Governors of the Federal Reserve System, 20th 
Street and C Street NW, Washington, DC 20551. For users of TTY-TRS, 
please call 711 from any telephone, anywhere in the United States.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 11(k) of the Federal Reserve Act authorizes the Board to 
delegate, by published order or rule and subject to the Administrative 
Procedure Act, any of its functions, other than those related to 
rulemaking or pertaining principally to monetary and credit policies, 
to one or more administrative law judges, members or staff of the 
Board, or the Reserve Banks.\1\ The Board has delegated authority to 
Board members (in their individual capacity and as chairs of committees 
of the Board), Board staff, and the Federal Reserve Banks to take 
certain actions under the various statutes that the Board administers. 
The Board's Rules Regarding Delegation of Authority (delegation rules) 
implement section 11(k) of the Federal Reserve Act and enumerate the 
actions that the Board has determined to delegate. By delegating 
actions that do not raise significant legal, supervisory, or policy 
issues, the Board can respond more efficiently to applications, 
requests, and other matters.
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    \1\ 12 U.S.C. 248(k).
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    The last comprehensive revision of the delegation rules was in 
1991.\2\ By revising the delegation rules as described below, the final 
rule enhances transparency, improves usability, and relieves burden on 
regulated institutions, practitioners before the Board, and Federal 
Reserve staff.
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    \2\ Delegations of Authority, 56 FR 25614 (June 5, 1991).
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I. Codifications, Technical Changes, and Rescissions

    Since 1991, the Board has approved several additional delegations 
in connection with statutory and regulatory changes and in the light of 
supervisory experience. Many delegations of authority are codified in 
the delegation rules (codified delegations), and many others have not 
yet been incorporated into the delegation rules (uncodified 
delegations). The final rule incorporates the uncodified delegations 
into the delegation rules. Table 1 below lists these delegations, 
identifies the delegatee, and notes where within the delegation rules 
the delegations will be incorporated:

 Table 1--Uncodified Delegations To Be Incorporated Into the Delegation
                                  Rules
------------------------------------------------------------------------
       Citation section:          Short description:      Delegated to:
------------------------------------------------------------------------
  Functions delegated to Board members or staff within the Division of
                              Board Members
------------------------------------------------------------------------
265.4(a)(1)...................  To appoint a first and  Chair.
                                 second alternate
                                 director to the Board
                                 of Directors of the
                                 Bank for
                                 International
                                 Settlements.
265.4(a)(2)...................  To make authorizations  Chair.
                                 and determinations
                                 regarding Term
                                 Deposit Facility test
                                 operations.
265.4(a)(3)(i)................  Periodic reports to     Chair.
                                 Congress under
                                 section 13(3)(C)(ii)
                                 of the Federal
                                 Reserve Act (12
                                 U.S.C. 343(3)(C)(ii)).
265.4(a)(3)(ii)...............  Seven-day reports to    Chair.
                                 Congress under
                                 section 13(3)(C)(i)
                                 of the Federal
                                 Reserve Act (12
                                 U.S.C. 343(3)(C)(ii)).
265.4(b)(1)...................  To act on requests for  Chair of the
                                 extensions of State     Committee on
                                 member banks' and       Supervision and
                                 bank holding            Regulation
                                 companies' advanced     (CSR).
                                 approaches first
                                 floor period start
                                 dates.
265.4(c)......................  To grant or deny        Chair of the
                                 requests from the       Committee on
                                 Federal Reserve Banks   Federal Reserve
                                 for exceptions to the   Bank Affairs.
                                 Board's policies on
                                 Federal Reserve Bank
                                 directors.
265.4(g)......................  To approve and submit   Assistant to the
                                 the annual report to    Board,
                                 Congress concerning     Congressional
                                 the Board's             Liaison Office,
                                 compliance with Small   Division of
                                 Business Regulatory     Board Members.
                                 Enforcement Fairness
                                 Act's requirements.
------------------------------------------------------------------------
            Functions delegated to the Secretary of the Board
------------------------------------------------------------------------
265.5(a)(5)...................  To grant or deny        Secretary of the
                                 procedural motions      Board.
                                 arising after an
                                 administrative case
                                 has been forwarded to
                                 the Board for final
                                 decision.
265.5(b)(3)...................  To file reports on      Secretary of the
                                 rulemakings with        Board.
                                 Congress and the GAO
                                 under Small Business
                                 Regulatory
                                 Enforcement Fairness
                                 Act (often referred
                                 to as the
                                 ``Congressional
                                 Review Act'').

[[Page 53989]]

 
265.5(c)(2)...................  To take actions that a  Secretary of the
                                 Reserve Bank could      Board.
                                 take but for a
                                 director interlock at
                                 a savings and loan
                                 holding company
                                 (SLHC).
265.5(c)(4)(i)................  To approve certain      Secretary of the
                                 requests related to     Board.
                                 an SLHC in mutual
                                 form.
265.5(c)(4)(ii)...............  To approve a request    Secretary of the
                                 to deregister as an     Board.
                                 SLHC.
------------------------------------------------------------------------
               Functions delegated to the General Counsel
------------------------------------------------------------------------
265.6(c)(2)...................  To review and act on    General Counsel
                                 requests for            in consultation
                                 permission to           with Division
                                 administer the 49       Director
                                 percent revenue limit   (Supervision
                                 on nonfinancial data    and Regulation
                                 processing activities   (S&R)).
                                 on a business-line or
                                 multiple-entity basis.
265.6(d)(1)...................  To grant exceptions to  General Counsel
                                 management interlocks   in consultation
                                 under the general       with Division
                                 exemption of            Director (S&R).
                                 Regulation L and
                                 subpart J of
                                 Regulation LL.
265.6(d)(2)...................  To approve requests to  General Counsel
                                 extend legacy           in consultation
                                 management interlocks.  with Division
                                                         Director (S&R).
265.6(e)(1)...................  To enter into a cease-  General Counsel
                                 and-desist order,       with
                                 removal and             concurrence of
                                 prohibition order, or   Division
                                 civil money penalty     Director (S&R).
                                 assessment order with
                                 a bank holding
                                 company or any
                                 nonbanking subsidiary
                                 thereof, with a State
                                 member bank, with an
                                 SLHC, or with any
                                 other person or
                                 entity subject to the
                                 Board's jurisdiction
                                 under section 8(b) or
                                 (e) of the Federal
                                 Deposit Insurance Act
                                 (FDI Act) (12 U.S.C.
                                 1818(b) or (e)), when
                                 the order has been
                                 consented to by the
                                 institution or
                                 individual subject to
                                 the order; or to
                                 issue a notice
                                 suspending or
                                 prohibiting an
                                 institution-
                                 affiliated party
                                 under section 8(g) of
                                 the FDI Act (12
                                 U.S.C. 1818(g)) when
                                 the notice has been
                                 consented to by the
                                 individual subject to
                                 the notice.
265.6(e)(2)...................  To stay, modify,        General Counsel
                                 terminate or suspend    with
                                 an order or notice      concurrence of
                                 issued pursuant to      Division
                                 paragraph (e)(1) of     Director (S&R).
                                 this section.
265.6(e)(3)...................  To grant consent to a   General Counsel
                                 person subject to an    with
                                 order of removal and/   concurrence of
                                 or prohibition or       Division
                                 suspension notice or    Director (S&R).
                                 order issued by the
                                 Board or other
                                 Federal financial
                                 institutions
                                 regulatory agency to
                                 become an institution-
                                 affiliated party of,
                                 to otherwise
                                 participate in the
                                 conduct of the
                                 affairs of, or to
                                 take an action with
                                 respect to any voting
                                 rights in, any Board-
                                 supervised
                                 institution or entity.
265.6(h)......................  To determine that a     General Counsel
                                 company is not an       with
                                 SLHC (deregistration)   concurrence of
                                 pursuant to section     Division
                                 10(a)(1)(D)(ii) of      Director (S&R).
                                 the Home Owners' Loan
                                 Act (``HOLA'') (12
                                 U.S.C.
                                 1467a(a)(1)(D)(ii)),
                                 to determine that a
                                 company is not an
                                 SLHC by virtue of its
                                 control of a savings
                                 association that
                                 functions solely in a
                                 trust or fiduciary
                                 capacity as described
                                 in section 2(c)(2)(D)
                                 of the Bank Holding
                                 Company Act (BHC Act)
                                 (12 U.S.C.
                                 1841(c)(2)(D)), where
                                 no significant legal,
                                 policy, or
                                 supervisory issues
                                 are raised by the
                                 specific proposal.
265.6(i)......................  To approve and publish  General Counsel
                                 small entity            in consultation
                                 compliance guides in    with any other
                                 accordance with the     division
                                 Small Business          director
                                 Regulatory              responsible for
                                 Enforcement Fairness    drafting the
                                 Act of 1996.            associated
                                                         rule.
265.6(j)......................  To approve internal     General Counsel
                                 debt conversion         in consultation
                                 triggers that meet      with Division
                                 certain eligibility     Director (S&R).
                                 criteria and that do
                                 not raise significant
                                 legal, policy, or
                                 supervisory issues.
265.6(k)......................  To approve or           General Counsel
                                 disapprove requests     with
                                 under section 19 of     concurrence of
                                 the FDI Act where no    Division
                                 significant legal,      Director (S&R).
                                 policy, or
                                 supervisory issues
                                 are raised by the
                                 specific proposal.
------------------------------------------------------------------------
 Functions delegated to the Director of the Division of Supervision and
                               Regulation
------------------------------------------------------------------------
265.7(a)(1)...................  To refuse, modify,      Division
                                 terminate, or set       Director (S&R).
                                 aside a cease and
                                 desist order for
                                 SLHCs.
265.7(a)(2)...................  To grant, deny,         Division
                                 modify, or extend       Director (S&R).
                                 time for performing a
                                 commitment or
                                 condition relied upon
                                 in taking action
                                 under HOLA.
265.7(a)(3)(i)................  To extend the 60-day    Division
                                 processing period for   Director (S&R)
                                 an acquisition of a     with
                                 bank or bank holding    concurrence of
                                 company filed under     General
                                 section 3 of the BHC    Counsel.
                                 Act (12 U.S.C. 1842),
                                 pursuant to Sec.
                                 225.15(d)(2) of
                                 Regulation Y (12 CFR
                                 225.15(d)(2)).

[[Page 53990]]

 
265.7(a)(3)(ii)(A)............  To extend the 60-day    Division
                                 processing period for   Director (S&R)
                                 a nonbanking proposal   with
                                 filed under section 4   concurrence of
                                 of the BHC Act (12      General
                                 U.S.C. 1843),           Counsel.
                                 pursuant to Sec.
                                 225.24(d)(2) of
                                 Regulation Y (12 CFR
                                 225.24(d)(2)).
265.7(a)(3)(ii)(B)............  To extend the 60-day    Division
                                 processing period for   Director (S&R)
                                 a nonbanking proposal   with
                                 filed under section 4   concurrence of
                                 of the BHC Act (12      General
                                 U.S.C. 1843),           Counsel.
                                 pursuant to section
                                 4(j)(1)(C) of the BHC
                                 Act (12 U.S.C.
                                 1843(j)(1)(C)) and
                                 Sec.   225.24(d)(3)
                                 of Regulation Y (12
                                 CFR 225.24(d)(3)).
265.7(a)(3)(iii)..............  To extend the 60-day    Division
                                 processing period for   Director (S&R)
                                 an acquisition of a     with
                                 savings association     concurrence of
                                 or SLHC filed under     General
                                 section 10(e) of the    Counsel.
                                 HOLA (12 U.S.C.
                                 1467a(e)), pursuant
                                 to Sec.
                                 238.14(g)(2) of
                                 Regulation LL (12 CFR
                                 238.14(g)(2)).
265.7(a)(3)(iv)(A)............  To extend the 60-day    Division
                                 processing period for   Director (S&R)
                                 a nonbanking proposal   with
                                 filed under section     concurrence of
                                 10(c) of the HOLA (12   General
                                 U.S.C. 1467a(c)),       Counsel.
                                 pursuant to Sec.
                                 238.53(f)(2) of
                                 Regulation LL (12 CFR
                                 238.53(f)(2)).
265.7(a)(3)(iv)(B)............  To extend the 60-day    Division
                                 processing period for   Director (S&R)
                                 a nonbanking proposal   with
                                 filed under section     concurrence of
                                 10(c) of the HOLA (12   General
                                 U.S.C. 1467a(c)),       Counsel.
                                 pursuant to Sec.
                                 238.53(f)(3) of
                                 Regulation LL (12 CFR
                                 238.53(f)(3)).
265.7(a)(3)(v)................  To extend, for an       Division
                                 additional 180 days,    Director (S&R)
                                 the 180-day period      with
                                 within which final      concurrence of
                                 Board action is         General
                                 required on an          Counsel.
                                 application pursuant
                                 to section 7(d) of
                                 the International
                                 Banking Act (12
                                 U.S.C. 3105(d).
265.7(a)(4) (formerly           To issue a notice that  Division
 265.7(a)(3)).                   an SLHC has             Director (S&R)
                                 insufficient capital    with
                                 and which directs the   concurrence of
                                 company to file with    General
                                 its regional Reserve    Counsel.
                                 Bank a capital
                                 improvement plan
                                 under subpart E of
                                 the Board's Rules of
                                 Practice for Hearings
                                 (12 CFR part 263,
                                 subpart E).
265.7(c)(1)...................  To promulgate           Division
                                 registration forms,     Director (S&R).
                                 annual reports, and
                                 other forms for SLHCs
                                 under section 10 of
                                 the HOLA (12 U.S.C.
                                 1467a), and in
                                 accordance with 5
                                 U.S.C. 553.
265.7(c)(2)...................  To take actions the     Division
                                 Reserve Banks could     Director (S&R).
                                 take under 12 CFR
                                 265.20(c)(2)(ii) if
                                 immediate or
                                 expeditious action is
                                 required to avert
                                 failure of a savings
                                 association or
                                 because of an
                                 emergency, pursuant
                                 to section 10(c) of
                                 the HOLA (12 U.S.C.
                                 1467a).
265.7(c)(3)...................  To waive, dispense      Division
                                 with, modify, or        Director (S&R).
                                 excuse the failure to
                                 comply with Change in
                                 Bank Control Act (12
                                 U.S.C. 1817(j))
                                 publication
                                 requirements for
                                 SLHCs.
265.7(c)(4)(i)................  To determine the        Division
                                 informational           Director (S&R).
                                 sufficiency of
                                 section 914 notices
                                 under the Financial
                                 Institutions Reform,
                                 Recovery, and
                                 Enforcement Act
                                 (FIRREA) for SLHCs.
265.7(c)(4)(ii)...............  To waive the prior      Division
                                 notice requirements     Director (S&R).
                                 of section 914
                                 notices under FIRREA
                                 for SLHCs.
265.7(c)(5)...................  To provide the          Division
                                 Department of Labor     Director (S&R).
                                 written notification
                                 of possible
                                 significant
                                 violations of the
                                 Employee Retirement
                                 Income Security Act
                                 (ERISA) by SLHCs.
265.7(c)(6)...................  To determine pursuant   Division
                                 to 12 CFR               Director (S&R).
                                 225.63(a)(13) that
                                 the services of an
                                 appraiser are not
                                 necessary for SLHCs.
265.7(c)(7)(i)................  To authorize a          Division
                                 financial holding       Director (S&R),
                                 company, or a foreign   with
                                 bank that has elected   concurrence of
                                 to be treated as a      General
                                 financial holding       Counsel.
                                 company, that is
                                 subject to a
                                 corrective agreement
                                 under section 4(m) of
                                 the BHC Act (12
                                 U.S.C. 1843(m)), to
                                 acquire shares of a
                                 company pursuant to
                                 authority in section
                                 4(k) of the BHC Act
                                 (12 U.S.C. 1843(k))
                                 in order to continue
                                 to engage in ordinary
                                 course merchant
                                 banking;
                                 underwriting, dealing
                                 in, or making a
                                 market in securities;
                                 sponsoring,
                                 organizing, and
                                 managing customer-
                                 driven investment
                                 funds; and hedging
                                 risks incurred in
                                 ongoing permissible
                                 activities.
265.7(c)(7)(ii)...............  To extend the time      Division
                                 within which a          Director (S&R),
                                 financial holding       with
                                 company must execute    concurrence of
                                 a corrective            General
                                 agreement under         Counsel.
                                 section 4(m) of the
                                 BHC Act (12 U.S.C.
                                 1843(m)).
265.7(c)(7)(iii)..............  To extend the time      Division
                                 limits in, or           Director (S&R),
                                 otherwise modify,       with
                                 corrective agreements   concurrence of
                                 under section 4(m) of   General
                                 the BHC Act (12         Counsel.
                                 U.S.C. 1843(m)).
265.7(c)(7)(iv)...............  To determine not to     Division
                                 make public any         Director (S&R),
                                 corrective agreement    with
                                 under section 4(m) of   concurrence of
                                 the BHC Act (12         General
                                 U.S.C. 1843(m)).        Counsel.

[[Page 53991]]

 
265.7(c)(8)...................  To approve requests by  Division
                                 financial holding       Director (S&R),
                                 companies (FHCs) to     with
                                 engage in physical      concurrence of
                                 commodity derivatives   General
                                 pursuant to section     Counsel.
                                 4(k)(1)(B) of the BHC
                                 Act (12 U.S.C.
                                 1843(k)(1)(B)).
265.7(c)(9)...................  To approve requests by  Division
                                 FHCs to hold merchant   Director (S&R),
                                 banking investments     with
                                 beyond the standard     concurrence of
                                 time periods            General
                                 established in Sec.     Counsel.
                                 225.172(b)(4) of
                                 Regulation Y (12 CFR
                                 225.172(b)(4)).
265.7(c)(10)..................  To act on exemption     Division
                                 requests under the      Director (S&R),
                                 single counterparty     with
                                 credit limits rule.     concurrence of
                                                         General
                                                         Counsel.
265.7(c)(11)(i)(A)............  To develop and issue    Division
                                 scenarios for stress    Director (S&R),
                                 testing.                jointly with
                                                         Division
                                                         Director
                                                         (Financial
                                                         Stability
                                                         (FS)), with
                                                         concurrence of
                                                         Chair of the
                                                         CSR.
265.7(c)(11)(i)(B)............  To develop and issue    Division
                                 additional scenarios    Director (S&R),
                                 or additional           jointly with
                                 components for stress   Division
                                 testing.                Director (FS),
                                                         with
                                                         concurrence of
                                                         Chair of the
                                                         CSR.
265.7(c)(11)(ii)(A)...........  To convey to a company  Division
                                 the summary of stress   Director (S&R),
                                 testing results.        with
                                                         concurrence of
                                                         Chair of the
                                                         CSR, after
                                                         consultation
                                                         with the Board.
265.7(c)(11)(ii)(B)...........  To determine the        Division
                                 content and timing of   Director (S&R),
                                 the public disclosure   with
                                 of stress testing       concurrence of
                                 results.                Chair of the
                                                         CSR, after
                                                         consultation
                                                         with the Board
                                                         and Division
                                                         Director (FS).
265.7(c)(11)(ii)(C)...........  To determine any        Division
                                 appropriate updates     Director (S&R),
                                 to a company's          with
                                 resolution plan based   concurrence of
                                 on stress testing       Chair of the
                                 results.                CSR.
265.7(c)(11)(ii)(D)...........  To require a company    Division
                                 to include one or       Director (S&R),
                                 more additional         with
                                 components in its       concurrence of
                                 severely adverse        Chair of the
                                 scenario in its         CSR.
                                 stress test.
265.7(c)(11)(iii)(A)..........  To evaluate whether a   Division
                                 company has necessary   Director (S&R),
                                 capital to absorb       after
                                 losses and continue     consultation
                                 its operation under     with Chair of
                                 stress testing          the CSR.
                                 scenarios.
265.7(c)(11)(iii)(B)..........  To conduct annual       Division
                                 stress tests.           Director (S&R),
                                                         after
                                                         consultation
                                                         with Chair of
                                                         the CSR.
265.7(c)(11)(iii)(C)..........  To require a company    Division
                                 with significant        Director (S&R),
                                 trading activity, or    after
                                 a subsidiary of such    consultation
                                 company, to include a   with Chair of
                                 trading and             the CSR.
                                 counterparty
                                 component in stress
                                 tests.
265.7(c)(11)(iv)..............  To respond to request   Division
                                 for reconsideration     Director (S&R),
                                 that a company is       in consultation
                                 required to include     with General
                                 additional              Counsel.
                                 components, or to use
                                 one or more
                                 additional scenarios.
265.7(c)(11)(v)(A)............  To notify a company     Division
                                 that it is required     Director (S&R).
                                 to include more
                                 components, or to use
                                 one or more
                                 additional scenarios.
265.7(c)(11)(v)(B)............  To coordinate with the  Division
                                 appropriate primary     Director (S&R).
                                 financial regulatory
                                 agencies in
                                 conducting stress
                                 tests.
265.7(c)(11)(v)(C)............  To provide the as-of    Division
                                 date of any             Director (S&R).
                                 scenarios, additional
                                 scenarios, additional
                                 components, and the
                                 relevant data.
265.7(c)(11)(v)(D)............  To extend (and in the   Division
                                 case of nonbank         Director (S&R).
                                 financial companies
                                 supervised by the
                                 Board or savings and
                                 loan holding
                                 companies,
                                 accelerate) the
                                 compliance date for
                                 companies.
265.7(c)(11)(v)(E)(1)-(3).....  To extend certain time  Division
                                 periods.                Director (S&R).
265.7(c)(11)(v)(F)............  To require a company    Division
                                 to submit additional    Director (S&R).
                                 information on a
                                 consolidated basis.
265.7(c)(11)(v)(G)............  To require a company    Division
                                 to submit additional    Director (S&R).
                                 information.
265.7(c)(11)(v)(H)............  To determine that       Division
                                 disclosures made by a   Director (S&R).
                                 bank holding company
                                 do not adequately
                                 capture the potential
                                 impact of scenarios
                                 on the capital of a
                                 State member bank.
265.7(c)(12)..................  To approve (but not     Division
                                 deny) a request by a    Director (S&R),
                                 new banking entity      with
                                 for an extension of     concurrence of
                                 time to conform its     General
                                 activities and          Counsel.
                                 investments to the
                                 requirements of
                                 section 13 of the BHC
                                 Act and its
                                 implementing
                                 regulations.
265.7(d)(7)(i)................  To grant or deny a      Division
                                 request to permit a     Director (S&R),
                                 foreign banking         with
                                 organization to use     concurrence of
                                 an alternative          Chair of the
                                 organizational          CSR and General
                                 structure or not        Counsel.
                                 transfer its
                                 ownership interest in
                                 a U.S. subsidiary to
                                 its intermediate
                                 holding company under
                                 subpart O of
                                 Regulation YY (12 CFR
                                 part 252, subpart O).
265.7(d)(7)(ii)(A)............  To grant or deny        Division
                                 requests for            Director (S&R),
                                 modifying, including    in consultation
                                 extending the time      with General
                                 for, performing a       Counsel.
                                 commitment or
                                 condition relied on
                                 by the Board or its
                                 delegatee in taking
                                 any action under
                                 subparts M through O
                                 of Regulation YY (12
                                 CFR part 252,
                                 subparts M-O).
265.7(d)(7)(ii)(B)(1).........  To determine that an    Division
                                 asset should not        Director (S&R),
                                 qualify as an           in consultation
                                 eligible asset under    with General
                                 Sec.  Sec.   252.146    Counsel.
                                 and 252.158 of
                                 Regulation YY.

[[Page 53992]]

 
265.7(d)(7)(ii)(B)(2).........  To determine that a     Division
                                 foreign banking         Director (S&R),
                                 organization or         in consultation
                                 foreign savings and     with General
                                 loan holding company    Counsel.
                                 must meet the
                                 additional standards,
                                 respectively, under
                                 Sec.   238.162(b) of
                                 Regulation LL (12 CFR
                                 238.162(b)) and Sec.
                                 Sec.   252.146 and
                                 252.158 of Regulation
                                 YY (12 CFR 252.146
                                 and 252.158).
265.7(d)(7)(ii)(B)(3).........  To approve an           Division
                                 enterprise-wide         Director (S&R),
                                 stress test and         in consultation
                                 determine that it       with General
                                 meets the stress test   Counsel.
                                 requirements under
                                 Sec.   238.162(b) of
                                 Regulation LL (12 CFR
                                 238.162(b)) and Sec.
                                 Sec.   252.146 and
                                 252.158 of Regulation
                                 YY (252.146 and
                                 252.158).
265.7(d)(7)(ii)(B)(4).........  To require the U.S.     Division
                                 branches and agencies   Director (S&R),
                                 of a foreign banking    in consultation
                                 organization and, if    with General
                                 the foreign banking     Counsel.
                                 organization has not
                                 established a U.S.
                                 intermediate holding
                                 company, any
                                 subsidiary of the
                                 foreign banking
                                 organization, to
                                 maintain a liquidity
                                 buffer or be subject
                                 to intragroup funding
                                 restrictions under
                                 Sec.   252.158(d)(3)
                                 of Regulation YY (12
                                 CFR 252.158(d)(3)).
265.7(d)(7)(ii)(C)............  To determine that a     Division
                                 foreign banking         Director (S&R),
                                 organization would      in consultation
                                 meet or exceed          with General
                                 capital adequacy        Counsel.
                                 standards on a
                                 consolidated basis
                                 that are consistent
                                 with the Basel
                                 Capital Framework
                                 were the foreign
                                 banking organization
                                 subject to such
                                 standards under Sec.
                                 Sec.   252.143(a)(2)
                                 and 252.154(a)(2) of
                                 Regulation YY (12 CFR
                                 252.143(a)(2) and
                                 252.154(a)(2)).
265.7(d)(7)(ii)(D)............  To approve an           Division
                                 alternative reporting   Director (S&R),
                                 structure for a U.S.    in consultation
                                 chief risk officer      with General
                                 based on                Counsel.
                                 circumstances
                                 specific to the
                                 foreign banking
                                 organization under
                                 Sec.  Sec.
                                 252.144(c)(3)(iii)
                                 and
                                 252.155(b)(3)(iii) of
                                 Regulation YY (12 CFR
                                 252.144(c)(3)(iii)
                                 and
                                 252.155(b)(3)(iii)).
265.7(d)(7)(ii)(E)(1).........  To require a foreign    Division
                                 banking organization    Director (S&R),
                                 to calculate the        in consultation
                                 collateral positions    with General
                                 for its combined U.S.   Counsel.
                                 operations more
                                 frequently than
                                 required under Sec.
                                 252.156(g)(l)(i) of
                                 Regulation YY (12 CFR
                                 252.156(g)(l)(i)).
265.7(d)(7)(ii)(E)(2).........  To require a foreign    Division
                                 banking organization    Director (S&R),
                                 to perform stress       in consultation
                                 testing more            with General
                                 frequently than is      Counsel.
                                 required under Sec.
                                 252.157(a)(2) of
                                 Regulation YY (12 CFR
                                 252.157(a)(2)).
265.7(d)(7)(ii)(F)............  To require a foreign    Division
                                 banking organization    Director (S&R),
                                 to provide additional   in consultation
                                 information under       with General
                                 Sec.  Sec.              Counsel.
                                 252.147(a)(3),
                                 252.153(a)(3) and
                                 252.158(c)(2) of
                                 Regulation YY (12 CFR
                                 252.147(a)(3),
                                 252.153(a)(3) and
                                 252.158(c)(2)), as
                                 appropriate.
265.7(e)(8)...................  To approve (but not     Division
                                 deny) a request to      Director (S&R),
                                 make a distribution     with
                                 pursuant to Sec.        concurrence of
                                 217.303(g) of           Vice Chair for
                                 Regulation Q (12 CFR    Supervision.
                                 217.303(g)).
265.7(g)......................  To approve an           Division
                                 application to make a   Director (S&R),
                                 golden parachute        with
                                 payment or enter into   concurrence of
                                 an agreement to make    General
                                 a golden parachute      Counsel.
                                 payment under 12 CFR
                                 part 359.
265.7(h)......................  To take actions         Division
                                 pursuant to prompt      Director (S&R),
                                 corrective action       with the
                                 under the rules         approval of
                                 implementing section    General
                                 38 of the FDI Act.      Counsel.
265.7(i)......................  To take actions         Division
                                 related to              Director (S&R),
                                 assessments under       in consultation
                                 Regulation TT.          with General
                                                         Counsel.
265.7(j)(1)...................  To take certain         Division
                                 actions relating to     Director (S&R).
                                 capital plans, or
                                 provide concurrence
                                 to the appropriate
                                 Reserve Bank when
                                 appropriate.
265.7(j)(2)...................  To take certain         Division
                                 actions relating to     Director (S&R)
                                 capital plans.          with
                                                         concurrence of
                                                         Chair of the
                                                         CSR, and after
                                                         consultation
                                                         with the Board
                                                         and Division
                                                         Director (FS).
265.7(j)(3)...................  To take certain         Division
                                 actions relating to     Director (S&R),
                                 the Board's capital     jointly with
                                 plan rules.             Division
                                                         Director (FS),
                                                         with
                                                         concurrence of
                                                         Vice Chair for
                                                         Supervision.
265.7(k)......................  Capital delegations     Division
                                 under Regulation Q.     Director (S&R),
                                                         with
                                                         concurrence of
                                                         Chair of the
                                                         CSR, and after
                                                         consultation
                                                         with General
                                                         Counsel.
265.7(l)......................  To act on requests by   Division
                                 financial companies     Director (S&R).
                                 to use accounting
                                 other than GAAP for
                                 Regulation XX, to
                                 calculate the 10
                                 percent liabilities
                                 cap for purposes of
                                 section 622 of the
                                 Dodd-Frank Act, and
                                 to consent to FHC de
                                 minimis transactions
                                 for purposes of
                                 section 622 of the
                                 Dodd-Frank Act.

[[Page 53993]]

 
265.7(m)(1)...................  To extend the time      Division
                                 limits in, or           Director (S&R),
                                 otherwise modify, an    with
                                 agreement entered       concurrence of
                                 into by an SLHC         General
                                 pursuant to Sec.        Counsel.
                                 238.66 of Regulation
                                 LL, determine that
                                 publication of an
                                 agreement entered
                                 into by an SLHC
                                 pursuant to Sec.
                                 238.66 of Regulation
                                 LL would be contrary
                                 to the public
                                 interest under the
                                 publication
                                 requirements of the
                                 FDI Act, and act on
                                 requests for
                                 exemptions or
                                 otherwise make
                                 determinations under
                                 section 11 of HOLA,
                                 as implemented in
                                 Regulation W.
265.7(m)(2)...................  To designate the        Division
                                 responsible Reserve     Director (S&R)
                                 Bank of an SLHC when    with Division
                                 the standard            Director
                                 delegation would not    (DCCA).
                                 result in an
                                 efficient allocation
                                 of supervisory
                                 resources or would
                                 not otherwise be
                                 appropriate.
265.7(n)......................  To approve internal     Division
                                 margin models for       Director (S&R).
                                 entities for which
                                 the Board is the
                                 prudential regulator.
265.7(o)......................  To make certain         Division
                                 determinations under    Director (S&R),
                                 Regulations LL, YY,     in consultation
                                 and QQ.                 with General
                                                         Counsel.
265.7(p)......................  To make certain         Division
                                 determinations under    Director (S&R).
                                 Regulation Q relating
                                 to the exposure
                                 amount of derivatives
                                 contracts.
265.7(q)......................  To organize and         Division
                                 administer the          Director (S&R).
                                 Insurance Policy
                                 Advisory Committee.
------------------------------------------------------------------------
   Functions delegated to the Director of the Division of Consumer and
                            Community Affairs
------------------------------------------------------------------------
265.8(a) (note: delegations to  To oversee policy       Division
 the Director of DCCA            development regarding   Director
 contained in 265.9 are being    compliance by State     (DCCA).
 redesignated to 265.8).         member banks and
                                 other supervised
                                 entities, including
                                 by establishing
                                 criteria for the
                                 execution of
                                 examination and
                                 enforcement
                                 activities delegated
                                 to the Reserve Banks
                                 and monitoring those
                                 activities.
265.8(b) (note: delegations to  To call meetings of     Division
 the Director of DCCA            and consult with the    Director
 contained in 265.9 are being    Community Advisory      (DCCA).
 redesignated to 265.8).         Council, approve the
                                 agenda for such
                                 meetings, publish
                                 Federal Register
                                 notices soliciting
                                 Community Advisory
                                 Council nominations
                                 from the public to
                                 assist in the
                                 selection of
                                 prospective members,
                                 and accept any
                                 resignations from
                                 Community Advisory
                                 Council members.
265.8(h) (note: delegations to  To designate the        Division
 the Director of DCCA            responsible Reserve     Director (DCCA)
 contained in 265.9 are being    Bank of an SLHC when    with Division
 redesignated to 265.8).         the standard            Director (S&R).
                                 delegation would not
                                 result in an
                                 efficient allocation
                                 of supervisory
                                 resources or would
                                 not otherwise be
                                 appropriate.
------------------------------------------------------------------------
 Functions delegated to the Director of the Division of Monetary Affairs
------------------------------------------------------------------------
265.10(a).....................  To adjust the terms     Division
                                 and conditions of       Director (MA)
                                 individual Term         with
                                 Deposit Facility test   concurrence of
                                 operations that raise   General
                                 significant technical   Counsel, and in
                                 or operations issues.   consultation
                                                         with Chair if
                                                         feasible.
265.10(b).....................  To approve the annual   Division
                                 indexation of the       Director (MA)
                                 reserve requirement     with
                                 exemption, low          concurrence of
                                 reserve tranche, non-   General
                                 exempt deposit          Counsel.
                                 cutoff, and reduced
                                 reporting limit
                                 amounts under
                                 Regulation D.
------------------------------------------------------------------------
   Functions delegated to the Director of the Division of Reserve Bank
                     Operations and Payment Systems
------------------------------------------------------------------------
265.11(a)(1)..................  To issue a notice of    Division
                                 no objection to a       Director of the
                                 designated financial    Division of
                                 market utility          Reserve Bank
                                 relating to an          Operations and
                                 advance notice of       Payments
                                 proposed material       Systems
                                 change submitted        (RBOPS).
                                 under section 806(e)
                                 of the Dodd-Frank Act
                                 (12 U.S.C. 5465(e))
                                 and Sec.   234.4 of
                                 Regulation HH (12 CFR
                                 234.4).
265.11(a)(2)..................  To extend the review    Division
                                 period for proposed     Director
                                 changes that raise      (RBOPS).
                                 novel or complex
                                 issues and to request
                                 additional
                                 information from the
                                 designated financial
                                 market utility for
                                 consideration of the
                                 notice.
265.11(b)(1)..................  To approve the          Division
                                 publication of annual   Director
                                 lists of institutions   (RBOPS) in
                                 that fall above and     consultation
                                 below the small         with Division
                                 issuer exemption        Director (S&R)
                                 asset threshold under   and General
                                 Regulation II.          Counsel.
265.11(b)(2)..................  To approve the          Division
                                 publication of annual   Director
                                 lists of the average    (RBOPS) in
                                 interchange fees each   consultation
                                 network provides to     with General
                                 non-exempt and exempt   Counsel.
                                 issuers.
------------------------------------------------------------------------

[[Page 53994]]

 
    Functions delegated to the Director of the Division of Financial
                                Stability
------------------------------------------------------------------------
265.13(a)(1)(i)(A)............  To develop and issue    Division
                                 scenarios for stress    Director (FS),
                                 testing.                jointly with
                                                         Division
                                                         Director (S&R),
                                                         with
                                                         concurrence of
                                                         Chair of the
                                                         CSR.
265.13(a)(1)(i)(B)............  To develop and issue    Division
                                 additional scenarios    Director (FS),
                                 or additional           jointly with
                                 components for stress   Division
                                 testing.                Director (S&R),
                                                         with
                                                         concurrence of
                                                         Chair of the
                                                         CSR.
265.13(b).....................  To take certain         Division
                                 actions relating to     Director (FS),
                                 the Board's capital     jointly with
                                 plan rules.             Division
                                                         Director (S&R),
                                                         with
                                                         concurrence of
                                                         Vice Chair for
                                                         Supervision.
------------------------------------------------------------------------
              Functions delegated to Federal Reserve Banks
------------------------------------------------------------------------
265.20(a)(4) (formerly          To extend the time to   Reserve Bank.
 265.11(a)(4)).                  file a registration
                                 statement for an SLHC
                                 under section 10(b)
                                 of HOLA.
265.20(a)(9) (formerly          To grant a 90-day       Reserve Bank.
 265.11(a)(9)).                  extension to SLHCs to
                                 file an annual report.
265.20(a)(15) (formerly         To enter into a         Reserve Bank,
 265.11(a)(15)).                 written agreement       with the prior
                                 with an SLHC or a non-  approval of
                                 depository or           Division
                                 nonbanking subsidiary   Director (S&R)
                                 thereof.                and General
                                                         Counsel.
265.20(a)(15) (formerly         To enter into a         Reserve Bank,
 265.11(a)(15)).                 written agreement       with the prior
                                 with a foreign bank     approval of
                                 that has elected to     Division
                                 be treated as a         Director (S&R)
                                 financial holding       and General
                                 company.                Counsel.
265.20(c)(1) (formerly          To require reports      Reserve Bank.
 265.11(c)(1)).                  under oath pursuant
                                 to section 10(b)(2)
                                 of HOLA.
265.20(c)(2) (formerly          To notify an SLHC that  Reserve Bank.
 265.11(c)(2)).                  an acquisition should
                                 not be consummated
                                 until authorized by
                                 the Reserve Bank or
                                 Board or to allow an
                                 SLHC to acquire a
                                 going concern before
                                 the 30-day period in
                                 Regulation LL.
265.20(c)(3) (formerly          Petition for review of  Reserve Bank.
 265.11(c)(3)).                  decision that adverse
                                 comments are not
                                 substantive; permit
                                 proposed de novo
                                 activities;
                                 authorization of
                                 consummation.
265.20(c)(4)..................  To approve certain      Reserve Bank.
                                 nonbanking proposals
                                 by bank holding
                                 companies and foreign
                                 banks subject to
                                 section 4 of the BHC
                                 Act.
265.20(c)(5) (formerly          To permit or stay a de  Reserve Bank.
 265.11(c)(4)).                  novo modification or
                                 relocation of
                                 activities by an SLHC.
265.20(c)(6) (formerly          To take certain         Reserve Bank.
 265.11(c)(5)).                  actions under the
                                 Change in Bank
                                 Control Act for SLHCs.
265.20(c)(7)..................  To waive, shorten, or   Reserve Bank.
                                 modify publication
                                 requirements for
                                 Change in Control
                                 notice for SLHCs.
265.20(c)(10).................  To extend time for a    Reserve Bank.
                                 banking entity to
                                 reduce its interest
                                 in a covered fund
                                 pursuant to the
                                 Volcker Rule.
265.20(c)(11).................  To act on section 914   Reserve Bank.
                                 notices under FIRREA
                                 for SLHCs pursuant to
                                 Regulation LL.
265.20(c)(12).................  To approve              Reserve Bank.
                                 applications for
                                 prior approval for
                                 SLHCs unless certain
                                 factors are present.
265.20(c)(12)(vi)-(vii).......  Included additional     Reserve Bank.
                                 criteria for
                                 delegated authority
                                 for banking
                                 acquisitions.
265.20(c)(14).................  To make certain         Reserve Bank.
                                 determinations under
                                 Regulation MM.
265.20(c)(14)(xiv) and (xv)...  To approve requests     Reserve Bank.
                                 from mutual holding
                                 companies (MHCs) to
                                 conduct stock
                                 issuances under
                                 Regulation MM.
265.20(d)(16).................  To approve a request    Reserve Bank.
                                 by an Edge
                                 corporation to
                                 declare or pay a
                                 dividend of property
                                 other than cash.
265.20(e)(13).................  To approve a request    Reserve Bank.
                                 by a State member
                                 bank to declare or
                                 pay a dividend of
                                 property other than
                                 cash.
265.20(h).....................  To act on               Reserve Bank.
                                 determination
                                 requests for
                                 qualified family
                                 partnerships.
265.20(i).....................  To make FHC elections   Reserve Bank, in
                                 effective and to        consultation
                                 approve corrective      with Board
                                 action agreements for   staff.
                                 section 4(m) purposes.
265.20(j).....................  To make certain         Reserve Bank.
                                 determinations under
                                 the subparts F and G
                                 of Regulation LL.
265.20(k).....................  To assent or dissent,   Federal Reserve
                                 as appropriate, to      Bank of New
                                 certain financial       York.
                                 operations of the
                                 Bank for
                                 International
                                 Settlements.
265.20(l).....................  To make certain         Reserve Bank,
                                 determinations under    with
                                 the regulatory          concurrence of
                                 capital rule.           Division
                                                         Director (S&R).
------------------------------------------------------------------------


[[Page 53995]]

    Several of the codified and uncodified delegations include cross-
references that have become inaccurate or obsolete as a result of 
changes in the underlying statutes or regulations. In addition, some of 
the codified and uncodified delegations include spelling and usage 
errors, and the formulation of some of the delegations is inconsistent 
with current regulation drafting guidance. The final rule corrects 
these errors or deficiencies and makes other technical changes. Table 2 
below lists the affected provisions and, with respect to each, briefly 
describes the change.

                       Table 2--Technical Changes
------------------------------------------------------------------------
                                  Short description:
    Citation: part or section                          Reason for change
------------------------------------------------------------------------
Part 265 throughout.............  Reformat citations  Reflect current
                                   to statutes and     guidance from the
                                   cross-references    Office of the
                                   to Board            Federal Register
                                   regulations.        and consistency
                                  Reformat titles of   with other Board
                                   delegatees,         regulations.
                                   including by
                                   removing
                                   ``Chairman'' and
                                   replacing with
                                   ``Chair''.
                                  Remove ``delegee''
                                   and replace with
                                   ``delegatee''.
                                  Remove ``Board's
                                   Director'' and
                                   replace with
                                   ``Director''.
                                  Remove ``Board's
                                   General Counsel''
                                   and replace with
                                   ``General
                                   Counsel''.
Part 265 Subpart A and Subpart B  Divide Part 265     Make references
                                   into ``Subpart A--  and citations to
                                   General             groups of
                                   Provisions'' and    sections that
                                   ``Subpart B--       contain
                                   Delegations of      delegations more
                                   Authority''.        concise and user-
                                                       friendly.
265.1(b)........................  Discuss purpose     Reflect revisions
                                   and scope of Part   in the draft and
                                   265 with language   accurately
                                   that recognizes     reflect location
                                   the addition of     of delegations.
                                   ``Subpart A'' and
                                   ``Subpart B''.
265.2(c)........................  Add paragraph (c)   Clarifies
                                   to expressly        authority of
                                   permit Board        Board employee
                                   employees to        delegatees to
                                   subdelegate         subdelegate
                                   concurrences and    concurrences and
                                   consultations.      consultations.
265.4...........................  Revise section      Add words ``or
                                   heading to read:    staff within the
                                   Functions           Division of Board
                                   delegated to        Members'' to
                                   Board members or    reflect
                                   staff within the    delegatees.
                                   Division of Board
                                   Members.
265.4(a)........................  Redesignate         Reflect move to
                                   265.4(a) to         265.4(d).
                                   265.4(d), and add
                                   new delegations
                                   in 265.4(a)
                                   through 265.4(c),
                                   which are
                                   described in
                                   Table 1, above.
265.4(b)........................  Redesignate         Reflect move to
                                   265.4(b) to         265.4(f).
                                   265.4(f), add new
                                   delegations in
                                   265.4(a) through
                                   265.4(c), which
                                   are described in
                                   Table 1, above,
                                   and redesignate
                                   265.4(c) as
                                   265.4(e).
265.4(c)........................  Redesignate         Reflect move to
                                   265.4(c) to         265.4(e).
                                   265.4(e), add new
                                   delegations in
                                   265.4(a) through
                                   265.4(c), which
                                   are described in
                                   Table 1, above,
                                   and redesignate
                                   265.4(b) as
                                   265.4(f).
265.4(d)(1) (formerly             Add ``section 8(b)  Specifically
 265.4(a)(1)).                     and (c) of the      reference the FDI
                                   Federal Deposit     Act when citing
                                   Insurance Act''     to 12 U.S.C.
                                   and add             1818.
                                   parentheses
                                   around ``12
                                   U.S.C. 1818(b)
                                   and (c)''.
265.4(d)(2)(i) (formerly          Replace ``(12 CFR   Reflect more
 265.4(a)(2)(i)).                  part 263)'' with    specific
                                   add ``(12 CFR       citation.
                                   263.10(e))''.
265.4(f) (formerly 265.4(b))....  Remove ``(the       Parenthetical
                                   `Action             abbreviation is
                                   Committee')''.      not needed.
265.4(f)(2) (formerly             Remove              Improve
 265.4(b)(2)).                     ``Reserved'' text.  organization as
                                                       reserved text is
                                                       not needed.
265.5...........................  Revise section      Add word ``the''
                                   heading to read:    to improve
                                   Functions           language.
                                   delegated to the
                                   Secretary of the
                                   Board.
265.5(a)(3).....................  Replace ``rules     Improve usage.
                                   and regulations''
                                   with ``rules''.
265.5(a)(4).....................  Replace ``make      Improve usage and
                                   technical           clarity.
                                   corrections''
                                   with ``make, with
                                   the concurrence
                                   of the General
                                   Counsel,
                                   technical
                                   corrections''.
                                  Replace
                                   ``including
                                   removal of
                                   obsolete
                                   provisions'' with
                                   ``including
                                   making regular
                                   updates that are
                                   required by law
                                   and/or calculated
                                   via a formula
                                   prescribed by
                                   law, removal of
                                   obsolete
                                   provisions''.
                                  Replace ``and
                                   orders and'' with
                                   ``orders, and''.
                                  Remove ``but only
                                   with the
                                   concurrence of
                                   the Board's
                                   General Counsel''.
265.5(b)(1) heading.............  Replace ``FOIA''    More precisely
                                   with ``Freedom of   identify statute
                                   Information Act''.  being referenced.
265.5(b)(2) heading.............  Replace ``FOIA''    More precisely
                                   with ``Freedom of   identify statute
                                   Information Act     being referenced.
                                   and Privacy Act''.
265.5(c) heading................  Replace ``Change    Correct
                                   in bank control;    capitalization
                                   Mergers'' with      and clarify that
                                   ``savings and       delegations in
                                   loan holding        this paragraph
                                   companies; change   also pertain to
                                   in bank control;    SLHCs as
                                   mergers'' in        described in
                                   heading.            Table 1, above.

[[Page 53996]]

 
265.5(c)(1).....................  Replace ``the Bank  Reflect amended
                                   Service             name of statute.
                                   Corporation Act''
                                   with ``the Bank
                                   Service Company
                                   Act''.
265.5(c)(2).....................  Replace ``any       Reflect addition
                                   holding company,    of SLHCs as
                                   bank, or            described in
                                   company'' with      Table 1, above.
                                   ``any bank
                                   holding company,
                                   bank, savings and
                                   loan holding
                                   company, or
                                   company''.
265.5(d)(1) and (2).............  Remove              Improve
                                   ``Reserved'' text   organization,
                                   in 265.5(d)(1)      make consistent
                                   and redesignate     with other Board
                                   265.5(d)(2) as      regulations, and
                                   265.5(d)(1).        add statutory
                                  Replace ``Edge or    citations.
                                   Agreement
                                   corporation''
                                   with ``Edge
                                   corporation, an
                                   agreement
                                   corporation''.
                                  After ``12 U.S.C.
                                   601 and 604'' add
                                   ``, and 611 et
                                   seq.''.
                                  After ``section
                                   25A of the
                                   Federal Reserve
                                   Act'' add ``(12
                                   U.S.C. 611a,
                                   615(c), and
                                   619)''.
                                  Replace
                                   ``following
                                   conditions'' with
                                   ``conditions in
                                   paragraphs
                                   (d)(1)(i) through
                                   (iii) of this
                                   section''.
265.5(d)(1)(iii)(B) (formerly     Replace ``the       Improve clarity.
 265.5(d)(2)(iii)(B)).             parent bank or
                                   bank holding
                                   company, or
                                   subsidiary Edge
                                   or Agreement
                                   corporation, as
                                   the case may be,
                                   and the selling
                                   parent or
                                   subsidiary holds
                                   the stock with
                                   the consent of
                                   the Board
                                   pursuant to
                                   Regulations K and
                                   Y (12 CFR parts
                                   211 and 225),''
                                   with ``the parent
                                   bank, parent bank
                                   holding company,
                                   subsidiary Edge
                                   corporation, or
                                   subsidiary
                                   agreement
                                   corporation, as
                                   the case may be,
                                   and the selling
                                   entity holds the
                                   stock with the
                                   consent of the
                                   Board pursuant to
                                   Regulation K or Y
                                   (12 CFR parts 211
                                   and 225), as
                                   applicable''.
265.5(d)(3).....................  Remove              Improve
                                   ``Reserved'' text.  organization as
                                                       reserved text is
                                                       not needed.
265.5(e)(1).....................  Replace ``(12 CFR   Correct citation.
                                   part 204)'' with
                                   ``(12 CFR
                                   204.2)''.
265.5(e)(2).....................  Remove              Improve
                                   ``Reserved'' text.  organization as
                                                       reserved text is
                                                       not needed.
265.5(f)........................  Replace ``Sec.      Correct cross-
                                   204.3(b)(2)(ii)     references and
                                   of Regulation D     citations.
                                   (12 CFR part 204)
                                   or Sec.
                                   209.15(b) of
                                   Regulation I (12
                                   CFR part 209)''
                                   with ``Sec.
                                   204.3(g)(2) of
                                   Regulation D (12
                                   CFR 204.3(g)(2))
                                   or Sec.
                                   209.2(c) of
                                   Regulation I (12
                                   CFR 209.2(c))''.
265.6...........................  Revise section      Add word ``the''
                                   heading to read:    to improve
                                   Functions           language, and
                                   delegated to the    correct
                                   General Counsel.    capitalization.
                                  Revise
                                   introductory
                                   language to
                                   remove ``The
                                   Board's general
                                   counsel (or the
                                   general
                                   counsel's'' and
                                   replace with
                                   ``The General
                                   Counsel (or the
                                   General
                                   Counsel's''.
265.6(a)(1).....................  Replace ``262.3(i)  Correct citation.
                                   of this chapter
                                   (Rules of
                                   Procedure)'' with
                                   ``262.3(k) of the
                                   Board's Rules of
                                   Procedure (12 CFR
                                   262.3(k))''.
265.6(a)(2).....................  Replace ``(12 CFR   Correct citation.
                                   part 262)'' with
                                   ``(12 CFR
                                   262.25)''.
265.6(a)(3).....................  Replace ``(12 CFR   Correct citation.
                                   part 263)'' with
                                   ``(12 CFR
                                   263.6)''.
265.6(a)(4).....................  Move this           Move so that all
                                   delegation to       delegations
                                   265.6(e)(4) and     involving
                                   delete ``with the   enforcement
                                   concurrence of      actions delegated
                                   the Director of     to the General
                                   the Division of     Counsel, with
                                   Supervision and     concurrence of
                                   Regulation''.       the Director of
                                                       S&R, are under
                                                       265.6(e).
265.6(b)(1) heading.............  Replace ``FOIA''    More precisely
                                   with ``Board        identify records
                                   records''.          being referenced.
265.6(b)(3).....................  After ``under this  More precisely
                                   paragraph'' add     identify
                                   ``(b)(3)''.         paragraph being
                                                       referenced.
265.6(c) heading................  Replace ``Change    Correct
                                   in bank control;    capitalization
                                   Mergers'' with      and clarify that
                                   ``savings and       delegations in
                                   loan holding        this paragraph
                                   companies; change   also pertain to
                                   in bank control;    SLHCs as
                                   mergers'' in        described in
                                   heading.            Table 1, above.

[[Page 53997]]

 
265.6(c)(2) (formerly             Redesignate         Reflect move to
 265.6(c)(1)).                     265.6(c)(2) as      section
                                   265.6(c)(1).        265.6(c)(1)
                                  Replace ``of BHC    More precisely
                                   Act'' in heading    identify statute
                                   with ``of the       being referenced.
                                   Bank Holding
                                   Company Act.''.
265.6(c)(3) heading.............  Replace ``of CBC    More precisely
                                   Act'' with ``of     identify statute
                                   the Change in       being referenced.
                                   Bank Control
                                   Act''.
265.6(e)........................  Replace ``the       Correct
                                   director of the     capitalization
                                   Board's Division    and name of
                                   of Banking          division.
                                   Supervision and    Parenthetical is
                                   Regulation (or      no longer
                                   the Director's      necessary as
                                   delegee)'' with     section 265.2(c)
                                   ``the Director of   states that Board
                                   the Division of     employees who are
                                   Supervision and     authorized to
                                   Regulation''.       concur or consult
                                                       on a delegated
                                                       action may
                                                       subdelegate their
                                                       authority to
                                                       delegatees in
                                                       their division.
265.6(e)(1).....................  Add ``under         Add statutory
                                   section 8(b) or     authority.
                                   (e) of the
                                   Federal Deposit
                                   Insurance Act (12
                                   U.S.C. 1818(b) or
                                   (e))''.
265.6(e)(4).....................  Move this           Move so that all
                                   delegation from     delegations
                                   265.6(a)(4) to      involving
                                   265.6(e)(4), and    enforcement
                                   delete ``with the   actions delegated
                                   concurrence of      to the General
                                   the Director of     Counsel, with
                                   the Division of     concurrence of
                                   Supervision and     the Director of
                                   Regulation''.       S&R, are under
                                                       section 265.6(e).
265.6(f)(3).....................  Remove ``the        Correct reference
                                   Board's Director    to Director of
                                   of the Director     S&R.
                                   of the Division''
                                   and replace with
                                   ``the Director of
                                   the Division''.
265.7...........................  Revise section      Add the word
                                   heading to read:    ``the'' to
                                   Functions           improve language.
                                   delegated to the
                                   Director of the
                                   Division of
                                   Supervision and
                                   Regulation.
265.7(a)(2).....................  Replace ``Bank      Correct statutory
                                   Merger Act, the     authorities.
                                   Change in Bank
                                   Control Act of
                                   1978, the Federal
                                   Reserve Act, or
                                   the International
                                   Banking Act,''
                                   with ``section
                                   18(c) of the
                                   Federal Deposit
                                   Insurance Act,
                                   the Change in
                                   Bank Control Act,
                                   the Federal
                                   Reserve Act, the
                                   International
                                   Banking Act,''.
265.7(a)(2).....................  Add ``or the Dodd-  Accommodate
                                   Frank Wall Street   legislative
                                   Reform and          change.
                                   Consumer
                                   Protection Act''.
265.7(a)(3).....................  Redesignate         Reflect move to
                                   265.7(a)(3) to      section
                                   265.7(a)(4), and    265.7(a)(4).
                                   add new
                                   delegation in
                                   265.7(a)(3),
                                   which is
                                   described in
                                   Table 1, above.
265.7(a)(4) (formerly             Replace ``subpart   Correct citation.
 265.7(a)(3)).                     D'' with
                                   ``subpart E''.
265.7(a)(5) (formerly             Replace ``Sec.      Correct language
 265.7(a)(4)).                     '' with             and more
                                   ``section''.        precisely
                                  Replace ``provided   identify Director
                                   the Director is''   who is
                                   with ``provided     referenced.
                                   that the Director
                                   of the Division
                                   of Supervision
                                   and Regulation
                                   is''.
265.7(b)(1) heading.............  Replace ``FOIA''    More precisely
                                   with                identify records
                                   ``Confidential      being referenced.
                                   supervisory
                                   information''.
265.7(b)(1).....................  Replace ``261.11''  Correct citation
                                   with ``261.22''.    to reflect
                                                       revision of
                                                       underlying
                                                       regulation.
265.7(b)(2) heading.............  Replace ``FOIA''    More precisely
                                   with ``Freedom of   identify statute
                                   Information Act''.  being referenced.
265.7(b)(2).....................  Replace ``Sec.      Delete second
                                   Sec.                ``Sec.   '' as
                                   261.8(a)(2) and     unnecessary and
                                   (3)'' with ``Sec.   correct citation
                                     261.15(a)(4)      to reflect
                                   and (8)''.          revision of
                                                       underlying
                                                       regulation.
265.7(c) heading................  Replace ``Change    Correct
                                   in bank control;    capitalization
                                   Mergers'' with      and clarify that
                                   ``savings and       delegations in
                                   loan holding        this paragraph
                                   companies;          also pertain to
                                   financial holding   SLHCs and
                                   companies; change   financial holding
                                   in bank control;    companies as
                                   mergers'' in        described in
                                   heading.            Table 1, above.
265.7(c)(2).....................  Replace ``Sec.      Update citation
                                   265.11(c)(2)(ii)'   and correct typo.
                                   ' with ``Sec.
                                   265.20(c)(2)(ii)'
                                   '.
                                  Replace ``on''
                                   with ``or''.
265.7(c)(4).....................  Replace             More precisely
                                   ``Financial         identify statute
                                   Institutions        being referenced
                                   Reform, Recovery    and correct
                                   and Enforcement''   citation.
                                   with ``Financial
                                   Institutions
                                   Reform, Recovery,
                                   and Enforcement
                                   of 1989''.
                                  Replace ``(12 CFR
                                   part 225)'' with
                                   ``(12 CFR part
                                   225, subpart H)''.
265.7(c)(4)(i)..................  Replace ``(12 CFR   Fix citation.
                                   part 225)'' with
                                   ``(12 CFR
                                   225.72)''.
265.7(c)(5).....................  Add ``(29 U.S.C.    Add statutory
                                   1001 et seq.)''     citations.
                                   and add ``(29
                                   U.S.C. 1204(b))''.
265.7(d)(3).....................  Add                 Conform to
                                   ``International     paragraph-heading
                                   banking matters''   format in
                                   paragraph heading.  section.

[[Page 53998]]

 
265.7(d)(4).....................  Remove              Reflect
                                   ``Reserved'' text   reorganization,
                                   and redesignate     and update
                                   265.7(d)(6) as      citation.
                                   265.7(d)(4).
                                  Replace ``(12 CFR
                                   part 211)'' with
                                   ``(12 CFR part
                                   211, subpart D)''.
265.7(d)(5).....................  Remove              Reflect
                                   ``Reserved'' text   reorganization,
                                   and redesignate     and more
                                   265.8 as            precisely
                                   265.7(d)(5).        identify statute
                                  Replace ``IBA''      being referenced.
                                   with
                                   ``International
                                   Banking Act''.
265.7(d)(6).....................  Redesignate         Reflect
                                   265.7(d)(14) as     reorganization.
                                   265.7(d)(6).
265.7(d)(9)-(13)................  Remove              Improve
                                   ``Reserved'' text.  organization as
                                                       reserved text is
                                                       not needed.
265.7(e)(1).....................  Replace ``Act''     More precisely
                                   with ``Federal      identify statute
                                   Deposit Insurance   being referenced.
                                   Act''.
265.7(e)(3).....................  Add ``(29 U.S.C.    Add statutory
                                   1001 et seq.)''     citations.
                                   and ``(29 U.S.C.
                                   1204(b))''.
265.7(e)(4).....................  Replace ``12        Correct citation.
                                   U.S.C.
                                   3105(b)(1)'' with
                                   ``12 U.S.C.
                                   3105(c)(1)''.
265.7(e)(5).....................  Replace ``Sec.      Update citations.
                                   265.11(e)(5),
                                   (11), and (12)''
                                   with ``Sec.
                                   265.20(e)(5),
                                   (11), and (12)''.
                                  Replace ``Sec.
                                   265.11(e)(3),
                                   (4), and (7)''
                                   with ``Sec.
                                   265.20(e)(3),
                                   (4), and (7)''.
265.7(e)(6).....................  Remove              Regulation P was
                                   ``Regulation P''    repealed in 2014
                                   from paragraph      and removing it
                                   heading.            conforms the
                                                       paragraph heading
                                                       to the section
                                                       265.20(e)(8)
                                                       paragraph
                                                       heading.
265.7(e)(6).....................  Replace ``Sec.      Update citation.
                                   265.11(e)(8)''
                                   with ``Sec.
                                   265.20(e)(8)''.
265.7(e)(7)(i)..................  Replace             Correct citations.
                                   ``paragraph 23 of
                                   section 9 of the
                                   Federal Reserve
                                   Act'' with
                                   ``section 9(23)
                                   of the Federal
                                   Reserve Act''.
                                  Replace ``12 CFR
                                   208.22(b)(1)''
                                   with ``Sec.
                                   208.22(b)(1) of
                                   Regulation H (12
                                   CFR
                                   208.22(b)(1))''.
265.7(e)(7)(ii).................  Replace             Correct citation.
                                   ``paragraph 23 of
                                   section 9 of the
                                   Federal Reserve
                                   Act'' with
                                   ``section 9(23)
                                   of the Federal
                                   Reserve Act''.
265.7(f)(1).....................  Replace             More precisely
                                   ``Securities        identify statute
                                   Exchange Act''      being referenced.
                                   with ``Securities
                                   Exchange Act of
                                   1934''.
265.7(f)(1)(iii)................  Replace ``extent''  Correct typo.
                                   with ``extend''.
265.7(f)(2).....................  Replace             Correct typo, and
                                   ``statement''       more precisely
                                   with ``state''      identify statute
                                   Replace             being referenced.
                                   ``Securities
                                   Exchange Act''
                                   with ``Securities
                                   Exchange Act of
                                   1934''.
265.7(f)(3).....................  Replace             More precisely
                                   ``Securities        identify statute
                                   Exchange Act''      being referenced.
                                   with ``Securities
                                   Exchange Act of
                                   1934''.
265.7(f)(4).....................  Replace             More precisely
                                   ``Securities        identify statute
                                   Exchange Act''      being referenced.
                                   with ``Securities
                                   Exchange Act of
                                   1934''.
265.7(f)(5)(i)..................  Replace ``Act''     More precisely
                                   with ``Securities   identify statute
                                   Exchange Act of     being referenced,
                                   1934''.             and correct
                                  Replace ``15         citation.
                                   U.S.C. 78q-1''
                                   with ``15 U.S.C.
                                   78q-1(c)(2)''.
265.7(f)(5)(ii).................  Replace ``Act''     More precisely
                                   with ``Securities   identify statute
                                   Exchange Act of     being referenced,
                                   1934''.             and correct
                                  Replace ``15         citation.
                                   U.S.C. 78c'' with
                                   ``15 U.S.C.
                                   78c(a)(34)(B)''.
265.7(f)(6)(i) and (ii).........  Replace ``(12 CFR   Correct citation.
                                   part 208)'' with
                                   ``(12 CFR
                                   208.36)''.
265.7(f)(9).....................  Replace ``15        Correct citation.
                                   U.S.C. 78q-1''
                                   with ``15 U.S.C.
                                   78q-1(c)''.
265.7(f)(10)....................  Replace ``(12 CFR   Correct citations.
                                   part 207)'' with
                                   ``(12 CFR
                                   207.6(d))''.
                                  Replace ``(12 CFR
                                   part 220)'' with
                                   ``(12 CFR
                                   220.17(f))'' and.
                                  Replace ``(12 CFR
                                   part 221)'' with
                                   ``(12 CFR
                                   221.7(d))''.
265.8...........................  Redesignate 265.8   Reflect
                                   to 265.9, and       reorganization so
                                   redesignate 265.9   that the
                                   to 265.8.           functions
                                                       delegated to the
                                                       Director of DCCA
                                                       come before the
                                                       functions
                                                       delegated to the
                                                       Director of IF.
265.8 (formerly 265.9)..........  Revise section      Add word ``the''
                                   heading to read:    to improve
                                   Functions           language.
                                   delegated to the
                                   Director of the
                                   Division of
                                   Consumer and
                                   Community Affairs.
265.8 introductory text           Replace ``Board's   Simplify language.
 (formerly 265.9).                 Division'' with
                                   ``Division''.
265.8(a) (formerly 265.9(a))....  Redesignate as      Simplify language.
                                   (a)(2) and
                                   streamline
                                   citations.

[[Page 53999]]

 
265.8(c) (formerly 265.9(c))....  Add ``to the        Reflect change in
                                   extent that the     Board's
                                   laws are            authority.
                                   applicable to
                                   motor vehicle
                                   dealers, as
                                   defined in
                                   section 1029 of
                                   the Dodd-Frank
                                   Wall Street
                                   Reform and
                                   Consumer
                                   Protection Act
                                   (12 U.S.C.
                                   5519)''.
265.8(c)(1) (formerly             Replace ``(12 CFR   Correct citations.
 265.9(c)(1)).                     part 226)'' with
                                   ``(12 CFR
                                   226.28)''.
                                  Replace ``213.7''
                                   with ``213.9''..
                                  Replace ``(12 CFR
                                   part 213)'' with
                                   ``(12 CFR
                                   213.9)''.
265.8(c)(2) (formerly             Replace ``(12 CFR   Correct citation.
 265.9(c)(2)).                     part 205)'' with
                                   ``(12 CFR
                                   205.12)''.
265.8(c)(3) (formerly             Replace ``(12 CFR   Correct citation.
 265.9(c)(3)).                     part 202)'' with
                                   ``(12 CFR
                                   202.11)''.
265.8(f) (formerly 265.9(f))....  Replace             More precisely
                                   ``Community         identify statute
                                   Reinvestment        being referenced.
                                   Act'' with
                                   ``Community
                                   Reinvestment Act
                                   of 1977''.
265.8(f)(1) (formerly             Replace ``(12 CFR   Correct citation.
 265.9(f)(1)).                     part 228)'' with
                                   ``(12 CFR
                                   228.27(g) and
                                   (h))''.
265.8(f)(2) (formerly             Replace ``(12 CFR   Correct citation.
 265.9(f)(2)).                     part 228)'' with
                                   ``(12 CFR
                                   228.25(b))''.
265.8(g) (formerly 265.8(g))....  Add ``or            Clarify scope of
                                   permitted''.        delegation.
265.9...........................  Redesignate 265.9   Reflect
                                   to 265.8, and       reorganization so
                                   redesignate 265.8   that the
                                   to 265.9.           functions
                                                       delegated to the
                                                       Director of DCCA
                                                       come before the
                                                       functions
                                                       delegated to the
                                                       Director of IF.
265.9 (formerly 265.8)..........  Revise section      Remove the word
                                   heading to read:    ``Staff'' to
                                   Functions           improve language.
                                   delegated to the
                                   Director of the
                                   Division of
                                   International
                                   Finance.
265.9 introductory text           Replace ``Board's   Simplify language.
 (formerly 265.8).                 Staff Director''
                                   with ``Director''.
265.9(b) (formerly 265.8(b))....  Remove              Improve
                                   ``Reserved'' text.  organization as
                                                       reserved text is
                                                       not needed.
265.10..........................  Redesignate 265.10  Accommodate the
                                   to 265.12.          additional Board
                                                       delegatees in
                                                       sections 265.10
                                                       and 265.11.
265.11..........................  Redesignate 265.11  Accommodate
                                   to 265.20.          additional Board
                                                       delegatees.
265.20 introductory text          Add ``Except as     Accommodate
 (formerly 265.11).                otherwise           delegation to
                                   provided in this    Federal Reserve
                                   section''; and      Bank of New York,
                                   Replace             and correct
                                   ``reponsible''      spelling error.
                                   with
                                   ``responsible''.
265.20(a)(2) (formerly            Replace ``(9)''     Correct citation.
 265.11(a)(2)).                    with ``(7)''.
265.20(a)(3) (formerly            Replace ``(22)''    Correct citation.
 265.11(a)(3)).                    with ``(20)''.
265.20(a)(6) heading (formerly    Replace ``dpc''     Make consistent
 265.11(a)(6)).                    with ``DPC''.       with other Board
                                                       regulations.
265.20(a)(6) (formerly            Replace ``(12 CFR   Correct citation.
 265.11(a)(6)).                    part 225)'' with
                                   ``(12 CFR
                                   225.22(c)(1)).
265.20(a)(10) (formerly           Replace ``(12 CFR   Correct citation.
 265.11(a)(10)).                   part 211)'' with
                                   ``(12 CFR
                                   211.8(e) and
                                   (f))''.
265.20(a)(11) (formerly           Replace             Correct spelling
 265.11(a)(11)).                   ``consummante''     error.
                                   with
                                   ``consummate''.
265.20(a)(15) (formerly           Replace ``prior     Make consistent
 265.11(a)(15)).                   approval of         with other
                                   both'' with         delegations.
                                   ``concurrence
                                   of''.

[[Page 54000]]

 
265.20(a)(15)(i) (formerly        Replace ``with a    Adding reference
 265.11(a)(15)(i)).                State member        to SLHCs as
                                   bank, or with any   explained in
                                   other person or     Table 1, above,
                                   entity subject to   adding reference
                                   the Board's         to a ``foreign
                                   supervisory         bank that has
                                   jurisdiction        elected to be
                                   under 12 U.S.C.     treated as a
                                   1818(b)             financial holding
                                   concerning the      company'' as
                                   prevention or       explained in
                                   correction of an    Table 1, above,
                                   unsafe or unsound   and adding
                                   practice in         references to
                                   conducting the      specific statutes
                                   business of the     for clarity.
                                   bank holding
                                   company,
                                   nonbanking
                                   subsidiary, or
                                   State member bank
                                   or other entity,
                                   or concerning the
                                   correction or
                                   prevention of any
                                   violation of law,
                                   rule, or
                                   regulation,''
                                   with ``with a
                                   savings and loan
                                   holding company
                                   or any subsidiary
                                   thereof (other
                                   than a savings
                                   association),
                                   with a State
                                   member bank, with
                                   a foreign bank
                                   that has elected
                                   to be treated as
                                   a financial
                                   holding company,
                                   or with any
                                   person or entity
                                   subject to the
                                   Board's
                                   supervisory
                                   jurisdiction
                                   under section
                                   8(b) of the
                                   Federal Deposit
                                   Insurance Act (12
                                   U.S.C. 1818(b))
                                   concerning the
                                   prevention or
                                   correction of an
                                   unsafe or unsound
                                   practice in
                                   conducting the
                                   business of the
                                   bank holding
                                   company or its
                                   nonbanking
                                   subsidiary,
                                   savings and loan
                                   holding company
                                   or its subsidiary
                                   (other than a
                                   savings
                                   association), or
                                   State member
                                   bank, or foreign
                                   bank that has
                                   elected to be
                                   treated as a
                                   financial holding
                                   company, or other
                                   entity, or
                                   concerning the
                                   correction or
                                   prevention of any
                                   violation of law,
                                   rule, or
                                   regulation,
                                   including section
                                   4(m) of the Bank
                                   Holding Company
                                   Act (12 U.S.C.
                                   1843(m))''.
265.20(a)(15)(ii) (formerly       Replace ``this      Clarify that this
 265.20(a)(15)(ii)).               paragraph'' with    delegation does
                                   ``this paragraph    not apply to
                                   (a)(15), other      extensions of
                                   than to extend      corrective
                                   time limits in a    agreements under
                                   corrective          section 4(m) of
                                   agreement with a    the BHC Act.
                                   financial
                                   institution under
                                   section 4(m) of
                                   the Bank Holding
                                   Company Act (12
                                   U.S.C. 1843(m))''.
265.20(a)(15)(iii) (formerly      Remove ``and (k)''  12 U.S.C. 1818(k)
 265.11(a)(15)(iii)).              in the two places   was repealed.
                                   it appears.
265.20(a)(17) heading (formerly   Replace             Improve
 265.11(a)(17)).                   ``Modification of   description of
                                   commitments''       delegation.
                                   with ``Relief
                                   from or
                                   modification of
                                   commitments''.
265.20(a)(17) (formerly           Replace ``the Bank  More precisely
 265.11(a)(17)).                   Merger Act'' with   identify statutes
                                   ``section 18(c)     being referenced.
                                   of the Federal
                                   Deposit Insurance
                                   Act (12 U.S.C.
                                   1828(c))''.
                                  Remove ``of
                                   1978''..
265.20(b)(1) (formerly            Replace             Reflect revision
 265.11(b)(1)).                    ``described in      of underlying
                                   the Board's Rules   regulation and
                                   Regarding           correct citation.
                                   Availability of
                                   Information (12
                                   CFR 261.11)''
                                   with ``described
                                   in Sec.  Sec.
                                   261.21(a) and
                                   261.22(a) of the
                                   Board's Rules
                                   Regarding
                                   Availability of
                                   Information (12
                                   CFR 261.21(a) and
                                   261.22(a))''.
265.20(b)(2) (formerly            Remove              Improve
 265.11(b)(2)).                    ``Reserved'' text.  organization as
                                                       reserved text is
                                                       not needed.
265.20(c)(2)(ii) (formerly        Replace ``in        Reflect revision
 265.11(c)(2)(ii)).                Regulation Y (12    of underlying
                                   CFR                 regulation.
                                   225.23(a)(2))''
                                   with ``in Sec.
                                   225.24(d)(1) of
                                   Regulation Y (12
                                   CFR
                                   225.24(d)(1))''.
265.20(c)(3) introductory text    Replace ``Sec.      Reflect revision
 (formerly 265.11(c)(3)).          225.4(b)(1) of      of underlying
                                   Regulation Y (12    regulation and
                                   CFR part 225)''     correct citation.
                                   with ``subpart C
                                   of Regulation Y
                                   (12 CFR part 225,
                                   subpart C)''.
                                  Replace ``Sec.
                                   265.3 of this
                                   part'' with
                                   ``Sec.   265.3
                                   (12 CFR 265.3)''.
265.20(c)(3)(i) (formerly         Replace ``Sec.      Reflect revision
 265.11(c)(3)(i)).                 225.25 of           of underlying
                                   Regulation Y (12    regulation and
                                   CFR part 225)''     correct citation.
                                   with ``Sec.
                                   225.28(b) of
                                   Regulation Y (12
                                   CFR 225.28(b))''.
265.20(c)(3)(ii) (formerly        Replace ``Sec.      Reflect revision
 265.11(c)(3)(ii)).                225.23(a)(2) of     of underlying
                                   Regulation Y (12    regulation and
                                   CFR part 225)''     correct citation.
                                   with ``subpart C
                                   of Regulation Y
                                   (12 CFR part 225,
                                   subpart C)''.
265.20(c)(5) (formerly            Replace ``Sec.      Update citation to
 265.11(c)(4)).                    265.11(d)(3) of     reflect
                                   this part'' with    reorganization of
                                   ``paragraph         this section.
                                   (c)(3) of this
                                   section''.
265.20(c)(6) heading (formerly    Capitalize          Correct
 265.11(c)(5)).                    ``Change'' and      capitalization
                                   add ``the''.        and improve
                                                       language.

[[Page 54001]]

 
265.20(c)(6)(iii) (formerly       Replace ``Sec.      Reflect revision
 265.11(c)(5)(iii)).               225.41(b) of        of underlying
                                   Regulation Y (12    regulation.
                                   CFR part 225)''
                                   with ``Sec.
                                   225.41(c)(2) of
                                   Regulation Y (12
                                   CFR
                                   225.41(c)(2))''.
265.20(c)(6)(iv)(E) (formerly     Replace ``(12 CFR   Correct citation.
 265.11(c)(5)(iv)(E)).             part 225)'' with
                                   ``(12 CFR
                                   225.41)''.
265.20(c)(8) (formerly            Replace             Improve usage.
 265.11(c)(8)).                    ``Grandfathered
                                   nonbanking
                                   activities'' with
                                   ``Legacy
                                   nonbanking
                                   activities'' and
                                   other conforming
                                   amendments.
265.20(c)(9) (formerly            Replace ``under     Remove reference
 265.11(c)(8)).                    sections 4(c)(8)    to section 5(b)
                                   and 5(b) of the     of the BHC Act,
                                   Bank Holding        reflect revision
                                   Company Act (12     of underlying
                                   U.S.C.              regulation, and
                                   1843(c)(8),         update citation
                                   1844(b)) and        to reflect
                                   225.23(b) of        reorganization of
                                   Regulation Y (12    this section.
                                   CFR part 225)''
                                   with ``section
                                   4(c)(8) of the
                                   Bank Holding
                                   Company Act (12
                                   U.S.C.
                                   1843(c)(8)) and
                                   subpart C of
                                   Regulation Y (12
                                   CFR part 225,
                                   subpart C)''.
                                  Replace ``in Sec.
                                    265.11(f)(1),
                                   (2), (3), or (4)
                                   of this part''
                                   with ``paragraphs
                                   (c)(12)(i)
                                   through (iv) of
                                   this section''.
265.20(c)(11) introductory text   Replace             More precisely
 (formerly 265.11(c)(9)).          ``Financial         identify statute
                                   Institutions        being referenced,
                                   Reform, Recovery,   and correct
                                   and Enforcement     citation.
                                   Act'' with
                                   ``Financial
                                   Institutions
                                   Reform, Recovery,
                                   and Enforcement
                                   Act of 1989''.
                                  Replace ``(12 CFR
                                   part 225)'' with
                                   ``(12 CFR part
                                   225, subpart H)''.
265.20(c)(11)(i) (formerly        Add ``(12 CFR       Add citation.
 265.11(c)(9)(i)).                 225.72)''.
265.20(c)(11)(ii) (formerly       Replace ``that      Accommodate
 265.11(c)(9)(ii)).                section'' with      addition of SLHC-
                                   ``those             related
                                   sections''.         delegation.
265.20(c)(12) (formerly           Replace             Correct
 265.11(c)(12)).                   ``present.'' with   punctuation.
                                   ``present:''.
265.20(c)(12)(v)(A) (formerly     Replace             Reflect
 265.11(c)(11)(v)(A)).             ``paragraph         reorganization of
                                   (c)(11)(v)(B)''     this paragraph,
                                   with ``paragraph    and improve
                                   265.20(c)(12)(v)(   language.
                                   B)''.
                                  Replace ``Board's
                                   Division'' with
                                   ``Division'' in
                                   two places.
265.20(c)(12)(v)(B)(2) (formerly  Replace ``Board's   Improve language.
 265.11(c)(11)(v)(B)(2)).          Division'' with
                                   ``Division''.
265.20(c)(12)(vi) (formerly       Replace ``Sec.      Reflect revision
 265.11(c)(11)(vi)).               225.25(b)'' with    of underlying
                                   ``Sec.              regulation and
                                   225.28(b) of        update citation.
                                   Regulation Y (12
                                   CFR 225.28(b))''.
265.20(c)(13)(i) (formerly        Replace ``12 CFR    Make citations to
 265.11(c)(12)(i)).                238.12(d)(1),       regulations
                                   that an             consistent.
                                   application under
                                   12 CFR 238.11''
                                   with ``Sec.
                                   225.12(d)(2) of
                                   Regulation Y (12
                                   CFR
                                   225.12(d)(2)),
                                   that an
                                   application under
                                   Sec.   225.11 of
                                   Regulation Y (12
                                   CFR 225.11)''.
265.20(c)(13)(ii) (formerly       Replace ``12 CFR    Make citations to
 265.11(c)(12)(ii)).               238.12(d)(1),       regulations
                                   that an             consistent.
                                   application under
                                   12 CFR 238.11''
                                   with ``Sec.
                                   238.12(d)(1) of
                                   Regulation LL (12
                                   CFR
                                   238.12(d)(1)),
                                   that an
                                   application under
                                   Sec.   238.11 of
                                   Regulation LL (12
                                   CFR 238.11)''.
265.20(d)(1) heading (formerly    Replace ``Edge or   Make consistent
 265.11(d)(1)).                    agreement           with other Board
                                   corporation''       regulations.
                                   with ``Edge
                                   corporation, or
                                   agreement
                                   corporation''.
265.20(d)(1) (formerly            Replace ``(12 CFR   Correct citation.
 265.11(d)(1)).                    part 211)'' with
                                   ``(12 CFR
                                   211.3)''.
265.20(d)(2) (formerly            Replace ``(12 CFR   Correct citation.
 265.11(d)(2)).                    part 211)'' with
                                   ``(12 CFR
                                   211.4(a)(8))''.
265.20(d)(3) (formerly            Replace ``(12 CFR   Correct citation.
 265.11(d)(3)).                    part 211)'' with
                                   ``(12 CFR
                                   211.5)''.
265.20(d)(4) (formerly            Replace ``(12 CFR   Correct citation.
 265.11(d)(4)).                    part 211)'' with
                                   ``(12 CFR
                                   211.5)''.
265.20(d)(5) (formerly            Add ``Sec.   ''     Correct citation.
 265.11(d)(5)).                    before
                                   211.5(a)(3).
                                  Replace ``(12 CFR
                                   part 211)'' with
                                   ``(12 CFR
                                   211.5(a)(3))''.
265.20(d)(6) (formerly            Replace ``(12 CFR   Correct citation.
 265.11(d)(6)).                    part 211)'' with
                                   ``(12 CFR
                                   211.5(d))''.
265.20(d)(7) (formerly            Replace ``to        Improve language,
 265.11(d)(7)).                    otherwise           and correct
                                   acquire'' with      citation.
                                   ``otherwise to
                                   acquire''.
                                  Replace ``(12 CFR
                                   part 211)'' with
                                   ``(12 CFR
                                   211.5(e))''.
265.20(d)(8)(i) (formerly         Replace ``(12 CFR   Correct citation.
 265.11(d)(8)(i)).                 part 211)'' with
                                   ``(12 CFR
                                   211.9(a)(4)))''.
265.20(d)(8)(ii) (formerly        Replace first       Correct citations.
 265.11(d)(8)(ii)).                citation to ``(12
                                   CFR part 211)''
                                   with ``(12 CFR
                                   211.9(a)(5)))''.
                                  Replace second
                                   citation to ``(12
                                   CFR part 211)''
                                   with ``(12 CFR
                                   211.9(b))''.

[[Page 54002]]

 
265.20(d)(9)(ii) (formerly        Replace             Correct spelling
 265.11(d)(9)(ii)).                ``authorty'' with   and usage errors.
                                   ``authority''.
                                  Replace period
                                   with semicolon..
265.20(d)(9)(iii) (formerly       Add ``and'' after   Correct usage
 265.11(d)(9)(iii)).               the semicolon.      error.
265.20(d)(9)(iv) (formerly        Replace ``and       Make consistent
 265.11(d)(9)(iv)).                Regulation K (12    with other Board
                                   CFR 211.31-         regulations.
                                   211.34'' with
                                   ``and subpart C
                                   of Regulation K
                                   (12 CFR part 211,
                                   subpart C)''.
265.20(d)(10)(i) (formerly        Replace ``(12 CFR   Correct citation.
 265.11(d)(10)(i)).                part 211)'' with
                                   ``(12 CFR
                                   211.9(f))''.
265.20(d)(10)(ii) (formerly       Replace ``(12 CFR   Correct citation.
 265.11(d)(10)(ii)).               part 211)'' with
                                   ``(12 CFR
                                   211.24(a)(2)(i))'
                                   '.
265.20(d)(11)(i) (formerly        Replace ``(12 CFR   Correct citation.
 265.11(d)(11)(i)).                part 211)'' with
                                   ``(12 CFR
                                   211.10(a)(14))''.
265.20(d)(11)(ii) (formerly       Replace ``(12 CFR   Correct citation.
 265.11(d)(11)(ii)).               part 211)'' with
                                   ``(12 CFR
                                   211.10(a)(15))''.
265.20(d)(11)(iii) (formerly      Replace ``(12 CFR   Correct citation.
 265.11(d)(11)(iii)).              part 211)'' with
                                   ``(12 CFR
                                   211.10(a)(15)(iv)
                                   (B))''.
265.20(d)(11)(iv) (formerly       Replace ``(12 CFR   Correct citation.
 265.11(d)(11)(iv)).               part 211)'' with
                                   ``(12 CFR
                                   211.10(a)(18))''.
265.20(d)(12) (formerly           Replace ``(12 CFR   Correct citation.
 265.11(d)(12)).                   part 211)'' with
                                   ``((12 CFR
                                   211.22(b))''.
265.20(d)(13) (formerly           Replace ``under     Correct cross-
 265.11(d)(13)).                   Sec.                reference and
                                   211.22(c)(1) of     citation.
                                   Regulation K (12
                                   CFR part 211)''
                                   with ``under Sec.
                                     211.22(b)(1) of
                                   Regulation K ((12
                                   CFR
                                   211.22(b)(1))''.
265.20(d)(14)(i) (formerly        Replace ``(12 CFR   Correct citation.
 265.11(d)(14)(i)).                part 211)'' with
                                   ``((12 CFR
                                   211.24(a)(1)))''.
265.20(d)(14)(ii) (formerly       Replace ``(12 CFR   Correct citation.
 265.11(d)(14)(ii)).               part 211)'' with
                                   ``((12 CFR
                                   211.24(a)(51)))''.
265.20(e)(4) (formerly            Remove ``and 60''.  Correct citations.
 265.11(e)(4)).                   Replace ``12 CFR
                                   208.5(c)'' with
                                   ``in Sec.
                                   208.5(c) of
                                   Regulation H (12
                                   CFR 208.5(c))''.
265.20(e)(4)(i) (formerly         Replace ``banks''   Correct spelling
 265.11(e)(4)(i)).                 with ``bank's''.    error.
265.20(e)(5) introductory text    Replace ``239''     Correct citation.
 (formerly 265.11(e)(5)).          with ``329''.
265.20(e)(5) (formerly            Add ``of            Correct citation.
 265.11(e)(5)).                    Regulation H (12
                                   CFR 208.5(d))''.
265.20(e)(6) (formerly            Replace ``inferior- Improve usage, and
 265.11(e)(6)).                    quality'' with      more precisely
                                   ``inferior          identify statute
                                   quality''.          being referenced.
                                  Remove ``of
                                   1978''..
265.20(e)(7) (formerly            Replace ``371a''    Correct citation.
 265.11(e)(7)).                    with ``371d''.
                                  Replace ``12 CFR
                                   208.21(a)'' with
                                   ``Sec.
                                   208.21(a) of
                                   Regulation H (12
                                   CFR 208.21(a))''.
265.20(e)(11) (formerly           Replace ``(12 CFR   Correct citation.
 265.11(e)(11)).                   part 204)'' with
                                   ``(12 CFR
                                   204.2(a)(1)(vii)(
                                   C))''.
265.20(e)(12)(i) (formerly        Replace ``12 CFR    Correct citation.
 265.11(e)(12)(i)).                208.22(b)(1)''
                                   with ``Sec.
                                   208.22(b)(1) of
                                   Regulation H (12
                                   CFR
                                   208.22(b)(1))''.
265.20(g)(2) (formerly            Redesignate         Reflect recission
 265.11(g)(1)).                    paragraph (g)(2)    of paragraph
                                   as (g)(1).          (g)(1) and
                                  Remove heading....   improve usage.
                                  Remove ``of the
                                   Board''..
------------------------------------------------------------------------

    Finally, certain delegations in the delegation rules have become 
moot due to the repeal or revision of the underlying legislation or 
regulation. The final rule rescinds these delegations and removes them 
from the delegation rules. Table 3 below lists these delegations and 
the grounds for rescission.

                          Table 3--Rescissions
------------------------------------------------------------------------
                                                           Reason for
    Prior citation: section       Short description:       rescission
------------------------------------------------------------------------
265.5(b)(3)...................  To approve annual       Statutory
                                 reports required by     reporting
                                 the Privacy Act.        requirement
                                                         repealed.
265.5(b)(4)...................  To determine the        Statutory
                                 average predominant     provision
                                 prime rate quoted by    repealed.
                                 commercial banks to
                                 large businesses
                                 pursuant to section
                                 6621 of the Internal
                                 Revenue Code of 1986.
265.5(c)(3)...................  To approve certain      Statutory
                                 transactions under      provision
                                 section 5(d)(3)(A) of   repealed.
                                 the FDI Act.
265.6(c)(1)...................  To determine whether a  Statutory
                                 company that            provision
                                 transfers shares        repealed.
                                 under section 2(g) of
                                 the BHC Act is
                                 incapable of
                                 controlling the
                                 transferee.
265.6(c)(4)...................  Tax certifications      Tax code
                                 pursuant to Internal    provisions were
                                 Revenue Code section    repealed.
                                 1101 et seq.

[[Page 54003]]

 
265.6(d)(2)...................  Granting temporary      Statutory
                                 exceptions from         provisions
                                 management interlock    permitting
                                 prohibitions in         these
                                 Regulation L for        exceptions were
                                 certain banks.          repealed.
265.7(c)(2)...................  Remove ``and            12 CFR
                                 265.11(c)(3)(iii)''.    265.11(c)(3)(ii
                                                         i) is a
                                                         proposed
                                                         rescission,
                                                         below.
265.9(b) (note: delegations to  Pursuant to section     The statutory
 the Director of DCCA in 265.9   703(b) of the           requirement for
 are being redesignated to       Consumer Credit         the Board to
 265.8).                         Protection Act (15      maintain a
                                 U.S.C. 1691b(b)), to    Consumer
                                 call meetings of and    Advisory
                                 consult with the        Council was
                                 Consumer Advisory       repealed; but
                                 Council established     see the
                                 under that section,     replacement
                                 approve the agenda      delegation for
                                 for such meetings,      section
                                 and accept any          265.8(b)
                                 resignations from       described in
                                 Consumer Advisory       Table 1, above.
                                 Council members.
265.9(c)(4) (note: delegations  To determine whether a  Board no longer
 to the Director of DCCA in      State law is            has rule
 265.9 are being redesignated    inconsistent with       writing
 to 265.8).                      section 306(a) of the   authority.
                                 Home Mortgage
                                 Disclosure Act (12
                                 U.S.C. 2805(a)) and
                                 Sec.   203.3 of
                                 Regulation C (12 CFR
                                 203).
265.9(c)(5) (note: delegations  To determine whether a  Board no longer
 to the Director of DCCA in      State law is            has rule
 265.9 are being redesignated    inconsistent with       writing
 to 265.8).                      section 273 of the      authority.
                                 Truth in Savings Act
                                 (12 U.S.C. 4312) and
                                 Sec.   230.1 of
                                 Regulation DD (12 CFR
                                 230).
265.9(e) (note: delegations to  Making annual           Board no longer
 the Director of DCCA in 265.9   adjustments under the   has rule
 are being redesignated to       Home Mortgage           writing
 265.8).                         Disclosure Act and      authority.
                                 section
                                 103(a)(1)(B)(ii) of
                                 the Truth in Lending
                                 Act.
265.11(c)(3)(iii) (note:        To permit early         Regulatory
 delegations to the Reserve      consummation for        provision
 Banks in 265.11 are being       certain nonbanking      requiring
 redesignated to 265.20).        proposals by bank       delayed
                                 holding companies.      consummation
                                                         removed.
265.11(c)(8) (note:             To approve              Regulatory
 delegations to the Reserve      applications for        provision
 Banks in 265.11 are being       opening additional      requiring
 redesignated to 265.20).        offices for             applications
                                 previously approved     for additional
                                 nonbanking activities.  offices
                                                         removed.
265.11(c)(10) (note:            To engage in certain    Statutory
 delegations to the Reserve      transactions under      provision
 Banks in 265.11 are being       section 5(d)(3)(A) of   repealed.
 redesignated to 265.20).        the FDI Act.
265.11(g)(1) (note:             To permit additional    Regulatory
 delegations to the Reserve      time to dissolve or     provision
 Banks in 265.11 are being       conform a management    revised to
 redesignated to 265.20).        interlock after a       provide
                                 change of               additional time
                                 circumstances.          without
                                                         approval of the
                                                         Board.
------------------------------------------------------------------------

II. Regulatory Analyses

    These amendments relate solely to the agency's organization, 
procedure, or practice. Accordingly, the provisions of the 
Administrative Procedure Act (APA) regarding notice of proposed 
rulemaking and opportunity for public participation are not 
applicable.\3\
---------------------------------------------------------------------------

    \3\ 5 U.S.C. 553(b)(A).
---------------------------------------------------------------------------

    Because no notice of proposed rulemaking is required to be issued, 
or has been issued, in connection with this rule, it is not a ``rule'' 
for purposes of the Regulatory Flexibility Act, and that act, 
therefore, does not apply.\4\
---------------------------------------------------------------------------

    \4\ See 5 U.S.C. 601(2).
---------------------------------------------------------------------------

    In accordance with the Paperwork Reduction Act of 1995 (PRA),\5\ 
the Board may not conduct or sponsor, and a respondent is not required 
to respond to, an information collection unless it displays a currently 
valid Office of Management and Budget control number. The Board has 
reviewed the proposed rule and has determined that it contains no 
collections of information as defined in the PRA.
---------------------------------------------------------------------------

    \5\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    Section 722 of the Gramm-Leach-Bliley Act \6\ requires the Federal 
banking agencies to use plain language in all proposed and final rules 
published after January 1, 2000. The Board has sought to present this 
rule in a simple and straightforward manner.
---------------------------------------------------------------------------

    \6\ 12 U.S.C. 4809.
---------------------------------------------------------------------------

    As a rule of internal agency organization, the final rule is not a 
``substantive rule'' for the purposes of the APA; as such, the act does 
not require the Board to delay the effective date of the rule.\7\ 
Accordingly, the amendments are effective September 1, 2022.
---------------------------------------------------------------------------

    \7\ See 5 U.S.C. 553(d).
---------------------------------------------------------------------------

List of Subjects in 12 CFR Part 265

    Authority delegations (Government agencies); Banks, banking.

Authority and Issuance

0
For the reasons stated in preamble the Board of Governors of the 
Federal Reserve System revises 12 CFR part 265 to read as follows:

PART 265--RULES REGARDING DELEGATION OF AUTHORITY

Subpart A--General Provisions
Sec.
265.1 Authority, purpose, and scope.
265.2 Delegation of functions generally.
265.3 Board review of delegated actions.
Subpart B--Delegations of Authority
265.4 Functions delegated to Board members or staff within the 
Division of Board Members.
265.5 Functions delegated to the Secretary of the Board.
265.6 Functions delegated to the General Counsel.
265.7 Functions delegated to the Director of the Division of 
Supervision and Regulation.
265.8 Functions delegated to the Director of the Division of 
Consumer and Community Affairs.
265.9 Functions delegated to the Director of the Division of 
International Finance.
265.10 Functions delegated to the Director of the Division of 
Monetary Affairs.
265.11 Functions delegated to the Director of the Division of 
Reserve Bank Operations Payment Systems.
265.12 Functions delegated to the Secretary of the Federal Open 
Market Committee.
265.13 Functions delegated to the Director of the Division of 
Financial Stability.
265.14-265.19 [Reserved]
265.20 Functions delegated to Federal Reserve Banks.

    Authority: 12 U.S.C. 248(i) and (k).

Subpart A--General Provisions


Sec.  265.1  Authority, purpose, and scope.

    (a) Pursuant to section 11(k) of the Federal Reserve Act (12 U.S.C. 
248(k)), the Board of Governors of the Federal

[[Page 54004]]

Reserve System (the Board) may delegate, by published order or rule, 
any of its functions other than those relating to rulemaking or 
pertaining principally to monetary and credit policies to Board members 
and employees, Reserve Banks, or administrative law judges. Pursuant to 
section 11(i) of the Federal Reserve Act (12 U.S.C. 248(i)), the Board 
may make all rules and regulations necessary to enable it to 
effectively perform the duties, functions, or services specified in 
that Act. Other provisions of Federal law also may authorize specific 
delegations by the Board.
    (b) This part details the functions that the Board has delegated. 
Subpart A contains general provisions pertaining to delegations of 
authority, including review of action taken pursuant to delegated 
authority. Subpart B contains the specific functions delegated to Board 
members, Board employees and the Federal Reserve Banks. Except as 
otherwise indicated in this part, the Board will review a delegated 
action only if a Board member, at his or her own initiative, requests a 
review.


Sec.  265.2  Delegation of functions generally.

    (a) The Board has determined to delegate authority to exercise the 
functions described in this part.
    (b) The Chair of the Board shall assign responsibility for 
performing such delegated functions.
    (c) Where a delegatee must act with the concurrence of a Board 
employee, or in consultation with a Board employee, that Board employee 
may subdelegate his or her authority to concur or be consulted on the 
delegated action to an employee within the same division or office.


Sec.  265.3  Board review of delegated actions.

    (a) Request by Board member. The Board shall review any action 
taken at a delegated level upon the vote of one member of the Board, 
either on the member's own initiative or on the basis of a petition for 
review by any person claiming to be adversely affected by the delegated 
action.
    (b) Petition for review. A petition for review of a delegated 
action must be received by the Secretary of the Board not later than 
the fifth day following the date of the delegated action.
    (c) Notice of review. The Secretary shall give notice of review by 
the Board of a delegated action to any person with respect to whom the 
action was taken not later than the tenth day following the date of the 
delegated action. Upon receiving notice, such person may not proceed 
further in reliance upon the delegated action until notified of the 
outcome of the review by the Board.
    (d) By action of a delegatee. A delegatee may submit any matter to 
the Board for determination if the delegatee considers it appropriate 
because of the importance or complexity of the matter.

Subpart B--Delegations of Authority


Sec.  265.4  Functions delegated to Board members or staff within the 
Division of Board Members.

    (a) Chair. The Chair is authorized:
    (1) Bank for International Settlements. To appoint a first and 
second alternate director to the Board of Directors of the Bank for 
International Settlements.
    (2) Term Deposit Facility (TDF). To authorize TDF test operations 
with maximum award amounts of up to $20 billion and with maximum 
offering rates of up to 5 basis points over the interest on excess 
reserves rate, to adjust the schedules and other terms and conditions 
for TDF test operations as necessary, to approve additional TDF test 
operations, to determine when TDF test operations should offer term 
deposits with an early withdrawal feature, and to establish, with 
respect to term deposits that are offered with an early withdrawal 
feature, an early withdrawal penalty that includes forfeiture of all 
interest on any term deposits withdrawn before the expiration of the 
term plus an additional penalty of 75 basis points at an annual rate 
applied to the principal over the entire term of the term deposit.
    (3) Disclosures related to emergency lending programs. To approve:
    (i) Periodic reports to Congress under section 13(3)(C)(ii) of the 
Federal Reserve Act (12 U.S.C. 343(3)(C)(ii)) for the Primary Dealer 
Credit Facility, Money Market Liquidity Facility, Commercial Paper 
Funding Facility, Paycheck Protection Program Liquidity Facility, 
Secondary Market Corporate Credit Facility, Municipal Liquidity 
Facility, Term Asset-Backed Securities Loan Facility, Main Street New 
Loan Facility, Main Street Expanded Loan Facility, Main Street Priority 
Loan Facility, Nonprofit Organization New Loan Facility, and Nonprofit 
Organization Expanded Loan Facility, and to approve technical or minor 
changes to the scope of information included in such reports; and
    (ii) Seven-day reports to Congress under section 13(3)(C)(i) of the 
Federal Reserve Act (12 U.S.C. 343(3)(C)(ii)).
    (b) Chair of the Committee on Supervision and Regulation. The Chair 
of the Committee on Supervision and Regulation is authorized:
    (1) To act on requests for extensions of State member banks' and 
bank holding companies' advanced approaches first floor period start 
dates that are consistent with previous exemptions approved by the 
Board and that do not raise additional significant policy issues.
    (2) [Reserved].
    (c) Chair of the Committee on Federal Reserve Bank Affairs. The 
Chair of the Committee on Federal Reserve Bank Affairs is authorized to 
consider and grant or deny requests from the Federal Reserve Banks for 
exceptions to the Board's policies on Federal Reserve Bank directors.
    (d) Individual members. Any Board member designated by the Chair is 
authorized:
    (1) Approval of amendments to notice of charges or cease and desist 
orders. To approve (after receiving recommendations of the Director of 
the Division of Supervision and Regulation and the General Counsel) 
amendments to any notice, temporary order, or proposed order previously 
approved by the Board in a specific formal enforcement matter 
(including a notice of charges or removal notice) or any proposed or 
temporary cease and desist order previously approved by the Board under 
section 8(b) and (c) of the Federal Deposit Insurance Act (12 U.S.C. 
1818(b) and (c)).
    (2) Requests for permission to appeal rulings. (i) To act, when 
requested by the Secretary, upon any request under Sec.  263.10(e) of 
the Board's Rules of Practice for Hearings (12 CFR 263.10(e)) for 
special permission to appeal from a ruling of the presiding officer on 
any motion made at a hearing conducted under the rules, and if special 
permission is granted, the merits of the appeal shall be presented to 
the Board for decision.
    (ii) Notwithstanding Sec.  265.3, the denial of special permission 
to appeal a ruling may be reviewed by the Board only if a Board member 
requests a review within two days of the denial. No person claiming to 
be adversely affected by the denial shall have any right to petition 
the Board or any Board member for review or reconsideration of the 
denial.
    (3) Extension of time period for final Board action. To extend for 
an additional 180 days the 180-day period within which final Board 
action is required on an application pursuant to section 7(d) of the 
International Banking Act (12 U.S.C. 3105(d)).
    (e) Exigent circumstances. The Chair is authorized to determine 
when an emergency situation exists for purposes of section 2(b)(2) of 
the Board's Rules of Organization. If the Chair is unavailable or 
unable to determine that an

[[Page 54005]]

emergency situation exists, then the Vice Chair is authorized to 
determine when an emergency situation exists.
    (f) Three-member Action Committee. Any three Board members 
designated from time to time by the Chair are authorized:
    (1) Absence of quorum. To act, upon certification by the Secretary 
of the Board of an absence of a quorum of the Board present in person, 
by unanimous vote on any matter that the Chair has certified must be 
acted upon promptly in order to avoid delay that would be inconsistent 
with the public interest except for matters:
    (i) Relating to rulemaking;
    (ii) Pertaining principally to monetary and credit policies; and
    (iii) For which a statute expressly requires the affirmative vote 
of more than three Board members.
    (2) [Reserved].
    (g) Reports to Congress pursuant to the Small Business Regulatory 
Enforcement Fairness Act of 1996. The Assistant to the Board, 
Congressional Liaison Office, Division of Board Members, is authorized, 
in consultation with the General Counsel, to approve and submit the 
annual report to Congress describing the status of the Board's 
compliance with sections 212(a)(1) through (5) of the Small Business 
Regulatory Enforcement Fairness Act of 1996 (5 U.S.C. 601 note), 
pursuant to section 212(a)(6) of the Act.


Sec.  265.5  Functions delegated to the Secretary of the Board.

    The Secretary of the Board (or the Secretary's delegatee) is 
authorized:
    (a) Procedure--(1) Extension of time period for public 
participation in proposed regulations. To extend, when appropriate 
under the Board's Rules of Procedure (12 CFR 262.2(a) and (b)), the 
time period for public participation with respect to proposed 
regulations of the Board.
    (2) Extension of time period in notices, orders, rules, or 
regulations. (i) To grant or deny requests to extend any time period in 
any notice, order, rule, or regulation of the Board relating to filing 
information, comments, opposition, briefs, exceptions, or other 
matters, in connection with any application, request, or petition for 
the Board's approval authority, determination, or permission, or any 
other action by the Board.
    (ii) Notwithstanding Sec.  265.3, no person claiming to be 
adversely affected by any such extension of time by the Secretary shall 
have the right to petition the Board or any Board member for review or 
reconsideration of the extension.
    (3) Conforming citations and references in Board rules. (i) To 
conform references to administrative positions or units in Board rules 
with changes in the administrative structure of the Board and in the 
government and agencies of the United States.
    (ii) To conform citations and references in Board rules with other 
regulatory or statutory changes adopted or promulgated by the Board or 
by the government or agencies of the United States.
    (4) Technical corrections in Board rules and regulations. To make, 
with the concurrence of the General Counsel, technical corrections, 
such as spelling, grammar, construction, and organization (including 
making regular updates that are required by law and/or calculated via a 
formula prescribed by law, removal of obsolete provisions, and 
consolidation of related provisions), to the Board's rules, 
regulations, orders, and other records of Board action.
    (5) Procedural motions in administrative cases pending before the 
Board. To grant or deny procedural motions arising after an 
administrative case has been forwarded to the Board for final decision.
    (b) Availability of information--(1) Freedom of Information Act 
requests. To make available, upon request, information in Board records 
and consider requests for confidential treatment of information in 
Board records under the Freedom of Information Act (5 U.S.C. 552) and 
under the Board's Rules Regarding Availability of Information (12 CFR 
part 261).
    (2) Review of denial of access to Board records; Freedom of 
Information Act and Privacy Act. To review and determine an appeal of 
denial of access to Board records under the Freedom of Information Act 
(5 U.S.C. 552), the Privacy Act (5 U.S.C. 552a), and the Board's rules 
regarding such access (12 CFR parts 261 and 261a, respectively).
    (3) File reports of rulemakings with Congress and the Government 
Accountability Office. To file reports of rulemakings with Congress and 
the Government Accountability Office pursuant to the Congressional 
Review Act (5 U.S.C. 801 et seq.).
    (c) Bank holding companies; savings and loan holding companies; 
change in bank control; mergers--(1) Reports on competitive factors in 
bank mergers. To furnish reports on competitive factors involved in a 
bank merger to the Comptroller of the Currency and the Federal Deposit 
Insurance Corporation under the provisions of the Federal Deposit 
Insurance Act (12 U.S.C. 1828(c)); the Bank Holding Company Act (12 
U.S.C. 1842(a), 1843(c)(8) and (j)); the Bank Service Company Act (12 
U.S.C. 1865(a) and (b)); the Change in Bank Control Act (12 U.S.C. 
1817(j)); and the Federal Reserve Act (12 U.S.C. 321 et seq., 601-604a, 
611 et seq.).
    (2) Reserve Bank director interlocks. To take actions the Reserve 
Bank could take except for the fact that the Reserve Bank may not act 
because a director, senior officer, or principal shareholder of any 
bank holding company, bank, savings and loan holding company, or 
company involved in the transaction is a director of that Reserve Bank 
or branch of the Reserve Bank.
    (3) [Reserved].
    (4) Savings and loan holding companies. (i) To approve the 
establishment of a mutual holding company or a subsidiary holding 
company of a mutual holding company pursuant to section 10(o) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(o)) and Sec. Sec.  239.3 and 
239.11 of Regulation MM (12 CFR 239.3 and 239.11), including issuing a 
charter, if the following conditions are met:
    (A) The appropriate Reserve Bank and relevant divisions of the 
Board recommend approval; and
    (B) No significant policy issue is raised on which the Board has 
not expressed its view.
    (ii) To grant a request to deregister as a savings and loan holding 
company pursuant to section 10(b)(6) of the Home Owners' Loan Act (12 
U.S.C. 1467a(b)(6)) and Sec.  238.4(d) of Regulation LL (12 CFR 
238.4(d)).
    (d) International banking--(1) Acquisition of foreign company or 
U.S. company financing exports. To grant, under sections 25 and 25A of 
the Federal Reserve Act (12 U.S.C. 601 and 604, and 611 et seq.) and 
section 4(c)(13) of the Bank Holding Company Act (12 U.S.C. 
1843(c)(13)) and the Board's Regulations K and Y (12 CFR parts 211 and 
225), specific consent to the acquisition, either directly or 
indirectly, by a member bank, an Edge corporation, an agreement 
corporation, or a bank holding company, of stock of a company chartered 
under the laws of a foreign country or a company chartered under the 
laws of a State of the United States that is organized and operated for 
the purpose of financing exports from the United States, and to approve 
any such acquisition that may exceed the limitations of section 25A of 
the Federal Reserve Act (12 U.S.C. 611a, 615(c), and 619) based on the 
company's capital and surplus, if all of the conditions in paragraphs 
(d)(1)(i) through (iii) of this section are met:

[[Page 54006]]

    (i) The appropriate Reserve Bank and all relevant divisions of the 
Board's staff recommend approval;
    (ii) No significant policy issue is raised on which the Board has 
not expressed its view;
    (iii) The acquisition does not result, either directly or 
indirectly, in the bank, corporation, or bank holding company acquiring 
effective control of the company, except that this condition need not 
be met if:
    (A) The company is to perform nominee, fiduciary, or other services 
incidental to the activities of a foreign branch or affiliate of the 
bank holding company, or corporation; or
    (B) The stock is being acquired from the parent bank, parent bank 
holding company, subsidiary Edge corporation, or subsidiary agreement 
corporation, as the case may be, and the selling entity holds the stock 
with the consent of the Board pursuant to Regulation K or Y (12 CFR 
parts 211 or 225), as applicable.
    (2) [Reserved].
    (e) Member banks--(1) Waiver of penalty for early withdrawals of 
time deposits. To permit depository institutions to waive the penalty 
for early withdrawal of time deposits under section 19(j) of the 
Federal Reserve Act (12 U.S.C. 371b) and Sec.  204.2 of Regulation D 
(12 CFR 204.2) if the following conditions are met:
    (i) The President declares an area of major disaster or emergency 
area pursuant to section 301 of the Disaster Relief Act of 1974 (42 
U.S.C. 5141);
    (ii) The waiver is limited to depositors suffering disaster or 
emergency related losses in the officially designated area; and
    (iii) The appropriate Reserve Bank and all relevant divisions of 
the Board's staff recommend approval.
    (2) [Reserved].
    (f) Location of institution. To determine the Federal Reserve 
District in which an institution is located pursuant to Sec.  
204.3(g)(2) of Regulation D (12 CFR 204.3(g)(2)) or Sec.  209.2(c) of 
Regulation I (12 CFR 209.2(c)) if:
    (1) The relevant Federal Reserve Banks and the institution agree on 
the specific Reserve Bank in which the institution should hold stock or 
with which the institution should maintain reserve balances; and
    (2) The agreed-upon location does not raise any significant policy 
issues.


Sec.  265.6  Functions delegated to the General Counsel.

    The General Counsel (or the General Counsel's delegatee) is 
authorized:
    (a) Procedure--(1) Reconsideration of Board action. Pursuant to 
Sec.  262.3(k) of the Board's Rules of Procedure (12 CFR 262.3(k)) to 
determine whether or not to grant a request for reconsideration or 
whether to deny a request for stay of the effective date of any action 
taken by the Board with respect to an action as provided in that part.
    (2) Public meetings. To order, after consulting with the directors 
of other interested divisions of the Board and the appropriate Reserve 
Bank, that a public meeting or other proceeding be held in accordance 
with Sec.  262.25 of the Board's Rules of Procedure (12 CFR 262.25), in 
connection with any application or notice filed with the Board, and to 
designate the presiding officer in the proceeding under terms and 
conditions the General Counsel deems appropriate.
    (3) Designation of Board counsel for hearings. To designate Board 
staff attorneys as Board counsel in any proceeding ordered by the Board 
in accordance with Sec.  263.6 of the Board's Rules of Practice for 
Hearings (12 CFR 263.6).
    (b) Availability of Information--(1) Board records. To make 
available information of the Board of the nature and in the 
circumstances described in the Board's Rules Regarding Availability of 
Information (12 CFR part 261).
    (2) Disclosure to foreign authorities. To make the determinations 
required for disclosure of information to a foreign bank regulatory or 
supervisory authority, and to obtain, to the extent necessary, the 
agreement of such authority to maintain the confidentiality of such 
information to the extent possible under applicable law.
    (3) Assistance to foreign authorities. To approve requests for 
assistance from any foreign bank regulatory or supervisory authority 
that is conducting an investigation regarding violations of any law or 
regulation relating to banking matters or currency transactions 
administered or enforced by such authority, and to make the 
determinations required for any investigation or collection of 
information and evidence pertinent to such request. In deciding whether 
to approve requests for assistance under this paragraph (b)(3), the 
General Counsel shall consider:
    (i) Whether the requesting authority has agreed to provide 
reciprocal assistance with respect to banking matters within the 
jurisdiction of any appropriate Federal banking agency;
    (ii) Whether compliance with the request would prejudice the public 
interest of the United States; and
    (iii) Whether the request is consistent with the requirement that 
the Board conduct any such investigation in compliance with the laws of 
the United States and the policies and procedures of the Board.
    (c) Bank holding companies; savings and loan holding companies; 
change in bank control; mergers--(1) Control determinations under 
section 4(c)(8) of the Bank Holding Company Act. To determine, or issue 
an order for a hearing to determine, whether a company engaged in 
financial, fiduciary, or insurance activities falls within the 
exemption in section 4(c)(8) of the Bank Holding Company Act (12 U.S.C. 
1843(c)(8)), permitting retention or acquisition of control thereof by 
a bank holding company.
    (2) Data processing. In consultation with the Director of the 
Division of Supervision and Regulation, to review and act on requests 
for permission by bank holding companies to administer the 49 percent 
revenue limit on nonfinancial data processing activities on a business-
line or multiple-entity basis in appropriate circumstances under Sec.  
225.28(b)(14)(ii) of Regulation Y (12 CFR 225.28(b)(14)(ii)).
    (3) Notices under the Change in Bank Control Act. To revoke 
acceptance of and return as incomplete a notice filed under the Change 
in Bank Control Act (12 U.S.C. 1817(j)) or to extend the time during 
which action must be taken on a notice where the General Counsel 
determines, with the concurrence of the Director of the Division of 
Supervision and Regulation, that the notice is materially incomplete 
under that Act or Regulation Y (12 CFR part 225), or contains material 
information that is substantially inaccurate.
    (d) Management interlocks--(1) General exemptions. After 
consultation with the Director of the Division of Supervision and 
Regulation, to grant exceptions from the prohibitions of Regulation L 
(12 CFR part 212) or subpart J of Regulation LL (12 CFR part 238 
subpart J) under the general exemption of section 212.6 of Regulation L 
(12 CFR 212.6) or section 238.96 of Regulation LL (12 CFR 238.6).
    (2) Legacy management interlocks. After consultation with the 
Director of the Division of Supervision and Regulation, to approve a 
request to extend a management interlock permissible under section 206 
of the Depository Institution Management Interlocks Act (12 U.S.C. 
3205).
    (e) Enforcement actions. With the concurrence of the Director of 
the Division of Supervision and Regulation:
    (1) To enter into a cease-and-desist order, removal and prohibition 
order, or civil money penalty assessment order with a bank holding 
company or any nonbanking subsidiary thereof, with a State member bank, 
with a savings and

[[Page 54007]]

loan holding company, or with any other person or entity subject to the 
Board's jurisdiction under section 8(b) or (e) of the Federal Deposit 
Insurance Act (12 U.S.C. 1818(b) or (e)), when the order has been 
consented to by the institution or individual subject to the order; or 
to issue a notice suspending or prohibiting an institution-affiliated 
party under section 8(g) of the Federal Deposit Insurance Act (12 
U.S.C. 1818(g)) when the notice has been consented to by the individual 
subject to the notice;
    (2) To stay, modify, terminate, or suspend an order or notice 
issued pursuant to paragraph (e)(1) of this section.
    (3) To grant consent to a person subject to an order of removal 
and/or prohibition or suspension notice or order issued by the Board or 
other Federal financial institutions regulatory agency to become an 
institution-affiliated party of, to otherwise participate in the 
conduct of the affairs of, or to take an action with respect to any 
voting rights in, any Board-supervised institution or entity.
    (4) To take, or authorize designated persons to take actions 
permitted under 12 U.S.C. 1818(n), 1820(c), and 12 U.S.C. 1844(f), 
including administering oaths and affirmations, taking depositions, and 
issuing, revoking, quashing, or modifying subpoenas duces tecum.
    (f) International banking--(1) After-the-fact applications. With 
the concurrence of the Director of the Division of Supervision and 
Regulation, to grant a request by a foreign bank to establish a branch, 
agency, commercial lending company, or representative office through 
certain acquisitions, mergers, consolidations, or similar transactions, 
in conjunction with which:
    (i) The foreign bank would be required to file an after-the-fact 
application for the Board's approval under Sec.  211.24(a)(6) of 
Regulation K (12 CFR 211.24(a)(6)); or
    (ii) The General Counsel may waive the requirement for an after-
the-fact application if:
    (A) The surviving foreign bank commits to wind down the U.S. 
operations of the acquired foreign bank; and
    (B) The merger or consolidation raises no significant policy or 
supervisory issues.
    (2) To modify the requirement that a foreign bank that has 
submitted an application or notice to establish a branch, agency, 
commercial lending company, or representative office pursuant to Sec.  
211.24(a) of Regulation K (12 CFR 211.24(a)) shall publish notice of 
the application or notice in a newspaper of general circulation in the 
community in which the applicant or notificant proposes to engage in 
business, as provided in Sec.  211.24(b)(2) of Regulation K (12 CFR 
211.24(b)(2)).
    (3) With the concurrence of the Director of the Division of 
Supervision and Regulation, to grant a request for an exemption under 
section 4(c)(9) of the Bank Holding Company Act (12 U.S.C. 1843(c)(9)), 
provided that the request raises no significant policy or supervisory 
issues that the Board has not already considered.
    (4) To return applications and notices filed under the 
International Banking Act for informational deficits.
    (5) To determine that an entity qualifies as a ``special-purpose 
foreign government-owned bank'' for purposes of Sec.  211.24(d)(3) of 
Regulation K (12 CFR 211.24(d)(3)).
    (g) Conflicts of interest waivers. To issue individual conflicts of 
interest waivers under 18 U.S.C. 208(b)(1) to employees and officials 
other than Board members.
    (h) Deregistration requests. With the concurrence of the Director 
of the Division of Supervision and Regulation, to determine, pursuant 
to section 10(a)(1)(D)(ii) of the Home Owners' Loan Act (12 U.S.C. 
1467a(a)(1)(D)(ii)), that a company is not a savings and loan holding 
company by virtue of its control of a savings association that 
functions solely in a trust or fiduciary capacity as described in 
section 2(c)(2)(D) of the Bank Holding Company Act (12 U.S.C. 
1841(c)(2)(D)), where no significant legal, policy, or supervisory 
issues are raised by the specific proposal.
    (i) Small entity compliance guides. In consultation with the 
director of any other division responsible for drafting the associated 
rule, as appropriate, to approve and publish small entity compliance 
guides in accordance with section 212 of the Small Business Regulatory 
Enforcement Fairness Act of 1996 (5 U.S.C. 601 note).
    (j) Internal debt conversion triggers. In consultation with the 
Director of the Division of Supervision and Regulation, to approve 
contractual language (``conversion trigger'') required to be included 
in the eligible internal debt securities (``eligible long-term debt'') 
issued pursuant to the Board's total loss-absorbing capacity rule 
(``TLAC Rule'') by the U.S. intermediate holding companies of foreign 
global systemically important banking organizations required to be 
formed under 12 CFR 252.153(a) (``Covered IHCs''), to the extent that 
such language does not raise any significant legal, policy, or 
supervisory concerns. The authority delegated to the General Counsel in 
consultation with the Director of the Division of Supervision and 
Regulation to approve conversion triggers is limited to requests that 
meet the following criteria:
    (1) The conversion trigger does not include any conditions for 
triggering the conversion other than the issuance of an internal debt 
conversion order by the Board;
    (2) The instruments governing the long-term debt and related 
documents mitigate any impediments to conversion of the long-term debt 
into equity capital;
    (3) The conversion trigger provides for the conversion of the long-
term debt into common equity tier 1 capital;
    (4) The conversion trigger requires the conversion of long-term 
debt in the amount specified by the Board's internal debt conversion 
order; and
    (5) Upon conversion of long-term debt pursuant to the conversion 
trigger, the converted long-term debt would no longer remain 
outstanding as a liability of the Covered IHC.
    (k) Section 19 of the Federal Deposit Insurance Act. With the 
concurrence of the Director of the Division of Supervision and 
Regulation, to approve or disapprove requests under section 19 of the 
Federal Deposit Insurance Act (12 U.S.C. 1829) where no significant 
legal, policy or supervisory issues are raised by the specific 
proposal.


Sec.  265.7  Functions delegated to the Director of the Division of 
Supervision and Regulation.

    The Director of the Division of Supervision and Regulation (or the 
Director's delegatee) is authorized:
    (a) Procedure--(1) Cease and desist orders. To refuse, with the 
prior concurrence of the appropriate Reserve Bank and the General 
Counsel, an application to the Board to stay, modify, terminate, or set 
aside any effective cease and desist order previously issued by the 
Board under section 8(b) of the Federal Deposit Insurance Act (12 
U.S.C. 1818(b)), or any written agreement between the Board or the 
Reserve Bank and a bank holding company or any nonbanking subsidiary 
thereof, a savings and loan holding company or any nondepository 
subsidiary thereof, or a State member bank.
    (2) Modification of commitments or conditions. To grant or deny 
requests for modifying, including extending the time for, performing a 
commitment or condition relied on by the Board or its delegatee in 
taking any action under the Bank Holding Company Act, the Home Owners' 
Loan Act, section 18(c) of the Federal Deposit Insurance Act, the

[[Page 54008]]

Change in Bank Control Act, the Federal Reserve Act, the International 
Banking Act, or the Dodd-Frank Wall Street Reform and Consumer 
Protection Act. In acting on such requests, the Director may take into 
account changed circumstances and good faith efforts to fulfill the 
commitments or conditions, and shall consult with the directors of 
other interested divisions where appropriate. The Director may not take 
any action that would be inconsistent with or result in an evasion of 
the provisions of the Board's original action.
    (3) Processing extensions. With the concurrence of the General 
Counsel, to extend the processing periods for the following 
applications and notices:
    (i) The 60-day processing period for an acquisition of a bank or 
bank holding company filed under section 3 of the Bank Holding Company 
Act (12 U.S.C. 1842), pursuant to Sec.  225.15(d)(2) of Regulation Y 
(12 CFR 225.15(d)(2));
    (ii) The 60-day processing period for a nonbanking proposal filed 
under section 4 of the Bank Holding Company Act (12 U.S.C. 1843), 
pursuant to:
    (A) Section 225.24(d)(2) of Regulation Y (12 CFR 225.24(d)(2)); and
    (B) Section 4(j)(1)(C) of the Bank Holding Company Act (12 U.S.C. 
1843(j)(1)(C)) and Sec.  225.24(d)(3) of Regulation Y (12 CFR 
225.24(d)(3));
    (iii) The 60-day processing period for an acquisition of a savings 
association or savings and loan holding company filed under section 
10(e) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)), pursuant to 
Sec.  238.14(g)(2) of Regulation LL (12 CFR 238.14(g)(2));
    (iv) The 60-day processing period for a nonbanking proposal filed 
under section 10(c) of the Home Owners' Loan Act (12 U.S.C. 1467a(c)), 
pursuant to:
    (A) Section 238.53(f)(2) of Regulation LL (12 CFR 238.53(f)(2)); 
and
    (B) Section 238.53(f)(3) of Regulation LL (12 CFR 238.53(f)(3)); 
and
    (v) For an additional 180 days, the 180-day period within which 
final Board action is required on an application pursuant to section 
7(d) of the International Banking Act (12 U.S.C. 3105(d)).
    (4) Notice of insufficient capital. To issue, with the concurrence 
of the General Counsel, a notice that a State member bank, bank holding 
company, or savings and loan holding company has insufficient capital 
and which directs the bank or company to file with its regional Reserve 
Bank a capital improvement plan under subpart E of the Board's Rules of 
Practice for Hearings (12 CFR part 263, subpart E).
    (5) Obtaining possession or control of securities; extending time 
period. To approve, under section 403.5(g) of the Treasury Department 
regulations (17 CFR 403.5) implementing the Government Securities Act 
of 1986, as amended (Pub. L. 95-571), the application of a member bank, 
a State branch or agency of a foreign bank, a foreign bank, or a 
commercial lending company owned or controlled by a foreign bank, to 
extend for one or more limited periods commensurate with the 
circumstances the 30-day time period specified in 17 CFR 
403.5(c)(1)(iii), provided that the Director of the Division of 
Supervision and Regulation is satisfied that the applicant is acting in 
good faith and that exceptional circumstances warrant such action.
    (b) Availability of information--(1) Confidential supervisory 
information. To make available information of the Board of the nature 
and in the circumstances described in Sec.  261.22 of the Board's Rules 
Regarding Availability of Information (12 CFR 261.22).
    (2) Freedom of Information Act; availability of information. To 
make available, under the Board's Rules Regarding Availability of 
Information (12 CFR part 261), reports and other information of the 
Board acquired pursuant to the Board's Regulations G, T, U, and X (12 
CFR parts 207, 220, 221, 224) of the nature and in circumstances 
described in Sec.  261.15(a)(4) and (8) of these rules.
    (c) Bank holding companies; savings and loan holding companies; 
financial holding companies; change in bank control; mergers--(1) Bank 
holding company and savings and loan holding company registration forms 
and annual reports. To promulgate registration forms and annual reports 
and other forms for use in connection with the Bank Holding Company Act 
and the Home Owners' Loan Act, after receiving clearance from the 
Office of Management and Budget (where necessary), under section 5 of 
the Bank Holding Company Act (12 U.S.C. 1844) or section 10 of the Home 
Owners' Loan Act (12 U.S.C. 1467a), and in accordance with 5 U.S.C. 
553.
    (2) Emergency action. To take actions the Reserve Bank could take 
under this part at Sec.  265.20(c)(2)(ii) if immediate or expeditious 
action is required to avert failure of a bank or savings association or 
because of an emergency pursuant to sections 3(a) and 4(c)(8) of the 
Bank Holding Company Act (12 U.S.C. 1842(a), 1843(c)(8)), section 10(c) 
of the Home Owners' Loan Act (12 U.S.C. 1467a(c)), or the Change in 
Bank Control Act (12 U.S.C. 1817(j)).
    (3) Waiver of notice. To waive, dispense with, modify or excuse the 
failure to comply with the requirement for publication and solicitation 
of public comment regarding a notice filed under the Change in Bank 
Control Act (12 U.S.C. 1817(j)), with the concurrence of the General 
Counsel, provided a written finding is made that such disclosure would 
seriously threaten the safety or soundness of a bank holding company, 
savings and loan holding company, or a bank.
    (4) Notices for addition or change of directors or officers. Under 
section 914(a) of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 1831i) and subpart H of Regulation Y 
(12 CFR part 225, subpart H) or subpart H of Regulation LL (12 CFR part 
238, subpart H), provided that no senior officer or director or 
proposed senior officer or director of the notificant is also a 
director of the Reserve Bank or a branch of the Reserve Bank:
    (i) To determine the informational sufficiency of notices filed 
pursuant to Sec.  225.72 of Regulation Y (12 CFR 225.72) or Sec.  
238.73 of Regulation LL (12 CFR 238.73); and
    (ii) To waive the prior notice requirements of that section.
    (5) ERISA violations. To provide the Department of Labor written 
notification of possible significant violations of the Employee 
Retirement Income Security Act (ERISA) (29 U.S.C. 1001 et seq.) by bank 
holding companies or savings and loan holding companies, in accordance 
with section 3004(b) of ERISA (29 U.S.C. 1204(b)) and the Interagency 
Agreement adopted to implement its provisions.
    (6) Appraisal not required. To determine pursuant to 12 CFR 
225.63(a)(13) that the services of an appraiser are not necessary in 
order to protect Federal financial and public policy interests in real 
estate-related financial transactions or to protect the safety and 
soundness of an institution.
    (7) Financial holding company corrective action agreements. With 
the concurrence of the General Counsel, to authorize a financial 
holding company, or a foreign bank that has elected to be treated as a 
financial holding company, that is subject to section 4(m) of the Bank 
Holding Company Act (12 U.S.C. 1843(m)):
    (i) To acquire shares of a company pursuant to authority in section 
4(k) of the Bank Holding Company Act (12 U.S.C. 1843(k)) in order to 
continue to engage in the following categories of existing activities 
which require recurring transactions in the ordinary course:
    (A) Merchant banking,
    (B) Underwriting dealing in, or making a market in securities;

[[Page 54009]]

    (C) Sponsoring, organizing, and managing customer-driven investment 
funds; and
    (D) Hedging risks incurred in ongoing permissible activities;
    (ii) To extend the time within which a financial holding company 
must execute a corrective agreement under section 4(m) of the Bank 
Holding Company Act (12 U.S.C. 1843(m));
    (iii) To extend the time limits in, or otherwise modify, corrective 
agreements under section 4(m) of the Bank Holding Company Act (12 
U.S.C. 1843(m)); and
    (iv) To determine not to make public any corrective agreement under 
section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m));
    (8) Complementary physical commodity trading activities. With the 
concurrence of the General Counsel, to approve requests by financial 
holding companies to engage in complementary physical commodity trading 
activities, pursuant to section 4(k)(1)(B) of the Bank Holding Company 
Act (12 U.S.C. 1843(k)(1)(B)), as an activity that is complementary to 
permissible commodity derivatives activities, provided that the 
proposal meets the conditions imposed by the Board approving previous 
requests and the proposal does not raise any significant legal, policy, 
or supervisory issues.
    (9) Extension of merchant banking investment holding periods. With 
the concurrence of the General Counsel, to approve requests by 
financial holding companies to hold merchant banking investments beyond 
the standard time periods established in Sec.  225.172(b)(4) of 
Regulation Y (12 CFR 225.172(b)(4)), where no significant legal, 
policy, or supervisory issues are raised by the specific request.
    (10) Single-counterparty credit limits rule exemptions. With the 
concurrence of the General Counsel, to act on exemption requests under 
section 165(e) of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (12 U.S.C. 5365(e)) and subparts H and Q of Regulation 
YY (12 CFR part 252, subparts H and Q) where no significant legal, 
policy, or supervisory issues are raised.
    (11) Stress tests. (i) Jointly with the Director of the Division of 
Financial Stability, with the concurrence of the Chair of the Board's 
Committee on Supervision and Regulation:
    (A) To develop and issue scenarios, including, but not limited to, 
the baseline scenario and the severely adverse scenario, that the Board 
would use to conduct analyses under Sec.  238.132 of Regulation LL (12 
CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 252.44) and that 
a company would use to conduct its stress tests under Sec.  238.143 of 
Regulation LL (12 CFR 238.143) or Sec.  252.14 or Sec.  252.54 of 
Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that 
no significant policy issues are raised; and
    (B) To develop and issue additional scenarios or additional 
components for use in the severely adverse scenario under Sec. Sec.  
238.132(b) and 238.143(b)(2) and (3) of Regulation LL (12 CFR 
238.132(b) and 238.143(b)(2) and (b)(3)), and Sec. Sec.  252.14(b)(2) 
and (3), 252.44(b), and 252.54(b)(2) and (b)(3) of Regulation YY (12 
CFR 252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (3)), that 
the Board would use to conduct analyses under Sec.  238.132 of 
Regulation LL (12 CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 
225.44) and that a company would use to conduct its stress tests under 
Sec.  238.143 of Regulation LL (12 CFR 238.143) or Sec.  252.14 or 
Sec.  252.54 of Regulation YY (12 CFR 252.14 or 252.54), as 
appropriate, provided that no significant policy issues are raised;
    (ii) With the concurrence of the Chair of the Committee on 
Supervision and Regulation:
    (A) After consultation with the Board, to convey to a company the 
summary of the results of the Board's analyses of the company under 
Sec.  238.134 of Regulation LL (12 CFR 238.134) or Sec.  252.46 of 
Regulation YY (12 CFR 252.46);
    (B) After consultation with the Board and the Director of the 
Division of Financial Stability, to determine the content and timing of 
the public disclosure of the results of the Board's analyses of a 
company under Sec.  238.134 of Regulation LL (12 CFR 238.134) or Sec.  
252.46 of Regulation YY (12 CFR 252.46);
    (C) To determine any appropriate updates to a company's resolution 
plan based on the results of the Board's analyses of the company under 
Sec.  252.47 of Regulation YY (12 CFR 252.47); and
    (D) To require a company to include one or more additional 
components in its severely adverse scenario in its stress test based on 
the company's financial condition, size, complexity, risk profile, 
scope of operations, or activities, or risks to the U.S. economy 
pursuant to Sec.  238.143(b)(2) of Regulation LL (12 CFR 238.143(b)(2)) 
and Sec. Sec.  252.14(b)(2) and 252.54(b)(2) of Regulation YY (12 CFR 
252.14(b)(2) and 252.54(b)(2));
    (iii) After consultation with the Chair of the Committee on 
Supervision and Regulation:
    (A) To evaluate whether a company has the capital necessary to 
absorb losses and continue its operation under baseline and severely 
adverse scenarios, and any additional scenarios, under Sec.  238.134 of 
Regulation LL (12 CFR 238.134) or Sec.  252.46 of Regulation YY (12 CFR 
252.46);
    (B) To conduct annual analyses of a company under Sec.  238.132 of 
Regulation LL (12 CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 
252.44); and
    (C) To require a company with significant trading activity, as 
specified in the Capital Assessments and Stress Testing report (FR Y-
14), or a subsidiary of such company, to include a trading and 
counterparty component in its severely adverse scenario in its stress 
test pursuant to Sec.  238.143(b)(2) of Regulation LL (12 CFR 
238.143(b)(2)) and Sec. Sec.  252.14(b)(2) and 252.54(b)(2) of 
Regulation YY (12 CFR 252.14(b)(2) and 252.54(b)(2));
    (iv) In consultation with the General Counsel, to respond to a 
company's request for reconsideration that the company is required to 
include one or more additional components in its severely adverse 
scenario, including a trading or counterparty component, or to use one 
or more additional scenarios under Sec.  238.143(b)(4) of Regulation LL 
(12 CFR 238.143(b)(4)) and Sec. Sec.  252.14(b)(4) and 252.54(b)(4) of 
Regulation YY (12 CFR 252.14(b)(4) and 252.54(b)(4)); and
    (v) The Director of the Division of Supervision and Regulation is 
also authorized to:
    (A) Notify a company of the determination that the company is 
required to include one or more additional components in its severely 
adverse scenario, including a trading or counterparty component, or to 
use one or more additional scenarios under Sec.  238.143(b)(4) of 
Regulation LL (12 CFR 238.143(b)(4)) and Sec. Sec.  252.14(b)(4) and 
252.54(b)(4) of Regulation YY (12 CFR 252.14(b)(4) and 252.54(b)(4));
    (B) Coordinate with the appropriate primary financial regulatory 
agencies in conducting the analyses under Sec.  238.132 of Regulation 
LL (12 CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 252.44);
    (C) Provide the as-of date of any scenarios, additional scenarios, 
additional components, and the relevant data under Sec.  238.143(b) of 
Regulation LL (12 CFR 238.143(b)), or Sec.  252.14(b) or Sec.  
252.54(b) of Regulation YY (12 CFR 252.14(b) or 252.54(b)), as 
appropriate;
    (D) Extend (and in the case of nonbank financial companies 
supervised by the Board or savings and loan holding companies, 
accelerate) the compliance date for companies under Sec.  238.131 or 
Sec.  238.142 of Regulation LL (12 CFR 238.131 or 238.142), or Sec.  
252.13, Sec.  252.43, or Sec.  252.53 of

[[Page 54010]]

Regulation YY (12 CFR 252.13, 252.43, or 252.53), as appropriate;
    (E) Extend any or all of the following time periods:
    (1) The time period by which a company must conduct its stress test 
or the as-of date of the data under Sec.  238.143(a) of Regulation LL 
(12 CFR 238.143(a)), or Sec.  252.14(a) or Sec.  252.54(a) of 
Regulation YY (12 CFR 252.14(a) or 252.54(a)), as appropriate;
    (2) The time period by which a company must file a report to the 
Board under Sec.  238.145(a) of Regulation LL (12 CFR 238.145(a)), or 
Sec.  252.16(a) or Sec.  252.57(a) of Regulation YY (12 CFR 252.16(a) 
or 252.57(a)), as appropriate; and
    (3) The time period by which a company must disclose a summary of 
results of its stress tests under Sec.  238.146 of Regulation LL (12 
CFR 238.146), or Sec.  252.17 or Sec.  252.58 of Regulation YY (12 CFR 
252.17 or 252.58), as appropriate;
    (F) Require a company to submit additional information on a 
consolidated basis pursuant to Sec.  238.133 of Regulation LL (12 CFR 
238.133) or Sec.  252.45 of Regulation YY (12 CFR 252.45) that the 
Director determines necessary to ensure that the Board has sufficient 
information to conduct its analysis under Sec.  238.132 of Regulation 
LL (12 CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 252.44) or 
as necessary to project a company's pro forma financial condition;
    (G) Require a company to submit additional information under Sec.  
238.145 of Regulation LL (12 CFR 238.145), or Sec.  252.16 or Sec.  
252.57 of Regulation YY (12 CFR 252.16 or 252.57), as appropriate; and
    (H) Determine that disclosures made by a bank holding company do 
not adequately capture the potential impact of scenarios on the capital 
of a State member bank pursuant to Sec.  252.17 of Regulation YY (12 
CFR 252.17) and require that the State member bank make the same 
disclosure as required for State member banks that are not subsidiaries 
of bank holding companies.
    (12) Volcker Rule conformance period extensions. With the 
concurrence of the General Counsel, to approve (but not deny) a request 
by a new banking entity for an extension of time to conform its 
activities and investments to the requirements of section 13 of the 
Bank Holding Company Act and its implementing regulations, pursuant to 
Sec.  225.181(a)(3) of Regulation Y (12 CFR 225.181(a)(3)), provided 
that the approval criteria thereunder are met and the request raises no 
significant policy or supervisory issues.
    (d) International banking--(1) Foreign bank reports. To require 
submission of a report of condition respecting any foreign bank in 
which a member bank holds stock acquired under Sec.  211.8(b) of 
Regulation K (12 CFR 211.8(b)), pursuant to section 25 of the Federal 
Reserve Act (12 U.S.C. 602).
    (2) Edge corporation reports. To require submission and publication 
of reports by an Edge corporation under section 25A of the Federal 
Reserve Act (12 U.S.C. 625).
    (3) International banking matters. With the concurrence of the 
General Counsel, to approve applications, notices, exemption requests, 
waivers and suspensions, and other related matters under Regulation K 
(12 CFR part 211), where such matters do not raise any significant 
legal, supervisory, or policy issues.
    (4) Allocated transfer risk reserves. To determine the need for 
establishing and the amount of any allocated transfer risk reserve 
against specific international assets, and notify the banking 
institutions of the determination and the amount of the reserve and 
whether the reserve may be reduced under subpart D of Regulation K (12 
CFR part 211, subpart D).
    (5) Conduct and coordination of examinations. To authorize the 
conduct of examinations of the U.S. offices and affiliates of foreign 
banks as provided in sections 7(c) and 10(c) of the International 
Banking Act (12 U.S.C. 3105(c) and 3107(c)), and, where appropriate, to 
coordinate those examinations with examinations of the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
and the State entity that is authorized to supervise or regulate a 
State branch, State agency, commercial lending company, or 
representative office.
    (6) Election by a foreign bank to be treated as financial holding 
company. With the concurrence of the General Counsel, to determine that 
an election by a foreign bank to become or to be treated as a financial 
holding company is effective, provided that:
    (i) The foreign bank meets the criteria for becoming or being 
treated as a financial holding company; and
    (ii) The election raised no significant policy or supervisory 
issues.
    (7) Enhanced prudential standards rule for foreign banking 
organizations. (i) With the concurrence of the Chair of the Committee 
on Supervision and Regulation and the General Counsel, to grant or deny 
a request to permit a foreign banking organization to use an 
alternative organizational structure or not transfer its ownership 
interest in a U.S. subsidiary to its intermediate holding company under 
subpart O of Regulation YY (12 CFR part 252, subpart O), subject, as 
appropriate, to any commitments or conditions, provided that the 
request raises no significant policy or supervisory issues.
    (ii) In consultation with the General Counsel, to:
    (A) Commitments. Grant or deny requests for modifying, including 
extending the time for, performing a commitment or condition relied on 
by the Board or its delegatee in taking any action under subparts M 
through O of Regulation YY (12 CFR part 252, subparts M-O). In acting 
on such requests, the Director may take into account changed 
circumstances and good faith efforts to fulfill the commitments or 
conditions, and shall consult with the directors of other interested 
divisions where appropriate. The Director may not take any action that 
would be inconsistent with or result in an evasion of the provisions of 
the Board's original action;
    (B) Stress testing. (1) Determine that an asset should not qualify 
as an eligible asset under Sec. Sec.  252.146 and 252.158 of Regulation 
YY (12 CFR 252.146 and 252.158);
    (2) Determine that a foreign banking organization or foreign 
savings and loan holding company must meet the additional standards, 
respectively, under Sec.  238.162(b) of Regulation LL (12 CFR 
238.162(b)) and Sec. Sec.  252.146 and 252.158 of Regulation YY (12 CFR 
252.146 and 252.158);
    (3) Approve an enterprise-wide stress test and determine that it 
meets the stress test requirements under Sec.  238.162(b) of Regulation 
LL (12 CFR 238.162(b)) and Sec. Sec.  252.146 and 252.158 of Regulation 
YY (252.146 and 252.158);
    (4) Require the U.S. branches and agencies of a foreign banking 
organization and, if the foreign banking organization has not 
established a U.S. intermediate holding company, any subsidiary of the 
foreign banking organization, to maintain a liquidity buffer or be 
subject to intragroup funding restrictions under Sec.  252.158(d)(3) of 
Regulation YY (12 CFR 252.158(d)(3));
    (C) Capital. Determine that a foreign banking organization would 
meet or exceed capital adequacy standards on a consolidated basis that 
are consistent with the Basel Capital Framework were the foreign 
banking organization subject to such standards under Sec. Sec.  
252.143(a)(2) and 252.154(a)(2) of Regulation YY (12 CFR 252.143(a)(2) 
and 252.154(a)(2));
    (D) Risk management. Approve an alternative reporting structure for 
a U.S. chief risk officer based on circumstances

[[Page 54011]]

specific to the foreign banking organization under Sec. Sec.  
252.144(c)(3)(iii) and 252.155(b)(3)(iii) of Regulation YY (12 CFR 
252.144(c)(3)(iii) and 252.155(b)(3)(iii));
    (E) Liquidity. (1) Require a foreign banking organization to 
calculate the collateral positions for its combined U.S. operations 
more frequently than required under Sec.  252.156(g)(l)(i) of 
Regulation YY (12 CFR 252.156(g)(l)(i));
    (2) Require a foreign banking organization to perform stress 
testing more frequently than is required under Sec.  252.157(a)(2) of 
Regulation YY (12 CFR 252.157(a)(2)); and
    (F) Additional information. Require a foreign banking organization 
to provide additional information under Sec. Sec.  252.147(a)(3), 
252.153(a)(3) and 252.158(c)(2) of Regulation YY (12 CFR 252.147(a)(3), 
252.153(a)(3) and 252.158(c)(2)), as appropriate.
    (e) Member banks--(1) Membership certification to FDIC. To certify, 
under section 4(b) of the Federal Deposit Insurance Act (12 U.S.C. 
1814(b)), to the Federal Deposit Insurance Corporation that the factors 
specified in section 6 of the Federal Deposit Insurance Act (12 U.S.C. 
1816) were considered with respect to the admission of a State-
chartered bank to Federal Reserve membership.
    (2) Dollar exchange. To permit any member bank to accept drafts or 
bill of exchange drawn upon it for the purpose of furnishing dollar 
exchange under section 13(12) of the Federal Reserve Act (12 U.S.C. 
373).
    (3) ERISA violations. To provide to the Department of Labor written 
notification of possible significant violations of the Employee 
Retirement Income Security Act (ERISA) (29 U.S.C. 1001 et seq.) by 
member banks, in accordance with section 3004(b) of ERISA (29 U.S.C. 
1204(b)) and the Interagency Agreement adopted to implement its 
provisions.
    (4) Examiners. To select or approve the appointment of Federal 
Reserve examiners, assistant examiners, and special examiners for the 
purpose of making examinations for or by the direction of the Board 
under 12 U.S.C. 325, 338, 625, 1844(c), and 3105(c)(1).
    (5) Capital stock reduction; branch applications; declaration of 
dividends; investment in bank premises. To exercise the functions 
described in Sec.  265.20(e)(5), (11), and (12)(reductions in capital, 
issuance of subordinated debt, and early retirement of subordinated 
debt) when the conditions specified in those sections preclude a 
Reserve Bank from acting on a member bank's request for action or when 
the Reserve Bank concludes that it should not take action, and to 
exercise the functions in Sec.  265.20(e)(3), (4), and (7) (approving 
branch applications, declaration of dividends, and investment in bank 
premises) in cases in which the Reserve Bank concludes that it should 
not take action.
    (6) Security devices. To exercise the functions described in Sec.  
265.20(e)(8) in those cases in which the appropriate Reserve Bank 
concludes that it should not take action for good cause.
    (7) Public welfare investments. (i) To permit a State member bank 
to make a public welfare investment in accordance with section 9(23) of 
the Federal Reserve Act (12 U.S.C. 338a) in any case in which the 
appropriate Reserve Bank does not have delegated authority to act, 
unless the proposal does not satisfy Sec.  208.22(b)(1) of Regulation H 
(12 CFR 208.22(b)(1)). In acting on such requests, the Director shall 
consult with the directors of other interested divisions where 
appropriate; and
    (ii) To determine, in connection with acting on a proposal pursuant 
to delegated authority as set forth in paragraph (e)(7)(i) of this 
section, that the aggregate amount of a State member bank's public 
welfare investments will not pose a significant risk to the deposit 
insurance fund in accordance with section 9(23) of the Federal Reserve 
Act (12 U.S.C. 338a).
    (8) Prior approval for capital distributions. With the concurrence 
of the Vice Chair for Supervision, to approve (but not deny) a request 
to make a distribution pursuant to Sec.  217.303(g) of the Board's 
Regulation Q (12 CFR 217.303(g)).
    (f) Securities--(1) Registration statements by member banks. Under 
section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l(g)):
    (i) To accelerate the effective date of a registration statement 
filed by a member bank with respect to its securities;
    (ii) To accelerate termination of the registration of a security 
that is no longer held of record by 300 persons; and
    (iii) To extend the time for filing a registration statement by a 
member bank.
    (2) Exemption from registration. To issue notices with respect to 
application by a State member bank for exemption from registration 
under section 12(h) of the Securities Exchange Act of 1934 (15 U.S.C. 
78l(h)).
    (3) Accelerating registration of security on national securities 
exchange. To accelerate the effective date of an application by a State 
member bank for registration of a security on a national securities 
exchange under section 12(d) of the Securities Exchange Act of 1934 (15 
U.S.C. 78l(d)).
    (4) Unlisted trading in security of a State member bank. To issue 
notices with respect to an application by a national securities 
exchange for unlisted trading privileges in a security of a State 
member bank under section 12(f) of the Securities Exchange Act of 1934 
(15 U.S.C. 78l(f)).
    (5) Transfer agent registration; acceleration; withdrawal or 
cancellation. (i) To accelerate, under section 17A(c)(2) of the 
Securities Exchange Act of 1934, as amended (15 U.S.C. 78q-1(c)(2)), 
the effective date of a registration statement for transfer agent 
activities filed by a member bank or a subsidiary thereof, a bank 
holding company or a subsidiary thereof that is a bank as defined in 
section 3(a)(6) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(6)) other than a bank specified in clause (i) or (iii) of 
section 3(a)(34)(B) of the Securities Exchange Act of 1934 (15 U.S.C. 
78c(a)(34)(B)).
    (ii) To withdraw or cancel, under section 17A(c)(3)(C) of the 
Securities Exchange Act of 1934, as amended (15 U.S.C. 78q-1(c)(4)(B)), 
the transfer agent registration of a member bank or a subsidiary 
thereof, a bank holding company, or a subsidiary thereof that is a bank 
as defined in section 3(a)(6) of the Securities Exchange Act of 1934 
(15 U.S.C. 78c(a)(6)) other than a bank specified in clause (i) or 
(iii) of section 3(a)(34)(B) of the Securities Exchange Act of 1934 (15 
U.S.C. 78c(a)(34)(B)), that has filed a written notice of withdrawal 
with the Board or upon a finding that such transfer agent is no longer 
in existence or has ceased to do business as a transfer agent.
    (6) Proxy solicitation; financial statements. (i) To permit the 
mailing of proxy and other soliciting materials by a State member bank 
before the expiration of the time prescribed therein under Sec.  208.36 
of Regulation H (12 CFR 208.36).
    (ii) To permit the omission of financial statements from reports by 
a State member bank, or to require other financial statements in 
addition to, or in substitution for, the statements required therein 
under Sec.  208.36 of Regulation H (12 CFR 208.36).
    (7) Municipal securities dealers. Under section 23 of the 
Securities Exchange Act of 1934 (15 U.S.C. 78w).
    (i) To grant or deny requests for waiver of examination and waiting 
period requirements for municipal securities principals and 
representatives under Municipal Securities Rulemaking Board Rule G-3;

[[Page 54012]]

    (ii) To grant or deny requests for a determination that a natural 
person or municipal securities dealer subject to a statutory 
disqualification is qualified to act as a municipal securities 
representative or dealer under Municipal Securities Rulemaking Board 
Rule G-4;
    (iii) To approve or disapprove clearing arrangements under 
Municipal Securities Rulemaking Board Rule G-8, in connection with the 
administration of these rules for municipal securities dealers for 
which the Board is the appropriate regulatory agency under section 
3(a)(34) of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)).
    (8) Making reports available to SEC. To make available, upon 
request, to the Securities and Exchange Commission reports of 
examination of transfer agents, clearing agencies, and municipal 
securities dealers for which the Board is the appropriate regulatory 
agency for use by the Commission in exercising its supervisory 
responsibilities under the Act under section 17(c)(3) of the Securities 
Exchange Act of 1934 (15 U.S.C. 78q(c)(3)).
    (9) Issuing examination manuals, forms, and other materials. To 
issue examination or inspection manuals, registration, report, 
agreement, and examination forms, guidelines, instructions, and other 
similar materials for use in administering sections 7, 8, 15B, and 
17A(c) of the Securities Exchange Act of 1934 (15 U.S.C. 78g, 78h, 78o-
4, and 78q-1(c)).
    (10) Lists of OTC and foreign margin stocks. To approve issuance of 
the lists of OTC margin stocks and foreign margin stocks and add, omit, 
or remove any stock in circumstances indicating that such change is 
necessary or appropriate in the public interest under Sec.  207.6(d) of 
Regulation G (12 CFR 207.6(d)), Sec.  220.17(f) of Regulation T (12 CFR 
220.17(f)), or Sec.  221.7(d) of Regulation U (12 CFR 221.7(d)).
    (g) Golden parachute payments. With the concurrence of the General 
Counsel, to approve an application to make a golden parachute payment 
or enter into an agreement to make a golden parachute payment under 12 
CFR part 359.
    (h) Prompt corrective action. With the approval of the General 
Counsel, to take the following actions pursuant to prompt corrective 
action under the rules implementing section 38 of the Federal Deposit 
Insurance Act (12 U.S.C. 1831o) in connection with any institution or 
person, except a critically undercapitalized institution:
    (1) Capital categories, capital restoration plans, and 
discretionary supervisory actions pursuant to Sec. Sec.  208.42 through 
208.44 of Regulation H (12 CFR 208.42 through 208.44);
    (2) Notices and directives pursuant to Sec.  263.202 of the Board's 
Rules of Practice for Hearings (12 CFR 263.202);
    (3) Reclassification of a capital category based on criteria other 
than capital pursuant to Sec.  263.203 of the Board's Rules of Practice 
for Hearings (12 CFR 263.203); and
    (4) Dismissal of directors or senior officers pursuant to Sec.  
263.204 of the Board's Rules of Practice for Hearings (12 CFR 263.204).
    (i) Assessments for bank holding companies, savings and loan 
holding companies, and nonbank financial companies supervised by the 
Board. In consultation with the General Counsel, to take actions 
pursuant to Regulation TT (12 CFR part 246) to determine the elements 
of the assessment formula for each assessment period including the 
assessment rate, the amount of the assessment basis, and each company's 
total assessable assets; to determine the amount of assessment for each 
assessed company, including allowing for pro-rata adjustments, payment 
of a lesser amount than would otherwise be required pursuant to the 
reservation of authority, and responding to an appeal by revising the 
assessment amount; to notify the assessed companies of the assessment; 
and to publish information regarding calculation of the assessments for 
each assessment period (including a description of how the assessment 
basis was determined) on the Board's public website.
    (j) Capital plans. (1) To take the following actions (or to provide 
concurrence to the appropriate Reserve Bank, where appropriate):
    (i) To allow a bank holding company or savings and loan holding 
company to submit its capital plan after the 5th of January of a given 
year;
    (ii) To object, in whole or in part, to the capital plan or provide 
the bank holding company or savings and loan holding company with a 
notice of non-objection to the capital plan;
    (iii) To direct a bank holding company or savings and loan holding 
company to revise and resubmit its capital plan if:
    (A) The capital plan is incomplete;
    (B) There has been or will be a material change in the bank holding 
company's or savings and loan holding company's risk profile, financial 
condition, or corporate structure;
    (C) The stressed scenarios developed by the bank holding company or 
savings and loan holding company are not sufficiently stressed; or
    (D) The capital plan or bank holding company or savings and loan 
holding company raise any issues that would cause the Board or the 
Reserve Bank to object to the capital plan;
    (iv) To waive the requirement that a bank holding company or 
savings and loan holding company resubmit its entire capital plan with 
respect to those portions of the plan that are unchanged;
    (v) To extend or shorten the 30-day period for resubmission of a 
capital plan;
    (vi) To determine that a bank holding company or savings and loan 
holding company is required to obtain prior approval for a capital 
distribution that would result in a material adverse change to the 
organization's capital or liquidity structure or because earnings were 
materially underperforming projections;
    (vii) To notify a bank holding company or savings and loan holding 
company in writing that it may not take advantage of the prior approval 
exception for well-capitalized bank holding companies or savings and 
loan holding companies; or
    (viii) To approve or disapprove, within 30 days of receipt of 
receipt of a complete request, a proposed capital distribution; and
    (ix) To affirm or withdraw objection to a capital plan based on a 
bank holding company's or savings and loan holding company's written 
request to reconsider an objection to a capital plan.
    (2) With the concurrence of the Chair of the Committee on 
Supervision and Regulation, and after consultation with the Board and 
the Director of the Division of Financial Stability, to determine the 
content and timing of the public disclosure of the Board's decision to 
object or not object to a bank holding company's or savings and loan 
holding company's capital plan and the summary of the Board's analyses 
of that company, under Sec.  225.8 of Regulation Y (12 CFR 225.8).
    (3) Jointly with the Director of the Division of Financial 
Stability, with the concurrence of the Vice Chair for Supervision:
    (i) To provide a firm subject to the Board's capital plan rules 
with notice of its stress capital buffer requirement and an explanation 
of the results of the supervisory stress test pursuant to Sec. Sec.  
225.8(h)(1) of Regulation Y (12 CFR 115.8(h)(1)) and 238.170(h)(1) of 
Regulation LL (12 CFR 238.170(h)(1)); and
    (ii) To provide a firm subject to the Board's capital plan rules 
with its final stress capital buffer requirement and confirmation of 
its final planned capital distributions pursuant to

[[Page 54013]]

Sec. Sec.  225.8(h)(4)(i) of Regulation Y (12 CFR 225.8(h)(4)(i)) and 
238.170(h)(4)(i) of Regulation LL (12 CFR 238.170(h)(4)(i)).
    (k) Capital adequacy--(1) Delegations regarding the general 
provisions of subpart A of Regulation Q (12 CFR part 217, subpart A). 
(i) With the concurrence of the Chair of the Committee on Supervision 
and Regulation, and after consultation with the General Counsel:
    (A) To determine under Sec.  217.1(d)(2)(ii) of Regulation Q (12 
CFR 217.1(d)(2)(ii)) whether a capital element may be included in a 
company's common equity tier 1 capital, additional tier 1 capital, or 
tier 2 capital consistent with the loss absorption capacity of the 
element and in accordance with Sec.  217.20(e) of Regulation Q (12 CFR 
217.20(e)); and
    (B) To determine under the definition of ``financial institution'' 
in Sec.  217.2 of Regulation Q (12 CFR 217.2) whether a company is a 
financial institution based on its activities.
    (ii) After consultation with the General Counsel:
    (A) To require under Sec.  217.1(d)(1) of Regulation Q (12 CFR 
217.1(d)(1)) a company to hold an amount of regulatory capital greater 
than otherwise required under Regulation Q because the company's 
capital requirements under Regulation Q are not commensurate with the 
company's credit, market, operational or other risks;
    (B) To determine under Sec.  217.1(d)(2)(i) of Regulation Q (12 CFR 
217.1(d)(2)(i)) whether an element of capital must be excluded in whole 
or in part from capital because the capital element has characteristics 
or terms that diminish its ability to absorb losses, or otherwise 
presents safety and soundness concerns;
    (C) To require under Sec.  217.1(d)(3) of Regulation Q (12 CFR 
217.1(d)(3)) that a company assign a different risk-weighted asset 
amount to an exposure or deduct the amount of the exposure from its 
regulatory capital because the risk-weighted asset amount calculated 
under Regulation Q for the exposure is not commensurate with the risks 
associated with the exposure;
    (D) To determine under Sec.  217.1(d)(4) of Regulation Q (12 CFR 
217.1(d)(4)) whether the leverage exposure amount, or the amount 
reflected in a company's reported average total consolidated assets, 
for an on- or off-balance sheet exposure (under Sec.  217.10 of 
Regulation Q (12 CFR 217.10)) is inappropriate for the exposure(s) or 
the circumstances of the company, and, based on this determination, 
require the company to adjust this amount in the numerator and the 
denominator for purposes of the company's leverage ratio calculations;
    (E) To determine under Sec.  217.1(d)(5) of Regulation Q (12 CFR 
217.1(d)(5)) whether the risk-based capital treatment for an exposure, 
or the treatment provided to an entity that is not consolidated on a 
company's balance sheet, is commensurate with the risk of the exposure 
and the relationship of the company to the entity, and, based on this 
determination, require the company to treat the exposure or entity as 
if it were consolidated on the company's balance sheet; and
    (F) With respect to any deduction or limitation required under 
Regulation Q, to require under Sec.  217.1(d)(6) of Regulation Q (12 
CFR 217.1(d)(6)) a different deduction or limitation provided that such 
alternative deduction or limitation is commensurate with the company's 
risk and consistent with safety and soundness.
    (iii)(A) To determine under paragraph (5) of the definition of 
``distribution'' in Sec.  217.2 of Regulation Q (12 CFR 217.2) whether 
a transaction is in substance a distribution of capital;
    (B) To act on a request from a company under the definition of 
``eligible credit derivative'' in Sec.  217.2 of Regulation Q (12 CFR 
217.2) to find that a credit derivative (other than a credit default 
swap, nth-to-default swap, or total return swap) should be considered 
an eligible credit derivative;
    (C) To determine under the definition of ``main index'' in Sec.  
217.2 of Regulation Q (12 CFR 217.2) whether an index is a main index 
because the equities represented by the index have comparable 
liquidity, depth of market, and size of bid-ask spreads as equities in 
the Standard & Poor's 500 Index and FTSE All-World Index;
    (D) To determine under the definition of ``multilateral development 
bank'' in Sec.  217.2 of Regulation Q (12 CFR 217.2) whether a 
multilateral lending institution or regional development bank poses a 
comparable credit risk to other multilateral development banks;
    (E) To determine under the definition of ``qualifying central 
counterparty'' in Sec.  217.2 of Regulation Q (12 CFR 217.2) whether a 
central counterparty meets the requirements for qualification as a 
qualifying central counterparty;
    (F) To determine under paragraph (8) of the definition of 
``traditional securitization'' in Sec.  217.2 of Regulation Q (12 CFR 
217.2) whether a transaction is not a traditional securitization based 
on the transaction's leverage, risk profile, or economic substance; and
    (G) To determine under paragraph (9) of the definition of 
``traditional securitization'' in Sec.  217.2 of Regulation Q (12 CFR 
217.2) whether a transaction is a traditional securitization based on 
the transaction's leverage, risk profile, or economic substance.
    (2) Delegation regarding the capital ratio requirements and buffers 
in subpart B of Regulation Q (12 CFR part 217, subpart B). To act on a 
request under Sec.  217.11(a)(4)(iv) of Regulation Q (12 CFR 
217.11(a)(4)(iv)) to permit a company to make a capital distribution or 
discretionary bonus payment that would otherwise not be permissible.
    (3) Delegations regarding the definition of capital in subpart C of 
Regulation Q (12 CFR part 217, subpart C). (i) With the concurrence of 
the Chair of the Committee on Supervision and Regulation, and after 
consultation with the General Counsel, to act on a request from a 
company under Sec.  217.20(e)(1) of Regulation Q (12 CFR 217.20(e)(1)) 
to include a capital element in its common equity tier 1 capital, 
additional tier 1 capital, or tier 2 capital.
    (ii)(A) To determine under Sec.  217.20(c)(l)(v)(C) and 
(d)(l)(v)(C) of Regulation Q (12 CFR 217.20(c)(l)(v)(C) and 
(d)(l)(v)(C)) whether a company would continue to hold capital 
commensurate to its risk following the exercise of a call option;
    (B) To consult with the other banking agencies under Sec.  
217.20(e)(2) of Regulation Q (12 CFR 217.20(e)(2)) when considering 
whether a company may include a regulatory capital element in its 
common equity tier 1 capital, additional tier 1 capital, or tier 2 
capital;
    (C) To make publicly available under Sec.  217.20(e)(3) of 
Regulation Q (12 CFR 217.20(e)(3)) a decision that a regulatory capital 
element may be included in a company's common equity tier 1 capital, 
additional tier 1 capital, or tier 2 capital;
    (D) To determine under Sec.  217.22(a)(5)(i) of Regulation Q (12 
CFR 217.22(a)(5)(i)) whether the deduction of a defined benefit pension 
fund net asset is not required to the extent that the company has 
unrestricted and unfettered access to the assets in the fund;
    (E) To act on a request from a company under Sec.  217.22(b)(2)(iv) 
of Regulation Q (12 CFR 217.22(b)(2)(iv)) to change to its AOCI opt-out 
election following a merger, acquisition, or purchase transaction;
    (F) To act on a request from a company under Sec.  217.22(c)(4), 
(5), or (6) or (d)(2)(i)(C) of Regulation Q (12 CFR 217.22(c)(4), (5), 
or (6) or (d)(2)(i)(C)) not to deduct investments in the capital of an 
unconsolidated financial institution either:

[[Page 54014]]

    (1) To the extent the investment is related to a failed 
underwriting, or
    (2) If the financial institution is in distress and the investment 
is made for the purpose of providing financial support to the financial 
institution;
    (G) To act on a request from a company under Sec.  217.22(d)(1)(iv) 
or (d)(2)(iii) of Regulation Q (12 CFR 217.22(d)(1)(iv) or (d)(2)(iii)) 
to change its election whether to exclude DTAs and DTLs relating to 
adjustments made to common equity tier 1 capital;
    (H) To act on a request from a company under Sec.  217.22(e)(5) of 
Regulation Q (12 CFR 217.22(e)(5)) to change its preference regarding 
the manner in which it nets DTLs against specific assets subject to 
deduction;
    (I) To act on a request from a company under Sec.  
217.22(h)(2)(iii)(A) of Regulation Q (12 CFR 217.22(h)(2)(iii)(A)) to 
use a conservative estimate of the amount of its investment in its own 
capital instruments or the capital of an unconsolidated financial 
institution held through a position in an index; and
    (J) To determine under Sec.  217.22(h)(3)(iii)(C) of Regulation Q 
(12 CFR 217.22(h)(3)(iii)(C)) whether a company's internal control 
process is adequate.
    (iii)(A) To act on a company's request under Sec.  
217.20(b)(l)(iii), (c)(l)(vi), or (d)(l)(x) of Regulation Q (12 CFR 
217.20(b)(l)(iii), (c)(l)(vi), (d)(l)(x)) to redeem a security; and
    (B) To act on a company's request under Sec.  217.20(c)(l)(v)(A) or 
(d)(l)(v)(A) of Regulation Q (12 CFR 217.20(c)(l)(v)(A), (d)(l)(v)(A)) 
to exercise a call option.
    (4) Delegations regarding the standardized approach in subpart D of 
Regulation Q (12 CFR part 217, subpart D). (i) After consultation with 
the General Counsel, to determine under Sec.  217.35(d)(3)(i)(E) of 
Regulation Q (12 CFR 217.35(d)(3)(i)(E)) that a risk weight higher than 
20 percent for variable RW in formula KCCP is more 
appropriate based on the specific characteristics of the QCCP and its 
clearing members.
    (ii)(A) To determine under Sec.  217.35(d)(1) of Regulation Q (12 
CFR 217.35(d)(1)) whether there has been a material change in the 
financial condition of a CCP;
    (B) To act on a request under Sec.  217.35(d)(2) of Regulation Q 
(12 CFR 217.35(d)(2)) for a company to use a risk-weighted asset amount 
for default fund contributions to a CCP that is not QCCP other than a 
1,250 percent risk weight; and
    (C) In the case of a system-wide failure of a settlement or 
clearing system, or a CCP, to waive under Sec.  217.38(c) of Regulation 
Q (12 CFR 217.38(c)) risk-based capital requirements for unsettled and 
failed transactions.
    (iii)(A) To act on a request from a company under Sec.  217.37(c) 
of Regulation Q (12 CFR 217.37(c)) to use its own estimates of 
haircuts, including:
    (1) Acting on a request by a company under Sec.  217.37(c)(4)(i)(E) 
of Regulation Q (12 CFR 217.37(c)(4)(i)(E)) to make changes to the 
company's policies and procedures; and
    (2) Requiring a company under Sec.  217.37(c)(4)(i)(F) of 
Regulation Q (12 CFR 217.37(c)(4)(i)(F)) to use a different period of 
significant financial stress in the calculation of own estimates of 
haircuts; and
    (B) To determine under Sec.  217.41(c) of Regulation Q (12 CFR 
217.41(c)) whether or not a company has demonstrated a comprehensive 
understanding of the features of a securitization exposure.
    (5) Delegations regarding the advanced approaches risk-based 
capital rules in subpart E of Regulation Q (12 CFR part 217, subpart 
E). (i) With the concurrence of the Chair of the Committee on 
Supervision and Regulation, and after consultation with the General 
Counsel, to act on a request by a company under Sec.  217.121(c) and 
(d) of Regulation Q (12 CFR 217.121(c) and (d)) to use the advanced 
approaches to calculate its risk-based capital requirements and notify 
the company of the date that it must begin to do so if the action would 
not raise significant policy issues.
    (ii) After consultation with the General Counsel:
    (A) To require a company (that no longer meets the qualification 
requirements in subpart E of Regulation Q (12 CFR part 217, subpart E)) 
under Sec.  217.123(b)(3) of Regulation Q (12 CFR 217.123(b)(3)) to 
calculate its advanced approaches total risk-weighted assets with 
modifications determined by the Director if the Director determines 
that the advanced approaches total risk-weighted assets are not 
commensurate with the company's credit, market, operational, or other 
risk; and
    (B) To determine under Sec.  217.133(d)(3)(i) of Regulation Q (12 
CFR 217.133(d)(3)(i)) that a risk weight higher than 20 percent for 
variable RW in formula Kccp is more appropriate based on the 
specific characteristics of the QCCP and its clearing members.
    (iii)(A) To determine under Sec.  217.100(c)(1) of Regulation Q (12 
CFR 217.100(c)(1)) that not applying a provision of Regulation Q would, 
in all circumstances, unambiguously generate a risk-based capital 
requirement for each such exposure greater than that which would 
otherwise be required;
    (B) To determine that a non-U.S. subsidiary of a U.S. company may 
use the retail definition of default defined in a non-U.S. jurisdiction 
under the definition of ``default'' in Sec.  217.101 of Regulation Q 
(12 CFR 217.101);
    (C) To determine for purposes of the definition of eligible double 
default guarantor in Sec.  217.101 of Regulation Q (12 CFR 217.101) 
whether the guarantor is subject to consolidated supervision and 
regulation comparable to that imposed on U.S. depository institutions 
or securities broker-dealers;
    (D) To extend any of the following periods:
    (1) A company's parallel run start date under Sec.  217.121 of 
Regulation Q (12 CFR 217.121);
    (2) For up to an additional 12 months, the time in which a company 
may use subpart D of Regulation Q (12 CFR part 217, subpart D) to 
determine the risk-weighted asset amounts for a merged or acquired 
company's exposures under Sec.  217.124(a) of Regulation Q (12 CFR 
217.124(a)); and
    (3) For up to an additional 12 months, the time in which a company 
may use an acquired company's advanced systems to determine total risk-
weighted assets for the merged or acquired company's exposures under 
Sec.  217.124(b)(1) of Regulation Q (12 CFR 217.124(b)(1));
    (E) To assess compliance with any supervisory guidance on 
qualification requirements for purposes of Sec.  217.121(b)(1) of 
Regulation Q (12 CFR 217.121(b)(1));
    (F) To waive the requirement under Sec.  217.121(b)(2) of 
Regulation Q (12 CFR 217.121(b)(2)) that a company submit a parallel 
run implementation plan to the Board at least 60 days before it 
proposes to begin its parallel run;
    (G) To act on a request by a company under Sec.  
217.122(g)(2)(ii)(A)(1) of Regulation Q (12 CFR 
217.122(g)(2)(ii)(A)(1)) to use a historical observation period of less 
than five years for internal operational loss event data to address 
transitional situations, such as integrating a new business line;
    (H) To act on a request by a company under Sec.  
217.122(g)(2)(ii)(A)(3) of Regulation Q (12 CFR 
217.122(g)(2)(ii)(A)(3)) to refrain from collecting internal 
operational loss event data for individual operational losses below 
established dollar threshold amounts;
    (I) To act on a request by a company under Sec.  
217.122(g)(3)(i)(D) of Regulation Q (12 CFR 217.122(g)(3)(i)(D)) to use 
internal estimates of dependence among

[[Page 54015]]

operational losses across and within units of measure;
    (J) To act on a request by a State member bank under Sec.  
217.122(g)(3)(ii) of Regulation Q (12 CFR 217.122(g)(3)(ii)) to 
generate an estimate of the company's operational risk exposure using 
an alternative approach to that specified in Sec.  217.122(g)(3)(i) of 
Regulation Q (12 CFR 217.122(g)(3)(i));
    (K) To determine under Sec.  217.123(b) of Regulation Q (12 CFR 
217.123(b)) that a company that has conducted a satisfactory parallel 
run fails to comply with the qualification requirements in Sec.  
217.122 of Regulation Q (12 CFR 217.122) and notify the company in 
writing of the determination;
    (L) To determine under Sec.  217.123(b) of Regulation Q (12 CFR 
217.123(b)) whether a company's plan to return to compliance with the 
qualification requirements in Sec.  217.122 of Regulation Q (12 CFR 
217.122) is satisfactory;
    (M) To establish requirements under Sec.  217.131(e)(l)(i) of 
Regulation Q (12 CFR 217.131(e)(l)(i)) for the estimation of a margin 
loan's probability of default (``PD'') and loss given default 
(``LGD'');
    (N) In the case of a system-wide failure of a settlement or 
clearing system, or a central counterparty, to waive under Sec.  
217.136(c) of Regulation Q (12 CFR 217.136(c)) risk-based capital 
requirements for unsettled and failed transactions; and
    (O) To act on a request by a company under Sec.  217.161(b)(2) of 
Regulation Q (12 CFR 217.161(b)(2)) to use operational risk mitigants 
other than insurance.
    (iv)(A) To act on a request for approval of any model or optional 
approach available under subpart E of Regulation Q (12 CFR part 217, 
subpart E), including without limitation:
    (1) Any counterparty credit risk model or methodology (own 
estimates of haircuts, simple VaR methodology, internal models 
methodology, or advanced credit valuation adjustment (``CVA'') 
approach) under Sec. Sec.  217.122(d) and 217.132 of Regulation Q (12 
CFR 217.122(d) and 217.132), including:
    (i) Acting on a request by a company under Sec.  
217.132(b)(2)(iii)(A)(5) of Regulation Q (12 CFR 
217.132(b)(2)(iii)(A)(5)) to make changes to the company's policies and 
procedures;
    (ii) Requiring a company under Sec.  217.132(b)(2)(iii)(A)(6) of 
Regulation Q (12 CFR 217.132(b)(2)(iii)(A)(6)) to use a different 
period of significant financial stress in the calculation of own 
internal estimates for haircuts;
    (iii) Acting on a request by a company under Sec.  217.132(d)(1) 
introductory text and (d)(1)(iv) of Regulation Q (12 CFR 217.132(d)(1) 
introductory text and (d)(1)(iv)) to use the internal models 
methodology, cease using the internal models methodology for a 
transaction type, or make a material change to its internal model;
    (iv) Acting on a request by a company under Sec.  217.132(d)(2)(iv) 
and (d)(10) of Regulation Q (12 CFR 217.132(d)(2)(iv) and (d)(10)) to 
use a more conservative estimate of exposure at default (``EAD'');
    (v) Determining that a company must set a higher ``alpha'' under 
Sec.  217.132(d)(2)(iv)(C) of Regulation Q (12 CFR 
217.132(d)(2)(iv)(C)) based on the company's specific characteristics 
of and counterparty credit risk or model performance;
    (vi) Acting on a request by a company under Sec.  217.132(d)(3) of 
Regulation Q (12 CFR 217.132(d)(3)) to calculate the distributions of 
exposures upon which the EAD calculation is based;
    (vii) Requiring a company under Sec.  217.132(d)(3)(viii) of 
Regulation Q (12 CFR 217.132(d)(3)(viii)) to modify its stress 
calibration to better reflect actual historic losses of the portfolio;
    (viii) Acting on a request by a company under Sec.  
217.132(d)(5)(i) of Regulation Q (12 CFR 217.132(d)(5)(i)) to include 
the effect of a collateral agreement within an internal model used to 
calculate EAD;
    (ix) Requiring a company under Sec.  217.132(d)(5)(iii)(C) of 
Regulation Q (12 CFR 217.132(d)(5)(iii)(C)) to set a longer holding 
period (for margin period of risk for a netting set that is subject to 
a collateral agreement) if the Director determines that a longer period 
is appropriate due to the nature, structure, or characteristics of the 
transaction or is commensurate with the risks associated with the 
transaction;
    (x) Acting on a request by a company under Sec.  217.132(d)(6) of 
Regulation Q (12 CFR 217.132(d)(6)) to calculate alpha as the ratio of 
economic capital from a full simulation of counterparty exposure across 
counterparties that incorporates a joint simulation of market and 
credit risk factors (numerator) and economic capital based on expected 
positive exposure (``EPE'') (denominator), subject to a floor of 1.2;
    (xi) Acting on a request by a company under Sec.  217.132(e) of 
Regulation Q (12 CFR 217.132(e)) to calculate its CVA risk-weighted 
asset amounts for a class of counterparties using the advanced CVA 
approach;
    (xii) Acting on a request by a company under Sec.  
217.132(e)(6)(ii)(D) of Regulation Q (12 CFR 217.132(e)(6)(ii)(D)) to 
use a conservative estimate when determining LGDMKT; and
    (xiii) Requiring a company under Sec.  217.132(e)(6)(v)(B) of 
Regulation Q (12 CFR 217.132(e)(6)(v)(B)) to use a different period of 
significant financial stress in the calculation of the 
CVAStressed measure;
    (2) Any model or approach relating to cleared transactions under 
Sec. Sec.  217.122(d) and 217.133 of Regulation Q (12 CFR 217.122(d) 
and 217.133), including:
    (i) Requiring under Sec.  217.133(d)(1) of Regulation Q (12 CFR 
217.133(d)(1)) a company that is a clearing member to determine the 
risk-weighted asset amount for a default fund contribution to a CCP 
more frequently than quarterly if in the opinion of the Director of the 
Division of Supervision and Regulation, there is a material change in 
the financial condition of the CCP; and
    (ii) Acting on a request under Sec.  217.133(d)(2) of Regulation Q 
(12 CFR 217.133(d)(2)) for a company to use a risk-weighted asset 
amount for default fund contributions to a CCP that is not QCCP other 
than a 1,250 percent risk weight;
    (3) Any model or approach relating to the double default treatment 
under Sec. Sec.  217.122(e) and 217.135 of Regulation Q (12 CFR 
217.122(e) and 217.135), including acting on a request by a company 
under Sec.  217.135(a)(6) of Regulation Q (12 CFR 217.135(a)(6)) to 
implement a process to detect excessive correlation between the 
creditworthiness of the obligor of a hedged exposure and a protection 
provider;
    (4) A company's own internal estimates of market price volatility 
and foreign exchange volatility under Sec.  217.145(b)(4) of Regulation 
Q (12 CFR 217.145(b)(4)); and
    (5) The internal models approach for equity exposures under 
Sec. Sec.  217.122(f) and 217.153(b) of Regulation Q (12 CFR 217.122(f) 
and 217.153(b));
    (B) To determine under Sec.  217.131(e)(4) of Regulation Q (12 CFR 
217.131(e)(4)) whether a portfolio of exposures is or is not material; 
and
    (C) To assess for purposes of Sec.  217.141(c)(1) of Regulation Q 
(12 CFR 217.141(c)(1)) whether a company has a comprehensive 
understanding of the features of a securitization exposure that would 
materially affect the performance of the exposure.
    (6) Delegations regarding the market risk rule in subpart F of 
Regulation Q (12 CFR part 217, subpart F). (i) With the concurrence of 
the Chair of the Committee on Supervision and Regulation, and after 
consultation with the General Counsel, to act on a request by a company 
to be excluded from the market risk rule under Sec.  217.201(b)(3) of 
Regulation Q (12 CFR 217.201(b)(3)) if

[[Page 54016]]

the action would not raise significant policy issues.
    (ii) After consultation with the General Counsel, to require a 
company:
    (A) Under Sec.  217.201(c)(1) of Regulation Q (12 CFR 
217.201(c)(1)) to hold an amount of capital greater than otherwise 
required under subpart F of Regulation Q (12 CFR part 217, subpart F) 
upon a determination that the company's capital requirement for market 
risk as calculated under Regulation Q is not commensurate with the 
market risk of the company's covered positions;
    (B) Under Sec.  217.201(c)(2) of Regulation Q (12 CFR 
217.201(c)(2)) to assign a different risk-based capital requirement to 
one or more covered positions or portfolios that more accurately 
reflects the risk of the positions or portfolios; and
    (C) Under Sec.  217.201(c)(3) of Regulation Q (12 CFR 
217.201(c)(3)) to calculate risk-based capital requirements for 
specific positions or portfolios under subpart F of Regulation Q (12 
CFR part 217, subpart F), or under subparts D or E of Regulation Q (12 
CFR part 217, subparts D or E), as appropriate, to more accurately 
reflect the risks of the positions.
    (iii) To act regarding any model approval, disapproval, rescission, 
or supervision under subpart F of Regulation Q (12 CFR part 217, 
subpart F), including the authority to:
    (A) Exclude from trading assets or liabilities structural foreign 
currency positions of a company or any hedge of a covered position that 
is outside the scope of the company's hedging strategy under Sec.  
217.202 of Regulation Q (12 CFR 217.202);
    (B) Act on a request from a company under Sec.  217.203(c)(1) of 
Regulation Q (12 CFR 217.203(c)(1)) to approve its internal model(s) to 
calculate its risk-based capital requirement;
    (C) Rescind approval under Sec.  217.203(c)(3) of Regulation Q (12 
CFR 217.203(c)(3)) of a company's internal model(s) to calculate its 
risk-based capital requirement;
    (D) Act on a request from a company under Sec.  
217.204(a)(2)(vi)(B) of Regulation Q (12 CFR 217.204(a)(2)(vi)(B)) to 
use alternative techniques to measure the risk of de minimis exposures;
    (E) Act on a request from a company under Sec.  217.204(b)(2) of 
Regulation Q (12 CFR 217.204(b)(2)) to use a different adjustment of 
its VaR-based measure;
    (F) Review and determine the appropriateness of a company's 
omission of risk factors under Sec.  217.205(a)(4) of Regulation Q (12 
CFR 217.205(a)(4)) and the use of proxies under Sec.  217.205(a)(5) of 
Regulation Q (12 CFR 217.205(a)(5));
    (G) Review and determine under Sec.  217.205(b)(1) of Regulation Q 
(12 CFR 217.205(b)(1)) the appropriateness of any conversions of VaR to 
other holding periods by a company;
    (H) Review and determine under Sec.  217.205(b)(2)(ii) of 
Regulation Q (12 CFR 217.205(b)(2)(ii)) the appropriateness of a 
company's alternative weighting schemes;
    (I) Approve or disapprove under Sec.  217.205(c) of Regulation Q 
(12 CFR 217.205(c)) any requirements relating to a company's division 
of subportfolios;
    (J) Approve or disapprove under Sec.  217.206(b)(3) of Regulation Q 
(12 CFR 217.206(b)(3)) any changes to a company's policies and 
procedures that describe how the company determines the period of 
significant financial stress used to calculate its stressed VaR-based 
measure;
    (K) Require a company under Sec.  217.206(b)(4) of Regulation Q (12 
CFR 217.206(b)(4)) to use a different period of significant financial 
stress in the calculation of the stressed VaR-based measure;
    (L) Act on a request by a company under Sec.  217.208(a) of 
Regulation Q (12 CFR 217.208(a)) to include certain portfolios of 
equity positions in its incremental risk model;
    (M) Act on a request by a company under Sec.  217.209(a)(1) of 
Regulation Q (12 CFR 217.209(a)(1)) to use the comprehensive risk 
approach for one or more portfolios of correlation trading positions 
and the related approval under Sec.  217.209(a)(2)(ii) of Regulation Q 
(12 CFR 217.209(a)(2)(ii)) regarding a company's comprehensive risk 
capital requirement;
    (N) Determine under Sec.  217.210(e)(3) of Regulation Q (12 CFR 
217.210(e)(3)) whether an index is a main index because the equities 
represented by the index have comparable liquidity, depth of market, 
and size of bid-ask spreads as equities in the Standard & Poor's 500 
Index and FTSE All-World Index; and
    (O) Determine under Sec.  217.210(f)(1) of Regulation Q (12 CFR 
217.210(f)(1)) whether or not a company has demonstrated a 
comprehensive understanding of the features of a securitization 
exposure.
    (7) Delegations of Authority under Basel I-based Capital Guidelines 
(Appendix A to Regulation Y, 12 CFR part 225). (i) To approve under 
section II.A.l.c.ii.(2) of Appendix A to Regulation Y, 12 CFR part 225, 
a bank or bank holding company's redemption of perpetual preferred 
stock; and
    (ii) To approve under section II.A.2. of Appendix A to Regulation 
Y, 12 CFR part 225, a bank or bank holding company's redemption of 
subordinated debt or mandatorily convertible securities prior to the 
stated maturity.
    (l) Concentration Limit Actions (Regulation XX (12 CFR part 251)). 
(1) To approve requests from financial companies seeking to use an 
accounting standard or method of estimation other than GAAP to 
calculate and report liabilities pursuant to section 14 of the Bank 
Holding Company Act (12 U.S.C. 1852) and Regulation XX (12 CFR part 
251);
    (2) To calculate and publish total financial sector liabilities for 
the preceding calendar year and the average of financial sector 
liabilities for the preceding two calendar years, for use in 
calculating whether a firm exceeds 10 percent of the liabilities of all 
financial firms in the United States pursuant to section 14 of the Bank 
Holding Company Act (12 U.S.C. 1852); and
    (3) To provide prior written consent for purposes of section 14 of 
the Bank Holding Company Act (12 U.S.C. 1852) to a financial company to 
consummate an acquisition of a de minimis transaction, to the extent 
that the transaction otherwise meets all other criteria for delegated 
action related to financial, managerial, convenience and needs, and 
other review factors.
    (m) Savings and loan holding companies. (1) With concurrence of the 
General Counsel:
    (i) To extend the time limits in, or otherwise modify, an agreement 
entered into by a savings and loan holding company pursuant to Sec.  
238.66 of Regulation LL (12 CFR 238.66).
    (ii) To determine that publication of an agreement entered into by 
a savings and loan holding company pursuant to Sec.  238.66 of 
Regulation LL (12 CFR 238.66) would be contrary to the public interest 
under the publication requirements of the Federal Deposit Insurance Act 
(12 U.S.C. 1811 et seq.).
    (iii) To act on requests for exemptions or otherwise make 
determinations under section 11 of the Home Owners' Loan Act (12 U.S.C. 
1468), as implemented in Regulation W (12 CFR part 223), to the same 
extent authorized with respect to insured depository institutions and 
their affiliates and bank holding companies.
    (2) With the Director of the Division of Consumer and Community 
Affairs, to designate the responsible Reserve Bank of a savings and 
loan holding company when the standard delegation would not result in 
an efficient allocation of supervisory resources or would not otherwise 
be appropriate.
    (n) Swaps margin and swaps push-out. To approve internal margin 
models for entities for which the Board is the

[[Page 54017]]

prudential regulator, in accordance with Sec.  237.8 of Regulation KK 
(12 CFR 237.8).
    (o) Certain determinations under Regulations LL, YY, and QQ. In 
consultation with the General Counsel, to:
    (1) Determine that an asset meets the criteria to be a highly 
liquid asset under the Board's prudential standards in Regulation LL 
(12 CFR 238.124(b)(3)(i)) and Regulation YY (12 CFR 252.35(b)) to the 
extent that such determination is consistent with the criteria 
specified in such regulations and does not raise any significant legal, 
policy, or supervisory concerns;
    (2) Determine that a foreign banking organization may comply with 
the requirements in Regulation YY (12 CFR 252.3(c)) through a 
subsidiary to the extent that such determination is consistent with the 
criteria specified in Regulation YY and does not raise any significant 
legal, policy or supervisory concerns; and
    (3) Identify which holding company in a multi-tiered holding 
company will be a covered company under Regulation QQ (12 CFR part 243) 
to the extent such identification is consistent with the criteria 
specified in Regulation QQ (12 CFR 243.2) and does not raise any 
significant legal, policy, or supervisory concerns.
    (p) Approving certain requests under the Capital Rule (Regulation 
Q, 12 CFR part 217) related to the exposure amount of derivative 
contracts. To the extent that the determination or request does not 
raise any significant legal, policy, or supervisory issue:
    (1) To act on a request under Sec.  217.34(f) of Regulation Q (12 
CFR 217.34(f)) as to whether a holding period greater than 5 days is 
appropriate for variable H due to the nature, structure, or 
characteristics of the transaction or that is commensurate with the 
risks associated with the transaction;
    (2) To act on a request under Sec.  217.132(c)(1) of Regulation Q 
(12 CFR 217.132(c)(1)) from a banking organization to change its 
election between the use of the standardized approach to counterparty 
credit risk under Sec.  217.132(c)(5) of Regulation Q (12 CFR 
217.132(c)(5)) and the internal models methodology under Sec.  
217.132(d) of Regulation Q (12 CFR 217.132(d)) for its derivative 
transactions;
    (3) To require under Sec.  217.132(c)(2)(iii)(H) of Regulation Q 
(12 CFR 217.132(c)(2)(iii)(H)) that a banking organization include a 
derivative contract in multiple hedging sets if the risk of the 
derivative contract materially depends on more than one of interest 
rate, exchange rate, credit, equity, or commodity risk factors;
    (4) To act on a request under Sec.  217.132(d)(10) of Regulation Q 
(12 CFR 217.132(d)(10)) from a banking organization to use a more 
conservative estimate of EAD for purposes of the internal models 
methodology;
    (5) To require under Sec.  217.133(d)(1) of Regulation Q (12 CFR 
217.133(d)(1)) that a banking organization determine the risk-weighted 
asset amount for its default fund contribution to a central 
counterparty (CCP) on the basis that there has been a material change 
in the financial condition of the CCP;
    (6) To act on a request under Sec.  217.133(d)(2) of Regulation Q 
(12 CFR 217.133(d)(2)) from a banking organization to use a risk-
weighted asset amount for a default fund contribution to a CCP that is 
not a qualifying central counterparty (QCCP) other than 1,250 percent 
risk weight; and
    (7) To act on a request under Sec.  217.133(d)(6)(vi) of Regulation 
Q (12 CFR 217.133(d)(6)(vi)) from a banking organization to determine 
the risk-weighted asset amount for a default fund contribution to a 
QCCP according to Sec.  217.35(d)(3)(ii) (12 CFR 217.35(d)(3)(ii)) 
rather than Sec.  217.133(d) (12 CFR 217.133(d)).
    (q) Insurance Policy Advisory Committee. To organize and administer 
the Insurance Policy Advisory Committee (``IPAC''), including by 
publishing future requests for IPAC applications in the Federal 
Register.


Sec.  265.8  Functions delegated to the Director of the Division of 
Consumer and Community Affairs.

    The Director of the Division of Consumer and Community Affairs (or 
the Director's delegatee) is authorized:
    (a) Examination and enforcement activities. For the consumer 
protection and consumer affairs statutes and regulations for which the 
Board has supervisory and enforcement responsibility, including but not 
limited to the Truth in Lending Act, Home Mortgage Disclosure Act, 
Community Reinvestment Act, Equal Credit Opportunity Act, Fair Housing 
Act, and the Federal Trade Commission Act's prohibition on unfair and 
deceptive acts and practices:
    (1) To oversee policy development regarding compliance by State 
member banks and other supervised entities, including by establishing 
criteria for the execution of examination and enforcement activities 
delegated to the Reserve Banks and monitoring those activities; and
    (2) To issue examination or inspection manuals; report, agreement, 
and examination forms; examination procedures, guidelines, 
instructions, and other similar materials.
    (b) Community Advisory Council. To call meetings of and consult 
with the Community Advisory Council, approve the agenda for such 
meetings, publish Federal Register notices soliciting Community 
Advisory Council nominations from the public to assist in the selection 
of prospective members, and accept any resignations from Community 
Advisory Council members.
    (c) Determining inconsistencies between State and Federal laws. To 
determine whether a State law is inconsistent with the following 
Federal acts and regulations to the extent that the laws are applicable 
to motor vehicle dealers, as defined in section 1029 of the Dodd-Frank 
Wall Street Reform and Consumer Protection Act (12 U.S.C. 5519):
    (1) Sections 111, 171(a) and 186(a) of the Truth in Lending Act (15 
U.S.C. 1610(a), 1666j(a), 1667e(a)) and Sec. Sec.  226.28 of Regulation 
Z (12 CFR 226.28) and 213.9 of Regulation M (12 CFR 213.9);
    (2) Section 919 of the Electronic Fund Transfer Act (15 U.S.C. 
1693q), Sec.  205.12 of Regulation E (12 CFR 205.12); and
    (3) Section 705(f) of the Equal Credit Opportunity Act (15 U.S.C. 
1691d(f) and Sec.  202.11 of Regulation B (12 CFR 202.11).
    (d) Interpreting the Fair Credit Reporting Act. To issue 
interpretations pursuant to section 621(e) of the Fair Credit Reporting 
Act (15 U.S.C. 1681s(e));
    (e) [Reserved]
    (f) Community Reinvestment Act determinations. To make 
determinations, pursuant to section 804 of the Community Reinvestment 
Act of 1977 (12 U.S.C. 2903), approving or disapproving:
    (1) Strategic plans and any amendments thereto pursuant to Sec.  
228.27(g) and (h) of Regulation BB (12 CFR 228.27(g) and (h)); and
    (2) Requests for designation as a wholesale or limited purpose bank 
or the revocation of such designation, pursuant to Sec.  228.25(b) of 
Regulation BB (12 CFR 228.25(b)).
    (g) Public hearings. To conduct hearings or other proceedings 
required or permitted by law, concerning consumer law or other matters 
within the responsibilities of the Division of Consumer and Community 
Affairs, in consultation with other interested divisions of the Board 
where appropriate.
    (h) Designation of responsible Reserve Bank for savings and loan 
holding companies. With the Director of the

[[Page 54018]]

Division of Supervision and Regulation, to designate the responsible 
Reserve Bank of a savings and loan holding company when the standard 
designation would not result in an efficient allocation of supervisory 
resources or would not otherwise be appropriate.


Sec.  265.9  Functions delegated to the Director of the Division of 
International Finance.

    The Director of the Division of International Finance (or the 
Director's delegatee) is authorized:
    (a) Establishment of foreign accounts. To approve the establishment 
of foreign accounts and the terms of any account-related agreements 
with the Federal Reserve Bank of New York under section 14(e) of the 
Federal Reserve Act (12 U.S.C. 358).
    (b) [Reserved]


Sec.  265.10  Functions delegated to the Director of the Division of 
Monetary Affairs.

    The Director of the Division of Monetary Affairs (or the Director's 
delegatee) is authorized:
    (a) Term Deposit Facility (TDF) test operations. With the 
concurrence of the General Counsel, and in consultation with the Chair 
if feasible, to adjust the terms and conditions of individual TDF test 
operations that raise significant technical or operational issues, 
including but not limited to the authority to:
    (1) Delay the open of a TDF operation;
    (2) Extend the close of a TDF operation;
    (3) Reschedule a TDF operation; and
    (4) Delay the announcement of TDF operation results.
    (b) Regulation D. With the concurrence of the General Counsel, to 
approve the annual indexation of the reserve requirement exemption, low 
reserve tranche, nonexempt deposit cutoff, and reduced reporting limit 
amounts under Regulation D (12 CFR part 204), so long as no change is 
proposed to any of the formulas by which these amounts are calculated.


Sec.  265.11  Functions delegated to the Director of the Division of 
Reserve Bank Operations and Payment Systems.

    The Director of the Division of Reserve Bank Operations and Payment 
Systems (or the Director's delegatee) is authorized:
    (a) Designated financial market utilities. (1) To issue a notice of 
no objection to a designated financial market utility relating to an 
advance notice of proposed material change submitted under section 
806(e) of the Dodd-Frank Act (12 U.S.C. 5465(e)) and section 234.4 of 
Regulation HH (12 CFR 234.4).
    (2) To extend the review period for proposed changes that raise 
novel or complex issues and to request additional information from the 
designated financial market utility for consideration of the notice.
    (b) Regulation II. (1) In consultation with the Director of the 
Division of Supervision and Regulation and the General Counsel, to 
approve the publication of annual lists of institutions that fall above 
and below the small issuer exemption asset threshold under Regulation 
II (12 CFR part 235).
    (2) In consultation with the General Counsel, to approve the 
publication of annual lists of the average interchange fees each 
network provides to non-exempt and exempt issuers.


Sec.  265.12  Functions delegated to the Secretary of the Federal Open 
Market Committee.

    The Secretary of the Federal Open Market Committee (or the Deputy 
Secretary in the Secretary's absence) is authorized:
    (a) Records of policy actions. To approve for inclusion in the 
Board's Annual Report to Congress, records of policy actions of the 
Federal Open Market Committee.
    (b) [Reserved]


Sec.  265.13  Functions delegated to the Director of the Division of 
Financial Stability.

    The Director of the Division of Financial Stability (or the 
Director's delegatee) is authorized:
    (a) Bank holding companies; savings and loan holding companies; 
financial holding companies; change in bank control; mergers--(1) 
Stress tests. (i) Jointly with the Director of the Division of 
Supervision and Regulation, with the concurrence of the Chair of the 
Committee on Supervision and Regulation:
    (A) To develop and issue scenarios, including, but not limited to, 
the baseline scenario and the severely adverse scenario, that the Board 
would use to conduct analyses under Sec.  238.132 of Regulation LL (12 
CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 252.44) and that 
a company would use to conduct its stress tests under Sec.  238.143 of 
Regulation LL (12 CFR 238.143) or Sec.  252.14 or Sec.  252.54 of 
Regulation YY (12 CFR 252.14 or 252.54), as appropriate, provided that 
no significant policy issues are raised; and
    (B) To develop and issue additional scenarios or additional 
components for use in the severely adverse scenario under Sec.  
238.132(b) and 238.143(b)(2) and (3) of Regulation LL (12 CFR 
238.132(b) and 238.143(b)(2) and (3)), and Sec. Sec.  252.14(b)(2) and 
(3), 252.44(b), and 252.54(b)(2) and (3) of Regulation YY (12 CFR 
252.14(b)(2) and (3), 252.44(b), and 252.54(b)(2) and (3)), that the 
Board would use to conduct analyses under Sec.  238.132 of Regulation 
LL (12 CFR 238.132) or Sec.  252.44 of Regulation YY (12 CFR 225.44) 
and that a company would use to conduct its stress tests under Sec.  
238.143 of Regulation LL (12 CFR 238.143) or Sec.  252.14 or Sec.  
252.54 of Regulation YY (12 CFR 252.14 or 252.54), as appropriate, 
provided that no significant policy issues are raised;
    (2) [Reserved]
    (b) Capital plans. (1) Jointly with the Director of the Division of 
Supervision and Regulation, with the concurrence of the Vice Chair for 
Supervision:
    (i) To provide a firm subject to the Board's capital plan rules 
with notice of its stress capital buffer requirement and an explanation 
of the results of the supervisory stress test pursuant to Sec. Sec.  
225.8(h)(1) of Regulation Y (12 CFR 115.8(h)(1)) and 238.170(h)(1) of 
Regulation LL (12 CFR 238.170(h)(1)); and
    (ii) To provide a firm subject to the Board's capital plan rules 
with its final stress capital buffer requirement and confirmation of 
its final planned capital distributions pursuant to Sec. Sec.  
225.8(h)(4)(i) of Regulation Y (12 CFR 225.8(h)(4)(i)) and 
238.170(h)(4)(i) of Regulation LL (12 CFR 238.170(h)(4)(i)).
    (2) [Reserved]


Sec. Sec.  265.14-265.19  [Reserved]


Sec.  265.20  Functions delegated to Federal Reserve Banks.

    Except as otherwise provided in this section, each Federal Reserve 
Bank is authorized as to a member bank or other indicated organization 
for which the Reserve Bank is responsible for receiving applications or 
registration statements or to take other actions as indicated:
    (a) Procedure--(1) Member bank affiliate's reports. To extend the 
time for good cause shown, within which an affiliate of a State member 
bank must file reports under section 9(17) of the Federal Reserve Act 
(12 U.S.C. 334).
    (2) Edge corporation's divestiture of stock. To extend the time in 
which an Edge Act corporation must divest itself of stock acquired in 
satisfaction of a debt previously contracted under section 25A(7) of 
the Federal Reserve Act (12 U.S.C. 615).
    (3) Edge corporation's corporate existence. To extend the period of 
corporate existence of an Edge

[[Page 54019]]

corporation under section 25A(20) of the Federal Reserve Act (12 U.S.C. 
628).
    (4) Bank holding company and savings and loan holding company 
registration statement. To extend the time within which a bank holding 
company or savings and loan holding company must file a registration 
statement under section 5(a) of the Bank Holding Company Act (12 U.S.C. 
1844(a)) or section 10(b) of the Home Owners' Loan Act (12 U.S.C. 
1467a(b)).
    (5) Bank holding company divestiture of nonbanking interests. To 
extend the time within which a bank holding company must divest itself 
of interests in nonbanking organizations under section 4(a) of the Bank 
Holding Company Act (12 U.S.C. 1843(a)).
    (6) Bank holding company divestiture of DPC interests. To extend 
the time within which a bank holding company or any of its subsidiaries 
must divest itself of interests acquired in satisfaction of a debt 
previously contracted:
    (i) Under section 4(c)(2) of the Bank Holding Company Act (12 
U.S.C. 1843(c)(2)) or Sec.  225.22(c)(1) of Regulation Y (12 CFR 
225.22(c)(1)); or
    (ii) Under sections 2(a)(5)(D) and 3(a) of the Bank Holding Company 
Act (12 U.S.C. 1841(a)(5)(D) and 1842(a)).
    (7) Member bank's surrender of Reserve Bank stock upon withdrawal 
from membership. To extend the time within which a member bank that has 
given notice of intention to withdraw from membership must surrender 
its Federal Reserve Bank stock and its certificate of membership under 
Sec.  209.3(e) of Regulation H (12 CFR 209.3(e)).
    (8) Members bank's reports of condition. To extend the time for 
publication of reports of condition under Regulation H (12 CFR part 
208) for good cause shown.
    (9) Bank holding company's and savings and loan holding company's 
annual reports. To grant to a bank holding company or savings and loan 
holding company a 90-day extension of time in which to file an annual 
report, and for good cause shown grant an additional extension of time 
not to exceed 90 days under section 5(c) of the Bank Holding Company 
Act (12 U.S.C. 1844(c)) or section 10(b)(2) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(b)(2)).
    (10) Regulation K; divestiture of impermissible interests. To 
extend the time within which an investor, under Sec.  211.8(e) and (f) 
of Regulation K (12 CFR 211.8(e) and (f)), must divest of investments 
in entities engaged in impermissible activities or interests acquired 
to prevent a loss upon a debt previously contracted in good faith.
    (11) Bank holding company's or savings and loan holding company's 
acquisition of shares, opening new bank, consummating merger. To extend 
the time within which a bank holding company or savings and loan 
holding company may acquire shares, open a new bank to be acquired, or 
consummate a merger in connection with an application approved by the 
Board, if no material change relevant to the proposal has occurred 
since its approval.
    (12) Member bank's establishing domestic or foreign branch; Edge or 
agreement corporation's establishing branch or agency. To extend the 
times within which:
    (i) A member bank may establish a domestic branch;
    (ii) A member bank may establish a foreign branch; or
    (iii) An Edge or agreement corporation may establish a branch or 
agency, if no material change has occurred in the bank's (or 
corporation's) general condition since the application was approved.
    (13) Purchase of stock by Edge or agreement corporation, member 
bank, or bank holding company. To extend the time within which an Edge 
or agreement corporation, member bank, or a bank holding company may 
accomplish a purchase of stock if no material change has occurred in 
the general condition of the corporation, the member bank, or bank 
holding company since such authorization under sections 25 or 25A of 
the Federal Reserve Act or section 4(c)(13) of the Bank Holding Company 
Act (12 U.S.C. 615, 628, 1843(c)(13)).
    (14) Federal Reserve membership. To extend the time within which 
Federal Reserve membership must be accomplished, if no material change 
has occurred in the bank's general condition since the application was 
approved.
    (15) Enforcement actions; written agreements; cease and desist 
orders. With the concurrence of the Director of the Division of 
Supervision and Regulation and the General Counsel:
    (i) To enter into a written agreement with a bank holding company 
or any nonbanking subsidiary thereof, with a savings and loan holding 
company or any subsidiary thereof (other than a savings association), 
with a State member bank, with a foreign bank that has elected to be 
treated as a financial holding company, or with any person or entity 
subject to the Board's supervisory jurisdiction under section 8(b) of 
the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) concerning the 
prevention or correction of an unsafe or unsound practice in conducting 
the business of the bank holding company or its nonbanking subsidiary, 
savings and loan holding company or its subsidiary (other than a 
savings association), or State member bank, or foreign bank that has 
elected to be treated as a financial holding company, or other entity, 
or concerning the correction or prevention of any violation of law, 
rule, or regulation, including section 4(m) of the Bank Holding Company 
Act (12 U.S.C. 1843(m)), or any condition imposed in writing by the 
Board in connection with the granting of any application or other 
request by the bank or company; and
    (ii) To stay, modify, terminate, or suspend an agreement entered 
into pursuant to this paragraph (a)(15), other than to extend time 
limits in a corrective agreement with a financial institution under 
section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)).
    (iii) To stay, modify, terminate, or suspend an outstanding cease 
and desist order that has become final pursuant to 12 U.S.C. 1818(b). 
Any agreement authorized under this paragraph may, by its terms, be 
enforceable to the same extent and in the same manner as an effective 
and outstanding cease and desist order that has become final pursuant 
to 12 U.S.C. 1818(b).
    (16) Appointment of assistant Federal Reserve agents. To approve 
the appointment of assistant Federal Reserve agents (including 
representatives or alternate representatives of such agents) under 
section 4(21) of the Federal Reserve Act (12 U.S.C. 306).
    (17) Relief from or modification of commitments. To grant or deny 
requests for relieving or modifying (including extending the time for 
performing) a commitment relied upon by the Reserve Bank in taking any 
action under the Bank Holding Company Act, section 18(c) of the Federal 
Deposit Insurance Act (12 U.S.C. 1828(c)), the Change in Bank Control 
Act, the Federal Reserve Act, the International Banking Act, the 
Federal Deposit Insurance Act, or the Home Owners' Loan Act, so long as 
the requests do not raise any significant legal, supervisory, or policy 
issues. In acting on such requests, the Reserve Bank may take into 
account changed circumstances and good faith efforts to fulfill the 
commitments, and shall consult with Board staff as appropriate. The 
Reserve Bank may not take any action that would be inconsistent with or 
result in an evasion of the provisions of the original action.
    (b) Availability of Information; Board records. To make available 
information of the Board of the nature and in the

[[Page 54020]]

circumstances described in Sec. Sec.  261.21(a) and 261.22(a) of the 
Board's Rules Regarding Availability of Information (12 CFR 261.21(a) 
and 261.22(a)).
    (c) Holding companies; change in bank control; mergers--(1) Require 
reports under oath. To require reports under oath to determine whether 
a company is complying with section 5(c) of the Bank Holding Company 
Act (12 U.S.C. 1844(c)) or section 10(b)(2) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(b)(2)).
    (2) Acquisition of going concern--authorization of consummation; 
early consummation. (i) To notify a bank holding company or savings and 
loan holding company that, because the circumstances surrounding the 
application to acquire a going concern indicate that additional 
information is required or that the acquisition should be considered by 
the Board, the acquisition should not be consummated until specifically 
authorized by the Reserve Bank or by the Board.
    (ii) To permit a bank holding company or savings and loan holding 
company to make a proposed acquisition of a going concern before the 
expiration of the 30-day period referred to in Sec.  225.24(d)(1) of 
Regulation Y (12 CFR 225.24(d)(1)) or Sec.  238.53(f)(1)(i) of 
Regulation LL (12 CFR 238.53(f)(1)(i)) because exigent circumstances 
justify consummation of the acquisition at an earlier time.
    (3) Petition for review of decision that adverse comments are not 
substantive; permit proposed de novo activities; authorization of 
consummation. Under subpart C of Regulation Y (12 CFR part 225, subpart 
C) or subpart F of Regulation LL (12 CFR part 238, subpart F) and 
subject to Sec.  265.3 (12 CFR 265.3), if a person submitting adverse 
comments that the Reserve Bank has decided are not substantive files a 
petition for review by the Board of that decision:
    (i) To permit a bank holding company to engage de novo in 
activities specified in Sec.  225.28(b) of Regulation Y (12 CFR 
225.28(b)), or a savings and loan holding company to engage de novo in 
activities specified in Sec. Sec.  238.53 and 238.54 of Regulation LL 
(12 CFR 238.53 and 238.54), or retain shares in a company established 
de novo and engaging in such activities, if the Reserve Bank's 
evaluation of the considerations specified in section 4(c)(8) of the 
Bank Holding Company Act (12 U.S.C. 1843(c)(8)) or section 10(c) of the 
Home Owners' Loan Act (12 U.S.C. 1467a(c)) leads it to conclude that 
the proposal can reasonably be expected to produce benefits to the 
public.
    (ii) To notify a bank holding company or savings and loan holding 
company that the proposal should not be consummated until specifically 
authorized by the Reserve Bank or by the Board or that the proposal 
should be processed in accordance with the procedures in subpart C of 
Regulation Y (12 CFR part 225, subpart C) or subpart F of Regulation LL 
(12 CFR part 238, subpart F).
    (4) Nonbanking activities. (i) To approve requests by bank holding 
companies to engage in check cashing for checks drawn on unaffiliated 
banks, real estate title abstracting, or acting as a certification 
authority for digital signatures and authenticating the identity of 
persons conducting financial and nonfinancial transactions, as an 
activity that is closely related to banking for purposes of section 
4(c)(8) of the Bank Holding Company Act (12 U.S.C. 1843(c)(8)), when 
the proposal meets the conditions imposed by the Board in approving 
previous requests, and no significant legal, policy, or supervisory 
issues are raised by the specific proposal.
    (ii) To approve requests by foreign banks subject to the Bank 
Holding Company Act by operation of section 8(a) of the International 
Banking Act (12 U.S.C. 3106(a)) to engage in acting as a certification 
authority for digital signatures and authenticating the identity of 
persons conducting financial and nonfinancial transactions, as an 
activity that is closely related to banking for purposes of section 
4(c)(8) of the Bank Holding Company Act (12 U.S.C. 1843(c)(8)), when 
the proposal meets the conditions imposed by the Board in approving 
previous requests, and no significant legal, policy, or supervisory 
issues are raised by the specific proposal.
    (5) Permit or stay of modification or location of activities. To 
permit or stay a proposed de novo modification or relocation of 
activities engaged in by a bank holding company or a savings and loan 
holding company on the same basis as de novo proposals under paragraph 
(c)(3) of this section.
    (6) Notices under the Change in Bank Control Act. With respect to a 
bank holding company, a savings and loan holding company, or a State 
member bank:
    (i) To determine the informational sufficiency of notices and 
reports filed under the Change in Bank Control Act (12 U.S.C. 1817(j));
    (ii) To extend periods for consideration of notices;
    (iii) To determine whether a person who is or will be subject to a 
presumption described in Sec.  225.41(c)(2) of Regulation Y (12 CFR 
225.41(c)(2)) or Sec.  238.31(c)(2) of Regulation LL (12 CFR 
238.31(c)(2)) should file a notice regarding a proposed transaction; 
and
    (iv) To issue a notice of intention not to disapprove a proposed 
change in control if all the following conditions are met:
    (A) No member of the Board has indicated an objection prior to the 
Reserve Bank's action;
    (B) No senior officer or director of an involved party is also a 
director of a Federal Reserve Bank or branch;
    (C) All relevant departments of the Reserve Bank concur;
    (D) If the proposal involves shares of a State member bank or a 
bank holding company controlling a State member bank, the appropriate 
bank supervisory authorities have indicated that they have no objection 
to the proposal, or no objection has been received from them within the 
time allowed by the act; and
    (E) No significant policy issue under the Change in Bank Control 
Act (12 U.S.C. 1817(j)), Sec.  225.41 of Regulation Y (12 CFR 225.41), 
or Sec.  238.31 of Regulation LL (12 CFR 238.41) is raised by the 
proposal as to which the Board has not expressed its view.
    (7) Failure to comply with publication requirement under the Change 
in Bank Control Act. To waive, dispense with, modify, or excuse the 
failure to comply with the requirement for publication and solicitation 
of public comment regarding a notice filed under the Change in Bank 
Control Act (12 U.S.C. 1817(j)), with the concurrence of the Director 
of the Division of Supervision and Regulation and the General Counsel, 
provided that a written finding is made that such disclosure or 
solicitation would seriously threaten the safety or soundness of a bank 
holding company, savings and loan holding company, savings association, 
or bank under paragraph (2) of the Change in Bank Control Act (12 
U.S.C. 1817(j)(2)).
    (8) Legacy nonbanking activities. To determine that termination of 
nonbanking activities conducted pursuant to the proviso in section 
4(a)(2) of the Bank Holding Company Act (12 U.S.C. 1843(a)(2)) by a 
particular bank holding company is not warranted, provided the Reserve 
Bank is satisfied all of the following conditions are met:
    (i) The company or its successor is ``a company covered in 1970'';
    (ii) The nonbanking activities that the bank holding company seeks 
to continue do not present any significant unsettled policy issues; and
    (iii) The bank holding company was lawfully engaged in such 
activities as of June 30, 1968, and has been engaged in such activities 
continuously thereafter.

[[Page 54021]]

    (9) Opening of additional nonbanking offices. To approve 
applications by a bank holding company under section 4(c)(8) of the 
Bank Holding Company Act (12 U.S.C. 1843(c)(8)) and subpart C of 
Regulation Y (12 CFR part 225, subpart C) to open additional offices to 
engage in nonbanking activities for which the bank holding company 
previously received approval pursuant to Board order, unless one of the 
conditions specified in paragraphs (c)(12)(i) through (iv) of this 
section is present.
    (10) Volcker Rule. In consultation with Board staff, to approve 
(but not deny) an application by a banking entity for an extension of 
the period of time during which it must reduce its ownership interest 
in a covered fund to no more than 3 percent, if all of the following 
criteria are met:
    (i) No significant issues have been identified regarding the firm's 
compliance program;
    (ii) The banking entity has represented that all of the 
requirements under section 13 of the Bank Holding Company Act (12 
U.S.C. 1851) and its implementing regulations (12 CFR part 248) for 
organizing and offering a covered fund have been met;
    (iii) The banking entity provides a plan for reducing the permitted 
investment in a covered fund through redemption, sale, dilution, or 
other methods by the end of the extension period; and
    (iv) The primary Federal agency responsible for enforcing 
compliance with section 13 of the Bank Holding Company Act (12 U.S.C. 
1851) by the banking entity that invests in or sponsors the covered 
fund (if other than the Federal Reserve) does not object to the 
extension.
    (11) Notices for addition or change of directors or officers. Under 
section 914(a) of the Financial Institutions Reform, Recovery, and 
Enforcement Act of 1989 (12 U.S.C. 1831i) and subpart H of Regulation Y 
(12 CFR part 225, subpart H)) and subpart H of Regulation LL (12 CFR 
part 238, subpart H), provided that no senior officer or director or 
proposed senior officer or director of the notificant is also a 
director of the Reserve Bank or a branch of the Reserve Bank:
    (i) To determine the informational sufficiency of notices filed 
pursuant to Sec.  225.72 of Regulation Y (12 CFR 225.72) or Sec.  
238.73 of Regulation LL (12 CFR 238.73); and
    (ii) To waive the prior notice requirements of those sections.
    (12) Applications requiring Board approval; competitive factors 
reports for bank mergers and savings association mergers. To approve 
applications requiring prior approval of the Board and furnish to the 
Comptroller of the Currency and the Federal Deposit Insurance 
Corporation reports on competitive factors involved in a bank merger or 
savings association merger required to be approved by one of those 
agencies, unless one or more of the following conditions is present:
    (i) A member of the Board has indicated an objection prior to the 
Reserve Bank's action; or
    (ii) The Board has indicated that such delegated authority shall 
not be exercised by the Reserve Bank in whole or in part; or
    (iii) A written substantive objection to the application has been 
properly made; or
    (iv) The application raises a significant policy issue or legal 
question on which the Board has not established its position; or
    (v)(A)With respect to holding company formations, acquisitions or 
mergers of holding companies, or acquisitions or mergers of insured 
depository institutions, except as set forth in paragraph (c)(12)(v)(B) 
of this section, upon consummation, the proposal would result in the 
control by a banking organization of over 35 percent of total deposits 
in banking offices in the relevant geographic market or an increase of 
at least 200 points in the Herfindahl-Hirschman Index (HHI) for 
deposits in a highly concentrated market (a market with a post-merger 
HHI of at least 1800) when including:
    (1) All thrift deposits at 50 percent weight, except for deposits 
of thrifts determined by the Reserve Bank, with the concurrence of the 
Director of the Division of Research and Statistics, to be commercially 
active, which are included at 100 percent weight; and
    (2) The deposits of credit unions determined by the Reserve Bank, 
with the concurrence of the Director of the Division of Research and 
Statistics, to offer consumer banking products, operate street-level 
branches, and have broad membership criteria in the relevant geographic 
market, which are included at 50 percent weight; or
    (B) With respect to the formation of a savings and loan holding 
company, the merger of savings and loan holding companies, or the 
acquisition by a savings and loan holding company of a savings 
association, upon consummation, the proposal would result in the 
control by a banking organization of over 35 percent of total deposits 
in banking offices in the relevant geographic market or an increase of 
at least 200 points in the HHI for deposits in a highly concentrated 
market (a market with a post-merger HHI of at least 1800) when 
including:
    (1) All thrift deposits at 100 percent weight; and
    (2) The deposits of credit unions determined by the Reserve Bank, 
with the concurrence of the Director of the Division of Research and 
Statistics, to offer consumer banking products, operate street-level 
branches, and have broad membership criteria in the relevant geographic 
market, which are included at 50 percent weight; or
    (vi) With respect to nonbank acquisitions, the nonbanking 
activities involved do not clearly fall within activities that the 
Board has designated as permissible for bank holding companies under 
Sec.  225.28(b) of Regulation Y (12 CFR 225.28(b)); or
    (vii) With respect to formations, acquisitions, or mergers 
involving depository institution holding companies, banks, or nonbank 
companies (except for internal corporate reorganizations), the proposed 
transaction represents an acquisition of assets equaling or exceeding 
$10 billion and would result in an organization with total assets 
equaling or exceeding $100 billion; or there is evidence that the 
transaction would result in a significant increase in 
interconnectedness, complexity, cross-border activities, or other risk 
factors related to the stability of the United States banking or 
financial system.
    (13) Waivers. (i) To inform an acquiring bank holding company, in 
connection with a notice submitted by the bank holding company pursuant 
to Sec.  225.12(d)(2) of Regulation Y (12 CFR 225.12(d)(2)), that an 
application under Sec.  225.11 of Regulation Y (12 CFR 225.11) is 
required.
    (ii) To inform an acquiring savings and loan holding company, in 
connection with a notice submitted by the savings and loan holding 
company pursuant to Sec.  238.12(d)(1) of Regulation LL (12 CFR 
238.12(d)(1)), that an application under Sec.  238.11 of Regulation LL 
(12 CFR 238.11) is required.
    (14) Savings and loan holding companies in mutual form. (i) To act 
on reorganization notices filed pursuant to section 10(o) of the Home 
Owners' Loan Act (12 U.S.C. 1467a(o)) and Sec.  239.3 of Regulation MM 
(12 CFR 239.3), including with respect to the establishment of a mutual 
holding company, if no significant legal, policy, or supervisory issues 
are raised by the proposal.
    (ii) To act on applications to establish a subsidiary holding 
company of a mutual holding company filed pursuant to section 10(o) of 
the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and

[[Page 54022]]

Sec.  239.11 of Regulation MM (12 CFR 239.11), if no significant legal, 
policy, or supervisory issues are raised by the proposal.
    (iii) To take any action related to an application by a mutual 
holding company to convert from mutual to stock form filed pursuant to 
section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and 
subpart E of Regulation MM (12 CFR part 239, subpart E) if no 
significant legal, policy, or supervisory issues are raised by the 
proposal.
    (iv) To act on notices to repurchase stock filed pursuant to 
section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and 
Sec.  239.63(d) of Regulation MM (12 CFR 239.63(d)), if no significant 
legal, policy, or supervisory issues are raised by the proposal.
    (v) To extend for an additional 60 days the 30-day period within 
which the Board may object to a notice to repurchase stock filed 
pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 
1467a(o)) and Sec.  239.63(d) of Regulation MM (12 CFR 239.63(d)).
    (vi) To act on applications to acquire savings associations, 
savings and loan holding companies, and other corporations filed 
pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 
1467a(o)) and Sec.  239.7 of Regulation MM (12 CFR 239.7), if no 
significant legal, policy, or supervisory issues are raised by the 
proposal.
    (vii) To act on notices and applications to engage in activities 
filed pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 
1467a(o)) and Sec.  239.8 of Regulation MM (12 CFR 239.8), if no 
significant legal, policy, or supervisory issues are raised by the 
proposal.
    (viii) To act on notices of indemnification filed pursuant to 
section 10(o) of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and 
Sec.  239.40 of Regulation MM (12 CFR 239.40), if no significant legal, 
policy, or supervisory issues are raised by the proposal.
    (ix) To act on notices of waiver by mutual holding companies of the 
right to receive dividends declared by subsidiaries of the mutual 
holding company filed pursuant to section 10(o) of the Home Owners' 
Loan Act (12 U.S.C. 1467a(o)) and Sec.  239.8(d) of Regulation MM (12 
CFR 239.8(d)), if no significant legal, policy, or supervisory issues 
are raised by the proposal.
    (x) To act on applications relating to charter and bylaw amendments 
of mutual holding companies and subsidiary holding companies filed 
pursuant to section 10(o) of the Home Owners' Loan Act (12 U.S.C. 
1467a(o)) and Sec. Sec.  239.14, 239.15, 239.22, and 239.23 of 
Regulation MM (12 CFR 239.14, 239.15, 239.22, and 239.23), if no 
significant legal, policy, or supervisory issues are raised by the 
proposal.
    (xi) To act on notices of transfer of stock and issuance of stock 
to insiders, associates of insiders, or tax-qualified or non-tax-
qualified employee stock benefit plans filed pursuant to section 10(o) 
of the Home Owners' Loan Act (12 U.S.C. 1467a(o)) and Sec. Sec.  
239.7(b) and 239.8(e) of Regulation MM (12 CFR 239.7(b) and 239.8(e)), 
if no significant legal, policy, or supervisory issues are raised by 
the proposal.
    (xii) To act on notices of disposition of stock of certain 
subsidiaries filed pursuant to section 10(o) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(o)) and Sec.  239.7(b) of Regulation MM (12 CFR 
239.7(b)), if no significant legal, policy, or supervisory issues are 
raised by the proposal.
    (xiii) To act on applications to engage in voluntary supervisory 
conversions filed pursuant to section 10(o) of the Home Owners' Loan 
Act (12 U.S.C. 1467a(o)) and Sec.  239.65 of Regulation MM (12 CFR 
239.65), if no significant legal, policy, or supervisory issues are 
raised by the proposal.
    (xiv) To approve requests from subsidiary holding companies of 
mutual holding companies to conduct stock issuances pursuant to Sec.  
239.24 of Regulation MM (12 CFR 239.24), persons other than its mutual 
holding company parent pursuant to Sec.  239.24 of Regulation MM (12 
CFR 239.24), including approval of nonconforming stock issuances 
pursuant to Sec.  239.24(c)(6)(ii) of Regulation MM (12 CFR 
239.24(c)(6)(ii)) and determinations that certain procedural and 
substantive requirements are inapplicable pursuant to Sec.  239.24(d) 
of Regulation MM (12 CFR 239.24(d)), where such requests do not raise 
any significant legal, policy, or supervisory issues.
    (xv) To approve plans of dissolution filed by mutual holding 
companies and subsidiary holding companies of mutual holding companies 
pursuant to Sec.  239.16 of Regulation MM (12 CFR 239.16), if no 
significant legal, policy, or supervisory issues are raised by the 
proposal.
    (d) International banking--(1) Member bank, Edge corporation, or 
agreement corporation establishing foreign branch. With regard to a 
prior notice to establish a branch in a foreign country under Sec.  
211.3 of Regulation K (12 CFR 211.3)--
    (i) To waive the notice period if immediate action is required and 
there is no significant legal, supervisory, or policy issue;
    (ii) To suspend the notice period;
    (iii) To determine not to object to the notice, provided that no 
significant legal, supervisory, or policy issue is raised by the 
proposal; or
    (iv) To require the notificant to file an application for the 
Board's specific consent.
    (2) Acquisitions by a foreign branch. To approve, under Sec.  
211.4(a)(8) of Regulation K (12 CFR 211.4(a)(8)), a proposal by a 
foreign branch of a member bank to acquire all of the shares of a 
company that engages solely in activities in which the member bank is 
permitted to engage or that are incidental to the activities of the 
foreign branch, provided that no significant legal, supervisory, or 
policy issue is raised.
    (3) Application to establish Edge corporation. To approve the 
application by a U.S. banking organization to establish an Edge 
corporation under section 25A of the Federal Reserve Act (12 U.S.C. 611 
et seq.) and Sec.  211.5 of Regulation K (12 CFR 211.5) if all of the 
following criteria are met:
    (i) The U.S. banking organization meets the capital adequacy 
guidelines and is otherwise in satisfactory condition;
    (ii) The proposed Edge corporation will be a wholly owned 
subsidiary of a single banking organization; and
    (iii) No significant legal, supervisory, or policy issues are 
raised by the proposal.
    (4) Issuance of permit to Edge corporation and amendments to 
articles of association and charter. To issue to an Edge corporation 
under section 25A of the Federal Reserve Act (12 U.S.C. 614) and Sec.  
211.5 of Regulation K (12 CFR 211.5) a permit to commence business and 
to approve amendments to the articles of association and charter of an 
Edge corporation.
    (5) Investments in Edge and agreement corporations. To approve, 
pursuant to Sec.  211.5(a)(3) of Regulation K (12 CFR 211.5(a)(3)) an 
application by a member bank to invest more than 10 percent of its 
capital and surplus in the aggregate amount of stock held in all Edge 
or agreement corporations; provided that:
    (i) The member bank's total investment, including retained earnings 
of the Edge and agreement corporation, does not exceed 20 percent of 
the bank's capital and surplus and would not exceed that level as a 
result of the proposal; and
    (ii) The proposal raises no significant legal, supervisory, or 
policy issues.
    (6) Foreign ownership of an Edge corporation. To approve, under 
Sec.  211.5(d) of Regulation K (12 CFR 211.5(d)), a foreign 
institution's

[[Page 54023]]

acquisition, directly or indirectly, of a majority of the shares of the 
capital stock of an Edge corporation, provided that no significant 
legal, supervisory, or policy issue is raised.
    (7) Change in control of an Edge corporation. With regard to a 
notice to acquire, directly or indirectly, 25 percent or more of the 
voting securities, or otherwise to acquire control, of an Edge 
corporation, under Sec.  211.5(e) of Regulation K (12 CFR 211.5(e)):
    (i) To waive the notice period if immediate action is required and 
no significant legal, supervisory, or policy issue is raised;
    (ii) To extend the notice period;
    (iii) To determine not to object to the notice if no significant 
legal, supervisory, or policy issue is raised; or
    (iv) To require the notificant to file an application for the 
Board's specific consent.
    (8) Granting specific consent. To grant prior specific consent to 
an investor for--
    (i) A long range investment plan, under Sec.  211.9(a)(4) of 
Regulation K (12 CFR 211.9(a)(4)); or
    (ii) An investment in its first subsidiary or its first joint 
venture, under Sec.  211.9(a)(5) of Regulation K (12 CFR 211.9(a)(5)), 
where such investment does not exceed the general consent limitations 
under Sec.  211.9(b) of Regulation K (12 CFR 211.9(b)).
    (9) Investment in export trading company. To issue a notice of 
intention not to disapprove a proposed investment in an export trading 
company if all the following criteria are met:
    (i) The proposed export trading company will be a wholly owned 
subsidiary of a single investor, or ownership will be shared with an 
individual or individuals involved in the operation of the export 
trading company;
    (ii) A bank holding company investor and its lead bank meet the 
minimum capital adequacy guidelines of the Board, the Comptroller of 
the Currency, or the Federal Deposit Insurance Corporation or have 
enacted capital enhancement plans that have been determined by the 
appropriate supervisory authority to be acceptable;
    (iii) The proposed activities of the export trading company do not 
include product research or design, product modification, or activities 
not specifically covered by the list of services contained in 
4(c)(14)(F)(ii) of the Bank Holding Company Act (12 U.S.C. 
1843(c)(14)(F)(ii)); and
    (iv) No other significant policy issue is raised on which the Board 
has not previously expressed its view under section 4(c)(14) of the 
Bank Holding Company Act (12 U.S.C. 1843(c)(14)) and subpart C of 
Regulation K (12 CFR part 211, subpart C).
    (10) Authority under prior-notice procedures. (i) With regard to a 
prior notice to make an investment under Sec.  211.9(f) of Regulation K 
(12 CFR 211.9(f)):
    (A) To waive the notice period if immediate action is required and 
there is no significant legal, supervisory, or policy issue raised;
    (B) To suspend the notice period;
    (C) To determine not to object to the notice if there is no 
significant legal, supervisory, or policy issue raised; or
    (D) To require the notificant to file an application for the 
Board's specific consent.
    (v) With regard to a prior notice of a foreign bank to establish 
certain U.S. offices under Sec.  211.24(a)(2)(i) of Regulation K (12 
CFR 211.24(a)(2)(i)):
    (A) To waive the notice period if immediate action is required and 
there is no significant legal, supervisory, or policy issue raised;
    (B) To suspend the notice period;
    (C) To determine not to object to the notice if there is no 
significant legal, supervisory, or policy issue raised; or
    (D) To require the notificant to file an application for the 
Board's specific consent.
    (11) Activities usual in connection with banking or other financial 
operations abroad. (i) To approve a prior notice, under Sec.  
211.10(a)(14) of Regulation K (12 CFR 211.10(a)(14)), to engage in 
underwriting and distribution of equity securities outside the United 
States, provided that the proposal raises no significant legal, 
supervisory, or policy issue.
    (ii) To approve a prior notice, under Sec.  211.10(a)(15) of 
Regulation K (12 CFR 211.10(a)(15)), to engage in dealing in equity 
securities outside the United States, provided that the proposal raises 
no significant legal, supervisory, or policy issue.
    (iii) To approve a prior notice, under Sec.  211.10(a)(15)(iv)(B) 
of Regulation K (12 CFR 211.10(a)(15)(iv)(B)), to use internal hedging 
models, provided that the proposal raises no significant legal, 
supervisory, or policy issue.
    (iv) To approve a prior notice, under Sec.  211.10(a)(18) of 
Regulation K (12 CFR 211.10(a)(18), to engage in futures commission 
merchant activities on an mutual exchange or clearinghouse that 
requires members to guarantee or otherwise contract to cover losses 
suffered by the other members, provided that the Board has previously 
approved the exchange, the application is on the same terms and 
conditions on which the Board based its approval of the exchange, and 
no significant legal, supervisory, or policy issue is raised.
    (12) Change in foreign bank home state. With respect to a foreign 
bank's change of home state under Sec.  211.22(b) of Regulation K (12 
CFR 211.22(b)) and provided no significant legal, supervisory, or 
policy issue is raised:
    (i) To waive the notice period; or
    (ii) To determine not to object to the notice.
    (13) Waiver of 30-day prior notification period. To waive the 30-
day prior notification period with respect to a foreign bank's change 
of home state under Sec.  211.22(b)(1) of Regulation K (12 CFR 
211.22(b)(1)).
    (14) Offices of foreign banks. (i) To approve the establishment of 
a branch, agency, commercial lending company, or representative office 
by a foreign bank in the United States, pursuant to Sec.  211.24(a)(1) 
of Regulation K (12 CFR 211.24(a)(1)), if the Board has already 
determined that the foreign bank is subject to consolidated 
comprehensive supervision and provided that the application raises no 
significant legal, supervisory, or policy issue.
    (ii) To allow a foreign bank to establish a temporary office of a 
branch or agency, pursuant to Sec.  211.24(a)(5) of Regulation K (12 
CFR 211.24(a)(5)), provided there is no direct public access to such 
office and no significant legal, supervisory, or policy issue is 
raised.
    (15) Agreement with foreign bank concerning deposits of out-of-
home-state branch. To enter into an agreement or undertaking with a 
foreign bank that it shall receive only such deposits at its out-of-
home-state branch as would be permissible for an Edge corporation under 
section 5 of the International Banking Act (12 U.S.C. 3103).
    (16) Dividends of property other than cash by an Edge corporation. 
To approve (but not deny) a request by an Edge corporation to declare 
or pay a dividend of property other than cash if the request does not 
raise a significant legal, supervisory, or policy issue.
    (e) Member banks--(1) Approval of membership applications. To 
approve applications for membership in the Federal Reserve System under 
section 9 of the Federal Reserve Act (12 U.S.C. 321 et seq.) and 
Regulation H (12 CFR part 208) if the Reserve Bank is satisfied that 
approval is warranted after considering the factors set forth in 12 CFR 
208.3(b).
    (2) Waiver of notice of intention to withdraw from membership. To 
approve or deny applications by State banks for waiver of the required 
six months' notice of intention to withdraw from Federal Reserve 
membership under

[[Page 54024]]

section 9(10) of the Federal Reserve Act (12 U.S.C. 328).
    (3) Approval of branch applications. To approve a State member 
bank's establishment of a domestic branch under section 9 of the 
Federal Reserve Act (12 U.S.C. 321 et seq.) and Regulation H (12 CFR 
part 208) if the Reserve Bank is satisfied that approval is warranted 
after considering the factors set forth in 12 CFR 208.6(b).
    (4) Declaration of dividends in excess of net profits. To permit a 
State member bank under section 9(6) of the Federal Reserve Act (12 
U.S.C. 324) to declare dividends in excess of the amounts allowed in 
Sec.  208.5(c) of Regulation H (12 CFR 208.5(c)) if the Reserve Bank is 
satisfied that approval is warranted after giving consideration to:
    (i) The bank's capitalization in relation to the character and 
condition of its assets and to its deposit liabilities and other 
corporate responsibilities, including the volume of its risk assets and 
of its marginal and inferior quality assets, all considered in relation 
to the strength of its management; and
    (ii) The bank's capitalization after payment of the proposed 
dividends.
    (5) Reduction of capital stock. To permit a State member bank under 
section 9(11) of the Federal Reserve Act (12 U.S.C. 329) to reduce its 
capital stock below the amounts set forth in Sec.  208.5(d) of 
Regulation H (12 CFR 208.5(d)) if the State member bank's 
capitalization thereafter will be:
    (i) In conformity with the requirements of Federal law; and
    (ii) Adequate in relation to the character and condition of its 
assets and to its deposit liabilities and other corporate 
responsibilities, including the volume of its risk assets and of its 
marginal and inferior quality assets, all considered in relation to the 
strength of its management.
    (6) Acceptance of drafts and bills of exchange. To permit a member 
bank or a Federal or State branch or agency of a foreign bank that is 
subject to reserve requirements under section 7 of the International 
Banking Act (12 U.S.C. 3105) to accept drafts or bills of exchange 
under section 13(7) of the Federal Reserve Act (12 U.S.C. 372) in an 
aggregate amount at any one time up to 200 percent of its paid-up and 
unimpaired capital stock and surplus, if the Reserve Bank is satisfied 
that such permission is warranted after giving consideration to the 
institution's capitalization in relation to the character and condition 
of its assets and to its deposit liabilities and other corporate 
responsibilities, including the volume of its risk assets and of its 
marginal and inferior quality assets, all considered in relation to the 
strength of its management.
    (7) Investment in bank premises in excess of capital stock. To 
permit a State member bank to invest in bank premises under section 24A 
of the Federal Reserve Act (12 U.S.C. 371d) in an amount in excess of 
that set forth in Sec.  208.21(a) of Regulation H (12 CFR 208.21(a)), 
if the Reserve Bank is satisfied that approval is warranted after 
giving consideration to the bank's capitalization in relation to the 
character and condition of its assets and to its deposit liabilities 
and other corporate responsibilities, including the volume of its risk 
assets and of its marginal and inferior quality assets, all considered 
in relation to the strength of its management.
    (8) Security devices. To determine whether security devices and 
procedures of State member banks are deficient in meeting the 
requirements of Regulation H (12 CFR part 208) and whether such 
requirements should be varied in the circumstances of a particular 
banking office, and whether to require corrective action.
    (9) Classifying member banks for election of directors. To classify 
member banks for the purposes of electing Federal Reserve Bank class A 
and class B directors under section 4(16) of the Federal Reserve Act 
(12 U.S.C. 304), giving consideration to:
    (i) The statutory requirement that each of the three groups shall 
consist as nearly as may be of banks of similar capitalization; and
    (ii) The desirability that every member bank have the opportunity 
to vote for a class A or a class B director at least once every three 
years.
    (10) Waiver of penalty for deficient reserves. To waive the penalty 
for deficient reserves by a member bank if, after a review of all the 
circumstances relating to the deficiency, the Reserve Bank concludes 
that waiver is warranted, except that in no case may a penalty be 
waived if the deficiency in reserves arises out of the bank's gross 
negligence or conduct inconsistent with the principles and purposes of 
reserve requirements.
    (11) Retirement of subordinated debt. To approve the retirement 
prior to maturity of capital notes described in Sec.  
204.2(a)(1)(vii)(C) of Regulation D (12 CFR 204.2(a)(1)(vii)(C)) and 
issued by a State member bank, provided the Reserve Bank is satisfied 
that the capital position of the bank will be adequate after the 
proposed redemption.
    (12) Public welfare investments. (i) To permit a State member bank 
to make a public welfare investment in accordance with section 9(23) of 
the Federal Reserve Act (12 U.S.C. 338a), provided that the proposal 
satisfies Sec.  208.22(b)(1) of Regulation H (12 CFR 208.22(b)(1)) and 
no significant legal, supervisory, or policy issue is raised; and
    (ii) To determine, in connection with acting on a proposal pursuant 
to delegated authority as set forth in paragraph (e)(12)(i) of this 
section, that the aggregate amount of a State member bank's public 
welfare investments will not pose a significant risk to the deposit 
insurance fund in accordance with section 9(23) of the Federal Reserve 
Act (12 U.S.C. 338a).
    (13) Dividends of property other than cash by a State member bank. 
To approve (but not deny) a request by a State member bank to declare 
or pay a dividend of property other than cash if the request does not 
raise a significant legal, supervisory, or policy issue.
    (f) Securities. To approve applications by a registered lender for 
termination of the registration under Sec.  221.3(b)(2) of Regulation U 
(12 CFR 221.3(b)(2)).
    (g) Management interlocks. After consultation with the General 
Counsel, to decide not to disapprove notices to establish director 
interlocks with diversified savings and loan holding companies under 
section 205(8) of the Depository Institution Management Interlocks Act 
(12 U.S.C. 3204(8)).
    (h) Qualified family partnerships. To act on requests for 
determinations of qualified family partnership status under section 
2(o)(10) of the Bank Holding Company Act (12 U.S.C. 1841(o)(10)).
    (i) Financial holding companies. In consultation with Board staff, 
to make effective elections filed by U.S. bank holding companies to 
become financial holding companies.
    (j) Savings and loan holding companies. (1) With the approval of 
the Director of the Division of Supervision and Regulation and the 
General Counsel, to enter into corrective action agreements with 
savings and loan holding companies pursuant to Sec.  238.66 of 
Regulation LL (12 CFR 238.66).
    (2) To act on notices of capital distributions filed pursuant to 
section 10(f) of the Home Owners' Loan Act (12 U.S.C. 1467a(f)) and 
Sec.  238.103 of Regulation LL (12 CFR 238.103).
    (3) To act on elections to engage in financial holding company 
activities filed pursuant to section 10(c) of the Home Owners' Loan Act 
(12 U.S.C. 1467a(c)) and subpart G of Regulation LL (12 CFR part 238, 
subpart G), if no significant legal, policy, or supervisory issues are 
raised by the proposal.
    (4) To act on notices and applications to engage in activities 
filed pursuant to section 10(c) of the Home Owners' Loan

[[Page 54025]]

Act (12 U.S.C. 1467a(c)) and subparts F and G of Regulation LL (12 CFR 
part 238, subparts F and G), if no significant legal, policy, or 
supervisory issues are raised by the proposal.
    (5) To grant requests by companies to deregister as savings and 
loan holding companies, if no significant legal, policy, or supervisory 
issues are raised by the proposal.
    (k) Financial operations of the Bank for International Settlements. 
The Federal Reserve Bank of New York is authorized to assent or 
dissent, as appropriate, to financial operations of the Bank for 
International Settlements conducted in the U.S. market or in U.S. 
dollars.
    (l) Regulatory capital rule--(1) Delegations regarding the 
definition of capital. (i) With the concurrence of the Director of the 
Division of Supervision and Regulation, to:
    (A) Act on a company's request under Sec.  217.20(b)(l)(iii), Sec.  
217.20(c)(l)(vi), or Sec.  217.20(d)(l)(x) of Regulation Q (12 CFR 
217.20(b)(l)(iii), 217.20(c)(l)(vi), or 217.20(d)(l)(x)) to redeem a 
security; and
    (B) Act on a company's request under Sec.  217.20(c)(l)(v)(A) or 
Sec.  217.20(d)(l)(v)(A) of Regulation Q (12 CFR 217.20(c)(l)(v)(A) and 
217.20(d)(l)(v)(A)) to exercise a call option.
    (2) Delegations regarding standardized approach risk-weighted 
assets. (i) With the concurrence of the Director of the Division of 
Supervision and Regulation, to:
    (A) Act on a request from a company under Sec.  217.37(c) of 
Regulation Q (12 CFR 217.37(c)) to use its own estimates of haircuts, 
including:
    (1) Acting on a request by a company under Sec.  217.37(c)(4)(i)(E) 
of Regulation Q (12 CFR 217.37(c)(4)(i)(E)) to make changes to the 
company's policies and procedures; and
    (2) Requiring a company under Sec.  217.37(c)(4)(i)(F) of 
Regulation Q (12 CFR 217.37(c)(4)(i)(F)) to use a different period of 
significant financial stress in the calculation of own estimates of 
haircuts; and
    (B) Determine under Sec.  217.41(c) of Regulation Q (12 CFR 
217.41(c)) whether or not a company has demonstrated a comprehensive 
understanding of the features of a securitization exposure.
    (3) Delegations regarding advanced approaches risk-weighted assets. 
(i) With the concurrence of the Director of the Division of Supervision 
and Regulation, to:
    (A) Act on a request for approval of any model or optional approach 
available under subpart E of Regulation Q (12 CFR part 217, subpart E), 
including, without limitation:
    (1) Any counterparty credit risk model or methodology (own 
estimates of haircuts, simple VaR methodology, internal models 
methodology, or advanced CVA approach) under Sec. Sec.  217.122(d) and 
217.132 of Regulation Q (12 CFR 217.122(d) and 217.132), including:
    (i) Acting on a request by a company under Sec.  
217.132(b)(2)(iii)(A)(5) of Regulation Q (12 CFR 
217.132(b)(2)(iii)(A)(5)) to make changes to the company's policies and 
procedures;
    (ii) Requiring a company under Sec.  217.132(b)(2)(iii)(A)(6) of 
Regulation Q (12 CFR 217.132(b)(2)(iii)(A)(6)) to use a different 
period of significant financial stress in the calculation of own 
internal estimates for haircuts;
    (iii) Acting on a request by a company under Sec.  217.132(d)(1) 
introductory text and (d)(1)(iv) of Regulation Q (12 CFR 217.132(d)(1) 
introductory text and (d)(1)(iv)) to use the internal models 
methodology, cease using the internal models methodology for a 
transaction type, or to make a material change to its internal model;
    (iv) Acting on a request by a company under Sec.  217.132(d)(2)(iv) 
and (d)(10) of Regulation Q (12 CFR 217.132(d)(2)(iv) and (d)(10)) to 
use a more conservative estimate of Exposure at Default;
    (v) Determining that a company must set a higher ``alpha'' under 
Sec.  217.132(d)(2)(iv)(C) of Regulation Q (12 CFR 
217.132(d)(2)(iv)(C)) based on the company's specific characteristics 
of and counterparty credit risk or model performance;
    (vi) Acting on a request by a company under Sec.  217.132(d)(3) of 
Regulation Q (12 CFR 217.132(d)(3)) to calculate the distributions of 
exposures upon which the EAD calculation is based;
    (vii) Requiring a company under Sec.  217.132(d)(3)(viii) of 
Regulation Q (12 CFR 217.132(d)(3)(viii)) to modify its stress 
calibration to better reflect actual historic losses of the portfolio;
    (viii) Acting on a request by a company under Sec.  
217.132(d)(5)(i) of Regulation Q (12 CFR 217.132(d)(5)(i)) to include 
the effect of a collateral agreement within an internal model used to 
calculate EAD;
    (ix) Requiring a company under Sec.  217.132(d)(5)(iii)(C) of 
Regulation Q (12 CFR 217.132(d)(5)(iii)(C)) to set a longer holding 
period (for margin period of risk for a netting set that is subject to 
a collateral agreement) if the Director determines that a longer period 
is appropriate due to the nature, structure, or characteristics of the 
transaction or is commensurate with the risks associated with the 
transaction;
    (x) Acting on a request by a company under Sec.  217.132(d)(6) of 
Regulation Q (12 CFR 217.132(d)(6)) to calculate alpha as the ratio of 
economic capital from a full simulation of counterparty exposure across 
counterparties that incorporates a joint simulation of market and 
credit risk factors (numerator) and economic capital based on EPE 
(denominator), subject to a floor of 1.2;
    (xi) Acting on a request by a company under Sec.  217.132(e) of 
Regulation Q (12 CFR 217.132(e)) to calculate its CVA risk-weighted 
asset amounts for a class of counterparties using the advanced CVA 
approach;
    (xii) Acting on a request by a company under Sec.  
217.132(e)(6)(ii)(D) of Regulation Q (12 CFR 217.132(e)(6)(ii)(D)) to 
use a conservative estimate when determining LGDMKT; and
    (xiii) Requiring a company under Sec.  217.132(e)(6)(v)(B) of 
Regulation Q (12 CFR 217.132(e)(6)(v)(B)) to use a different period of 
significant financial stress in the calculation of the 
CVAstressed measure;
    (2) Any model or approach relating to cleared transactions under 
Sec. Sec.  217.122(d) and 217.133 of Regulation Q (12 CFR 217.122(d) 
and 217.133), including:
    (i) Under Sec.  217.133(d)(1) of Regulation Q (12 CFR 
217.133(d)(1)) a company that is a clearing member to determine the 
risk-weighted asset amount for a default fund contribution to a CCP 
more frequently than quarterly if in the opinion of the Director of the 
Division of Supervision and Regulation, there is a material change in 
the financial condition of the CCP; and
    (ii) Acting on a request under Sec.  217.133(d)(2) of Regulation Q 
(12 CFR 217.133(d)(2)) for a company to use a risk-weighted asset 
amount for default fund contributions to a CCP that is not a QCCP other 
than a 1,250 percent risk weight;
    (3) Any model or approach relating to the double default treatment 
under Sec. Sec.  217.122(e) and 217.135 of Regulation Q (12 CFR 
217.122(e) and 217.135), including acting on a request by a company 
under Sec.  217.135(a)(6) of Regulation Q (12 CFR 217.135(a)(6)) to 
implement a process to detect excessive correlation between the 
creditworthiness of the obligor of a hedged exposure and a protection 
provider;
    (4) A company's own internal estimates of market price volatility 
and foreign exchange volatility under Sec.  217.145(b)(4) of Regulation 
Q (12 CFR 217.145(b)(4)); and

[[Page 54026]]

    (5) The internal models approach for equity exposures under 
Sec. Sec.  217.122(f) and 217.153(b) of Regulation Q (12 CFR 217.122(f) 
and 217.153(b));
    (B) Determine under Sec.  217.131(e)(4) of Regulation Q (12 CFR 
217.131(e)(4)) whether a portfolio of exposures is or is not material; 
and
    (C) Assess for purposes of Sec.  217.141(c)(1) of Regulation Q (12 
CFR 217.141(c)(1)) whether a company has a comprehensive understanding 
of the features of a securitization exposure that would materially 
affect the performance of the exposure.
    (4) Delegations regarding market risk risk-weighted assets. (i) 
With the concurrence of the Director of the Division of Supervision and 
Regulation, to act regarding any model approval, disapproval, 
rescission, or supervision under subpart F of Regulation Q (12 CFR part 
217, subpart F), including the authority to:
    (A) Exclude from the definition of ``covered position'' structural 
foreign currency positions of a company, or any hedge of a trading 
position that is outside the scope of the company's hedging strategy, 
under Sec.  217.202(b) of Regulation Q (12 CFR 217.202(b));
    (B) Act on a request from a company under Sec.  217.203(c)(1) of 
Regulation Q (12 CFR 217.203(c)(1)) to approve its internal model(s) to 
calculate its risk-based capital requirement;
    (C) Rescind approval under Sec.  217.203(c)(3) of Regulation Q (12 
CFR 217.203(c)(3)) of a company's internal model(s) to calculate its 
risk-based capital requirement;
    (D) Act on a request from a company under Sec.  
217.204(a)(2)(vi)(B) of Regulation Q (12 CFR 217.204(a)(2)(vi)(B)) to 
use alternative techniques to measure the risk of de minimis exposures;
    (E) Act on a request from a company under Sec.  217.204(b)(2) of 
Regulation Q (12 CFR 217.204(b)(2)) to use a different adjustment of 
its VaR-based measure;
    (F) Review and determine the appropriateness of a company's 
omission of risk factors under Sec.  217.205(a)(4) of Regulation Q (12 
CFR 217.205(a)(4)) and the use of proxies under Sec.  217.205(a)(5) of 
Regulation Q (12 CFR 217.205(a)(5));
    (G) Review and determine under Sec.  217.205(b)(1) of Regulation Q 
(12 CFR 217.205(b)(1)) the appropriateness of any conversions of VaR to 
other holding periods by a company;
    (H) Review and determine under Sec.  217.205(b)(2)(ii) of 
Regulation Q (12 CFR 217.205(b)(2)(ii)) the appropriateness of a 
company's alternative weighting schemes;
    (I) Approve or disapprove under Sec.  217.205(c) of Regulation Q 
(12 CFR 217.205(c)) any requirements relating to a company's division 
of subportfolios;
    (J) Approve or disapprove under Sec.  217.206(b)(3) of Regulation Q 
(12 CFR 217.206(b)(3)) any changes to a company's policies and 
procedures that describe how the company determines the period of 
significant financial stress used to calculate its stressed VaR-based 
measure;
    (K) Require a company under Sec.  217.206(b)(4) of Regulation Q (12 
CFR 217.206(b)(4)) to use a different period of significant financial 
stress in the calculation of the stressed VaR-based measure;
    (L) Act on a request by a company under Sec.  217.208(a) of 
Regulation Q (12 CFR 217.208(a)) to include certain portfolios of 
equity positions in its incremental risk model;
    (M) Act on a request by a company under Sec.  217.209(a)(1) of 
Regulation Q (12 CFR 217.209(a)(1)) to use the comprehensive risk 
approach for one or more portfolios of correlation trading positions 
and the related approval under Sec.  217.209(a)(2)(ii) of Regulation Q 
(12 CFR 217.209(a)(2)(ii)) regarding a company's comprehensive risk 
capital requirement;
    (N) Determine under Sec.  217.210(e)(3) of Regulation Q (12 CFR 
217.210(e)(3)) whether an index is a main index because the equities 
represented by the index have comparable liquidity, depth of market, 
and size of bid-ask spreads as equities in the Standard & Poor's 500 
Index and FTSE All-World Index; and
    (O) Determine under Sec.  217.210(f)(1) of Regulation Q (12 CFR 
217.210(f)(1)) whether or not a company has demonstrated a 
comprehensive understanding of the features of a securitization 
exposure.

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

Ann E. Misback,
Secretary of the Board.
[FR Doc. 2022-18203 Filed 8-29-22; 8:45 am]
BILLING CODE 6210-01-P