[Federal Register Volume 88, Number 221 (Friday, November 17, 2023)]
[Rules and Regulations]
[Pages 80108-80109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25387]
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FEDERAL RESERVE SYSTEM
12 CFR Part 265
[Docket No. R-1778]
RIN No. 7100-AG37
Rules Regarding Delegation of Authority
AGENCY: Board of Governors of the Federal Reserve System (Board).
ACTION: Final rule; correcting amendments.
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SUMMARY: The Board is revising its Rules Regarding Delegation of
Authority to add delegations of authority previously approved by the
Board and make certain technical corrections.
DATE: Effective November 17, 2023.
FOR FURTHER INFORMATION CONTACT: Andrew Hartlage, Special Counsel,
(202) 452-6483; Amory Goldberg, Senior Counsel, (202) 452-3124; or Leah
Kazar, Legal Assistant/Attorney, (202) 452-4638, Legal Division, Board
of Governors of the Federal Reserve System, 20th Street and
Constitution Avenue NW, Washington, DC 20551. For users of TTY-TRS,
please call 711 from any telephone, anywhere in the United States.
SUPPLEMENTARY INFORMATION: 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
[[Page 80109]]
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 Board published a final rule in 2022 that comprehensively
revised the delegation rules.\2\ The Board is amending the delegation
rules to publish delegations of authority previously approved by the
Board and make certain technical corrections.
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\2\ Rules Regarding Delegation of Authority, 87 FR 53988
(September 1, 2022).
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List of Subjects in 12 CFR Part 265
Authority delegations (Government agencies); Banks, Banking.
Authority and Issuance
For the reasons stated in the preamble the Board of Governors of
the Federal Reserve System amends 12 CFR part 265 as follows:
PART 265--RULES REGARDING DELEGATION OF AUTHORITY
0
1. The authority citation for part 265 continues to read as follows: 12
U.S.C. 248(i) and (k).
Subpart B--Delegations of Authority
0
2. In Sec. 265.6, in paragraph (d)(1), remove ``12 CFR 238.6'' and
add, in its place, ``12 CFR 238.96''.
0
3. In Sec. 265.7:
0
a. In paragraph (c)(7)(iii), remove ``(12 U.S.C. 1843(m)); and'' and
add, in its place, ``(12 U.S.C. 1843(m));'';
0
b. In paragraph (c)(7)(iv), remove ``(12 U.S.C. 1843(m));'' and add, in
its place, ``(12 U.S.C. 1843(m)); and'';
0
c. Add paragraph (c)(7)(v);
0
d. In paragraph (d)(7)(ii)(B)(3), remove ``(Sec. Sec. 252.146 and
252.158)'' and add, in its place, ``(12 CFR 252.146 and 252.158)'';
0
e. In paragraph (e)(5), remove the words ``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)'' and add, in their place, the words ``To exercise the functions
described in Sec. Sec. 265.20(e)(5) and (11) (reductions in capital
and early retirement of subordinated debt)'';
0
f. In paragraph (j)(1)(viii), remove the words, ``of receipt of
receipt'' and add, in their place, the words ``of receipt'';
0
g. In paragraph (k)(1)(ii)(E), remove ``and'' at the end;
0
h. In paragraph (k)(1)(ii)(F), remove ``soundness.'' and add, in its
place, ``soundness;'';
0
i. Add paragraphs (k)(1)(ii)(G) and (k)(1)(ii)(H);
0
j. In paragraph (k)(7)(i), remove ``II.A.l.c.ii.(2)'' and add, in its
place, ``II.A.1.c.ii.(2)''; and
0
k. Add paragraph (k)(8).
0
l. The additions read as follows:
Sec. 265.7 Functions delegated to the Director of the Division of
Supervision and Regulation. [Amended]
* * * * *
(c) * * *
(7) * * *
(v) To acquire shares or assets pursuant to section 4(k) of the
Bank Holding Company Act (12 U.S.C. 1843(k)) without prior Board
approval up to the following thresholds:
(A) $25 million in consideration for a single transaction;
(B) $125 million in consideration over the past 12 months; and
(C) $400 million in consideration over the entire period the
financial holding company is subject to the agreement required by
section 4(m) of the Bank Holding Company Act (12 U.S.C. 1843(m)).
* * * * *
(k) * * *
(1) * * *
(ii) * * *
(G) To approve a request by a Board-regulated institution to make
or change an election, or a choice of treatment, under Sec.
217.1(g)(2)(ii) of Regulation Q (12 CFR 217.1(g)(2)(ii)); and
(H) To review and adjust estimated total consolidated assets under
the definition of ``insurance bank holding company'' or ``insurance
savings and loan holding company'' in Sec. 217.2 of Regulation Q (12
CFR 217.2) or under Sec. 217.601(b)(2) of Regulation Q (12 CFR
217.601(b)(2)).
* * * * *
(8) Delegations regarding the Building Block Approach in subpart J
of Regulation Q (12 CFR part 217, subpart J).
(i) [Reserved]
(ii) After consultation with the General Counsel:
(A) To require a supervised insurance organization to exclude all
or a portion of a particular company capital element from building
block available capital, to approve the inclusion on a permanent or
temporary basis of a capital resource in building block available
capital, to adjust the building block capital requirement and building
block available capital of a supervised insurance organization, or to
require a supervised insurance organization to take certain actions to
better reflect the risk profile of an inventory company or the
supervised insurance organization, under Sec. 217.601(d) of Regulation
Q (12 CFR 217.601(d));
(B) To require a supervised insurance organization to apply an
alternative treatment to a treatment otherwise required by subpart J of
Regulation Q (12 CFR part 217 subpart J) under Sec. 217.601(d)(4) of
Regulation Q (12 CFR 217.601(d)(4));
(C) To approve a request to exercise a call option on an instrument
under Sec. 217.608(a)(1)(v)(A) or Sec. 217.608(a)(2)(iv)(A) of
Regulation Q (12 CFR 217.608(a)(1)(v)(A) or 217.608(a)(2)(iv)(A));
(D) To approve a request to redeem or repurchase an instrument
under 217.608 (a)(1)(vi) or Sec. 217.608(a)(2)(v) of Regulation Q (12
CFR 217.608(a)(1)(vi) or 217.608(a)(2)(v)); and
(E) To approve a request to include in building block available
capital an instrument issued by a company in a supervised insurance
organization under Sec. 217.608(g) of Regulation Q (12 CFR
217.608(g)).
* * * * *
0
4. In Sec. 265.8:
0
a. In paragraph (c)(2), remove ``(15 U.S.C. 1693q),'' and add, in its
place, ``(15 U.S.C. 1693q) and''; and
0
b. In paragraph (c)(3), remove ``(15 U.S.C. 1691d(f)'' and add, in its
place, ``(15 U.S.C. 1691d(f))''.
0
5. In Sec. 265.10:
0
a. Redesignate paragraph (b) as paragraph (c); and
0
b. Add new paragraph (b).
The addition reads as follows:
Sec. 265.10 Functions delegated to the Director of the Division of
Monetary Affairs.
* * * * *
(b) Regulation D. With the concurrence of the General Counsel, to
approve the annual indexation of the reserve requirement exemption
amount and low reserve tranche amount 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.
* * * * *
By order of the Board of Governors of the Federal Reserve
System, acting through the Secretary of the Board under delegated
authority.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2023-25387 Filed 11-16-23; 8:45 am]
BILLING CODE 6201-01-P