[Unified Agenda of Federal Regulatory and Deregulatory Actions]
[Federal Reserve System Semiannual Regulatory Agenda]
[From the U.S. Government Printing Office, www.gpo.gov]


[[Page 26559]]

Part LVI





Federal Reserve System





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Semiannual Regulatory Agenda

[[Page 26560]]



FEDERAL RESERVE SYSTEM (FRS)                                           


  



_______________________________________________________________________

FEDERAL RESERVE SYSTEM

12 CFR Ch. II

Semiannual Regulatory Flexibility Agenda

AGENCY: Board of Governors of the Federal Reserve System.

ACTION:  Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The Board is issuing this agenda under the Regulatory 
Flexibility Act and the Board's Statement of Policy Regarding Expanded 
Rulemaking Procedures. The Board anticipates having under consideration 
regulatory matters as indicated below during the period April 1 through 
October 1, 2001. The next agenda will be published in October 2001.

DATES:  Comments about the form or content of the agenda may be 
submitted any time during the next 6 months.

ADDRESSES:  Comments should be addressed to Jennifer J. Johnson, 
Secretary of the Board, Board of Governors of the Federal Reserve 
System, Washington, DC 20551.

FOR FURTHER INFORMATION CONTACT: A staff contact for each item is 
indicated with the regulatory description below.

SUPPLEMENTARY INFORMATION:  The Board is publishing its April 2001 
agenda as part of the April 2001 Unified Agenda of Federal Regulatory 
and Deregulatory Actions, which is coordinated by the Office of 
Management and Budget under Executive Order 12866. The agenda also 
identifies rules the Board has selected for review under section 610(c) 
of the Regulatory Flexibility Act, and public comment is invited on 
those entries. Participation by the Board in the Unified Agenda is on a 
voluntary basis.

    The Board's agenda is divided into three sections. The first, 
Proposed Rule Stage, reports on matters the Board may consider for 
public comment during the next 6 months. The second section, Final 
Rule Stage, reports on matters that have been proposed and are 
under Board consideration. A third section, Completed Actions, 
reports on regulatory matters the Board has completed or is not 
expected to consider further. Matters begun and completed between 
issues of the agenda have not been included.

    A dot () preceding an entry indicates a new matter that 
was not a part of the Board's previous agenda and which the Board 
has not completed.

 Barbara R. Lowrey,

Associate Secretary of the Board.

                                   Federal Reserve System--Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4308        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC73
            System..............................................................................
4309        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC78
            System; and Regulation Y -- Bank Holding Companies and Change in Bank Control.......
4310        Regulation H: -- Membership of State Banking Institutions in the Federal Reserve         7100-AC80
            System; and Regulation Y: -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1084).............................................................
4311        Regulation: T -- Credit by Brokers and Dealers; Regulation: U -- Credit by Banks;        7100-AC45
            and Regulation: X -- Borrowers of Securities Credit (Docket Number: R-0995).........
4312        Regulation: Y -- Bank Holding Companies and Change in Bank Control..................     7100-AC66
4313        Applicability of Sections 23A and 23B of the Federal Reserve Act to Transactions         7100-AC63
            Between Insured Depository Institutions and Their Affiliates........................
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4314        Regulation: B -- Equal Credit Opportunity (Docket Number: R-1008) (Section 610           7100-AC54
            Review).............................................................................
4315        Regulation: B -- Equal Credit Opportunity; and Regulation: Z -- Truth in Lending         7100-AC46
            (Docket Numbers: R-1040 and R-1043).................................................
4316        Regulation: C -- Home Mortgage Disclosure (Docket Number: R-1001)...................     7100-AC51
4317        Regulation: D -- Reserve Requirements of Depository Institutions (Docket Number: R-      7100-AC11
            0956)...............................................................................
4318        Regulation: E -- Electronic Fund Transfers (Docket Numbers: R-0919 and R-1041)......     7100-AC06
4319        Regulation: E -- Electronic Funds Transfer (Docket Number: R-1077)..................     7100-AC67
4320        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC69
            System (Docket Number: R-1064)......................................................
4321        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AB77
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1055).............................................................
4322        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC13
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-0930).............................................................
4323        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC75
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1087).............................................................

[[Page 26561]]

 
4324        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC76
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1085).............................................................
4325        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC77
            System; and Regulation: Y -- Bank Holding Companies and Change in Bank Control
            (Docket Number: R-1080).............................................................
4326        Regulation: K -- International Banking Operations (Docket Number: R-0994)...........     7100-AC47
4327        Regulation: M -- Consumer Leasing (Docket Number: R-1042)...........................     7100-AC53
4328        Regulation: V -- Fair Credit Reporting (Docket Number: R-1082)......................     7100-AC68
4329        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Numbers:      7100-AC71
            R-1060).............................................................................
4330        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Numbers:      7100-AC65
            R-1065 and R-1097)..................................................................
4331        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC79
            1091)...............................................................................
4332        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC81
            1094)...............................................................................
4333        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Number: R-    7100-AC82
            1092)...............................................................................
4334        Regulation: Z -- Truth in Lending (Docket Number: R-1090)...........................     7100-AC83
4335        Regulation: DD -- Truth in Savings (Docket Number: R-1044)..........................     7100-AC34
----------------------------------------------------------------------------------------------------------------


                                    Federal Reserve System--Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
4336        Regulation: G -- Disclosure and Reporting of CRA-Related Agreements (Docket Number:      7100-AC64
            R-1069).............................................................................
4337        Regulation: H -- Membership of State Banking Institutions in the Federal Reserve         7100-AC62
            System (Docket Number: R-1079)......................................................
4338        Regulation: Y -- Bank Holding Companies and Change in Bank Control (Docket Numbers:      7100-AC70
            R-1057 and R-1062)..................................................................
4339        Regulation: Z -- Truth in Lending (Docket Number: R-1070)...........................     7100-AC74
4340        Applicability of Sections 23A and 23B of the Federal Reserve Act to Transactions         7100-AC42
            Between a Member Bank and Its Subsidiaries (Docket Number: R-0977)..................
4341        Applicability of Section 23A to the Purchase of Securities from Certain Affiliates       7100-AC52
            and to Loans and Extensions of Credit Made by a Member Bank to a Third Party (Docket
            Nos: R-1015 & R-1016)...............................................................
4342        Interagency Guidelines Establishing Standards for Safeguarding Customer Information      7100-AC72
            and Rescission of Year 2000 Standards for Safety and Soundness (Docket Number: R-
            1073)...............................................................................
4343        Section 303 Regulatory Review.......................................................     7100-AC09
----------------------------------------------------------------------------------------------------------------

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FEDERAL RESERVE SYSTEM (FRS)                        Proposed Rule Stage


  



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4308. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 12 USC 1828(t)

CFR Citation: 12 CFR 208

Legal Deadline: None

Abstract: Section 204 of the Gramm-Leach-Bliley Act added a new 
subsection (t) to section 18 of the Federal Deposit Insurance Act 
requiring the Board, in consultation with the Securities and Exchange 
Commission, to establish recordkeeping requirements for state member 
banks and branches and agencies of foreign banks that rely on the 
exceptions from the definition of broker or dealer provided in section 
3(a)(4) or (5) of the Securities Exchange Act of 1934.
The Board anticipates issuing for public comment a rule that would 
implement these recordkeeping requirements. It is not anticipated that 
the proposal would have a significant economic impact on a substantial 
number of small entities subject to the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comments by                     08/00/01

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC73

[[Page 26562]]

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4309. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 24a; 12 USC 36; 12 USC 92a; 12 USC 
93a; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 
USC 481 to 486; 12 USC 601; 12 USC 611; 12 USC 1814; 12 USC 1816; ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: The Board will consider issuing for public comment proposed 
amendments to Regulations H and Y that will take into account the 
implications of the Gramm-Leach-Bliley Act (``GLB Act'') for the 
ability of state member banks to control operations subsidiaries. The 
proposed amendments will also include a series of technical changes to 
Regulation Y necessitated by the GLB Act, as well as a general 
reorganization of Regulation Y. The proposal should not have a 
substantive economic impact on small entities, as its substantive 
portions are expected to liberalize the Board's present rules.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will request comment by   06/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Andrew S. Baer, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-2246

RIN: 7100-AC78
_______________________________________________________________________




4310.  REGULATION H: -- MEMBERSHIP OF STATE BANKING INSTITUTIONS 
IN THE FEDERAL RESERVE SYSTEM; AND REGULATION Y: -- BANK HOLDING 
COMPANIES AND CHANGE IN BANK CONTROL(DOCKET NUMBER: R-1084)

Priority: Substantive, Nonsignificant

Legal Authority: Not Yet Determined

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In October 2000, the Board approved issuing for public 
comment an advance notice of proposed rulemaking on the possible 
development of a simplified capital framework for non-complex banking 
organizations (65 FR 66193, November 3, 2000). The options outlined in 
the proposal include a simplified risk-based framework, a leverage 
ratio-only approach, or a modified leverage ratio approach. Such a 
framework could relieve the regulatory burden associated with the 
existing capital rules for many non-complex domestic banking 
institutions. The main objective of this proposal is to obtain 
preliminary views from the industry and the public regarding such a 
framework. Following review of the public comments, the Board will 
decide whether to move forward with a more detailed proposal.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/03/00                    65 FR 66193
Further Board action by         08/00/01

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: David Adkins, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-5259

RIN: 7100-AC80
_______________________________________________________________________




4311. REGULATION: T -- CREDIT BY BROKERS AND DEALERS; REGULATION: U -- 
CREDIT BY BANKS; AND REGULATION: X -- BORROWERS OF SECURITIES CREDIT 
(DOCKET NUMBER: R-0995)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 78G, Securities Exchange Act of 1934, as 
amended

CFR Citation: 12 CFR 220; 12 CFR 221; 12 CFR 224

Legal Deadline: None

Abstract: As part of the regular review of its regulations and in 
accordance with requirements of section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994, and section 610(c) 
of the Regulatory Flexibility Act of 1994, the Board is conducting a 
review of its margin regulations. In order to complete this review, the 
Board approved issuing for public comment an advance notice of proposed 
rulemaking in December 1997 (63 FR 2840, January 16, 1998). The advance 
notice highlights issues raised by commenters in response to previous 
requests for comment that had not been addressed by the Board in the 
course of its periodic review. It also provides an opportunity to 
further harmonize the treatment of bank and nonbank lenders under the 
revised Regulation U adopted by the Board at the same time as the 
advance notice. The advance notice also invites comment on all areas of 
the regulations.
Following review of the public comments, the Board is expected to take 
further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/16/98                     63 FR 2840
Further Board action by         08/00/01

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: Scott J. Holz, Counsel, Federal Reserve System, Legal 
Division, Washington, DC 20429
Phone: 202 452-2966

RIN: 7100-AC45
_______________________________________________________________________




4312. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1844(b)

CFR Citation: 12 CFR 225

Legal Deadline: None

Abstract: Title I of the Gramm-Leach-Bliley Act (``GLB Act'') makes a 
number of miscellaneous amendments to sections 3, 4, and 5 of the Bank 
Holding Company Act of 1956 (``BHC Act'') and adds a new section 10A to 
the BHC Act. These amendments, among other things, prohibit the Board 
from determining that new activities are closely related to banking 
under section 4(c)(8) of the BHC Act; streamline the Board's reporting, 
examination, and other supervisory authority over bank holding 
companies and their subsidiaries; reduce the restrictions applicable to 
companies that control ``nonbank banks'' that are

[[Page 26563]]

exempt from the nonbanking restrictions of the BHC Act under section 
4(f) of that Act; and repeal the savings bank life insurance provisions 
currently set forth in section 3(g) of the BHC Act.
The Board will consider issuing for public comment amendments to 
Regulation Y to implement the provisions of the GLB Act affecting the 
BHC Act that are not addressed in proposed rules described elsewhere in 
the Board's agenda. It is not anticipated that the proposals will have 
a significant economic impact on a substantial number of small entities 
subject to the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider requesting 
comments by                     08/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC66
_______________________________________________________________________




4313. APPLICABILITY OF SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT 
TO TRANSACTIONS BETWEEN INSURED DEPOSITORY INSTITUTIONS AND THEIR 
AFFILIATES

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 12 USC 371c; 12 USC 371c-1

CFR Citation: 12 CFR 223

Legal Deadline: None

Abstract: In response to passage of the Gramm-Leach-Bliley Act, the 
Board will consider issuing for public comment a new regulation to 
implement sections 23A and 23B of the Federal Reserve Act. Sections 23A 
and 23B regulate transactions between insured depository institutions 
and their affiliates. The regulation will codify existing 
interpretations and may implement several pending proposals. (See RIN: 
7100-AC42 and RIN: 7100-AC52). The proposed regulation will also 
request comment on the treatment of derivatives and intra-day credit 
exposures between insured depository institutions and their affiliates. 
It is not expected that any new proposal will have a significant 
economic impact on a substantial number of small entities that are 
subject to the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board will consider proposals by05/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Pamela G. Nardolilli, Senior Counsel, Federal Reserve 
System, Legal Division, Washington, DC 20429
Phone: 202 452-3289

RIN: 7100-AC63
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                           Final Rule Stage


  



_______________________________________________________________________




4314. REGULATION: B -- EQUAL CREDIT OPPORTUNITY (DOCKET NUMBER: R-1008) 
(SECTION 610 REVIEW)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1691

CFR Citation: 12 CFR 202

Legal Deadline: None

Abstract: In March 1998, pursuant to requirements of section 303 of the 
Riegle Community Development and Regulatory Improvement Act of 1994, 
section 610(c) of the Regulatory Flexibility Act of 1994, and section 
2222 of the Economic Growth and Regulatory Paperwork Reduction Act of 
1996, the Board approved issuing for public comment an advance notice 
of proposed rulemaking for Regulation B (63 FR 12326, March 12, 1998) 
which implements the Equal Credit Opportunity Act (ECOA). The ECOA 
makes it unlawful for creditors to discriminate against an applicant in 
any aspect of a credit transaction on the basis of race, color, 
religion, national origin, gender, marital status, age, and other 
specified bases.
In June 1999, following review of the public comments on the advance 
notice, the Board approved for public comment a proposed rule amending 
Regulation B (64 FR 44582, August 16, 1999). Major revisions in the 
proposal include removing the general prohibition against obtaining 
information about applicant characteristics such as national origin or 
gender, although such information still generally may not be considered 
in extending credit; adding a disclosure requirement for creditors that 
voluntarily collect data on applicant characteristics; requiring 
creditors to retain certain records for preapproved credit 
solicitations; and extending the record retention period for most 
business credit applications.
Based on the regulatory flexibility analysis, it is not expected that 
the proposal will have a significant impact on small entities. Although 
there would be a new disclosure requirement for creditors that 
voluntarily request information about applicant characteristics, a 
model form is proposed to ease compliance. Also, there is a new 
requirement to retain certain records for preapproved credit 
solicitations. For business reasons, many institutions already retain 
some of the preapproved credit solicitation information being sought. 
In addition, compliance burdens should be minimized by the fact that 
creditors may use a variety of methods, such as electronic storage, to 
retain records. Following review of the public comments, the Board is 
expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
advance notice                  03/12/98                    63 FR 12326
Board requested comment on 
proposed rule                   08/16/99                    64 FR 44582
Further Board action by         12/00/01

Regulatory Flexibility Analysis Required: Yes

[[Page 26564]]

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Natalie E. Taylor, Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC54
_______________________________________________________________________




4315. REGULATION: B -- EQUAL CREDIT OPPORTUNITY; AND REGULATION: Z -- 
TRUTH IN LENDING (DOCKET NUMBERS: R-1040 AND R-1043)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1601 et seq; 12 USC 4301 et seq

CFR Citation: 12 CFR 202; 12 CFR 213; 12 CFR 226; 12 CFR 230

Legal Deadline: None

Abstract: In March 1998, the Board issued for public comment proposals 
to amend its consumer regulations, B (Equal Credit Opportunity) and Z 
(Truth in Lending), to permit electronic communications to substitute 
generally for oral or written disclosures documentation and notices 
required under the individual regulations (63 FR 14548, March 25, 
1998). Comment was also requested on similar amendments to Regulations 
M (Consumer Leasing) and DD (Truth in Savings) described in separate 
entries in the Agenda (see Docket Numbers: R-1042 and R-1044). At the 
same time, similar amendments to Regulation E, proposed as part of the 
Board's overall review of its regulations as required by section 303 of 
the Riegle Community Development and Regulatory Improvement Act of 
1994, were adopted as an interim rule (see Docket Number: R-1002; RIN: 
7100-AC06). The Board identified the use of electronic communication 
between consumers and financial institutions as an area that offered an 
opportunity to reduce regulatory compliance burden without adversely 
affecting consumer protections.
In August 1999, based on comments received in response to the March 
proposals, the Board approved publishing for comment additional 
proposals on electronic communications to provide more detailed 
guidance on using electronic communications to deliver disclosures to 
consumers and others (64 FR 46988, September 14, 1999).
On June 30, 2000, the President signed into law The Electronic 
Signatures in Global and National Commerce Act (E-Signature Act), which 
became effective October 1, 2000. The E-Signature Act generally 
provides that records and signatures may not be denied legal effect 
solely because they are in electronic form. Under the Act, disclosures 
that must be provided to consumers in writing may be provided 
electronically if the consumer affirmatively consents after being 
provided specified information. Although no agency is required to issue 
regulations to implement the E-Signature Act, the Board may use its 
existing rulewriting authority under the financial services laws to 
interpret how the E-Signature Act affects the requirements imposed by 
those laws.
The E-Signature Act adopted into law some elements of the Board's 
regulatory proposal governing electronic disclosures. Some provisions 
in the Board's proposal, however, are modified or preempted by the Act, 
while other provisions, which are designed to ensure effective delivery 
of electronic disclosures, were not addressed by the E-Signature Act 
but are consistent with that Act and could be issued as final rules. 
The Board is expected to consider what further action is appropriate in 
light of the E-Signature Act.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14548
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 46988
Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Natalie E. Taylor, Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC46
_______________________________________________________________________




4316. REGULATION: C -- HOME MORTGAGE DISCLOSURE (DOCKET NUMBER: R-1001)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 2801

CFR Citation: 12 CFR 203

Legal Deadline: None

Abstract: In March 1998, the Board approved issuing for public comment 
an advance notice of proposed rulemaking for Regulation C, which 
implements the Home Mortgage Disclosure Act (HMDA) (63 FR 12329, March 
12, 1998). Regulation C requires most mortgage lenders located in 
metropolitan areas to report annually to Federal agencies and disclose 
to the public information about their home purchase and home 
improvement lending activity. The advance notice sought to identify 
ways in which the Board could revise Regulation C to address 
technological and other developments; better balance consumer 
protections and industry burden; and delete obsolete provisions. The 
Board solicited comment on several specific issues, while also 
soliciting comment generally on potential revisions to the regulation.
Based on the comments and the Board's own analysis, the Board issued 
for public comment proposed amendments to Regulation C (65 FR 78656, 
December 15, 2000). These amendments would simplify the definition of a 
``refinancing,'' require lenders to report requests for preapprovals, 
simplify the definition of a reportable home improvement loan, require 
lenders to report home equity lines of credit, and make other changes 
to Regulation C.
It is not anticipated that the proposed rule would have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation. Following review of the public comments, the 
Board is expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on ANPR 03/12/98                    63 FR 12329
Board requested comment on 
proposed rule                   12/15/00                    65 FR 78656
Further Board action by         12/00/01

Regulatory Flexibility Analysis Required: Yes

[[Page 26565]]

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: James Mann, Senior Attorney, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC51
_______________________________________________________________________




4317. REGULATION: D -- RESERVE REQUIREMENTS OF DEPOSITORY INSTITUTIONS 
(DOCKET NUMBER: R-0956)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 611; 12 USC 3105; 12 USC 248(a); 12 USC 248(c); 
12 USC 371a; 12 USC 461; 12 USC 601

CFR Citation: 12 CFR 204

Legal Deadline: None

Abstract: In December 1996, the Board issued for public comment a 
proposed rule that would revise and clarify the definition of ``savings 
deposit'' consistent with comments received in connection with the 
Board's June 1996 proposal to simplify Regulation D. The proposal would 
also make conforming changes to the definition of ``transaction 
account'' (61 FR 96054, December 31, 1996). No substantive change in 
the regulation is intended. It is not expected that the proposal will 
have a significant adverse impact upon a substantial number of small 
entities. Following review of the public comments, the Board is 
expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/96                    61 FR 69054
Further Board action by         07/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Heatherun Allison, Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-3565

RIN: 7100-AC11
_______________________________________________________________________




4318. REGULATION: E -- ELECTRONIC FUND TRANSFERS (DOCKET NUMBERS: R-0919 
AND R-1041)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1693 et seq

CFR Citation: 12 CFR 205

Legal Deadline: None

Abstract: In May 1996, the Board issued for public comment proposed 
amendments to Regulation E imposing modified requirements on stored-
value products in systems that track individual transactions, cards, or 
consumers and providing an exemption for cards on which a maximum value 
of $100 can be stored (Docket Number: R-0919; 61 FR 19696, May 2, 
1996).
The Board also proposed, and subsequently adopted in September 1998, an 
extension of the error resolution time limits for new accounts. The 
proposal also included permitting electronic communications to 
substitute generally for oral or written disclosures, documentation, 
and notices required under Regulation E.
The proposals were part of the Board's overall review of its 
regulations as required by section 303 of the Riegle Community 
Development and Regulatory Improvement Act of 1994 and section 610(c) 
of the Regulatory Flexibility Act of 1994. It is not expected that the 
proposals would have a significant economic impact on small 
institutions.
In March 1998, following review of the public comments, the Board 
issued an interim rule, with request for comments, to permit electronic 
communications to substitute for disclosures, documentation, and 
notices under Regulation E (Docket Number: R-1002; 63 FR 14528, March 
25, 1998).
In August 1999, based on public comments received, the Board approved 
publishing an additional proposal for comment on the electronic 
communications rule to provide more detailed guidance on the use of 
electronic communications to deliver disclosures to consumers (Docket 
Number: R-1041; 64 FR 49699, September 14, 1999). The interim rule 
remains in effect until Board consideration of a final rule.
On June 30, 2000, the President signed into law The Electronic 
Signatures in Global and National Commerce Act (E-Signature Act), which 
became effective October 1, 2000. The E-Signature Act generally 
provides that records and signatures may not be denied legal effect 
solely because they are in electronic form. Under the Act, disclosures 
that must be provided to consumers in writing may be provided 
electronically if the consumer affirmatively consents after being 
provided specified information. Although no agency is required to issue 
regulations to implement the E-Signature Act, the Board may use its 
existing rulewriting authority under the financial services laws to 
interpret how the E-Signature Act affects the requirements imposed by 
those laws.
The E-Signature Act adopted into law some elements of the Board's 
regulatory proposal governing electronic disclosures. Some provisions 
in the Board's proposal, however, are modified or preempted by the Act, 
while other provisions, which are designed to ensure effective delivery 
of electronic disclosures, were not addressed by the E-Signature Act 
but are consistent with that Act and could be issued as final rules. 
The Board is expected to consider what further action is appropriate in 
light of the E-Signature Act.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/02/96                    61 FR 19696
Board adopted interim rule on 
electronic communications       03/25/98                    63 FR 14528
Board adopted final rule on new 
accounts                        09/29/98                    63 FR 52115
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49699
Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: John C. Wood, Counsel, Federal Reserve System, Division 
of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC06
_______________________________________________________________________




4319. REGULATION: E -- ELECTRONIC FUNDS TRANSFER (DOCKET NUMBER: R-1077)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1693 et seq

CFR Citation: 12 CFR 205

Legal Deadline: None

[[Page 26566]]

Abstract: In November 1999, the Congress amended the Electronic Funds 
Transfer Act as a part of the Gramm-Leach-Bliley Act (``GLB Act''). The 
purpose of the amendments is to require disclosure of automatic 
transfer machine (ATM) fees imposed by ATM operators on consumers who 
hold accounts at other financial institutions.
In July 2000, the Board issued for public comment proposed amendments 
to Regulation E to implement the statutory provisions of the GLB Act 
(65 FR 44481, July 18, 2000). Following review of the public comments, 
the Board is expected to take further action. The proposals are not 
expected to have a significant economic impact on small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/18/00                    65 FR 44481
Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: Undetermined

Government Levels Affected: None

Agency Contact: John C. Wood, Counsel, Federal Reserve System, Division 
of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC67
_______________________________________________________________________




4320. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-1064)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 335; 12 USC 1835a

CFR Citation: 12 CFR 208

Legal Deadline: None

Abstract: In March 2000, the Board approved an interim rule with 
request for public comment amending Regulation H to implement section 
121 of the Gramm-Leach-Bliley Act for state member banks (65 FR 14810, 
March 20, 2000). Section 121 in part authorizes state member banks to 
control, or hold an interest in, financial subsidiaries so as to 
conduct certain activities that are financial in nature or incidental 
to a financial activity. Following review of the public comments, the 
Board is expected to take action on a final rule.
The Board will also consider amending section 208.7 of Regulation H 
(deposit production offices) to conform its definitional provisions to 
section 106 of the Gramm-Leach-Bliley Act in conjunction with parallel 
activities by the other banking agencies. In addition, the Board will 
consider issuing a proposed rule in place of an existing Miscellaneous 
Interpretation (12 CFR 250.141) relating to member bank purchases of 
stock in operations subsidiaries to update its provisions and conform 
to section 121.
It is not anticipated that the proposals will have a significant 
economic impact on a substantial number of small entities subject to 
the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/20/00                    65 FR 14810
Further Board action by         06/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Michael J. O'Rourke, Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-3288

RIN: 7100-AC69
_______________________________________________________________________




4321. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1055)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 
338; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC 
611; 12 USC 1814; 12 USC 1817(j)(13); 12 USC 1818; 12 USC 1823(j); 12 
USC 1828(o); 12 USC 1831i; ...

CFR Citation: 12 CFR 208 app A; 12 CFR 225 app A

Legal Deadline: None

Abstract: In November 1997, the Board, the Comptroller of the Currency, 
the Federal Deposit Insurance Corporation, and the Office of Thrift 
Supervision (``the agencies'') issued for public comment proposals to 
use credit ratings from nationally recognized statistical rating 
organizations to determine the capital treatment for recourse 
obligations, direct credit substitutes, and senior asset-backed 
securities (62 FR 59944, November 5, 1997). In February 2000, based on 
the public comments, the Board and the other agencies approved issuing 
for further comment a proposal to clarify and revise the regulatory 
capital treatment of securitized transactions (65 FR 12320, March 8, 
2000). The proposal would treat recourse obligations and direct credit 
substitutes more consistently than the agencies' current risk-based 
capital standards.
Small entities would be affected by the proposals only to the extent 
that they engage in extending recourse arrangements and direct credit 
substitutes or purchasing asset-backed securities. It is not expected 
that the proposals will have a significant economic impact on small 
institutions. Following review of the public comments, the Board is 
expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         11/05/97                    62 FR 59944
Board approved requesting 
additional comment              03/08/00                    65 FR 12320
Further Board action by         06/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Thomas R. Boemio, Senior Supervisory Financial Analyst, 
Federal Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2982

RIN: 7100-AB77
_______________________________________________________________________




4322. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-0930)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 36; 12 USC 248(a); 12 USC 248(c); 12 USC 321 to 
338a; 12 USC 371d; 12 USC 461; 12 USC 481 to 486; 12 USC 601; 12 USC

[[Page 26567]]

611; 12 USC 1814; 12 USC 1823(j); 12 USC 1828(o); 12 USC 1831(o); 12 
USC 1831p-1; 12 USC 3105; ...

CFR Citation: 12 CFR 208 app A

Legal Deadline: None

Abstract: In August 1996, the Board issued for public comment a 
proposal to revise the risk-based capital treatment for certain 
collateralized transactions (61 FR 42565, August 16, 1996). Under the 
Board's existing risk-based capital treatment, the portion of a 
transaction that is supported by qualifying collateral (that is, cash 
or OECD government securities) is risk-weighted at 20 percent. 
Transactions that are fully supported by collateral with a positive 
margin may be eligible for a zero percent risk weight. Generally, the 
proposal would permit a portion of a transaction that is fully 
supported with a positive margin of collateral to be eligible for a 
zero percent risk weight. The portion that is to be continuously 
collateralized must be specified by the parties.
This proposal was developed on an interagency basis and, if adopted, 
would eliminate one of the substantive differences among the agencies 
with regard to the risk-based capital treatment for collateralized 
transactions. It would implement part of the Riegle Community 
Development and Regulatory Improvement Act of 1994, which requires the 
agencies to make uniform regulations and guidelines implementing common 
supervisory policies. The effect of the proposal would be to allow 
institutions to hold less capital for certain collateralized 
transactions. It is not expected to have a significant economic impact 
on a substantial number of small entities.
Following review of the public comments and development of an inter-
agency final rule, the Board is expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/16/96                    61 FR 42565
Further Board action by         10/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: John Connolly, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621

RIN: 7100-AC13
_______________________________________________________________________




4323. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1087)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 
248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 
USC 1817(j)(13); 12 USC 1818; 12 USC 1818(o); 12 USC 1831i; 12 USC 
1831p-1; 12 USC 1843(c)(8); ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In December 2000, the Board approved issuing for public 
comment proposed amendments to Regulations H and Y that would 
effectively reduce the capital requirement for certain securities 
borrowing transactions (65 FR 75856, December 5, 2000). The proposed 
amendments would recognize the historically low risk of these 
transactions and bring the capital requirements for U.S. banking 
organizations into better alignment with the capital requirements of 
other U.S. and non-U.S. regulators of financial institutions. The 
proposed amendments would have little or no effect on small banking 
organizations subject to the Board's regulation, as securities 
borrowing activities are concentrated in a relatively small number of 
very large banking organizations. Following review of the public 
comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/05/00                    65 FR 75856
Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: David Adkins, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-5259

RIN: 7100-AC75
_______________________________________________________________________




4324. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1085)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 
248(a); 12 USC 248(c); 12 USC 321 to 338a; 12 USC 371d; 12 USC 461; 12 
USC 1817(j)(13); 12 USC 1818; 12 USC 1818(o); 12 USC 1831i; 12 USC 
1831p-1; 12 USC 1843(c)(8); ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In December 2000, the Board approved requesting public 
comment on proposed amendments to the Board's regulatory capital 
guidelines for banks and bank holding companies that would apply a 20 
percent risk weight to claims on, and claims guaranteed by, qualifying 
securities firms (65 FR 76180, December 6, 2000). The proposed rule is 
consistent with an amendment to the Basel Accord adopted by the Basel 
Committee on Banking Supervision in April 1998. It would reduce the 
risk weight from 100 percent to 20 percent applied to claims on, and 
claims guaranteed by, certain securities firms incorporated in 
countries that are members of the Organization for Economic Cooperation 
and Development, subject to certain prudential requirements. It is not 
anticipated that the proposal will have a significant economic impact 
on a substantial number of small institutions. Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested public comment  12/06/00                    65 FR 76180
Further Board action by         07/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: John Connolly, Supervisory Financial Analyst, Federal

[[Page 26568]]

Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-3621

RIN: 7100-AC76
_______________________________________________________________________




4325. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM; AND REGULATION: Y -- BANK HOLDING COMPANIES AND 
CHANGE IN BANK CONTROL (DOCKET NUMBER: R-1080)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 24; 12 USC 36; 12 USC 92a; 12 USC 93a; 12 USC 
248(a); 12 USC 248(c); 15 USC 78b; 15 USC 781(b); 15 USC 781(g); 15 USC 
781(i); 31 USC 5318; 42 USC 4012a; 42 USC 4104a; ...

CFR Citation: 12 CFR 208; 12 CFR 225

Legal Deadline: None

Abstract: In September 2000, the Board approved issuing for public 
comment proposed amendments to Regulations H and Y to amend the Tier 1 
leverage and risk-based capital guidelines for residual interests for 
all state member banks and bank holding companies (65 FR 57993, 
September 27, 2000). The proposal would better align the capital 
requirements with the risks associated with such assets. It is not 
expected that the amendments would have a significant economic impact 
on a substantial number of small institutions. Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         09/27/00                    65 FR 57993
Further Board action by         09/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Arleen Lustig, Supervisory Financial Analyst, Federal 
Reserve System, Division of Banking Supervision and Regulation
Phone: 202 452-2987

RIN: 7100-AC77
_______________________________________________________________________




4326. REGULATION: K -- INTERNATIONAL BANKING OPERATIONS (DOCKET NUMBER: 
R-0994)

Priority: Substantive, Nonsignificant. Major under 5 USC 801.

Legal Authority: 12 USC 221 et seq; 12 USC 248(i); 12 USC 248(k); 12 
USC 1818; 12 USC 1835a; 12 USC 1841 et seq; 12 USC 3101 et seq; 12 USC 
3109 et seq

CFR Citation: 12 CFR 211

Legal Deadline: None

Abstract: In December 1997, consistent with section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994, the 
International Banking Act of 1978, and section 2222 of the Economic 
Growth and Regulatory Paperwork Reduction Act of 1996, the Board 
reviewed and proposed for public comment a number of changes to 
Regulation K, which governs international banking operations (62 FR 
68424, December 31, 1997). Subpart A of Regulation K governs the 
foreign investments and activities of all member banks. The proposed 
amendments include streamlined foreign branching procedures for U.S. 
banking organizations, authorization of expanded activities in foreign 
branches of U.S. banks, and expansion of the authority of U.S. banking 
organizations to engage in equity dealing and underwriting and to make 
venture capital investments outside the United States. Subpart B of 
Regulation K governs the U.S. activities of foreign banking 
organizations. The proposed amendments include revisions aimed at 
streamlining the applications procedures applicable to foreign banks 
seeking to expand operations in the United States, changes to 
provisions regarding the qualification of certain foreign banking 
organizations for exemption from the nonbanking prohibitions of section 
4 of the Bank Holding Company Act, and implementation of provisions of 
the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 
that affect foreign banks. In addition, a number of technical and 
clarifying amendments to subparts A and B, as well as to subpart C 
which governs export trading companies, and certain amendments to the 
Board's Rules Regarding Delegation of Authority have been proposed. 
Aspects of the proposed rule may have to be reconsidered in light of 
the enactment of the Gramm-Leach-Bliley Act.
The proposed amendments are not expected to have a significant economic 
impact on a substantial number of small entities. Following review of 
the public comments, the Board is expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/31/97                    62 FR 68424
Further Board action by         06/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Kathleen M. O'Day, Associate General Counsel, Federal 
Reserve System, Legal Division, Washington, DC 20429
Phone: 202 452-3786

RIN: 7100-AC47
_______________________________________________________________________




4327. REGULATION: M -- CONSUMER LEASING (DOCKET NUMBER: R-1042)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1667

CFR Citation: 12 CFR 213

Legal Deadline: None

Abstract: In March 1998, the Board approved issuing for public comment 
a proposal to amend Regulation M that would allow lessors to deliver by 
electronic communication the disclosures required by the Consumer 
Leasing Act and the Board's regulation, if the consumer agrees to such 
delivery (63 FR 14538, March 25, 1998). In addition, the proposal 
contained several technical amendments that were subsequently adopted 
in September 1998. In August 1999, based on public comments received in 
response to the March proposal, the Board approved publishing an 
additional proposal for comment to provide more detailed guidance on 
the use of electronic communications to deliver disclosures to 
consumers (64 FR 49713, September 14, 1999).
It is not anticipated that the rule will have any significant impact on 
small entities.
On June 30, 2000, the President signed into law The Electronic 
Signatures in Global and National Commerce Act (E-Signature Act), which 
became effective

[[Page 26569]]

October 1, 2000. The E-Signature Act generally provides that records 
and signatures may not be denied legal effect solely because they are 
in electronic form. Under the Act, disclosures that must be provided to 
consumers in writing may be provided electronically if the consumer 
affirmatively consents after being provided specified information. 
Although no agency is required to issue regulations to implement the E-
Signature Act, the Board may use its existing rulewriting authority 
under the financial services laws to interpret how the E-Signature Act 
affects the requirements imposed by those laws.
The E-Signature Act adopted into law some elements of the Board's 
regulatory proposal governing electronic disclosures. Some provisions 
in the Board's proposal, however, are modified or preempted by the Act, 
while other provisions, which are designed to ensure effective delivery 
of electronic disclosures, were not addressed by the E-Signature Act 
but are consistent with that Act and could be issued as final rules. 
The Board is expected to consider what further action is appropriate in 
light of the E-Signature Act.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14538
Board adopted technical 
amendments                      09/29/98                    63 FR 52107
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49713
Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC53
_______________________________________________________________________




4328. REGULATION: V -- FAIR CREDIT REPORTING (DOCKET NUMBER: R-1082)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1681 et seq

CFR Citation: 12 CFR 222

Legal Deadline: None

Abstract: In 1996, the Congress amended the Fair Credit Reporting Act 
(FCRA) as part of the Consumer Credit Reporting Reform Act. The 
amendments prohibited the federal regulatory agencies from issuing 
implementing regulations. In November 1999, the Congress once again 
amended the FCRA as part of the Gramm-Leach-Bliley Act. The amendments 
lifted the prohibition and directed the Board, the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
and the Office of Thrift Supervision to issue implementing regulations 
jointly.
In October 2000, the agencies issued an initial set of proposed 
regulations for public comment (65 FR 63120, October 20, 2000). The 
proposal is not expected to have a significant economic impact on a 
substantial number of small entities. Following review of the public 
comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         10/20/00                    65 FR 63120
Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: David Stein, Attorney, Federal Reserve System, Division 
of Consumer and Community Affairs
Phone: 202 452-3667

RIN: 7100-AC68
_______________________________________________________________________




4329. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBERS: R-1060)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1972

CFR Citation: 12 CFR 225.7

Legal Deadline: None

Abstract: In February 2000, the Board approved issuing for public 
comment a proposed exception to the anti-tying restrictions of section 
106 of the Bank Holding Company Act Amendments of 1970 and the Board's 
Regulation Y (65 FR 6924, February 11, 2000). The proposed amendment 
would establish a ``safe harbor'' permitting a bank to offer a credit 
card that can be used to make purchases from a retailer affiliated with 
the bank. It is expected that the proposed rule would benefit the 
public by providing consumers with alternative sources of consumer 
credit, and is not expected to have a significant economic impact on a 
substantial number of small business entities. Following review of the 
public comments, the Board is expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         02/11/00                     65 FR 6924
Further Board action by         12/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Andrew S. Baer, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-2246

RIN: 7100-AC71
_______________________________________________________________________




4330. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBERS: R-1065 AND R-1097)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1844(b); 12 USC 1843(k)(4)(H); 12 USC 
1843(k)(7)

CFR Citation: 12 CFR 225

Legal Deadline: None

Abstract: Section 103 of the Gramm-Leach-Bliley Act (``GLB Act'') 
authorizes bank holding companies that qualify as financial holding 
companies to engage in merchant banking activities as described and 
subject to the conditions set forth in section 4(k)(4)(H) of the Bank 
Holding Company Act (``BHC Act''), as amended. In March 2000, the Board 
and the Secretary of the Treasury jointly adopted, on an interim basis, 
and requested public comment on a rule implementing the merchant 
banking provisions of the GLB Act (65 FR 16460, March 28, 2000). In 
January 2001, following review of the public comments, the Board and 
the Secretary of the Treasury jointly adopted a final rule governing 
the merchant banking activities of financial holding

[[Page 26570]]

companies (66 FR 8465, January 31, 2001). The final rule modifies the 
provisions defining when a financial holding company routinely manages 
or operates a portfolio company held under the merchant banking 
authority, modifies the investment thresholds contained in the interim 
rule, and streamlines the rule's recordkeeping and reporting 
requirements.
In March 2000, the Board also issued for public comment proposed 
amendments to its capital guidelines for bank holding companies (Docket 
Number: R-1067) to address the appropriate regulatory capital treatment 
for merchant banking investments and investments in nonfinancial 
companies made under section 4(c)(6) or 4(c)(7) of the BHC Act, section 
211.5(b)(1)(iii) of the Board's Regulation K, section 302(b) of the 
Small Business Investment Act of 1958, or section 24 of the Federal 
Deposit Insurance Act. Following review of the comments on the 
proposal, and after consulting with the Treasury Department and the 
other federal banking agencies, the Board, jointly with the OCC and 
FDIC, in February 2001, requested public comment on a revised capital 
proposal (66 FR 10212, February 14, 2001). The revised proposal would 
apply a series of marginal capital charges on covered equity 
investments that increase with the level of a banking organization's 
overall exposure to equity investments relative to the organization's 
Tier 1 capital. The proposal would apply to merchant banking 
investments held by financial holding companies as well as investments 
in nonfinancial companies by banks and bank holding companies under 
other authorities.
The Board requested public comment on the potential impact of the 
capital proposal on small entities and will carefully consider the 
economic impact of any further actions on small entities subject to the 
Board's regulation. The Board is expected to take action on the revised 
capital proposal following review of the public comments.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment on 
interim and proposed rules      03/28/00                    65 FR 16460
Board adopted interim rule in 
final                           01/31/01                     66 FR 8465
Board requested comment on new 
capital proposal                02/14/01                    66 FR 10212
Further Board action by         08/00/01

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC65
_______________________________________________________________________




4331.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL (DOCKET NUMBER: R-1091)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843

CFR Citation: 12 CFR 225.86

Legal Deadline: None

Abstract: In January 2001, the Board approved requesting public comment 
on a proposed rule amending Regulation Y that would define real estate 
brokerage and real estate management activities as financial in nature 
or incidental to a financial activity and therefore permissible for 
financial holding companies under the Board's Regulation Y (66 FR 307, 
January 3, 2001). The proposal would facilitate the creation of 
diversified financial companies that can offer ``one-stop shopping'' to 
consumers contemplating the purchase or management of real estate. The 
proposal is not expected to have a significant economic impact on a 
substantial number of small business entities. Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/03/01                      66 FR 307
Further Board action by         07/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Mark E. Van Der Weide, Counsel, Federal Reserve System, 
Legal Division, Washington, DC 20551
Phone: 202 452-2263

RIN: 7100-AC79
_______________________________________________________________________




4332.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL (DOCKET NUMBER: R-1094)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843

CFR Citation: 12 CFR 225.86(e)

Legal Deadline: None

Abstract: In December 2000, the Board, jointly with the Department of 
the Treasury, issued interim rules with request for public comment that 
implement section 4(k)(5) of the Bank Holding Company Act and section 
5136A(b)(3) of the Revised Statutes, which were added by the Gramm-
Leach-Bliley Act (66 FR 257, January 3, 2001). The interim rules find 
three general types of activities to be financial in nature or 
incidental to a financial activity, and create a mechanism by which 
financial holding companies, financial subsidiaries of national banks, 
or others may request that the Board or the Secretary of the Treasury, 
respectively, define particular activities within one of the three 
categories. Such activities would therefore be permissible for 
financial holding companies and financial subsidiaries of national 
banks. The rules are not expected to have a significant economic impact 
on a substantial number of small entities. Following review of the 
public comments, the Board will take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         01/03/01                      66 FR 257
Further Board action by         06/00/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Andrew S. Baer, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-2246

RIN: 7100-AC81
_______________________________________________________________________




4333.  REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN 
BANK CONTROL (DOCKET NUMBER: R-1092)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843(k)

[[Page 26571]]

CFR Citation: 12 CFR 225.28; 12 CFR 225.89

Legal Deadline: None

Abstract: In December 2000, the Board issued for public comment a 
proposed rule that would allow all bank holding companies to conduct a 
greater amount of nonfinancial data processing than previously 
authorized (65 FR 80384, December 21, 2000). The proposed rule also 
would allow financial holding companies, as a complementary activity, 
to own companies engaged in certain data processing-related activities, 
such as data storage and Internet and portal hosting. The Board 
anticipates that the proposal would allow bank holding companies to 
provide a wider range of financial products and services to customers 
and would not have a significant economic impact on a substantial 
number of small entities. Following review of the public comments on 
the proposal, the Board anticipates taking further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/21/00                    65 FR 80384
Further Board action by         12/00/01

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Adrianne G. Threatt, Senior Attorney, Federal Reserve 
System, Legal Division
Phone: 202 452-3554

RIN: 7100-AC82
_______________________________________________________________________




4334.  REGULATION: Z -- TRUTH IN LENDING (DOCKET NUMBER: R-1090)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1601 et seq

CFR Citation: 12 CFR 226

Legal Deadline: None

Abstract: In December 2000, the Board approved issuing for public 
comment proposed amendments to the provisions of Regulation Z that 
implement the Home Ownership and Equity Protection Act (HOEPA) (65 FR 
81438, December 26, 2000). HOEPA was enacted in response to evidence of 
abusive lending practices in the home-equity lending market. The 
amendments would (1) broaden the scope of mortgage loans subject to 
HOEPA; (2) prohibit certain acts and practices in connection with home-
secured loans, including rules to restrict creditors from engaging in 
repeated refinancings of their own HOEPA loans over a short period of 
time; (3) strengthen HOEPA's prohibition against extending credit 
without regard to consumers' repayment ability; and (4) enhance 
disclosures for HOEPA-covered loans that consumers receive before 
closing. The proposed rule is expected to benefit the public by 
furthering HOEPA's protections against abusive lending practices. It is 
not expected to have a significant economic impact on a substantial 
number of small business entities. Following review of the public 
comments, the Board is expected to take further action.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         12/26/00                    65 FR 81438
Further Board action by         06/00/01

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC83
_______________________________________________________________________




4335. REGULATION: DD -- TRUTH IN SAVINGS (DOCKET NUMBER: R-1044)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 4301 et seq

CFR Citation: 12 CFR 230

Legal Deadline: None

Abstract: In March 1998, the Board issued for public comment a proposal 
to amend Regulation DD that would allow depository institutions to 
deliver by electronic communication disclosures required by the 
regulation, if the consumer agrees to such delivery (63 FR 14533, March 
25, 1998). In addition, the proposal contained provisions that 
implemented amendments to the Truth in Savings Act as a part of the 
Economic Growth and Regulatory Paperwork Reduction Act of 1996. The 
statutory changes were subsequently adopted in September 1998. It is 
not expected that there will be a significant economic impact on small 
institutions.
In August 1999, based on public comments received on the electronic 
communications proposal, the Board approved publishing an additional 
proposal for comment to provide more detailed guidance on the use of 
electronic communications to deliver disclosures to consumers (64 FR 
49740, September 14, 1999). The Board also approved publishing an 
interim rule permitting the electronic delivery of Regulation DD 
disclosures on periodic statements (Docket Number: R-1003).
On June 30, 2000, the President signed into law The Electronic 
Signatures in Global and National Commerce Act (E-Signature Act), which 
became effective October 1, 2000. The E-Signature Act generally 
provides that records and signatures may not be denied legal effect 
solely because they are in electronic form. Under the Act, disclosures 
that must be provided to consumers in writing may be provided 
electronically if the consumer affirmatively consents after being 
provided specified information. Although no agency is required to issue 
regulations to implement the E-Signature Act, the Board may use its 
existing rulewriting authority under the financial services laws to 
interpret how the E-Signature Act affects the requirements imposed by 
those laws.
The E-Signature Act adopted into law some elements of the Board's 
regulatory proposal governing electronic disclosures. Some provisions 
in the Board's proposal, however, are modified or preempted by the Act, 
while other provisions, which are designed to ensure effective delivery 
of electronic disclosures, were not addressed by the E-Signature Act 
but are consistent with that Act and could be issued as final rules. 
The Board is expected to consider what further action is appropriate in 
light of the E-Signature Act.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         03/25/98                    63 FR 14533
Board adopted statutory changes 09/29/98                    63 FR 52106
Board approved publishing 
additional proposal on 
electronic communications       09/14/99                    64 FR 49740

[[Page 26572]]

Further Board action by         04/00/01

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Jane Ahrens, Senior Counsel, Federal Reserve System, 
Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC34
_______________________________________________________________________


FEDERAL RESERVE SYSTEM (FRS)                          Completed Actions


  



_______________________________________________________________________




4336. REGULATION: G -- DISCLOSURE AND REPORTING OF CRA-RELATED 
AGREEMENTS (DOCKET NUMBER: R-1069)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1831y

CFR Citation: 12 CFR 228

Legal Deadline: None

Abstract: In May 2000, the Board, jointly with the other federal 
banking agencies, issued for public comment a proposed Regulation G 
which would implement the Community Reinvestment Act of 1977 (``CRA'') 
sunshine requirements of Section 711 of the Gramm-Leach-Bliley Act (65 
FR 31962, May 19, 2000). Section 711 requires insured depository 
institutions (and their affiliates) and nongovernmental entities or 
persons that enter into agreements that relate to the CRA and that meet 
other criteria to (i) make the agreements available to the public and 
the appropriate federal banking agency and (ii) file annual reports 
concerning the agreements with the appropriate federal banking agency.
In December 2000, following review of the public comments, the Board 
adopted a final rule clarifying the types of agreements that are, and 
are not, subject to the disclosure and reporting requirements of 
section 711 and the rule (66 FR 2052, January 10, 2001). The final rule 
also includes a number of provisions designed to reduce the burden 
imposed on the parties to covered agreements, including entities 
subject to the Board's regulation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/19/00                    65 FR 31962
Board adopted proposal          01/10/01                     66 FR 2052

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Kieran Fallon, Senior Counsel, Federal Reserve System, 
Legal Division
Phone: 202 452-5270

RIN: 7100-AC64
_______________________________________________________________________




4337. REGULATION: H -- MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE 
FEDERAL RESERVE SYSTEM (DOCKET NUMBER: R-1079)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1831x

CFR Citation: 12 CFR 208

Legal Deadline: Final, Statutory, November 12, 2000.

Abstract: In August 2000, the Board approved issuing for public comment 
proposals to implement section 305 of the Gramm-Leach-Bliley Act which 
requires the federal banking agencies to adopt customer protection 
regulations that apply to the retail sales practices, solicitations, 
advertising, or offers of any insurance product by any depository 
institution or any person engaged in such activities at an office of a 
depository institution or on behalf of the institution (65 FR 50881, 
August 21, 2000). The regulation addresses: tying and coercive sales 
practices, disclosures and advertising, separation of routine deposit 
taking from insurance product activity, licensing and qualifications, 
nondiscrimination against victims of domestic violence, and consumer 
grievance procedures. Section 305 provides that the federal banking 
agencies may in certain circumstances determine that state laws are 
preempted by the agencies' regulations.
In November 2000, following review of the public comments, the Board 
adopted a final rule that modified the proposed regulation by 
clarifying and limiting the scope of insurance sales that are subject 
to the regulation, by providing some adjustments in the way the 
required disclosures and the consumer acknowledgement may be made where 
sales take place by mail and telephone, and by providing for a delayed 
effective date (65 FR 75822, December 4, 2000). Based on available data 
the Board was unable to determine whether the proposals will have a 
significant economic impact on a substantial number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         08/21/00                    65 FR 50881
Board adopted proposal          12/04/00                    65 FR 75822

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: State

Agency Contact: Richard M. Ashton, Associate General Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3750

RIN: 7100-AC62
_______________________________________________________________________




4338. REGULATION: Y -- BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(DOCKET NUMBERS: R-1057 AND R-1062)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 1843

CFR Citation: 12 CFR 225

Legal Deadline: Final, Statutory, March 11, 2000.

Abstract: In December 2000, following review of the public comments the 
Board approved a final rule amending Regulation Y to implement various 
financial holding company (``FCH'') provisions of the Gramm-Leach-
Bliley Act (``GLB Act'') (66 FR 400 January 3, 2001). The rule sets 
forth the capital, managerial, and Community Reinvestment Act criteria 
that a bank holding company or foreign bank must

[[Page 26573]]

meet and the procedures it must follow in order to qualify as an FHC, 
and enumerates the consequences if an FHC subsequently ceases to meet 
any applicable requirement. The rule also lists the activities that are 
permissible for an FHC to conduct either directly or through a non-
depository institution subsidiary. Finally, the rule sets forth 
procedures for requesting the Board to authorize FHCs to engage in 
additional activities that the Board determines are financial in nature 
or incidental or complementary to a financial activity. The Board 
expects the rule to affect existing bank holding companies and foreign 
banks that seek to engage in activities that were newly authorized by 
the GLB Act, as well as other companies that seek to become bank 
holding companies. The Board does not expect the regulation to have a 
significant economic impact on a substantial number of small 
institutions subject to the Board's regulation.
This rule replaces, without substantial amendment, the interim FHC 
rules adopted previously by the Board (65 FR 3786, January 25, 2000; 65 
FR 14433, March 17, 2000; and 65 FR 15053, March 21, 2000).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board approved an interim rule  01/25/00                     65 FR 3785
Board amended interim rule      03/21/00                    65 FR 15053
Board adopted rule replacing 
interim rules                   01/03/01                      66 FR 400

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Thomas M. Corsi, Managing Senior Counsel, Federal 
Reserve System, Legal Division
Phone: 202 452-3275

RIN: 7100-AC70
_______________________________________________________________________




4339. REGULATION: Z -- TRUTH IN LENDING (DOCKET NUMBER: R-1070)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 1601

CFR Citation: 12 CFR 226

Legal Deadline: None

Abstract: In May 2000, the Board approved issuing for public comment 
proposed amendments to Regulation Z, which implements the Truth in 
Lending Act, to revise the disclosure requirements for credit and 
charge card solicitations and applications (65 FR 33499, May 24, 2000). 
The annual percentage rate (APR) and other cost information must be 
provided in direct mail and other applications and solicitations to 
open card accounts. The amendments are intended to enhance consumers' 
ability to notice and understand cost information that generally must 
be provided in the form of a table. The APR disclosed for purchase 
transactions would be subject to a type size requirement, and the 
requirement that disclosures be ``clear and conspicuous'' would be more 
strictly construed. Additional guidance would be given on the 
requirement that the table be prominently located and on the level of 
detail about cost information required or permitted in the table. The 
proposed amendments are not expected to have any significant impact on 
small entities beyond the initial revisions. Following review of the 
public comments, the Board adopted the proposal in substantially the 
form proposed (65 FR 58903, October 3, 2000).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         05/24/00                    65 FR 33499
Board adopted proposal          10/03/00                    65 FR 58903

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Deborah J. Stipick, Staff Attorney, Federal Reserve 
System, Division of Consumer and Community Affairs
Phone: 202 452-2412

RIN: 7100-AC74
_______________________________________________________________________




4340. APPLICABILITY OF SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT 
TO TRANSACTIONS BETWEEN A MEMBER BANK AND ITS SUBSIDIARIES (DOCKET 
NUMBER: R-0977)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 371c(b)(1)(E)

CFR Citation: 12 CFR 250.243

Legal Deadline: None

Abstract: Sections 23A and 23B of the Federal Reserve Act restrict the 
ability of a member bank to fund an affiliate through direct 
investment, loans, or other transactions. In July 1997, the Board 
issued for public comment a proposal to apply sections 23A and 23B to 
transactions between a member bank and any subsidiary that engages in 
activities that are impermissible for the bank itself and that Congress 
has not previously exempted from coverage by section 23A (62 FR 37744, 
July 15, 1997). The proposed treatment is largely consistent with the 
existing treatment of these subsidiaries by the other banking agencies, 
which have applied sections 23A and 23B in some form to transactions 
between a bank and such subsidiaries. The issuance of the proposals 
will avoid the application of sections 23A and 23B on an ad hoc basis 
by different agencies, which could result in confusion and 
consistencies.
The proposal is not expected to have a significant economic impact on a 
substantial number of small businesses. In response to provisions of 
the Gramm-Leach-Bliley Act, staff is expected to include the proposal 
in a new regulation (see RIN: 7100-AC63).

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         07/15/97                    62 FR 37744
Proposal to be considered in 
context of a new regulation     02/23/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: Federal

Agency Contact: Pamela G. Nardolilli, Senior Counsel, Federal Reserve 
System, Legal Division, Washington, DC 20429
Phone: 202 452-3289

RIN: 7100-AC42
_______________________________________________________________________




4341. APPLICABILITY OF SECTION 23A TO THE PURCHASE OF SECURITIES FROM 
CERTAIN AFFILIATES AND TO LOANS AND EXTENSIONS OF CREDIT MADE BY A 
MEMBER BANK TO A THIRD PARTY (DOCKET NOS: R-1015 & R-1016)

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 371c

CFR Citation: 12 CFR 250

Legal Deadline: None

[[Page 26574]]

Abstract: In June 1998, the Board issued for public comment two 
proposed rules to exempt certain transactions from the restrictions of 
section 23A of the Federal Reserve Act (63 FR 32766, June 16, 1998). 
Section 23A restricts the ability of a member bank to fund its 
affiliates through direct investment, loans, or certain other 
transactions (covered transactions). These proposals are in response to 
concerns raised by organizations when the Board earlier proposed 
removal of certain firewalls between insured depository institutions 
and their section 20 securities affiliates. Several petitioners stated 
then that, although the removal of the firewalls was welcomed, section 
23A continued to limit certain transactions with their section 20 
subsidiaries that do not raise significant safety and soundness issues 
and impede the efficient operation of the insured depository 
institutions.
In Docket Number: R-1015, the Board is proposing to expand the kind of 
assets that may be eligible for the (d)(6) exemption to include 
securities that, although not so widely traded as to warrant 
publication of their activity in publications of general circulation, 
are actively traded and whose price can be obtained from independent 
reliable sources, if the securities are purchased from a registered 
broker-dealer.
In Docket Number: R-1016, the Board is proposing to grant two 
exemptions from section 23A for certain loans and extension of credit 
made by an insured depository institution to customers that use the 
proceeds to purchase certain securities from or through the depository 
institution's registered broker-dealer affiliate. The first exemption 
would apply when the affiliate is acting solely as a broker or riskless 
principal in the securities transaction. The second exemption would 
apply when the extension of credit is made pursuant to a pre-existing 
line of credit that was not established for the purposes of buying 
securities from or through an affiliate.
In response to provisions of the Gramm-Leach-Bliley Act, staff is 
expected to include the proposals in a new regulation (see RIN: 7100-
AC63). It is not anticipated that the proposals will have a significant 
economic impact on a substantial number of small entities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/16/98                    63 FR 32766
Proposals to be considered in 
context of a new regulation     02/23/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Pamela Nardolilli, Senior Counsel, Federal Reserve 
System, Legal Division, Washington, DC 20429
Phone: 202 452-3289

RIN: 7100-AC52
_______________________________________________________________________




4342. INTERAGENCY GUIDELINES ESTABLISHING STANDARDS FOR SAFEGUARDING 
CUSTOMER INFORMATION AND RESCISSION OF YEAR 2000 STANDARDS FOR SAFETY 
AND SOUNDNESS (DOCKET NUMBER: R-1073)

Priority: Substantive, Nonsignificant

Legal Authority: 15 USC 6801; 15 USC 6805

CFR Citation: 12 CFR 208.3(d); 12 CFR 208 app D-2; 12 CFR 211.9; 12 CFR 
211.24(j); 12 CFR 225.1(c)(16); 12 CFR 225.4(g); 12 CFR 225 app F; 12 
CFR 263.302(a)

Legal Deadline: None

Abstract: In June 2000, the Board, collectively with the Office of the 
Comptroller of the Currency, the Federal Deposit Insurance Corporation, 
and the Office of Thrift Supervision, requested public comment on 
proposed guidelines for safeguarding customer information (65 FR 39471, 
June 26, 2000). The guidelines would implement sections 501 and 505(b) 
of the Gramm-Leach-Bliley Act and apply to financial institutions under 
primary supervision of the Board or the other agencies. The guidelines 
would require financial institutions to establish appropriate standards 
relating to administrative, technical, and physical safeguards designed 
to achieve the statutory goals of (1) insuring the security and 
confidentiality of customer records and information; (2) protecting 
against any anticipated threats or hazards to the security or integrity 
of such records; and (3) protecting against unauthorized access to or 
use of such records or information that could result in substantial 
harm or inconvenience to any customer. The Board and the other agencies 
also proposed to rescind their guidelines on Year 2000 safety and 
soundness, as the events for which those guidelines were issued have 
passed.
The Board's guidelines apply to financial institutions supervised by 
the Board, regardless of size. The Board specifically requested comment 
about the potential impact on community banks. The Board received 
comments from several small community banks and their trade 
associations describing the burdens that the guidelines would impose on 
their institutions and stressing the need for flexibility in the 
guidelines so that smaller institutions could implement security 
programs that are commensurate with their complexity and risk profile.
In January 2001, in light of the concerns raised by the commenters, the 
Board and other agencies revised the final guidelines to clarify the 
flexibility for each institution to implement an information security 
program that suits its particular size and complexity and the nature 
and scope of its activities (66 FR 8616, February 1, 2001). The 
agencies also rescinded the Year 2000 safety and soundness guidelines, 
as proposed.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

Board requested comment         06/26/00                    65 FR 39471
Board adopted proposal          02/01/01                     66 FR 8616

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

Government Levels Affected: None

Agency Contact: Heidi Richards, Assistant Director, Federal Reserve 
System, Division of Banking Supervision and Regulation
Phone: 202 452-2598

RIN: 7100-AC72
_______________________________________________________________________




4343. SECTION 303 REGULATORY REVIEW

Priority: Substantive, Nonsignificant

Legal Authority: 12 USC 4803(a)(1); 5 USC 610

CFR Citation: 12 CFR ch II

[[Page 26575]]

Legal Deadline: Other, Statutory, September 23, 1996, Progress Report 
due to Congress.

Abstract: In response to the requirements of section 303 of the Riegle 
Community Development and Regulatory Improvement Act of 1994, as 
modified by section 402 of the Credit Union Membership Access Act of 
1998, the Board is reviewing its regulations for purposes of 
streamlining, improving efficiency, reducing unnecessary costs, and 
removing inconsistencies and outmoded/duplicative requirements. The 
Board is also working jointly with the other banking agencies to make 
uniform regulations and guidelines implementing common statutory and 
supervisory policies. A regulatory review timetable was published in 
the Federal Register in October 1995 (60 FR 53546 October 16, 1995). 
Progress reports were sent to the Congress in September 1996 and August 
1999. It is expected that the Board will seek public comment during the 
course of the reviews of the remaining regulations listed below. Review 
of Regulations Z and DD is expected during the next six months, and 
review of regulations H and Y, Appendices, is expected in 2002. 
However, the reviews will be carried in future Agendas as separate 
entries when they are proposed for public comment. This entry, Section 
303 Regulatory Review (7100-AC09), will no longer appear as a separate 
entry in the Agenda. Reviews already proposed for public comment appear 
elsewhere in the Agenda.
Items below indicated with an asterisk will also be reviewed by the 
Board in accordance with the periodic review requirements of section 
610 of the Regulatory Flexibility Act:
Regulations H and Y, Appendices, Capital Adequacy Guidelines
*Regulation Z, Truth in Lending
*Regulation DD, Truth in Savings

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

The Section 303 Regulatory 
Review will no longer appear as 
a separate entry                02/23/01

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Barbara R. Lowrey, Associate Secretary, Federal Reserve 
System, Office of the Secretary
Phone: 202 452-3742

RIN: 7100-AC09
[FR Doc. 01-5207 Filed 05-11-01; 8:45 am]
BILLING CODE 6210-01-S
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