15479Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices
Request for Comment
Comments are invited on: (a) whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the information collection,
including the validity of the
methodology and assumptions used; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the collection
should be modified prior to submission
to OMB for review and approval.
Comments submitted in response to this
notice also will be summarized or
included in the FDIC’s requests to OMB
for renewal of this collection. All
comments will become a matter of
public record.
Dated at Washington, D.C., this 26th day of
March 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97–8179 Filed 3–31–97; 8:45 am]
BILLING CODE 6714–01–M
Agency Information Collection
Activities: Proposed Collection;
Comment Request
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for comment.
SUMMARY: The FDIC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other Federal
agencies to take this opportunity to
comment on proposed and/or
continuing information collections, as
required by the Paperwork Reduction
Act of 1995 (44 U.S.C. chapter 35).
Currently, the FDIC is soliciting
comments concerning an information
collection titled ‘‘Application for
Consent to Effect a Merger-Type
Transaction.’’
DATES: Comments must be submitted on
or before June 2, 1997.
ADDRESSES: Interested parties are
invited to submit written comments to
Steven F. Hanft, FDIC Clearance Officer,
(202) 898–3907, Office of the Executive
Secretary, Federal Deposit Insurance
Corporation, 550 17th Street N.W.,
Washington, D.C. 20429. All comments
should refer to ‘‘Application for Consent
to Effect a Merger-Type Transaction.’’
Comments may be hand-delivered to
Room F–400, 1776 F Street, N.W.,
Washington, D.C. 20429, on business
days between 8:30 a.m. and 5:00 p.m.
[FAX number (202) 898–3838; Internet
address: comments@fdic.gov].
A copy of the comments may also be
submitted to the OMB desk officer for
the FDIC: Alexander Hunt, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 3208,
Washington, D.C. 20503.
FOR FURTHER INFORMATION CONTACT:
Steven F. Hanft, at the address
identified above.
SUPPLEMENTARY INFORMATION: Proposal
to renew the following currently
approved collection of information:
Title: Application for Consent to
Effect a Merger-Type Transaction (FDIC
Form 6220/01).
OMB Number: 3064–0016.
Frequency of Response: Occasional.
Affected Public: Any depository
institution that wishes to merge,
consolidate with, acquire the assets of,
or assume liability to pay any deposits
made in any other insured depository
institution or noninsured bank or
institution.
Estimated Number of Respondents:
220.
Estimated Time per Response: 74
hours.
Estimated Total Annual Burden:
16,280 hours.
General Description of Collection: To
fulfill its obligation under Section 18(c)
of the Federal Deposit Insurance Act (12
U.S.C. 1828(c)) the FDIC requests in
FDIC Form 6220/01 information about
the effect of the propose merger on
competition; information about the
financial and managerial resources and
future prospects of the existing and
proposed institutions; and information
about the convenience and needs of the
community to be served.
Request for Comment
Comments are invited on: (a) whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the information collection,
including the validity of the
methodology and assumptions used; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the collection
should be modified prior to submission
to OMB for review and approval.
Comments submitted in response to this
notice also will be summarize or
included in the FDIC’s requests to OMB
for renewal of this collection. All
comments will become a matter of
public record.
Dated at Washington, D.C., this 26th day of
March 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97–8180 Filed 3–31–97; 8:45 am]
BILLING CODE 6714–01–M
Applications, Legal Fees, and Other
Expenses
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Rescission of statement of
policy.
SUMMARY: As part of the FDIC’s
systematic review of its regulations and
written policies under section 303(a) of
the Riegle Community Development and
Regulatory Improvement Act of 1994
(CDRI), the FDIC is rescinding its
statement of policy concerning
applications, legal fees, and other
expenses (Statement of Policy). The
Statement of Policy addresses
unreasonable or excessive fees, insider
fees, and contingency fee arrangements
incidental to certain applications filed
with the FDIC. The FDIC is rescinding
the Statement of Policy because portions
are now considered outmoded and
similar information is duplicated or
cross-referenced in other Statements of
Policy. Remaining information that is
relevant will be placed, in condensed
form, into Statements of Policy
regarding Applications for Deposit
Insurance, and Bank Merger
Transactions. The rescission does not
reflect any substantive change in the
FDIC’s supervisory attitude toward
excessive or unwarranted fees incident
to an application.
EFFECTIVE DATE: This Statement of
Policy is rescinded effective April 1,
1997.
FOR FURTHER INFORMATION CONTACT:
Jesse G. Snyder, Assistant Director,
(202/ 898–6915), Division of
Supervision; Susan van den Toorn,
Counsel, (202/898–8707), Legal
Request for Comment
Comments are invited on: (a) whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the information collection,
including the validity of the
methodology and assumptions used; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the collection
should be modified prior to submission
to OMB for review and approval.
Comments submitted in response to this
notice also will be summarized or
included in the FDIC’s requests to OMB
for renewal of this collection. All
comments will become a matter of
public record.
Dated at Washington, D.C., this 26th day of
March 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97–8179 Filed 3–31–97; 8:45 am]
BILLING CODE 6714–01–M
Agency Information Collection
Activities: Proposed Collection;
Comment Request
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Notice and request for comment.
SUMMARY: The FDIC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other Federal
agencies to take this opportunity to
comment on proposed and/or
continuing information collections, as
required by the Paperwork Reduction
Act of 1995 (44 U.S.C. chapter 35).
Currently, the FDIC is soliciting
comments concerning an information
collection titled ‘‘Application for
Consent to Effect a Merger-Type
Transaction.’’
DATES: Comments must be submitted on
or before June 2, 1997.
ADDRESSES: Interested parties are
invited to submit written comments to
Steven F. Hanft, FDIC Clearance Officer,
(202) 898–3907, Office of the Executive
Secretary, Federal Deposit Insurance
Corporation, 550 17th Street N.W.,
Washington, D.C. 20429. All comments
should refer to ‘‘Application for Consent
to Effect a Merger-Type Transaction.’’
Comments may be hand-delivered to
Room F–400, 1776 F Street, N.W.,
Washington, D.C. 20429, on business
days between 8:30 a.m. and 5:00 p.m.
[FAX number (202) 898–3838; Internet
address: comments@fdic.gov].
A copy of the comments may also be
submitted to the OMB desk officer for
the FDIC: Alexander Hunt, Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 3208,
Washington, D.C. 20503.
FOR FURTHER INFORMATION CONTACT:
Steven F. Hanft, at the address
identified above.
SUPPLEMENTARY INFORMATION: Proposal
to renew the following currently
approved collection of information:
Title: Application for Consent to
Effect a Merger-Type Transaction (FDIC
Form 6220/01).
OMB Number: 3064–0016.
Frequency of Response: Occasional.
Affected Public: Any depository
institution that wishes to merge,
consolidate with, acquire the assets of,
or assume liability to pay any deposits
made in any other insured depository
institution or noninsured bank or
institution.
Estimated Number of Respondents:
220.
Estimated Time per Response: 74
hours.
Estimated Total Annual Burden:
16,280 hours.
General Description of Collection: To
fulfill its obligation under Section 18(c)
of the Federal Deposit Insurance Act (12
U.S.C. 1828(c)) the FDIC requests in
FDIC Form 6220/01 information about
the effect of the propose merger on
competition; information about the
financial and managerial resources and
future prospects of the existing and
proposed institutions; and information
about the convenience and needs of the
community to be served.
Request for Comment
Comments are invited on: (a) whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the information collection,
including the validity of the
methodology and assumptions used; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the collection
should be modified prior to submission
to OMB for review and approval.
Comments submitted in response to this
notice also will be summarize or
included in the FDIC’s requests to OMB
for renewal of this collection. All
comments will become a matter of
public record.
Dated at Washington, D.C., this 26th day of
March 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97–8180 Filed 3–31–97; 8:45 am]
BILLING CODE 6714–01–M
Applications, Legal Fees, and Other
Expenses
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Rescission of statement of
policy.
SUMMARY: As part of the FDIC’s
systematic review of its regulations and
written policies under section 303(a) of
the Riegle Community Development and
Regulatory Improvement Act of 1994
(CDRI), the FDIC is rescinding its
statement of policy concerning
applications, legal fees, and other
expenses (Statement of Policy). The
Statement of Policy addresses
unreasonable or excessive fees, insider
fees, and contingency fee arrangements
incidental to certain applications filed
with the FDIC. The FDIC is rescinding
the Statement of Policy because portions
are now considered outmoded and
similar information is duplicated or
cross-referenced in other Statements of
Policy. Remaining information that is
relevant will be placed, in condensed
form, into Statements of Policy
regarding Applications for Deposit
Insurance, and Bank Merger
Transactions. The rescission does not
reflect any substantive change in the
FDIC’s supervisory attitude toward
excessive or unwarranted fees incident
to an application.
EFFECTIVE DATE: This Statement of
Policy is rescinded effective April 1,
1997.
FOR FURTHER INFORMATION CONTACT:
Jesse G. Snyder, Assistant Director,
(202/ 898–6915), Division of
Supervision; Susan van den Toorn,
Counsel, (202/898–8707), Legal
15480 Federal Register / Vol. 62, No. 62 / Tuesday, April 1, 1997 / Notices
Division, FDIC, 550 17th Street, N.W.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The FDIC
is conducting a systematic review of its
regulations and written policies. Section
303(a) of the CDRI (12 U.S.C. 4803(a))
requires the FDIC, the Office of the
Comptroller of the Currency, the Board
of Governors of the Federal Reserve
System, and the Office of Thrift
Supervision (Federal banking agencies)
to each streamline and modify its
regulations and written policies in order
to improve efficiency, reduce
unnecessary costs, and eliminate
unwarranted constraints on credit
availability. Section 303(a) also requires
each of the Federal banking agencies to
remove inconsistencies and outmoded
and duplicative requirements from its
regulations and written policies.
As a part of this review, the FDIC has
determined that the Statement of Policy
contains a substantial amount of
information that is outmoded, and
duplicated or cross-referenced
elsewhere. The FDIC’s written policies
can be streamlined by eliminating the
Statement of Policy. The relevant
information contained in the Policy
Statement will be condensed and placed
into Statements of Policy regarding
Applications for Deposit Insurance, and
Bank Merger Transactions.
On September 8, 1980, the Statement
of Policy was adopted by the Board of
the FDIC and was published on
September 15, 1980 (45 FR 61025). The
Statement of Policy addresses
unreasonable or excessive fees, insider
fees, and contingency fee arrangements
incidental to applications filed with the
FDIC. Some of the information
contained in the Statement of Policy is
now also in other Statements of Policy
addressing specific applications and, as
a result, it is no longer necessary to have
a Statement of Policy dealing
specifically with legal fees and other
expenses.
Issues formerly dealt with in the
Statement of Policy have now been
condensed and placed into other
application specific ‘‘Statements of
Policy’’. The following specific
statements are now included in relevant
‘‘Statements of Policy’’ published
concurrently herein.
‘‘The commitment to or payment of
unreasonable or excessive fees and other
expenses incident to an application reflects
adversely upon the management of the
applicant institution. Fees and other
organizational expenses incurred or
committed to should be fully supported.
Expenses for professional or other services
rendered by organizers, present or
prospective board members, major
shareholders or executive officers will
receive special review for any indication of
self-dealing to the detriment of the bank and
its other shareholders. As a matter of
practice, the FDIC expects full disclosure to
all directors and shareholders of any material
arrangement with an insider.
In no case will an FDIC application be
approved where the payment of a fee, in
whole or in part, is contingent upon any act
or forbearance by the FDIC or by any other
federal or state agency or official.’’
The rescission does not reflect any
substantive change in the FDIC’s
supervisory attitude toward excessive,
unwarranted, or otherwise
inappropriate fees incident to an
application, and the relevant issues will
continue to be addressed.
For the above reasons, the Statement
of Policy is hereby rescinded.
By order of the Board of Directors.
Dated at Washington, DC, this 25th day of
March, 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97–8171 Filed 3–31–97; 8:45 am]
BILLING CODE 6714–01–P
Statement of Policy Regarding Liability
of Commonly Controlled Depository
Institutions
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Policy statement.
SUMMARY: The FDIC is revising the
statement of policy which sets forth the
procedures and guidelines the FDIC
uses in assessing liability against
commonly controlled depository
institutions under section 5(e) of the
Federal Deposit Insurance Act. The
revised policy statement provides
guidance based on the FDIC’s
experience in administering the
provisions of section 5(e) of the Act and
clarifies the authority granted to the
FDIC to issue assessments of liability or
grant conditional waivers of liability,
the manner in which the FDIC will
assess the amount of loss incurred by
the FDIC, and the manner in which each
liable institution’s share of that loss will
be determined. The revised policy
statement also addresses the potential
liability of depository institutions
acquired by unaffiliated parties prior to
any occurrence establishing liability
under section 5(e) of the Act.
EFFECTIVE DATE: April 1, 1997.
FOR FURTHER INFORMATION CONTACT:
Cheryl Steffen, Special Situations and
Application Section, Division of
Supervision, (202) 898–8768; Michael J.
Fanaroff, Division of Resolution and
Receiverships, (202) 898–7122; or
Grovetta N. Gardineer, Counsel, Legal
Division, (202) 736–0665, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: On May
22, 1990, the Board of Directors of the
FDIC adopted a Statement of Policy
Regarding Liability of Commonly
Controlled Depository Institutions. Such
liability is a consequence of section 5(e)
of the Federal Deposit Insurance Act
(Act), 12 U.S.C. 1815(e), which was
added by the passage of section
206(a)(7) of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989. Section 5(e) created liability for
commonly controlled insured
depository institutions for losses
incurred or anticipated by the FDIC in
connection with (i) the default of a
commonly controlled insured
depository institution; or (ii) any
assistance provided by the FDIC to any
commonly controlled insured
depository institution in danger of
default. The purpose of section 5(e) is to
ensure that the assets of healthy
depository institution subsidiaries
within the same holding company
structure, or of a healthy institution
which controls a failing institution, will
be available to the FDIC to help offset
the cost of resolving the failed
subsidiary. While the FDIC seeks to
recover its losses associated with failing
institutions, it also seeks to encourage
the acquisition of troubled institutions
by those capable of rehabilitating them
and to avoid instances in which the
assessment of liability against an
otherwise healthy institution will cause
its failure, thus exposing the FDIC and
the insurance funds to greater loss.
The FDIC has brought a number of
actions since the enactment of section
5(e). While the original statement of
policy provided guidance to the
industry regarding the application of the
statute at the time it was published, the
FDIC had not initiated any actions
under the statute. The revised policy
statement attempts to provide guidance
to the industry based on actual practice
with administering the statute. The
proposed policy statement contains
information regarding the content of
requests for conditional waiver.
Depending on decisions affecting part
303 of the FDIC Rules and Regulations
(Rules), this information may also be
addressed in the revised part 303 of the
FDIC’s Rules regarding applications.
Any changes in part 303 of the FDIC’s
Rules may also necessitate further
revisions to the policy statement.
The policy statement provides for the
issuance of a Notice of Assessment of
Division, FDIC, 550 17th Street, N.W.,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION: The FDIC
is conducting a systematic review of its
regulations and written policies. Section
303(a) of the CDRI (12 U.S.C. 4803(a))
requires the FDIC, the Office of the
Comptroller of the Currency, the Board
of Governors of the Federal Reserve
System, and the Office of Thrift
Supervision (Federal banking agencies)
to each streamline and modify its
regulations and written policies in order
to improve efficiency, reduce
unnecessary costs, and eliminate
unwarranted constraints on credit
availability. Section 303(a) also requires
each of the Federal banking agencies to
remove inconsistencies and outmoded
and duplicative requirements from its
regulations and written policies.
As a part of this review, the FDIC has
determined that the Statement of Policy
contains a substantial amount of
information that is outmoded, and
duplicated or cross-referenced
elsewhere. The FDIC’s written policies
can be streamlined by eliminating the
Statement of Policy. The relevant
information contained in the Policy
Statement will be condensed and placed
into Statements of Policy regarding
Applications for Deposit Insurance, and
Bank Merger Transactions.
On September 8, 1980, the Statement
of Policy was adopted by the Board of
the FDIC and was published on
September 15, 1980 (45 FR 61025). The
Statement of Policy addresses
unreasonable or excessive fees, insider
fees, and contingency fee arrangements
incidental to applications filed with the
FDIC. Some of the information
contained in the Statement of Policy is
now also in other Statements of Policy
addressing specific applications and, as
a result, it is no longer necessary to have
a Statement of Policy dealing
specifically with legal fees and other
expenses.
Issues formerly dealt with in the
Statement of Policy have now been
condensed and placed into other
application specific ‘‘Statements of
Policy’’. The following specific
statements are now included in relevant
‘‘Statements of Policy’’ published
concurrently herein.
‘‘The commitment to or payment of
unreasonable or excessive fees and other
expenses incident to an application reflects
adversely upon the management of the
applicant institution. Fees and other
organizational expenses incurred or
committed to should be fully supported.
Expenses for professional or other services
rendered by organizers, present or
prospective board members, major
shareholders or executive officers will
receive special review for any indication of
self-dealing to the detriment of the bank and
its other shareholders. As a matter of
practice, the FDIC expects full disclosure to
all directors and shareholders of any material
arrangement with an insider.
In no case will an FDIC application be
approved where the payment of a fee, in
whole or in part, is contingent upon any act
or forbearance by the FDIC or by any other
federal or state agency or official.’’
The rescission does not reflect any
substantive change in the FDIC’s
supervisory attitude toward excessive,
unwarranted, or otherwise
inappropriate fees incident to an
application, and the relevant issues will
continue to be addressed.
For the above reasons, the Statement
of Policy is hereby rescinded.
By order of the Board of Directors.
Dated at Washington, DC, this 25th day of
March, 1997.
Federal Deposit Insurance Corporation
Robert E. Feldman,
Deputy Executive Secretary.
[FR Doc. 97–8171 Filed 3–31–97; 8:45 am]
BILLING CODE 6714–01–P
Statement of Policy Regarding Liability
of Commonly Controlled Depository
Institutions
AGENCY: Federal Deposit Insurance
Corporation (FDIC).
ACTION: Policy statement.
SUMMARY: The FDIC is revising the
statement of policy which sets forth the
procedures and guidelines the FDIC
uses in assessing liability against
commonly controlled depository
institutions under section 5(e) of the
Federal Deposit Insurance Act. The
revised policy statement provides
guidance based on the FDIC’s
experience in administering the
provisions of section 5(e) of the Act and
clarifies the authority granted to the
FDIC to issue assessments of liability or
grant conditional waivers of liability,
the manner in which the FDIC will
assess the amount of loss incurred by
the FDIC, and the manner in which each
liable institution’s share of that loss will
be determined. The revised policy
statement also addresses the potential
liability of depository institutions
acquired by unaffiliated parties prior to
any occurrence establishing liability
under section 5(e) of the Act.
EFFECTIVE DATE: April 1, 1997.
FOR FURTHER INFORMATION CONTACT:
Cheryl Steffen, Special Situations and
Application Section, Division of
Supervision, (202) 898–8768; Michael J.
Fanaroff, Division of Resolution and
Receiverships, (202) 898–7122; or
Grovetta N. Gardineer, Counsel, Legal
Division, (202) 736–0665, Federal
Deposit Insurance Corporation, 550 17th
Street, NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION: On May
22, 1990, the Board of Directors of the
FDIC adopted a Statement of Policy
Regarding Liability of Commonly
Controlled Depository Institutions. Such
liability is a consequence of section 5(e)
of the Federal Deposit Insurance Act
(Act), 12 U.S.C. 1815(e), which was
added by the passage of section
206(a)(7) of the Financial Institutions
Reform, Recovery, and Enforcement Act
of 1989. Section 5(e) created liability for
commonly controlled insured
depository institutions for losses
incurred or anticipated by the FDIC in
connection with (i) the default of a
commonly controlled insured
depository institution; or (ii) any
assistance provided by the FDIC to any
commonly controlled insured
depository institution in danger of
default. The purpose of section 5(e) is to
ensure that the assets of healthy
depository institution subsidiaries
within the same holding company
structure, or of a healthy institution
which controls a failing institution, will
be available to the FDIC to help offset
the cost of resolving the failed
subsidiary. While the FDIC seeks to
recover its losses associated with failing
institutions, it also seeks to encourage
the acquisition of troubled institutions
by those capable of rehabilitating them
and to avoid instances in which the
assessment of liability against an
otherwise healthy institution will cause
its failure, thus exposing the FDIC and
the insurance funds to greater loss.
The FDIC has brought a number of
actions since the enactment of section
5(e). While the original statement of
policy provided guidance to the
industry regarding the application of the
statute at the time it was published, the
FDIC had not initiated any actions
under the statute. The revised policy
statement attempts to provide guidance
to the industry based on actual practice
with administering the statute. The
proposed policy statement contains
information regarding the content of
requests for conditional waiver.
Depending on decisions affecting part
303 of the FDIC Rules and Regulations
(Rules), this information may also be
addressed in the revised part 303 of the
FDIC’s Rules regarding applications.
Any changes in part 303 of the FDIC’s
Rules may also necessitate further
revisions to the policy statement.
The policy statement provides for the
issuance of a Notice of Assessment of