This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
54401
Vol. 78, No. 171
Wednesday, September 4, 2013
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Pub. L. 111–203, 12 U.S.C. 5301 et
seq. 2 76 FR 39247 (July 6, 2011).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 336 and 390
RIN 3064–AD98
Removal of Transferred OTS
Regulations Regarding Post-
Employment Activities of Senior
Examiners
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In this notice of proposed
rulemaking, the Federal Deposit
Insurance Corporation (FDIC) proposes
to rescind and remove from the Code of
Federal Regulations 12 CFR part 390,
subpart A, entitled Restrictions on Post-
Employment Activities of Senior
Examiners. This subpart was included
in the regulations that were transferred
to the FDIC from the Office of Thrift
Supervision (OTS) on July 21, 2011, in
connection with the implementation of
applicable provisions of Title III of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’). Upon removal of 12 CFR part
390, subpart A, the restrictions for post-
employment activities of senior
examiners of all insured depository
institutions for which the FDIC has been
designated the appropriate federal
banking agency will be found at 12 CFR
part 336, subpart C, entitled One-Year
Restriction on Post-employment
Activities of Senior Examiners. The
proposed rule would not change 12 CFR
part 336, subpart C.
This notice of proposed rulemaking
also proposes to revise the definition
section of 12 CFR part 336, subpart B.
DATES: Comments must be received on
or before November 4, 2013.
ADDRESSES: You may submit comments
by any of the following methods:
• FDIC Web site: http://www.fdic.gov/
regulations/laws/federal/propose.html.
Follow instructions for submitting
comments on the agency Web site.
• FDIC Email: Comments@fdic.gov.
Include RIN # 3064–AD84 on the
subject line of the message.
• FDIC Mail: Robert E. Feldman,
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery to FDIC: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7 a.m. and 5 p.m.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. Where
appropriate, comments should include a
short Executive Summary consisting of
no more than five single-spaced pages.
All statements received, including
attachments and other supporting
materials, are part of the public record
and are subject to public disclosure.
You should submit only information
that you wish to make publicly
available.
Please note: All comments received will be
posted generally without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Paper copies of public
comments may be requested from the Public
Information Center by telephone at 1–877–
275–3342 or 1–703–562–2200.
FOR FURTHER INFORMATION CONTACT:
Robert J. Fagan, Ethics Program
Manager, Legal Division (703) 562–2704
or rfagan@fdic.gov; Michelle Borzillo,
Senior Counsel, Legal Division (703)
562–6083 or mborzillo@fdic.gov; or
Randy Thomas, Counsel, Legal Division
(703) 562–6454 or ranthomas@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act
The Dodd-Frank Act,1 signed into law
on July 21, 2010, provided for a
substantial reorganization of the
regulation of State and Federal savings
associations and their holding
companies. Beginning July 21, 2011, the
‘‘transfer date’’ established by section
311 of the Dodd-Frank Act (12 U.S.C.
5411), the powers, duties, and functions
formerly performed by the OTS were
divided among the FDIC; as to State
savings associations, the Office of the
Comptroller of the Currency (OCC); as to
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (FRB), as to savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act (12 U.S.C.
5414(b)) provides the manner of
treatment for all orders, resolutions,
determinations, regulations, and other
advisory materials, that were issued,
made, prescribed, or allowed to become
effective by the OTS. The section
provides that if such advisory materials
were in effect on the day before the
transfer date, they continue in effect and
are enforceable by or against the
appropriate successor agency until they
are modified, terminated, set aside, or
superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
Section 316(c) of the Dodd-Frank Act
(12 U.S.C. 5414(c)) further directed the
FDIC and the OCC to consult with one
another and to publish a list of the
continued OTS regulations which
would be enforced by the FDIC and the
OCC, respectively. On June 14, 2011, the
FDIC’s Board of Directors approved a
‘‘List of OTS Regulations to be Enforced
by the OCC and the FDIC Pursuant to
the Dodd-Frank Wall Street Reform and
Consumer Protection Act.’’ This list was
published by the FDIC and the OCC as
a Joint Notice in the Federal Register on
July 6, 2011.2
Although section 312(b)(2)(B)(i)(II) of
the Dodd-Frank Act (12 U.S.C.
5412(b)(2)(B)(i)(II)) granted the OCC
rulemaking authority relating to both
State and Federal savings associations,
nothing in the Dodd-Frank Act affected
the FDIC’s existing authority to issue
regulations under the FDI Act and other
laws as the ‘‘appropriate Federal
banking agency’’ or under similar
statutory authority. Section 312(c) of the
Dodd-Frank Act amended section 3(q) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(q)) and designated the FDIC
as the ‘‘appropriate Federal banking
agency’’ for State savings associations.
As a result, when the FDIC acts as the
designated ‘‘appropriate Federal
banking agency’’ (or under similar
authority) for State savings associations,
as it does here, the FDIC is authorized
to issue, modify and rescind regulations
involving such associations.
VerDate Mar<15>2010 18:08 Sep 03, 2013 Jkt 229001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\04SEP1.SGM 04SEP1
tkelley on DSK3SPTVN1PROD with PROPOSALS
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
Proposed Rules Federal Register
54401
Vol. 78, No. 171
Wednesday, September 4, 2013
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Pub. L. 111–203, 12 U.S.C. 5301 et
seq. 2 76 FR 39247 (July 6, 2011).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 336 and 390
RIN 3064–AD98
Removal of Transferred OTS
Regulations Regarding Post-
Employment Activities of Senior
Examiners
AGENCY: Federal Deposit Insurance
Corporation.
ACTION: Notice of proposed rulemaking.
SUMMARY: In this notice of proposed
rulemaking, the Federal Deposit
Insurance Corporation (FDIC) proposes
to rescind and remove from the Code of
Federal Regulations 12 CFR part 390,
subpart A, entitled Restrictions on Post-
Employment Activities of Senior
Examiners. This subpart was included
in the regulations that were transferred
to the FDIC from the Office of Thrift
Supervision (OTS) on July 21, 2011, in
connection with the implementation of
applicable provisions of Title III of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (‘‘Dodd-Frank
Act’’). Upon removal of 12 CFR part
390, subpart A, the restrictions for post-
employment activities of senior
examiners of all insured depository
institutions for which the FDIC has been
designated the appropriate federal
banking agency will be found at 12 CFR
part 336, subpart C, entitled One-Year
Restriction on Post-employment
Activities of Senior Examiners. The
proposed rule would not change 12 CFR
part 336, subpart C.
This notice of proposed rulemaking
also proposes to revise the definition
section of 12 CFR part 336, subpart B.
DATES: Comments must be received on
or before November 4, 2013.
ADDRESSES: You may submit comments
by any of the following methods:
• FDIC Web site: http://www.fdic.gov/
regulations/laws/federal/propose.html.
Follow instructions for submitting
comments on the agency Web site.
• FDIC Email: Comments@fdic.gov.
Include RIN # 3064–AD84 on the
subject line of the message.
• FDIC Mail: Robert E. Feldman,
Executive Secretary, Attention:
Comments, Federal Deposit Insurance
Corporation, 550 17th Street, NW.,
Washington, DC 20429.
• Hand Delivery to FDIC: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
Building (located on F Street) on
business days between 7 a.m. and 5 p.m.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. Where
appropriate, comments should include a
short Executive Summary consisting of
no more than five single-spaced pages.
All statements received, including
attachments and other supporting
materials, are part of the public record
and are subject to public disclosure.
You should submit only information
that you wish to make publicly
available.
Please note: All comments received will be
posted generally without change to http://
www.fdic.gov/regulations/laws/federal/
propose.html, including any personal
information provided. Paper copies of public
comments may be requested from the Public
Information Center by telephone at 1–877–
275–3342 or 1–703–562–2200.
FOR FURTHER INFORMATION CONTACT:
Robert J. Fagan, Ethics Program
Manager, Legal Division (703) 562–2704
or rfagan@fdic.gov; Michelle Borzillo,
Senior Counsel, Legal Division (703)
562–6083 or mborzillo@fdic.gov; or
Randy Thomas, Counsel, Legal Division
(703) 562–6454 or ranthomas@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act
The Dodd-Frank Act,1 signed into law
on July 21, 2010, provided for a
substantial reorganization of the
regulation of State and Federal savings
associations and their holding
companies. Beginning July 21, 2011, the
‘‘transfer date’’ established by section
311 of the Dodd-Frank Act (12 U.S.C.
5411), the powers, duties, and functions
formerly performed by the OTS were
divided among the FDIC; as to State
savings associations, the Office of the
Comptroller of the Currency (OCC); as to
Federal savings associations, and the
Board of Governors of the Federal
Reserve System (FRB), as to savings and
loan holding companies. Section 316(b)
of the Dodd-Frank Act (12 U.S.C.
5414(b)) provides the manner of
treatment for all orders, resolutions,
determinations, regulations, and other
advisory materials, that were issued,
made, prescribed, or allowed to become
effective by the OTS. The section
provides that if such advisory materials
were in effect on the day before the
transfer date, they continue in effect and
are enforceable by or against the
appropriate successor agency until they
are modified, terminated, set aside, or
superseded in accordance with
applicable law by such successor
agency, by any court of competent
jurisdiction, or by operation of law.
Section 316(c) of the Dodd-Frank Act
(12 U.S.C. 5414(c)) further directed the
FDIC and the OCC to consult with one
another and to publish a list of the
continued OTS regulations which
would be enforced by the FDIC and the
OCC, respectively. On June 14, 2011, the
FDIC’s Board of Directors approved a
‘‘List of OTS Regulations to be Enforced
by the OCC and the FDIC Pursuant to
the Dodd-Frank Wall Street Reform and
Consumer Protection Act.’’ This list was
published by the FDIC and the OCC as
a Joint Notice in the Federal Register on
July 6, 2011.2
Although section 312(b)(2)(B)(i)(II) of
the Dodd-Frank Act (12 U.S.C.
5412(b)(2)(B)(i)(II)) granted the OCC
rulemaking authority relating to both
State and Federal savings associations,
nothing in the Dodd-Frank Act affected
the FDIC’s existing authority to issue
regulations under the FDI Act and other
laws as the ‘‘appropriate Federal
banking agency’’ or under similar
statutory authority. Section 312(c) of the
Dodd-Frank Act amended section 3(q) of
the Federal Deposit Insurance Act (12
U.S.C. 1813(q)) and designated the FDIC
as the ‘‘appropriate Federal banking
agency’’ for State savings associations.
As a result, when the FDIC acts as the
designated ‘‘appropriate Federal
banking agency’’ (or under similar
authority) for State savings associations,
as it does here, the FDIC is authorized
to issue, modify and rescind regulations
involving such associations.
VerDate Mar<15>2010 18:08 Sep 03, 2013 Jkt 229001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\04SEP1.SGM 04SEP1
tkelley on DSK3SPTVN1PROD with PROPOSALS
54402 Federal Register / Vol. 78, No. 171 / Wednesday, September 4, 2013 / Proposed Rules
3 76 FR 47652 (August 5, 2011).
4 70 FR 45323 (August 5, 2005).
As noted above, on June 14, 2011,
operating pursuant to this authority, the
FDIC’s Board of Directors reissued and
redesignated certain transferring
regulations of the former OTS. These
transferred OTS regulations were
published as new FDIC regulations in
the Federal Register on August 5, 2011.3
When it republished the transferred
OTS regulations as new FDIC
regulations, the FDIC specifically noted
that its staff would evaluate the
transferred OTS rules and might later
recommend incorporating the
transferred OTS regulations into FDIC
rules that existed before the transfer, or
amending them, or rescinding them, as
appropriate.
One of the regulations transferred to
the FDIC covers OTS restrictions on the
post-employment activities of its senior
examiners. The OTS’s regulation,
formerly found at 12 CFR part 507, was
transferred to the FDIC with only
nominal changes and is now found in
the FDIC’s rules at 12 CFR part 390,
subpart A. Before the transfer, the
FDIC’s rules included 12 CFR part 336,
subpart C, a rule governing restrictions
on the post-employment activities of its
senior examiners. After careful review
and comparison of 12 CFR part 390,
subpart A—Restrictions on Post-
Employment Activities of Senior
Examiners and 12 CFR part 336, subpart
C—One-Year Restriction on Post-
employment Activities of Senior
Examiners, the FDIC proposes to
rescind 12 CFR, part 390, subpart A,
because this subpart largely duplicates
12 CFR part 336, subpart C.
The rules found at 12 CFR, part 336,
subpart C and 12 CFR part 507 were
issued in 2005, as part of a joint
interagency rulemaking among the
FDIC, the FRB, the OCC, and the OTS.
The agencies issued substantively
similar rules that implemented section
6303(b) of the Intelligence Reform and
Terrorism Prevention Act of 2004.4 This
Act added a new section 10(k) to the
FDI Act (12 U.S.C. 1820(k)), which
imposed post-employment restrictions
on senior examiners of depository
institutions and their holding
companies. By its terms, the Act
required the Federal banking agencies to
consult with each other to ensure that
the rules and regulations that they
issued were, to the extent possible,
consistent and comparable, taking into
account any differences in their
respective supervisory programs. 12
U.S.C. 1820(k)(4)(B).
As a result of that joint rulemaking,
the four then-existing federal banking
agencies adopted very similar, though
not identical, rules that outlined the
post-employment restrictions on their
senior examiners. For example, the
waiver provision for the transferred OTS
rules, currently found at 12 CFR 390.4,
permits the FDIC’s Chairperson, or his
designee, on a case-by-case basis, to
waive post-employment restrictions.
Similarly, the analogous FDIC rule, 12
CFR 303.12, permits the FDIC’s Board of
Directors to waive the applicability of
any regulation, including those
governing post-employment restrictions
for FDIC’s senior examiners, upon a
showing of good cause.
After comparing the FDIC’s rules with
the transferred OTS rule relating to post-
employment restrictions for senior
examiners, the FDIC has concluded that
part 336, subpart C more fully and
appropriately implements section 10(k)
of the FDIA for the purposes of the
FDIC, because it focuses on service as a
senior examiner of all insured
depository institutions, while the
transferred OTS rules found at part 390,
subpart A, apply only to senior
examiners of savings associations and
their holding companies.
Therefore, based on the above, the
FDIC proposes to rescind and remove
from the Code of Federal Regulations
the former OTS rules located at 12 CFR
part 390, subpart A. If the proposed rule
is adopted, all of the FDIC’s senior
examiners (including those former OTS
examiners who were transferred to the
FDIC when the OTS was abolished),
regardless of whether they evaluate
insured state banks or insured State
savings associations, will be subject to
the post-employment restrictions
currently set forth in 12 CFR part 336,
subpart C. Thus, for example, the part
336, subpart C rule will continue to
prohibit an FDIC examiner who has
served as a senior examiner of an
insured institution (whether state bank
or state savings association) for at least
2 months during the last 12 months of
employment with the FDIC from
knowingly accepting compensation as
an employee, officer, director, or
consultant from such insured institution
or any company that controls that
institution. 12 CFR 336.12(a).
In addition, this notice of proposed
rulemaking proposes to revise 12 CFR
part 336, subpart B by deleting a
reference to the ‘‘Office of Thrift
Supervision’’ in the definition of
‘‘Federal banking agency’’ described in
section 336.3(e) and adding the words
‘‘predecessors or’’ in front of the word
‘‘successors’’. This proposed revision
will help avoid any public confusion by
deleting the reference to the former
Office of Thrift Supervision while
retaining the indirect reference to that
former agency by adding a reference to
‘‘predecessors’’ to the definition of
‘‘Federal Banking agency’’. Further, by
including predecessor agencies of the
FDIC as Federal banking agencies for
purposes of this part, the proposed rule
would restrict a potential employee who
had been associated with a State savings
association from future FDIC
employment if the potential employee
had been subject to a final enforcement
action by the former OTS. See 12 CFR
336.4(a)(2) and 336.5(a)(2).
II. The Proposal
Regarding the functions of the former
OTS that were transferred to the FDIC,
section 316(b)(3) of the Dodd-Frank Act
(12 U.S.C. 5414(c)) in pertinent part
provides that the former OTS’s
regulations will be enforceable by the
FDIC until they are modified,
terminated, set aside, or superseded in
accordance with applicable law. After
reviewing the former OTS rules
regarding restrictions on post-
employment activities of senior
examiners currently found in 12 CFR
part 390, subpart A, the FDIC, as the
appropriate federal banking agency for
State savings associations, proposes to
rescind these regulations in their
entirety. The FDIC believes that the
rules found at 12 CFR part 336, subpart
C should alone apply to the post-
employment activities of senior
examiners who examine either insured
State banks or insured State savings
associations and that the rules found at
12 CFR part 390, subpart A are
essentially duplicative to those found in
part 336, subpart C. Rescinding part
390, subpart A will serve to streamline
the FDIC’s rules and eliminate
unnecessary regulations.
The FDIC is also proposing in this
notice of proposed rulemaking to revise
12 CFR part 336, Subpart B by deleting
a reference to the ‘‘Office of Thrift
Supervision’’ in the definition of
‘‘Federal banking agency’’ described in
section 336.3(e) and by adding the
words ‘‘predecessors or’’ in front of the
word ‘‘successors’’. Deletion of the
reference to that former federal agency
should help eliminate any public
confusion. However, adding the
reference to ‘‘predecessors’’ in section
336.3(e) provides an indirect reference
to the Office of Thrift Supervision if
appropriate in the context of subpart
B—Minimum Standards of Fitness for
Employment With the Federal Deposit
Insurance Corporation. With the
proposed amendment, even though the
OTS no longer exists as Federal banking
agency, no person would be permitted
to become employed by the FDIC if they
VerDate Mar<15>2010 18:08 Sep 03, 2013 Jkt 229001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\04SEP1.SGM 04SEP1
tkelley on DSK3SPTVN1PROD with PROPOSALS
3 76 FR 47652 (August 5, 2011).
4 70 FR 45323 (August 5, 2005).
As noted above, on June 14, 2011,
operating pursuant to this authority, the
FDIC’s Board of Directors reissued and
redesignated certain transferring
regulations of the former OTS. These
transferred OTS regulations were
published as new FDIC regulations in
the Federal Register on August 5, 2011.3
When it republished the transferred
OTS regulations as new FDIC
regulations, the FDIC specifically noted
that its staff would evaluate the
transferred OTS rules and might later
recommend incorporating the
transferred OTS regulations into FDIC
rules that existed before the transfer, or
amending them, or rescinding them, as
appropriate.
One of the regulations transferred to
the FDIC covers OTS restrictions on the
post-employment activities of its senior
examiners. The OTS’s regulation,
formerly found at 12 CFR part 507, was
transferred to the FDIC with only
nominal changes and is now found in
the FDIC’s rules at 12 CFR part 390,
subpart A. Before the transfer, the
FDIC’s rules included 12 CFR part 336,
subpart C, a rule governing restrictions
on the post-employment activities of its
senior examiners. After careful review
and comparison of 12 CFR part 390,
subpart A—Restrictions on Post-
Employment Activities of Senior
Examiners and 12 CFR part 336, subpart
C—One-Year Restriction on Post-
employment Activities of Senior
Examiners, the FDIC proposes to
rescind 12 CFR, part 390, subpart A,
because this subpart largely duplicates
12 CFR part 336, subpart C.
The rules found at 12 CFR, part 336,
subpart C and 12 CFR part 507 were
issued in 2005, as part of a joint
interagency rulemaking among the
FDIC, the FRB, the OCC, and the OTS.
The agencies issued substantively
similar rules that implemented section
6303(b) of the Intelligence Reform and
Terrorism Prevention Act of 2004.4 This
Act added a new section 10(k) to the
FDI Act (12 U.S.C. 1820(k)), which
imposed post-employment restrictions
on senior examiners of depository
institutions and their holding
companies. By its terms, the Act
required the Federal banking agencies to
consult with each other to ensure that
the rules and regulations that they
issued were, to the extent possible,
consistent and comparable, taking into
account any differences in their
respective supervisory programs. 12
U.S.C. 1820(k)(4)(B).
As a result of that joint rulemaking,
the four then-existing federal banking
agencies adopted very similar, though
not identical, rules that outlined the
post-employment restrictions on their
senior examiners. For example, the
waiver provision for the transferred OTS
rules, currently found at 12 CFR 390.4,
permits the FDIC’s Chairperson, or his
designee, on a case-by-case basis, to
waive post-employment restrictions.
Similarly, the analogous FDIC rule, 12
CFR 303.12, permits the FDIC’s Board of
Directors to waive the applicability of
any regulation, including those
governing post-employment restrictions
for FDIC’s senior examiners, upon a
showing of good cause.
After comparing the FDIC’s rules with
the transferred OTS rule relating to post-
employment restrictions for senior
examiners, the FDIC has concluded that
part 336, subpart C more fully and
appropriately implements section 10(k)
of the FDIA for the purposes of the
FDIC, because it focuses on service as a
senior examiner of all insured
depository institutions, while the
transferred OTS rules found at part 390,
subpart A, apply only to senior
examiners of savings associations and
their holding companies.
Therefore, based on the above, the
FDIC proposes to rescind and remove
from the Code of Federal Regulations
the former OTS rules located at 12 CFR
part 390, subpart A. If the proposed rule
is adopted, all of the FDIC’s senior
examiners (including those former OTS
examiners who were transferred to the
FDIC when the OTS was abolished),
regardless of whether they evaluate
insured state banks or insured State
savings associations, will be subject to
the post-employment restrictions
currently set forth in 12 CFR part 336,
subpart C. Thus, for example, the part
336, subpart C rule will continue to
prohibit an FDIC examiner who has
served as a senior examiner of an
insured institution (whether state bank
or state savings association) for at least
2 months during the last 12 months of
employment with the FDIC from
knowingly accepting compensation as
an employee, officer, director, or
consultant from such insured institution
or any company that controls that
institution. 12 CFR 336.12(a).
In addition, this notice of proposed
rulemaking proposes to revise 12 CFR
part 336, subpart B by deleting a
reference to the ‘‘Office of Thrift
Supervision’’ in the definition of
‘‘Federal banking agency’’ described in
section 336.3(e) and adding the words
‘‘predecessors or’’ in front of the word
‘‘successors’’. This proposed revision
will help avoid any public confusion by
deleting the reference to the former
Office of Thrift Supervision while
retaining the indirect reference to that
former agency by adding a reference to
‘‘predecessors’’ to the definition of
‘‘Federal Banking agency’’. Further, by
including predecessor agencies of the
FDIC as Federal banking agencies for
purposes of this part, the proposed rule
would restrict a potential employee who
had been associated with a State savings
association from future FDIC
employment if the potential employee
had been subject to a final enforcement
action by the former OTS. See 12 CFR
336.4(a)(2) and 336.5(a)(2).
II. The Proposal
Regarding the functions of the former
OTS that were transferred to the FDIC,
section 316(b)(3) of the Dodd-Frank Act
(12 U.S.C. 5414(c)) in pertinent part
provides that the former OTS’s
regulations will be enforceable by the
FDIC until they are modified,
terminated, set aside, or superseded in
accordance with applicable law. After
reviewing the former OTS rules
regarding restrictions on post-
employment activities of senior
examiners currently found in 12 CFR
part 390, subpart A, the FDIC, as the
appropriate federal banking agency for
State savings associations, proposes to
rescind these regulations in their
entirety. The FDIC believes that the
rules found at 12 CFR part 336, subpart
C should alone apply to the post-
employment activities of senior
examiners who examine either insured
State banks or insured State savings
associations and that the rules found at
12 CFR part 390, subpart A are
essentially duplicative to those found in
part 336, subpart C. Rescinding part
390, subpart A will serve to streamline
the FDIC’s rules and eliminate
unnecessary regulations.
The FDIC is also proposing in this
notice of proposed rulemaking to revise
12 CFR part 336, Subpart B by deleting
a reference to the ‘‘Office of Thrift
Supervision’’ in the definition of
‘‘Federal banking agency’’ described in
section 336.3(e) and by adding the
words ‘‘predecessors or’’ in front of the
word ‘‘successors’’. Deletion of the
reference to that former federal agency
should help eliminate any public
confusion. However, adding the
reference to ‘‘predecessors’’ in section
336.3(e) provides an indirect reference
to the Office of Thrift Supervision if
appropriate in the context of subpart
B—Minimum Standards of Fitness for
Employment With the Federal Deposit
Insurance Corporation. With the
proposed amendment, even though the
OTS no longer exists as Federal banking
agency, no person would be permitted
to become employed by the FDIC if they
VerDate Mar<15>2010 18:08 Sep 03, 2013 Jkt 229001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\04SEP1.SGM 04SEP1
tkelley on DSK3SPTVN1PROD with PROPOSALS