42225Federal Register / Vol. 79, No. 139 / Monday, July 21, 2014 / Proposed Rules
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010) (codified at 12 U.S.C. 5301 et seq.).
2 76 FR 39247 (July 6, 2011).
applicant for implementation of the
proposed regulations. The draft
guidance document is intended for use
by applicants, licensees, Agreement
States, and the NRC staff. The draft
guidance document (ADAMS Accession
No. ML13172A189) has three parts: The
first two are revisions to existing
guidance in the NUREG–1556,
‘‘Consolidated Guidance About
Materials Licenses’’, series of volumes
for medical uses and commercial
nuclear pharmacies; and the third part
is a series of questions and answers to
assist licensees in understanding and
implementing the new proposed
regulatory changes. The NUREG–1556
documents mainly provide guidance to
applicants in the completion and
submission of materials license
applications. The documents also
include model procedures that an
applicant may want to use when
developing its radiation safety program,
as well as tools that licensees may
employ when completing the
corresponding material license
applications.
Parts 1 and 2 of the draft guidance
document will be incorporated into the
next comprehensive revision of relevant
volumes of NUREG–1556.
Part 3 of the draft guidance document
will be added to the NRC’s Medical
Uses Licensee Toolkit Web site (http://
www.nrc.gov/materials/miau/med-use-
toolkit.html) when the questions and
answers are finalized.
Dated at Rockville, Maryland, this 10th day
of March 2014.
Laura A. Dudes,
Director, Division of Materials Safety and
State Agreements, Office of Federal and State
Materials, and Environmental Management
Programs.
[FR Doc. 2014–16752 Filed 7–18–14; 8:45 am]
BILLING CODE 7590–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 348 and 390
RIN 3064–AE20
Transferred OTS Regulations and FDIC
Regulations Regarding Management
Official Interlocks
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 parts of
our regulations, entitled ‘‘Management
Official Interlocks’’ relating to State
savings associations. 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’’). The requirements
for State savings associations in the
transferred OTS regulations are
substantively similar to those in the
FDIC’s regulations, which is also
entitled ‘‘Management Official
Interlocks’’ and is applicable for all
insured depository institutions (‘‘IDIs’’)
for which the FDIC has been designated
the appropriate Federal banking agency.
Upon removal of the transferred OTS
regulations applicable for all IDIs for
which the FDIC has been designated the
appropriate Federal banking agency will
be found in our regulations.
DATES: Comments must be received on
or before September 19, 2014.
ADDRESSES: You may submit comments
by any of the following methods:
• FDIC Web site: http://www.fdic.gov/
regulations/laws/federal/. Follow
instructions for submitting comments
on the agency Web site.
• FDIC Email: Comments@fdic.gov.
Include RIN # 3064–AE20 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/,
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:
Martha L. Ellett, Legal Division, (202)
898–6765; Mark Mellon, Legal Division,
(202) 898–3884; Jennifer Maree, Legal
Division, (202) 898–6543; Deborah S.
Calvert, Division of Risk Management
Supervision, (703) 254–0976.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act
The Dodd-Frank Act 1 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, codified at 12
U.S.C. 5411, (‘‘Transfer Date’’), the
powers, duties, and functions formerly
performed by the OTS were respectively
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, codified
at 12 U.S.C. 5414(b), provides the
manner of treatment for all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS. The
section provides that if such materials
were in effect on the day before the
Transfer Date, they continue to be 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,
codified at 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, codified at 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
VerDate Mar<15>2010 16:47 Jul 18, 2014 Jkt 232001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\21JYP1.SGM 21JYP1
tkelley on DSK3SPTVN1PROD with PROPOSALS
1 Dodd-Frank Wall Street Reform and Consumer
Protection Act, Public Law 111–203, 124 Stat. 1376
(2010) (codified at 12 U.S.C. 5301 et seq.).
2 76 FR 39247 (July 6, 2011).
applicant for implementation of the
proposed regulations. The draft
guidance document is intended for use
by applicants, licensees, Agreement
States, and the NRC staff. The draft
guidance document (ADAMS Accession
No. ML13172A189) has three parts: The
first two are revisions to existing
guidance in the NUREG–1556,
‘‘Consolidated Guidance About
Materials Licenses’’, series of volumes
for medical uses and commercial
nuclear pharmacies; and the third part
is a series of questions and answers to
assist licensees in understanding and
implementing the new proposed
regulatory changes. The NUREG–1556
documents mainly provide guidance to
applicants in the completion and
submission of materials license
applications. The documents also
include model procedures that an
applicant may want to use when
developing its radiation safety program,
as well as tools that licensees may
employ when completing the
corresponding material license
applications.
Parts 1 and 2 of the draft guidance
document will be incorporated into the
next comprehensive revision of relevant
volumes of NUREG–1556.
Part 3 of the draft guidance document
will be added to the NRC’s Medical
Uses Licensee Toolkit Web site (http://
www.nrc.gov/materials/miau/med-use-
toolkit.html) when the questions and
answers are finalized.
Dated at Rockville, Maryland, this 10th day
of March 2014.
Laura A. Dudes,
Director, Division of Materials Safety and
State Agreements, Office of Federal and State
Materials, and Environmental Management
Programs.
[FR Doc. 2014–16752 Filed 7–18–14; 8:45 am]
BILLING CODE 7590–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 348 and 390
RIN 3064–AE20
Transferred OTS Regulations and FDIC
Regulations Regarding Management
Official Interlocks
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 parts of
our regulations, entitled ‘‘Management
Official Interlocks’’ relating to State
savings associations. 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’’). The requirements
for State savings associations in the
transferred OTS regulations are
substantively similar to those in the
FDIC’s regulations, which is also
entitled ‘‘Management Official
Interlocks’’ and is applicable for all
insured depository institutions (‘‘IDIs’’)
for which the FDIC has been designated
the appropriate Federal banking agency.
Upon removal of the transferred OTS
regulations applicable for all IDIs for
which the FDIC has been designated the
appropriate Federal banking agency will
be found in our regulations.
DATES: Comments must be received on
or before September 19, 2014.
ADDRESSES: You may submit comments
by any of the following methods:
• FDIC Web site: http://www.fdic.gov/
regulations/laws/federal/. Follow
instructions for submitting comments
on the agency Web site.
• FDIC Email: Comments@fdic.gov.
Include RIN # 3064–AE20 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/,
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:
Martha L. Ellett, Legal Division, (202)
898–6765; Mark Mellon, Legal Division,
(202) 898–3884; Jennifer Maree, Legal
Division, (202) 898–6543; Deborah S.
Calvert, Division of Risk Management
Supervision, (703) 254–0976.
SUPPLEMENTARY INFORMATION:
I. Background
The Dodd-Frank Act
The Dodd-Frank Act 1 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, codified at 12
U.S.C. 5411, (‘‘Transfer Date’’), the
powers, duties, and functions formerly
performed by the OTS were respectively
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, codified
at 12 U.S.C. 5414(b), provides the
manner of treatment for all orders,
resolutions, determinations, regulations,
and advisory materials that had been
issued, made, prescribed, or allowed to
become effective by the OTS. The
section provides that if such materials
were in effect on the day before the
Transfer Date, they continue to be 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,
codified at 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, codified at 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
VerDate Mar<15>2010 16:47 Jul 18, 2014 Jkt 232001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\21JYP1.SGM 21JYP1
tkelley on DSK3SPTVN1PROD with PROPOSALS
42226 Federal Register / Vol. 79, No. 139 / Monday, July 21, 2014 / Proposed Rules
3 76 FR 47652 (Aug. 5, 2011).
4 Home Owners’ Loan Act, Public Law 101–73;
§ 301, 103 Stat. 277, (1989) (codified at 12 U.S.C.
1461 et seq.)
5 12 U.S.C. 3201 et seq.
6 Public Law 95–630, 92 Stat. 3665 (Nov. 10,
1978).
7 The joint rulemaking included the Federal
Home Loan Bank Board, the OTS’s predecessor
agency.
8 44 FR 42152 (July 19, 1979).
9 12 U.S.C. 4803(a).
10 61 FR 40293 (Aug. 2, 1996).
11 12 U.S.C. 4308(a)(1)(A).
12 12 U.S.C. 4308(a)(1)(B).
13 12 U.S.C. 4308(a)(3).
14 61 FR 40293 (Aug. 2, 1996).
15 12 CFR 348.1.
16 12 CFR 390.400.
17 The Interlocks Act contains an additional
exemption for interlocks as a result of an emergency
acquisition of a savings association authorized in
accordance with section 13(k) of the Federal
Deposit Insurance Act (12 U.S.C. 1823(k)) if the
FDIC has given its approval to the interlock. The
FDIC will continue to list this additional exemption
in its management interlocks regulation in part 348.
Act affected the FDIC’s existing
authority to issue regulations under the
Federal Deposit Insurance Act (‘‘FDI
Act’’) and other laws as the ‘‘appropriate
Federal banking agency’’ or under
similar statutory terminology. Section
312(c) of the Dodd-Frank Act amended
the definition of ‘‘appropriate Federal
banking agency’’ contained in section
3(q) of the FDI Act, 12 U.S.C. 1813(q),
to add State savings associations to the
list of entities for which the FDIC is
designated as the ‘‘appropriate Federal
banking agency.’’ As a result, when the
FDIC acts as the designated
‘‘appropriate Federal banking agency,’’
or under similar terminology, for State
savings associations, as it does here, the
FDIC is authorized to issue, modify and
rescind regulations involving such
associations, as well as for State
nonmember banks and insured branches
of foreign banks.
As noted, on June 14, 2011, 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 other
FDIC rules, amending them, or
rescinding them, as appropriate.
One of the OTS rules transferred to
the FDIC governed management official
interlocks. The OTS rule, formerly
found at 12 CFR part 563f (‘‘part 563f’’),
was transferred to the FDIC with only
minor, nonsubstantive changes and is
now found in the FDIC’s rules at part
390, subpart V, entitled ‘‘Management
Official Interlocks.’’ Before the transfer
of the OTS rules and continuing today,
the FDIC’s rule contained in part 348,
also entitled ‘‘Management Official
Interlocks,’’ prohibits a management
official from serving two nonaffiliated
depository organizations in situations
where the management interlock likely
would have an anticompetitive effect.
After careful review and comparison of
part 390, subpart V and part 348, the
FDIC proposes to rescind part 390,
subpart V, because, as discussed below,
it is substantively redundant to existing
part 348. Simultaneously we propose to
make technical conforming edits to our
existing rule and add an exemption to
part 348 applicable to State savings
associations which have issued stock in
connection with a qualified stock
issuance pursuant to section 10(q) of
HOLA.4
FDIC’s Existing 12 CFR Part 348 and
Former OTS’s Part 563f (Transferred, In
Part, to FDIC’s Part 390, Subpart V)
The Depository Institution
Management Interlocks Act (‘‘Interlocks
Act’’) 5 was enacted as Title II of the
Financial Institutions Regulatory and
Interest Rate Control Act of 1978.6 The
Interlocks Act generally prohibits bank
management officials from serving
simultaneously with two unaffiliated
depository institutions or their holding
companies (‘‘depository organizations’’).
The purpose of the Interlocks Act and
the rules governing management
interlocks generally is to foster
competition between unaffiliated
institutions. Thus, the Interlocks Act
seeks to prohibit interlocks that could
enable two institutions to engage in
anticompetitive behavior. The scope of
the prohibition depends on the size and
location of the organizations involved.
For example, the Interlocks Act
prohibits interlocks between
unaffiliated depository organizations,
regardless of size, if each organization
has an office in the same community
(the ‘‘community prohibition’’).
Interlocks are also prohibited between
unaffiliated depository organizations if
each organization has total assets of $50
million or more and has an office in the
same relevant metropolitan statistical
area (‘‘RMSA’’) (the ‘‘RMSA
prohibition’’). The Interlocks Act also
prohibits interlocks between
unaffiliated depository organizations,
regardless of location, if each
organization has total assets exceeding
specified thresholds (the ‘‘major assets
prohibition’’).
On July 19, 1979, the FDIC, the OTS,7
the OCC, and the FRB (collectively, the
‘‘Federal banking agencies’’), published
a joint final rule to implement the
statutory mandates of the Interlocks
Act.8 On August 2, 1996, in order to
comply with the mandate of section
303(a) of the Riegle Community
Development and Regulatory
Improvement Act of 1994 (‘‘CDRI
Act’’),9 the Federal banking agencies
published a joint final rule 10 to
implement revisions to the Management
Official Interlocks regulations.
Section 303(a) of the CDRI Act,
requires the Federal banking agencies to
conduct a systematic review of their
regulations and written policies in order
to streamline and modify them to
improve efficiency, reduce unnecessary
costs, and eliminate constraints on
credit availability.11 Section 303(a) also
instructs the Federal banking agencies
to remove inconsistencies and
outmoded and duplicative
requirements.12 Finally, section 303(a)
requires the Federal banking agencies to
consult and coordinate with one another
‘‘to make uniform all regulations and
guidelines implementing common
statutory or supervisory policies.’’ 13
Pursuant to the CDRI’s mandate, the
Federal banking agencies consulted and
coordinated with respect to this
rulemaking and on an interagency basis
jointly issued rules that are
substantively similar with regard to
management official interlocks.14
Accordingly, the portion of the OTS
regulations that applied to State savings
associations and their affiliates,
originally codified at 12 CFR part 563f
and subsequently transferred to FDIC’s
part 390, subpart V, is substantively
similar to the current FDIC regulations
in part 348, with the following
exceptions. Specifically, part 348 of the
FDIC regulations applies to management
officials of insured nonmember banks
and their affiliates,15 while part 390,
subpart V applies to management
officials of State savings associations
and their affiliates.16 part 390, subpart V
also contains an exception from the
prohibition against management
interlocks that is not included in part
348. This exception, found in
390.403(i), allows a State savings
association that has issued stock in
connection with a qualified stock
issuance pursuant to section 10(q) of
HOLA to be exempt from the
prohibition against management
interlocks.17 By amending part 348 and
rescinding part 390, subpart V, the FDIC
will streamline its regulations and
reduce redundancy.
VerDate Mar<15>2010 16:47 Jul 18, 2014 Jkt 232001 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 E:\FR\FM\21JYP1.SGM 21JYP1
tkelley on DSK3SPTVN1PROD with PROPOSALS
3 76 FR 47652 (Aug. 5, 2011).
4 Home Owners’ Loan Act, Public Law 101–73;
§ 301, 103 Stat. 277, (1989) (codified at 12 U.S.C.
1461 et seq.)
5 12 U.S.C. 3201 et seq.
6 Public Law 95–630, 92 Stat. 3665 (Nov. 10,
1978).
7 The joint rulemaking included the Federal
Home Loan Bank Board, the OTS’s predecessor
agency.
8 44 FR 42152 (July 19, 1979).
9 12 U.S.C. 4803(a).
10 61 FR 40293 (Aug. 2, 1996).
11 12 U.S.C. 4308(a)(1)(A).
12 12 U.S.C. 4308(a)(1)(B).
13 12 U.S.C. 4308(a)(3).
14 61 FR 40293 (Aug. 2, 1996).
15 12 CFR 348.1.
16 12 CFR 390.400.
17 The Interlocks Act contains an additional
exemption for interlocks as a result of an emergency
acquisition of a savings association authorized in
accordance with section 13(k) of the Federal
Deposit Insurance Act (12 U.S.C. 1823(k)) if the
FDIC has given its approval to the interlock. The
FDIC will continue to list this additional exemption
in its management interlocks regulation in part 348.
Act affected the FDIC’s existing
authority to issue regulations under the
Federal Deposit Insurance Act (‘‘FDI
Act’’) and other laws as the ‘‘appropriate
Federal banking agency’’ or under
similar statutory terminology. Section
312(c) of the Dodd-Frank Act amended
the definition of ‘‘appropriate Federal
banking agency’’ contained in section
3(q) of the FDI Act, 12 U.S.C. 1813(q),
to add State savings associations to the
list of entities for which the FDIC is
designated as the ‘‘appropriate Federal
banking agency.’’ As a result, when the
FDIC acts as the designated
‘‘appropriate Federal banking agency,’’
or under similar terminology, for State
savings associations, as it does here, the
FDIC is authorized to issue, modify and
rescind regulations involving such
associations, as well as for State
nonmember banks and insured branches
of foreign banks.
As noted, on June 14, 2011, 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 other
FDIC rules, amending them, or
rescinding them, as appropriate.
One of the OTS rules transferred to
the FDIC governed management official
interlocks. The OTS rule, formerly
found at 12 CFR part 563f (‘‘part 563f’’),
was transferred to the FDIC with only
minor, nonsubstantive changes and is
now found in the FDIC’s rules at part
390, subpart V, entitled ‘‘Management
Official Interlocks.’’ Before the transfer
of the OTS rules and continuing today,
the FDIC’s rule contained in part 348,
also entitled ‘‘Management Official
Interlocks,’’ prohibits a management
official from serving two nonaffiliated
depository organizations in situations
where the management interlock likely
would have an anticompetitive effect.
After careful review and comparison of
part 390, subpart V and part 348, the
FDIC proposes to rescind part 390,
subpart V, because, as discussed below,
it is substantively redundant to existing
part 348. Simultaneously we propose to
make technical conforming edits to our
existing rule and add an exemption to
part 348 applicable to State savings
associations which have issued stock in
connection with a qualified stock
issuance pursuant to section 10(q) of
HOLA.4
FDIC’s Existing 12 CFR Part 348 and
Former OTS’s Part 563f (Transferred, In
Part, to FDIC’s Part 390, Subpart V)
The Depository Institution
Management Interlocks Act (‘‘Interlocks
Act’’) 5 was enacted as Title II of the
Financial Institutions Regulatory and
Interest Rate Control Act of 1978.6 The
Interlocks Act generally prohibits bank
management officials from serving
simultaneously with two unaffiliated
depository institutions or their holding
companies (‘‘depository organizations’’).
The purpose of the Interlocks Act and
the rules governing management
interlocks generally is to foster
competition between unaffiliated
institutions. Thus, the Interlocks Act
seeks to prohibit interlocks that could
enable two institutions to engage in
anticompetitive behavior. The scope of
the prohibition depends on the size and
location of the organizations involved.
For example, the Interlocks Act
prohibits interlocks between
unaffiliated depository organizations,
regardless of size, if each organization
has an office in the same community
(the ‘‘community prohibition’’).
Interlocks are also prohibited between
unaffiliated depository organizations if
each organization has total assets of $50
million or more and has an office in the
same relevant metropolitan statistical
area (‘‘RMSA’’) (the ‘‘RMSA
prohibition’’). The Interlocks Act also
prohibits interlocks between
unaffiliated depository organizations,
regardless of location, if each
organization has total assets exceeding
specified thresholds (the ‘‘major assets
prohibition’’).
On July 19, 1979, the FDIC, the OTS,7
the OCC, and the FRB (collectively, the
‘‘Federal banking agencies’’), published
a joint final rule to implement the
statutory mandates of the Interlocks
Act.8 On August 2, 1996, in order to
comply with the mandate of section
303(a) of the Riegle Community
Development and Regulatory
Improvement Act of 1994 (‘‘CDRI
Act’’),9 the Federal banking agencies
published a joint final rule 10 to
implement revisions to the Management
Official Interlocks regulations.
Section 303(a) of the CDRI Act,
requires the Federal banking agencies to
conduct a systematic review of their
regulations and written policies in order
to streamline and modify them to
improve efficiency, reduce unnecessary
costs, and eliminate constraints on
credit availability.11 Section 303(a) also
instructs the Federal banking agencies
to remove inconsistencies and
outmoded and duplicative
requirements.12 Finally, section 303(a)
requires the Federal banking agencies to
consult and coordinate with one another
‘‘to make uniform all regulations and
guidelines implementing common
statutory or supervisory policies.’’ 13
Pursuant to the CDRI’s mandate, the
Federal banking agencies consulted and
coordinated with respect to this
rulemaking and on an interagency basis
jointly issued rules that are
substantively similar with regard to
management official interlocks.14
Accordingly, the portion of the OTS
regulations that applied to State savings
associations and their affiliates,
originally codified at 12 CFR part 563f
and subsequently transferred to FDIC’s
part 390, subpart V, is substantively
similar to the current FDIC regulations
in part 348, with the following
exceptions. Specifically, part 348 of the
FDIC regulations applies to management
officials of insured nonmember banks
and their affiliates,15 while part 390,
subpart V applies to management
officials of State savings associations
and their affiliates.16 part 390, subpart V
also contains an exception from the
prohibition against management
interlocks that is not included in part
348. This exception, found in
390.403(i), allows a State savings
association that has issued stock in
connection with a qualified stock
issuance pursuant to section 10(q) of
HOLA to be exempt from the
prohibition against management
interlocks.17 By amending part 348 and
rescinding part 390, subpart V, the FDIC
will streamline its regulations and
reduce redundancy.
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