Removal of Transferred OTS Regulations Regarding Certain Subordinate Organizations of State Savings Associations
| Published date | 26 October 2020 |
| Citation | 85 FR 67684 |
| Record Number | 2020-23525 |
| Section | Proposed rules |
| Court | Federal Deposit Insurance Corporation |
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
67684
Vol. 85, No. 207
Monday, October 26, 2020
1
12 CFR part 390, subpart O.
2
12 CFR part 390.250.
3
12 CFR 390.251.
4
12 CFR 390.252.
5
12 CFR 390.253.
6
12 CFR 390.254.
7
12 CFR 390.255.
8
12 U.S.C. 1831e(a); 12 CFR part 362, subparts C
and D; 12 U.S.C. 1831n(a).
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 362 and 390
RIN 3064–AF37
Removal of Transferred OTS
Regulations Regarding Certain
Subordinate Organizations of State
Savings Associations
AGENCY
: Federal Deposit Insurance
Corporation.
ACTION
: Notice of proposed rulemaking
with request for public comment.
SUMMARY
: In order to streamline Federal
Deposit Insurance Corporation (FDIC)
regulations, the FDIC proposes to
rescind and remove from the Code of
Federal Regulations (CFR) regulations
entitled Subordinate Organizations that
were transferred to the FDIC from the
Office of Thrift Supervision (OTS) on
July 21, 2011, in connection with the
implementation of Title III of the Dodd-
Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act). The
proposed rule would rescind and
remove the transferred regulations
because the FDIC has determined that
the requirements for State savings
association subordinate organizations
included therein are substantially
similar to the requirements for State
savings associations and their
subsidiaries set forth by certain sections
of the Federal Deposit Insurance Act
(FDI Act) and its implementing
regulations. Therefore, the FDIC is
proposing to remove the transferred
regulations and proposes to use certain
substantially similar FDIC regulations,
as applicable, to achieve substantially
similar supervisory results for State
savings associations and their
subsidiaries as could be obtained
through the application of the
transferred regulations.
DATES
: Comments must be received on
or before November 25, 2020.
ADDRESSES
: You may submit comments
by any of the following methods:
•Agency website: https://
www.fdic.gov/regulations/laws/federal/.
Follow instructions for submitting
comments on the agency website.
•FDIC Email: Comments@fdic.gov.
Include RIN 3064–AF37 on the subject
line of the message.
•Mail: Robert E. Feldman, Executive
Secretary, Attention: Comments/RIN
3064–AF37, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
•Hand Delivery/Courier: Comments
may be hand-delivered to the guard
station at the rear of the 550 17th Street
NW building (located on F Street) on
business days between 7 a.m. and 5 p.m.
•Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
Public Inspection: All comments
received will be posted without change
to https://www.fdic.gov/regulations/
laws/federal/, including any personal
information provided. Paper copies of
public comments may be ordered from
the FDIC Public Information Center,
3501 North Fairfax Drive, Room E–1002.
Please include your name, affiliation,
address, email address, and telephone
number(s) in your comment. 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 https://www.fdic.gov/regulations/
laws/federal/, including any personal
information provided.
FOR FURTHER INFORMATION CONTACT
:
Donald Hamm, Special Advisor, (202)
898–3528, dhamm@fdic.gov; or Shelli
Coffey, Review Examiner, (312) 382–
7539, scoffey@fdic.gov, Risk
Management and Applications, Division
of Risk Management Supervision;
Suzanne Dawley, Counsel, sudawley@
fdic.gov; or Karlyn J. Hunter, Counsel,
khunter@fdic.gov, Legal Division.
SUPPLEMENTARY INFORMATION
:
I. Policy Objective
The policy objective of the proposed
rule is to simplify the FDIC’s regulations
by removing unnecessary regulations
and realigning existing regulations in
order to improve the public’s
understanding of the rules and to
improve the ease of the public’s
reference to them. Thus, as further
detailed in this section, the FDIC
proposes to rescind and remove from
the CFR part 390, subpart O.
1
Pursuant
to subpart O, the FDIC may, at any time,
limit a State savings association’s
investment in their subordinate
organizations, or may limit or refuse to
permit any activities of any of these
entities for supervisory, legal, or safety
and soundness reasons.
2
Subpart O includes definitions related
to State savings association
subsidiaries,
3
a requirement for the
parent State savings association and its
subsidiaries to maintain separate
corporate identities,
4
a prior notice
requirement for a State saving
association seeking to establish or
acquire a new subsidiary or engage in
new activities through an existing
subsidiary,
5
requirements related to the
issuance of securities by a subsidiary,
6
and requirements for the exercise of
salvage power by a State savings
association.
7
The FDIC has determined that the
requirements for State savings
association subordinate organizations
set forth in subpart O are substantially
similar to requirements of section 28
and its implementing regulations,
subpart C and subpart D of part 362 of
the FDIC’s Rules and Regulations, and
section 37 of the FDI Act.
8
Therefore,
the FDIC is proposing to remove subpart
O and proposes to use part 362, subpart
C and subpart D, as applicable, to
achieve substantially similar
supervisory results for State savings
associations and subsidiaries as could
be obtained through the application of
subpart O.
II. Background
A. The Dodd-Frank Act
The Dodd-Frank Act, signed into law
on July 21, 2010, provided for a
substantial reorganization of the
regulation of State and Federal savings
associations and their holding
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9
Public Law 111–203, 124 Stat. 1376 (2010).
10
12 U.S.C. 5411.
11
12 U.S.C. 5414(b).
12
12 U.S.C. 5414(c).
13
76 FR 39246 (July 6, 2011).
14
12 U.S.C. 5412(b)(2)(B)(i)(II).
15
12 U.S.C. 1811 et seq.
16
12 U.S.C. 5412(c)(1).
17
12 U.S.C. 1813(q).
18
76 FR 47652 (Aug. 5, 2011).
19
Id.
20
61 FR 66561, 66562 (Dec. 18, 1996).
21
Id at 66563.
22
Id. at 66567.
23
Id.
24
Id.
25
Id. For example, a salvage investment in a
nonincludable subsidiary would be deducted in
calculating the State savings association’s capital.
26
12 CFR part 390, subpart O.
27
12 U.S.C. 5414(b)(3).
companies.
9
Beginning July 21, 2011,
the transfer date established by section
311 of the Dodd-Frank Act,
10
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
11
provides the
manner of treatment of 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 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.
Pursuant to section 316(c) of the
Dodd-Frank Act,
12
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.
13
Although section 312(b)(2)(B)(i)(II) of
the Dodd-Frank Act
14
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 Federal Deposit
Insurance Act (FDI Act)
15
and other
laws as the ‘‘appropriate Federal
banking agency’’ or under similar
statutory terminology. Section 312(c) of
the Dodd-Frank Act
16
revised the
definition of ‘‘appropriate Federal
banking agency’’ contained in section
3(q) of the FDI Act
17
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 is designated
as the ‘‘appropriate Federal banking
agency’’ (or under similar terminology)
for State savings associations, the FDIC
is authorized to issue, modify, and
rescind regulations involving such
associations.
As noted, on July 14, 2011, operating
pursuant to this authority, the FDIC’s
Board of Directors reissued and re-
designated 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.
18
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.
19
B. 12 CFR Part 559
In 1996, the OTS adopted part 559,
entitled Subordinate Organizations,
which updated and substantially
streamlined its regulations and
statements of policy concerning
subsidiaries and other subordinate
organizations in which savings
associations have ownership interests
(including operating subsidiaries and
service corporations) and equity
investments (including pass-through
investments).
20
Part 559 consolidated
all OTS regulations affecting thrift
subsidiaries in order to make it easier
for savings associations to find and use
these regulations.
The definitions in part 559 were
derived in large part from existing OTS
regulatory or statutory definitions.
21
Subpart B of part 559 was applicable to
all savings associations. Section 559.10
prescribed requirements for a savings
association and its subordinate
organizations to establish and maintain
separate identities in order to reduce the
potential for customer confusion and to
allow a court to hold the parent savings
association liable for the subordinate
organization’s conduct or obligations. In
order to establish or acquire a new
subsidiary or engage in new activities,
savings associations were required to
follow the notice procedures set forth in
§ 559.11.
Part 559 addressed securities and
investments issues related to savings
associations as well. Section 559.12
included a replacement for an existing
OTS regulation that required a savings
association to notify the OTS before a
subsidiary issues securities, regardless
of the purpose for which the proceeds
will be used, and incorporated
requirements providing that securities
issued by all subsidiaries state that they
are not covered by federal deposit
insurance and may not be called or
accelerated in the event of the savings
association’s insolvency.
22
Section
559.13 replaced the application
procedure for salvage investments, with
a 30-day notice requirement.
23
In the
notice, a savings association must fully
document its additional investment in a
service corporation or a lower-tier entity
in a manner that demonstrates how its
action is consistent with safety and
soundness and document the other
salvage alternatives that it considered.
24
The OTS added language to emphasize
that investments made using salvage
power authority continue to be
considered investments for purposes of
the capital regulation.
25
C. Part 390, Subpart O
12 CFR part 559, as discussed above,
was transferred to the FDIC with
nominal changes. It is now found in the
FDIC’s rules at subpart O, entitled
Subordinate Organizations.
26
Subpart O
governs a range of requirements for
subordinate organization of State
savings associations, as further
discussed below.
III. The Proposal
Section 316(b)(3) of the Dodd-Frank
Act in pertinent part, provides that the
regulations of the former OTS, as they
apply to State savings associations, will
be enforceable by the FDIC until they
are modified, terminated, set aside, or
superseded in accordance with
applicable law.
27
Consistent with the
FDIC’s stated intention to evaluate
transferred OTS regulations before
taking action on them, the FDIC
conducted a careful review of subpart O
and related Federal statutes, regulation,
and statements of policy relevant to
subordinate organizations of State
savings associations. As discussed in
Part III of this Supplementary
Information section, the FDIC proposes
to rescind and remove subpart O in its
entirety, because the provisions
contained there are duplicative of
substantially similar FDIC statutory or
regulatory provisions, or guidance that
produce the same supervisory result.
Section 28 of the FDI Act prohibits a
State savings association from engaging
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28
12 U.S.C. 1831e(a).
29
12 U.S.C. 1464 et seq.
30
12 CFR 362.9(a).
31
12 U.S.C. 1828(m).
32
12 U.S.C. 1818(b); 1818(i).
33
The FDIC rescinded control definition at
§391.41 as part of its 2015 Filing Requirements and
Processing Procedures for Changes in Control with
respect to State Nonmember Banks and State
Savings Associations rulemaking. 80 FR 65889 (Oct.
28, 2015).
34
12 CFR 391.41 (2015).
35
12 CFR 362.2(e).
36
12 CFR 5.59(d); 12 CFR part 225.
37
12 CFR 362.2(g).
38
61 FR at 66563.
as principal in any type of activity, or
in any activity in an amount, that is not
permissible for a Federal savings
association unless the FDIC has
determined the activity would pose no
significant risk to the Deposit Insurance
Fund (DIF); and the savings association
is and continues to be in compliance
with the capital standards set forth in
section 5(t) of HOLA.
28
The FDIC
proposes to use 12 CFR part 362,
Activities of Insured State Banks and
Insured Savings Associations, as
applicable, which provides a
substantially similar process for an
insured State savings association, or its
subsidiary, to apply for prior consent
from the FDIC to engage in certain
activities, that are not otherwise
prohibited by federal or state law, while
reaching substantially the same result as
provided in subpart O without the
burden of referring to a duplicative set
of regulations.
Subpart C of part 362 governs the
activities of insured State savings
associations and implements section
28(a) of the FDI Act, which restricts and
prohibits insured state savings
associations and their service
corporations from engaging in activities
and investments of a type that are not
permissible for a Federal savings
association and their service
corporations.
Subpart D of part 362 governs
acquiring, establishing, or conducting
new activities through a subsidiary by
an insured State savings association,
and implements section 18(m) of the
FDI Act, which requires that prior
notice be given to the FDIC when an
insured savings association establishes
or acquires a subsidiary or engages in
any new activity in a subsidiary. In
doing so it applies the definitions of
§ 362.2 unless otherwise indicated. The
phrase ‘‘activity permissible for a
Federal savings association’’ means any
activity authorized for a Federal savings
association under any statute including
the Home Owners’ Loan Act (HOLA),
29
as well as activities recognized as
permissible for a Federal savings
association in regulations issued by the
OCC or in bulletins, orders or written
interpretations issued by the OCC, or by
the former OTS until modified,
terminated, set aside, or superseded by
the OCC.
30
IV. Section-by-Section Analysis
A. Section 390.250—What does this
subpart cover?
Section 390.250 sets forth the FDIC’s
general rulemaking and supervisory
authority under the FDI Act, its specific
authority under section 18(m) of the
Federal Deposit Insurance Act
31
and
subpart O’s application to subordinate
organizations of State savings
associations. Pursuant to this section,
the FDIC may, at any time, limit a State
savings association’s investment in any
of its subordinate organizations, or may
limit or refuse to permit any activities
of any of these entities for supervisory,
legal, or safety and soundness reasons.
For the purposes of subpart O, notices
are applications for purposes of
statutory and regulatory references to
the term ‘‘applications.’’ Further, any
conditions that the FDIC imposes in
approving any application are
enforceable as a condition imposed in
writing by the FDIC in connection with
the granting of a request by a State
savings association within the meaning
of section 8(b) or 8(i) of the FDI Act.
32
Part 362, which includes subparts C
and D, is issued pursuant to several
FDIC authorities, including the FDIC’s
general rulemaking authority pursuant
to section 9(a)(Tenth) and section 28 of
the FDI Act, the FDIC’s statutory
authority over the activities of State
savings associations and subsidiaries,
that are substantially similar to the
authorizing statutes pursuant to which
subpart O and § 390.250 were issued.
Therefore, the FDIC is proposing to
remove subpart O and proposes to use
part 362, subparts C and D, as
applicable, to achieve substantially
similar supervisory results for State
savings associations and subsidiaries as
could be obtained through subpart O.
B. Section 390.251—Definitions
Section 390.251 is a definition section
related to subordinate organizations.
Included in the definitions section are:
Control, GAAP-consolidated subsidiary,
lower-tier entity, ownership interest,
subordinate organization, and,
subsidiary.
The control definition is a cross-
reference to the former OTS § 391.41
definition,
33
which provided that a
controlling shareholder is any person
who, directly or indirectly, or acting in
concert with one or more persons or
companies, or together with members of
his or her immediate family, owns,
controls, or holds with power to vote 10
percent or more of the voting stock of
a company, or controls in any manner
the election or appointment of a
majority of the company’s board of
directors.
34
For the purposes of State
savings associations and their services
companies, the FDIC proposes to apply
the § 362.2(e) control definition.
Pursuant to § 362.2(e), control means
‘‘the power to vote, directly or
indirectly, 25 percent or more of any
class of the voting securities of a
company, the ability to control in any
manner the election of a majority of a
company’s directors or trustees, or the
ability to exercise a controlling
influence over the management and
policies of a company.’’
35
This
definition is consistent with the control
definition applicable to service
companies of Federal savings
associations which references the FRB’s
part 225, Regulation Y.
36
The definition of equity investment in
§ 362.2(g) is broader than the definition
of ownership interest in 390.251, which
‘‘means any equity interest in a business
organization, including stock, limited or
general partnership interests, or shares
in a limited liability company.’’ Equity
investment ‘‘means an ownership
interest in any company; any
membership interest that includes a
voting right in any company; any
interest in real estate; any transaction
which in substance falls into any of
these categories even though it may be
structured as some other form of
business transaction; and includes an
equity security.’’
37
Similarly, the
definition of subsidiary pursuant to
§ 362.2(r) is substantially similar to the
subsidiary definition in § 390.251. The
distinction is that § 362.2(r) defines a
subsidiary as ‘‘any company that is
owned or controlled directly or
indirectly by one or more insured
depository institutions, rather than only
by a State savings association.’’
In the 1996 preamble to part 559, the
OTS stated that the subordinate
organization definition encompassed all
business organizations in which a
savings association has a direct or
indirect ownership interest except
where that ownership interest has been
acquired through the use of the savings
association’s pass-through investment
authority.
38
The OTS further explained
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39
Id.
40
80 FR 28414, May 18, 2015. Regulations
pertaining to operating subsidiaries of Federal
savings associations and service corporations are
found at 12 CFR 5.38 and 5.59, respectively.
41
12 U.S.C. 1831n(a)(2); 12 U.S.C. 1463(b)(2).
42
Instructions for Preparation of Consolidated
Reports of Condition and Income, Form FFIEC 031
and 041 https://www.ffiec.gov/pdf/FFIEC_forms/
FFIEC031_FFIEC041_201906_i.pdf.
43
61 FR at 66567.
44
12 CFR 390.252(a).
45
12 CFR 362.4(c). See FIL–97–97. September 23,
1997.
46
12 CFR 362.13.
47
Section 362.4(c)(2)(vii) corresponds to
§§390.252(a)(4) and (5).
48
The OCC retained separate corporate identity
provisions for service corporation in its 2015 final
rule integrating licensing rules of national banks
and Federal savings associations. 80 FR 28467, May
18, 2015. 12 CFR 5.59(e)(8).
49
12 CFR 390.253. See 12 U.S.C 1828(m)(1).
the term was adopted primarily in order
to avoid potential confusion arising
from the use of the term subsidiary both
as a generic term for a business
organization in which a savings
association has an ownership interest
and as a more specific term used to
describe a narrower category of
companies in which the savings
association’s ownership interest is
significant enough to give it direct or
indirect control.
39
The OTS also added
to part 559 lower-tier entity, which
includes all business organizations in
which an operating subsidiary, service
corporation, or other subordinate
organization has an ownership interest,
such as second-tier service corporations
or service corporation subsidiaries. The
distinctions in these two definitions do
not appear to enhance the quality of
State savings association supervision
from the perspective of the State savings
association or the FDIC, as supervisor;
therefore, the FDIC proposes to rescind
and remove these definitions. Likewise,
the OCC rescinded and removed these
definitions in the 2015 rule integrating
licensing rules of national banks and
Federal savings associations.
40
Lastly, the FDIC believes that a
separate definition for GAAP-
consolidated subsidiary is unnecessary
as State savings association reports and
financial statements are required to be
uniform and consistent with U.S.
generally accepted accounting
principles (GAAP) pursuant to section
37 of the FDI Act and section 4(b) of the
Homeowners Owners Loan Act
(HOLA).
41
Further, the instructions to
the Consolidated Reports of Condition
and Income (Call Report) state that the
regulatory reporting requirements
applicable to the Call Report shall
conform to GAAP as set forth in the
Financial Accounting Standards Board’s
Accounting Standards Codification.
42
Because State savings associations have
existing statutory directives to use
GAAP in reporting and financial
statements, eliminating a substantially
similar regulation regarding GAAP-
consolidated subsidiaries likely would
not affect the quality of State savings
association reporting and financial
statements.
For these reasons, the FDIC proposes
to rescind § 390.251 in its entirety.
C. Section 390.252—How must separate
corporate entities be maintained?
Section 390.252 requires State savings
associations and their subordinate
organizations to operate in a manner
that demonstrates to the public that they
are separate corporate entities because
of concerns that a failure to maintain
separate corporate existences could
potentially result in a court, for
equitable reasons, holding the savings
association liable for the obligations of
the subordinate organization.
43
This
requires that State savings associations
and their subordinate organizations
must independently meet in order to
meet this requirement. The
requirements provide that each State
savings association and subordinate
organization: (1) Avoid intermingling
their business transactions, accounts
and records; (2) observe separate
corporate procedures; (3) be adequately
financed as separate entities based on
the character and size of their respective
businesses; (4) each independently hold
out itself to the public as separate
enterprise; and that (5) indicate that the
State savings association is not liable for
any borrowings by the subordinate
organization, unless the parent State
savings association has guaranteed a
loan to the subordinate organization.
44
The core eligibility requirements in
§ 362.4(c) describe corporate
separateness in the context of the state-
chartered depository institution-
subsidiary. The eligible subsidiary
requirements in 362.4(c)(2)—which are
more detailed than eligible subsidiary
requirements of 390.252—are designed
specifically for the bank/subsidiary
relationship, and provide for separation
between the state-chartered depository
institution and its subsidiary to lessen
the possibility of piercing the corporate
veil; deduction of the state-chartered
depository institution investment in the
subsidiary to segregate the capital
supporting the state-chartered
depository institution from the capital
supporting the subsidiary; and
limitations on the state-chartered
depository institution’s investment in
the subsidiary and on transactions with
the subsidiary to ensure transactions are
arms-length.
45
The eligible subsidiary
requirements are also incorporated into
§ 362.13. Section 362.13 permits a State
savings association that previously filed
an application, and obtained the FDIC’s
consent to engage in an activity or to
acquire or retain an investment in a
service corporation engaging as
principal in an activity, to continue the
activity or retain the investment without
seeking the FDIC’s consent, provided
the State savings association and the
service corporation, if applicable,
continue to meet the conditions and
restrictions of approval if the insured
state savings association and any
applicable service corporation meet the
requirements of § 362.4(c)(2).
46
The provisions of § 362.4(c)(2) that are
duplicative of § 390.251 require that an
eligible subsidiary: (1) Meet applicable
statutory or regulatory capital
requirements and have sufficient
operating capital for normal obligations
that are reasonably foreseeable for a
business of its size and character; (2) be
physically separate and distinct in its
operations from the operations of the
state-chartered depository institution;
(3) maintain separate accounting and
other business records; (4) observe
separate business entity formalities; (5)
conduct business pursuant to
independent policies and procedures
designed to inform customers and
prospective customers of the subsidiary
that the subsidiary is a separate
organization from the state-chartered
depository institution; and (6) that the
state-chartered depository institution is
not responsible for, and does not
guarantee, the obligations of the
subsidiary.
47
State savings associations and service
corporations that qualify as eligible
depository institutions and eligible
subsidiaries pursuant to § 362.4(c)
maintain separate corporate identities,
which should sufficiently insulate State
savings associations from the liabilities
of subsidiaries. For this reason, the FDIC
proposes to remove and rescind
§ 390.252 as duplicative.
48
D. Section 390.253—What notices are
required to establish or acquire a new
subsidiary or engage in new activities
through a subsidiary?
Pursuant to § 390.253, a State savings
association must file a notice with the
FDIC prior to establishing, acquiring or
engaging in new activities of a
subsidiary as required under section
18(m) of the FDI Act.
49
This section
provides that such a notice must contain
all of the information required under
§ 362.15, is subject to FDIC objection,
and must be filed at least 30 days prior
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50
Public Law 111–203, 124 Stat 1376 (2010).
51
12 U.S.C. 1828(m).
52
Id.
53
12 CFR 362.15.
54
12 CFR 390.254(a).
55
12 CFR 390.254(c).
56
Id.
57
80 FR 28414, May 18, 2015. Regulations
pertaining to issuance of securities of operating
subsidiaries and service corporations of Federal
savings associations are found at 12 CFR 5.38(e)(7)
and 5.59(e)(9), respectively.
58
12 CFR 5.38(e)(7); 12 CFR 5.59(e)(9).
to the establishment or acquisition of a
subsidiary or commencement of a new
activity through a subsidiary. The notice
requirements of § 362.15 are
substantially similar to the transferred
OTS notice requirement in § 390.253.
For this reason, the FDIC proposes to
rescind and remove § 390.253 because it
is duplicative.
Federal Savings Association Notice
Requirement in § 362.15
Section 363(7) of the Dodd-Frank Act
amended section 18(m) of the FDI Act
to change notification requirements for
insured savings associations as a result
of the transfer of the powers, duties, and
functions formerly performed by the
OTS that were divided among the FDIC,
as to State savings associations, and the
Office of the Comptroller of the
Currency (OCC), as to Federal savings
associations.
50
After the Dodd-Frank
Act amendment of section 18(m) of the
FDI Act, Federal savings associations
are no longer required to provide notice
to the FDIC prior to the establishment,
or acquisition, of a subsidiary, or prior
to commencement of a new activity in
a subsidiary controlled by a federal
savings association.
51
State savings
banks must continue to notify the FDIC
at least 30 days prior to establishing or
acquiring a subsidiary or prior to
commencement of a new activity
through a State savings association-
controlled subsidiary pursuant to
section 18(m).
52
To reflect the
amendment, the FDIC proposes to
remove the references to Federal savings
association notice requirements
remaining in § 362.15 as part of the
proposal.
53
E. Section 390.254—How may a
subsidiary of a State savings association
issue securities?
Section 390.254 permits a State
savings association subsidiary to issue,
either directly or through a third party
intermediary, any securities that its
parent State savings association is
permitted to issue. The subsidiary must
not state or imply that the securities it
issues are covered by federal deposit
insurance, nor may it issue any security
the payment, maturity, or redemption of
which may be accelerated upon the
condition that State savings association
is insolvent or is placed into
receivership.
54
The State savings
association, for as long as any securities
are outstanding, must maintain all
records generated through each
securities issuance in the ordinary
course of business, including a copy of
any prospectus, offering circular, or
similar document concerning such
issuance, and make such records
available for examination by the FDIC.
55
Such records must include, but are not
limited to: (1) The amount of assets or
liabilities (including any guarantees
made with respect to the securities
issuance) that have been transferred or
made available to the subsidiary; the
percentage that such amount represents
of the current book value of assets on an
unconsolidated basis; and the current
book value of all such assets of the
subsidiary; (2) the terms of any
guarantee(s) issued by the State savings
association or any third party; (3) a
description of the securities the
subsidiary issued; (4) the net proceeds
from the issuance of securities (or the
pro rata portion of the net proceeds from
securities issued through a jointly
owned subsidiary); the gross proceeds of
the securities issuance; and the market
value of assets collateralizing the
securities issuance (any assets of the
subsidiary, including any guarantees of
its securities issuance made); (5) the
interest or dividend rates and yields, or
the range thereof, and the frequency of
payments on the subsidiary’s securities;
(6) the minimum denomination of the
subsidiary’s securities; and (7) where
the subsidiary marketed or intends to
market the securities.
56
The OCC retained certain of these
requirements for operating subsidiaries
and service corporations of Federal
savings associations in the 2015 final
rule integrating licensing rules of
national banks and Federal savings
associations.
57
Pursuant to OCC
regulations, neither an operating
subsidiary nor a service corporation
‘‘shall state or imply that the securities
it issues are covered by Federal deposit
insurance,’’ or ‘‘issue any security the
payment, maturity, or redemption of
which may be accelerated upon the
condition that the controlling Federal
savings association is insolvent or has
been placed into receivership, and for as
long as any securities are outstanding,
the controlling Federal savings
association must maintain all records
generated through each securities
issuance in the ordinary course of
business, including but not limited to a
copy of the prospectus, offering circular,
or similar document concerning such
issuance, and make such records
available for examination by the
OCC.’’
58
State savings association subsidiaries
are permitted to issue securities
pursuant to section 28 of the FDI Act
because the operating subsidiaries and
service corporations of Federal savings
associations are permitted to issue
securities, subject to regulatory
limitations. State savings associations
and subsidiaries are reminded that
subsidiary issuances, like other
permissible activities, are subject to the
same restrictions or conditions imposed
on the Federal savings association and
must be conducted in the same manner
in which an operating subsidiary or
service corporation is authorized to
issue such securities.
Accordingly, a State savings
association subsidiary should not state
or imply that the securities it issues are
covered by Federal deposit insurance, or
issue any security the payment,
maturity, or redemption of which may
be accelerated upon the condition that
the controlling State savings association
is insolvent or has been placed into
receivership, and for as long as any
securities are outstanding, the
controlling State savings association
must maintain all records generated
through each securities issuance in the
ordinary course of business, including
but not limited to a copy of the
prospectus, offering circular, or similar
document concerning such issuance,
and make such records available for
examination by the FDIC. For these
reasons, the FDIC proposes to remove
and rescind § 390.254.
F. Section 390.255—How may a State
savings association exercise its salvage
power in connection with a service
corporation or lower-tier entities?
Section 390.255 generally permits a
State savings association to notify the
FDIC at least 30 days before making a
contribution or a loan (including a
guarantee of a loan made by any other
person) to a lower-tier entity (salvage
investment) that exceeds the maximum
amount otherwise permitted under law
or regulation to exercise its power to
salvage the underlying asset (typically,
an outstanding loan). Without the
salvage power provision, the maximum
amount a State savings association
would be permitted would be related
the loans to one borrower limit (LTOB
Limit), which is equivalent to the
applicable state’s legal lending limit.
The salvage power doctrine was a
long-held position of the OTS and its
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59
A July 1941 legal opinion provided that savings
associations had ‘‘an inherent power and a positive
duty’’ to salvage an investment to protect the FSLIC
insurance fund. FHLBB Op. G.C. B–50, Salvage
Operations, July 1, 1941.
60
Salvage powers permit Federal savings
association to take whatever steps necessary to
salvage an investment, provided the steps taken are
integral parts of a reasonable and bona fide salvage
plan and do not contravene a specific legal
prohibition. Comptrollers Handbook, Other Real
Estate Owned, Version 1.1, August 2018 p. 18.
61
See 12 CFR 5.59(i). (Federal savings association
permitted to exercise its salvage powers to make a
salvage investment to a service corporation
investment); see also, Comptroller’s Handbook,
Other Real Estate Owned (Federal savings
association’s salvage powers are derived from 12
CFR 160.30, General Lending and Investment
Powers, and permit the acquisition, holding, and
operation of OREO and the expenditure of
additional funds in regard to OREO), https://
www.occ.treas.gov/publications-and-resources/
publications/comptrollers-handbook/files/other-
real-estate-owned/index-other-real-estate-
owned.html, last visited 7/9/2020.
62
National banks and savings associations are
subject to 12 CFR part 32, Lending Limits, but see
also Comptroller’s Handbook OREO (‘‘(Note: The
lending limit is not considered to be a specific legal
prohibition within the meaning of the salvage
powers doctrine.)’’).
63
See 2007 WL 7112410, OTS RB 37–21,
Examination Handbook, Asset Quality, Section 211,
LOANS TO ONE BORROWER, December 13, 2007.
Rescinded by OCC Bulletin 2012–19, dated June 29,
2012. (‘‘[s]tate-chartered savings associations have
similar authority under state law.’’) See also, 1975
WL 171273, Office of Thrift Supervision, August 7,
1975 (‘‘[i]n the case of a state-chartered institution,
the application must be accompanied by an opinion
of counsel that the action proposed is within the
institution’s power.’’) and 1975 WL 171331, Office
of Thrift Supervision, December 19, 1975
(‘‘[w]hether a state chartered association possesses
similar salvage powers, [to a Federal savings
association is] . . . governed by the laws of the
chartering jurisdiction.’’).
64
LTOB Limits are established by state law of
each chartering authority, and LTOB Limits are not
consistent from state to state. Some states allow
waivers or modifications, while others do not. Part
362 does not authorize any insured State savings
association to make investments or conduct
activities that are not authorized or that are
prohibited by either Federal or State law. 12 CFR
362.9(c).
65
Call Report data, June 30, 2020.
66
12 U.S.C. 1828(m).
67
12 U.S.C. 1828(m).
68
12 CFR 5.59(d); 12 CFR part 225.
predecessor, the Federal Home Loan
Bank Board (FHLBB),
59
that a Federal
savings association has inherent or
implied authority to take whatever steps
may be necessary to salvage an
investment.
60
When integrating the OTS
regulations for Federal savings
associations, the OCC adopted the
position that a Federal savings
association has inherent or implied
authority to use salvage power,
61
as well
as the position that the LTOB Limit is
not a specific legal prohibition with
respect to the salvage powers doctrine.
62
Because a State savings association
derives its powers, including salvage
power, from its respective State
chartering banking agency, there may be
lack of uniformity among State LTOB
Limits (or legal lending limit).
63
For
these reasons, staff proposes that State
savings associations apply to the FDIC
for prior approval pursuant to § 362.11
before making a contribution or a loan
to a lower-tier entity (salvage
investment) that exceeds the maximum
amount otherwise permitted under law
or regulation to exercise its power to
salvage the underlying asset to be
consistent with State law. The applicant
would be required to provide evidence
that the State approved any exception
over the LTOB limit.
64
For these reasons, the FDIC proposes
to remove and rescind § 390.255.
IV. Expected Effects
As of June 30, 2020, the FDIC
supervised 3,270 depository
institutions, of which 35 (1.1 percent)
are State savings associations.
65
The
proposed rule primarily would affect
regulations that govern State savings
associations. As previously discussed,
the proposed rule, if adopted, would
rescind part 390, subpart O because
most of its elements are duplicative of,
or substantially similar to the
requirements of section 28 of the
Federal Deposit Insurance Act (FDI Act)
and its implementing regulations,
subparts C and D of part 362 of the
FDIC’s Rules and Regulations, and
section 37 of the FDI Act.
Additionally, the proposed rule
would amend certain sections of part
362 to remove the references to Federal
savings association notice requirements
because Federal savings associations are
no longer required to provide notice to
the FDIC prior to the establishment, or
acquisition, of a subsidiary, or prior to
commencement of a new activity in a
subsidiary controlled by a Federal
savings association.
66
The FDIC does
not believe that the proposed rule will
have substantive effects on State savings
associations.
Section 390.250 sets forth the FDIC’s
general rulemaking and supervisory
authority under the FDI Act, its specific
authority under section 18(m) of the
Federal Deposit Insurance Act
67
and
subpart O’s application to subordinate
organizations of State savings
associations. As previously discussed,
State savings associations are subject to
part 362, subparts C and D, which has
the same statutory basis as § 390.350.
Therefore, the FDIC believes that the
practical application of part 362,
subparts C and D, generally achieves the
same outcomes for State savings
associations as does subpart O.
Therefore, the FDIC believes that the
proposed rescission of § 390.250, if
enacted, is unlikely to have any
substantive effects for State savings
associations or their subordinate
organizations.
Section 390.251 is a definition section
related to subordinate organizations. As
previously discussed, the FDIC believes
that the definitions of subsidiary and
GAAP-consolidated subsidiary are
substantially similar to and redundant
to other statutory and regulatory
requirements to which State savings
associations are already subject. As
previously discussed, State savings
associations are already subject to a
definition of control in part 362.2(e), a
definition that is narrower, however,
than the one in § 390.251. Therefore,
rescission of § 390.251 could benefit
State savings associations by narrowing
the scope of investments in subordinate
organizations that may be subject to
limitation for supervisory, legal, or
safety and soundness reasons asserted
by the FDIC. Rescission of the definition
of control in § 390.251 could further
benefit State savings associations by
creating parity with the control
definition applicable to service
companies of Federal savings
associations which references the FRB’s
part 225, Regulation Y.
68
As previously
discussed, State savings associations are
already subject to a definition of equity
investment in § 362.2(g), a definition
that is broader, however, than the one
in § 390.251. Therefore, rescission of
§ 390.251 is unlikely to pose additional
costs for State savings associations
because they are already subject to
regulations with a substantively similar
and broader defined scope of
investments in subordinate
organizations. Finally, the proposed
rescission of § 390.251 would remove
definitions of lower-tier entity and
second-tier service corporations or
service corporation subsidiaries for
which there is no corollary in FDIC
regulations. However, as previously
discussed, the FDIC does not believe
that the existence of these defined terms
enhance the quality of State savings
association supervision. Therefore, the
FDIC believes that rescission of these
definitions is unlikely to have any
substantive effects on State savings
associations.
Section 390.252 requires State savings
associations and their subordinate
organizations to operate in a manner
that demonstrates to the public that they
are separate corporate entities because
of concerns that a failure to maintain
separate corporate existences could
potentially result in a court, for
equitable reasons, holding the savings
association liable for the obligations of
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61 FR 66567.
70
12 CFR 390.253. See 12 U.S.C 1828(m)(1).
71
12 U.S.C. 1828(m).
72
Without the salvage power provision, the
maximum amount a State savings association
would be permitted would be related the loans to
one borrower limit (LTOB Limit), which is
equivalent to the applicable state’s legal lending
limit.
73
5 U.S.C. 601, et seq.
74
The SBA defines a small banking organization
as having $600 million or less in assets, where an
organization’s ‘‘assets are determined by averaging
the assets reported on its four quarterly financial
statements for the preceding year.’’ See 13 CFR
121.201 (as amended, by 84 FR 34261, effective
August 19, 2019). ‘‘SBA counts the receipts,
employees, or other measure of size of the concern
whose size is at issue and all of its domestic and
foreign affiliates.’’ See 13 CFR 121.103. Following
these regulations, the FDIC uses a covered entity’s
affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the
covered entity is ‘‘small’’ for the purposes of RFA.
the subordinate organization.
69
As
discussed previously, FDIC-supervised
depository institutions, including State
savings associations and their
subsidiaries, are covered by §§ 362.4(c)
and 362.13, which are substantively
similar to or broader than the
obligations in § 390.252. Therefore, the
FDIC believes that the proposed
rescission of § 390.252, if adopted, is
unlikely to have any substantive effect
on State savings associations or their
subsidiaries.
Section 390.253 establishes
notification requirements for State
savings associations prior to their
establishing, acquiring or engaging in
new activities of a subsidiary as
required under section 18(m) of the FDI
Act.
70
As discussed previously, State
savings associations are already subject
to substantively similar requirements in
§ 362.15. Therefore, the FDIC believes
that the proposed rescission of
§ 390.253, if adopted, is unlikely to pose
any substantive effects on State savings
associations.
Section 362.15 established
notification requirements for State and
Federal savings associations prior to
their establishing or acquiring a
subsidiary, or conducting any new
activity through a subsidiary. As
discussed previously, after the Dodd-
Frank Act amendment of section 18(m)
of the FDI Act, Federal savings
associations are no longer required to
provide notice to the FDIC prior to the
establishment, or acquisition, of a
subsidiary, or prior to the
commencement of a new activity in a
subsidiary controlled by a federal
savings association.
71
Therefore, the
FDIC believes that the proposed
rescission of references to Federal
savings associations from § 362.15 is
unlikely to have any substantive effect
on insured depository institutions in
that it is simply consistent with existing
law.
Section 390.254 permits a State
savings association subsidiary to issue,
either directly or through a third party
intermediary, any securities that its
parent State savings association is
permitted to issue. As discussed
previously, although there is no
corollary regulation for FDIC-supervised
depository institutions, State savings
association subsidiaries are permitted to
issue securities pursuant to section 28 of
the FDI Act because the operating
subsidiaries and service corporations of
Federal savings associations are
permitted to issue securities, subject to
regulatory limitations. Therefore, the
FDIC believes that the proposed
rescission of § 390.254, if adopted, is
unlikely to have any substantive effect
on State savings associations or their
subsidiaries.
Section 390.255 generally permits a
State savings association to notify the
FDIC at least 30 days before making a
contribution or a loan (including a
guarantee of a loan made by any other
person) to a lower-tier entity (salvage
investment) that exceeds the maximum
amount otherwise permitted under law
or regulation to exercise its power to
salvage the underlying asset (typically,
an outstanding loan).
72
As discussed
previously, State savings associations
are currently subject to § 362.11 which
requires State savings associations to
seek prior approval from the FDIC
before making a contribution or a loan
to a lower-tier entity (salvage
investment) that exceeds the maximum
amount otherwise permitted under law
or regulation to exercise its power to
salvage the underlying asset to be
consistent with State law. Therefore, the
FDIC believes that the proposed
rescission of § 390.255, if adopted, is
unlikely to substantively affect State
savings associations.
By removing duplicative or
unnecessary regulations the FDIC
believes that the proposed rule will
benefit State savings associations by
clarifying regulations and improving the
ease of references.
V. Alternatives
The FDIC has considered alternatives
to the rule but believes that the
amendments represent the most
appropriate option for covered
institutions. As discussed previously,
the Dodd-Frank Act transferred certain
powers, duties, and functions formerly
performed by the OTS to the FDIC. The
FDIC’s Board reissued and redesignated
certain transferred regulations from the
OTS, but noted that it would evaluate
them and might later incorporate them
into other FDIC regulations, amend
them, or rescind them, as appropriate.
The FDIC has evaluated the existing
regulations relating to certain
subordinate organizations of State
savings associations. The FDIC
considered the status quo alternative of
retaining the current regulations, but
did not choose to do so. The FDIC
believes it would be unnecessary for
FDIC-supervised institutions to
continue to refer to these separate sets
of regulations, and is therefore
proposing to amend and rescind them.
VI. Request for Comments
The FDIC invites comments on all
aspects of this proposed rulemaking,
and specifically requests comments on
the following:
1. What impact, if any, do you foresee
in the FDIC’s proposal to rescind
Subpart O? Please substantiate your
response.
Written comments must be received
by the FDIC no later than November 25,
2020.
VII. Regulatory Analysis and Procedure
A. The Paperwork Reduction Act
In accordance with the requirements
of the Paperwork Reduction Act of 1995
(PRA), the FDIC may not conduct or
sponsor, and the respondent is not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number. The proposed
rule would rescind and remove from
FDIC regulations subpart O. The
proposed rule will not create any new
or revise any existing collections of
information under the PRA. Therefore,
no information collection request will
be submitted to the OMB for review.
B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA),
requires that, in connection with a
notice of proposed rulemaking, an
agency prepare and make available for
public comment an initial regulatory
flexibility analysis that describes the
impact of the proposed rule on small
entities.
73
However, a regulatory
flexibility analysis is not required if the
agency certifies that the rule will not
have a significant economic impact on
a substantial number of small entities,
and publishes its certification and a
short explanatory statement in the
Federal Register together with the rule.
The Small Business Administration
(SBA) has defined ‘‘small entities’’ to
include banking organizations with total
assets of less than or equal to $600
million.
74
Generally, the FDIC considers
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FDIC Call Report, June 30, 2020.
76
Id.
77
Public Law 106–102, 113 Stat. 1338, 1471
(codified at 12 U.S.C. 4809).
78
Public Law 104–208, 110 Stat. 3009 (1996).
a significant effect to be a quantified
effect in excess of 5 percent of total
annual salaries and benefits per
institution, or 2.5 percent of total non-
interest expenses. The FDIC believes
that effects in excess of these thresholds
typically represent significant effects for
FDIC-supervised institutions. For the
reasons provided below, the FDIC
certifies that the proposed rule, if
adopted in final form, would not have
a significant economic impact on a
substantial number of small banking
organizations. Accordingly, a regulatory
flexibility analysis is not required.
As of June 30, 2020, the FDIC
supervised 3,270 insured depository
institutions, of which 2,548 are
considered small banking organizations
for the purposes of RFA. The proposed
rule primarily affects regulations that
govern State savings associations.
75
There are 33 State savings associations
considered to be small banking
organizations for the purposes of the
RFA.
76
As explained previously, the
proposed rule would remove §§ 390.250
through 390.255 of subpart O because
these sections are unnecessary or
redundant of existing federal banking
laws or regulations that prescribe
requirements subsidiaries of State
savings associations. Because these
regulations are redundant to existing
regulations, rescinding them would not
have any substantive effects on small
FDIC-supervised institutions.
Based on the information above, the
FDIC certifies that the proposed rule
would not have a significant economic
impact on a substantial number of small
entities.
2. The FDIC invites comments on all
aspects of the supporting information
provided in this RFA section. In
particular, would this rule have any
significant effects on small entities that
the FDIC has not identified?
C. Plain Language
Section 722 of the Gramm-Leach-
Bliley Act
77
requires each Federal
banking agency to use plain language in
all of its proposed and final rules
published after January 1, 2000. As a
federal banking agency subject to the
provisions of this section, the FDIC has
sought to present the proposed rule to
rescind subpart O in a simple and
straightforward manner.
3. The FDIC invites comments on
whether the proposal is clearly stated
and effectively organized, and how the
FDIC might make the proposal easier to
understand.
D. The Economic Growth and
Regulatory Paperwork Reduction Act
Under section 2222 of the Economic
Growth and Regulatory Paperwork
Reduction Act of 1996 (EGRPRA), the
FDIC is required to review all of its
regulations, at least once every 10 years,
in order to identify any outdated or
otherwise unnecessary regulations
imposed on insured institutions.
78
The
FDIC, along with the other federal
banking agencies, submitted a Joint
Report to Congress on March 21, 2017,
(EGRPRA Report) discussing how the
review was conducted, what has been
done to date to address regulatory
burden, and further measures that will
be taken to address issues that were
identified. As noted in the EGRPRA
Report, the FDIC is continuing to
streamline and clarify its regulations
through the OTS rule integration
process. By removing outdated or
unnecessary regulations, such as
subpart O, this proposal complements
other actions the FDIC has taken,
separately and with the other federal
banking agencies, to further the
EGRPRA mandate.
List of Subjects
12 CFR Part 362
Administrative practice and
procedure, Authority delegations
(Government agencies), Bank deposit
insurance, Banks, banking, Investments,
Reporting and recordkeeping
requirements.
12 CFR Part 390
Administrative practice and
procedure, Advertising, Aged, Civil
rights, Conflict of interests, Credit,
Crime, Equal employment opportunity,
Fair housing, Government employees,
Individuals with disabilities, Reporting
and recordkeeping requirements,
Savings associations.
Authority and Issuance
For the reasons stated in the
preamble, the Federal Deposit Insurance
Corporation proposes to amend 12 CFR
parts 362 and 390 as follows:
PART 362—ACTIVITIES OF INSURED
STATE BANKS AND INSURED
SAVINGS ASSOCIATIONS
■1. The authority citation for part 362
continues to read as follows:
Authority: 12 U.S.C. 1816, 1818,
1819(a)(Tenth), 1828(j), 1828(m), 1828a,
1831a, 1831e, 1831w, 1843(l).
■2. Revise § 362.15 to read as follows:
§ 362.15 Acquiring or establishing a
subsidiary; conducting new activities
through a subsidiary.
No State insured savings association
may establish or acquire a subsidiary, or
conduct any new activity through a
subsidiary, unless it files a notice in
compliance with § 303.142(c) of this
chapter at least 30 days prior to
establishment of the subsidiary or
commencement of the activity and the
FDIC does not object to the notice. This
requirement does not apply to any State
savings association that acquired its
principal assets from a Federal savings
bank that was chartered prior to October
15, 1982, as a savings bank under State
law.
PART 390—REGULATIONS
TRANSFERRED FROM THE OFFICE OF
THRIFT SUPERVISION
■3. The authority citation for part 390
is revised to read as follows:
Authority: 12 U.S.C. 1819.
Subpart F also issued under 5 U.S.C. 552;
559; 12 U.S.C. 2901 et seq.
Subpart G also issued under 12 U.S.C. 2810
et seq., 2901 et seq.; 15 U.S.C. 1691; 42 U.S.C.
1981, 1982, 3601–3619.
Subpart Q also issued under 12 U.S.C.
1462; 1462a; 1463; 1464.
Subpart W also issued under 12 U.S.C.
1462a; 1463; 1464; 15 U.S.C. 78c; 78l; 78m;
78n; 78p; 78w.
Subpart Y also issued under 12 U.S.C.
1831o.
Subpart O—[Removed and Reserved]
■4. Remove and reserve subpart O,
consisting of §§ 390.250 through
390.255.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on October 20,
2020.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2020–23525 Filed 10–21–20; 4:15 pm]
BILLING CODE 6714–01–P
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