Repeal of Reports and Public Disclosure of Indebtedness of Executive Officers and Principal Shareholders to a State Nonmember Bank and Its Correspondent Banks, 78337-78338 [E6-22260]
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Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations
I
3. Add § 228.26(d) to read as follows:
§ 228.26 Small bank performance
standards.
*
*
*
*
*
(d) Small bank performance rating.
The Board rates the performance of a
bank evaluated under this section as
provided in appendix A of this part.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 06–9944 Filed 12–28–06; 8:45 am]
BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
Federal Deposit Insurance Corporation
12 CFR Part 349
12 CFR Chapter III
RIN 3064–AD14
Authority and Issuance
For the reasons set forth in the joint
preamble, the Board of Directors of the
Federal Deposit Insurance Corporation
amends part 345 of chapter III of title 12
of the Code of Federal Regulations to
read as follows:
I
PART 345—COMMUNITY
REINVESTMENT
1. The authority citation for part 345
continues to read as follows:
I
Authority: 12 U.S.C. 1814–1817, 1819–
1820, 1828, 1831u and 2901–2907, 3103–
3104, and 3108(a).
2. Revise § 345.12(u)(1) to read as
follows:
I
§ 345.12
Definitions.
*
*
*
*
*
(u) Small bank—(1) Definition. Small
bank means a bank that, as of December
31 of either of the prior two calendar
years, had assets of less than $1.033
billion. Intermediate small bank means
a small bank with assets of at least $258
million as of December 31 of both of the
prior two calendar years and less than
$1.033 billion as of December 31 of
either of the prior two calendar years.
*
*
*
*
*
I
3. Add § 345.26(d) to read as follows:
§ 345.26 Small bank performance
standards.
*
*
*
*
(d) Small bank performance rating.
The FDIC rates the performance of a
bank evaluated under this section as
provided in appendix A of this part.
rmajette on PROD1PC72 with RULES
Dated: December 15, 2006.
Julie L. Williams,
First Senior Deputy Comptroller and Chief
Counsel.
By order of the Board of Governors of the
Federal Reserve System, December 19, 2006.
Jennifer J. Johnson,
Secretary of the Board.
Dated at Washington, DC, this 18th day of
December, 2006.
VerDate Aug<31>2005
13:55 Dec 28, 2006
Jkt 211001
Federal Deposit Insurance
Corporation.
ACTION: Final rule.
AGENCY:
SUMMARY: The Federal Deposit
Insurance Corporation (FDIC) is
repealing its regulations governing
reporting on lending by a State
nonmember bank and its correspondent
banks to executive officers and principal
shareholders. The FDIC is taking this
action in accordance with the Financial
Services Regulatory Relief Act of 2006,
section 601, which repealed the
provision under which the FDIC
promulgated these regulations.
DATES: This rule becomes effective on
December 22, 2006.
FOR FURTHER INFORMATION CONTACT:
Karen Jones Currie Examination
Specialist, FDIC, 550 17th Street, NW.,
Washington, DC 20429; telephone: (202)
898–3981; or electronic mail:
kcurrie@fdic.gov; or Michelle Borzillo,
Counsel, FDIC, 550 17th Street, NW.,
Washington, DC 20230; telephone: (202)
898–7400; facsimile: (202) 898–8815; or
electronic mail: mborzillo@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
*
By order of the Board of Directors.
Repeal of Reports and Public
Disclosure of Indebtedness of
Executive Officers and Principal
Shareholders to a State Nonmember
Bank and Its Correspondent Banks
On December 28, 1983, the FDIC
issued a final rule entitled ‘‘Reports and
Public Disclosure of Indebtedness of
Executive Officers and Principal
Shareholders to a State Nonmember
Bank and Its Correspondent Banks.’’
This rule implemented section 7(k) of
the Federal Deposit Insurance Act (‘‘FDI
Act’’) and section 106(b)(2)(G) of the
Bank Holding Company Act
Amendments of 1970 (‘‘BHCA
Amendments’’) contained in sections
428 and 429 of the Garn-St. Germain
Depository Institutions Act of 1982
(‘‘Garn-St. Germain Act’’). It restated the
existing statutory requirement which
required insiders to report to the board
of directors of their bank any
PO 00000
Frm 00005
Fmt 4700
Sfmt 4700
78337
indebtedness to the correspondent
banks of that bank. The statute also
provided that the bank or the agency
shall make the information available,
upon request, to the public. The
appropriate Federal banking agencies
were authorized to issue rules and
regulations to require the reporting and
public disclosure of information
concerning insider indebtedness.
II. Repeal of the Reports and Public
Disclosure of Indebtedness of Executive
Officers and Principal Shareholders
On October 13, 2006, the President
signed into law Public Law No. 109–
351, the Financial Services Regulatory
Relief Act of 2006 (the Act). Section 601
of the Act struck the following statutory
provisions:
• Requirement that a bank must
include a separate report with its
quarterly Reports of Condition and
Income (‘‘Call Report’’) on any
extensions of credit the bank has made
to its executive officers since its last Call
Report (section 22(g)(9) of the Federal
Reserve Act, codified at 12 U.S.C.
375a(9));
• Requirement that an executive
officer of a bank file a report with the
bank’s board of directors whenever the
executive officer obtains an extension of
credit from another bank in an amount
that exceeds the amount the executive
officer could obtain from the bank
(section 22(g)(6) of the Federal Reserve
Act, codified at 12 U.S.C. 375a(6));
• Requirement that an executive
officer or principal shareholder of a
bank must file an annual report with the
bank’s board of directors during any
year in which the officer or shareholder
has an outstanding extension of credit
from a correspondent bank of the bank
(section 106(b)(2)(G)(i) of the BHCA,
codified at 12 U.S.C. 1972(2)(G)(i)); and
• The authorization of the Federal
banking agencies to issue regulations
that require the reporting and public
disclosure of information related to
extensions of credit received by an
executive officer or principal
shareholder of a bank from a
correspondent bank of the bank (section
106(b)(2)(G)(ii) of the BHCA, codified at
12 U.S.C. 1972(2)(G)(ii)).
Neither the repeal of Section 106
(b)(2)(G) of the BHCA Amendments nor
part 349 changes the substantive
restrictions on loans by depository
institutions to their executive officers
and principal shareholders or loans to
executive officers and principal
shareholders of depository institutions
by their correspondent banks.
Because the new law strikes the
specific requirement underpinning the
rule on Reports and Public Disclosure of
E:\FR\FM\29DER1.SGM
29DER1
78338
Federal Register / Vol. 71, No. 250 / Friday, December 29, 2006 / Rules and Regulations
Indebtedness of Executive Officers and
Principal Shareholders to a State
Nonmember Bank and Its
Correspondent Banks, and because the
FDIC does not believe that the reports at
issue contribute significantly to the
effective monitoring of insider lending
or the prevention of insider abuse, the
FDIC is repealing its regulations at part
349.
III. Exemption From Public Comment
The Act repeals the specific statutory
requirements for these reports.
However, the FDIC retains authority
under other provisions of law to collect
information regarding insider lending
by depository institutions. The FDIC
does not believe these reports contribute
significantly to the effective monitoring
of insider lending or the prevention of
insider abuse. Under these
circumstances, providing prior notice
and an opportunity for public comment
on whether to repeal these rules would
serve no useful purpose. As a result,
under authority at 5 U.S.C. 553(b)(B),
FDIC finds good cause to waive such
procedures. Moreover, no Federal
agency’s or private sector entity’s
interest will be adversely affected by
their repeal. Further, and for the same
reason, FDIC finds good cause pursuant
to 553(d)(3) to waive the requirement of
a 30-day delay in effect for this rule.
Thus, this rule is effective immediately.
rmajette on PROD1PC72 with RULES
Regulatory Flexibility Act
As prior notice and an opportunity for
public comment are not required under
5 U.S.C. 553 or any other law, the
analytical requirements of the
Regulatory Flexibility Act are
inapplicable. Thus, no regulatory
flexibility analysis is required and none
has been prepared.
Paperwork Reduction Act
At the FDIC’s request, the Office of
Management and Budget (OMB) has
deleted the collection of information
associated with this rule (formerly
approved by OMB under Control No.
3064–0023, ‘‘Reports of Indebtedness of
Executive Officers and Principal
Shareholders to Correspondent Banks
and to Own Bank,’’ collected using
FFIEC form 004). The reduction in
paperwork burden imposed on the
public resulting from the elimination of
this collection of information will be
47,998 hours a year. The Federal
Financial Institutions Examination
Council (FFIEC) is providing notice to
all affected parties that they will no
longer need to provide this information
to the agencies.
Also, as discussed above, section 601
of the Act eliminated the requirement
VerDate Aug<31>2005
13:55 Dec 28, 2006
Jkt 211001
that a bank include a separate report
with its Call Report each quarter on any
extensions of credit the bank has made
to its executive officers since the date of
its last Call Report. Accordingly, as of
December 31, 2006, the FDIC will no
longer require banks to provide the
‘‘Special Report’’ on loans to executive
officers, which had been included after
the final page of the Call Report forms
in previous quarters. At the FDIC’s
request, OMB has approved this change
in the Call Report. The resulting
reduction in paperwork burden imposed
on the public will be 5,247 hours a year.
Small Business Regulatory Enforcement
Fairness Act
The Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA) (Title II, Pub. L. 104–121)
provides generally for agencies to report
rules to Congress and the General
Accounting Office (GAO) for review.
The reporting requirement is triggered
when a federal agency issues a final
rule. The FDIC will file the appropriate
reports with Congress and the GAO as
required by SBREFA. The Office of
Management and Budget has
determined that the rule does not
constitute a ‘‘major rule’’ as defined by
SBREFA.
List of Subjects in 12 CFR Part 349
Reports, Public disclosure,
Indebtedness of principal shareholders,
Indebtedness of executive officers, State
nonmember banks, Correspondent
banks.
For the reasons stated above, the
Board of Directors of the Federal
Deposit Insurance Corporation hereby
amends title 12, chapter III of the Code
of Federal Regulations under the
authority of 5 U.S.C. 553 by removing
and reserving part 349.
I
PART 349—[REMOVED AND
RESERVED]
Dated at Washington, DC, this 22nd day of
December, 2006.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. E6–22260 Filed 12–28–06; 8:45 am]
BILLING CODE 6714–01–P
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
SECURITIES AND EXCHANGE
COMMISSION
17 CFR Parts 228 and 229
[Release Nos. 33–8765; 34–55009; File No.
S7–03–06]
RIN 3235–AI80
Executive Compensation Disclosure
Securities and Exchange
Commission.
ACTION: Interim final rules with request
for comments.
AGENCY:
SUMMARY: The Securities and Exchange
Commission is adopting, as interim final
rules, amendments to the disclosure
requirements for executive and director
compensation. The amendments to Item
402 of Regulations S–K and S–B revise
Summary Compensation Table and
Director Compensation Table disclosure
with respect to stock awards and option
awards to provide disclosure of the
compensation cost of awards over the
requisite service period, as described in
Financial Accounting Standards Board
Statement of Financial Accounting
Standards No. 123 (revised 2004) ShareBased Payment (FAS 123R). FAS 123R
defines a requisite service period as the
period or periods over which an
employee is required to provide service
in exchange for a share-based payment.
The revised disclosure replaces
disclosure in the Summary
Compensation Table and Director
Compensation Table of the aggregate
grant date fair value of awards
computed in accordance with FAS
123R. The amendments revise the
Grants of Plan-Based Awards Table to
add a column showing, on a grant-bygrant basis, the full grant date fair value
of awards computed in accordance with
FAS 123R. The amendments also revise
the Grants of Plan-Based Awards Table
to include information concerning
repriced or materially modified options,
stock appreciation rights and similar
option-like instruments, disclosing the
incremental fair value computed as of
the repricing or modification date
computed in accordance with FAS
123R. The amendments to the Director
Compensation Table in Item 402 of
Regulation S–K require footnote
disclosure corresponding to the new
Grants of Plan-Based Awards Table fair
value disclosures. The amendments are
intended to provide investors with more
complete and useful disclosure about
executive compensation. Disclosing the
compensation cost of stock and option
awards over the requisite service period
will give investors a better idea of the
compensation earned by an executive or
E:\FR\FM\29DER1.SGM
29DER1
]]>Agencies
[Federal Register Volume 71, Number 250 (Friday, December 29, 2006)]
[Rules and Regulations]
[Pages 78337-78338]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22260]
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Part 349
RIN 3064-AD14
Repeal of Reports and Public Disclosure of Indebtedness of
Executive Officers and Principal Shareholders to a State Nonmember Bank
and Its Correspondent Banks
AGENCY: Federal Deposit Insurance Corporation.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Federal Deposit Insurance Corporation (FDIC) is repealing
its regulations governing reporting on lending by a State nonmember
bank and its correspondent banks to executive officers and principal
shareholders. The FDIC is taking this action in accordance with the
Financial Services Regulatory Relief Act of 2006, section 601, which
repealed the provision under which the FDIC promulgated these
regulations.
DATES: This rule becomes effective on December 22, 2006.
FOR FURTHER INFORMATION CONTACT: Karen Jones Currie Examination
Specialist, FDIC, 550 17th Street, NW., Washington, DC 20429;
telephone: (202) 898-3981; or electronic mail: kcurrie@fdic.gov; or
Michelle Borzillo, Counsel, FDIC, 550 17th Street, NW., Washington, DC
20230; telephone: (202) 898-7400; facsimile: (202) 898-8815; or
electronic mail: mborzillo@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On December 28, 1983, the FDIC issued a final rule entitled
``Reports and Public Disclosure of Indebtedness of Executive Officers
and Principal Shareholders to a State Nonmember Bank and Its
Correspondent Banks.'' This rule implemented section 7(k) of the
Federal Deposit Insurance Act (``FDI Act'') and section 106(b)(2)(G) of
the Bank Holding Company Act Amendments of 1970 (``BHCA Amendments'')
contained in sections 428 and 429 of the Garn-St. Germain Depository
Institutions Act of 1982 (``Garn-St. Germain Act''). It restated the
existing statutory requirement which required insiders to report to the
board of directors of their bank any indebtedness to the correspondent
banks of that bank. The statute also provided that the bank or the
agency shall make the information available, upon request, to the
public. The appropriate Federal banking agencies were authorized to
issue rules and regulations to require the reporting and public
disclosure of information concerning insider indebtedness.
II. Repeal of the Reports and Public Disclosure of Indebtedness of
Executive Officers and Principal Shareholders
On October 13, 2006, the President signed into law Public Law No.
109-351, the Financial Services Regulatory Relief Act of 2006 (the
Act). Section 601 of the Act struck the following statutory provisions:
Requirement that a bank must include a separate report
with its quarterly Reports of Condition and Income (``Call Report'') on
any extensions of credit the bank has made to its executive officers
since its last Call Report (section 22(g)(9) of the Federal Reserve
Act, codified at 12 U.S.C. 375a(9));
Requirement that an executive officer of a bank file a
report with the bank's board of directors whenever the executive
officer obtains an extension of credit from another bank in an amount
that exceeds the amount the executive officer could obtain from the
bank (section 22(g)(6) of the Federal Reserve Act, codified at 12
U.S.C. 375a(6));
Requirement that an executive officer or principal
shareholder of a bank must file an annual report with the bank's board
of directors during any year in which the officer or shareholder has an
outstanding extension of credit from a correspondent bank of the bank
(section 106(b)(2)(G)(i) of the BHCA, codified at 12 U.S.C.
1972(2)(G)(i)); and
The authorization of the Federal banking agencies to issue
regulations that require the reporting and public disclosure of
information related to extensions of credit received by an executive
officer or principal shareholder of a bank from a correspondent bank of
the bank (section 106(b)(2)(G)(ii) of the BHCA, codified at 12 U.S.C.
1972(2)(G)(ii)).
Neither the repeal of Section 106 (b)(2)(G) of the BHCA Amendments
nor part 349 changes the substantive restrictions on loans by
depository institutions to their executive officers and principal
shareholders or loans to executive officers and principal shareholders
of depository institutions by their correspondent banks.
Because the new law strikes the specific requirement underpinning
the rule on Reports and Public Disclosure of
[[Page 78338]]
Indebtedness of Executive Officers and Principal Shareholders to a
State Nonmember Bank and Its Correspondent Banks, and because the FDIC
does not believe that the reports at issue contribute significantly to
the effective monitoring of insider lending or the prevention of
insider abuse, the FDIC is repealing its regulations at part 349.
III. Exemption From Public Comment
The Act repeals the specific statutory requirements for these
reports. However, the FDIC retains authority under other provisions of
law to collect information regarding insider lending by depository
institutions. The FDIC does not believe these reports contribute
significantly to the effective monitoring of insider lending or the
prevention of insider abuse. Under these circumstances, providing prior
notice and an opportunity for public comment on whether to repeal these
rules would serve no useful purpose. As a result, under authority at 5
U.S.C. 553(b)(B), FDIC finds good cause to waive such procedures.
Moreover, no Federal agency's or private sector entity's interest will
be adversely affected by their repeal. Further, and for the same
reason, FDIC finds good cause pursuant to 553(d)(3) to waive the
requirement of a 30-day delay in effect for this rule. Thus, this rule
is effective immediately.
Regulatory Flexibility Act
As prior notice and an opportunity for public comment are not
required under 5 U.S.C. 553 or any other law, the analytical
requirements of the Regulatory Flexibility Act are inapplicable. Thus,
no regulatory flexibility analysis is required and none has been
prepared.
Paperwork Reduction Act
At the FDIC's request, the Office of Management and Budget (OMB)
has deleted the collection of information associated with this rule
(formerly approved by OMB under Control No. 3064-0023, ``Reports of
Indebtedness of Executive Officers and Principal Shareholders to
Correspondent Banks and to Own Bank,'' collected using FFIEC form 004).
The reduction in paperwork burden imposed on the public resulting from
the elimination of this collection of information will be 47,998 hours
a year. The Federal Financial Institutions Examination Council (FFIEC)
is providing notice to all affected parties that they will no longer
need to provide this information to the agencies.
Also, as discussed above, section 601 of the Act eliminated the
requirement that a bank include a separate report with its Call Report
each quarter on any extensions of credit the bank has made to its
executive officers since the date of its last Call Report. Accordingly,
as of December 31, 2006, the FDIC will no longer require banks to
provide the ``Special Report'' on loans to executive officers, which
had been included after the final page of the Call Report forms in
previous quarters. At the FDIC's request, OMB has approved this change
in the Call Report. The resulting reduction in paperwork burden imposed
on the public will be 5,247 hours a year.
Small Business Regulatory Enforcement Fairness Act
The Small Business Regulatory Enforcement Fairness Act of 1996
(SBREFA) (Title II, Pub. L. 104-121) provides generally for agencies to
report rules to Congress and the General Accounting Office (GAO) for
review. The reporting requirement is triggered when a federal agency
issues a final rule. The FDIC will file the appropriate reports with
Congress and the GAO as required by SBREFA. The Office of Management
and Budget has determined that the rule does not constitute a ``major
rule'' as defined by SBREFA.
List of Subjects in 12 CFR Part 349
Reports, Public disclosure, Indebtedness of principal shareholders,
Indebtedness of executive officers, State nonmember banks,
Correspondent banks.
0
For the reasons stated above, the Board of Directors of the Federal
Deposit Insurance Corporation hereby amends title 12, chapter III of
the Code of Federal Regulations under the authority of 5 U.S.C. 553 by
removing and reserving part 349.
PART 349--[REMOVED AND RESERVED]
Dated at Washington, DC, this 22nd day of December, 2006.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. E6-22260 Filed 12-28-06; 8:45 am]
BILLING CODE 6714-01-P
