Transactions Between Member Banks and Their Affiliates: Exemption for Certain Purchases of Asset-Backed Commercial Paper by a Member Bank From an Affiliate, 6226-6228 [E9-2338]
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Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
Regulatory Flexibility Act provides that
an agency is not required to prepare and
publish a regulatory flexibility analysis
if the agency certifies that the final rule
will not have a significant economic
impact on a substantial number of small
entities. 5 U.S.C. 605(b).
Pursuant to section 605(b), the Board
certifies that this final rule will not have
a significant economic impact on a
substantial number of small entities.
The rule reduces regulatory burden on
large and small insured depository
institutions by granting an exemption
from the Federal transactions with
affiliates regime for insured depository
institutions that engage in securities
financing transactions with affiliates.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (44 U.S.C. 3506; 5 CFR
1320 Appendix A.1), the Board has
reviewed the final rule under authority
delegated to the Board by the Office of
Management and Budget. The rule
contains no collections of information
pursuant to the Paperwork Reduction
Act.
Plain Language
Section 722 of the Gramm-LeachBliley Act requires the Board to use
‘‘plain language’’ in all proposed and
final rules. In light of this requirement,
the Board has sought to present the final
rule in a simple and straightforward
manner. The Board invited comment on
whether the Board could take additional
steps to make the rule easier to
understand. The Board received no
comments on this subject.
List of Subjects in 12 CFR Part 223
Banks, Banking, Federal Reserve
System.
Authority and Issuance
For the reasons set forth in the
preamble, Chapter II of Title 12 of the
Code of Federal Regulations is amended
as follows:
■
PART 223—TRANSACTIONS
BETWEEN MEMBER BANKS AND
THEIR AFFILIATES (REGULATION W)
1. The authority citation for part 223
continues to read as follows:
■
Authority: 12 U.S.C. 371c and 371c–1.
2. In § 223.42, revise paragraph (n) to
read as follows:
dwashington3 on PROD1PC60 with RULES
■
§ 223.42 What covered transactions are
exempt from the quantitative limits,
collateral requirements, and low-quality
asset prohibition?
*
*
*
VerDate Nov<24>2008
*
*
13:50 Feb 05, 2009
Jkt 217001
(n) Securities financing transactions.
(1) From September 15, 2008, until
October 30, 2009 (unless further
extended by the Board), securities
financing transactions with an affiliate,
if:
(i) The security or other asset financed
by the member bank in the transaction
is of a type that the affiliate financed in
the U.S. tri-party repurchase agreement
market at any time during the week of
September 8–12, 2008;
(ii) The transaction is marked to
market daily and subject to daily
margin-maintenance requirements, and
the member bank is at least as overcollateralized in the transaction as the
affiliate’s clearing bank was overcollateralized in comparable
transactions with the affiliate in the U.S.
tri-party repurchase agreement market
on September 12, 2008;
(iii) The aggregate risk profile of the
securities financing transactions under
this exemption is no greater than the
aggregate risk profile of the securities
financing transactions of the affiliate in
the U.S. tri-party repurchase agreement
market on September 12, 2008;
(iv) The member bank’s top-tier
holding company guarantees the
obligations of the affiliate under the
securities financing transactions (or
provides other security to the bank that
is acceptable to the Board); and
(v) The member bank has not been
specifically informed by the Board, after
consultation with the member bank’s
appropriate Federal banking agency,
that the member bank may not use this
exemption.
(2) For purposes of this exemption:
(i) Securities financing transaction
means:
(A) A purchase by a member bank
from an affiliate of a security or other
asset, subject to an agreement by the
affiliate to repurchase the asset from the
member bank;
(B) A borrowing of a security by a
member bank from an affiliate on a
collateralized basis; or
(C) A secured extension of credit by
a member bank to an affiliate.
(ii) U.S. tri-party repurchase
agreement market means the U.S.
market for securities financing
transactions in which the counterparties
use custodial arrangements provided by
JPMorgan Chase Bank or Bank of New
York or another financial institution
approved by the Board.
*
*
*
*
*
PO 00000
Frm 00004
Fmt 4700
Sfmt 4700
By order of the Board of Governors of the
Federal Reserve System, January 30, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9–2337 Filed 2–5–09; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
12 CFR Part 223
[Regulation W; Docket No. R–1331]
Transactions Between Member Banks
and Their Affiliates: Exemption for
Certain Purchases of Asset-Backed
Commercial Paper by a Member Bank
From an Affiliate
AGENCY: Board of Governors of the
Federal Reserve System.
ACTION: Final rule.
SUMMARY: To reduce liquidity and other
strains being experienced by money
market mutual funds, the Board of
Governors of the Federal Reserve
System (Board) adopted on September
19, 2008, the Asset-Backed Commercial
Paper Money Market Mutual Fund
Lending Facility (AMLF), that enables
depository institutions and bank
holding companies to borrow from the
Federal Reserve Bank of Boston on a
non-recourse basis if they use the
proceeds of the loan to purchase certain
types of asset-backed commercial paper
(ABCP) from money market mutual
funds. To facilitate use of the AMLF by
member banks, the Board also has
adopted regulatory exemptions for
member banks from certain provisions
of sections 23A and 23B of the Federal
Reserve Act and the Board’s Regulation
W. The exemptions increase the
capacity of a member bank to purchase
ABCP from affiliated money market
mutual funds in connection with the
AMLF.
DATES: Effective January 30, 2009.
FOR FURTHER INFORMATION CONTACT:
Mark E. Van Der Weide, Assistant
General Counsel, (202) 452–2263, or
Andrea R. Tokheim, Counsel, (202) 452–
2300, Legal Division; or Norah M.
Barger, Deputy Director, (202) 452–
2402, Division of Banking Supervision
and Regulation. For the hearing
impaired only, Telecommunication
Device for the Deaf (TDD), (202) 263–
4869.
SUPPLEMENTARY INFORMATION:
In light of the ongoing dislocations in
the financial markets, and the impact of
such dislocations on the functioning of
the ABCP markets and on the operations
of money market mutual funds, the
Board adopted the AMLF on September
E:\FR\FM\06FER1.SGM
06FER1
dwashington3 on PROD1PC60 with RULES
Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
19, 2008. Under the facility, depository
institutions and bank holding
companies (banking organizations) are
able to borrow from the Federal Reserve
Bank of Boston on a non-recourse basis
on condition that the organizations use
the proceeds of the Federal Reserve
credit to purchase, at amortized cost,
certain highly rated U.S. dollardenominated ABCP from money market
mutual funds. The ABCP purchased
must be used to secure the borrowing
from the Reserve Bank. The purpose of
the AMLF is to assist money market
mutual funds to obtain liquidity by
enabling them to sell some of their highcredit-quality secured assets at
amortized cost. The AMLF, which was
initially scheduled to expire on January
31, 2009, has been extended to April 30,
2009.1
To facilitate usage of the AMLF, on
September 19, 2008, the Board adopted
on an interim basis, and requested
public comment on, exemptions from
sections 23A and 23B of the Federal
Reserve Act (12 U.S.C. 371c, 371c–1)
and the Board’s Regulation W (12 CFR
part 223).2 The exemptions were
designed to increase the capacity of a
member bank to purchase ABCP from an
affiliated money market mutual fund in
connection with the AMLF. Under the
final rule, a member bank may use the
exemptions only if the bank has not
been specifically informed by the Board,
after consultation with the bank’s
appropriate Federal banking agency,
that the bank may not use these
exemptions. If the Board believes, after
such consultation, that use of the
exemptions would not be appropriate
for the member bank, the Board may
withdraw the exemptions for the bank
or may impose supplemental conditions
on the bank’s use of the exemptions.
After considering the comments, the
Board has adopted a final rule that is
largely identical to the interim final rule
but includes minor changes to reflect
the extended duration of the AMLF. The
interim final rule provided that the
exemptions applied only to purchases of
ABCP from an affiliated SEC-registered
open-end investment company that
holds itself out as a money market
mutual fund under SEC Rule 2a–7 (17
CFR 270.2a–7) between September 19,
2008, and January 30, 2009. This
timeframe coincided with the dates of
the AMLF. In the final rule, the date
range for eligible ABCP purchases has
been eliminated, but the rule continues
1 Board of Governors of the Federal Reserve
System (2008), ‘‘Federal Reserve announces the
extension of three liquidity facilities through April
30, 2009,’’ press release, December 2, 2008.
2 73 FR 55708.
VerDate Nov<24>2008
13:50 Feb 05, 2009
Jkt 217001
6227
to provide that the exemptions are
available only for purchases of ABCP
where the ABCP is used to secure
borrowing from the AMLF. As a result,
the exemptions effectively will no
longer be available once the AMLF
expires.
The Board has determined that these
exemptions are in the public interest
and consistent with the purposes of
sections 23A and 23B. The substantial
protections provided to intermediaries
by the Federal Reserve in connection
with the AMLF largely mitigate the
safety-and-soundness concerns that
sections 23A and 23B were designed to
address. Because Federal Reserve
extensions of credit to a member bank
under the AMLF are on a non-recourse
basis, the bank should bear no risk of
loss from purchases of ABCP under the
facility. Therefore, the Board believes
that it is appropriate to exempt a
member bank that serves as an
intermediary in the AMLF from the
requirements of sections 23A and 23B
and Regulation W.
Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act (44 U.S.C. 3506; 5 CFR
1320 Appendix A.1), the Board has
reviewed the final rule under authority
delegated to the Board by the Office of
Management and Budget. The rule
contains no collections of information
pursuant to the Paperwork Reduction
Act.
Administrative Procedure Act
Authority and Issuance
Pursuant to sections 553(d) of the
Administrative Procedure Act (5 U.S.C.
553(d)), the Board finds that there is
good cause for making the rule effective
immediately on January 30, 2009. The
Board has adopted the rule in light of,
and to help address, the continuing
unusual and exigent circumstances in
the financial markets. The rule will
provide immediate relief to depository
institutions that elect to participate in
the ABCP Lending Facility.
■
Fmt 4700
Sfmt 4700
For the reasons set forth in the
preamble, the Board amends Chapter II
of Title 12 of the Code of Federal
Regulations as follows:
PART 223—TRANSACTIONS
BETWEEN MEMBER BANKS AND
THEIR AFFILIATES (REGULATION W)
1. The authority citation for part 223
continues to read as follows:
■
Authority: 12 U.S.C. 371c and 371c–1.
2. In § 223.42, revise paragraph (o) to
read as follows:
The Regulatory Flexibility Act
requires an agency that is issuing a final
rule to prepare and make available a
regulatory flexibility analysis that
describes the impact of the final rule on
small entities. 5 U.S.C. 603(a). The
Regulatory Flexibility Act provides that
an agency is not required to prepare and
publish a regulatory flexibility analysis
if the agency certifies that the final rule
will not have a significant economic
impact on a substantial number of small
entities. 5 U.S.C. 605(b).
Pursuant to section 605(b), the Board
certifies that this final rule will not have
a significant economic impact on a
substantial number of small entities.
The rule reduces regulatory burden on
large and small insured depository
institutions by granting exemptions
from the Federal transactions with
affiliates regime for insured depository
institutions that purchase ABCP from
affiliated money market mutual funds
pursuant to the AMLF.
Frm 00005
List of Subjects in 12 CFR Part 223
Banks, Banking, Federal Reserve
System.
■
Regulatory Flexibility Act
PO 00000
Plain Language
Section 722 of the Gramm-LeachBliley Act requires the Board to use
‘‘plain language’’ in all proposed and
final rules. In light of this requirement,
the Board has sought to present the final
rule in a simple and straightforward
manner. The Board invited comment on
whether it could take additional steps to
make the rule easier to understand. The
Board received no comments on this
subject.
§ 223.42 What covered transactions are
exempt from the quantitative limits,
collateral requirements, and low-quality
asset prohibition?
*
*
*
*
*
(o) Purchases of certain asset-backed
commercial paper. Purchases of assetbacked commercial paper from an
affiliated SEC-registered open-end
investment company that holds itself
out as a money market mutual fund
under SEC Rule 2a–7 (17 CFR 270.2a–
7), if the member bank:
(1) Purchases the asset-backed
commercial paper on or after September
19, 2008;
(2) Pledges the asset-backed
commercial paper to a Federal Reserve
Bank to secure financing from the assetbacked commercial paper lending
facility (AMLF) established by the Board
on September 19, 2008; and
(3) Has not been specifically informed
by the Board, after consultation with the
member bank’s appropriate Federal
E:\FR\FM\06FER1.SGM
06FER1
6228
Federal Register / Vol. 74, No. 24 / Friday, February 6, 2009 / Rules and Regulations
banking agency, that the member bank
may not use this exemption.
■ 3. Revise § 223.56 to read as follows:
§ 223.56 What transactions are exempt
from the market-terms requirement of
section 23B?
The following transactions are exempt
from the market-terms requirement of
§ 223.51.
(a) Purchases of certain asset-backed
commercial paper. Purchases of assetbacked commercial paper from an
affiliated SEC-registered open-end
investment company that holds itself
out as a money market mutual fund
under SEC Rule 2a–7 (17 CFR 270.2a–
7), if the member bank:
(1) Purchases the asset-backed
commercial paper on or after September
19, 2008;
(2) Pledges the asset-backed
commercial paper to a Federal Reserve
Bank to secure financing from the assetbacked commercial paper lending
facility (AMLF) established by the Board
on September 19, 2008; and
(3) Has not been specifically informed
by the Board, after consultation with the
member bank’s appropriate Federal
banking agency, that the member bank
may not use this exemption.
(b) [Reserved].
By order of the Board of Governors of the
Federal Reserve System, January 30, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9–2338 Filed 2–5–09; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF DEFENSE
Office of the Secretary
32 CFR Part 199
[DOD–2007–HA–0048]
RIN 0720–AB19
TRICARE; Hospital Outpatient
Prospective Payment System (OPPS):
Delay of Effective Date and Additional
Opportunity for Public Comment
dwashington3 on PROD1PC60 with RULES
SUMMARY: On December 10, 2008, DoD
published a final rule implementing the
TRICARE Hospital Outpatient
Prospective Payment System (OPPS),
with an effective date of February 9,
2009 (73 FR 74945). Since that date,
DoD has determined that in order for
administrative claims processing
13:50 Feb 05, 2009
Jkt 217001
DATES: The effective date of the OPPS
final rule published December 10, 2008
(73 FR 74945) is delayed until May 1,
2009. Comments must be received on or
before March 9, 2009.
You may submit comments,
identified by docket number and/or
Regulatory Information Number (RIN)
and title, by either of the following
methods:
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
• Mail: Federal Docket Management
System Office, 1160 Defense Pentagon,
Washington, DC 20301–1160.
ADDRESSES:
Instructions: All submissions received
must include the agency name and
docket number or RIN for this Federal
Register document. The general policy
for comments and other submissions
from members of the public is to make
these submissions available for public
viewing on the Internet at https://
regulations.gov as they are received
without change, including any personal
identifiers or contact information.
FOR FURTHER INFORMATION CONTACT:
David E. Bennett or Martha M. Maxey,
TRICARE Management Activity,
Medical Benefits and Reimbursement
Branch, telephone (303) 676–3494 or
(303) 676–3627.
Office of the Secretary,
Department of Defense.
ACTION: Final rule; delay of effective
date and opportunity for public
comment.
AGENCY:
VerDate Nov<24>2008
procedures to be fully in place to
implement effectively the new OPPS
payments, TRICARE’s OPPS will begin
to apply to health care services provided
on or after May 1, 2009. In the
meantime, a memorandum of January
20, 2009, from the Assistant to the
President and Chief of Staff, entitled
‘‘Regulatory Review,’’ published in the
Federal Register on January 26, 2009,
calls for agencies to consider delaying
effective dates of rules not yet effective
and inviting new public comment. In
view of both of these developments, the
Department is delaying the effective
date of TRICARE’s OPPS until May 1,
2009, and is inviting additional public
comment on the final rule. Any timely
public comments received will be
considered and any changes to the final
rule will be published in the Federal
Register.
Dated: February 3, 2009.
Patricia L. Toppings,
OSD Federal Register Liaison Officer,
Department of Defense.
[FR Doc. E9–2562 Filed 2–5–09; 8:45 am]
BILLING CODE 5001–06–P
PO 00000
Frm 00006
Fmt 4700
Sfmt 4700
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2008–1263]
Drawbridge Operation Regulation;
Bayou Lacarpe, Mile 7.5, at Houma,
Lafourche Parish, LA
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
AGENCY:
ACTION:
SUMMARY: The Commander, Eighth
Coast Guard District, has issued a
temporary deviation from the regulation
governing the operation of the SR 661
Vertical Lift Bridge across Bayou
Lacarpe, mile 7.5, at Houma, Lafourche
Parish, Louisiana. The deviation is
necessary to replace all the wire ropes
used to lift the movable span of the
bridge. This deviation allows the bridge
to remain closed during daytime hours
and requires an advance notice for
openings during the nighttime.
DATES: This deviation is effective from
9 a.m. on January 31, 2009 through 5
p.m. on February 14, 2009.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2008–
1263 and are available online at
www.regulations.gov. They are also
available for inspection or copying at
two locations: the Docket Management
Facility (M–30), U.S. Department of
Transportation, West Building Ground
Floor, Room W12–140, 1200 New Jersey
Avenue, SE., Washington, DC 20590,
between 9 a.m. and 5 p.m., Monday
through Friday, except Federal holidays,
and the Eighth Coast Guard District,
Bridge Administration Branch, Hale
Boggs Federal Building, Room 1313, 500
Poydras Street, New Orleans, Louisiana
70130–3310 between 7 a.m. and 3 p.m.,
Monday through Friday, except Federal
holidays.
FOR FURTHER INFORMATION CONTACT: Bart
Marcules, Bridge Administration
Branch, telephone (504) 671–2128.
SUPPLEMENTARY INFORMATION: Louisiana
Department of Transportation and
Development has requested a temporary
deviation from the operating schedule of
the State Route 661 Vertical Lift Bridge
across Bayou Lacarpe, mile 7.5, at
Houma, Lafourche Parish, Louisiana.
The vertical clearance in the closed
position is 3 feet, thus most vessels will
not be able to pass underneath this
bridge in the closed-to-navigation
position. There may be times, during the
closure period, when the draw will not
E:\FR\FM\06FER1.SGM
06FER1
]]>Agencies
[Federal Register Volume 74, Number 24 (Friday, February 6, 2009)]
[Rules and Regulations]
[Pages 6226-6228]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-2338]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
12 CFR Part 223
[Regulation W; Docket No. R-1331]
Transactions Between Member Banks and Their Affiliates: Exemption
for Certain Purchases of Asset-Backed Commercial Paper by a Member Bank
From an Affiliate
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: To reduce liquidity and other strains being experienced by
money market mutual funds, the Board of Governors of the Federal
Reserve System (Board) adopted on September 19, 2008, the Asset-Backed
Commercial Paper Money Market Mutual Fund Lending Facility (AMLF), that
enables depository institutions and bank holding companies to borrow
from the Federal Reserve Bank of Boston on a non-recourse basis if they
use the proceeds of the loan to purchase certain types of asset-backed
commercial paper (ABCP) from money market mutual funds. To facilitate
use of the AMLF by member banks, the Board also has adopted regulatory
exemptions for member banks from certain provisions of sections 23A and
23B of the Federal Reserve Act and the Board's Regulation W. The
exemptions increase the capacity of a member bank to purchase ABCP from
affiliated money market mutual funds in connection with the AMLF.
DATES: Effective January 30, 2009.
FOR FURTHER INFORMATION CONTACT: Mark E. Van Der Weide, Assistant
General Counsel, (202) 452-2263, or Andrea R. Tokheim, Counsel, (202)
452-2300, Legal Division; or Norah M. Barger, Deputy Director, (202)
452-2402, Division of Banking Supervision and Regulation. For the
hearing impaired only, Telecommunication Device for the Deaf (TDD),
(202) 263-4869.
SUPPLEMENTARY INFORMATION:
In light of the ongoing dislocations in the financial markets, and
the impact of such dislocations on the functioning of the ABCP markets
and on the operations of money market mutual funds, the Board adopted
the AMLF on September
[[Page 6227]]
19, 2008. Under the facility, depository institutions and bank holding
companies (banking organizations) are able to borrow from the Federal
Reserve Bank of Boston on a non-recourse basis on condition that the
organizations use the proceeds of the Federal Reserve credit to
purchase, at amortized cost, certain highly rated U.S. dollar-
denominated ABCP from money market mutual funds. The ABCP purchased
must be used to secure the borrowing from the Reserve Bank. The purpose
of the AMLF is to assist money market mutual funds to obtain liquidity
by enabling them to sell some of their high-credit-quality secured
assets at amortized cost. The AMLF, which was initially scheduled to
expire on January 31, 2009, has been extended to April 30, 2009.\1\
---------------------------------------------------------------------------
\1\ Board of Governors of the Federal Reserve System (2008),
``Federal Reserve announces the extension of three liquidity
facilities through April 30, 2009,'' press release, December 2,
2008.
---------------------------------------------------------------------------
To facilitate usage of the AMLF, on September 19, 2008, the Board
adopted on an interim basis, and requested public comment on,
exemptions from sections 23A and 23B of the Federal Reserve Act (12
U.S.C. 371c, 371c-1) and the Board's Regulation W (12 CFR part 223).\2\
The exemptions were designed to increase the capacity of a member bank
to purchase ABCP from an affiliated money market mutual fund in
connection with the AMLF. Under the final rule, a member bank may use
the exemptions only if the bank has not been specifically informed by
the Board, after consultation with the bank's appropriate Federal
banking agency, that the bank may not use these exemptions. If the
Board believes, after such consultation, that use of the exemptions
would not be appropriate for the member bank, the Board may withdraw
the exemptions for the bank or may impose supplemental conditions on
the bank's use of the exemptions.
---------------------------------------------------------------------------
\2\ 73 FR 55708.
---------------------------------------------------------------------------
After considering the comments, the Board has adopted a final rule
that is largely identical to the interim final rule but includes minor
changes to reflect the extended duration of the AMLF. The interim final
rule provided that the exemptions applied only to purchases of ABCP
from an affiliated SEC-registered open-end investment company that
holds itself out as a money market mutual fund under SEC Rule 2a-7 (17
CFR 270.2a-7) between September 19, 2008, and January 30, 2009. This
timeframe coincided with the dates of the AMLF. In the final rule, the
date range for eligible ABCP purchases has been eliminated, but the
rule continues to provide that the exemptions are available only for
purchases of ABCP where the ABCP is used to secure borrowing from the
AMLF. As a result, the exemptions effectively will no longer be
available once the AMLF expires.
The Board has determined that these exemptions are in the public
interest and consistent with the purposes of sections 23A and 23B. The
substantial protections provided to intermediaries by the Federal
Reserve in connection with the AMLF largely mitigate the safety-and-
soundness concerns that sections 23A and 23B were designed to address.
Because Federal Reserve extensions of credit to a member bank under the
AMLF are on a non-recourse basis, the bank should bear no risk of loss
from purchases of ABCP under the facility. Therefore, the Board
believes that it is appropriate to exempt a member bank that serves as
an intermediary in the AMLF from the requirements of sections 23A and
23B and Regulation W.
Administrative Procedure Act
Pursuant to sections 553(d) of the Administrative Procedure Act (5
U.S.C. 553(d)), the Board finds that there is good cause for making the
rule effective immediately on January 30, 2009. The Board has adopted
the rule in light of, and to help address, the continuing unusual and
exigent circumstances in the financial markets. The rule will provide
immediate relief to depository institutions that elect to participate
in the ABCP Lending Facility.
Regulatory Flexibility Act
The Regulatory Flexibility Act requires an agency that is issuing a
final rule to prepare and make available a regulatory flexibility
analysis that describes the impact of the final rule on small entities.
5 U.S.C. 603(a). The Regulatory Flexibility Act provides that an agency
is not required to prepare and publish a regulatory flexibility
analysis if the agency certifies that the final rule will not have a
significant economic impact on a substantial number of small entities.
5 U.S.C. 605(b).
Pursuant to section 605(b), the Board certifies that this final
rule will not have a significant economic impact on a substantial
number of small entities. The rule reduces regulatory burden on large
and small insured depository institutions by granting exemptions from
the Federal transactions with affiliates regime for insured depository
institutions that purchase ABCP from affiliated money market mutual
funds pursuant to the AMLF.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act (44 U.S.C. 3506; 5
CFR 1320 Appendix A.1), the Board has reviewed the final rule under
authority delegated to the Board by the Office of Management and
Budget. The rule contains no collections of information pursuant to the
Paperwork Reduction Act.
Plain Language
Section 722 of the Gramm-Leach-Bliley Act requires the Board to use
``plain language'' in all proposed and final rules. In light of this
requirement, the Board has sought to present the final rule in a simple
and straightforward manner. The Board invited comment on whether it
could take additional steps to make the rule easier to understand. The
Board received no comments on this subject.
List of Subjects in 12 CFR Part 223
Banks, Banking, Federal Reserve System.
Authority and Issuance
0
For the reasons set forth in the preamble, the Board amends Chapter II
of Title 12 of the Code of Federal Regulations as follows:
PART 223--TRANSACTIONS BETWEEN MEMBER BANKS AND THEIR AFFILIATES
(REGULATION W)
0
1. The authority citation for part 223 continues to read as follows:
Authority: 12 U.S.C. 371c and 371c-1.
0
2. In Sec. 223.42, revise paragraph (o) to read as follows:
Sec. 223.42 What covered transactions are exempt from the
quantitative limits, collateral requirements, and low-quality asset
prohibition?
* * * * *
(o) Purchases of certain asset-backed commercial paper. Purchases
of asset-backed commercial paper from an affiliated SEC-registered
open-end investment company that holds itself out as a money market
mutual fund under SEC Rule 2a-7 (17 CFR 270.2a-7), if the member bank:
(1) Purchases the asset-backed commercial paper on or after
September 19, 2008;
(2) Pledges the asset-backed commercial paper to a Federal Reserve
Bank to secure financing from the asset-backed commercial paper lending
facility (AMLF) established by the Board on September 19, 2008; and
(3) Has not been specifically informed by the Board, after
consultation with the member bank's appropriate Federal
[[Page 6228]]
banking agency, that the member bank may not use this exemption.
0
3. Revise Sec. 223.56 to read as follows:
Sec. 223.56 What transactions are exempt from the market-terms
requirement of section 23B?
The following transactions are exempt from the market-terms
requirement of Sec. 223.51.
(a) Purchases of certain asset-backed commercial paper. Purchases
of asset-backed commercial paper from an affiliated SEC-registered
open-end investment company that holds itself out as a money market
mutual fund under SEC Rule 2a-7 (17 CFR 270.2a-7), if the member bank:
(1) Purchases the asset-backed commercial paper on or after
September 19, 2008;
(2) Pledges the asset-backed commercial paper to a Federal Reserve
Bank to secure financing from the asset-backed commercial paper lending
facility (AMLF) established by the Board on September 19, 2008; and
(3) Has not been specifically informed by the Board, after
consultation with the member bank's appropriate Federal banking agency,
that the member bank may not use this exemption.
(b) [Reserved].
By order of the Board of Governors of the Federal Reserve
System, January 30, 2009.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E9-2338 Filed 2-5-09; 8:45 am]
BILLING CODE 6210-01-P
