Deposit Insurance Regulations; Permanent Increase in Standard Coverage Amount; Advertisement of Membership; International Banking; Foreign Banks, 49363-49365 [2010-20008]
Download as PDF
Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Rules and Regulations
research misconduct. Such actions may
include the recovery of funds,
correction of the research record,
debarment of the researcher(s) that
engaged in the research misconduct,
proper attribution, or any other action
deemed appropriate to remedy the
instance(s) of research misconduct. The
agency should consider the seriousness
of the misconduct, including, but not
limited to, the degree to which the
misconduct was knowingly conducted,
intentional, or reckless; was an isolated
event or part of a pattern; or had
significant impact on the research
record, research subjects, other
researchers, institutions, or the public
welfare. In determining the appropriate
administrative action, the appropriate
agency must impose a remedy that is
commensurate with the infraction as
described in the finding of research
misconduct.
§ 3022.13
Appeals.
(a) If USDA relied on an institution to
conduct an inquiry, investigation, and
adjudication, the alleged person(s)
should first follow the institution’s
appeal policy and procedures.
(b) USDA agencies’ implementation
procedures identify the appeal process
when a finding of research misconduct
is elevated to the agency.
§ 3022.14 Relationship to other
requirements.
erowe on DSK5CLS3C1PROD with RULES
Some of the research covered by this
part also may be subject to regulations
of other governmental agencies (e.g., a
university that receives funding from a
USDA agency and also under a grant
from another Federal agency). If more
than one agency of the Federal
Government has jurisdiction, USDA will
cooperate with the other Agency(ies) in
designating a lead agency. When USDA
is not the lead agency, it will rely on the
lead agency following its policies and
procedures in determining whether
there is a finding of research
misconduct. Further, USDA may, in
consultation with the lead agency, take
action to protect the health and safety of
the public, to promote the integrity of
the USDA-supported research and
research process, or to conserve public
funds. When appropriate, USDA will
seek to resolve allegations jointly with
the other agency or agencies.
Dated: August 5, 2010.
Issued at Washington, DC.
Jon M. Holladay,
Acting Chief Financial Officer.
Thomas J. Vilsack,
Secretary, U.S. Department of Agriculture.
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Parts 328, 330, and 347
RIN 3064–AD61
Deposit Insurance Regulations;
Permanent Increase in Standard
Coverage Amount; Advertisement of
Membership; International Banking;
Foreign Banks
August 10, 2010.
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
AGENCY:
On July 21, 2010, the
President signed into law the DoddFrank Wall Street Reform and Consumer
Protection Act (‘‘Dodd-Frank’’ Act).
Section 335 of the Dodd-Frank Act
made permanent the standard maximum
deposit insurance (‘‘SMDIA’’) amount of
$250,000. The FDIC is conforming its
regulations to reflect this recent
congressional action.
DATES: Effective Date: August 13, 2010.
Mandatory Compliance Date for
Revision to 12 CFR Part 328 (FDIC
Official Sign): January 3, 2011.
FOR FURTHER INFORMATION CONTACT:
Joseph A. DiNuzzo, Supervisory
Counsel, Legal Division (202) 898–7349;
Richard B. Foley, Counsel, Legal
Division (202) 898–3784; Walter C.
Siedentopf, Honors Attorney, Legal
Division (703) 562–2744; or Martin W.
Becker, Senior Consumer Affairs
Specialist, Division of Supervision and
Consumer Protection (202) 898–6644,
Federal Deposit Insurance Corporation,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
SUMMARY:
Overview
In this final rule, the FDIC is making
conforming changes to its insurance
regulations (12 CFR part 330),
international banking regulations (12
CFR part 347) and advertising
regulations (12 CFR part 328) to reflect
Congress’s action making permanent the
increase in the SMDIA (from $100,000
to $250,000).
I. Background
The Emergency Economic
Stabilization Act of 2008 temporarily
increased the SMDIA from $100,000 to
$250,000, effective October 3, 2008,
through December 31, 2009.1 On
October 17, 2008, the FDIC adopted an
interim rule amending its deposit
insurance regulations to reflect this
temporary increase in the SMDIA.2
[FR Doc. 2010–20109 Filed 8–12–10; 8:45 am]
1 Public
BILLING CODE 3410–90–P
2 73
VerDate Mar<15>2010
15:00 Aug 12, 2010
Jkt 220001
PO 00000
Law 110–343 (Oct. 3, 2008).
FR 61658 (Oct. 17, 2008).
Frm 00013
Fmt 4700
Sfmt 4700
49363
Subsequent to the issuance of this
interim rule, on May 20, 2009, the
President signed the Helping Families
Save Their Homes Act of 2009 (‘‘Helping
Families Act’’), which, among other
provisions, extended the temporary
increase in the SMDIA from December
31, 2009, to December 31, 2013.3 On
September 17, 2009, the FDIC adopted
a final rule amending its deposit
insurance regulations to reflect this
extension and to provide further
guidance by updating its examples of
deposit insurance coverage to
incorporate the increased SMDIA.4 On
July 21, 2010, the President signed the
Dodd-Frank Act,5 which, among other
provisions, made permanent 6 the
increase in the SMDIA from $100,000 to
$250,000.7
As implemented by part 328 of the
FDIC’s regulations (12 CFR part 328),
section 18(a) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(a))
requires that insured depository
institutions display an official FDIC
sign, which informs depositors of their
minimum amount of deposit insurance
coverage and states that this insurance
is backed by the full faith and credit of
the United States Government. As a
result of the Helping Families Act’s
extension of the temporary increase in
the SMDIA to $250,000, on May 22,
2009, the FDIC issued a Financial
Institution Letter, FIL–22–2009,
encouraging institutions to post notices
of the temporary increase in the deposit
insurance limit through December 31,
2013. At that time, the FDIC provided
an optional sign reflecting the
temporary increase in deposit insurance
coverage.
II. The Final Rule
A. Section 330.1 Definitions
The final rule revises the FDIC’s
deposit insurance rules (12 CFR Part
330) to define the SMDIA as $250,000
and to remove provisions indicating that
the SMDIA will return to $100,000. This
change is made in response to the DoddFrank Act, which, among other
provisions, made permanent the
increase in the SMDIA from $100,000 to
$250,000. The Dodd-Frank Act also
3 Public
Law 111–22 (May 20, 2009).
FR 47711 (Sept. 17, 2009).
5 Public Law 111–203 (July 21, 2010).
6 The SMDIA is still subject to an inflation
adjustment pursuant to subparagraph (F) of section
11(a)(1) of the Federal Deposit Insurance Act (12
U.S.C. 1821(a)(1)(F)). However, this inflation
adjustment will not affect the level of the SMDIA
in the foreseeable future because it will not take
effect until the value of $100,000, inflation adjusted
since 2005, exceeds the current SMDIA.
7 The effective date of the Dodd-Frank Act is July
22, 2010, one day after the enactment of the act.
4 74
E:\FR\FM\13AUR1.SGM
13AUR1
49364
Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Rules and Regulations
made the increase in the SMDIA to
$250,000 retroactive to January 1, 2008.
This retroactivity provision only applies
to a limited number of failed depository
institutions, those that closed between
January 1, 2008, and October 3, 2008.
The FDIC will implement the retroactive
application of the $250,000 SMDIA
without rulemaking.
B. Section 347.202
Definitions
The final rule revises the FDIC’s
international banking rules (12 CFR Part
347) to define the SMDIA as $250,000
and to remove provisions indicating that
the SMDIA will return to $100,000. This
change is made in response to the DoddFrank Act, as discussed above.
C. Section 328.1
Official Sign
The final rule revises the official FDIC
sign (12 CFR Part 328) to reflect the
permanent increase in the SMDIA. The
official sign will continue to have the
same size, colors, and design. The only
change is the replacement of ‘‘$100,000’’
with ‘‘$250,000,’’ so that the new official
sign will read ‘‘Each depositor insured
to at least $250,000,’’ instead of ‘‘Each
depositor insured to at least $100,000.’’
This change is also made in response to
the Dodd-Frank Act, as discussed above.
As noted, under the Dodd-Frank Act,
the $250,000 SMDIA became permanent
on July 22, 2010. To ensure that
depositors are accurately informed of
the permanent SMDIA of $250,000,
insured depository institutions should
promptly obtain the new official signs
and, upon receipt, display them without
delay—in any event not later than
January 3, 2011, the date for mandatory
compliance with the final rule.
The FDIC has made hard copies and
an electronic file of the new official sign
available free of charge to insured
depository institutions. This will
facilitate prompt implementation of the
new sign by all insured depository
institutions, including the limited
number of institutions that continue to
display the $100,000 limit, which is
potentially misleading to depositors.
The FDIC expects that these institutions,
in particular, will act expeditiously to
obtain and display the new official
signs.
erowe on DSK5CLS3C1PROD with RULES
III. Administrative Procedure Act
The FDIC believes that good cause
exists for issuing the final rule without
providing an opportunity for comment,
pursuant to section 553(b)(B) of the
Administrative Procedure Act (‘‘APA’’),
because seeking public comment under
these circumstances is ‘‘unnecessary,’’
‘‘impracticable,’’ and ‘‘contrary to the
VerDate Mar<15>2010
15:00 Aug 12, 2010
Jkt 220001
public interest.’’ 8 The FDIC also finds
good cause for issuing the final rule
without a 30-day delayed effective date,
pursuant to section 553(d)(3) of the
APA.
The Dodd-Frank Act amends section
11(a)(1)(E) of the Federal Deposit
Insurance Act 9 to permanently increase
the SMDIA to $250,000. The final rule
makes conforming amendments to the
FDIC’s regulations to reflect this
statutory change. None of the other
regulations affecting the calculation of
deposit insurance are affected by the
final rule.
The final rule merely conforms the
FDIC’s definition of the SMDIA to the
language of the revised statute and
conforms the official FDIC sign to reflect
this permanent increase in deposit
insurance coverage. There is no agency
discretion that could be informed by the
APA’s notice and comment process.
Therefore, the FDIC finds that notice
and comment procedures are
‘‘unnecessary’’ and that the ‘‘good cause’’
exception to the APA’s notice-and
comment requirement applies. See, e.g.,
Gray Panthers Advocacy Comm. v.
Sullivan, 936 F.2d 1284, 1290–92 (DC
Cir. 1991) (regulations that ‘‘either
restate or paraphrase the detailed
requirements’’ of a self-executing statute
do not require notice and comment);
Nat’l Customs Brokers & Forwarders
Ass’n v. United States, 59 F.3d 1219,
1223–24 (Fed. Cir. 1995) (notice and
comment unnecessary where Congress
directed agency to change regulations
and public would benefit from
amendments).
Additionally, a finding of good cause
is warranted because it would be
‘‘impracticable’’ and ‘‘contrary to the
public interest’’ to delay printing and
distribution of a revised official sign in
order to seek public comment on the
revision. Because the revision to the
SMDIA was effective one day after
enactment of the Dodd-Frank Act, it is
in the public interest for the Corporation
to take immediate steps to make
depositors aware of this permanent
increase in deposit insurance coverage.
A delay in distribution of signs
advertising the new deposit insurance
limit would be detrimental to this goal,
and therefore, complying with formal
notice and comment procedures is
‘‘impracticable’’ and ‘‘contrary to the
public interest.’’
Finally, a finding of good cause for
waiving the requirement of a 30-day
delayed effective date is warranted
because of the need for immediate
guidance to depositors, which
85
U.S.C. 553(b)(B).
U.S.C. 1821(a)(1)(E).
9 12
PO 00000
Frm 00014
Fmt 4700
Sfmt 4700
implementation and distribution of the
new official sign will provide. Also, a
delayed effective date is unnecessary
because the only provision of the final
rule requiring institutions to take certain
actions—i.e., the change in the official
sign—would not be enforced until
January 3, 2011.
IV. Paperwork Reduction Act
The final rule will revise the FDIC’s
deposit insurance regulations. It will not
involve any new collections of
information pursuant to the Paperwork
Reduction Act (44 U.S.C. 3501 et seq.).
Consequently, no information collection
has been submitted to the Office of
Management and Budget for review.
V. 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 impact on a
substantial number of small entities.
The final rule implements the
permanent increase in the SMDIA by
the Dodd-Frank Act; the FDIC has no
discretion in setting the SMDIA. Display
of the official sign is required by section
18(a) of FDI Act. There would not be
any compliance costs with displaying
the official sign, because it would be
provided by the FDIC free of charge.
Insured banks have complied with
similar advertising requirements for
over seventy years without significant
expense. Accordingly, pursuant to
section 605(b) of the Regulatory
Flexibility Act, the FDIC Board of
Directors certifies that the final rule
would not have a significant economic
impact on a substantial number of small
entities.
VI. The Treasury and General
Government Appropriations Act,
1999—Assessment of Federal
Regulations and Policies on Families
The FDIC has determined that the
final rule will not affect family wellbeing within the meaning of section 654
of the Treasury and General
Government Appropriations Act,
enacted as part of the Omnibus
Consolidated and Emergency
Supplemental Appropriations Act of
1999 (Pub. L. 105–277, 112 Stat. 2681).
E:\FR\FM\13AUR1.SGM
13AUR1
Federal Register / Vol. 75, No. 156 / Friday, August 13, 2010 / Rules and Regulations
The Office of Management and Budget
has determined that the final rule is not
a ‘‘major rule’’ within the meaning of the
relevant sections of the Small Business
Regulatory Enforcement Act of 1996
(‘‘SBREFA’’) (5 U.S.C. 801 et seq.). As
required by SBREFA, the FDIC will file
the appropriate reports with Congress
and the General Accounting Office so
that the final rule may be reviewed.
*
*
*
PART 330—DEPOSIT INSURANCE
COVERAGE
4. In § 330.1, paragraph (n) is revised
to read as follows:
Definitions.
erowe on DSK5CLS3C1PROD with RULES
*
*
*
*
(n) Standard maximum deposit
insurance amount, referred to as the
‘‘SMDIA’’ hereafter, means $250,000
adjusted pursuant to subparagraph (F) of
section 11(a)(1) of the FDI Act (12 U.S.C.
1821(a)(1)(F)).
*
*
*
*
*
5. The authority citation for part 347
continues to read as follows:
■
VerDate Mar<15>2010
15:00 Aug 12, 2010
Jkt 220001
12 CFR Part 347
Bank deposit insurance, Banks,
Banking, International banking; Foreign
banks.
■
DEPARTMENT OF TRANSPORTATION
14 CFR Part 39
Definitions.
*
■
PART 347—INTERNATIONAL
BANKING
■
§ 347.202
Authority: 12 U.S.C. 1813(1), 1813(m),
1817(i), 1818(q), 1819 (Tenth), 1820(f),
1821(a), 1822(c).
*
PART 328—ADVERTISEMENT OF
MEMBERSHIP
12 CFR Part 330
Bank deposit insurance, Banks,
Banking, Reporting and recordkeeping
requirements, Savings and loan
associations, Trusts and trustees.
■
3. The authority citation for part 330
continues to read as follows:
■
§ 330.1
12 CFR Part 328
Advertising, Bank deposit insurance,
Savings associations, Signs and
symbols.
6. In § 347.202, paragraph (v) is
revised to read as follows:
Section 722 of the Gramm-LeachBlilely Act (Pub. L. 106–102, 113 Stat.
1338, 1471), requires the Federal
banking agencies to use plain language
in all proposed and final rules
*
List of Subjects
For the reasons stated above, the
Board of Directors of the Federal
Deposit Insurance Corporation hereby
amends parts 328, 330, and 347 of title
12 of the Code of Federal Regulations as
follows:
■
Authority: 12 U.S.C. 1813, 1815, 1817,
1819, 1820, 1828, 3103, 3104, 3105, 3108,
3109; Title IX, Pub. L. 98–181, 97 Stat. 1153.
VIII. Plain Language
*
published after January 1, 2000. The
FDIC has sought to present the final rule
in a simple and straightforward manner.
*
*
*
*
(v) Standard maximum deposit
insurance amount, referred to as the
‘‘SMDIA’’ hereafter, means $250,000
adjusted pursuant to subparagraph (F) of
section 11(a)(1) of the FDI Act (12 U.S.C.
1821(a)(1)(F)).
*
*
*
*
*
Dated at Washington DC, this 10th day of
August 2010.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2010–20008 Filed 8–12–10; 8:45 am]
BILLING CODE P
PO 00000
Frm 00015
Fmt 4700
Sfmt 4700
1. The authority citation for part 328
continues to read as follows:
Authority: 12 U.S.C. 1818(a), 1813(m),
1819 (Tenth), 1828(a).
2. In § 328.1, paragraph (a) is amended
by revising the graphic image of the
official sign to appear as follows:
(a) * * *
Federal Aviation Administration
[Docket No. FAA–2010–0434; Directorate
Identifier 2009–NM–221–AD; Amendment
39–16386; AD 2010–16–09]
RIN 2120–AA64
Airworthiness Directives; BAE
Systems (Operations) Limited Model
BAe 146–100A and –200A Airplanes
Federal Aviation
Administration (FAA), Department of
Transportation (DOT).
ACTION: Final rule.
AGENCY:
We are adopting a new
airworthiness directive (AD) for the
products listed above. This AD results
from mandatory continuing
airworthiness information (MCAI)
originated by an aviation authority of
another country to identify and correct
an unsafe condition on an aviation
SUMMARY:
E:\FR\FM\13AUR1.SGM
13AUR1
ER13AU10.000
VII. Small Business Regulatory
Enforcement Fairness Act
49365
Agencies
[Federal Register Volume 75, Number 156 (Friday, August 13, 2010)]
[Rules and Regulations]
[Pages 49363-49365]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-20008]
=======================================================================
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 328, 330, and 347
RIN 3064-AD61
Deposit Insurance Regulations; Permanent Increase in Standard
Coverage Amount; Advertisement of Membership; International Banking;
Foreign Banks
August 10, 2010.
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: On July 21, 2010, the President signed into law the Dodd-Frank
Wall Street Reform and Consumer Protection Act (``Dodd-Frank'' Act).
Section 335 of the Dodd-Frank Act made permanent the standard maximum
deposit insurance (``SMDIA'') amount of $250,000. The FDIC is
conforming its regulations to reflect this recent congressional action.
DATES: Effective Date: August 13, 2010.
Mandatory Compliance Date for Revision to 12 CFR Part 328 (FDIC
Official Sign): January 3, 2011.
FOR FURTHER INFORMATION CONTACT: Joseph A. DiNuzzo, Supervisory
Counsel, Legal Division (202) 898-7349; Richard B. Foley, Counsel,
Legal Division (202) 898-3784; Walter C. Siedentopf, Honors Attorney,
Legal Division (703) 562-2744; or Martin W. Becker, Senior Consumer
Affairs Specialist, Division of Supervision and Consumer Protection
(202) 898-6644, Federal Deposit Insurance Corporation, Washington, DC
20429.
SUPPLEMENTARY INFORMATION:
Overview
In this final rule, the FDIC is making conforming changes to its
insurance regulations (12 CFR part 330), international banking
regulations (12 CFR part 347) and advertising regulations (12 CFR part
328) to reflect Congress's action making permanent the increase in the
SMDIA (from $100,000 to $250,000).
I. Background
The Emergency Economic Stabilization Act of 2008 temporarily
increased the SMDIA from $100,000 to $250,000, effective October 3,
2008, through December 31, 2009.\1\ On October 17, 2008, the FDIC
adopted an interim rule amending its deposit insurance regulations to
reflect this temporary increase in the SMDIA.\2\ Subsequent to the
issuance of this interim rule, on May 20, 2009, the President signed
the Helping Families Save Their Homes Act of 2009 (``Helping Families
Act''), which, among other provisions, extended the temporary increase
in the SMDIA from December 31, 2009, to December 31, 2013.\3\ On
September 17, 2009, the FDIC adopted a final rule amending its deposit
insurance regulations to reflect this extension and to provide further
guidance by updating its examples of deposit insurance coverage to
incorporate the increased SMDIA.\4\ On July 21, 2010, the President
signed the Dodd-Frank Act,\5\ which, among other provisions, made
permanent \6\ the increase in the SMDIA from $100,000 to $250,000.\7\
---------------------------------------------------------------------------
\1\ Public Law 110-343 (Oct. 3, 2008).
\2\ 73 FR 61658 (Oct. 17, 2008).
\3\ Public Law 111-22 (May 20, 2009).
\4\ 74 FR 47711 (Sept. 17, 2009).
\5\ Public Law 111-203 (July 21, 2010).
\6\ The SMDIA is still subject to an inflation adjustment
pursuant to subparagraph (F) of section 11(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1821(a)(1)(F)). However, this
inflation adjustment will not affect the level of the SMDIA in the
foreseeable future because it will not take effect until the value
of $100,000, inflation adjusted since 2005, exceeds the current
SMDIA.
\7\ The effective date of the Dodd-Frank Act is July 22, 2010,
one day after the enactment of the act.
---------------------------------------------------------------------------
As implemented by part 328 of the FDIC's regulations (12 CFR part
328), section 18(a) of the Federal Deposit Insurance Act (12 U.S.C.
1828(a)) requires that insured depository institutions display an
official FDIC sign, which informs depositors of their minimum amount of
deposit insurance coverage and states that this insurance is backed by
the full faith and credit of the United States Government. As a result
of the Helping Families Act's extension of the temporary increase in
the SMDIA to $250,000, on May 22, 2009, the FDIC issued a Financial
Institution Letter, FIL-22-2009, encouraging institutions to post
notices of the temporary increase in the deposit insurance limit
through December 31, 2013. At that time, the FDIC provided an optional
sign reflecting the temporary increase in deposit insurance coverage.
II. The Final Rule
A. Section 330.1 Definitions
The final rule revises the FDIC's deposit insurance rules (12 CFR
Part 330) to define the SMDIA as $250,000 and to remove provisions
indicating that the SMDIA will return to $100,000. This change is made
in response to the Dodd-Frank Act, which, among other provisions, made
permanent the increase in the SMDIA from $100,000 to $250,000. The
Dodd-Frank Act also
[[Page 49364]]
made the increase in the SMDIA to $250,000 retroactive to January 1,
2008. This retroactivity provision only applies to a limited number of
failed depository institutions, those that closed between January 1,
2008, and October 3, 2008. The FDIC will implement the retroactive
application of the $250,000 SMDIA without rulemaking.
B. Section 347.202 Definitions
The final rule revises the FDIC's international banking rules (12
CFR Part 347) to define the SMDIA as $250,000 and to remove provisions
indicating that the SMDIA will return to $100,000. This change is made
in response to the Dodd-Frank Act, as discussed above.
C. Section 328.1 Official Sign
The final rule revises the official FDIC sign (12 CFR Part 328) to
reflect the permanent increase in the SMDIA. The official sign will
continue to have the same size, colors, and design. The only change is
the replacement of ``$100,000'' with ``$250,000,'' so that the new
official sign will read ``Each depositor insured to at least
$250,000,'' instead of ``Each depositor insured to at least $100,000.''
This change is also made in response to the Dodd-Frank Act, as
discussed above.
As noted, under the Dodd-Frank Act, the $250,000 SMDIA became
permanent on July 22, 2010. To ensure that depositors are accurately
informed of the permanent SMDIA of $250,000, insured depository
institutions should promptly obtain the new official signs and, upon
receipt, display them without delay--in any event not later than
January 3, 2011, the date for mandatory compliance with the final rule.
The FDIC has made hard copies and an electronic file of the new
official sign available free of charge to insured depository
institutions. This will facilitate prompt implementation of the new
sign by all insured depository institutions, including the limited
number of institutions that continue to display the $100,000 limit,
which is potentially misleading to depositors. The FDIC expects that
these institutions, in particular, will act expeditiously to obtain and
display the new official signs.
III. Administrative Procedure Act
The FDIC believes that good cause exists for issuing the final rule
without providing an opportunity for comment, pursuant to section
553(b)(B) of the Administrative Procedure Act (``APA''), because
seeking public comment under these circumstances is ``unnecessary,''
``impracticable,'' and ``contrary to the public interest.'' \8\ The
FDIC also finds good cause for issuing the final rule without a 30-day
delayed effective date, pursuant to section 553(d)(3) of the APA.
---------------------------------------------------------------------------
\8\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------
The Dodd-Frank Act amends section 11(a)(1)(E) of the Federal
Deposit Insurance Act \9\ to permanently increase the SMDIA to
$250,000. The final rule makes conforming amendments to the FDIC's
regulations to reflect this statutory change. None of the other
regulations affecting the calculation of deposit insurance are affected
by the final rule.
---------------------------------------------------------------------------
\9\ 12 U.S.C. 1821(a)(1)(E).
---------------------------------------------------------------------------
The final rule merely conforms the FDIC's definition of the SMDIA
to the language of the revised statute and conforms the official FDIC
sign to reflect this permanent increase in deposit insurance coverage.
There is no agency discretion that could be informed by the APA's
notice and comment process. Therefore, the FDIC finds that notice and
comment procedures are ``unnecessary'' and that the ``good cause''
exception to the APA's notice-and comment requirement applies. See,
e.g., Gray Panthers Advocacy Comm. v. Sullivan, 936 F.2d 1284, 1290-92
(DC Cir. 1991) (regulations that ``either restate or paraphrase the
detailed requirements'' of a self-executing statute do not require
notice and comment); Nat'l Customs Brokers & Forwarders Ass'n v. United
States, 59 F.3d 1219, 1223-24 (Fed. Cir. 1995) (notice and comment
unnecessary where Congress directed agency to change regulations and
public would benefit from amendments).
Additionally, a finding of good cause is warranted because it would
be ``impracticable'' and ``contrary to the public interest'' to delay
printing and distribution of a revised official sign in order to seek
public comment on the revision. Because the revision to the SMDIA was
effective one day after enactment of the Dodd-Frank Act, it is in the
public interest for the Corporation to take immediate steps to make
depositors aware of this permanent increase in deposit insurance
coverage. A delay in distribution of signs advertising the new deposit
insurance limit would be detrimental to this goal, and therefore,
complying with formal notice and comment procedures is
``impracticable'' and ``contrary to the public interest.''
Finally, a finding of good cause for waiving the requirement of a
30-day delayed effective date is warranted because of the need for
immediate guidance to depositors, which implementation and distribution
of the new official sign will provide. Also, a delayed effective date
is unnecessary because the only provision of the final rule requiring
institutions to take certain actions--i.e., the change in the official
sign--would not be enforced until January 3, 2011.
IV. Paperwork Reduction Act
The final rule will revise the FDIC's deposit insurance
regulations. It will not involve any new collections of information
pursuant to the Paperwork Reduction Act (44 U.S.C. 3501 et seq.).
Consequently, no information collection has been submitted to the
Office of Management and Budget for review.
V. 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 impact on a substantial number of small entities.
The final rule implements the permanent increase in the SMDIA by
the Dodd-Frank Act; the FDIC has no discretion in setting the SMDIA.
Display of the official sign is required by section 18(a) of FDI Act.
There would not be any compliance costs with displaying the official
sign, because it would be provided by the FDIC free of charge. Insured
banks have complied with similar advertising requirements for over
seventy years without significant expense. Accordingly, pursuant to
section 605(b) of the Regulatory Flexibility Act, the FDIC Board of
Directors certifies that the final rule would not have a significant
economic impact on a substantial number of small entities.
VI. The Treasury and General Government Appropriations Act, 1999--
Assessment of Federal Regulations and Policies on Families
The FDIC has determined that the final rule will not affect family
well-being within the meaning of section 654 of the Treasury and
General Government Appropriations Act, enacted as part of the Omnibus
Consolidated and Emergency Supplemental Appropriations Act of 1999
(Pub. L. 105-277, 112 Stat. 2681).
[[Page 49365]]
VII. Small Business Regulatory Enforcement Fairness Act
The Office of Management and Budget has determined that the final
rule is not a ``major rule'' within the meaning of the relevant
sections of the Small Business Regulatory Enforcement Act of 1996
(``SBREFA'') (5 U.S.C. 801 et seq.). As required by SBREFA, the FDIC
will file the appropriate reports with Congress and the General
Accounting Office so that the final rule may be reviewed.
VIII. Plain Language
Section 722 of the Gramm-Leach-Blilely Act (Pub. L. 106-102, 113
Stat. 1338, 1471), requires the Federal banking agencies to use plain
language in all proposed and final rules published after January 1,
2000. The FDIC has sought to present the final rule in a simple and
straightforward manner.
List of Subjects
12 CFR Part 328
Advertising, Bank deposit insurance, Savings associations, Signs
and symbols.
12 CFR Part 330
Bank deposit insurance, Banks, Banking, Reporting and recordkeeping
requirements, Savings and loan associations, Trusts and trustees.
12 CFR Part 347
Bank deposit insurance, Banks, Banking, International banking;
Foreign banks.
0
For the reasons stated above, the Board of Directors of the Federal
Deposit Insurance Corporation hereby amends parts 328, 330, and 347 of
title 12 of the Code of Federal Regulations as follows:
PART 328--ADVERTISEMENT OF MEMBERSHIP
0
1. The authority citation for part 328 continues to read as follows:
Authority: 12 U.S.C. 1818(a), 1813(m), 1819 (Tenth), 1828(a).
0
2. In Sec. 328.1, paragraph (a) is amended by revising the graphic
image of the official sign to appear as follows:
(a) * * *
[GRAPHIC] [TIFF OMITTED] TR13AU10.000
* * * * *
PART 330--DEPOSIT INSURANCE COVERAGE
0
3. The authority citation for part 330 continues to read as follows:
Authority: 12 U.S.C. 1813(1), 1813(m), 1817(i), 1818(q), 1819
(Tenth), 1820(f), 1821(a), 1822(c).
0
4. In Sec. 330.1, paragraph (n) is revised to read as follows:
Sec. 330.1 Definitions.
* * * * *
(n) Standard maximum deposit insurance amount, referred to as the
``SMDIA'' hereafter, means $250,000 adjusted pursuant to subparagraph
(F) of section 11(a)(1) of the FDI Act (12 U.S.C. 1821(a)(1)(F)).
* * * * *
PART 347--INTERNATIONAL BANKING
0
5. The authority citation for part 347 continues to read as follows:
Authority: 12 U.S.C. 1813, 1815, 1817, 1819, 1820, 1828, 3103,
3104, 3105, 3108, 3109; Title IX, Pub. L. 98-181, 97 Stat. 1153.
0
6. In Sec. 347.202, paragraph (v) is revised to read as follows:
Sec. 347.202 Definitions.
* * * * *
(v) Standard maximum deposit insurance amount, referred to as the
``SMDIA'' hereafter, means $250,000 adjusted pursuant to subparagraph
(F) of section 11(a)(1) of the FDI Act (12 U.S.C. 1821(a)(1)(F)).
* * * * *
Dated at Washington DC, this 10th day of August 2010.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2010-20008 Filed 8-12-10; 8:45 am]
BILLING CODE P