Temporary Liquidity Guarantee Program; Unlimited Deposit Insurance Coverage for Noninterest-Bearing Transaction Accounts, 65919-65921 [2015-27294]
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Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Rules and Regulations
brokers, dealers, persons providing
insurance, investment companies, and
investment advisers).
3. Amend § 334.3 by adding paragraph
(m) to read as follows:
■
§ 334.3
Definitions.
*
*
*
*
*
(m) State savings association has the
same meaning as in section 3(b)(3) of
the Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).
Subparts C through E—[Removed and
Reserved]
3. Remove and reserve subparts C, D,
and E.
■
Subpart I—Records Disposal
§ 334.82
■
persons providing insurance,
investment companies, or investment
advisers).
(b) * * *
(3) State savings association has the
same meaning as in section 3(b)(3) of
the Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).
*
*
*
*
*
FEDERAL DEPOSIT INSURANCE
CORPORATION
8. In appendix J to part 334, amend
supplement A under the heading
‘‘Alerts, Notifications or Warnings from
a Consumer Reporting Agency’’ by
revising paragraph 3 to read as follows:
AGENCY:
■
Appendix J to Part 334—Interagency
Guidelines on Identity Theft Detection,
Prevention, and Mitigation
*
4. Revise the heading for subpart I to
read as set forth above.
■
*
*
*
*
*
*
*
*
Alerts, Notifications or Warnings from a
Consumer Reporting Agency
5. Remove and reserve § 334.82.
Subpart J—Identity Theft Red Flags
*
6. Amend § 334.90 by revising
paragraphs (a) and (b)(5) and adding
paragraph (b)(11) to read as follows:
■
■
§ 334.90 Duties regarding the detection,
prevention, and mitigation of identity theft.
(a) Scope This section applies to a
financial institution or creditor that is
an insured state nonmember bank, State
savings association whose deposits are
insured by the Federal Deposit
Insurance Corporation, insured state
licensed branch of a foreign bank, or a
subsidiary of such entities (except
brokers, dealers, persons providing
insurance, investment companies, and
investment advisers).
(b) * * *
(5) Creditor has the same meaning as
in 15 U.S.C. 1681m(e)(4).
*
*
*
*
*
(11) State savings association has the
same meaning as in section 3(b)(3) of
the Federal Deposit Insurance Act, 12
U.S.C. 1813(b)(3).
*
*
*
*
*
■ 7. Amend § 334.91 by revising
paragraph (a) and adding paragraph
(b)(3) to read as follows:
§ 334.91 Duties of card issuers regarding
change of address.
Lhorne on DSK5TPTVN1PROD with RULES
*
Supplement A to Appendix J
[Removed and Reserved]
(a) Scope This section applies to an
issuer of a debit or credit card (card
issuer) that is an insured state
nonmember bank, state savings
association whose deposits are insured
by the Federal Deposit Insurance
Corporation, insured state licensed
branch of a foreign bank, or a subsidiary
of such entities (except brokers, dealers,
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*
*
*
*
3. A consumer reporting agency
provides a notice of address
discrepancy, as defined in 12 CFR
1022.82(b).
*
*
*
*
*
PART 391—REGULATIONS
TRANSFERRED FROM THE OFFICE OF
THRIFT SUPERVISION
9. The authority citation for part 391
continues, in part, to read as follows:
■
Authority: 12 U.S.C. 1819.
*
*
*
*
*
Subpart C also issued under 12 U.S.C.
1462a; 1463; 1464; 1828; 1831p–1; and 1881–
1884; 15 U.S.C. 1681m; 1681w.
*
*
*
*
*
Subpart C—[Removed and Reserved]
10. Remove and reserve subpart C,
consisting of §§ 391.20 through 391.23
and an appendix.
■
Dated at Washington, DC, this 22nd day of
October, 2015.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015–27291 Filed 10–27–15; 8:45 am]
BILLING CODE 6714–01–P
PO 00000
12 CFR Parts 330 and 370
RIN 3064–AE34
Temporary Liquidity Guarantee
Program; Unlimited Deposit Insurance
Coverage for Noninterest-Bearing
Transaction Accounts
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
The FDIC is rescinding and
removing its regulations implementing
the Temporary Liquidity Guarantee
Program (TLGP) and the unlimited
deposit insurance coverage for
‘‘noninterest-bearing transaction
accounts’’ provided by section 343 of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act, and related
definitions. Because these programs
have expired by their terms, the
regulations implementing them are
unnecessary and obsolete.
DATES: Effective Date: The final rule is
effective October 28, 2015.
FOR FURTHER INFORMATION CONTACT:
Schuyler Livingston, Economic Analyst,
Division of Insurance and Research
(202) 898–6830 or slivingston@fdic.gov;
Marc Steckel, Deputy Director, Division
of Resolutions and Receiverships (571)
858–8224 or msteckel@fdic.gov; Lisa D.
Arquette, Associate Director, Division of
Risk Management Supervision (202)
898–8633 or larquette@fdic.gov; or
Gregory S. Feder, Counsel, Legal
Division (202) 898–8724 or gfeder@
fdic.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
I. Background
In October 2008, acting in response to
unprecedented disruptions to the
nation’s credit markets and pursuant to
section 13(c)(4)(G) of the Federal
Deposit Insurance Act (FDI Act),1 the
Board of Directors of the Federal
Deposit Insurance Corporation (FDIC)
and the Board of Governors of the
Federal Reserve System (FRB)
recommended that the Secretary of the
Treasury, following consultation with
the President, make a determination that
systemic risk existed in the nation’s
financial system. After the Treasury
Secretary’s determination of systemic
risk, the FDIC was authorized to take
action or to provide assistance as
necessary to avoid or to mitigate the
effects of the perceived risks to the
financial system. Pursuant to this
1 12
Frm 00039
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U.S.C. 1823(c)(4)(G).
28OCR1
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65920
Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Rules and Regulations
authority, the FDIC issued part 370 of
Title 12 of the Code of Federal
Regulations (part 370) which
established the TLGP. The TLGP was
composed of two distinct components:
The Debt Guarantee Program (DGP) and
the Transaction Account Guarantee
Program (TAGP). The DGP provided a
temporary FDIC guarantee for all newly
issued senior unsecured debt issued by
participating entities up to prescribed
limits; the TAGP provided a temporary
FDIC guarantee for all funds held at
FDIC-insured depository institutions in
noninterest-bearing transaction accounts
above the existing deposit insurance
limit.
From its inception, the TLGP was
intended to be a time-limited program.
The FDIC’s initial guarantee under the
DGP expired on the earlier of the
maturity date of the debt or June 30,
2012, for newly issued senior unsecured
debt issued through June 30, 2009, by
entities that opted into the DGP.2 To
reduce market disruption at the
conclusion of the DGP and to facilitate
the orderly phase-out of the program, in
2009, the FDIC extended the issuance
period for senior unsecured debt
through October 31, 2009, and similarly
extended the FDIC’s guarantee on such
obligations to the earlier of the stated
maturity date of the debt or December
31, 2012.3 Later in 2009, the FDIC
established a limited six-month
emergency guarantee facility, available
to participating entities on an
application basis. Although no entities
applied to avail themselves of the
FDIC’s emergency guarantee facility, the
FDIC would have permitted approved
entities to issue FDIC-guaranteed debt
through April 30, 2010, for which the
FDIC’s guarantee would have expired on
the earlier of the stated maturity date of
the debt or December 31, 2012.4
Under the TAGP, the FDIC’s
guarantee of all noninterest-bearing
transaction accounts originally was
scheduled to expire on December 31,
2009.5 In recognition of the continuing
effects of economic turmoil, the FDIC
twice extended the expiration deadline
for the TAGP: First, until June 30,
2010,6 and, later, until December 31,
2010, ‘‘unless the Board, for good cause,
extends the program for an additional
period of time not to exceed one year.’’ 7
On September 30, 2010, the FDIC
2 73
FR 72244 (Nov. 26, 2008).
FR 26521 (Jun. 3, 2009).
4 74 FR 54743 (Oct. 23, 2009).
5 73 FR 72244 (Nov. 26, 2008).
6 74 FR 45093 (Sept. 1, 2009).
7 75 FR 36506 (Jun. 28, 2010).
3 74
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Jkt 238001
indicated that the TAGP would not be
extended beyond December 31, 2010.8
Over the course of the DGP’s
existence, 122 entities issued TLGP
debt. At its peak, the DGP guaranteed
$345.8 billion of outstanding debt. The
DGP guarantee on all TLGP debt that
had not already matured expired on
December 31, 2012. Therefore, at the
end of 2012, no debt guaranteed by the
FDIC under the DGP remained.
The FDIC collected $10.4 billion in
fees and surcharges under the DGP. As
of December 31, 2012, the FDIC had
paid $153 million in losses resulting
from six participating entities defaulting
on debt issued under the DGP. The
majority of these losses ($113 million)
arose from banks with outstanding DGP
notes that failed in 2011 and were
placed into receivership.
The FDIC collected $1.2 billion in fees
under the TAGP. Cumulative estimated
TAGP losses on failures as of December
31, 2012, totaled $2.1 billion.
Overall, TLGP fees exceeded the
losses from the program. From the
inception of the TLGP, it was the FDIC’s
policy to recognize revenue to the
Deposit Insurance Fund (DIF) for any
portion of guarantee fees in excess of
amounts needed to cover potential
losses upon expiration of the TLGP
guarantee period (December 31, 2012) or
earlier. In total, $9.3 billion in TLGP
fees were deposited into the DIF.
On July 21, 2010, the Dodd-Frank
Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) was
enacted.9 Section 343 of the Dodd-Frank
Act provided for unlimited deposit
insurance for noninterest-bearing
transaction accounts for two years
starting December 31, 2010, after which,
by its terms, the section was repealed.
This unlimited coverage for
‘‘noninterest-bearing transaction
accounts’’ as defined in the Dodd-Frank
Act was similar to, but not identical to,
the protection provided for such
account owners under the FDIC’s TAGP.
On November 15, 2010, the FDIC
published a final rule in the Federal
Register amending 12 CFR part 330 to
implement section 343 of the DoddFrank Act, providing for unlimited
deposit insurance for ‘‘noninterestbearing transaction accounts’’ for two
years starting December 31, 2010.10 The
8 75
FR 60341 (Sept. 30, 2010).
Law 111–203 (July 21, 2010).
10 75 FR 69577 (Nov. 15, 2010) (adding 12 CFR
303.1(r), 303.16). The FDIC used its proposed rule
implementing the Dodd-Frank coverage for
noninterest-bearing transaction accounts as a
vehicle for the FDIC’s Board of Directors to
announce that it would not continue the TAGP
beyond December 31, 2010. 75 FR 60341(Sept. 30,
2010).
9 Public
PO 00000
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final rule added a new definition of
noninterest-bearing transaction account
to the FDIC’s regulations at § 330.1(r)
(now § 330.1(s)). The final rule also
added new § 330.16 to provide for full
insurance coverage, regardless of the
standard maximum deposit insurance
limit, to noninterest-bearing transaction
accounts from December 31, 2010,
through December 31, 2012.
On January 27, 2011, the FDIC
published a final rule in the Federal
Register (1) amending the definition of
‘‘noninterest-bearing transaction
account’’ to include IOLTA accounts; (2)
requiring that notice be posted regarding
the scope of coverage of the Dodd-Frank
Act transaction account guarantee
program at the bank’s main office, in
branch lobbies, and on its Web site; and
(3) requiring that notice be provided to
holders of NOW accounts that such
accounts are no longer covered.11
The expiration dates for the DGP and
the TAGP were stated clearly in the
FDIC’s TLGP regulation. Because
December 31, 2010 (the expiration date
of the TAGP) and December 31, 2012
(the expiration of the DGP) have passed,
all of the FDIC’s obligations under either
component of the TLGP have expired.
With the expiration of both the DGP and
the TAGP, part 370 is unnecessary and
obsolete.
Similarly, § 330.16(a) clearly provides
that the unlimited deposit insurance for
noninterest-bearing transaction accounts
under the Dodd-Frank Act expired on
December 31, 2012. After that date, by
its terms, the section was repealed. As
such, § 330.16 and the definition of
‘‘noninterest-bearing transaction
account’’ at § 330.1(s) are unnecessary
and obsolete.
II. The Final Rule
For the reasons set forth in the
preceding section, the FDIC is issuing
the final rule, which will rescind part
370, § 330.16, and § 330.1(s) and remove
them from the FDIC’s regulations.
III. Regulatory Analysis
A. Administrative Procedure Act
1. Notice and Opportunity for Public
Comment
Pursuant to section 553(b)(3)(B) of the
Administrative Procedure Act (APA),
providing notice and an opportunity for
public comment is not required prior to
the issuance of a substantive rule if an
agency for good cause finds that notice
and public procedure thereon are
impracticable, unnecessary, or contrary
to the public interest. In this instance,
11 76 FR 4813 (Jan. 27, 2011) (amending 12 CFR
303.1(r), 303.16).
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Federal Register / Vol. 80, No. 208 / Wednesday, October 28, 2015 / Rules and Regulations
the FDIC invokes this good cause
exception to Section 553 of the APA.
The FDIC believes that good cause
exists for issuing a final rule without
providing notice and an opportunity for
public comment because such an
exercise is ‘‘unnecessary.’’ By the
express terms of both regulations, the
underlying programs described in part
370 and § 330.16 have expired, and,
because of that, the rescission of these
rules can have no effect on the banking
industry or the public. Moreover, the
rescission of part 370, § 330.1(s), and
§ 330.16 is not ‘‘substantive’’ as the
programs that these regulations
implemented have expired and they
affect no substantive rights or
obligations.
2. Effective Date
In addition, section 553(d)(3) of the
APA provides that an agency, for good
cause found and published with the
rule, does not have to comply with the
requirement that a substantive rule be
published not less than 30 days before
its effective date. The FDIC invokes this
good cause exception because the
rescission of part 370, § 330.1(s), and
§ 330.16 is not ‘‘substantive’’ as the
programs that these regulations
implemented have expired and they
affect no substantive rights or
obligations.12
Lhorne on DSK5TPTVN1PROD with RULES
B. The Economic Growth and
Regulatory Paperwork Reduction Act
Under section 2222 of the Economic
Growth and Regulatory Paperwork
Reduction Act of 1996 (EGRPRA),13 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. The
FDIC completed the last comprehensive
review of its regulations under EGRPRA
in 2006 and has commenced the next
decennial review. Rescission of part 370
and § 330.16 is consistent with the
required regulatory response to the
EGRPRA review process: To eliminate
unnecessary regulations to the extent
such action is appropriate.
C. 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).14 As required by law,
the FDIC will file the appropriate
12 5
U.S.C. 553(d)(3).
U.S.C. 3311.
14 Public Law 104–121 (Mar. 29, 1996), as
amended by Public Law 110–28 (May 25, 2007).
reports with Congress and the General
Accounting Office so that the Final Rule
may be reviewed.
D. Paperwork Reduction Act
Existing collections of information
shall be discontinued or modified, as
appropriate, to the extent that this rule
obviates or alters any collection of
information.
E. Regulatory Flexibility Act
The Regulatory Flexibility Act 15
(RFA) applies only to rules for which an
agency publishes a general notice of
proposed rulemaking pursuant to 5
U.S.C. 553(b), or any other law.16 As
discussed above, consistent with section
553(b)(3)(B) of the APA, the FDIC has
determined for good cause that general
notice and opportunity for public
comment would be unnecessary.
Therefore, pursuant to 5 U.S.C. 601(2),
the RFA does not apply.
List of Subjects
12 CFR Part 330
Bank deposit insurance, Banks,
Banking, Reporting and recordkeeping
requirements, Savings and loan
associations, Trusts and trustees.
12 CFR Part 370
Banks, Banking, Bank deposit
insurance, Holding companies, National
banks, Reporting and recordkeeping
requirements, Savings associations.
Authority and Issuance
For the reasons set forth in the
preamble above, under the authority of
12 U.S.C. 1821, the Board of Directors
of the Federal Deposit Insurance
Corporation amends chapter III of title
12 of the Code of Federal Regulations as
follows:
PART 330—DEPOSIT INSURANCE
COVERAGE
1. The authority citation for part 330
continues to read as follows:
■
Authority: 12 U.S.C. 1813(l), 1813(m),
1817(i), 1818(q), 1819(a)(Tenth), 1820(f),
1820(g), 1821(a), 1821(d), 1822(c).
§ 330.1
■
[Amended]
2. Remove and reserve § 330.1(s).
§ 330.16
■
[Removed and Reserved]
3. Remove and reserve § 330.16.
PART 370—[Removed and Reserved]
■
4. Remove and reserve part 370.
Dated at Washington, DC, this 22nd day of
October 2015.
13 12
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15:03 Oct 27, 2015
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15 Public
16 5
PO 00000
Law 96–354 (Sept. 19, 1980).
U.S.C. 601(2).
Frm 00041
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65921
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015–27294 Filed 10–27–15; 8:45 am]
BILLING CODE 6714–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2015–4205; Directorate
Identifier 2015–NM–149–AD; Amendment
39–18301; AD 2015–21–08]
RIN 2120–AA64
Airworthiness Directives; The Boeing
Company Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; request for
comments.
AGENCY:
We are adopting a new
airworthiness directive (AD) for certain
The Boeing Company Model 737–100,
–200, –200C, –300, –400, and –500
series airplanes. This AD requires
repetitive eddy current inspections for
any cracking in the inspar upper skin,
and related investigative and corrective
actions if necessary. This AD was
prompted by a report that an operator
discovered a crack in a certain section
of the inspar upper skin, just forward of
the rear spar on the right wing. We are
issuing this AD to detect and correct any
cracking in the inspar upper skin and
rear spar upper chord, which could
result in the inability of the structure to
carry limit load, or result in a fuel leak,
which could prevent continued safe
flight and landing.
DATES: This AD is effective November
12, 2015.
The Director of the Federal Register
approved the incorporation by reference
of a certain publication listed in this AD
as of November 12, 2015.
The Director of the Federal Register
approved the incorporation by reference
of a certain other publication listed in
this AD as of April 9, 2014 (79 FR
12368, March 5, 2014). We must receive
comments on this AD by December 14,
2015.
ADDRESSES: You may send comments,
using the procedures found in 14 CFR
11.43 and 11.45, by any of the following
methods:
• Federal eRulemaking Portal: Go to
https://www.regulations.gov. Follow the
instructions for submitting comments.
• Fax: 202–493–2251.
SUMMARY:
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]]>Agencies
[Federal Register Volume 80, Number 208 (Wednesday, October 28, 2015)]
[Rules and Regulations]
[Pages 65919-65921]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27294]
-----------------------------------------------------------------------
FEDERAL DEPOSIT INSURANCE CORPORATION
12 CFR Parts 330 and 370
RIN 3064-AE34
Temporary Liquidity Guarantee Program; Unlimited Deposit
Insurance Coverage for Noninterest-Bearing Transaction Accounts
AGENCY: Federal Deposit Insurance Corporation (FDIC).
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The FDIC is rescinding and removing its regulations
implementing the Temporary Liquidity Guarantee Program (TLGP) and the
unlimited deposit insurance coverage for ``noninterest-bearing
transaction accounts'' provided by section 343 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act, and related definitions.
Because these programs have expired by their terms, the regulations
implementing them are unnecessary and obsolete.
DATES: Effective Date: The final rule is effective October 28, 2015.
FOR FURTHER INFORMATION CONTACT: Schuyler Livingston, Economic Analyst,
Division of Insurance and Research (202) 898-6830 or
slivingston@fdic.gov; Marc Steckel, Deputy Director, Division of
Resolutions and Receiverships (571) 858-8224 or msteckel@fdic.gov; Lisa
D. Arquette, Associate Director, Division of Risk Management
Supervision (202) 898-8633 or larquette@fdic.gov; or Gregory S. Feder,
Counsel, Legal Division (202) 898-8724 or gfeder@fdic.gov.
SUPPLEMENTARY INFORMATION:
I. Background
In October 2008, acting in response to unprecedented disruptions to
the nation's credit markets and pursuant to section 13(c)(4)(G) of the
Federal Deposit Insurance Act (FDI Act),\1\ the Board of Directors of
the Federal Deposit Insurance Corporation (FDIC) and the Board of
Governors of the Federal Reserve System (FRB) recommended that the
Secretary of the Treasury, following consultation with the President,
make a determination that systemic risk existed in the nation's
financial system. After the Treasury Secretary's determination of
systemic risk, the FDIC was authorized to take action or to provide
assistance as necessary to avoid or to mitigate the effects of the
perceived risks to the financial system. Pursuant to this
[[Page 65920]]
authority, the FDIC issued part 370 of Title 12 of the Code of Federal
Regulations (part 370) which established the TLGP. The TLGP was
composed of two distinct components: The Debt Guarantee Program (DGP)
and the Transaction Account Guarantee Program (TAGP). The DGP provided
a temporary FDIC guarantee for all newly issued senior unsecured debt
issued by participating entities up to prescribed limits; the TAGP
provided a temporary FDIC guarantee for all funds held at FDIC-insured
depository institutions in noninterest-bearing transaction accounts
above the existing deposit insurance limit.
---------------------------------------------------------------------------
\1\ 12 U.S.C. 1823(c)(4)(G).
---------------------------------------------------------------------------
From its inception, the TLGP was intended to be a time-limited
program. The FDIC's initial guarantee under the DGP expired on the
earlier of the maturity date of the debt or June 30, 2012, for newly
issued senior unsecured debt issued through June 30, 2009, by entities
that opted into the DGP.\2\ To reduce market disruption at the
conclusion of the DGP and to facilitate the orderly phase-out of the
program, in 2009, the FDIC extended the issuance period for senior
unsecured debt through October 31, 2009, and similarly extended the
FDIC's guarantee on such obligations to the earlier of the stated
maturity date of the debt or December 31, 2012.\3\ Later in 2009, the
FDIC established a limited six-month emergency guarantee facility,
available to participating entities on an application basis. Although
no entities applied to avail themselves of the FDIC's emergency
guarantee facility, the FDIC would have permitted approved entities to
issue FDIC-guaranteed debt through April 30, 2010, for which the FDIC's
guarantee would have expired on the earlier of the stated maturity date
of the debt or December 31, 2012.\4\
---------------------------------------------------------------------------
\2\ 73 FR 72244 (Nov. 26, 2008).
\3\ 74 FR 26521 (Jun. 3, 2009).
\4\ 74 FR 54743 (Oct. 23, 2009).
---------------------------------------------------------------------------
Under the TAGP, the FDIC's guarantee of all noninterest-bearing
transaction accounts originally was scheduled to expire on December 31,
2009.\5\ In recognition of the continuing effects of economic turmoil,
the FDIC twice extended the expiration deadline for the TAGP: First,
until June 30, 2010,\6\ and, later, until December 31, 2010, ``unless
the Board, for good cause, extends the program for an additional period
of time not to exceed one year.'' \7\ On September 30, 2010, the FDIC
indicated that the TAGP would not be extended beyond December 31,
2010.\8\
---------------------------------------------------------------------------
\5\ 73 FR 72244 (Nov. 26, 2008).
\6\ 74 FR 45093 (Sept. 1, 2009).
\7\ 75 FR 36506 (Jun. 28, 2010).
\8\ 75 FR 60341 (Sept. 30, 2010).
---------------------------------------------------------------------------
Over the course of the DGP's existence, 122 entities issued TLGP
debt. At its peak, the DGP guaranteed $345.8 billion of outstanding
debt. The DGP guarantee on all TLGP debt that had not already matured
expired on December 31, 2012. Therefore, at the end of 2012, no debt
guaranteed by the FDIC under the DGP remained.
The FDIC collected $10.4 billion in fees and surcharges under the
DGP. As of December 31, 2012, the FDIC had paid $153 million in losses
resulting from six participating entities defaulting on debt issued
under the DGP. The majority of these losses ($113 million) arose from
banks with outstanding DGP notes that failed in 2011 and were placed
into receivership.
The FDIC collected $1.2 billion in fees under the TAGP. Cumulative
estimated TAGP losses on failures as of December 31, 2012, totaled $2.1
billion.
Overall, TLGP fees exceeded the losses from the program. From the
inception of the TLGP, it was the FDIC's policy to recognize revenue to
the Deposit Insurance Fund (DIF) for any portion of guarantee fees in
excess of amounts needed to cover potential losses upon expiration of
the TLGP guarantee period (December 31, 2012) or earlier. In total,
$9.3 billion in TLGP fees were deposited into the DIF.
On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer
Protection Act (Dodd-Frank Act) was enacted.\9\ Section 343 of the
Dodd-Frank Act provided for unlimited deposit insurance for
noninterest-bearing transaction accounts for two years starting
December 31, 2010, after which, by its terms, the section was repealed.
This unlimited coverage for ``noninterest-bearing transaction
accounts'' as defined in the Dodd-Frank Act was similar to, but not
identical to, the protection provided for such account owners under the
FDIC's TAGP. On November 15, 2010, the FDIC published a final rule in
the Federal Register amending 12 CFR part 330 to implement section 343
of the Dodd-Frank Act, providing for unlimited deposit insurance for
``noninterest-bearing transaction accounts'' for two years starting
December 31, 2010.\10\ The final rule added a new definition of
noninterest-bearing transaction account to the FDIC's regulations at
Sec. 330.1(r) (now Sec. 330.1(s)). The final rule also added new
Sec. 330.16 to provide for full insurance coverage, regardless of the
standard maximum deposit insurance limit, to noninterest-bearing
transaction accounts from December 31, 2010, through December 31, 2012.
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\9\ Public Law 111-203 (July 21, 2010).
\10\ 75 FR 69577 (Nov. 15, 2010) (adding 12 CFR 303.1(r),
303.16). The FDIC used its proposed rule implementing the Dodd-Frank
coverage for noninterest-bearing transaction accounts as a vehicle
for the FDIC's Board of Directors to announce that it would not
continue the TAGP beyond December 31, 2010. 75 FR 60341(Sept. 30,
2010).
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On January 27, 2011, the FDIC published a final rule in the Federal
Register (1) amending the definition of ``noninterest-bearing
transaction account'' to include IOLTA accounts; (2) requiring that
notice be posted regarding the scope of coverage of the Dodd-Frank Act
transaction account guarantee program at the bank's main office, in
branch lobbies, and on its Web site; and (3) requiring that notice be
provided to holders of NOW accounts that such accounts are no longer
covered.\11\
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\11\ 76 FR 4813 (Jan. 27, 2011) (amending 12 CFR 303.1(r),
303.16).
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The expiration dates for the DGP and the TAGP were stated clearly
in the FDIC's TLGP regulation. Because December 31, 2010 (the
expiration date of the TAGP) and December 31, 2012 (the expiration of
the DGP) have passed, all of the FDIC's obligations under either
component of the TLGP have expired. With the expiration of both the DGP
and the TAGP, part 370 is unnecessary and obsolete.
Similarly, Sec. 330.16(a) clearly provides that the unlimited
deposit insurance for noninterest-bearing transaction accounts under
the Dodd-Frank Act expired on December 31, 2012. After that date, by
its terms, the section was repealed. As such, Sec. 330.16 and the
definition of ``noninterest-bearing transaction account'' at Sec.
330.1(s) are unnecessary and obsolete.
II. The Final Rule
For the reasons set forth in the preceding section, the FDIC is
issuing the final rule, which will rescind part 370, Sec. 330.16, and
Sec. 330.1(s) and remove them from the FDIC's regulations.
III. Regulatory Analysis
A. Administrative Procedure Act
1. Notice and Opportunity for Public Comment
Pursuant to section 553(b)(3)(B) of the Administrative Procedure
Act (APA), providing notice and an opportunity for public comment is
not required prior to the issuance of a substantive rule if an agency
for good cause finds that notice and public procedure thereon are
impracticable, unnecessary, or contrary to the public interest. In this
instance,
[[Page 65921]]
the FDIC invokes this good cause exception to Section 553 of the APA.
The FDIC believes that good cause exists for issuing a final rule
without providing notice and an opportunity for public comment because
such an exercise is ``unnecessary.'' By the express terms of both
regulations, the underlying programs described in part 370 and Sec.
330.16 have expired, and, because of that, the rescission of these
rules can have no effect on the banking industry or the public.
Moreover, the rescission of part 370, Sec. 330.1(s), and Sec. 330.16
is not ``substantive'' as the programs that these regulations
implemented have expired and they affect no substantive rights or
obligations.
2. Effective Date
In addition, section 553(d)(3) of the APA provides that an agency,
for good cause found and published with the rule, does not have to
comply with the requirement that a substantive rule be published not
less than 30 days before its effective date. The FDIC invokes this good
cause exception because the rescission of part 370, Sec. 330.1(s), and
Sec. 330.16 is not ``substantive'' as the programs that these
regulations implemented have expired and they affect no substantive
rights or obligations.\12\
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\12\ 5 U.S.C. 553(d)(3).
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B. The Economic Growth and Regulatory Paperwork Reduction Act
Under section 2222 of the Economic Growth and Regulatory Paperwork
Reduction Act of 1996 (EGRPRA),\13\ 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. The FDIC completed the last comprehensive review of its
regulations under EGRPRA in 2006 and has commenced the next decennial
review. Rescission of part 370 and Sec. 330.16 is consistent with the
required regulatory response to the EGRPRA review process: To eliminate
unnecessary regulations to the extent such action is appropriate.
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\13\ 12 U.S.C. 3311.
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C. 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).\14\ As required by law, the FDIC will file the appropriate
reports with Congress and the General Accounting Office so that the
Final Rule may be reviewed.
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\14\ Public Law 104-121 (Mar. 29, 1996), as amended by Public
Law 110-28 (May 25, 2007).
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D. Paperwork Reduction Act
Existing collections of information shall be discontinued or
modified, as appropriate, to the extent that this rule obviates or
alters any collection of information.
E. Regulatory Flexibility Act
The Regulatory Flexibility Act \15\ (RFA) applies only to rules for
which an agency publishes a general notice of proposed rulemaking
pursuant to 5 U.S.C. 553(b), or any other law.\16\ As discussed above,
consistent with section 553(b)(3)(B) of the APA, the FDIC has
determined for good cause that general notice and opportunity for
public comment would be unnecessary. Therefore, pursuant to 5 U.S.C.
601(2), the RFA does not apply.
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\15\ Public Law 96-354 (Sept. 19, 1980).
\16\ 5 U.S.C. 601(2).
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List of Subjects
12 CFR Part 330
Bank deposit insurance, Banks, Banking, Reporting and recordkeeping
requirements, Savings and loan associations, Trusts and trustees.
12 CFR Part 370
Banks, Banking, Bank deposit insurance, Holding companies, National
banks, Reporting and recordkeeping requirements, Savings associations.
Authority and Issuance
For the reasons set forth in the preamble above, under the
authority of 12 U.S.C. 1821, the Board of Directors of the Federal
Deposit Insurance Corporation amends chapter III of title 12 of the
Code of Federal Regulations as follows:
PART 330--DEPOSIT INSURANCE COVERAGE
0
1. The authority citation for part 330 continues to read as follows:
Authority: 12 U.S.C. 1813(l), 1813(m), 1817(i), 1818(q),
1819(a)(Tenth), 1820(f), 1820(g), 1821(a), 1821(d), 1822(c).
Sec. 330.1 [Amended]
0
2. Remove and reserve Sec. 330.1(s).
Sec. 330.16 [Removed and Reserved]
0
3. Remove and reserve Sec. 330.16.
PART 370--[Removed and Reserved]
0
4. Remove and reserve part 370.
Dated at Washington, DC, this 22nd day of October 2015.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2015-27294 Filed 10-27-15; 8:45 am]
BILLING CODE 6714-01-P
