Total Loss-Absorbing Capacity, Long-Term Debt, and Clean Holding Company Requirements for Systemically Important U.S. Bank Holding Companies and Intermediate Holding Companies of Systemically Important Foreign Banking Organizations; Regulatory Capital Deduction for Investments in Certain Unsecured Debt of Systemically Important U.S. Bank Holding Companies, 5943 [2016-02113]

Agencies

[Federal Register Volume 81, Number 23 (Thursday, February 4, 2016)]
[Proposed Rules]
[Page 5943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-02113]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 81, No. 23 / Thursday, February 4, 2016 / 
Proposed Rules

[[Page 5943]]



FEDERAL RESERVE SYSTEM

12 CFR Part 217 and 252

[Regulations Q and YY; Docket No. R-1523]
RIN 7100-AE37


Total Loss-Absorbing Capacity, Long-Term Debt, and Clean Holding 
Company Requirements for Systemically Important U.S. Bank Holding 
Companies and Intermediate Holding Companies of Systemically Important 
Foreign Banking Organizations; Regulatory Capital Deduction for 
Investments in Certain Unsecured Debt of Systemically Important U.S. 
Bank Holding Companies

AGENCY: Board of Governors of the Federal Reserve System (Board).

ACTION: Proposed rulemaking; extension of comment period.

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SUMMARY: On November 30, 2015, the Board published in the Federal 
Register a notice of proposed rulemaking inviting public comment on a 
proposed rule to promote financial stability by improving the 
resolvability and resiliency of large, interconnected U.S. bank holding 
companies and the U.S. operations of large, interconnected foreign 
banking organizations pursuant to section 165 of the Dodd-Frank Wall 
Street Reform and Consumer Protection Act (Dodd-Frank Act) and related 
deduction requirements for all banking organizations subject to the 
Board's capital rules.
    Due to the range and complexity of the issues addressed in the 
notice of proposed rulemaking, the Board has determined that an 
extension of the public comment period until February 19, 2016, is 
appropriate. This action will allow interested persons additional time 
to analyze the notice and prepare their comments.

DATES: The comment period for the proposed rule published on November 
30, 2015 (80 FR 74925), is extended. Comments on the proposed rule must 
be received on or before February 19, 2016.

ADDRESSES: You may submit comments by any of the methods identified in 
the notice of proposed rulemaking.\1\ Please submit your comments using 
only one method.
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    \1\ See Total Loss-Absorbing Capacity, Long-Term Debt, and Clean 
Holding Company Requirements for Systemically Important U.S. Bank 
Holding Companies and Intermediate Holding Companies of Systemically 
Important Foreign Banking Organizations; Regulatory Capital 
Deduction for Investments in Certain Unsecured Debt of Systemically 
Important U.S. Bank Holding Companies, 80 FR 74925 (Nov. 30, 2015).

FOR FURTHER INFORMATION CONTACT: Constance M. Horsley, Assistant 
Director, (202) 452-5239, Thomas Boemio, Senior Project Manager, (202) 
452-2982, Juan C. Climent, Manager, (202) 872-7526, Felton Booker, 
Senior Supervisory Financial Analyst, (202) 912-4651, Sean Healey, 
Senior Financial Analyst, (202) 912-4611, or Mark Savignac, Senior 
Financial Analyst, (202) 475-7606, Division of Banking Supervision and 
Regulation; or Laurie Schaffer, Associate General Counsel, (202) 452-
2272, Benjamin McDonough, Special Counsel, (202) 452-2036, Jay Schwarz, 
Senior Counsel, (202) 452-2970, Will Giles, Counsel, (202) 452-3351, 
Mark Buresh, Senior Attorney, (202) 452-5270, or Greg Frischmann, 
Senior Attorney, (202) 452-2803, Legal Division, Board of Governors of 
the Federal Reserve System, 20th and C Streets NW., Washington, DC 
20551. For the hearing impaired only, Telecommunications Device for the 
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Deaf (TDD) users may contact (202) 263-4869.

SUPPLEMENTARY INFORMATION: On November 30, 2015, the Board published in 
the Federal Register a notice of proposed rulemaking inviting public 
comment on a proposed rule to promote financial stability by improving 
the resolvability and resiliency of large, interconnected U.S. bank 
holding companies and the U.S. operations of large, interconnected 
foreign banking organizations pursuant to section 165 of the Dodd-Frank 
Act and related deduction requirements for all banking organizations 
subject to the Board's capital rules. Under the proposed rule, a U.S. 
top-tier bank holding company identified by the Board as a global 
systemically important banking organization (covered BHC) would be 
required to maintain outstanding a minimum amount of loss-absorbing 
instruments, including a minimum amount of unsecured long-term debt, 
and related buffer. Similarly, the proposed rule would require the top-
tier U.S. intermediate holding company of a global systemically 
important foreign banking organization with $50 billion or more in U.S. 
non-branch assets (covered IHC) to maintain outstanding a minimum 
amount of intra-group loss-absorbing instruments, including a minimum 
amount of unsecured long-term debt, and related buffer. The proposed 
rule would also impose restrictions on the other liabilities that a 
covered BHC or covered IHC may have outstanding. Finally, the proposed 
rule would require state member banks, bank holding companies, and 
savings and loan holding companies that are subject to the Board's 
capital rules to apply a regulatory capital deduction treatment to 
their investments in unsecured debt issued by covered BHCs.
    In recognition of the complexities of the issues involved and the 
variety of considerations involved in its impact and implementation, 
the Board requested that commenters respond to numerous questions. The 
proposed rule stated that the public comment period would close on 
February 1, 2016.\2\
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    \2\ Id.
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    The Board has received a request from the public for an extension 
of the comment period to allow for additional time for comments related 
to the provisions of the proposed rule.\3\ The Board believes that the 
additional period for comment will facilitate public comment on the 
questions posed by the Board in the proposed rule. Therefore, the Board 
is extending the end of the comment period for the proposed rule from 
February 1, 2016, to February 19, 2016.
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    \3\ See Comment letter to the Board from the American Bankers 
Association et al. (Jan. 25, 2016).

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, January 29, 2016.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2016-02113 Filed 2-3-16; 8:45 am]
BILLING CODE P