Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company, 15474 [2020-05535]
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15474
Federal Register / Vol. 85, No. 53 / Wednesday, March 18, 2020 / Notices
The application of the LER criteria should,
among other things, ensure that the
allocation of activities across the firm’s U.S.
branches and U.S. non-branch material
entities support the firm’s U.S. resolution
strategy and minimize risk to U.S. financial
stability in the event of resolution.
Moreover, LER works with other
components to improve resolvability. For
example, with regard to shared services the
firm should identify all shared services that
support identified critical operations,
maintain a mapping of how/where these
services support core business lines and
identified critical operations, and include
this mapping into the legal rationalization
criteria and implementation efforts.
jbell on DSKJLSW7X2PROD with NOTICES
Derivatives and Trading Activities
To the extent relevant, the derivatives and
trading FAQs have been consolidated into
the updated section of the Proposed
Guidance.
Legal
LEG 1. Support Within the United States
Q. Could the Agencies clarify what further
legal analysis would be expected regarding
the impact of potential state law and
bankruptcy law challenges and mitigants to
the planned provision of Support?
A. The firms should address developments
from the firm’s own analysis of potential
legal challenges regarding the Support and
should also address any additional potential
legal challenges identified by the Agencies in
the Support within the United States section
of the Proposed Guidance. A legal analysis
should include a detailed discussion of the
relevant facts, legal challenges, and Federal
or State law and precedent. The analysis also
should evaluate in detail the legal challenges
identified in the Support within the United
States section of the Proposed Guidance, any
other legal challenges identified by the firm,
and the efficacy of potential mitigants to
those challenges. Firms should identify each
factual assumption underlying their legal
analyses and discuss how the analyses and
mitigants would change if the assumption
were not to hold. Moreover, the analysis need
not take the form of a legal opinion.
LEG 2. Contractually Binding Mechanisms
The Proposed Guidance states that the
legal analysis described under the heading
‘‘Support Within the United States’’ should
include mitigants to the potential challenges
to the planned Support and that the plan
should identify the mitigant(s) to such
challenges that the firm considers most
effective. The Proposed Guidance does not
specifically reference consideration of a
contractually binding mechanism. However,
the following questions and answers may be
useful to a firm that chooses to consider a
contractually binding mechanism as a
mitigant to the potential challenges to the
planned Support.
Q1. Do the Agencies have any preference
as to whether capital is down-streamed to
key subsidiaries (including an IDI subsidiary)
in the form of capital contributions vs.
forgiveness of debt?
A1. No. The Agencies do not have a
preference as to the form of capital
contribution or liquidity support.
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Q2. Should a contractually binding
mechanism relate to the provision of capital
or liquidity? What classes of assets would be
deemed to provide capital vs. liquidity?
A2. Contractually binding mechanism is a
generic term and includes the downstreaming of capital and/or liquidity as
contemplated by the U.S. resolution strategy.
Furthermore, it is up to the firm, as informed
by any relevant guidance of the Agencies, to
identify what assets would satisfy a U.S.
affiliate’s need for capital and/or liquidity.
Q3. Is there a minimum acceptable
duration for a contractually binding
mechanism? Would an ‘‘evergreen’’
arrangement, renewable on a periodic basis
(and with notice to the Agencies), be
acceptable?
A3. To the extent a firm utilizes a
contractually binding mechanism, such
mechanism, including its duration, should be
appropriate for the firm’s U.S. resolution
strategy, including adequately addressing
relevant financial, operational, and legal
requirements and challenges.
Q4. Not consolidated.
Q5. Not consolidated.
Q6. The firm may need to amend its
contractually binding mechanism from time
to time resulting potentially from changes in
relevant law, new or different regulatory
expectations, etc. Is a firm able to do this as
long as there is no undue risk to the
enforceability (e.g., no signs of financial
stress sufficient to unduly threaten the
agreement’s enforceability as a result of
fraudulent transfer)?
A6. Yes, however the Agencies should be
informed of the proposed duration of the
agreement, as well as any terms and
conditions on renewal and/or amendment.
Any amendments should be identified and
discussed as part of the firm’s next U.S.
resolution plan submission.
Q7. Not consolidated.
Q8. Should firms include a formal
regulatory trigger by which the Agencies can
directly trigger a contractually binding
mechanism?
A8. No
General
None of the general FAQs were
consolidated.
By order of the Board of Governors of the
Federal Reserve System, March 11, 2020.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
Federal Deposit Insurance Corporation.
By order of the Board of Directors.
Dated at Washington, DC, on March 5,
2020.
Annmarie H. Boyd,
Assistant Executive Secretary.
[FR Doc. 2020–05513 Filed 3–17–20; 8:45 am]
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FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
The notificants listed below have
applied under the Change in Bank
Control Act (Act) (12 U.S.C. 1817(j)) and
§ 225.41 of the Board’s Regulation Y (12
CFR 225.41) to acquire shares of a bank
or bank holding company. The factors
that are considered in acting on the
applications are set forth in paragraph 7
of the Act (12 U.S.C. 1817(j)(7)).
The applications listed below, as well
as other related filings required by the
Board, if any, are available for
immediate inspection at the Federal
Reserve Bank indicated. The
applications will also be available for
inspection at the offices of the Board of
Governors. Interested persons may
express their views in writing on the
standards enumerated in paragraph 7 of
the Act.
Comments regarding each of these
applications must be received at the
Reserve Bank indicated or the offices of
the Board of Governors, Ann E.
Misback, Secretary of the Board, 20th
and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than April 1, 2020.
A. Federal Reserve Bank of San
Francisco (Gerald C. Tsai, Director,
Applications and Enforcement) 101
Market Street, San Francisco, California
94105–1579:
1. The Rahman Family Trust Dated
August 7, 1997, Altadena, California,
Yahia Abdul Rahman and Madga
Rahman, Trustees, both of Altadena,
California; American Finance House
Lariba, Whittier, California; Maie St.
John, Los Angeles, California; Richard
St. John, Los Angeles, California; and
Marwa Abdul Rahman, Altadena,
California; to retain voting shares of
Greater Pacific Bancshares, and thereby
indirectly retain shares of Bank of
Whittier, National Association, both of
Whittier, California.
2. Sang Young Lee and Chun Young
Lee, both of La Canada, California, and
Lee’s Gold & Diamond Import, Inc., Los
Angeles, California; to acquire the
voting shares of PCB Bancorp and
thereby indirectly acquire shares of
Pacific City Bank, both of Los Angeles,
California.
Board of Governors of the Federal Reserve
System, March 12, 2020.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2020–05535 Filed 3–17–20; 8:45 am]
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[Federal Register Volume 85, Number 53 (Wednesday, March 18, 2020)]
[Notices]
[Page 15474]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05535]
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FEDERAL RESERVE SYSTEM
Change in Bank Control Notices; Acquisitions of Shares of a Bank
or Bank Holding Company
The notificants listed below have applied under the Change in Bank
Control Act (Act) (12 U.S.C. 1817(j)) and Sec. 225.41 of the Board's
Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank
holding company. The factors that are considered in acting on the
applications are set forth in paragraph 7 of the Act (12 U.S.C.
1817(j)(7)).
The applications listed below, as well as other related filings
required by the Board, if any, are available for immediate inspection
at the Federal Reserve Bank indicated. The applications will also be
available for inspection at the offices of the Board of Governors.
Interested persons may express their views in writing on the standards
enumerated in paragraph 7 of the Act.
Comments regarding each of these applications must be received at
the Reserve Bank indicated or the offices of the Board of Governors,
Ann E. Misback, Secretary of the Board, 20th and Constitution Avenue
NW, Washington, DC 20551-0001, not later than April 1, 2020.
A. Federal Reserve Bank of San Francisco (Gerald C. Tsai, Director,
Applications and Enforcement) 101 Market Street, San Francisco,
California 94105-1579:
1. The Rahman Family Trust Dated August 7, 1997, Altadena,
California, Yahia Abdul Rahman and Madga Rahman, Trustees, both of
Altadena, California; American Finance House Lariba, Whittier,
California; Maie St. John, Los Angeles, California; Richard St. John,
Los Angeles, California; and Marwa Abdul Rahman, Altadena, California;
to retain voting shares of Greater Pacific Bancshares, and thereby
indirectly retain shares of Bank of Whittier, National Association,
both of Whittier, California.
2. Sang Young Lee and Chun Young Lee, both of La Canada,
California, and Lee's Gold & Diamond Import, Inc., Los Angeles,
California; to acquire the voting shares of PCB Bancorp and thereby
indirectly acquire shares of Pacific City Bank, both of Los Angeles,
California.
Board of Governors of the Federal Reserve System, March 12,
2020.
Yao-Chin Chao,
Assistant Secretary of the Board.
[FR Doc. 2020-05535 Filed 3-17-20; 8:45 am]
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