Corporation To Do Business Under Section 25A of the Federal Reserve Act, 86566 [2020-28854]
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Federal Register / Vol. 85, No. 250 / Wednesday, December 30, 2020 / Notices
Seed Capital Invested in Mutual Funds
The Board did not temporarily revise
or propose to revise the reporting of
seed capital invested in mutual funds.
The current FR Y–14Q, Schedule F
(Trading) instructions require firms to
report seed capital invested in mutual
funds as private equity exposures. One
commenter noted that this treatment
may subject firms to unfavorable
stressed losses, as the underlying
investments of seed capital invested in
mutual funds are in liquid, marketable
securities across multiple asset classes,
including fixed income and equity.
Given the liquid, marketable nature of
these underlying investments, the
commenter recommended that these
exposures should not be reported as
private equity exposures, but rather
reported within the respective subschedules of Schedule F, according to
the underlying exposure.
The Board intends to consider
revising the reporting of seed capital
invested in mutual funds as part of a
future notice.
Legal authorization and
confidentiality: The Board has the
authority to require BHCs to file the FR
Y–14 reports pursuant to section 5(c) of
the Bank Holding Company Act (‘‘BHC
Act’’), 12 U.S.C. 1844(c), and pursuant
to section 165(i) of the Dodd-Frank Wall
Street Reform and Consumer Protection
Act (Dodd-Frank Act), 12 U.S.C. 5365(i),
as amended by section 401(a) and (e) of
the Economic Growth, Regulatory
Relief, and Consumer Protection Act
(EGRRCPA).13 The Board has authority
to require SLHCs to file the FR Y–14
reports pursuant to section 10(b) of the
Home Owners’ Loan Act (12 U.S.C.
1467a(b)), as amended by section 369(8)
and 604(h)(2) of the Dodd-Frank Act.
Lastly, the Board has authority to
require U.S. IHCs of FBOs to file the FR
Y–14 reports pursuant to section 5 of
the BHC Act, as well as pursuant to
sections 102(a)(1) and 165 of the DoddFrank Act, 12 U.S.C. 5311(a)(1) and
5365.14 In addition, section 401(g) of
13 Public Law 115–174, Title IV 401(a) and (e),
132 Stat. 1296, 1356–59 (2018).
14 Section 165(b)(2) of the Dodd-Frank Act, 12
U.S.C. 5365(b)(2), refers to ‘‘foreign-based bank
holding company.’’ Section 102(a)(1) of the DoddFrank Act, 12 U.S.C. 5311(a)(1), defines ‘‘bank
holding company’’ for purposes of Title I of the
Dodd-Frank Act to include foreign banking
organizations that are treated as bank holding
companies under section 8(a) of the International
Banking Act of 1978, 12 U.S.C. 3106(a). The Board
has required, pursuant to section 165(b)(1)(B)(iv) of
the Dodd-Frank Act, 12 U.S.C. 5365(b)(1)(B)(iv),
certain foreign banking organizations subject to
section 165 of the Dodd-Frank Act to form U.S.
intermediate holding companies. Accordingly, the
parent foreign-based organization of a U.S. IHC is
treated as a BHC for purposes of the BHC Act and
section 165 of the Dodd-Frank Act. Because Section
VerDate Sep<11>2014
17:47 Dec 29, 2020
Jkt 253001
EGRRCPA, 12 U.S.C. 5365 note,
provides that the Board has the
authority to establish enhanced
prudential standards for foreign banking
organizations with total consolidated
assets of $100 billion or more, and
clarifies that nothing in section 401
‘‘shall be construed to affect the legal
effect of the final rule of the Board . . .
entitled ‘Enhanced Prudential Standard
for [BHCs] and Foreign Banking
Organizations’ (79 FR 17240 (March 27,
2014)), as applied to foreign banking
organizations with total consolidated
assets equal to or greater than $100
million.’’ 15 The FR Y–14 reports are
mandatory. The information collected in
the FR Y–14 reports is collected as part
of the Board’s supervisory process, and
therefore, such information is afforded
confidential treatment pursuant to
exemption 8 of the Freedom of
Information Act (FOIA), 5 U.S.C.
552(b)(8). In addition, confidential
commercial or financial information,
which a submitter actually and
customarily treats as private, and which
has been provided pursuant to an
express assurance of confidentiality by
the Board, is considered exempt from
disclosure under exemption 4 of the
FOIA, 5 U.S.C. 552(b)(4).16
Board of Governors of the Federal Reserve
System, December 22, 2020.
Margaret Shanks,
Deputy Secretary of the Board.
[FR Doc. 2020–28788 Filed 12–29–20; 8:45 am]
BILLING CODE 6210–01–P
5(c) of the BHC Act authorizes the Board to require
reports from subsidiaries of BHCs, section 5(c)
provides additional authority to require U.S. IHCs
to report the information contained in the FR Y–
14 reports.
15 The Board’s Final Rule referenced in section
401(g) of EGRRCPA specifically stated that the
Board would require IHCs to file the FR Y–14
reports. See 79 FR 17240, 17304 (March 27, 2014).
16 Please note that the Board publishes a summary
of the results of the Board’s CCAR testing pursuant
to 12 CFR 225.8(f)(2)(v), and publishes a summary
of the results of the Board’s DFAST stress testing
pursuant to 12 CFR 252.46(b) and 12 CFR 238.134,
which includes aggregate data. In addition, under
the Board’s regulations, covered companies must
also publicly disclose a summary of the results of
the Board’s DFAST stress testing. See 12 CFR
252.58; 12 CFR 238.146. The public disclosure
requirement contained in 12 CFR 252.58 for
covered BHCs and covered IHCs is separately
accounted for by the Board in the Paperwork
Reduction Act clearance for FR YY (OMB No. 7100–
0350) and the public disclosure requirement for
covered SLHCs is separately accounted for in by the
Board in the Paperwork Reduction Act clearance for
FR LL (OMB No. 7100–0380).
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FEDERAL RESERVE SYSTEM
Corporation To Do Business Under
Section 25A of the Federal Reserve Act
The companies listed in this notice
have applied to the Board for approval,
pursuant to Section 25A of the Federal
Reserve Act (Edge Corporation) (12
U.S.C. 611 et seq.), and all other
applicable statutes and regulations to
establish an Edge Corporation. The Edge
Corporation will operate as a subsidiary
of the applicant, First-Citizens Bank &
Trust Company, Raleigh, North
Carolina. The factors that are to be
considered in acting on the application
are set forth in the Board’s Regulation K
(12 CFR 211.5).
The public portions of 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(s) indicated below and at
the offices of the Board of Governors.
This information may also be obtained
on an expedited basis, upon request, by
contacting the appropriate Federal
Reserve Bank and from the Board’s
Freedom of Information Office at
https://www.federalreserve.gov/foia/
request.htm. Interested persons may
express their views in writing on the
standards enumerated in Section 25A of
the Federal Reserve 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
Street and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than January 14, 2021.
A. Federal Reserve Bank of Richmond
(Adam M. Drimer, Assistant Vice
President) 701 East Byrd Street,
Richmond, Virginia 23219. Comments
can also be sent electronically to or
Comments.applications@rich.frb.org:
1. First-Citizens Bank & Trust
Company, Raleigh, North Carolina; to
establish FC International, Inc., Raleigh,
North Carolina, as an Edge Corporation.
Board of Governors of the Federal Reserve
System, December 23, 2020.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
[FR Doc. 2020–28854 Filed 12–29–20; 8:45 am]
BILLING CODE 6210–01–P
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[Federal Register Volume 85, Number 250 (Wednesday, December 30, 2020)]
[Notices]
[Page 86566]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28854]
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FEDERAL RESERVE SYSTEM
Corporation To Do Business Under Section 25A of the Federal
Reserve Act
The companies listed in this notice have applied to the Board for
approval, pursuant to Section 25A of the Federal Reserve Act (Edge
Corporation) (12 U.S.C. 611 et seq.), and all other applicable statutes
and regulations to establish an Edge Corporation. The Edge Corporation
will operate as a subsidiary of the applicant, First-Citizens Bank &
Trust Company, Raleigh, North Carolina. The factors that are to be
considered in acting on the application are set forth in the Board's
Regulation K (12 CFR 211.5).
The public portions of 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(s) indicated below and
at the offices of the Board of Governors. This information may also be
obtained on an expedited basis, upon request, by contacting the
appropriate Federal Reserve Bank and from the Board's Freedom of
Information Office at https://www.federalreserve.gov/foia/request.htm.
Interested persons may express their views in writing on the standards
enumerated in Section 25A of the Federal Reserve 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 Street and Constitution
Avenue NW, Washington, DC 20551-0001, not later than January 14, 2021.
A. Federal Reserve Bank of Richmond (Adam M. Drimer, Assistant Vice
President) 701 East Byrd Street, Richmond, Virginia 23219. Comments can
also be sent electronically to or [email protected]:
1. First-Citizens Bank & Trust Company, Raleigh, North Carolina; to
establish FC International, Inc., Raleigh, North Carolina, as an Edge
Corporation.
Board of Governors of the Federal Reserve System, December 23,
2020.
Margaret McCloskey Shanks,
Deputy Secretary of the Board.
[FR Doc. 2020-28854 Filed 12-29-20; 8:45 am]
BILLING CODE 6210-01-P
