80 FR 38686 - Announcement of Financial Sector Liabilities
FEDERAL RESERVE SYSTEM Federal Register Volume 80, Issue 129 (July 7, 2015)
Federal Register Volume 80, Issue 129 (July 7, 2015)
| Page Range | 38686-38687 | |
| FR Document | 2015-16658 |
[Federal Register Volume 80, Number 129 (Tuesday, July 7, 2015)] [Notices] [Pages 38686-38687] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-16658] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM [Docket No. OP-1516] Announcement of Financial Sector Liabilities Section 622 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, implemented by the Board's Regulation XX, prohibits a merger or acquisition that would result in a financial company that controls more than 10 percent of the aggregate consolidated liabilities of all financial companies (``aggregate financial sector liabilities''). Specifically, an insured depository institution, a bank holding company, a savings and loan holding company, a foreign banking organization, any other company that controls an insured depository institution, and a nonbank financial company designated by the Financial Stability Oversight Council (each, a ``financial company'') is prohibited from merging or consolidating with, acquiring all or substantially all of the assets of, or acquiring control of, another company (``covered acquisition'') if the resulting company's consolidated liabilities would exceed 10 percent of the aggregate financial sector liabilities.\1\ --------------------------------------------------------------------------- \1\ 12 U.S.C. 1852(a)(2), (b). --------------------------------------------------------------------------- Pursuant to Regulation XX, the Federal Reserve will publish the aggregate consolidated liabilities of all financial companies by July 1 of each year. For the first period (July 1, 2015-June 30, 2016), aggregate financial sector liabilities is equal to the financial sector liabilities calculated as of December 31, 2014. For all subsequent periods, aggregate financial sector liabilities will equal the average of the financial sector liabilities as of December 31 of each of the preceding two calendar years. FOR FURTHER INFORMATION CONTACT: Felton Booker, Senior Supervisory Financial Analyst (202) 912-4651; Sean Healey, Senior Financial Analyst, (202) 912-4611; Christine Graham, Counsel, (202) 452-3005; Matthew Suntag, Senior Attorney, (202) 452-3694; for persons who are deaf or hard of hearing, TTY (202) 263-4869. Aggregate Financial Sector Liabilities As of December 31, 2014, aggregate financial sector liabilities is equal to $21,632,232,035,000. This measure is in effect from July 1, 2015 through June 30, 2016. Calculation Methodology Aggregate financial sector liabilities equals the sum of the financial sector liabilities of all financial companies, calculated using the methodology set forth in Regulation XX and summarized below. Financial sector liabilities of a U.S. financial company that was subject to consolidated risk-based capital rules as of December 31, 2014, equals the difference between its risk-weighted assets (as adjusted upward to reflect amounts that are deducted from regulatory capital elements pursuant to the Federal banking agencies' risk-based capital rules) and total regulatory capital, as calculated under the applicable risk-based capital rules. Companies in this category include bank holding companies and insured depository institutions. The Federal Reserve used information collected on the Consolidated Financial Statements for Holding Companies (FR Y-9C) and the Bank Consolidated Reports of Condition and Income (Call Report) to calculate liabilities of these institutions. Financial sector liabilities of a U.S. financial company that was not subject to consolidated risk-based capital rules as of December 31, 2014, equal liabilities calculated in accordance with applicable accounting standards. Companies in this category include savings and loan holding companies, nonbank financial companies supervised by the Board, bank holding companies with total consolidated assets of less than $1 billion, and U.S. depository institution holding companies that are not bank holding companies or savings and loan holding companies. ``Applicable accounting standards'' is defined as GAAP, or such other accounting standard or method of estimation that the Board determines is appropriate.\2\ The Federal Reserve used information collected on the FR Y-9C, the Parent Company Only Financial Statements for Small Holding Companies (FR Y-9SP), and the Financial Company Report of Consolidated Liabilities (FR XX-1) to calculate liabilities of these institutions. --------------------------------------------------------------------------- \2\ A financial company may request to use an accounting standard or method of estimation other than GAAP if it does not calculate its total consolidated assets or liabilities under GAAP for any regulatory purpose (including compliance with applicable securities laws). 12 CFR 251.3(e). --------------------------------------------------------------------------- Section 622 provides that the financial sector liabilities of a ``foreign financial company'' equal the risk-weighted assets and regulatory capital attributable to the company's ``U.S. operations.'' Under Regulation XX, financial sector liabilities of a foreign banking organization's U.S. operations are calculated using the risk-weighted asset methodology for subsidiaries subject to risk-based capital rules, and applicable accounting standards for all branches, agencies, and nonbank subsidiaries. Financial sector liabilities attributable to the U.S. operations of a foreign financial company that is not a foreign banking organization are calculated in a similar manner to the method described for foreign banking organizations, but liabilities of a U.S. subsidiary not subject to risk-based capital rules are calculated based on the U.S. subsidiary's liabilities under applicable accounting standards. The Federal Reserve used information collected on the Capital and Asset Report for Foreign Banking Organizations (FR Y-7Q) and the FR XX-1 to calculate liabilities of these institutions. [[Page 38687]] The Board granted requests from ten financial companies to use an accounting standard or method of estimation other than GAAP to calculate liabilities. Nine of the companies were insurance companies that report financial information under Statutory Accounting Principles (``SAP''), and one was a foreign company that controls a U.S. industrial loan company that reports financial information under International Financial Reporting Standards (``IFRS''). For the insurance companies, the Board approved a method of estimation that was based on line items from SAP reports, with adjustments to reflect certain differences in accounting treatment between GAAP and SAP. For the foreign company, the Board approved the use of IFRS. By order of the Board of Governors of the Federal Reserve System, acting through the Director of the Division Banking Supervision and Regulation under delegated authority, July 1, 2015. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2015-16658 Filed 7-6-15; 8:45 am] BILLING CODE 6210-01-P
![38686 Federal Register / Vol. 80, No. 129 / Tuesday, July 7, 2015 / Notices
FEDERAL DEPOSIT INSURANCE company, a foreign banking Reserve used information collected on
CORPORATION organization, any other company that the Consolidated Financial Statements
controls an insured depository for Holding Companies (FR Y–9C) and
Notice to All Interested Parties of the institution, and a nonbank financial the Bank Consolidated Reports of
Termination of the Receivership of company designated by the Financial Condition and Income (Call Report) to
10108, First Coweta Bank, Newnan, GA Stability Oversight Council (each, a calculate liabilities of these institutions.
‘‘financial company’’) is prohibited from Financial sector liabilities of a U.S.
Notice is hereby given that the Federal merging or consolidating with, financial company that was not subject
Deposit Insurance Corporation (‘‘FDIC’’) acquiring all or substantially all of the to consolidated risk-based capital rules
as Receiver for First Coweta Bank, (‘‘the assets of, or acquiring control of, as of December 31, 2014, equal
Receiver’’) intends to terminate its another company (‘‘covered liabilities calculated in accordance with
receivership for said institution. The acquisition’’) if the resulting company’s applicable accounting standards.
FDIC was appointed receiver of First consolidated liabilities would exceed 10 Companies in this category include
Coweta Bank on August 21, 2009. The percent of the aggregate financial sector savings and loan holding companies,
liquidation of the receivership assets liabilities.1 nonbank financial companies
has been completed. To the extent Pursuant to Regulation XX, the supervised by the Board, bank holding
permitted by available funds and in Federal Reserve will publish the companies with total consolidated
accordance with law, the Receiver will aggregate consolidated liabilities of all assets of less than $1 billion, and U.S.
be making a final dividend payment to financial companies by July 1 of each depository institution holding
proven creditors. year. For the first period (July 1, 2015– companies that are not bank holding
Based upon the foregoing, the June 30, 2016), aggregate financial sector companies or savings and loan holding
Receiver has determined that the liabilities is equal to the financial sector companies. ‘‘Applicable accounting
continued existence of the receivership liabilities calculated as of December 31, standards’’ is defined as GAAP, or such
will serve no useful purpose. 2014. For all subsequent periods, other accounting standard or method of
Consequently, notice is given that the aggregate financial sector liabilities will estimation that the Board determines is
receivership shall be terminated, to be equal the average of the financial sector appropriate.2 The Federal Reserve used
effective no sooner than thirty days after liabilities as of December 31 of each of information collected on the FR Y–9C,
the date of this Notice. If any person the preceding two calendar years. the Parent Company Only Financial
wishes to comment concerning the FOR FURTHER INFORMATION CONTACT: Statements for Small Holding
termination of the receivership, such Felton Booker, Senior Supervisory Companies (FR Y–9SP), and the
comment must be made in writing and Financial Analyst (202) 912–4651; Sean Financial Company Report of
sent within thirty days of the date of Healey, Senior Financial Analyst, (202) Consolidated Liabilities (FR XX–1) to
this Notice to: Federal Deposit 912–4611; Christine Graham, Counsel, calculate liabilities of these institutions.
Insurance Corporation, Division of (202) 452–3005; Matthew Suntag, Senior Section 622 provides that the
Resolutions and Receiverships, Attorney, (202) 452–3694; for persons financial sector liabilities of a ‘‘foreign
Attention: Receivership Oversight who are deaf or hard of hearing, TTY financial company’’ equal the risk-
Department 32.1, 1601 Bryan Street, (202) 263–4869. weighted assets and regulatory capital
Dallas, TX 75201. attributable to the company’s ‘‘U.S.
No comments concerning the Aggregate Financial Sector Liabilities operations.’’ Under Regulation XX,
termination of this receivership will be As of December 31, 2014, aggregate financial sector liabilities of a foreign
considered which are not sent within financial sector liabilities is equal to banking organization’s U.S. operations
this time frame. $21,632,232,035,000. This measure is in are calculated using the risk-weighted
Dated: June 30, 2015. effect from July 1, 2015 through June 30, asset methodology for subsidiaries
Federal Deposit Insurance Corporation. 2016. subject to risk-based capital rules, and
applicable accounting standards for all
Robert E. Feldman, Calculation Methodology branches, agencies, and nonbank
Executive Secretary. Aggregate financial sector liabilities subsidiaries. Financial sector liabilities
[FR Doc. 2015–16512 Filed 7–6–15; 8:45 am] equals the sum of the financial sector attributable to the U.S. operations of a
BILLING CODE 6714–01–P liabilities of all financial companies, foreign financial company that is not a
calculated using the methodology set foreign banking organization are
forth in Regulation XX and summarized calculated in a similar manner to the
FEDERAL RESERVE SYSTEM below. method described for foreign banking
Financial sector liabilities of a U.S. organizations, but liabilities of a U.S.
[Docket No. OP–1516]
financial company that was subject to subsidiary not subject to risk-based
Announcement of Financial Sector consolidated risk-based capital rules as capital rules are calculated based on the
Liabilities of December 31, 2014, equals the U.S. subsidiary’s liabilities under
difference between its risk-weighted applicable accounting standards. The
Section 622 of the Dodd-Frank Wall assets (as adjusted upward to reflect Federal Reserve used information
Street Reform and Consumer Protection amounts that are deducted from collected on the Capital and Asset
Act, implemented by the Board’s regulatory capital elements pursuant to Report for Foreign Banking
Regulation XX, prohibits a merger or the Federal banking agencies’ risk-based Organizations (FR Y–7Q) and the FR
acquisition that would result in a capital rules) and total regulatory XX–1 to calculate liabilities of these
tkelley on DSK3SPTVN1PROD with NOTICES
financial company that controls more capital, as calculated under the institutions.
than 10 percent of the aggregate applicable risk-based capital rules.
consolidated liabilities of all financial Companies in this category include 2 A financial company may request to use an
companies (‘‘aggregate financial sector bank holding companies and insured accounting standard or method of estimation other
than GAAP if it does not calculate its total
liabilities’’). Specifically, an insured depository institutions. The Federal consolidated assets or liabilities under GAAP for
depository institution, a bank holding any regulatory purpose (including compliance with
company, a savings and loan holding 1 12 U.S.C. 1852(a)(2), (b). applicable securities laws). 12 CFR 251.3(e).
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![Federal Register / Vol. 80, No. 129 / Tuesday, July 7, 2015 / Notices 38687
The Board granted requests from ten Unless otherwise noted, comments 5610 (Annex D), Washington, DC 20580,
financial companies to use an regarding each of these applications or deliver your comment to the
accounting standard or method of must be received at the Reserve Bank following address: Federal Trade
estimation other than GAAP to calculate indicated or the offices of the Board of Commission, Office of the Secretary,
liabilities. Nine of the companies were Governors not later than July 30, 2015. Constitution Center, 400 7th Street SW.,
insurance companies that report A. Federal Reserve Bank of Dallas 5th Floor, Suite 5610 (Annex D),
financial information under Statutory (Robert L. Triplett III, Senior Vice Washington, DC 20024.
Accounting Principles (‘‘SAP’’), and one President) 2200 North Pearl Street, FOR FURTHER INFORMATION CONTACT: Yan
was a foreign company that controls a Dallas, Texas 75201–2272: Fang, FTC Western Region, (415–848–
U.S. industrial loan company that 1. Friendswood Capital Corporation, 5150), 901 Market Street, Suite 570, San
reports financial information under Houston, Texas; to become a bank Francisco, CA 94103.
International Financial Reporting holding company by the conversion of SUPPLEMENTARY INFORMATION: Pursuant
Standards (‘‘IFRS’’). For the insurance Texan Bank, Houston, Texas, from a to Section 6(f) of the Federal Trade
companies, the Board approved a federal savings bank to a national bank Commission Act, 15 U.S.C. 46(f), and
method of estimation that was based on charter. FTC Rule 2.34, 16 CFR 2.34, notice is
line items from SAP reports, with Board of Governors of the Federal Reserve hereby given that the above-captioned
adjustments to reflect certain differences System, July 1, 2015. consent agreement containing consent
in accounting treatment between GAAP Michael J. Lewandowski, order to cease and desist, having been
and SAP. For the foreign company, the Associate Secretary of the Board. filed with and accepted, subject to final
Board approved the use of IFRS. approval, by the Commission, has been
[FR Doc. 2015–16593 Filed 7–6–15; 8:45 am]
By order of the Board of Governors of the BILLING CODE 6210–01–P
placed on the public record for a period
Federal Reserve System, acting through the of thirty (30) days. The following
Director of the Division Banking Supervision Analysis to Aid Public Comment
and Regulation under delegated authority, describes the terms of the consent
July 1, 2015. FEDERAL TRADE COMMISSION
agreement, and the allegations in the
Robert deV. Frierson, [File No. 152 3069] complaint. An electronic copy of the
Secretary of the Board. full text of the consent agreement
[FR Doc. 2015–16658 Filed 7–6–15; 8:45 am] JS Autoworld, Inc.; Analysis of package can be obtained from the FTC
BILLING CODE 6210–01–P Proposed Consent Order To Aid Public Home Page (for June 29, 2015), on the
Comment World Wide Web at: http://www.ftc.gov/
AGENCY: Federal Trade Commission. os/actions.shtm.
FEDERAL RESERVE SYSTEM You can file a comment online or on
ACTION: Proposed Consent Agreement. paper. For the Commission to consider
Formations of, Acquisitions by, and your comment, we must receive it on or
Mergers of Bank Holding Companies SUMMARY: The consent agreement in this
matter settles alleged violations of before July 29, 2015. Write ‘‘JS
federal law prohibiting unfair or Autoworld, Inc.—Consent Agreement;
The companies listed in this notice File No. 152–3069’’ on your comment.
have applied to the Board for approval, deceptive acts or practices. The attached
Analysis to Aid Public Comment Your comment—including your name
pursuant to the Bank Holding Company and your state—will be placed on the
Act of 1956 (12 U.S.C. 1841 et seq.) describes both the allegations in the
draft complaint and the terms of the public record of this proceeding,
(BHC Act), Regulation Y (12 CFR part including, to the extent practicable, on
225), and all other applicable statutes consent order—embodied in the consent
agreement—that would settle these the public Commission Web site, at
and regulations to become a bank http://www.ftc.gov/os/
holding company and/or to acquire the allegations.
publiccomments.shtm. As a matter of
assets or the ownership of, control of, or DATES: Comments must be received on discretion, the Commission tries to
the power to vote shares of a bank or or before July 29, 2015. remove individuals’ home contact
bank holding company and all of the ADDRESSES: Interested parties may file a information from comments before
banks and nonbanking companies comment at https:// placing them on the Commission Web
owned by the bank holding company, ftcpublic.commentworks.com/ftc/ site.
including the companies listed below. planetnissanconsent online or on paper, Because your comment will be made
The applications listed below, as well by following the instructions in the public, you are solely responsible for
as other related filings required by the Request for Comment part of the making sure that your comment does
Board, are available for immediate SUPPLEMENTARY INFORMATION section not include any sensitive personal
inspection at the Federal Reserve Bank below. Write ‘‘JS Autoworld, Inc.— information, like anyone’s Social
indicated. The applications will also be Consent Agreement; File No. 152–3069’’ Security number, date of birth, driver’s
available for inspection at the offices of on your comment and file your license number or other state
the Board of Governors. Interested comment online at https:// identification number or foreign country
persons may express their views in ftcpublic.commentworks.com/ftc/ equivalent, passport number, financial
writing on the standards enumerated in planetnissanconsent by following the account number, or credit or debit card
the BHC Act (12 U.S.C. 1842(c)). If the instructions on the web-based form. If number. You are also solely responsible
proposal also involves the acquisition of you prefer to file your comment on for making sure that your comment does
tkelley on DSK3SPTVN1PROD with NOTICES
a nonbanking company, the review also paper, write ‘‘JS Autoworld, Inc.— not include any sensitive health
includes whether the acquisition of the Consent Agreement; File No. 152–3069’’ information, like medical records or
nonbanking company complies with the on your comment and on the envelope, other individually identifiable health
standards in section 4 of the BHC Act and mail your comment to the following information. In addition, do not include
(12 U.S.C. 1843). Unless otherwise address: Federal Trade Commission, any ‘‘[t]rade secret or any commercial or
noted, nonbanking activities will be Office of the Secretary, 600 financial information which . . . is
conducted throughout the United States. Pennsylvania Avenue NW., Suite CC– privileged or confidential,’’ as discussed
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Document Created: 2015-12-15 13:27:23
Document Modified: 2015-12-15 13:27:23
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Contact | Felton Booker, Senior Supervisory Financial Analyst (202) 912-4651; Sean Healey, Senior Financial Analyst, (202) 912-4611; Christine Graham, Counsel, (202) 452-3005; Matthew Suntag, Senior Attorney, (202) 452-3694; for persons who are deaf or hard of hearing, TTY (202) 263-4869. | |
| FR Citation | 80 FR 38686 |
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