82 FR 11501 - Federal Reserve Bank Capital Stock

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 36 (February 24, 2017)

Page Range		11501-11502
FR Document		2017-03568

The Board of Governors (Board) is publishing a final rule that applies an inflation adjustment to the $10 billion total consolidated asset threshold in Regulation I, which implements the provision of the ``Fixing America's Surface Transportation Act'' (FAST Act) that sets the dividend rate that member banks with more than $10 billion in total consolidated assets earn on their Federal Reserve Bank (Reserve Bank) stock. The FAST Act requires that the Board annually adjust the $10 billion total consolidated asset threshold to reflect the change in the Gross Domestic Product Price Index, published by the Bureau of Economic Analysis. Based on the change in the Gross Domestic Product Price Index as of September 29, 2016, the total consolidated asset threshold will be $10,122,000,000 through December 31, 2017.

Federal Register, Volume 82 Issue 36 (Friday, February 24, 2017)

[Federal Register Volume 82, Number 36 (Friday, February 24, 2017)]
[Rules and Regulations]
[Pages 11501-11502]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-03568]



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Rules and Regulations
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Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / 
Rules and Regulations

[[Page 11501]]



FEDERAL RESERVE SYSTEM

12 CFR Part 209

[Regulation I; Docket No. R-1560]
RIN 7100-AE 68


Federal Reserve Bank Capital Stock

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final rule.

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SUMMARY: The Board of Governors (Board) is publishing a final rule that 
applies an inflation adjustment to the $10 billion total consolidated 
asset threshold in Regulation I, which implements the provision of the 
``Fixing America's Surface Transportation Act'' (FAST Act) that sets 
the dividend rate that member banks with more than $10 billion in total 
consolidated assets earn on their Federal Reserve Bank (Reserve Bank) 
stock. The FAST Act requires that the Board annually adjust the $10 
billion total consolidated asset threshold to reflect the change in the 
Gross Domestic Product Price Index, published by the Bureau of Economic 
Analysis. Based on the change in the Gross Domestic Product Price Index 
as of September 29, 2016, the total consolidated asset threshold will 
be $10,122,000,000 through December 31, 2017.

DATES: This final rule is effective March 27, 2017.

FOR FURTHER INFORMATION CONTACT: Evan Winerman, Counsel (202/872-7578), 
Legal Division; or Kimberly Zaikov, Financial Project Leader (202/452-
2256), Reserve Bank Operations and Payments Systems Division. For users 
of Telecommunications Device for the Deaf (TDD) only, contact (202) 
263-4869.

SUPPLEMENTARY INFORMATION: 

I. Background

    Regulation I governs the issuance and cancellation of capital stock 
by the Reserve Banks. Under section 5 of the Federal Reserve Act \1\ 
and Regulation I,\2\ a member bank must subscribe to capital stock of 
the Reserve Bank of its district in an amount equal to six percent of 
the member bank's capital and surplus. The member bank must pay for 
one-half of this subscription on the date that the Reserve Bank 
approves its application for capital stock, while the remaining half of 
the subscription shall be subject to call by the Board.\3\
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    \1\ 12 U.S.C. 287.
    \2\ 12 CFR 209.4(a).
    \3\ 12 U.S.C. 287 and 12 CFR 209.4(c)(2).
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    Prior to January 1, 2016, all member banks were entitled to a six 
percent dividend on their paid-in capital stock. As of January 1, 2016, 
the FAST Act \4\ amended section 7(a)(1) of the Federal Reserve Act \5\ 
to provide that stockholders with more than $10 billion in total 
consolidated assets shall receive a dividend on paid-in capital stock 
equal to the lesser of six percent and ``the rate equal to the high 
yield of the 10-year Treasury note auctioned at the last auction held 
prior to the payment of such dividend,'' while stockholders with $10 
billion or less in total consolidated assets shall continue to receive 
a six percent dividend. The FAST Act also provides that the Board must 
adjust the $10 billion threshold for total consolidated assets annually 
to reflect the change in the Gross Domestic Product Price Index, 
published by the Bureau of Economic Analysis.
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    \4\ Public Law 114-94, 129 Stat. 1312 (2015). See https://www.congress.gov/114/bills/hr22/BILLS-114hr22enr.pdf/.
    \5\ 12 U.S.C. 289(a)(1).
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    On November 23, 2016, the Board published a final rule (FAST Act 
Final Rule) in the Federal Register that amended Regulation I to 
implement section 32203 of the FAST Act.\6\ Regulation I now includes 
multiple references in Sec. Sec.  209.2, 209.3, and 209.4 to banks with 
total consolidated assets of either ``$10,000,000,000 or more'' or 
``less than $10,000,000,000.'' \7\ As required by the FAST Act, 
Regulation I provides that all references to the $10 billion total 
consolidated asset threshold shall be adjusted annually to reflect the 
change in the Gross Domestic Product Price Index.\8\ The preamble to 
the FAST Act Final Rule noted that ``[t]he Board expects to make this 
adjustment using the final second quarter estimate of the Gross 
Domestic Product Price Index for each year, published by the Bureau of 
Economic Analysis.'' \9\
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    \6\ 81 FR 84415 (Nov. 23, 2016). The final rule adopted, without 
change, an interim final rule that the Board published in the 
Federal Register on February 24, 2016 (81 FR 9082).
    \7\ Regulation I defines ``total consolidated assets'' as ``the 
total assets on the stockholder's balance sheet as reported by the 
stockholder on its Consolidated Report of Condition and Income (Call 
Report) as of the most recent December 31, except in the case of a 
new member or the surviving stockholder after a merger `total 
consolidated assets' means (until the next December 31 Call Report 
becomes available) the total consolidated assets of the new member 
or the surviving stockholder at the time of its application for 
capital stock.'' 12 CFR 209.1(d)(3).
    \8\ 12 CFR 209.4(f).
    \9\ 81 FR at 84417.
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II. Adjustment

    As of the effective date, the total consolidated asset threshold in 
Regulation I shall be $10,122,000,000. This is based on the final 
second quarter 2016 Gross Domestic Product Price Index estimate 
published by Bureau of Economic Analysis (111.268), which is 1.22% 
higher than the final second quarter 2015 Gross Domestic Product Price 
Index estimate (109.922).

III. Administrative Law Matters

Administrative Procedure Act

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Board finds that notice and 
public comment are impracticable, unnecessary, or contrary to the 
public interest.\10\ The amendment in this document is technical and 
applies the method previously set forth in the FAST Act Final Rule.\11\ 
For these reasons, the Board has determined that publishing a notice of 
proposed rulemaking and providing opportunity for public comment are 
unnecessary. Therefore, the amendments are adopted in final form.
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    \10\ 5 U.S.C. 553(b)(B).
    \11\ See 12 CFR 209.4(f).
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Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) does not apply to a rulemaking 
where a general notice of proposed rulemaking is not required.\12\ As 
noted previously,

[[Page 11502]]

the Board has determined that it is unnecessary to publish a general 
notice of proposed rulemaking for this final rule. Accordingly, the 
RFA's requirements relating to an initial and final regulatory 
flexibility analysis do not apply.
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    \12\ 5 U.S.C. 603 and 604.
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Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995,\13\ the 
Board has reviewed this final rule. No collections of information 
pursuant to the Paperwork Reduction Act are contained in the final 
rule.
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    \13\ 44 U.S.C. 3506; 5 CFR 1320.
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List of Subjects in 12 CFR Part 209

    Banks and banking, Federal Reserve System, Reporting and 
recordkeeping requirements, Securities.

Authority and Issuance

    For the reasons set forth in the preamble, the Board amends 
Regulation I, 12 CFR part 209, as follows:

PART 209--ISSUE AND CANCELLATION OF FEDERAL RESERVE BANK CAPITAL 
STOCK (REGULATION I)

0
1. The authority citation for part 209 continues to read as follows:

    Authority:  12 U.S.C. 12 U.S.C. 222, 248, 282, 286-288, 289, 
321, 323, 327-328, and 466.


0
2. In part 209, remove all references to ``$10,000,000,000'' and add in 
their place ``$10,122,000,000'', wherever they appear.

    By order of the Board of Governors of the Federal Reserve 
System, February 17, 2017.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2017-03568 Filed 2-23-17; 8:45 am]
 BILLING CODE 6210-01-P

11502 Federal Register / Vol. 82, No. 36 / Friday, February 24, 2017 / Rules and Regulations

the Board has determined that it is SUMMARY: We are superseding Discussion
unnecessary to publish a general notice airworthiness directive (AD) 2014–05– We issued a notice of proposed
of proposed rulemaking for this final 06 for Eurocopter Deutschland GmbH rulemaking (NPRM) to amend 14 CFR
rule. Accordingly, the RFA’s (ECD) (now Airbus Helicopters part 39 to remove AD 2014–05–06,
requirements relating to an initial and Deutschland GmbH) Model EC135 and Amendment 39–17779 (79 FR 13196,
final regulatory flexibility analysis do MBB–BK 117 C–2 helicopters to correct March 10, 2014) and add a new AD. AD
not apply. an error in the compliance time. AD 2014–05–06 required inspecting the
2014–05–06 required inspecting the flight control bearings repetitively,
Paperwork Reduction Act
flight-control bearings and installing replacing any loose bearing with an
In accordance with the Paperwork bushings and washers. This AD requires
Reduction Act of 1995,13 the Board has airworthy flight control bearing, and
the same actions. These actions are installing bushings and washers. The
reviewed this final rule. No collections intended to prevent an unsafe condition
of information pursuant to the NPRM published in the Federal
on these products. Register on March 30, 2015 (80 FR
Paperwork Reduction Act are contained
in the final rule. DATES: This AD is effective March 31, 16603). The NPRM proposed to retain
2017. all of the required actions and correct an
List of Subjects in 12 CFR Part 209 The Director of the Federal Register error in the compliance time. AD 2014–
Banks and banking, Federal Reserve approved the incorporation by reference 05–06 should have required installing
System, Reporting and recordkeeping of certain publications listed in this AD the bushings and washers on Model
requirements, Securities. as of April 14, 2014 (79 FR 13196, EC135 helicopters within the next 100
March 10, 2014). hours time-in-service or at the next
Authority and Issuance annual inspection, whichever occurs
For the reasons set forth in the ADDRESSES: For service information first. However, we omitted the word
preamble, the Board amends Regulation identified in this final rule, contact ‘‘first’’ from that sentence, which
I, 12 CFR part 209, as follows: Airbus Helicopters, Inc., 2701 N. Forum changes the meaning of the required
Drive, Grand Prairie, TX 75052; compliance time.
PART 209—ISSUE AND telephone (972) 641–0000 or (800) 232– AD 2014–05–06 was prompted by the
CANCELLATION OF FEDERAL 0323; fax (972) 641–3775; or at http:// discovery of loose flight control bearings
RESERVE BANK CAPITAL STOCK www.airbushelicopters.com/techpub. because of incorrect installation. This
(REGULATION I) You may review the referenced service condition could result in the affected
information at the FAA, Office of the control lever shifting, contacting the
■ 1. The authority citation for part 209 Regional Counsel, Southwest Region, helicopter structure. The actions in AD
continues to read as follows: 10101 Hillwood Pkwy, Room 6N–321, 2014–05–06 were intended to prevent
Authority: 12 U.S.C. 12 U.S.C. 222, 248, Fort Worth, TX 76177. It is also this unsafe condition, which could
282, 286–288, 289, 321, 323, 327–328, and available on the Internet at http:// reduce control of the helicopter.
466. www.regulations.gov by searching for Also since we issued AD 2014–05–06,
■ 2. In part 209, remove all references to and locating Docket No. FAA–2015– ECD changed its name to Airbus
‘‘$10,000,000,000’’ and add in their 0674. Helicopters Deutschland GmbH (Airbus
place ‘‘$10,122,000,000’’, wherever they Examining the AD Docket Helicopters). This AD reflects that
appear. change and updates the contact
By order of the Board of Governors of the You may examine the AD docket on information to obtain service
Federal Reserve System, February 17, 2017. the Internet at http:// documentation.
Robert deV. Frierson, www.regulations.gov by searching for
and locating Docket No. FAA–2015– Comments
Secretary of the Board.
0674; or in person at the Docket After our NPRM (80 FR 16603, March
[FR Doc. 2017–03568 Filed 2–23–17; 8:45 am]
Operations Office between 9 a.m. and 5 30, 2015) was published, we received
BILLING CODE 6210–01–P
p.m., Monday through Friday, except comments from one commenter.
Federal holidays. The AD docket
contains this AD, the European Aviation Request
DEPARTMENT OF TRANSPORTATION Safety Agency (EASA) AD, any Airbus Helicopters first requested
incorporated-by-reference service revising the compliance times for the
Federal Aviation Administration
information, the economic evaluation, repetitive inspections to match that in
any comments received, and other its current service information. For the
14 CFR Part 39
information. The street address for the Model EC135 P1, P2, P2+, T1, T2, and
[Docket No. FAA–2015–0674; Directorate Docket Operations Office (phone: 800– T2+ helicopters, Airbus Helicopters
Identifier 2014–SW–019–AD; Amendment 647–5527) is U.S. Department of requested increasing the 800 hour
39–18792; AD 2017–03–01] Transportation, Docket Operations interval to 1000 hours with an
RIN 2120–AA64 Office, M–30, West Building Ground additional 10% margin. For MBB–BK
Floor, Room W12–140, 1200 New Jersey 117 C–2 helicopters, Airbus Helicopters
Airworthiness Directives; Airbus Avenue SE., Washington, DC 20590. requested increasing the 600 hour
Helicopters Deutschland GmbH interval to 800 hours with an additional
FOR FURTHER INFORMATION CONTACT: Matt
(Previously Eurocopter Deutschland 10% margin.
Fuller, Senior Aviation Safety Engineer,
pmangrum on DSK3GDR082PROD with RULES

GmbH) Helicopters We disagree. Airbus Helicopters did
Safety Management Group, Rotorcraft
AGENCY: Federal Aviation Directorate, FAA, 10101 Hillwood not provide any technical justification
Administration (FAA), DOT. Pkwy, Fort Worth, TX 76177; telephone to support this request. The final rule
(817) 222–5110; email matthew.fuller@ has not been changed as a result of this
ACTION: Final rule.
faa.gov. comment.
Airbus Helicopters also requested that
13 44 U.S.C. 3506; 5 CFR 1320. SUPPLEMENTARY INFORMATION: if any bearing is loose, we require

VerDate Sep<11>2014 14:13 Feb 23, 2017 Jkt 241001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\24FER1.SGM 24FER1

Document Created: 2017-02-24 01:17:31
Document Modified: 2017-02-24 01:17:31

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		Rules and Regulations
Action		Final rule.
Dates		This final rule is effective March 27, 2017.
Contact		Evan Winerman, Counsel (202/872-7578), Legal Division; or Kimberly Zaikov, Financial Project Leader (202/452- 2256), Reserve Bank Operations and Payments Systems Division. For users of Telecommunications Device for the Deaf (TDD) only, contact (202) 263-4869.
FR Citation		82 FR 11501
CFR Associated		Banks and Banking; Federal Reserve System; Reporting and Recordkeeping Requirements and Securities