82_FR_31189 82 FR 31062 - Announcement of Financial Sector Liabilities

82 FR 31062 - Announcement of Financial Sector Liabilities

FEDERAL RESERVE SYSTEM

Federal Register Volume 82, Issue 127 (July 5, 2017)

Page Range31062-31063
FR Document2017-14011

Federal Register, Volume 82 Issue 127 (Wednesday, July 5, 2017) 
[Federal Register Volume 82, Number 127 (Wednesday, July 5, 2017)]
[Notices]
[Pages 31062-31063]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-14011]


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FEDERAL RESERVE SYSTEM

[Docket No. Op-1567]


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 if the resulting company's consolidated liabilities would 
exceed 10 percent of the aggregate financial sector liabilities.\1\
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    \1\ 12 U.S.C. 1852(a)(2), (b).
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    Pursuant to Regulation XX, the Federal Reserve will publish the 
aggregate financial sector liabilities by July 1 of each year. 
Aggregate financial sector liabilities equals the average of the year-
end financial sector liabilities figure (as of December 31) of each of 
the preceding two calendar years.
    For Further Information Contact:
    Sean Healey, Supervisory Financial Analyst, (202) 912-4611; Matthew 
Suntag, Senior Attorney, (202) 452-3694; for persons who are deaf or 
hard of hearing, TTY (202) 263-4869.

Aggregate Financial Sector Liabilities

    Aggregate financial sector liabilities is equal to 
$21,010,053,985,500.\2\ This measure is in effect from July 1, 2017 
through June 30, 2018.
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    \2\ This number reflects the average of the financial sector 
liabilities figure for the year ending December 31, 2015 
($21,940,911,695,000) and the year ending December 31, 2016 
($20,079,196,276,000). The decrease in liabilities between year-end 
2015 and 2016 was primarily caused by the status change of General 
Electric Company and Metlife, Inc. As of year-end 2015, both 
companies met the definition of financial company under Regulation 
XX and were included in the financial sector liability calculation 
for that year. As of year-end 2016, neither General Electric Company 
nor Metlife, Inc. met the definition of financial company and, thus, 
both were excluded from the financial liability calculation. A 
further decrease in liabilities resulted from certain foreign 
banking organizations holding more risk-based capital against their 
U.S.-based assets in year-end 2016, compared to year-end 2015.
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Calculation Methodology

    Aggregate financial sector liabilities equals the average of the 
year-end financial sector liabilities figure (as of December 31) of 
each of the preceding two calendar years. The year-end financial sector 
liabilities figure equals the sum of the total consolidated liabilities 
of all top-tier U.S. financial companies and the U.S. liabilities of 
all top-tier foreign financial companies, calculated using the 
applicable methodology for each financial company, as set forth in 
Regulation XX and summarized below.
    Consolidated liabilities of a U.S. financial company that was 
subject to consolidated risk-based capital rules as of December 31 of 
the year being measured, equal 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. For the year ending on 
December 31, 2016, companies in this category include (with certain 
exceptions listed below) bank holding companies, savings and loan 
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.
    Consolidated liabilities of a U.S. financial company not subject to 
consolidated risk-based capital rules as of December 31 of the year 
being measured, equal liabilities calculated in accordance with 
applicable accounting standards. For the year ending on December 31, 
2016, companies in this category include nonbank financial companies 
supervised by the Board, bank holding companies and savings and loan 
holding companies subject to the Federal Reserve's Small Bank Holding 
Company Policy Statement, savings and loan holding companies 
substantially engaged in insurance underwriting or commercial 
activities, and U.S. companies that control depository institutions but 
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.\3\ 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.
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    \3\ 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).
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    Section 622 provides that the U.S. 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, 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, plus the assets of 
all branches, agencies, and nonbank subsidiaries, calculated in 
accordance with applicable accounting standards. 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.

[[Page 31063]]

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), the FR Y-9C and the 
FR XX-1 to calculate liabilities of these institutions.
    The Board granted a request from one financial company to use an 
accounting standard or method of estimation other than GAAP to 
calculate liabilities. The requesting company is an insurance company 
that reports financial information under Statutory Accounting 
Principles (``SAP''). The Board approved a method of estimation for 
this company that is based on line items from SAP reports, with 
adjustments to reflect certain differences in accounting treatment 
between GAAP and SAP.

    By order of the Board of Governors of the Federal Reserve 
System, acting through the Director of Supervision and Regulation 
under delegated authority, June 28, 2017.
Ann E. Misback,
Secretary of the Board.
[FR Doc. 2017-14011 Filed 7-3-17; 8:45 am]
 BILLING CODE 6210-01-P

31062 Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Notices the BHC Act (12 U.S.C. 1842(c)). If the Pursuant to Regulation XX, the companies, and insured depository proposal also involves the acquisition of Federal Reserve will publish the institutions. The Federal Reserve used a nonbanking company, the review also aggregate financial sector liabilities by information collected on the includes whether the acquisition of the July 1 of each year. Aggregate financial Consolidated Financial Statements for nonbanking company complies with the sector liabilities equals the average of Holding Companies (FR Y–9C) and the standards in section 4 of the BHC Act the year-end financial sector liabilities Bank Consolidated Reports of Condition (12 U.S.C. 1843). Unless otherwise figure (as of December 31) of each of the and Income (Call Report) to calculate noted, nonbanking activities will be preceding two calendar years. liabilities of these institutions. conducted throughout the United States. For Further Information Contact: Consolidated liabilities of a U.S. Unless otherwise noted, comments Sean Healey, Supervisory Financial financial company not subject to regarding each of these applications Analyst, (202) 912–4611; Matthew consolidated risk-based capital rules as must be received at the Reserve Bank Suntag, Senior Attorney, (202) 452– of December 31 of the year being indicated or the offices of the Board of 3694; for persons who are deaf or hard measured, equal liabilities calculated in Governors not later than July 31, 2017. of hearing, TTY (202) 263–4869. accordance with applicable accounting A. Federal Reserve Bank of Aggregate Financial Sector Liabilities standards. For the year ending on Minneapolis (Brendan S. Murrin, December 31, 2016, companies in this Assistant Vice President) 90 Hennepin Aggregate financial sector liabilities is category include nonbank financial equal to $21,010,053,985,500.2 This companies supervised by the Board, Avenue, Minneapolis, Minnesota measure is in effect from July 1, 2017 bank holding companies and savings 55480–0291: through June 30, 2018. and loan holding companies subject to 1. Kirkwood Bancorporation Co. Bismarck, North Dakota; to acquire up Calculation Methodology the Federal Reserve’s Small Bank to 33 percent of the voting shares of Holding Company Policy Statement, Aggregate financial sector liabilities savings and loan holding companies Kirkwood Bancorporation of Nevada, equals the average of the year-end Inc., Las Vegas, Nevada, and thereby substantially engaged in insurance financial sector liabilities figure (as of underwriting or commercial activities, indirectly acquire shares of Kirkwood December 31) of each of the preceding Bank of Nevada, Las Vegas, Nevada. and U.S. companies that control two calendar years. The year-end depository institutions but are not bank Board of Governors of the Federal Reserve financial sector liabilities figure equals holding companies or savings and loan System, June 29, 2017. the sum of the total consolidated holding companies. ‘‘Applicable Yao-Chin Chao, liabilities of all top-tier U.S. financial accounting standards’’ is defined as Assistant Secretary of the Board. companies and the U.S. liabilities of all GAAP, or such other accounting [FR Doc. 2017–14054 Filed 7–3–17; 8:45 am] top-tier foreign financial companies, standard or method of estimation that BILLING CODE 6210–01–P calculated using the applicable the Board determines is appropriate.3 methodology for each financial The Federal Reserve used information company, as set forth in Regulation XX collected on the FR Y–9C, the Parent FEDERAL RESERVE SYSTEM and summarized below. Company Only Financial Statements for Consolidated liabilities of a U.S. [Docket No. Op–1567] Small Holding Companies (FR Y–9SP), financial company that was subject to and the Financial Company Report of consolidated risk-based capital rules as Announcement of Financial Sector Consolidated Liabilities (FR XX–1) to of December 31 of the year being Liabilities calculate liabilities of these institutions. measured, equal the difference between Section 622 provides that the U.S. Section 622 of the Dodd-Frank Wall its risk-weighted assets (as adjusted liabilities of a ‘‘foreign financial Street Reform and Consumer Protection upward to reflect amounts that are company’’ equal the risk-weighted Act, implemented by the Board’s deducted from regulatory capital assets and regulatory capital attributable Regulation XX, prohibits a merger or elements pursuant to the Federal to the company’s ‘‘U.S. operations.’’ acquisition that would result in a banking agencies’ risk-based capital Under Regulation XX, liabilities of a financial company that controls more rules) and total regulatory capital, as foreign banking organization’s U.S. than 10 percent of the aggregate calculated under the applicable risk- operations are calculated using the risk- consolidated liabilities of all financial based capital rules. For the year ending weighted asset methodology for companies (‘‘aggregate financial sector on December 31, 2016, companies in subsidiaries subject to risk-based capital liabilities’’). Specifically, an insured this category include (with certain rules, plus the assets of all branches, depository institution, a bank holding exceptions listed below) bank holding agencies, and nonbank subsidiaries, company, a savings and loan holding companies, savings and loan holding calculated in accordance with company, a foreign banking 2 This number reflects the average of the financial applicable accounting standards. organization, any other company that sector liabilities figure for the year ending Liabilities attributable to the U.S. controls an insured depository December 31, 2015 ($21,940,911,695,000) and the operations of a foreign financial institution, and a nonbank financial year ending December 31, 2016 company that is not a foreign banking company designated by the Financial ($20,079,196,276,000). The decrease in liabilities organization are calculated in a similar between year-end 2015 and 2016 was primarily Stability Oversight Council (each, a caused by the status change of General Electric manner to the method described for ‘‘financial company’’) is prohibited from Company and Metlife, Inc. As of year-end 2015, foreign banking organizations, but merging or consolidating with, both companies met the definition of financial liabilities of a U.S. subsidiary not company under Regulation XX and were included sradovich on DSK3GMQ082PROD with NOTICES acquiring all or substantially all of the subject to risk-based capital rules are in the financial sector liability calculation for that assets of, or acquiring control of, year. As of year-end 2016, neither General Electric calculated based on the U.S. another company if the resulting Company nor Metlife, Inc. met the definition of company’s consolidated liabilities financial company and, thus, both were excluded 3 A financial company may request to use an would exceed 10 percent of the from the financial liability calculation. A further accounting standard or method of estimation other decrease in liabilities resulted from certain foreign than GAAP if it does not calculate its total aggregate financial sector liabilities.1 banking organizations holding more risk-based consolidated assets or liabilities under GAAP for capital against their U.S.-based assets in year-end any regulatory purpose (including compliance with 1 12 U.S.C. 1852(a)(2), (b). 2016, compared to year-end 2015. applicable securities laws). 12 CFR 251.3(e). VerDate Sep<11>2014 17:57 Jul 03, 2017 Jkt 241001 PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 E:\FR\FM\05JYN1.SGM 05JYN1

Federal Register / Vol. 82, No. 127 / Wednesday, July 5, 2017 / Notices 31063 subsidiary’s liabilities under applicable a.m., Eastern Daylight Time (EDT) until Dated: June 30, 2017. accounting standards. The Federal no later than 5:00 p.m., EDT. Jeffrey A. Koses, Reserve used information collected on Director, Office of Acquisition Policy, Office the Capital and Asset Report for Foreign ADDRESSES: The meeting will be held at of Government-wide Policy. Banking Organizations (FR Y–7Q), the the Eisenhower Executive Office [FR Doc. 2017–14210 Filed 7–3–17; 8:45 am] FR Y–9C and the FR XX–1 to calculate Building, Room 350, located at 1650 BILLING CODE 6820–61–P liabilities of these institutions. Pennsylvania Avenue NW., Washington, The Board granted a request from one DC 20502. It will be open to the public financial company to use an accounting through livestreaming on https:// www.whitehouse.gov/live. DEPARTMENT OF HEALTH AND standard or method of estimation other HUMAN SERVICES than GAAP to calculate liabilities. The FOR FURTHER INFORMATION CONTACT: To requesting company is an insurance obtain information about the Centers for Disease Control and company that reports financial Commission or to submit written Prevention information under Statutory Accounting comments for the Commission’s Principles (‘‘SAP’’). The Board approved [30Day–17–1146] consideration, contact the Commission’s a method of estimation for this company Designated Federal Officer, Andrew Agency Forms Undergoing Paperwork that is based on line items from SAP reports, with adjustments to reflect Kossack, via email at Reduction Act Review certain differences in accounting ElectionIntegrityStaff@ovp.eop.gov or telephone at 202–456–3794. Please note The Centers for Disease Control and treatment between GAAP and SAP. Prevention (CDC) has submitted the the Commission may post written By order of the Board of Governors of the following information collection request comments publicly, including names Federal Reserve System, acting through the to the Office of Management and Budget Director of Supervision and Regulation under and contact information, in accordance (OMB) for review and approval in delegated authority, June 28, 2017. with the provisions of FACA. There will accordance with the Paperwork Ann E. Misback, not be oral comments from the public at Reduction Act of 1995. The notice for Secretary of the Board. this initial meeting. the proposed information collection is [FR Doc. 2017–14011 Filed 7–3–17; 8:45 am] The Commission will provide published to obtain comments from the BILLING CODE 6210–01–P individuals interested in providing oral public and affected agencies. comments the opportunity to do so at Written comments and suggestions subsequent meetings. Requests to from the public and affected agencies accommodate disabilities with respect concerning the proposed collection of GENERAL SERVICES information are encouraged. Your to livestreaming or otherwise should ADMINISTRATION comments should address any of the also be sent to the email address listed above, preferably at least 10 days prior following: (a) Evaluate whether the [Notice-MK–2017–01; Docket No. 2017– to the meeting to allow time for proposed collection of information is 0002; Sequence 11] processing. necessary for the proper performance of The Presidential Commission on the functions of the agency, including Election Integrity (PCEI); Upcoming SUPPLEMENTARY INFORMATION: The whether the information will have Public Advisory Meeting Commission was established in practical utility; (b) Evaluate the accordance with E.O. 13799 of March accuracy of the agencies estimate of the AGENCY: Office of Government-wide 11, 2017, the Commission’s charter, and burden of the proposed collection of Policy (OGP), General Services the provisions of FACA. The information, including the validity of Administration (GSA). Commission will, consistent with the methodology and assumptions used; ACTION: Meeting notice. applicable law and E.O. 13799, study (c) Enhance the quality, utility, and the registration and voting processes clarity of the information to be SUMMARY: The Presidential Advisory collected; (d) Minimize the burden of Commission on Election Integrity used in Federal elections. The Commission shall be solely advisory the collection of information on those (Commission), a Federal Advisory who are to respond, including through Committee established in accordance and shall submit a report to the the use of appropriate automated, with the Federal Advisory Committee President of the United States that electronic, mechanical, or other Act (FACA), 5 U.S.C. App., and identifies the following: technological collection techniques or Executive Order 13799, (https:// a. Those laws, rules, policies, other forms of information technology, www.federalregister.gov/documents/ activities, strategies, and practices that e.g., permitting electronic submission of 2017/05/16/2017-10003/establishment- enhance the American people’s responses; and (e) Assess information of-presidential-advisory-commission-on- confidence in the integrity of the voting collection costs. election-integrity) will hold its first processes used in Federal elections; To request additional information on meeting on Wednesday, July 19, 2017. the proposed project or to obtain a copy This meeting will consist of a b. those laws, rules, policies, activities, strategies, and practices that of the information collection plan and ceremonial swearing in of Commission instruments, call (404) 639–7570 or members, introductions and statements undermine the American people’s send an email to omb@cdc.gov. Written from members, a discussion of the confidence in the integrity of voting comments and/or suggestions regarding sradovich on DSK3GMQ082PROD with NOTICES Commission’s charge and objectives, processes used in Federal elections; and the items contained in this notice possible comments or presentations c. those vulnerabilities in voting should be directed to the Attention: from invited experts, and a discussion systems and practices used for Federal CDC Desk Officer, Office of Management of next steps and related matters. elections that could lead to improper and Budget, Washington, DC 20503 or DATES: Meeting Date: The first voter registrations and improper voting, by fax to (202) 395–5806. Written Commission meeting will be held on including fraudulent voter registrations comments should be received within 30 Wednesday, July 19, 2017, from 11:00 and fraudulent voting. days of this notice. VerDate Sep<11>2014 17:57 Jul 03, 2017 Jkt 241001 PO 00000 Frm 00025 Fmt 4703 Sfmt 4703 E:\FR\FM\05JYN1.SGM 05JYN1


Document Created: 2017-07-04 02:01:10
Document Modified: 2017-07-04 02:01:10
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ContactSean Healey, Supervisory Financial Analyst, (202) 912-4611; Matthew Suntag, Senior Attorney, (202) 452-3694; for persons who are deaf or hard of hearing, TTY (202) 263-4869.
FR Citation82 FR 31062 
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