The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FEDERAL R E SE R V E BANK OF DALLAS
Station K, Dallas, Texas 7 5 2 2 2
Circular No. 84-70
June 28, 1984
TO:
All member banks and others concerned in the Eleventh
Federal Reserve District
ATTENTION:
Chief Executive Officer
SUBJECT:
Amendment to Regulation J —
Interlocks
SUIWARY:
The Board of Governors of the Federal Reserve System
has amended its Regulation L to conform it with the
new classifications
for Metropolitan Statistical
Areas.
The amendment deletes all references
to
"Standard
Metropolitan
Statistical
Areas"
and
substitutes the terminology currently used by the
Office of Management and Budget.
ATTACHMENTS:
Board's press release and the material as published in
the Federal Register
MORE INFORMATION:
Legal Department, Extension 6171
ADDITIONAL COPIES:
Public Affairs Department, Extension 6289
Management Official
Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank: 1-800-442-7140
(intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above.
This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)
FEDERAL RESERVE press release
For immediate release
June 11, 1984
The Federal Reserve Board today amended its Regulation L
(Management Official Interlocks)
to conform it to recent legislation
which deleted all references in the Depository Institution Management
Interlocks Act to "Standard Metropolitan Statistical Areas" and
substituted therefore the new classifications for Metropolitan
Statistical Areas now in use by the Federal Office of Management and
Bu dget.
In a joint notice for publication in the Federal Register the
Office of the Comptroller of the Currency,
the Federal Deposit Insurance
Corporation, the Federal Home Loan Bank Board and the National Credit
Union Administration are similarly amending their regulations.
of the notice is available at district Federal Reserve Banks.
The amendment is effective immediately.
The text
DEPARTMENT OF THE TREASURY
COMPTROLLER OF THE CURRENCY
[12 CFR Part 26]
FEDERAL RESERVE SYSTEM
[12 CFR Part 212]
FEDERAL DEPOSIT INSURANCE CORPORATION
[12 CFR Part 348]
FEDERAL HOME LOAN BANK BOARD
[12 CFR Part 563f]
NATIONAL CREDIT UNION ADMINISTRATION
[12 CFR Part 711]
Management Official Interlocks
AGENCIES:
Office of the Comptroller of the Currency,
Governors
of
the
Federal
Insurance
Corporation,
Reserve
Federal
System,
Home
Loan
Federal
Bank
Board of
Deposit
Board,
and
National Credit Union Administration.
ACTION:
Final Rule.
SUMMARY:
The Office of the Comptroller of
the Currency,
the
Board of Governors of the Federal Reserve System,
the Federal
Deposit
Loan
Board,
Insurance
and
the
Corporation,
National
the
Credit
Federal
Union
Home
Bank
Administration
(collectively referred to as the "agencies") are amending their
respective regulations implementing
Management
Interlocks Act,
management official
the Depository Institution
which generally prohibits
certain
interlocks between unaffiliated depository
2-
-
institutions
their
asset
and depository holding
size and location.
regulations
to
a
change
Management
Interlocks
"Standard
Metropolitan
in
Act
The
the
which
companies
amendments
Depository
deleted
Statistical
depending upon
all
Areas"
conform
the
Institution
references
("SMSAs")
to
and
substituted therefore the new classifications for Metropolitan
Statistical
Areas
adopted
by
the
Office
of
Management
and
Budget.
EFFECTIVE DATE:
[Immediately effective upon publication in the
Federal Register] .
FOR FURTHER INFORMATION CONTACT:
Melanie Fein ((202)
or
Board of
Daniel
Federal
((202)
Fredric
Burd
((202)
Reserve
System;
447-1880),
H.
Karr
452-3263),
Chari
Office of
or
Pamela
Anhouse or
F.
LeCren
Federal Deposit Insurance Corporation;
377-6461) or George Scruggs
Bank
Board;
or
Steven
R.
Governors of
Jonathan
the Comptroller of
E.
the
Rushdoony
the Currency;
((202)
389-4171),
David J. Bristol
((202)* 377-6963),
Bisker
452-3594)
( (202)
( (202)
Federal Home Loan
357-1030),
National
Credit Union Administration.
SUPPLEMENTARY
INFORMATION:
On
November
30,
1983,
Pub.
L.
98-181 amended the Depository Institution Management Interlocks
Act (12 U.S.C.
reference
to
3201 et s e q ., "Interlocks Act") by deleting the
Standard
Metropolitan
Statistical
Area
and
3-
-
substituting therefore the new classifications of Metropolitan
Statistical Areas promulgated by the Office of Management and
Budget
("OMB").
The statutory amendment was necessitated by a
change in the standards and terminology used by OMB.
As originally enacted,
(12 U.S.C.
3202)
interlocks
between
section
prohibited,
203(1)
of
the Interlocks Act
in certain instances,
unaffiliated
depository
management
organizations
both depository organizations had offices located in
if
"the same
standard metropolitan statistical area as defined by the Office
of
Management
and
Budget
.
.
.
However,
standard
metropolitan statistical area is no longer a defined term used
by OMB.
As a result of
statistical
1980
areas
(see 45 Fed.
statistical areas
PB
83-218891)
the reclassification of metropolitan
initiated by the Department of Commerce
Reg.
956),
OMB published a new listing of
("Metropolitan Statistical Areas
which
omitted
metropolitan statistical areas.
its
place
Primary
the
terms
Metropolitan
Consolidated
Essentially,
the new
any
reference
to
Statistical
Area
Statistical
standards
1983,"
NIS
standard
The new listing substituted in
Metropolitan ’Statistical
Metropolitan
in
provide
Area
("PMSA"),
Area
("MSA"),
and
("CMSA").
that any MSA with a
population of one million or more may be divided into PMSAs
which
are
smaller
Furthermore,
as a CMSA.
areas
with
very
strong
internal
ties.
two or more PMSAs may be combined and designated
4-
-
These changes have rendered obsolete
203(1)
of
the
Accordingly,
Interlocks
section
Act
statistical
Interlocks
by
area"
and
statistical
statistical
area,
or
that
originally
of Pub.
out
L.
area,
the
98-181
"standard
inserting in
metropolitan
statistical area
Act as
701(c)
striking
the language of section
lieu
the
enacted.
amended
the
metropolitan
thereof
same
"primary
metropolitan
same consolidated
metropolitan
is not comprised of designated primary
metropolitan statistical areas."
This
regulatory amendment will
simply conform
regulations to the amended statute.
regulation to preclude,
unaffiliated
depository
It does so by amending the
in certain instances,
organizations
organizations have offices
in the same
statistical
phrase
area."
statistical area"
The
the agencies'
where
interlocks among
such
depository
"relevant metropolitan
"relevant
is defined to mean a MSA,
metropolitan
PMSA,
or a CMSA
that is not comprised of designated PMSAs.
Inasmuch as the agencies are merely conforming their respective
regulations to changes in the underlying statute,
the amendment
is being accomplished in final without opportunity for public
comment and is immediately effective upon publication
Federal Register.
sections
553(b)(A)
Procedure Act,
in the
This action is being done under authority of
and
553(d)(1)
of
the
Administrative
which authorize waiver of public
comment and
-
5-
waiver of delayed effective date when the adopting agency finds
for good cause
effective
that public
comment
date are unnecessary.
and
the
Because
3 0-day delayed
the amendments
not the subject of a notice of proposed rulemaking,
not subject
5 U.S.C.
601
to review under
et
seq.
Currency certifies
the
were
they are
Regulatory Flexibility Act,
Additionally,
the
Comptroller
of
the
that the amendments to 12 CFR Part 26 are
not a major rule as defined by Executive Order 12291.
Accordingly,
pursuant
to
their
respective
authority
under
section 209 of the Depository Institution Management Interlocks
Act
(12 U.S.C.
Currency,
3207),
the Office of
the Comptroller of
the
the Board of Governors of the Federal Reserve System,
the Federal
Deposit
Insurance
Corporation,
the
Federal
Home
Loan Bank Board, and the National Credit Union Administration,
hereby amend Title 12 of the Code of Federal Regulations, Parts
26,
212, 348, 563f, and 711, respectively, as follows:
List of Subjects:
Savings
and
Corporation;
Currency;
loan
Antitrust;
Banks,
associations;
Federal
Reserve
banking;
Federal
System;
interlocks.
Holding
companies;
Deposit
Insurance
Comptroller
Federal Home Loan Bank Board;
Administration;
Credit unions;
National
Management
of
the
Credit Union
official
-
6-
FEDERAL RESERVE SYSTEM
[12 CFR Part 212]
MANAGEMENT OFFICIAL INTERLOCKS
12 C.F.R. Part 212 is amended as follows:
1.
The
authority citation
for
Part
212
reads
as
follows:
AUTHORITY:
2.
12 U.S.C.
3201 et seq.
Section 212.2 is amended by adding a new paragraph
(n) to read as follows:
§ 212.2 Definitions.
*
(n)
*
*
*
*
"Relevant metropolitan
statistical area"
means
a Primary
Metropolitan Statistical Area, a Metropolitan Statistical Area,
or a Consolidated Metropolitan
Statistical
Area
that
is not
comprised of designated Primary Metropolitan Statistical Areas
as defined by the Office of Management and Budget.
3.
Section 212.3 is amended by revising paragraph
(b)
to read as follows:
§ 212.3 General prohibitions.
*
*
*
*
*
(b) Metropolitan Statistical A r e a .
A management official of a
depository organization may not serve at
the same time as a
-
inanagement
official
of
7-
another
depository organization
not
affiliated with it if:
(1) Both
are
depository
institutions,
each has
an
office in the same relevant metropolitan statistical area,
and
either institution has total assets of $20 million or more;
(2) Offices of depository
institution affiliates of
both are located in the same relevant metropolitan statistical
area and either of the depository institution affiliates has
total assets of $20 million or more; or
(3) One is a depository institution that has an office
in
the same relevant
metropolitan
statistical
depository institution affiliate of
area
as
the other and either
a
the
depository institution or the depository institution affiliate
has total assets of $20 million or more.
4.
Section 212.6 is amended by revising paragraph (a)
to read as follows:
§ 212.6 Changes in circumstances.
(a) Non-grandfathered
interlocks.
service
as a management official ds
section
212.5
of
this
part,
the
If
a
person's
not grandfathered under
person's
service
must
be
terminated if a change in circumstances causes such service to
become
prohibited.
Such a
change
may
include,
but
is not
limited to, an increase in asset size of an organization due to
natural growth,
area
or
a change
in relevant metropolitan statistical
community boundaries
or
the
designation
of
a
new
-
8-
relevant metropolitan statistical area, an acquisition, merger,
or
consolidation,
the
establishment
of
an
office,
the
Federal
or
a
disaffiliation.
*
*
*
By Order of
System,
*
*
the Board of
Governors of
Reserve
effective June 8, 1984.
William W. Wiles
Secretary of the Board
@FedFRASER