Full text of Federal Reserve Bank of New York Circulars : 9931. Rules Regarding Delegation of Authority

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

FEDERAL RESERVE BANK
OF NEW YORK

t

Circular No. 9931
October 9. 1985

RULES REGARDING DELEGATION OF AUTHORITY
Delegation of Authority to Act on Certain Applications
to Establish Edge Corporations

To All Domestic Commercial Banks
in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has amended its Rules
Regarding Delegation of A uthority in order to delegate to the Federal Reserve Banks
the authority to act on applications by domestic U.S. banking organizations to
establish

Edge

Corporations. That delegation of authority does not include

applications by foreign banks or by nonbanking organizations.
P rinted on the reverse side is the tex t of the am endm ent; questions thereon may
be directed to our Domestic Banking Applications D epartm ent (Tel. No. 212-791-5878).




E. G e r a l d C o r r i g a n .
President.

(Over)

( )The U.S. banking organization
1
meets minimum c p t l guidelines and i
aia
s
12 CFR Fart 265
ofews i stsatr cniin
tirie n aifcoy odto:
( )The proposal does not involve a
2
[Docket No. R-0551]
j i t venture; and
on
Rules Regarding Delegation of
( )No other s g i i a t policy is u i
3
infcn
se s
Authority; Delegation of Authority to
raised on which t e Board has not
h
Reserve Hanks To Act on Certain
previously expressed isview.
t
Applications To Establish Edge
Failure t meet these c i e i does not
o
rtra
<S@ rati@
Fp@ Rg
indicate t a an application would be
ht
disapproved. I requires only t a t e
t
ht h
Agency : Board of Governors of the
application must be acted on by t e
h
Federal Reserve System.
Board rather than by a Reserve Bank.
Aen@N: Final rule.
The Board believes t a t i
h t hs
delegation ofauthority w l be u
il
seful i
n
S u m m a r y : The Board i amending 12
s
the expenditious processing o
f
CFR Part 2 5 isRules Regarding
6, t
applications by U.S. banking
Delegation ofAuthority, t delegate t
o
o
organizations t e t
o s ablish Edge
the Federal Reserve Banks authority t
o
corporations and w l review t e
il
h
act on applications by U.S. banking
standards f r delegation from time t
o
o
organizations t establish Edge
o
tm.
ie
corporations. I i anticipated t a t i
ts
h t hs
The provisions of5 U.S.C. 553 r l t n
eaig
delegation of authority w l aid i the
il
n
t n t c , public par i i a i n and
o oie
tcpto
expeditious processing o applications
f
deferred e f c i e date are not followed
fetv
t establish Edge corporations.
o
i connection with t e adoption of t i
n
h
hs
EFFECTIVE DATE: September 27,1985.
amendment because the changes
FOR FURTHER INFORMATION CONTACT:
involved are procedural i nature and
n
James K l e , Manager, International
elr
do not c n t t t substantive r l s
osiue
ue
Banking Applications, Division o
f
subject t t e requirement o t a
o h
f ht
Banking Supervision and Regulation
scin
eto.
(202/452-2523) o Kathleen O ’
r
Day,
Pursuant t section 6
o
05(b) o t e
f h
Senior Counsel, Legal Division (202/452—
lxblt
Pb .
3 8 ) Board o Governors of the Federal Regulatory F e i i i y Act ( u . L 9676,
f
3 4 5 U.S.C. 601 e t s e q .,the Board o
5;
)
f
Reserve System, Washington, D.C.
Governors of t e Federal Reserve
h
2 551: or Joy W. O ’
0
Connell,
System c r i i s t a t e amendment
etfe h t h
Telecommunication Device f r t e Deaf
o h
adopted w l not have a s g i i a t
il
infcn
(TDD) (202/452-3244). 7
economic impact on a s
ubstantial
SUPPLEMENTARY INFORMATION: The
number of small e t t e t a would he
niis h t
Board’ Regulation K s t f r h t e
s
es ot h
subject t t e r g l t o .
o h euain
procedures and requirements f r
o
establishment of an Edge corporation
L s o Subjects i 12 CFR Part 265
it f
n
( 2 CFR 2 1 4 . I acting on a proposal t
1
1.) n
o
Authority delegations (Government
establish an Edge corpc~ation, t e Board
h
age c e ) Banks. Banking. Federal
nis.
considers f c o s such as t e f n n i l
atr
h iaca
Reserve System.
condition and history of the app i a t
lcn:
the general character ofismanagement: PART 265— [AMENDED]
t
the convenience and needs o t e
f h
12 CFR Part 265 i amended as
s
.community t be served; and the e f c s
o
fet
of the proposal on co p t t o . ' o i e o f l o s
meiin'Ntc f olw:
1 The authority c t t o f r Part 265
.
iain o
such proposals are published by t e
h
o
olw:
Board i the Federal Register i order t
n
n
o continues t read as f l o s
allow interested persons an opportunity
Authority: Sec. 11. 38 Stat. 261:12 U.S.C.
t express t e rviews.
o
hi
248.
Based on i sexperience i processing
t
n
2 Section 265.2 i amended by adding
.
s
applications by U.S. banking
paragraph ( ) 4 ) t read as f l o s
f(7 o
olw:
organizations 1t establish Edge
o
§ 265.2 Specific functions delegated to
corporations, the Board believes t a
ht
Board employees and to Federal Reserve
standards can be established under
Banks.
which i i appropriate t delegate
ts
o
approval of these applications t t e
o h
() * *
f*
( 7 Under section 2 ( ) of theFederal
4)
5a
Reserve Banks. The amendment t th
o e
h
Rules Regarding Delegation ofAuthority Reserve Act and Subpart A of t e
Board’ Regulation K. t approve
s
o
would permit a Reserve Bank, a t r
fe
consideration of the f c o s specified i
atr
n applications by a United States banking
organization t est b i h an Edge
o als
§ 2 1 4 t approve an application by a
1., o
corporation i a l t e following c i e i
fl h
rtra
U.S. banking organization t establish
o
are met:
an Edge corporation i th application
f e
meets the following c i e i :
rtra
FED ERAL RESERVE SYSTEM




PRINTED IN NEW YORK FROM FEDERAL REGISTER. VOL 50. NO 192

()The U S banking organization
i
..
meets c p t l adequacy guidelines and
aia
s otherwise i s t s a t r c
n a i f c o y ondition;
(i The proposed Edge corporation
i)
w l be a wholly-owned s b i i r ' of a
il
usday
s n l banking organization; and
ige
(i)No other s g i i a tpolicy issue i
ii
infcn
8
raised on which the Board has not
previously expressed i sview.
t
1 The delegation of authority w ould not include
applications to establish Edge corporations where
the investor is a foreign bank or a U.S. nonbanking
organization.

B y o rd er o f th e B oard of Governors of th e
F e d e r a l R e s e r v e S y s te m . September 27,1985.

James McAfee,

Associate Secretary o f the Board.
[FR D o c . 85-23589 Filed 10-2-65; 6:45 am)
BILUMG CODE 621&-01-CS