11474 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 

By Order of the Federal Maritime 

Commission. 

Dated: February 25, 2011. 

Karen V. Gregory, 

Secretary. 

[FR Doc. 2011–4666 Filed 3–1–11; 8:45 am] 

BILLING CODE 6730–01–P 

FEDERAL RESERVE SYSTEM 

Agency Information Collection 

Activities: Announcement of Board 

Approval Under Delegated Authority 

and Submission to OMB 

SUMMARY: Background. Notice is hereby 

given of the final approval of proposed 

information collections by the Board of 

Governors of the Federal Reserve 

System (Board) under OMB delegated 

authority, as per 5 CFR 1320.16 (OMB 

Regulations on Controlling Paperwork 

Burdens on the Public). Board-approved 

collections of information are 

incorporated into the official OMB 

inventory of currently approved 

collections of information. Copies of the 

Paperwork Reduction Act Submission, 

supporting statements and approved 

collection of information instrument(s) 

are placed into OMB’s public docket 

files. The Federal Reserve may not 

conduct or sponsor, and the respondent 

is not required to respond to, an 

information collection that has been 

extended, revised, or implemented on or 

after October 1, 1995, unless it displays 

a currently valid OMB control number. 

FOR FURTHER INFORMATION CONTACT: 

Cynthia Ayouch, Acting Federal Reserve 

Board Clearance Officer (202–452– 

3829), Division of Research and 

Statistics, Board of Governors of the 

Federal Reserve System, Washington, 

DC 20551. Telecommunications Device 

for the Deaf (TDD) users may contact 

(202–263–4869), Board of Governors of 

the Federal Reserve System, 

Washington, DC 20551. 

OMB Desk Officer—Shagufta Ahmed 

—Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, New Executive Office Building, 

Room 10235, Washington, DC 20503. 

Final approval under OMB delegated 

authority of the extension for three 

years, with revision of the following 

reports: 

1. Report title: Financial Statements 

for Bank Holding Companies. 

Agency form number: FR Y–9C, FR Y– 

9LP. 

OMB control number: 7100–0128. 

Effective Date: March 31, 2011. 

Frequency: Quarterly. 

Reporters: Bank holding companies. 

Estimated annual reporting hours: FR 

Y–9C: 188,820; FR Y–9LP: 27,195. 

Estimated average hours per response: 

FR Y–9C: 45.0; FR Y–9LP: 5.25. 

Number of respondents: FR Y–9C: 

1,049; FR Y–9LP: 1,295. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c)). Confidential treatment 

is not routinely given to the data in 

these reports. However, confidential 

treatment for the reporting information, 

in whole or in part, can be requested in 

accordance with the instructions to the 

form, pursuant to sections (b)(4) and 

(b)(6) of the Freedom of Information Act 

(5 U.S.C. 522(b)(4), (b)(6)). 

Abstract: The FR Y–9C and the FR Y– 

9LP are standardized financial 

statements for the consolidated bank 

holding company (BHC) and its parent. 

The FR Y–9 family of reports 

historically has been, and continues to 

be, the primary source of financial 

information on BHCs between on-site 

inspections. Financial information from 

these reports is used to detect emerging 

financial problems, to review 

performance and conduct preinspection analysis, to monitor and 

evaluate capital adequacy, to evaluate 

BHC mergers and acquisitions, and to 

analyze a BHC’s overall financial 

condition to ensure safe and sound 

operations. 

The FR Y–9C consists of standardized 

financial statements similar to the 

Federal Financial Institutions 

Examination Council (FFIEC) 

Consolidated Reports of Condition and 

Income (Call Reports) (FFIEC 031 & 041; 

OMB No. 7100–0036) filed by 

commercial banks. The FR Y–9C 

collects consolidated data from BHCs. 

The FR Y–9C is filed by top-tier BHCs 

with total consolidated assets of $500 

million or more. (Under certain 

circumstances defined in the General 

Instructions, BHCs under $500 million 

may be required to file the FR Y–9C). 

The FR Y–9LP includes standardized 

financial statements filed quarterly on a 

parent company only basis from each 

BHC that files the FR Y–9C. In addition, 

for tiered BHCs, a separate FR Y–9LP 

must be filed for each lower tier BHC. 

Current Actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, with revision, 

of the Financial Statements for Bank 

Holding Companies. The comment 

period expired on January 3, 2011. The 

Federal Reserve received two comment 

letters from bankers’ organizations on 

proposed revisions to the FR Y–9C and 

FR Y–9LP. In addition, the Federal 

Reserve, Federal Deposit Insurance 

Corporation (FDIC), and the Office of 

the Comptroller of the Currency (the 

banking agencies) received nine 

comment letters on proposed revisions 

to the Call Reports, which parallel 

proposed revisions to the FR Y–9C, from 

three banks, three bankers’ 

organizations, two bank insurance 

consultants, and an insurance company. 

No comments were received on the 

following revisions that were proposed 

to take effect as of March 31, 2011, and 

therefore the Federal Reserve will 

implement these revisions as proposed: 

(1) The break out of commercial 

mortgage-backed securities issued or 

guaranteed by U.S. Government 

agencies and sponsored agencies, (2) the 

break out of loans and other real estate 

owned (OREO) information covered by 

FDIC loss-sharing agreements by loan 

and OREO category, (3) the addition of 

new data items for the total assets of 

captive insurance and reinsurance 

subsidiaries, (4) the addition of new 

income statement items for credit 

valuation adjustments and debit 

valuation adjustments included in 

trading revenues (for BHCs with total 

assets of $100 billion or more), (5) the 

revision of reporting instructions for 

construction lending, and (6) the 

collection of expanded information on 

the quarterly-averages schedule. 

The following section of this notice 

describes the remaining proposed FR Y– 

9C and FR Y–9LP report changes and 

discusses the Federal Reserve’s 

evaluation of the comments received on 

the proposed changes. After considering 

the comments, the Federal Reserve will 

move forward in 2011 with the 

proposed reporting changes after 

making certain modifications in 

response to the comments. 

The Federal Reserve recognizes 

institutions’ need for lead time to 

prepare for reporting changes. Thus, 

consistent with longstanding practice, 

for the March 31, 2011, report date, 

BHCs may provide reasonable estimates 

for any new or revised FR Y–9C data 

item initially required to be reported as 

of that date for which the requested 

information is not readily available. 

Furthermore, the specific wording of the 

captions for the new or revised FR Y– 

9C data items discussed in this notice 

and the numbering of these data items 

should be regarded as preliminary. 

Revisions—FR Y–9C 

Revisions Related to Call Report 

Revisions 

The Federal Reserve proposed to 

make the following revisions to the FR 

Y–9C to parallel proposed changes to 

the Call Report. BHCs have commented 

that changes should be made to the FR 

Y–9C in a manner consistent with 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 11475 

1 Interagency Statement on Meeting the Credit 

Needs of Creditworthy Small Business Borrowers, 

issued February 12, 2010, and Policy Statement on 

Prudent Commercial Real Estate Loan Workouts, 

issued October 30, 2009. 

2Accounting Standards Codification paragraph 

470–60–15–11. 

3For BHCs with foreign offices, the Memorandum 

items for restructured real estate loans would cover 

such loans in domestic offices. In addition, BHCs 

would also provide a breakdown of restructured 

commercial and industrial loans between U.S. and 

non-U.S. addressees. 

4FASB Proposed Accounting Standards Update 

(ASU): Receivables (Topic 310), Clarifications to 

Accounting for Troubled Debt Restructurings by 

Creditors. 

changes to the Call Report to reduce 

reporting burden. 

1. Troubled Debt Restructurings 

The Federal Reserve proposed that 

BHCs report additional detail on loans 

that have undergone troubled debt 

restructurings in Schedule HC–C, Loans 

and Lease Financing Receivables, and 

Schedule HC–N, Past Due and 

Nonaccrual Loans, Leases, and Other 

Assets. More specifically, Schedule HC– 

C, Memorandum item 1.b, Other loans 

and all leases, restructured and in 

compliance with modified terms, and 

Schedule HC–N, Memorandum item 1.b, 

restructured, Other loans and all leases, 

included in Schedule HC–N, would be 

broken out to provide information on 

restructured troubled loans for many of 

the loan categories reported in the 

bodies of Schedule HC–C and Schedule 

HC–N. The breakout would also include 

Loans to individuals for household, 

family, and other personal expenditures, 

whose terms have been modified in 

troubled debt restructurings, which are 

currently excluded from the reporting of 

troubled debt restructurings. 

In the aggregate, troubled debt 

restructurings for all FR Y–9C 

respondents have grown from $11.4 

billion at year-end 2007 to $106.2 

billion as of March 31, 2010. The 

proposed additional detail on troubled 

debt restructurings in Schedules HC–C 

and HC–N would enable the Federal 

Reserve to better understand the level of 

restructuring activity at BHCs, the 

categories of loans involved in this 

activity, and whether BHCs are working 

with their borrowers to modify and 

restructure loans. In particular, to 

encourage banking organizations to 

work constructively with their 

commercial borrowers, the banking 

agencies recently 1 issued guidance on 

commercial real estate loan workouts 

and small business lending. While this 

guidance has explained the agencies’ 

expectations for prudent workouts, the 

Federal Reserve and the industry would 

benefit from additional reliable data 

outside of the examination process to 

assess restructuring activity at BHCs for 

commercial real estate loans and 

commercial and industrial loans. 

Further, it is important to separately 

identify commercial real estate loan 

restructurings from commercial and 

industrial loan restructurings given that 

the value of the real estate collateral is 

a consideration in a BHC’s decision to 

modify the terms of a commercial real 

estate loan in a troubled debt 

restructuring, but such collateral 

protection would normally be absent 

from commercial and industrial loans 

for which a loan modification is being 

explored because of borrowers’ financial 

difficulties. 

It is also anticipated that other loan 

categories will experience continued 

workout activity in the coming months 

given that most asset classes have been 

adversely affected by the recent 

recession. This effect is evidenced by 

the increase in past due and nonaccrual 

assets across virtually all asset classes 

over the past two to three years. 

Currently, BHCs report loans and 

leases restructured and in compliance 

with their modified terms (Schedule 

HC–C, Memorandum item 1) with 

separate disclosure of (a) loans secured 

by 1–4 family residential properties (in 

domestic offices) and (b) other loans and 

all leases (excluding loans to 

individuals for household, family, and 

other personal expenditures). This same 

breakout is reflected in Schedule HC–N, 

Memorandum item 1, for past due and 

nonaccrual restructured troubled loans. 

The broad category of other loans in 

Schedule HC–C, Memorandum item 1.b, 

and Schedule HC–N, Memorandum 

item 1.b, does not permit an adequate 

analysis of troubled debt restructurings. 

In addition, the disclosure requirements 

for troubled debt restructurings under 

generally accepted accounting 

principles (GAAP) do not exempt 

restructurings of loans to individuals for 

household, family, and other personal 

expenditures. Therefore, if more detail 

were to be added to match the reporting 

of loans in Schedule HC–C and 

Schedule HC–N, the new data would 

provide the Federal Reserve with the 

level of information necessary to assess 

BHCs’ troubled debt restructurings to 

the same extent that other loan quality 

and performance indicators can be 

assessed. However, the Federal Reserve 

notes that, under GAAP, troubled debt 

restructurings do not include changes in 

lease agreements 2 and therefore propose 

to exclude leases from Schedule HC–C, 

Memorandum item 1, and from 

Schedule HC–N, Memorandum item 1, 

and strike the phrase ‘‘and all other 

leases’’ from the caption of these data 

items. 

Thus, the proposed breakdowns of 

existing Memorandum item 1.b in both 

Schedule HC–C and Schedule HC–N 

would create new Memorandum items 

in both schedules covering troubled 

debt restructurings of 1–4 family 

residential construction loans, Other 

construction loans and all land 

development and other land loans, 

Loans secured by multifamily (5 or 

more) residential properties, Loans 

secured by owner-occupied nonfarm 

nonresidential properties, Loans 

secured by other nonfarm 

nonresidential properties, Commercial 

and industrial loans, and All other loans 

and all leases (including loans to 

individuals for household, family, and 

other personal expenditures).3 If 

restructured loans in any category of 

loans, as defined in Schedule HC–C, 

included in restructured, All other 

loans, exceeds 10 percent of the amount 

of restructured, All other loans, the 

amount of restructured loans in this 

category or categories would be 

itemized and described. 

Finally, Schedule HC–C, 

Memorandum item 1, and Schedule 

HC–N, Memorandum item 1, are 

intended to capture data on loans that 

have undergone troubled debt 

restructurings as that term is defined in 

GAAP. However, the captions of these 

two Memorandum items include only 

the term ‘‘restructured’’ rather than 

explicitly mentioning troubled debt 

restructurings, which has led to 

questions about the scope of these 

Memorandum items. Accordingly, the 

Federal Reserve proposed to revise the 

captions so that they clearly indicate 

that the loans to be reported in Schedule 

HC–C, Memorandum item 1, and 

Schedule HC–N, Memorandum item 1, 

are troubled debt restructurings. 

The banking agencies received 

comments from three bankers’ 

associations on the proposed additional 

detail in the Call Report on loans that 

have undergone troubled debt 

restructurings, comparable to the 

proposed changes to the FR Y–9C 

described above. Two of the 

commenters recommended the banking 

agencies defer the proposed troubled 

debt restructuring revisions, including 

the new breakdowns by loan category, 

until the Financial Accounting 

Standards Board (FASB) finalizes 

proposed clarifications to the 

accounting for troubled debt 

restructurings by creditors.4 In addition, 

two of the bankers’ associations 

recommended retaining the term 

‘‘restructured’’ in the caption titles 


emcdonald on DSK2BSOYB1PROD with NOTICES
11476 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 

5As described later in this notice, the other 

consumer loans loan category was proposed to be 

added to Schedule HC–K beginning March 31, 

2011. 

6Formerly Statement of Financial Accounting 

Standards (SFAS) No. 166, Accounting for Transfers 

of Financial Assets (FAS 166). 

7Formerly SFAS No. 167, Amendments to FASB 

Interpretation No. 46(R) (FAS 167). 

instead of changing to the term 

‘‘troubled debt restructurings,’’ stating 

that changing this term would result in 

the collection of only a subset of total 

restructurings and would misrepresent 

banks’ efforts to work with their 

customers. 

As noted above, BHCs currently 

report loans and leases restructured and 

in compliance with their modified terms 

in Schedule HC–C, Memorandum item 

1, and report past due and nonaccrual 

restructured loans in Schedule HC–N, 

Memorandum item 1. Although the 

captions for these line items do not use 

the term ‘‘troubled debt restructurings,’’ 

the line item instructions generally 

characterize loans reported in these 

items as troubled debt restructurings 

and direct the reader to the Glossary 

entry for ‘‘troubled debt restructurings’’ 

for further information. Furthermore, 

the Glossary entry states that ‘‘all loans 

that have undergone troubled debt 

restructurings and that are in 

compliance with their modified terms 

must be reported as restructured loans 

in Schedule HC–C, Memorandum item 

1.’’ Therefore, the Federal Reserve’s 

longstanding intent has been to collect 

information on troubled debt 

restructurings in these line items, and 

these items were not designed to 

include loan modifications and 

restructurings that do not constitute 

troubled debt restructurings (e.g., where 

a BHC grants a concession to a borrower 

who is not experiencing financial 

difficulties). 

The accounting standards for troubled 

debt restructurings are set forth in 

Accounting Standards Codification 

(ASC) Subtopic 310–40, Receivables— 

Troubled Debt Restructurings by 

Creditors (formerly FASB Statement No. 

15, ‘‘Accounting by Debtors and 

Creditors for Troubled Debt 

Restructurings,’’ as amended by FASB 

Statement No. 114, ‘‘Accounting by 

Creditors for Impairment of a Loan’’). 

This is the accounting basis for the 

current reporting of restructured 

troubled loans in existing Schedule HC– 

C, Memorandum item 1, and Schedule 

HC–N, Memorandum item 1. The 

proposed breakdown of the total amount 

of restructured ‘‘other loans’’ in existing 

Memorandum item 1.b in both 

schedules would result in additional 

detail on loans already within the scope 

of ASC Subtopic 310–40. To the extent 

the clarifications emanating from the 

FASB proposed accounting standards 

update may result in BHCs having to 

report certain loans as troubled debt 

restructurings that had not previously 

been identified as such, this accounting 

outcome will arise irrespective of the 

proposed breakdown of the ‘‘other 

loans’’ category in Schedule HC–C, 

Memorandum item 1, and Schedule 

HC–N, Memorandum item 1. Therefore, 

the Federal Reserve will implement the 

new breakdown for the reporting of 

troubled debt restructurings as 

proposed. 

2. Auto Loans 

The Federal Reserve proposed to add 

a breakdown of the other consumer 

loans 5 or all other loans loan categories 

contained in several schedules in order 

to separately collect information on auto 

loans. The affected schedules would be 

Schedule HC–C, Loans and Lease 

Financing Receivables; Schedule HC–D, 

Trading Assets and Liabilities; Schedule 

HC–K, Quarterly Averages; Schedule 

HC–N, Past Due and Nonaccrual Loans, 

Leases, and Other Assets; Schedule HI, 

Income Statement; and Schedule HI–B, 

Part I, Charge-offs and Recoveries on 

Loans and Leases. Auto loans would 

include loans arising from retail sales of 

passenger cars and other vehicles such 

as minivans, vans, sport-utility vehicles, 

pickup trucks, and similar light trucks 

for personal use. This new loan category 

would exclude loans to finance fleet 

sales, personal cash loans secured by 

automobiles already paid for, loans to 

finance the purchase of commercial 

vehicles and farm equipment, and lease 

financing. 

Automobile loans are a significant 

consumer business for many large 

BHCs. Because of the limited disclosure 

of auto lending on existing regulatory 

reports, supervisory oversight of auto 

lending is presently diminished by the 

need to rely on the examination process 

and public information sources that 

provide overall market information but 

not data on idiosyncratic risks. 

Roughly 65 percent of new vehicle 

sales and 40 percent of used vehicle 

sales are funded with auto loans. 

According to household surveys and 

data on loan originations, commercial 

banks are an important source of auto 

loans. In 2008, this sector originated 

approximately one-third of all auto 

loans. Finance companies, both 

independent and those affiliated with 

auto manufacturers, originated a bit 

more than one-third, while credit 

unions originated a bit less than onequarter. In addition to originating auto 

loans, some banks purchase auto loans 

originated by other entities, which 

suggests that commercial banks could be 

the largest holder of auto loans. 

Despite the importance of BHCs to the 

auto loan market, the Federal Reserve 

knows less about BHCs’ holdings of auto 

loans than is known about finance 

company, credit union, and savings 

association holdings of these loans. All 

nonbank depository institutions are 

required to report auto loans on their 

respective regulatory reports, including 

savings associations, which originate 

less than 5 percent of auto loans. On 

their regulatory reports, credit unions 

must provide not only the outstanding 

amount of new and used auto loans, but 

also the average interest rate and the 

number of loans. In a monthly survey, 

the Federal Reserve collects information 

on the amount of auto loans held by 

finance companies. As a consequence, 

during the financial crisis when funds 

were scarce for finance companies in 

general and the finance companies 

affiliated with automakers in particular, 

a lack of data on auto loans at banks 

hindered the Federal Reserve’s ability to 

estimate the extent to which BHCs were 

filling in the gap in auto lending left by 

the finance companies. 

Additional disclosure regarding 

consolidated auto loans on the FR Y–9C 

is especially important with the 

implementation of the amendments to 

FASBASC Topics 860, Transfers and 

Servicing, and 810, Consolidations, 

resulting from ASU No. 2009–16,6 and 

ASU No. 2009–17,7 respectively. Until 

2010, Schedule HC–S, Servicing, 

Securitization, and Asset Sale 

Activities, had provided the best 

supervisory information on auto lending 

because it included a separate breakout 

of securitized auto loans outstanding as 

well as securitized auto loan 

delinquencies and charge-offs. The 

accounting changes brought about by 

the amendments to ASC Topics 860 and 

810, however, mean that if the auto loan 

securitization vehicle is now required to 

be consolidated, securitized auto 

lending previously reported on 

Schedule HC–S will be grouped as part 

of other consumer loans or all other 

loans on Schedules HC–C, HC–K, HC– 

N, HI, and HI–B, Part I, which 

diminishes supervisors’ ability to assess 

auto loan exposures and performance. 

Finally, separating auto lending from 

other consumer loans will assist the 

Federal Reserve in understanding 

consumer lending activities at 

individual institutions. When an 

institution holds both auto loans and 

other types of consumer loans (other 

than credit cards, which are currently 

reported separately), the current 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 11477 

8Formerly paragraph 22A of FIN 46(R), as 

amended by FAS 167. 

9 Deloitte & Touche LLP, ‘‘Back on-balance sheet: 

Observations from the adoption of FAS 167,’’ May 

2010, page 4 (http://www.deloitte.com/view/en_US/ 

us/Services/audit-enterprise-risk-services/Financial

-Accounting-Reporting/f3a70ca28d9f8210

VgnVCM200000bb42f00aRCRD.htm). 

10See paragraphs A80 and A81 of FAS 167. 

combined reporting of these loans in the 

FR Y–9C tends to mask any significant 

differences that may exist in the 

performance of these portfolios. For 

example, a BHC could have a sizeable 

auto loan portfolio with low loan losses, 

but its other consumer lending, which 

could consist primarily of unsecured 

loans, could exhibit very high loss rates. 

The current blending of these divergent 

portfolios into a single loan category 

makes it difficult to adequately monitor 

consumer loan performance. 

The banking agencies received three 

comments from banks and one comment 

from a bankers’ association on the 

proposal to separately collect 

information on automobile loans in the 

Call Report schedules containing loan 

category data, comparable to the 

proposed changes to the FR Y–9C 

described above. The three banks 

requested an exemption from the 

proposed reporting requirements for 

smaller banks, with one of the banks 

seeking the exemption only for 

reporting auto loan interest income and 

quarterly averages. The bankers’ 

association stated that this revision 

should not create a significant burden 

for future loans because core data 

processors generally have the ability to 

break out loan types, but it also asked 

for clarification on the reporting for 

situations in which auto loans are 

extended for multiple purposes. In 

addition, the bankers’ association 

observed that some community banks 

do not have data readily available on the 

types or purposes of existing consumer 

loans, which would prevent them from 

determining the purpose of loans 

collateralized by autos, i.e., for the 

purchase of the auto or for some other 

purpose, without searching paper loan 

files. 

After considering these comments, the 

Federal Reserve continues to believe the 

reporting of information on auto loans 

from all respondent BHCs is necessary 

for the Federal Reserve to carry out its 

supervisory and regulatory 

responsibilities and meet other public 

policy purposes. However, the Federal 

Reserve agrees that the reporting of 

interest income and quarterly averages 

for auto loans may be particularly 

burdensome for BHCs to report. 

Therefore, the Federal Reserve will not 

implement the proposed collection of 

auto loan data on Schedule HI, Income 

Statement, or Schedule HC–K, Quarterly 

Averages, in 2011. Instead, the Federal 

Reserve will evaluate the auto loan data 

that will begin to be collected in the 

other FR Y–9C schedules in March 2011 

and reconsider whether to collect data 

on interest income and quarterly 

averages for auto loans. A decision to 

propose to collect auto loan interest 

income and quarterly averages would be 

subject to notice and comment. 

Regarding the request for clarification 

of the reporting treatment for auto loans 

extended for multiple purposes and 

existing consumer loans with autos as 

collateral, the Federal Reserve has 

concluded that, to reduce burden, all 

consumer loans originated or purchased 

before April 1, 2011, that are 

collateralized by automobiles, regardless 

of the purpose of the loan, should be 

classified as auto loans and included in 

the new FR Y–9C items for auto loans. 

For consumer loans originated or 

purchased on or after April 1, 2011, 

BHCs should exclude from auto loans 

any personal cash loans secured by 

automobiles already paid for and 

consumer loans where some of the 

proceeds are used to purchase an auto 

and the remainder of the proceeds are 

used for other purposes. 

3. Variable Interest Entities 

In June 2009, the FASB issued 

accounting standards that have changed 

the way entities account for 

securitizations and special purpose 

entities (SPE). ASU No. 2009–16 

(formerly FAS 166) revised ASC Topic 

860, Transfers and Servicing, by 

eliminating the concept of a qualifying 

special-purpose entity (QSPE) and 

changing the requirements for 

derecognizing financial assets. ASU No. 

2009–17 (formerly FAS 167) revised 

ASC Topic 810, Consolidations, by 

changing how a banking organization or 

other company determines when an 

entity that is insufficiently capitalized 

or is not controlled through voting or 

similar rights, for example a Variable 

Interest Entity (VIE), should be 

consolidated. For most banking 

organizations, ASU Nos. 2009–16 and 

2009–17 took effect January 1, 2010. 

Under ASC Topic 810, as amended, 

determining whether a BHC is required 

to consolidate a VIE depends on a 

qualitative analysis of whether that BHC 

has a ‘‘controlling financial interest’’ in 

the VIE and is therefore the primary 

beneficiary of the VIE. The analysis 

focuses on the BHC’s power over and 

interest in the VIE. With the removal of 

the QSPE concept from GAAP that was 

brought about in amended ASC Topic 

860, a BHC that transferred financial 

assets to an SPE that met the definition 

of a QSPE before the effective date of 

these amended accounting standards 

was required to evaluate whether, 

pursuant to amended ASC Topic 810, it 

must begin to consolidate the assets, 

liabilities, and equity of the SPE as of 

that effective date. Thus, when 

implementing amended ASC Topics 860 

and 810 at the beginning of 2010, BHCs 

began to consolidate certain previously 

off-balance-sheet securitization vehicles, 

asset-backed commercial paper 

conduits, and other structures. Going 

forward, BHCs with variable interests in 

new VIEs must evaluate whether they 

have a controlling financial interest in 

these entities and, if so, consolidate 

them. In addition, BHCs must 

continually reassess whether they are 

the primary beneficiary of VIEs in 

which they have variable interests. 

For those VIEs that banks must 

consolidate, the Federal Reserve’s FR Y– 

9C instructional guidance advises 

institutions to report the assets and 

liabilities of these VIEs on the balance 

sheet (Schedule HC) in the category 

appropriate to the asset or liability. 

However, ASC paragraph 810–10–45– 

25 8 requires a reporting entity to 

present ‘‘separately on the face of the 

statement of financial position: a. Assets 

of a consolidated VIE that can be used 

only to settle obligations of the 

consolidated VIE [and] b. Liabilities of 

a consolidated VIE for which creditors 

(or beneficial interest holders) do not 

have recourse to the general credit of the 

primary beneficiary.’’ This requirement 

has been interpreted to mean that ‘‘each 

line item of the consolidated balance 

sheet should differentiate which portion 

of those amounts meet the separate 

presentation conditions.’’ 9 In requiring 

separate presentation for these assets 

and liabilities, the FASB agreed with 

commenters on its proposed accounting 

standard on consolidation that ‘‘separate 

presentation * * * would provide 

transparent and useful information 

about an enterprise’s involvement and 

associated risks in a variable interest 

entity.’’ 10 The Federal Reserve concurs 

that separate presentation would 

provide similar benefits to them and 

other FR Y–9C users, particularly since 

data on securitized assets that are 

reconsolidated is no longer reported on 

Schedule HC–S, Servicing, 

Securitization, and Asset Sale 

Activities. 

Consistent with the presentation 

requirements discussed above, the 

Federal Reserve proposed to add a new 

Schedule HC–V, Variable Interest 

Entities, to the FR Y–9C in which BHCs 

would report a breakdown of the assets 

of consolidated VIEs that can be used 


emcdonald on DSK2BSOYB1PROD with NOTICES
11478 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 

only to settle obligations of the 

consolidated VIEs and liabilities of 

consolidated VIEs for which creditors 

do not have recourse to the general 

credit of the reporting BHC. The 

following proposed categories for these 

assets and liabilities would include 

some of the same categories presented 

on the balance sheet (Schedule HC): (1) 

Cash and balances due from depository 

institutions, (2) Held-to-maturity 

securities, (3) Available-for-sale 

securities, (4) Securities purchased 

under agreements to resell, (5) Loans 

and leases held for sale, (6) Loans and 

leases, net of unearned income, (7) Less: 

Allowance for loan and lease losses, (8) 

Trading assets (other than derivatives), 

(9) Derivative assets, (10) Other real 

estate owned, (11) Other assets, (12) 

Securities sold under agreements to 

repurchase, (13) Derivative liabilities, 

(14) Other borrowed money (other than 

commercial paper), (15) Commercial 

paper, and (16) Other liabilities. These 

assets and liabilities would be presented 

separately for securitization trusts, 

asset-backed commercial paper 

conduits, and other VIEs. 

In addition, the Federal Reserve 

proposed to include two separate data 

items in new Schedule HC–V in which 

BHCs would report the total amounts of 

all other assets and all other liabilities 

of consolidated VIEs (i.e., all assets of 

consolidated VIEs that are not dedicated 

solely to settling obligations of the VIE 

and all liabilities of consolidated VIEs 

for which creditors have recourse to the 

general credit of the reporting BHC). 

The collection of this information 

would help the Federal Reserve 

understand the total magnitude of 

consolidated VIEs. These assets and 

liabilities would also be reported 

separately for securitization trusts, 

asset-backed commercial paper 

conduits, and other VIEs. The asset and 

liability information collected in 

Schedule HC–V would represent 

amounts included in the reporting 

BHC’s consolidated assets and liabilities 

reported on Schedule HC, Balance 

Sheet, i.e., after eliminating 

intercompany transactions. 

The banking agencies received one 

comment from a bankers’ association 

that addressed proposed Call Report 

Schedule RC–V, which is comparable to 

proposed FR Y–9C Schedule HC–V. The 

bankers’ association recommended a 

delayed effective date to allow sufficient 

time for systems modifications. 

Because the FR Y–9C balance sheet is 

completed on a consolidated basis, the 

VIE amounts that BHCs would report in 

new Schedule HC–V are amounts that, 

through the consolidation process, 

already must be reported in the 

appropriate balance sheet asset and 

liability categories. These balance sheet 

categories, by and large, have been 

carried over into Schedule HC–V. 

Schedule HC–V distinguishes between 

assets of consolidated VIEs that can be 

used only to settle obligations of the 

consolidated VIEs and assets not 

meeting this condition as well as 

liabilities of consolidated VIEs for 

which creditors do not have recourse to 

the general credit of the reporting BHC 

and liabilities not meeting this 

condition. This distinction is based on 

existing disclosure requirements 

applicable to financial statements 

prepared in accordance with U.S. 

GAAP, to which the BHCs likely to have 

material amounts of consolidated VIE 

assets and liabilities to report have been 

subject for one year. Thus, these BHCs 

should have a process in place, even if 

manual, for segregating VIE assets and 

liabilities based on this distinction. 

The Federal Reserve recognizes that 

the proposed separate reporting of 

consolidated VIE assets and liabilities 

by the type of VIE activity, i.e., 

securitization vehicles, asset-backed 

commercial paper conduits, and other 

VIEs, goes beyond the disclosure 

requirements in U.S. GAAP. Otherwise, 

the proposed data requirements for 

Schedule HC–V have been based 

purposely on the GAAP framework. 

Thus, the Federal Reserve has 

concluded that it is appropriate to 

proceed with the addition of new 

Schedule HC–V in March 2011, as 

proposed. BHCs are reminded that, as 

mentioned above, they may provide 

reasonable estimates in their March 31, 

2011, FR Y–9C report for any new or 

revised item initially required to be 

reported as of that date for which the 

requested information is not readily 

available. 

4. Life Insurance Assets 

BHCs purchase and hold bank-owned 

life insurance (BOLI) policies as assets, 

the premiums for which may be used to 

acquire general account or separate 

account life insurance policies. BHCs 

currently report the aggregate amount of 

their life insurance assets in data item 

5 of Schedule HC–F, Other Assets, 

without regard to the type of policies 

they hold. 

Many BHCs have BOLI assets, and the 

distinction between those life insurance 

policies that represent general account 

products and those that represent 

separate account products has meaning 

with respect to the degree of credit risk 

involved as well as performance 

measures for the life insurance assets in 

a volatile market environment. In a 

general account policy, the general 

assets of the insurance company issuing 

the policy support the policy’s cash 

surrender value. In a separate account 

policy, the policy’s cash surrender value 

is supported by assets segregated from 

the general assets of the insurance 

carrier. Under such an arrangement, the 

policyholder neither owns the 

underlying separate account created by 

the insurance carrier on its behalf nor 

controls investment decisions in the 

account. Nevertheless, the policyholder 

assumes all investment and price risk. 

A number of BHCs holding separate 

account life insurance policies have 

recorded significant losses in recent 

years due to the volatility in the markets 

and the vulnerability to market 

fluctuations of the instruments that are 

investment options in separate account 

life insurance policies. Information 

distinguishing between the cash 

surrender values of general account and 

separate account life insurance policies 

would allow the Federal Reserve to 

track BHCs’ holdings of both types of 

life insurance policies with their 

differing risk characteristics and 

changes in their carrying amounts 

resulting from their performance over 

time. Accordingly, the Federal Reserve 

proposed to split data item 5 of 

Schedule HC–F into two data items: 

Data item 5.a, General account life 

insurance assets, and data item 5.b, 

Separate account life insurance assets. 

The banking agencies received 

comments from two insurance 

consultants and an insurance company 

supporting the proposed revision to 

provide a breakdown of life insurance 

assets by type of policy on the Call 

Report, comparable to the proposed 

changes to the FR Y–9C described 

above. However, all three commenters 

noted that the evolution of life 

insurance products in recent years has 

led to a third type of policy becoming 

more prevalent in the banking industry: 

Hybrid accounts. Such accounts 

combine features of general and separate 

account products by providing the 

additional asset protection offered by 

separate accounts while also providing 

a guaranteed minimum interestcrediting rate, which is common to 

general accounts. They recommended 

that the proposal be revised from a twoway to a three-way breakdown of life 

insurance assets or, although not the 

preferable approach, advise banking 

institutions with hybrid account life 

insurance assets to report them together 

with general account life insurance 

assets because they have more general 

account characteristics. 

Because of the Federal Reserve’s 

interest in being better able to 

understand the risk characteristics of 


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Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 11479 

BHCs’ holdings of life insurance assets, 

the Federal Reserve will implement the 

three-way breakdown of these assets 

consistent with the commenters’ 

recommendation. 

5. Instructional Revisions 

A. Reporting of 1–4 Family 

Residential Mortgages Held for Trading 

in Schedule HC–P 

The Federal Reserve began collecting 

information in Schedule HC–P, 1–4 

Family Residential Mortgage Banking 

Activities in Domestic Offices, in 

September 2006. At that time, the 

instructions for Schedule HC–C, Loans 

and Lease Financing Receivables, were 

written to indicate that loans generally 

could not be classified as held for 

trading. Therefore, all 1–4 family 

residential mortgage loans designated as 

held for sale were reportable in 

Schedule HC–P. In March 2008, the 

Federal Reserve provided instructional 

guidance establishing conditions under 

which BHCs were permitted to classify 

certain assets (e.g., loans) as trading and 

specified that loans classified as trading 

assets should be excluded from 

Schedule HC–C, Loans and Lease 

Financing Receivables, and reported 

instead in Schedule HC–D, Trading 

Assets and Liabilities (if the reporting 

threshold for this schedule were met). 

However, the Federal Reserve neglected 

to address the reporting treatment on 

Schedule HC–P of 1–4 family residential 

loans that met the conditions for 

classification as trading assets. 

Therefore, the Federal Reserve proposed 

to correct this by providing explicit 

instructional guidance that all 1–4 

family residential mortgage banking 

activities, whether held for sale or 

trading purposes, are reportable on 

Schedule HC–P. 

The banking agencies received one 

comment from a bankers’ association on 

the proposed guidance on the reporting 

of 1–4 family residential mortgages held 

for trading in Call Report Schedule RC– 

P, comparable to the proposed guidance 

to the FR Y–9C described above. The 

commenter supported the proposed 

clarification and requested further 

clarification on the reporting of 

repurchases and indemnifications in 

this schedule. The commenter suggested 

separate reporting of loan repurchases 

from indemnifications for all subitems 

of Call Report Schedule RC–P, item 6, 

‘‘Repurchases and indemnifications of 

1–4 family residential mortgage loans 

during the quarter.’’ 

In December 2010, the Federal 

Reserve clarified the FR Y–9C reporting 

instructions for Schedule HC–P, item 6, 

to explain which repurchases of 1–4 

family residential mortgage loans are 

reportable in this item. Specifically, 

instructional guidance was provided 

stating that BHCs should exclude 1–4 

family residential mortgage loans that 

have been repurchased solely at the 

discretion of the BHC from item 6. The 

Federal Reserve does not believe there 

is a supervisory need to separate the 

reporting of loan repurchases from 

indemnifications in Schedule HC–P, 

item 6. 

B. Maturity and Repricing Data for 

Assets and Liabilities at Contractual 

Ceilings and Floors 

BHCs report maturity and repricing 

data for debt securities (not held for 

trading) in Schedule HC–B, Securities. 

The Federal Reserve uses these data to 

assess, at a broad level, a BHC’s 

exposure to interest rate risk. The 

instructions for reporting the maturity 

and repricing data currently require that 

when the interest rate on a floating rate 

instrument has reached a contractual 

floor or ceiling level, which is a form of 

embedded option, the instrument is to 

be treated as ‘‘fixed rate’’ rather than 

‘‘floating rate’’ until the rate is again free 

to float. As a result, a floating rate 

instrument whose interest rate has 

fallen to its floor or risen to its ceiling 

is reported based on the time remaining 

until its contractual maturity date rather 

than the time remaining until the next 

interest rate adjustment date (or the 

contractual maturity date, if earlier). 

This reporting treatment is designed to 

capture the potential effect of the 

embedded option under particular 

interest rate scenarios. 

The American Bankers Association 

(ABA) requested that the Federal 

Reserve reconsider the reporting 

treatment for floating rate instruments 

with contractual floors and ceilings. 

More specifically, the ABA 

recommended revising the reporting 

instructions so that floating rate 

instruments would always be reported 

based on the time remaining until the 

next interest rate adjustment date 

without regard to whether the rate on 

the instrument has reached a 

contractual floor or ceiling. 

The Federal Reserve concluded that 

an instructional revision was warranted, 

but the extent of the revision should be 

narrower than recommended by the 

ABA. The Federal Reserve concluded 

that when a floating rate instrument is 

at its contractual floor or ceiling and the 

embedded option has intrinsic value to 

the BHC, the floor or ceiling should be 

ignored and the instrument should be 

treated as a floating rate instrument. 

However, if the embedded option has 

intrinsic value to the BHC’s 

counterparty, the contractual floor or 

ceiling should continue to be taken into 

account and the instrument should be 

treated as a fixed rate instrument. For 

example, when the interest rate on a 

floating rate loan reaches its contractual 

ceiling, the embedded option 

represented by the ceiling has intrinsic 

value to the borrower and is a detriment 

to the BHC because the loan’s yield to 

the BHC is lower than what it would 

have been without the ceiling. When the 

interest rate on a floating rate loan 

reaches its contractual floor, the 

embedded option represented by the 

floor has intrinsic value to the BHC and 

is a benefit to the BHC because the 

loan’s yield to the BHC is higher than 

what it would have been without the 

floor. 

Accordingly, the Federal Reserve 

proposed to revise the instructions for 

reporting maturity and repricing data in 

Schedule HC–B. As proposed, the 

instructions would indicate that a 

floating rate asset that has reached its 

contractual ceiling and a floating rate 

liability that has reached its contractual 

floor would be treated as a fixed rate 

instrument and reported based on the 

time remaining until its contractual 

maturity date. In contrast, the 

instructions would state that a floating 

rate asset that has reached its 

contractual floor and a floating rate 

liability that has reached its contractual 

ceiling would be treated as a floating 

rate instrument and reported based on 

the time remaining until the next 

interest rate adjustment date (or the 

contractual maturity date, if earlier). 

The banking agencies received 

comments from two bankers’ 

associations on this proposed 

instructional change. One bankers’ 

association recommended the banking 

agencies adopt their proposed approach 

only for floating rate loans reported in 

Schedule RC–C, part I. This bankers’ 

association opposed extending the same 

proposed approach to the other three 

Call Report schedules in which 

repricing data are reported for certain 

other floating rate instruments because 

its ‘‘members believe that not enough 

research has been completed’’ to 

understand the effect of the proposed 

instructional change on how these other 

instruments would be reported. The 

other bankers’ association 

recommended against proceeding with 

the proposed instructional change 

because of the implementation burden 

associated with the multiple systems 

that would need to be revised. This 

association also observed that the 

revised information for floating rate 

instruments at contractual ceilings and 

floors would be commingled with the 

maturity and repricing information for 


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11480 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 

all of the other instruments in the same 

asset or liability category. 

After considering the comments 

received, the banking agencies have 

decided not to change the instructions 

for reporting repricing information for 

floating rate instruments at contractual 

ceilings and floors. Such floating rate 

instruments should continue to be 

reported in accordance with the 

longstanding requirement that the 

instruments be treated as ‘‘fixed rate’’ 

rather than ‘‘floating rate’’ until their rate 

is again free to float. To maintain 

consistency between the Call Report and 

FR Y–9C reporting instructions, the 

Federal Reserve will retain the current 

instructions for reporting maturity and 

repricing information on FR Y–9C 

Schedule HC–B. 

Revisions—FR Y–9LP 

The Federal Reserve proposed to 

make the following revision to the FR 

Y–9LP effective as of March 31, 2011. 

Troubled Debt Restructurings 

To be consistent with revisions 

proposed for the FR Y–9C, the Federal 

Reserve proposed to modify the 

instructions for Schedule PC–B— 

Memoranda item 8, Loans and leases of 

the parent restructured in compliance 

with modified terms, to clearly indicate 

that the loans to be reported in this data 

item should be troubled debt 

restructurings and to exclude leases. 

Also the phrase ‘‘and leases’’ would be 

stricken from the caption of this data 

item. Under GAAP, troubled debt 

restructurings do not include changes in 

lease agreements. Also consistent with 

the proposed change to the FR Y–9C, 

the Federal Reserve proposed to revise 

the instructions for this data item to 

include (currently excluded) loans to 

individuals for household, family, and 

other personal expenditures and all 

loans secured by 1–4 family residential 

properties whose terms have been 

modified in troubled debt 

restructurings. 

Like their comments to proposed 

revisions to the FR Y–9C, two bankers’ 

associations commented that the 

Federal Reserve should defer proposed 

FR Y–9LP instructional modifications 

until the FASB finalizes proposed 

clarifications to the accounting for 

troubled debt restructurings by 

creditors. As discussed above, ASC 

Subtopic 310–40 provides the 

accounting basis for the current 

reporting of restructured troubled loan 

information on the FR Y–9LP. To the 

extent the clarifications emanating from 

the FASB proposed accounting 

standards update may result in BHCs 

having to report certain loans as 

troubled debt restructurings that had not 

previously been identified as such, this 

accounting outcome will arise 

irrespective of the proposed 

instructional modifications to the FR Y– 

9LP. Therefore, the Federal Reserve will 

implement the instructional 

modifications for the reporting of 

troubled debt restructurings as 

proposed. 

2. Report title: Financial Statements of 

U.S. Nonbank Subsidiaries of U.S. Bank 

Holding Companies. 

Agency form number: FR Y–11. 

OMB control number: 7100–0244. 

Effective Date: March 31, 2011. 

Frequency: Quarterly and annually. 

Reporters: Bank holding companies. 

Annual reporting hours: FR Y–11 

(quarterly): 15,966; FR Y–11 (annual): 

2,768. 

Estimated average hours per response: 

FR Y–11 (quarterly): 6.80; FR Y–11 

(annual): 6.80. 

Number of respondents: FR Y–11 

(quarterly): 587; FR Y–11 (annual): 407. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c)). Confidential treatment 

is not routinely given to the data in 

these reports. However, confidential 

treatment for the reporting information, 

in whole or in part, can be requested in 

accordance with the instructions to the 

form, pursuant to sections (b)(4), (b)(6) 

and (b)(8) of the Freedom of Information 

Act [5 U.S.C. 522(b)(4), (b)(6) and (b)(8)]. 

Abstract: The FR Y–11 reports collect 

financial information for individual 

non-functionally regulated U.S. 

nonbank subsidiaries of domestic BHCs. 

BHCs file the FR Y–11 on a quarterly or 

annual basis according to filing criteria. 

The FR Y–11 data are used with other 

BHC data to assess the condition of 

BHCs that are heavily engaged in 

nonbanking activities and to monitor 

the volume, nature, and condition of 

their nonbanking operations. 

Current Actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, with revision, 

of the Financial Statements of U.S. 

Nonbank Subsidiaries of U.S. Bank 

Holding Companies. The comment 

period expired on January 3, 2011. The 

Federal Reserve received one comment 

from a bankers’ association 

recommending that the FR Y–11 and the 

FR 2314 be combined into a single form 

to enable the use of vendor software and 

electronic submission. The commenter 

stated that such functionalities are 

available on the FR Y–11 but are not 

available on the FR 2314. 

The Federal Reserve has offered BHCs 

the option of submitting their FR 2314 

reports electronically for several years. 

Any BHC interested in submitting their 

reports electronically should contact 

their Reserve Bank concerning 

procedures for electronic submission. 

Therefore, the Federal Reserve will not 

merge the reporting forms. As no 

comments were received on the 

proposed changes, the Federal Reserve 

will implement the changes as initially 

proposed. 

3. Report title: Financial Statements of 

Foreign Subsidiaries of U.S. Banking 

Organizations. 

Agency form number: FR 2314. 

OMB control number: 7100–0073. 

Effective Date: March 31, 2011. 

Frequency: Quarterly and annually. 

Reporters: Foreign subsidiaries of U.S. 

state member banks, BHCs, and Edge or 

agreement corporations. 

Annual reporting hours: FR 2314 

(quarterly): 16,394; FR 2314 (annual): 

3,379. 

Estimated average hours per response: 

FR 2314 (quarterly): 6.60; FR 2314 

(annual): 6.60. 

Number of respondents: FR 2314 

(quarterly): 621; FR 2314 (annual): 512. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 324, 602, 625, and 1844(c)). 

Confidential treatment is not routinely 

given to the data in these reports. 

However, confidential treatment for the 

reporting information, in whole or in 

part, can be requested in accordance 

with the instructions to the form, 

pursuant to sections (b)(4), (b)(6) and 

(b)(8) of the Freedom of Information Act 

[5 U.S.C. 522(b)(4), (b)(6) and (b)(8)]. 

Abstract: The FR 2314 reports collect 

financial information for nonfunctionally regulated direct or indirect 

foreign subsidiaries of U.S. state 

member banks (SMBs), Edge and 

agreement corporations, and BHCs. 

Parent organizations (SMBs, Edge and 

agreement corporations, or BHCs) file 

the FR 2314 on a quarterly or annual 

basis according to filing criteria. The FR 

2314 data are used to identify current 

and potential problems at the foreign 

subsidiaries of U.S. parent companies, 

to monitor the activities of U.S. banking 

organizations in specific countries, and 

to develop a better understanding of 

activities within the industry, in 

general, and of individual institutions, 

in particular. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, with revision, 

of the Financial Statements of Foreign 

Subsidiaries of U.S. Banking 

Organizations. The comment period 

expired on January 3, 2011. The Federal 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 11481 

Reserve received one comment from a 

bankers’ association recommending that 

the FR Y–11 and the FR 2314 be 

combined into a single form to enable 

the use of vendor software and 

electronic submission. The commenter 

stated that such functionalities are 

available on the FR Y–11 but are not 

available on the FR 2314. 

The Federal Reserve has offered BHCs 

the option of submitting their FR 2314 

reports electronically for several years. 

Any BHC interested in submitting their 

reports electronically should contact 

their Reserve Bank concerning 

procedures for electronic submission. 

Therefore, the Federal Reserve will not 

merge the reporting forms. As no 

comments were received on the 

proposed changes, the Federal Reserve 

will implement the changes as initially 

proposed. 

4. Report title: Financial Statements of 

U.S. Nonbank Subsidiaries Held by 

Foreign Banking Organizations. 

Agency form number FR Y–7N. 

OMB control number: 7100–0125. 

Effective Date: March 31, 2011. 

Frequency: Quarterly and annually. 

Reporters: Foreign banking 

organizations. 

Annual reporting hours: FR Y–7N 

(quarterly): 4,978; FR Y–7N (annual): 

1,299. 

Estimated average hours per response: 

FR Y–7N (quarterly): 6.80; FR Y–7N 

(annual): 6.80. 

Number of respondents: FR Y–7N 

(quarterly): 183; FR Y–7N (annual): 191. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c), 3106(c), and 3108). 

Confidential treatment is not routinely 

given to the data in these reports. 

However, confidential treatment for 

information, in whole or in part, on any 

of the reporting forms can be requested 

in accordance with the instructions to 

the form, pursuant to sections (b)(4) and 

(b)(6) of the Freedom of Information Act 

[5 U.S.C. 522(b)(4) and (b)(6)]. 

Abstract: The FR Y–7N collects 

financial information for nonfunctionally regulated U.S. nonbank 

subsidiaries held by foreign banking 

organizations (FBOs) other than through 

a U.S. BHC, U.S. financial holding 

company (FHC) or U.S. bank. FBOs file 

the FR Y–7N on a quarterly or annual 

basis. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, with revision, 

of the Financial Statements of U.S. 

Nonbank Subsidiaries Held by Foreign 

Banking Organizations. The comment 

period expired on January 3, 2011. As 

no comments were received on the 

proposed changes, the Federal Reserve 

will implement the changes as initially 

proposed. 

5. Report title: Consolidated Report of 

Condition and Income for Edge and 

Agreement Corporations. 

Agency form number: FR 2886b. 

OMB control number: 7100–0086. 

Effective Date: March 31, 2011. 

Frequency: Quarterly. 

Reporters: Edge and agreement 

corporations. 

Annual reporting hours: 1,679. 

Estimated average hours per response: 

15.15 banking corporations, 9.60 

investment corporations. 

Number of respondents: 13 banking 

corporations, 42 investment 

corporations. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 602 and 625). Schedules RC–M 

(with the exception of item 3) and RC– 

V are held as confidential pursuant to 

section (b)(4) of the Freedom of 

Information Act (5 U.S.C. 552(b)(4)). 

Abstract: The mandatory FR 2886b 

comprises a balance sheet, income 

statement, two schedules reconciling 

changes in capital and reserve accounts, 

and 11 supporting schedules and it 

parallels the Call Report that 

commercial banks file. The Federal 

Reserve uses the data collected on the 

FR 2886b to supervise Edge 

corporations, identify present and 

potential problems, and monitor and 

develop a better understanding of 

activities within the industry. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, with revision, 

of the Consolidated Report of Condition 

and Income for Edge and Agreement 

Corporations. The comment period 

expired on January 3, 2011. As no 

comments were received on the 

proposed changes, the Federal Reserve 

will implement the changes as initially 

proposed. 

Final approval under OMB delegated 

authority of the extension for three 

years, without revision of the following 

reports: 

1. Report title: Financial Statements 

for Bank Holding Companies. 

Agency form number: FR Y–9SP, FR 

Y–9ES, and FR Y–9CS. 

OMB control number: 7100–0128. 

Frequency: Quarterly and annually. 

Reporters: Bank holding companies. 

Annual reporting hours: FR Y–9SP: 

45,209; FR Y–9ES: 44; FR Y–9CS: 400. 

Estimated average hours per response: 

FR Y–9SP: 5.40; FR Y–9ES: 30 minutes; 

FR Y–9CS: 30 minutes. 

Number of respondents: FR Y–9SP: 

4,186; FR Y–9ES: 87; FR Y–9CS: 200. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c)). Confidential treatment 

is not routinely given to the data in 

these reports. However, confidential 

treatment for the reporting information, 

in whole or in part, can be requested in 

accordance with the instructions to the 

form, pursuant to sections (b)(4) and 

(b)(6) of the Freedom of Information Act 

(5 U.S.C. 522(b)(4), (b)(6)). 

Abstract: The FR Y–9SP is a parent 

company only financial statement filed 

by smaller BHCs. Respondents include 

BHCs with total consolidated assets of 

less than $500 million. This form is a 

simplified or abbreviated version of the 

more extensive parent company only 

financial statement for large BHCs (FR 

Y–9LP). This report is designed to 

obtain basic balance sheet and income 

information for the parent company, 

information on intangible assets, and 

information on intercompany 

transactions. 

The FR Y–9ES collects financial 

information from ESOPs that are also 

BHCs on their benefit plan activities. It 

consists of four schedules: Statement of 

Changes in Net Assets Available for 

Benefits, Statement of Net Assets 

Available for Benefits, Memoranda, and 

Notes to the Financial Statements. The 

FR Y–9CS is a supplemental report that 

may be utilized to collect additional 

information deemed to be critical and 

needed in an expedited manner from 

BHCs. The information is used to assess 

and monitor emerging issues related to 

BHCs. It is intended to supplement the 

FR Y–9 reports, which are used to 

monitor BHCs between on-site 

inspections. The data items of 

information included on the 

supplement may change as needed. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, without 

revision, of the Financial Statements for 

Bank Holding Companies. The comment 

period expired on January 3, 2011. The 

Federal Reserve did not receive any 

comment letters. 

2. Report title: Abbreviated Financial 

Statements of U.S. Nonbank 

Subsidiaries of U.S. Bank Holding 

Companies. 

Agency form number: FR Y–11S. 

OMB control number: 7100–0244. 

Frequency: Annually. 

Reporters: Bank holding companies. 

Annual reporting hours: 774. 

Estimated average hours per response: 

1.0. 

Number of respondents: 774. 


emcdonald on DSK2BSOYB1PROD with NOTICES
11482 Federal Register / Vol. 76, No. 41 / Wednesday, March 2, 2011 / Notices 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c)). Confidential treatment 

is not routinely given to the data in 

these reports. However, confidential 

treatment for the reporting information, 

in whole or in part, can be requested in 

accordance with the instructions to the 

form, pursuant to sections (b)(4), (b)(6), 

and (b)(8) of the Freedom of Information 

Act [5 U.S.C. 522(b)(4)]. 

Abstract: The FR Y–11S is an 

abbreviated reporting form that collects 

four data items: Net income, total assets, 

equity capital, and total off-balancesheet data items. The FR Y–11S is filed 

annually, as of December 31, by top-tier 

BHCs for each individual nonbank 

subsidiary (that does not meet the 

criteria for filing the detailed report) 

with total assets of at least $50 million, 

but less than $250 million, or with total 

assets greater than 1 percent of the total 

consolidated assets of the top-tier 

organization. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, without 

revision, of the Abbreviated Financial 

Statements of U.S. Nonbank 

Subsidiaries of U.S. Bank Holding 

Companies. The comment period 

expired on January 3, 2011. The Federal 

Reserve did not receive any comment 

letters. 

3. Report title: Abbreviated Financial 

Statements of Foreign Subsidiaries of 

U.S. Banking Organizations. 

Agency form number: FR 2314S. 

OMB control number: 7100–0073. 

Frequency: Annually. 

Reporters: U.S. state member banks, 

BHCs, and Edge or agreement 

corporations. 

Annual reporting hours: 787. 

Estimated average hours per response: 

1.0. 

Number of respondents: 787. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 324, 602, 625, and 1844(c)). 

Confidential treatment is not routinely 

given to the data in these reports. 

However, confidential treatment for the 

reporting information, in whole or in 

part, can be requested in accordance 

with the instructions to the form, 

pursuant to sections (b)(4), (b)(6) and 

(b)(8) of the Freedom of Information Act 

[5 U.S.C. 522(b)(4), (b)(6) and (b)(8)]. 

Abstract: The FR 2314S is an 

abbreviated reporting form that collects 

four data items: Net income, total assets, 

equity capital, and total off-balancesheet data items. The FR 2314S is filed 

annually, as of December 31, for each 

individual subsidiary (that does not 

meet the criteria for filing the detailed 

report) with assets of at least $50 

million but less than $250 million, or 

with total assets greater than 1 percent 

of the total consolidated assets of the 

top-tier organization. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, without 

revision, of the Abbreviated Financial 

Statements of Foreign Subsidiaries of 

U.S. Banking Organizations. The 

comment period expired on January 3, 

2011. The Federal Reserve did not 

receive any comment letters. 

4. Report title: Financial Reports of 

Foreign Banking Organizations. 

Agency form number: FR Y–7NS, FR 

Y–7Q. 

OMB control number: 7100–0125. 

Frequency: Annually and quarterly. 

Reporters: Foreign banking 

organizations. 

Annual reporting hours: FR Y–7NS: 

237; FR Y–7Q (quarterly): 340; FR Y–7Q 

(annual): 111. 

Estimated average hours per response: 

FR Y–7NS: 1.0; FR Y–7Q (quarterly): 

1.25; FR Y–7Q (annual): 1.0. 

Number of respondents: FR Y–7NS: 

237; FR Y–7Q (quarterly): 68; FR Y–7Q 

(annual): 111. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c), 3106(c), and 3108). 

Confidential treatment is not routinely 

given to the data in these reports. 

However, confidential treatment for 

information, in whole or in part, on any 

of the reporting forms can be requested 

in accordance with the instructions to 

the form, pursuant to sections (b)(4) and 

(b)(6) of the Freedom of Information Act 

[5 U.S.C. 522(b)(4) and (b)(6)]. 

Abstract: The FR Y–7NS collect 

financial information for nonfunctionally regulated U.S. nonbank 

subsidiaries held by FBOs other than 

through a U.S. BHC, U.S. FHC, or U.S. 

bank. The FR Y–7NS is filed annually, 

as of December 31, by top-tier FBOs for 

each individual nonbank subsidiary 

(that does not meet the filing criteria for 

filing the detailed report) with total 

assets of at least $50 million, but less 

than $250 million. The FR Y–7Q 

collects consolidated regulatory capital 

information from all FBOs either 

quarterly or annually. FBOs that have 

effectively elected to become FHCs file 

the FR Y–7Q quarterly. All other FBOs 

(those that have not elected to become 

FHCs) file the FR Y–7Q annually. 

Current actions: On November 3, 

2010, the Federal Reserve published a 

notice in the Federal Register (75 FR 

67721) requesting public comment for 

60 days on the extension, without 

revision, of the Financial Reports of 

Foreign Banking Organizations. The 

comment period expired on January 3, 

2011. The Federal Reserve did not 

receive any comment letters. 

Board of Governors of the Federal Reserve 

System, February 24, 2011. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2011–4568 Filed 3–1–11; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Request for Comments on Human 

Subjects Protections in Scientific 

Studies 

AGENCY: The Presidential Commission 

for the Study of Bioethical Issues, Office 

of the Secretary, Department of Health 

and Human Services. 

ACTION: Notice. 

SUMMARY: The Presidential Commission 

for the Study of Bioethical Issues is 

requesting public comment on the 

Federal and international standards for 

protecting the health and well-being of 

participants in scientific studies 

supported by the Federal Government. 

DATES: To assure consideration, 

comments must be received by May 2, 

2011. 

ADDRESSES: Individuals, groups, and 

organizations interested in commenting 

on this topic may submit comments by 

e-mail to info@bioethics.gov or by mail 

to the following address: Public 

Commentary, The Presidential 

Commission for the Study of Bioethical 

Issues, 1425 New York Ave. NW., Suite 

C–100, Washington, DC 20005. 

FOR FURTHER INFORMATION CONTACT: 

Hillary Wicai Viers, Communications 

Director, The Presidential Commission 

for the Study of Bioethical Issues, 1425 

New York Avenue, NW., Suite C–100, 

Washington, DC 20005. Telephone: 

202–233–3963. E-mail: 

Hillary.Viers@bioethics.gov. Additional 

information may be obtained at http:// 

www.bioethics.gov. 

SUPPLEMENTARY INFORMATION: On 

November 24, 2009, the President 

established the Presidential Commission 

for the Study of Bioethical Issues 

(Commission) to advise him on 

bioethical issues generated by novel and 

emerging research in biomedicine and 

related areas of science and technology. 

The Commission is charged to identify 

and promote policies and practices that 

assure ethically responsible conduct of 

scientific research, healthcare delivery, 


emcdonald on DSK2BSOYB1PROD with NOTICES