Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Notices 62269

Title: Maritime Security Discussion 

Agreement. 

Parties: China Shipping Container 

Lines, Co., Ltd.; CMA CGM, S.A.; 

COSCO Container Lines Company, Ltd.; 

Evergreen Marine Corp.; Hanjin 

Shipping Company, Ltd.; Hapag Lloyd 

Container Linie GmbH; Hyundai 

Merchant Marine Co., Ltd.; Kawasaki 

Kisen Kaisha Ltd.; Nippon Yusen 

Kaisha; Orient Overseas Container Line 

Limited; P&O Nedlloyd Limited; Yang 

Ming Marine Transport Corp.; Zim 

Integrated Shipping Services, Ltd.; 

Alabama State Port Authority; APM 

Terminals North America, Inc.; Ceres 

Terminals, Inc.; Cooper/T. Smith 

Stevedoring Co., Inc.; Eagle Marine 

Services Ltd.; Global Terminal & 

Container Services, Inc.; Howland Hook 

Container Terminal, Inc.; Husky 

Terminal & Stevedoring, Inc.; 

International Shipping Agency; 

International Transportation Service, 

Inc.; Lambert’s Point Docks Inc.; Long 

Beach Container Terminal, Inc.; Maersk 

Pacific Ltd.; Maher Terminals, Inc.; 

Marine Terminals Corp.; Maryland Port 

Administration; Massachusetts Port 

Authority; Metropolitan Stevedore Co.; 

P&O Ports North American, Inc.; Port of 

Tacoma; South Carolina State Ports 

Authority; Stevedoring Services of 

America, Inc.; Trans Bay Container 

Terminal, Inc.; TraPac Terminals; 

Universal Maritime Service Corp.; 

Virginia International Terminals; and 

Yusen Terminals, Inc. 

Filing Parties: Carol N. Lambos; 

Lambos & Junge; 29 Broadway, 9th 

Floor; New York, NY 10006 and Charles 

T. Carroll, Jr.; Carroll & Froelich, PLLC; 

2011 Pennsylvania Avenue, NW.; Suite 

301; Washington, DC 20006. 

Synopsis: The amendment removes 

Australia-New Zealand Direct Line; CP 

Ships (UK) Limited; Canada Maritime; 

Contship Container Lines; Italia di 

Navigazione, LLC; Lykes Lines Limited, 

LLC; and TMM Lines Limited, LLC as 

carrier participants in the agreement.

Dated: October 19, 2004.

By Order of the Federal Maritime 

Commission. 

Bryant L. VanBrakle, 

Secretary.

[FR Doc. 04–23810 Filed 10–22–04; 8:45 am] 

BILLING CODE 6730–01–P

FEDERAL RESERVE SYSTEM

Agency information collection 

activities: Proposed collections; 

comment request

AGENCY: Board of Governors of the 

Federal Reserve System

SUMMARY: Background

On June 15, 1984, the Office of 

Management and Budget (OMB) 

delegated to the Board of Governors of 

the Federal Reserve System (Board) its 

approval authority under the Paperwork 

Reduction Act, as per 5 CFR 1320.16, to 

approve of and assign OMB control 

numbers to collection of information 

requests and requirements conducted or 

sponsored by the Board under 

conditions set forth in 5 CFR 1320 

Appendix A.1. Board–approved 

collections of information are 

incorporated into the official OMB 

inventory of currently approved 

collections of information. Copies of the 

OMB 83–Is and supporting statements 

and approved collection of information 

instruments 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.

Request for comment on information 

collection proposals

The following information 

collections, which are being handled 

under this delegated authority, have 

received initial Board approval and are 

hereby published for comment. At the 

end of the comment period, the 

proposed information collections, along 

with an analysis of comments and 

recommendations received, will be 

submitted to the Board for final 

approval under OMB delegated 

authority. Comments are invited on the 

following:

a. whether the proposed collections of 

information are necessary for the proper 

performance of the Federal Reserve’s 

functions; including whether the 

information has practical utility;

b. the accuracy of the Federal 

Reserve’s estimate of the burden of the 

proposed information collections, 

including the validity of the 

methodology and assumptions used;

c. ways to enhance the quality, utility, 

and clarity of the information to be 

collected; and

d. ways to minimize the burden of 

information collections on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology.

DATES: Comments must be submitted on 

or before December 27, 2004.

ADDRESSES: You may submit comments, 

identified by FR 2058, FR Y–7, FR Y–

9, FR Y–11, or FR 2314 by any of the 

following methods:

• Agency Web Site: http://

www.federalreserve.gov. Follow the 

instructions for submitting comments at 

http://www.federalreserve.gov/

generalinfo/foia/ProposedRegs.cfm.

• Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments.

• E–mail: 

regs.comments@federalreserve.gov.

Include docket number in the subject 

line of the message.

• FAX: 202/452–3819 or 202/452–

3102.

• Mail: Jennifer J. Johnson, Secretary, 

Board of Governors of the Federal 

Reserve System, 20th Street and 

Constitution Avenue, N.W., 

Washington, DC 20551.

All public comments are available 

from the Board’s web site at 

www.federalreserve.gov/generalinfo/

foia/ProposedRegs.cfm as submitted, 

except as necessary for technical 

reasons. Accordingly, your comments 

will not be edited to remove any 

identifying or contact information. 

Public comments may also be viewed 

electronically or in paper in Room MP–

500 of the Board’s Martin Building (20th 

and C Streets, N.W.) between 9:00 a.m. 

and 5:00 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: A 

copy of the proposed forms and 

instructions, the Paperwork Reduction 

Act Submission (OMB 83–I), supporting 

statements, and other documents that 

will be placed into OMB’s public docket 

files once approved may be requested 

from the agency clearance officer, whose 

name appears below.

Cynthia Ayouch, 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.

Proposal to approve under OMB 

delegated authority the extension for 

three years, without revision, the 

following report:

Report title: Notification of Foreign 

Branch Status

Agency form number: FR 2058

OMB control number: 7100–0069

Frequency: on occasion

Reporters: Member banks, bank 

holding companies, and Edge and 

agreement corporations

Annual reporting hours: 20 hours

Estimated average hours per response:

15 minutes

Number of respondents: 79

62270 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Notices 

General description of report: This 

information collection is mandatory (12 

U.S.C. 321, 601, and 602 (member 

banks)); (12 U.S.C. 615 (Edge 

corporations)); (12 U.S.C. 601 

(agreement corporations)); and (12 

U.S.C. 1844(c) (bank holding 

companies)) and is not regarded as 

confidential.

Abstract: Member banks, bank 

holding companies, and Edge and 

agreement corporations are required to 

notify the Federal Reserve of the 

opening, closing, or relocation of a 

foreign branch. The Federal Reserve 

needs the information collected on the 

FR 2058 to fulfill supervisory 

responsibilities specified in Regulation 

K including the supervision of foreign 

branches of U.S. banking organizations. 

The information submitted on the FR 

2058 notification is the primary means 

by which the Federal Reserve monitors 

the current operating status of foreign 

branches of U.S banking organizations. 

The information is needed in order to 

evaluate the organization’s international 

exposure and to update the Federal 

Reserve’s structure files on U.S. banking 

organizations. The information enables 

the Federal Reserve to evaluate an 

organization’s development over time. 

The FR 2058 notification is the only 

source of this information.

Proposal to approve under OMB 

delegated authority the extension for 

three years, with revision, of the 

following reports:

1. Report title: Reports of Foreign 

Banking Organizations.

Agency form numbers: FR Y–7, FR Y–

7N, FR Y–7NS, and FR Y–7Q.

OMB control number: 7100–0125.

Frequency: Quarterly and annually.

Reporters: Foreign banking 

organizations (FBOs).

Annual reporting hours: 5,384 hours.

Estimated average hours per response:

FR Y–7: 3.50 hours,

FR Y–7N (quarterly): 6 hours,

FR Y–7N (annual): 6 hours,

FR Y–7NS: 1 hour,

FR Y–7Q (quarterly): 1.25 hours,

FR Y–7Q (annual): 1 hour.

Number of respondents:

FR Y–7: 257,

FR Y–7N (quarterly): 129,

FR Y–7N (annual): 137,

FR Y–7NS: 170,

FR Y–7Q (quarterly): 52,

FR Y–7Q (annual): 136.

General description of report: This 

information collection is mandatory (12 

U.S.C. §§ 601–604a, 611–631, 1844(c), 

3106, and 3108(a)). Confidential 

treatment is not routinely given to the 

data in these reports. However, the FR 

Y–7Q data will be held confidential 

until 120 days after the as–of date. Also, 

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–7 is filed by all 

foreign banking organizations (FBOs) 

that engage in banking in the United 

States, either directly or indirectly, to 

update their financial and 

organizational information. The Federal 

Reserve uses information to assess an 

FBO’s ability to be a continuing source 

of strength to its U.S. banking 

operations and to determine compliance 

with U.S. laws and regulations.

The FR Y–7N collects financial 

information for U.S. nonbank 

subsidiaries held by FBOs other than 

through a U.S. bank holding company or 

bank. This report consists of a balance 

sheet and income statement; 

information on changes in equity 

capital, changes in the allowance for 

loan and lease losses, off–balance–sheet 

items, and loans; and a memoranda 

section. The FR Y–7NS collects net 

income, total assets, equity capital, and 

total off–balance–sheet items for 

smaller, less complex subsidiaries.

The FR Y–7Q collects consolidated 

capital and asset information from all 

FBOs. The report collects tier 1 capital, 

total risk–based capital, risk–weighted 

assets, and total assets.

Current Actions: The Federal Reserve 

proposes to revise the FR Y–7 by 

requiring that only top–tier FBOs file 

the FR Y–7 report, modifying the cover 

pages, changing the order of the report 

and instructions, and clarifying several 

areas in the instructions. The Federal 

Reserve proposes to revise the FR Y–7 

to be consistent with the reporting 

requirements detailed in the Annual 

Report of Bank Holding Companies (FR 

Y–6; OMB No. 7100–0124), Report of 

Changes in Organizational Structure (FR 

Y–10; OMB No. 7100– 0297), and the 

Report of Changes in FBO 

Organizational Structure (FR Y–10F; 

OMB No. 7100– 0297). The proposed 

revisions to the FR Y–7 would be 

effective beginning with fiscal year–

ends of December 31, 2004; the Federal 

Reserve requests specific comment on 

this effective date. The Federal Reserve 

also proposes to revise the FR Y– 7N 

reporting instructions with respect to 

balances due from related organizations, 

to insure consistent reporting of 

unconsolidated subsidiaries, and to 

parallel changes proposed for other 

nonbank subsidiary reports. The 

revisions to the FR Y–7N would be 

effective as of the March 31, 2005, 

report date.

2. Report title: Financial Statements 

for Bank Holding Companies

Agency form number: FR Y–9C, FR Y–

9LP, FR Y–9SP, FR Y–9CS, and FR Y–

9ES

OMB control number: 7100–0128

Frequency: Quarterly, semiannually, 

and annually

Reporters: Bank holding companies 

(BHCs)

Annual reporting hours: 399,192

Estimated average hours per response:

FR Y–9C: 35.40 hours,

FR Y–9LP: 4.75 hours,

FR Y–9SP: 4.85 hours,

FR Y–9ES: 30 minutes,

FR Y–9CS: 30 minutes.

Number of respondents:

FR Y–9C: 2,240,

FR Y–9LP: 2,590,

FR Y–9SP: 3,253,

FR Y–9ES: 87,

FR Y–9CS: 600.

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–9C collects basic 

financial data from a domestic bank 

holding company (BHC) on a 

consolidated basis in the form of a 

balance sheet, an income statement, and 

detailed supporting schedules, 

including a schedule of off–balance–

sheet items, similar to the Federal 

Financial Institutions Examination 

Council (FFIEC) Consolidated Reports of 

Condition and Income (Call Reports) 

(FFIEC 031 &041; OMB No.7100–0036). 

The FR Y–9C collects data from the BHC 

as of the end of March, June, September, 

and December. The FR Y–9C is filed by 

top–tier BHCs with total consolidated 

assets of $150 million or more and 

lower–tier BHCs that have total 

consolidated assets of $1 billion or 

more. In addition, multibank holding 

companies with total consolidated 

assets of less than $150 million with 

debt outstanding to the general public or 

engaged in certain nonbank activities 

must file the FR Y–9C.

The FR Y–9LP collects basic financial 

data from domestic BHCs on an 

unconsolidated, parent–only basis in 

the form of a balance sheet, an income 

statement, and supporting schedules 

relating to investments, cash flow, and 

certain memoranda items. This report is 

Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Notices 62271

filed as of the end of March, June, 

September, and December on a parent 

company only basis by 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.

The FR Y–9SP is a parent company 

only financial statement filed by smaller 

BHCs as of the end of June and 

December. Respondents include one–

bank holding companies with total 

consolidated assets of less than $150 

million and multibank holding 

companies with total consolidated 

assets of less than $150 million that 

meet certain other criteria. 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 collects basic 

balance sheet and income information 

for the parent company, information on 

intangible assets, and information on 

intercompany transactions.

The FR Y–9CS is a free form 

supplement that may be utilized to 

collect any additional information 

deemed to be critical and needed in an 

expedited manner. It is intended to 

supplement the FR Y–9C and FR Y–9SP 

reports.

The FR Y–9ES collects financial 

information from employee stock 

ownership plans (ESOPs) that are also 

BHCs on their benefit plan activities as 

of December 31. 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.

Current Actions: The Federal Reserve 

proposes to modify information 

collected on the FR Y–9C and FR Y–9SP 

to: identify private equity merchant 

banking activity, identify firms 

providing auditing services to the BHC, 

add an item for subordinated notes 

payable to trusts issuing trust preferred 

securities to the FR Y–9C balance sheet, 

and add a memoranda item for 

nonvoting equity capital to the FR Y–

9SP. Additionally, the Federal Reserve 

requests public comment on modifying 

the FR Y–9LP filing deadline to be 

consistent with the FR Y–9C. The FR Y–

9ES and FR Y–9CS would not be 

revised.

FR Y–9C

The Federal Reserve proposes to make 

the following revisions to the FR Y–9C, 

effective as of March 31, 2005. 

Implementation of the proposed 

revisions to Schedule HC–M would be 

concurrent with the proposed changes 

to the Consolidated Bank Holding 

Company Report of Equity Investments 

in Nonfinancial Companies (FR Y–12; 

OMB No. 7100–0300), effective March 

31, 2005.

Proposed Revisions to the 

Accelerated Filing Deadline. The U.S. 

Securities and Exchange Commission 

(SEC) announced on August 26, 2004, a 

proposal to postpone, for one year, the 

final phase–in period for acceleration of 

report deadlines for certain larger 

companies. The SEC has proposed this 

change to allow additional time and 

opportunity for accelerated filers and 

their auditors to focus on the new 

requirements regarding internal control 

over financial reporting mandated by 

Section 404 of the Sarbanes–Oxley Act. 

In keeping with the SEC’s proposed 

postponement, the Federal Reserve 

proposes to postpone for one year the 

accelerated filing deadline for quarterly 

reporting for top–tier BHCs to 35 days 

until the June 2006 reporting date. The 

35–day filing deadline would be 

effective for each quarter thereafter, 

except for the December reporting date, 

which would remain at 45 days.

Schedule HC – Balance Sheet

(1) The Federal Reserve proposes to 

add a new item 19.b, ‘‘Subordinated 

notes payable to trusts issuing trust 

preferred securities,’’ and renumber 

current item 19, ‘‘Subordinated notes 

and debentures’’ as item 19.a. 

Information on subordinated notes 

payable to trusts issuing trust preferred 

securities (TPS) would no longer be 

included in Schedule HC, item 20, 

‘‘Other liabilities.’’ In addition, TPS 

would no longer be reported in 

Schedule HC–R, memoranda item 3.d, 

‘‘Other cumulative preferred stock 

eligible for inclusion in Tier 1 capital 

(e.g., trust preferred securities) 

(included in Schedule HC, item 20 or 

22).’’ The caption for memoranda item 

3.d would be modified to remove the 

reference to TPS.

Currently, the amount of TPS eligible 

for inclusion in Tier 1 capital is 

included in Schedule HC–R, 

memoranda item 3.d, ‘‘Other cumulative 

preferred stock eligible for inclusion in 

Tier 1 capital,’’ along with any other 

hybrid instruments that are eligible for 

inclusion in Tier 1 capital. In addition, 

TPS are included in Schedule HC, item 

20, on the balance sheet. The Federal 

Reserve proposes to move the reporting 

of TPS directly to the balance sheet as 

a separate line item and to exclude TPS 

as part of Schedule HC, item 20 and as 

part of Schedule HC–R, memoranda 

item 3.d. Therefore memoranda item 3.d 

would only collect information on the 

amount of any other hybrid securities 

(other than TPS) that are eligible for 

inclusion in Tier 1 capital and reported 

in ‘‘Other liabilities’’ or as minority 

interest on the balance sheet. This 

change does not represent any change to 

the risk–based capital treatment for trust 

preferred securities. BHCs should 

continue to include the allowable 

amount of eligible TPS in their tier 1 

capital for regulatory purposes.

The proper reporting classification 

(debt or equity) of TPS has been under 

debate and scrutiny during the past 

several years. In the last two years, the 

Financial Accounting Standards Board 

(FASB) has ruled that trust preferred 

securities should be reported as 

liabilities on the balance sheet. In March 

2004, BHCs were instructed to include 

TPS in ‘‘Other liabilities.’’

Subsequently, the Federal Reserve 

decided that the reporting of TPS 

separately on the balance sheet would 

be consistent with how TPS are 

presented in other BHC public financial 

statements. The Federal Reserve 

believes it is more appropriate to report 

these instruments in a separate line item 

than to require them to be reported with 

many other items in ‘‘Other liabilities.’’

The proposed revisions would allow the 

Federal Reserve to continue to measure 

and monitor all TPS issued out of 

special purpose entities.

(2) The Federal Reserve proposes to 

add a new memoranda item 1 to collect 

the name and address of the BHC’s 

external auditing firm and the name and 

email address of the engagement 

partner. The item would be collected 

initially in the March 31, 2005, report 

and then annually as of December 31.

This information would identify firms 

providing full–scope auditing services 

to top–tier BHCs in which an opinion is 

rendered on their financial statements. 

BHCs that do not have a full–scope 

audit conducted of their financial 

statements would not need to complete 

this item. This information would be 

used by the Federal Reserve to facilitate 

more efficient supervision of the 

banking industry on issues related to 

accounting and auditing. The 

information would also enable the 

Federal Reserve to more readily identify 

firms that may be interested in 

participating in regional CPA and 

examiner roundtable discussions and 

similar programs designed to improve 

communication between the accounting 

profession and the regulatory 

community. The name and email 

address of the engagement partner 

would be considered confidential, 

consistent with the treatment given to 

other contact information provided on 

the FR Y–9C.

Schedule HC–M–Memoranda

The Federal Reserve proposes to 

modify or delete items used to 

62272 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Notices 

determine if the reporting bank holding 

company must complete the FR Y–12 

and add items to identify private equity 

merchant banking (PEMB) activity by 

institutions exempt from filing the FR 

Y–12.

(1) Modify item 17, ‘‘Do your 

aggregate nonfinancial equity 

investments equal or exceed the lesser 

of $200 million (on an acquisition cost 

basis) or 5 percent of the BHC’s 

consolidated Tier 1 capital as of the 

report date?’’ to decrease the aggregate 

nonfinancial equity investments 

threshold from $200 million to $100 

million and increase the consolidated 

Tier 1 capital threshold from 5 percent 

to 10 percent. The current reporting 

criterion tends to require information to 

be reported by the very largest and the 

very smallest PEMB investors, but fails 

to identify mid–level participants. The 

reduction in the dollar threshold should 

lead to retrieving information from 

midsize participants, broadening the 

scope of monitoring PEMB activity. The 

proposed increase in the Tier 1 capital 

threshold would reduce burden for 

respondents, while continuing to screen 

for the smaller BHCs with a significant 

concentration of capital invested in this 

asset class. The Federal Reserve notes 

that there is limited usefulness in 

collecting detailed information on this 

type of activity from small BHCs with a 

minor concentration of capital invested 

in this asset class. This item would be 

renumbered as item 18.

(2) Delete item 18, ‘‘Has the bank 

holding company made an effective 

election to become a financial holding 

company?’’ This information is readily 

available on the National Information 

Center database.

(3) Add new item 19(a), ‘‘Has the bank 

holding company sold or otherwise 

liquidated its holding of any 

nonfinancial equity investment since 

the previous reporting period?’’ This 

information would be used as a measure 

to track PEMB transaction activity, 

including activity by BHCs that are not 

required to file the FR Y–12. This 

indicator would alert the Federal 

Reserve to the BHC’s heightened risk 

profile in this activity and could lead to 

increased supervisory scrutiny.

(4) Modify item 19, ‘‘Does the bank 

holding company hold, directly or 

indirectly, an Edge corporation, 

Agreement corporation or Small 

Business Investment Company (SBIC) 

subsidiary or hold equities under 

section 4(c)(6) or 4(c)(7) of the Bank 

Holding Company Act?’’ to clarify the 

legal authority by restating the question 

as ‘‘Does the bank holding company 

hold, either directly or indirectly 

through a subsidiary or affiliate, any 

nonfinancial equity investments (see 

instructions for definition) within a 

Small Business Investment Company 

(SBIC) structure, or under section 4(c)(6) 

or 4(c)(7) of the Bank Holding Company 

Act, or pursuant to the merchant 

banking authority of section 4(k)4(H) of 

the Bank Holding Company Act, or 

pursuant to the investment authority 

granted by Regulation K?’’ This item 

would be renumbered as item 17.

(5) Add new item 19(b), ‘‘Does the 

bank holding company manage any 

nonfinancial equity investments for the 

benefit of others?’’ This information 

would be used to identify PEMB 

participants, including participants that 

are not required to file the FR Y–12, and 

would provide a measure of the 

assumed additional legal and 

reputational risk associated with 

managing these investments for others.

Proposed items 17 and 18 would be 

used to determine if the reporting BHC 

must complete the FR Y–12. If the 

answer to item 17 is no, then the BHC 

does not need to complete the FR Y–12 

and can skip item 18. If the answer to 

item 17 is yes and the answer to item 

18 is no, then the BHC does not need 

to complete the FR Y–12. If the answer 

to both item 17 and item 18 is yes, then 

the BHC must complete the FR Y–12 

report. All respondents that are not 

required to file the FR Y–12 must 

complete items 19(a) and 19(b).

The changes to Schedule HC–M are 

intended to dovetail with changes to 

information collected on the FR Y–12 

regarding the supervision of merchant 

banking investments.

Instructions

In addition to modifying instructions 

to incorporate the proposed reporting 

changes, instructions would be revised 

and clarified in an attempt to achieve 

greater consistency in reporting by 

respondents.

FR Y–9LP

The Federal Reserve proposes to make 

the following revisions to the FR Y–9LP, 

effective as of March 31, 2005.

Filing Deadline – A number of BHCs 

have requested that the filing deadline 

for the FR Y–9LP be made consistent 

with the FR Y–9C. Because the FR Y–

9LP serves as source information for 

completing the FR Y–9C, information on 

the FR Y–9LP must be compiled prior 

to filing the FR Y–9C. Therefore filing 

the FR Y–9LP on the same time frame 

as the FR Y–9C would not entail any 

additional reporting burden and could 

actually result in less reporting burden 

due to fewer follow–up calls from the 

Federal Reserve. Instructions would be 

clarified in an attempt to achieve greater 

consistency in reporting by respondents.

FR Y–9SP

The FR Y–9SP is a parent company 

only financial statement filed by smaller 

BHCs as of the end of June and 

December. Respondents include one–

bank holding companies with total 

consolidated assets of less than $150 

million and multibank holding 

companies with total consolidated 

assets of less than $150 million that 

meet certain other criteria. 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 collects basic 

balance sheet and income information 

for the parent company, information on 

intangible assets, and information on 

intercompany transactions.

The Federal Reserve proposes to make 

the following changes to the FR Y–9SP, 

effective as of June 30, 2005. 

Implementation of the proposed 

revisions to Schedule SC–M would be 

concurrent with the proposed changes 

to the FR Y–12, effective March 31, 

2005.

Schedule SC–Balance Sheet

The Federal Reserve proposes to add 

a new memoranda item 1 to collect the 

name and address of the BHC’s external 

auditing firm and the name and email 

address of the engagement partner. The 

item would be collected initially in the 

June 30, 2005, report and then annually 

as of December 31. This information 

would identify firms providing full–

scope auditing services to top–tier BHCs 

in which an opinion is rendered on the 

financial statements. BHCs that do not 

have a full–scope audit conducted of 

their financial statements would not 

need to complete this item. This 

information would be used by the 

Federal Reserve to facilitate more 

efficient supervision of the banking 

industry on issues related to accounting 

and auditing. The information would 

also enable the Federal Reserve to more 

readily identify firms that may be 

interested in participating in regional 

CPA and examiner roundtable 

discussions and similar programs 

designed to improve communication 

between the accounting profession and 

the regulatory community. The name 

and email address of the engagement 

partner would be considered 

confidential, consistent with the 

treatment given to other contact 

information provided on the FR Y–9SP.

Schedule SC–M–Memoranda

Private Equity Merchant Banking–

The Federal Reserve proposes to modify 

Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Notices 62273

or delete items used to determine if the 

reporting bank holding company must 

complete the FR Y–12 and add items to 

identify private equity merchant 

banking (PEMB) activity by institutions 

exempt from filing the FR Y–12.

(1) Modify item 18, ‘‘Do your 

aggregate nonfinancial equity 

investments equal or exceed (on an 

acquisition cost basis) 5 percent of the 

BHC’s total capital as of the report 

date?’’ to increase the total capital 

threshold from 5 percent to 10 percent. 

The proposed increase in the total 

capital threshold would reduce burden 

for respondents, while continuing to 

screen for the smaller BHCs with a 

significant concentration of capital 

invested in this asset class. The Federal 

Reserve notes that there is limited 

usefulness in collecting detailed 

information on this type of activity from 

small BHCs with a minor concentration 

of capital invested in this asset class. 

This item would be renumbered as item 

19.

(2) Delete item 19, ‘‘Has the bank 

holding company made an effective 

election to become a financial holding 

company?’’ This information is readily 

available on the National Information 

Center database.

(3) Add new item 20(a), ‘‘Has the bank 

holding company sold or otherwise 

liquidated its holding of any 

nonfinancial equity investment since 

the previous reporting period?’’ This 

information would be used as a measure 

to track PEMB transaction activity, 

including activity by BHCs that are not 

required to file the FR Y–12. This 

indicator would alert the Federal 

Reserve to the BHC’s heightened risk 

profile in this activity and could lead to 

increased supervisory scrutiny.

(4) Modify item 20, ‘‘Does the bank 

holding company hold, directly or 

indirectly, an Edge corporation, 

Agreement corporation or Small 

Business Investment Company (SBIC) 

subsidiary or hold equities under 

section 4(c)(6) or 4(c)(7) of the Bank 

Holding Company Act?’’ to clarify the 

legal authority by restating the question 

as ‘‘Does the bank holding company 

hold, either directly or indirectly 

through a subsidiary or affiliate, any 

nonfinancial equity investments (see 

instructions for definition) within a 

Small Business Investment Company 

(SBIC) structure, or under section 4(c)(6) 

or 4(c)(7) of the Bank Holding Company 

Act, or pursuant to the merchant 

banking authority of section 4(k)4(H) of 

the Bank Holding Company Act, or 

pursuant to the investment authority 

granted by Regulation K?’’ This item 

would be renumbered as item 18.

(5) Add new item 20(b), ‘‘Does the 

bank holding company manage any 

nonfinancial equity investments for the 

benefit of others?’’ This information 

would be used to identify PEMB 

participants, including participants that 

are not required to file the FR Y–12, and 

would provide a measure of the 

assumed additional legal and 

reputational risk associated with 

managing these investments for others.

Proposed items 18 and 19 would be 

used to determine if the reporting BHC 

must complete the FR Y–12. If the 

answer to item 18 is no, then the BHC 

does not need to complete the FR Y–12 

and can skip item 19. If the answer to 

item 18 is yes and the answer to item 

19 is no, then the BHC does not need 

to complete the FR Y–12. If the answer 

to both item 18 and item 19 is yes, then 

the BHC must complete the FR Y–12 

report. All respondents that are not 

required to file the FR Y–12 must 

complete items 20(a) and 20(b).

The changes to Schedule SC–M are 

intended to dovetail with changes to 

information collected on the FR Y–12 

regarding the supervision of merchant 

banking investments.

Nonvoting Equity Capital – The 

Federal Reserve proposes to add a new 

item 4, ‘‘Amount of nonvoting equity 

capital, including related surplus 

(included in balance sheet items 16.a, 

16.b, 16.c, and 16.d).’’ This item would 

include the amount of retained earnings 

and accumulated other comprehensive 

income that is associated with perpetual 

preferred and other stock which does 

not possess voting rights.

Collecting nonvoting equity 

information would enable examiners 

and analysts to more readily evaluate 

the adequacy of the quality of capital in 

BHCs and to assess the significance of 

any changes that occur in the quality of 

capital in the organization. This 

additional detail has become necessary 

as the Federal Reserve’s supervision 

function performs more off–site 

monitoring of BHCs in lieu of 

inspections or other on–site 

supervision. This information would 

facilitate monitoring the proportion of 

nonvoting and voting stock of a BHC as 

it approaches the threshold for filing the 

FR Y–9C, and becomes subject to the 

consolidated Capital Adequacy 

Guidelines.

Instructions

In addition to modifying instructions 

to incorporate the proposed reporting 

changes, instructions would be revised 

and clarified in an attempt to achieve 

greater consistency in reporting by 

respondents.

3. Report title: Financial Statements of 

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

Holding Companies.

Agency form number: FR Y–11 and 

FR Y–11S

OMB control number: 7100–0244.

Frequency: Quarterly and annually.

Reporters: Bank holding companies 

(BHCs).

Annual reporting hours: 31,877 hours.

Estimated average hours per response:

FR Y–11 (quarterly): 6 hours,

FR Y–11 (annual): 6 hours,

FR Y–11S (annual): 1 hour.

Number of respondents:

FR Y–11 (quarterly): 1,246,

FR Y–11 (annual): 218,

FR Y–11S (annual): 665.

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 and FR Y–11S 

collect financial information for 

individual U.S. nonbank subsidiaries of 

BHCs located in the United States. The 

FR Y–11 consists of a balance sheet and 

income statement; information on 

changes in equity capital, changes in the 

allowance for loan and lease losses, off–

balance–sheet items, and loans; and a 

memoranda section. The FR Y–11S is an 

abbreviated form that comprises four 

data items: net income, total assets, 

equity capital, and total off–balance–

sheet items. The data are used in 

conjunction with data from other BHC 

reports 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: The Federal Reserve 

proposes to revise the FR Y–11 

reporting instructions with respect to 

balances due from related organizations, 

to insure consistent reporting of 

unconsolidated subsidiaries. The 

revisions to the FR Y–11 would be 

effective as of the March 31, 2005, 

report date.

4. Report title: Financial Statements of 

Foreign Subsidiaries of U.S. Banking 

Organizations.

Agency form number: FR 2314 and FR 

2314S.

OMB control number: 7100–0073.

Frequency: Quarterly and annually.

Reporters: Foreign subsidiaries of U.S. 

state member banks, bank holding 

companies, and Edge or agreement 

corporations.

62274 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Notices 

Annual reporting hours: 4,855 hours.

Estimated average hours per response:

FR 2314 (quarterly): 6 hours,

FR 2314 (annual): 6 hours,

FR 2314S (annual): 1 hour.

Number of respondents:

FR 2314 (quarterly): 156,

FR 2314 (annual): 143,

FR 2314S (annual): 253.

General description of report: This 

information collection is mandatory (12 

U.S.C. §§ 324, 602, 625, and 1844). 

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 are 

collected from U.S. member banks, Edge 

and agreement corporations, and BHCs 

for their direct or indirect foreign 

subsidiaries. The FR 2314 reports 

collect information on assets, income, 

equity capital, and off–balance sheet 

items. The FR 2314S is an abbreviated 

form that comprises four data items: net 

income, total assets, equity capital, and 

total off–balance sheet items. The 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. The FR 2314 is the only 

source of comprehensive and systematic 

data on the assets, liabilities, and 

earnings of the foreign bank and 

nonbank subsidiaries of U.S. SMBs, 

BHCs, and Edge and agreement 

corporations.

Current Actions: The Federal Reserve 

proposes to revise the FR 2314 reporting 

instructions with respect to balances 

due from related organizations, to insure 

consistent reporting of unconsolidated 

subsidiaries. The revisions to the FR 

2314 would be effective as of the March 

31, 2005, report date.

Board of Governors of the Federal Reserve 

System, October 19, 2004.

Robert deV. Frierson,

Deputy Secretary of the Board.

[FR Doc. 04–23787 Filed 10–22–04; 8:45 am]

BILLING CODE: 6210–01–S

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Solicitation of Nominations for 

Membership on the Secretary’s 

Advisory Committee on Human 

Research Protections

AGENCY: Department of Health and 

Human Services (HHS), Office of the 

Secretary, Office of Public Health and 

Science.

ACTION: Notice.

Authority: 42 U.S.C. 217a, Section 222 of 

the Public Health Service (PHS) Act, as 

amended. The Committee is governed by the 

provisions of Pub. L. 92–463, as amended (5 

U.S.C. Appendix 2), which sets forth 

standards for the formation and use of 

advisory committees.

SUMMARY: The Office for Human 

Research Protections (OHRP), a program 

office within the Office of Public Health 

and Science, HHS, is seeking 

nominations of qualified candidates to 

be considered for appointment as a 

member of the Secretary’s Advisory 

Committee on Human Research 

Protections (SACHRP). SACHRP was 

established by the Secretary of Health 

and Human Services on October 1, 

2002. The Committee provides advice 

and recommendations to the Secretary 

of Health and Human Services and the 

Assistant Secretary for Health on 

matters pertaining to the continuance 

and improvement of functions within 

the authority of the Department directed 

toward protections for human subjects 

in research. Individuals selected to 

serve as members of the Committee are 

appointed by the Secretary. 

The terms of three Committee 

members are scheduled to end in 

January 2005. OHRP is seeking 

applications of qualified candidates to 

nominate for appointment to the 

Committee to fill the pending vacancies.

DATES: Nominations for membership on 

the Committee must be received no later 

than 5 p.m. e.s.t. on November 19, 2004, 

at the address listed below.

ADDRESSES: Dr. Bernard Schwetz, 

Director, Office for Human Research 

Protections, Department of Health and 

Human Services, 1101 Wootton 

Parkway, Suite 200; Rockville, MD 

20852. Nominations will not be 

accepted by either e-mail or facsimile.

FOR FURTHER INFORMATION CONTACT: Ms. 

Catherine Slatinshek, Executive 

Director, SACHRP, Office for Human 

Research Protections, 1101 Wootton 

Parkway, Suite 200, Rockville, MD 

20852. Telephone: 1–301–496–7005. 

A copy of the Committee charter and 

list of the current membership can be 

obtained by contacting Ms. Slatinshek 

or by accessing the SACHRP Web site, 

sachrp@osophs.dhhs.gov.

SUPPLEMENTARY INFORMATION: 

1. The Committee shall advise on 

matters pertaining to the continuance 

and improvement of functions within 

the authority of HHS directed toward 

protections for human subjects in 

research. Specifically, the Committee 

will provide advice relating to the 

responsible conduct of research 

involving human subjects with 

particular emphasis on: Special 

populations, such as neonates and 

children, prisoners, and the decisionally 

impaired; pregnant women, embryos, 

and fetuses; individuals and 

populations in international studies; 

populations in which there are 

individually identifiable samples, data, 

or information; and investigator 

conflicts of interest. 

In addition, the Committee is 

responsible for reviewing selected 

ongoing work and planned activities of 

the OHRP and other offices/agencies 

within HHS responsible for human 

subjects protection. These evaluations 

may include but are not limited to a 

review of assurance systems, the 

application of minimal research risk 

standards, the granting of waivers, 

education programs sponsored by 

OHRP, and the ongoing monitoring and 

oversight of institutional review boards 

(IRBs) and the institutions that sponsor 

research. 

2. Nominations. Nominations of 

potential candidates for consideration 

are being sought from a wide array of 

career fields, including but not limited 

to: Public health and medicine; 

behavioral and social sciences; health 

administration; biomedical ethics. To 

qualify for consideration of appointment 

to the Committee, an individual must 

possess demonstrated experience and 

expertise in any of the several 

disciplines and fields pertinent to 

human subjects protection and/or 

clinical research. 

An individual selected for 

appointment to the Committee will 

serve as a voting member. An individual 

selected for appointment to the 

Committee can be invited to serve a 

term of up to four years. Committee 

members receive a stipend for attending 

Committee meetings and conducting 

other business in the interest of the 

Committee, including per diem and 

reimbursement for travel expenses 

incurred. 

Nominations should be typewritten. 

The following information should be 

included in the package of material 

submitted for each individual being