[Federal Register Volume 75, Number 248 (Tuesday, December 28, 2010)]
[Rules and Regulations]
[Pages 81377-81378]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-32637]



[[Page 81377]]

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DEPARTMENT OF THE TREASURY

Office of Thrift Supervision

12 CFR Part 585

[Docket No. OTS-2010-0036]
RIN 1550-AC14


Prohibited Service at Savings and Loan Holding Companies; 
Reinstitution of Expiration Date of Temporary Exemption

AGENCY: Office of Thrift Supervision (OTS), Treasury.

ACTION: Final rule.

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SUMMARY: OTS is revising its rules implementing section 19(e) of the 
Federal Deposit Insurance Act (FDIA), which prohibits any person who 
has been convicted of any criminal offense involving dishonesty, breach 
of trust, or money laundering (or who has agreed to enter into a 
pretrial diversion or similar program in connection with a prosecution 
for such an offense) from holding certain positions with respect to a 
savings and loan holding company (SLHC). Specifically, OTS is 
reinstituting and extending the expiration date of a temporary 
exemption granted to persons who held positions with respect to a SLHC 
as of the date of the enactment of section 19(e). The reinstituted and 
revised expiration date for the temporary exemption is December 31, 
2012.

DATES: Effective Date: The final rule is effective on December 28, 
2010.

FOR FURTHER INFORMATION CONTACT: Donna Deale, Director, Holding 
Companies and International Activities, Examinations, Supervision and 
Consumer Protection, (202) 906-7488, Marvin Shaw, Senior Attorney, 
Regulations and Legislation Division, (202) 906-6639, Office of Thrift 
Supervision, 1700 G Street, NW., Washington, DC 20552.

SUPPLEMENTARY INFORMATION: On May 8, 2007, OTS published an interim 
final rule adding 12 CFR part 585. This new part implemented section 
19(e) of the FDIA, which prohibits any person who has been convicted of 
any criminal offense involving dishonesty, breach of trust, or money 
laundering (or who has agreed to enter into a pretrial diversion or 
similar program in connection with a prosecution for such an offense) 
from holding certain positions with a SLHC. Section 19(e) also 
authorizes the Director of OTS to provide exemptions from the 
prohibitions, by regulation or order, if the exemption is consistent 
with the purposes of the statute.
    The interim final rule described the actions that are prohibited 
under the statute and prescribed procedures for applying for an OTS 
order granting a case-by-case exemption from the prohibition. The rule 
also provided regulatory exemptions to the prohibitions, including a 
temporary exemption for persons who held positions with respect to a 
SLHC on October 13, 2006, the date of enactment of section 19(e). This 
temporary exemption expired on September 30, 2010, unless a case-by-
case exemption was filed prior to that expiration date.\1\
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    \1\ This temporary exemption originally was initially scheduled 
to expire on September 5, 2007. OTS has extended the expiration date 
several times, most recently to September 30, 2010 (74 FR 14457).
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    OTS has decided to reinstitute the temporary regulatory exemption, 
with a new expiration date of December 31, 2012. OTS notes that the 
reinstituted regulatory exemption applies from October 13, 2006 until 
December 31, 2012 and includes the period after October 1, 2010 until 
today. Given that this reinstitution of the temporary exemption will 
reduce needless disruptions of SLHC operations, OTS has concluded that 
reinstituting the exemption is consistent with the purposes of section 
19(e) of the FDIA.

Regulatory Findings

Notice and Comment and Effective Date

    For the reasons set out in the interim final rule,\2\ OTS has 
concluded that: notice and comment on this extension are unnecessary 
and contrary to the public interest under section 552(b)(B) of the 
Administrative Procedure Act (APA); there is good cause for making the 
extension effective immediately under section 553(d) of the APA; and 
the delayed effective date requirements of section 302 of the Riegle 
Community Development and Regulatory Improvement Act of 1994 (CDRIA) do 
not apply.
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    \2\ 72 FR at 25953.
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Regulatory Flexibility Act

    For the reasons stated in the interim final rule,\3\ OTS has 
concluded that this rule does not require an initial regulatory 
flexibility analysis under the Regulatory Flexibility Act (RFA) (5 
U.S.C. 601 et seq.), and that this rule should not have a significant 
impact on a substantial number of small entities, as defined in the 
RFA.
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    \3\ 72 FR at 25953-54.
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Paperwork Reduction Act

    OTS has determined that this rule does not involve a change to 
collections of information previously approved under the Paperwork 
Reduction Act (44 U.S.C. 3501 et seq.)

Unfunded Mandates Act of 1995

    For the reasons stated in the interim final rule,\4\ OTS has 
determined that this rule will not result in expenditures by state, 
local, and tribal governments, in the aggregate, or by the private 
sector, of more than $100 million in any one year.
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    \4\ 72 FR at 25954.
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Executive Order 12866

    OTS has determined that this rule is not a significant regulatory 
action under Executive Order 12866.

Plain Language

    Section 722 of the Gramm-Leach-Bliley Act (12 U.S.C. 4809) requires 
the Agencies to use ``plain language'' in all final rules published 
after January 1, 2000. OTS believes that the final rule is presented in 
a clear and straightforward manner.

List of Subjects in 12 CFR Part 585

    Administrative practice and procedure, Holding companies, Reporting 
and recordkeeping requirements, Savings associations.

Authority and Issuance

0
For the reasons in the preamble, OTS is amending part 585 of chapter V 
of title 12 of the Code of Federal Regulations as set forth below:

PART 585--PROHIBITED SERVICE AT SAVINGS AND LOAN HOLDING COMPANIES

0
1. The authority citation for 12 CFR part 585 continues to read as 
follows:

    Authority: 12 U.S.C. 1462, 1462a, 1463, 1464, 1467a, and 
1829(e).


0
2. Amend Sec.  585.100(b)(2) introductory text to read as follows:


Sec.  585.100  Who is exempt from the prohibition under this part?

* * * * *
    (b) Temporary exemption. * * *
    (2) This exemption expires on December 31, 2012, unless the savings 
and loan holding company or the person files an application seeking a 
case-by-case exemption for the person under Sec.  585.110 by that date. 
If the savings and loan holding company or the person files such an 
application, the temporary exemption expires on:
* * * * *

    Dated: December 21, 2010.


[[Page 81378]]


    By the Office of Thrift Supervision.

John E. Bowman,
Acting Director.
[FR Doc. 2010-32637 Filed 12-27-10; 8:45 am]
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