8958 Federal Register / Vol. 84, No. 49 / Wednesday, March 13, 2019 / Rules and Regulations 

requirement, the Board has sought to 

present the final rule in a simple and 

straightforward manner, and did not 

receive any comments on the use of 

plain language. 

List of Subjects in 12 CFR Part 225 

Administrative practice and 

procedure, Banks, banking, Capital 

planning, Holding companies, Reporting 

and recordkeeping requirements 

Securities, Stress testing. 

Accordingly, the Board amends 12 

CFR part 225 as follows: 

PART 225—BANK HOLDING 

COMPANIES AND CHANGE IN BANK 

CONTROL (REGULATION Y) 

■ 1. The authority citation for part 225 

continues to read as follows: 

Authority: 12 U.S.C. 1817(j)(13), 1818, 

1828(o), 1831i, 1831p-1, 1843(c)(8), 1844(b), 

1972(1), 3106, 3108, 3310, 3331–3351, 3906, 

3907, and 3909; 15 U.S.C. 1681s, 1681w, 

6801 and 6805. 

Subpart A—General Provisions 

■ 2. Section 225.8 is amended by 

revising paragraph (f)(2)(ii)(B) to read as 

follows: 

§ 225.8 Capital planning. 

* * * * * 

(f) * * * 

(2) * * * 

(ii) * * * 

(B) Bank holding companies that are 

not large and noncomplex bank holding 

companies. The Board or the 

appropriate Reserve Bank with 

concurrence of the Board, may object to 

a capital plan submitted by a bank 

holding company that is not a large and 

noncomplex bank holding company if it 

determines that: 

(1) The bank holding company has 

not demonstrated an ability to maintain 

capital above each minimum regulatory 

capital ratio on a pro forma basis under 

expected and stressful conditions 

throughout the planning horizon; or 

(2) Until January 1, 2021, except as 

provided in paragraph (f)(2)(ii)(B)(3) of 

this section, for a bank holding 

company that was subject to this section 

as of January 1, 2019, but whose capital 

plan has not been subject to review and 

a potential qualitative objection under 

the criteria listed in paragraph 

(f)(2)(ii)(B)(2)(i) through (iii) of this 

section for any period of four 

consecutive years: 

(i) The bank holding company has 

material unresolved supervisory issues, 

including but not limited to issues 

associated with its capital adequacy 

process; 

(ii) The assumptions and analysis 

underlying the bank holding company’s 

capital plan, or the bank holding 

company’s methodologies and practices 

that support its capital planning 

process, are not reasonable or 

appropriate; or 

(iii) The bank holding company’s 

capital planning process or proposed 

capital distributions otherwise 

constitute an unsafe or unsound 

practice, or would violate any law, 

regulation, Board order, directive, or 

condition imposed by, or written 

agreement with, the Board or the 

appropriate Reserve Bank. In 

determining whether a capital plan or 

any proposed capital distribution would 

constitute an unsafe or unsound 

practice, the Board or the appropriate 

Reserve Bank would consider whether 

the bank holding company is and would 

remain in sound financial condition 

after giving effect to the capital plan and 

all proposed capital distributions. 

(3) Notwithstanding paragraph 

(f)(2)(ii)(B)(2) of this section, a bank 

holding company that was subject to 

this section as of January 1, 2019, and 

that receives a qualitative objection in 

the fourth year of the four-year period 

described in paragraph (f)(2)(ii)(B)(2), 

pursuant to the criteria in paragraph 

(f)(2)(ii)(B)(2)(i) through (iii) of this 

section, will remain subject to a 

qualitative objection under this section 

until January 1 of the year after the first 

year in which the bank holding 

company does not receive a qualitative 

objection. 

* * * * * 

By order of the Board of Governors of the 

Federal Reserve System, March 6, 2019. 

Margaret McCloskey Shanks, 

Deputy Secretary of the Board. 

[FR Doc. 2019–04515 Filed 3–12–19; 8:45 am] 

BILLING CODE P 

FINANCIAL STABILITY OVERSIGHT 

COUNCIL 

12 CFR Part 1310 

RIN 4030–AA03 

Authority To Require Supervision and 

Regulation of Certain Nonbank 

Financial Companies 

AGENCY: Financial Stability Oversight 

Council. 

ACTION: Final rule. 

SUMMARY: The Financial Stability 

Oversight Council (the ‘‘Council’’) is 

adopting a rule stating that the Council 

shall not amend or rescind its 

interpretive guidance on nonbank 

financial company determinations 

without providing the public with 

notice and an opportunity to comment 

consistent with the Administrative 

Procedure Act. 

DATES: Effective date: April 12, 2019. 

FOR FURTHER INFORMATION CONTACT: 

Bimal Patel, Office of Domestic Finance, 

Treasury, at (202) 622–2850; Eric 

Froman, Office of the General Counsel, 

Treasury, at (202) 622–1942; or Mark 

Schlegel, Office of the General Counsel, 

Treasury, at (202) 622–1027. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 111 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (12 U.S.C. 5321) (the ‘‘Dodd-Frank 

Act’’) established the Financial Stability 

Oversight Council. The purposes of the 

Council under section 112 of the DoddFrank Act (12 U.S.C. 5322) are (A) to 

identify risks to the financial stability of 

the United States that could arise from 

the material financial distress or failure, 

or ongoing activities, of large, 

interconnected bank holding companies 

or nonbank financial companies, or that 

could arise outside the financial 

services marketplace; (B) to promote 

market discipline, by eliminating 

expectations on the part of shareholders, 

creditors, and counterparties of such 

companies that the Government will 

shield them from losses in the event of 

failure; and (C) to respond to emerging 

threats to the stability of the United 

States financial system. 

The Dodd-Frank Act also authorizes 

the Council to determine that certain 

nonbank financial companies will be 

subject to supervision by the Board of 

Governors of the Federal Reserve 

System (the ‘‘Federal Reserve’’) and 

prudential standards. On April 11, 2012, 

the Council issued interpretive guidance 

(the ‘‘2012 Interpretive Guidance’’) 

regarding the manner in which the 

Council makes determinations under 

section 113 of the Dodd-Frank Act, as an 

appendix to a final rule (together, the 

‘‘2012 Rule and Interpretive Guidance’’). 

The 2012 Rule and Interpretive 

Guidance were codified at part 1310 to 

title 12 of the Code of Federal 

Regulations. 

The Council is modifying the rule text 

in the 2012 Final Rule and Interpretive 

Guidance by adding a new section (12 

CFR 1310.3) stating that the Council 

shall not amend or rescind the 

interpretive guidance set forth in 

appendix A to part 1310 without 

providing the public with notice and an 

opportunity to comment. 

The Council is adopting this rule 

pursuant to its authority under section 


amozie on DSK9F9SC42PROD with RULES
Federal Register / Vol. 84, No. 49 / Wednesday, March 13, 2019 / Rules and Regulations 8959 

1See 5 U.S.C. 553(b)(A). 

111(e)(2) of the Dodd-Frank Act, which 

authorizes the Council to adopt such 

rules as may be necessary for the 

conduct of the business of the Council, 

and states that such rules shall be rules 

of agency organization, procedure, or 

practice for purposes of section 553 of 

title 5, United States Code. This new 

section is a rule of agency procedure, 

and is therefore not subject to the 

requirement to provide public notice 

and an opportunity to comment under 

the Administrative Procedure Act.1 As a 

result, the Council is adopting it in final 

form. Because no notice of proposed 

rulemaking is required, the provisions 

of the Regulatory Flexibility Act (5 

U.S.C. 601 et seq.) do not apply. 

Contemporaneous with the 

publication of this final rule, the 

Council is separately publishing 

proposed interpretive guidance that 

would replace the 2012 Interpretive 

Guidance. That proposal includes a 

request for public comment. 

II. Amendment to 12 CFR Part 1310 

In order to promote the Council’s 

engagement with market participants 

and other interested parties, the Council 

is adding a new section to the rules 

referenced above, stating that the 

Council shall not amend or rescind the 

interpretive guidance set forth in 

appendix A to the rules without 

providing the public with notice and an 

opportunity to comment under the 

Administrative Procedure Act. 

List of Subjects in 12 CFR Part 1310 

Brokers, Investments, Securities. 

In accordance with the foregoing, the 

Council amends 12 CFR part 1310 as 

follows: 

PART 1310—AUTHORITY TO REQUIRE 

SUPERVISION AND REGULATION OF 

CERTAIN NONBANK FINANCIAL 

COMPANIES 

■ 1. The authority citation for part 1310 

continues to read as follows: 

Authority: 12 U.S.C. 5321; 12 U.S.C. 5322; 

12 U.S.C. 5323. 

■ 2. Add § 1310.3 to read as follows: 

§ 1310.3 Amendments. 

The Council shall not amend or 

rescind appendix A to this part without 

providing the public with notice and an 

opportunity to comment in accordance 

with the procedures applicable to 

legislative rules under 5 U.S.C. 553. 

Dated: March 6, 2019. 

Bimal Patel, 

Deputy Assistant Secretary for the Financial 

Stability Oversight Council, Department of 

the Treasury. 

[FR Doc. 2019–04487 Filed 3–12–19; 8:45 am] 

BILLING CODE 4810–25–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2018–0991; Product 

Identifier 2017–SW–050–AD; Amendment 

39–19586; AD 2019–05–04] 

RIN 2120–AA64 

Airworthiness Directives; MD 

Helicopters, Inc. (MDHI), Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for MDHI 

Model 369A, 369D, 369E, 369FF, 369H, 

369HE, 369HM, 369HS, 500N, and 600N 

helicopters. This AD requires inspecting 

each main rotor blade (MRB) for a crack. 

This AD was prompted by reports of 

cracked MRBs. The actions of this AD 

are intended to address an unsafe 

condition on these helicopters. 

DATES: This AD is effective April 17, 

2019. 

ADDRESSES: For Helicopter Technology 

Company, LLC, service information 

identified in this final rule, contact 

Helicopter Technology Company, LLC, 

12902 South Broadway, Los Angeles, 

CA 90061; telephone (310) 523–2750; or 

at www.helicoptertech.com. For MD 

Helicopters service information 

identified in this final rule, contact MD 

Helicopters, Inc., Attn: Customer 

Support Division, 4555 E. McDowell 

Rd., Mail Stop M615, Mesa, AZ 85215– 

9734; telephone 1–800–388–3378; fax 

480–346–6813; or at http://

www.mdhelicopters.com. You may 

review a copy of the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 

10101 Hillwood Pkwy, Room 6N–321, 

Fort Worth, TX 76177. 

Examining the AD Docket 

You may examine the AD docket on 

the internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2018– 

0991; or in person at Docket Operations 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this AD, the 

economic evaluation, any comments 

received, and other information. The 

street address for Docket Operations 

(phone: 800–647–5527) is U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE, Washington, DC 

20590. 

FOR FURTHER INFORMATION CONTACT: 

Galib Abumeri, Aviation Safety 

Engineer, Los Angeles ACO Branch, 

Compliance & Airworthiness Division, 

FAA, 3960 Paramount Blvd., Lakewood, 

CA 90712; telephone (562) 627–5374; 

email galib.abumeri@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Discussion 

On November 26, 2018, at 83 FR 

60376, the Federal Register published 

our notice of proposed rulemaking 

(NPRM), which proposed to amend 14 

CFR part 39 by adding an AD that 

would apply to MDHI Model 369A, 

369D, 369E, 369FF, 369H, 369HE, 

369HM, 369HS, 500N, and 600N 

helicopters with a Helicopter 

Technology Company, LLC (HTC), MRB 

part number 369A1100, 369D21100, 

369D21102, 369D21120, 369D21121, 

369D21123, 500P2100, or 500P2300 

installed. The NPRM was prompted by 

reports of two operators finding cracks 

on an HTC-manufactured MRB and 

proposed to require repetitively 

inspecting each MRB trim tab for a 

crack. The proposed requirements were 

intended to prevent failure of an MRB 

and subsequent loss of control of the 

helicopter. 

In the ‘‘Costs of Compliance’’ section, 

the NPRM stated an incorrect number of 

U.S.-registered helicopters affected by 

this AD and subsequently, an incorrect 

estimated cost of the inspection for the 

U.S. fleet. We have corrected the cost 

information in this Final rule. 

Comments 

We gave the public the opportunity to 

participate in developing this AD, but 

we did not receive any comments on the 

NPRM. 

FAA’s Determination 

We have reviewed the relevant 

information and determined that an 

unsafe condition exists and is likely to 

exist or develop on other products of 

these same type designs and that air 

safety and the public interest require 

adopting the AD requirements as 

proposed. 

Related Service Information 

We reviewed HTC Mandatory Service 

Bulletin Notice No. 2100–9, dated May 

25, 2017 (SB 2100–9), which contains 


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