Federal Register / Vol. 60, No. 237 / Monday, December 11, 1995 / Notices 63527

Currency, and the Federal Deposit

Insurance Corporation).

Current Actions: The proposed

revisions to the Report of Assets and

Liabilities of U.S. Branches and

Agencies of Foreign Banks (FFIEC 002)

that are the subject of this notice have

been approved by the FFIEC for

implementation as of the March 31,

1996, report date. Nonetheless, as is

customary for FFIEC 002 reporting

changes, U.S. branches are advised that,

for the March 31, 1996, report date,

reasonable estimates may be provided

for any new or revised item for which

the requested information is not readily

available.

The proposed revisions are

summarized as follows:

New Items

FFIEC 002 items in the following

areas would be added:

(1) Trading Assets and Liabilities

When off-balance-sheet derivative

contracts held by U.S. branches for

trading purposes are periodically

marked to market (or the lower of cost

or market, as appropriate), this process

results in the recording of the fair values

of derivatives that are in gain and loss

positions as on-balance-sheet assets and

liabilities, respectively. In order to

monitor the magnitude of these fair

values and changes therein, new items

would be added for the reporting of

these two amounts in the Memoranda

section of Schedule RAL, ‘‘Assets and

Liabilities.’’

(2) Past Due Derivatives

The FFIEC 002 does not currently

require disclosures about off-balance

sheet derivative contracts where the

counterparty is not performing in

accordance with the contractual terms.

Although the number of such contracts

is believed to be limited, the disclosure

of exposures associated with such

contracts will highlight, for supervisory

purposes, the most immediate risks

faced by a U.S. branch from its

involvement with off-balance-sheet

derivatives. Information about these

past due derivatives would be added to

the Memoranda section of Schedule N,

‘‘Past Due, Nonaccrual, and

Restructured Loans.’’ Amounts would

be separately reported for derivatives

that are past due 30 through 89 days and

for those past due 90 days or more.

Reported amounts associated with

derivatives that are past due 90 days or

more would also include information

about derivatives that, while not

technically past due, are with

counterparties that are not expected to

pay the full amounts owed to the

institution under the derivative

contracts. As with the information U.S.

branches currently report in Schedule

N, individual U.S. branch information

on derivatives for which payments are

delinquent would be treated as

confidential.

In these new items, U.S. branches

would first report the book value of any

amounts carried as assets on the balance

sheet that are related to those offbalance sheet derivatives for which any

required payment from the counterparty

is either past due 30 through 89 days or

past due 90 days or more. In addition,

in order to indicate the relative size and

volume of those contracts where the

counterparty is not performing, separate

Memoranda items would be provided

for reporting the current replacement

cost (if positive) for those contracts that

are past due 30 through 89 days and for

those that are past due 90 days or more.

Instructional Changes

Changes, which may affect how some

banks report certain information on the

FFIEC 002, would be made to the

instructions as follows.

(1) The FFIEC 002 Glossary entry for

‘‘Trading Account’’ would be revised to

incorporate parallel changes to the

FFIEC 031 instructions regarding report

changes implemented since 1994 on

trading assets and liabilities and the

treatment of off-balance-sheet

derivatives held for trading purposes. In

addition, the Glossary entry’s discussion

of the accounting for transfers to or from

a trading account would be brought into

conformity with FASB Statement no.

115, ‘‘Accounting for Certain

Investments in Debt and Equity

Securities.’’

(2) The instructions for the reporting

of commercial and industrial loans with

remaining maturity of

(i) one year or less and

(ii) of more than one year in the loan

schedule (Schedule C), would be

clarified to exclude nonaccrual status

loans in a manner consistent with the

reporting of maturity and repricing data

for loans and leases on the FFIEC 031.

Clarifications or other conforming

changes would also be made to several

other instructions.

Request for Comment

Comments submitted in response to

this Notice will be summarized or

included in the agencies’ requests for

OMB approval. All comments will

become a matter of public record.

Written comments should address the

accuracy of the burden estimates and

ways to minimize burden including the

use of automated collection techniques

or the use of other forms of information

technology as well as other relevant

aspects of the information collection

request.

Board of Governors of the Federal Reserve

System, December 5, 1995.

William W. Wiles,

Secretary of the Board.

[FR Doc. 95–30037 Filed 12–8–95; 8:45 am]

Billing Code 6210–01–F

Caisse Nationale de Credit Agricole,

S.A.; Notice to Engage in Certain

Nonbanking Activities

Caisse Nationale de Credit Agricole,

S.A., Paris, France (Notificant), has

provided notice pursuant to section

4(c)(8) of the Bank Holding Company

Act (12 U.S.C. 1843(c)(8)) (BHC Act) and

section 225.23(a)(3) of the Board’s

Regulation Y (12 CFR 225.23(a)(3)), to

engage through CAL FP (US), Inc., New

York, New York (Company), in the

following activities:

1. Acting as agent in the private

placement of securities;

2. Acting as riskless principal in the

purchase and sale of all types of

securities on behalf of customers;

3. Providing securities brokerage

services pursuant to 12 CFR

225.25(b)(15)(i) and (ii);

4. Providing investment advisory

services pursuant to 12 CFR

225.25(b)(4);

5. Acting as broker or agent and

providing advisory services with respect

to interest rate and currency swaps and

swap derivative products, and swaps,

swap derivative products and over-thecounter options linked to certain

commodities, stock, bond or commodity

indices, a hybrid of interest rates and

such commodities or indices, a specially

tailored basket of securities selected by

the parties, or single equity securities;

6. Providing advisory services,

including discretionary portfolio

management services, with respect to

futures and options on futures on

financial and nonfinancial commodities;

and

7. Providing foreign exchange

advisory and transactional services

pursuant to 12 CFR 225.25(b)(17).

Notificant has stated that it

anticipates that an affiliate of Company

would act as principal in transactions

with respect to which Company has

provided advisory and/or transactional

services. Company would provide the

proposed services throughout the world.

Company is an indirect subsidiary of

Credit Agricole Lazard Financial

Products Limited, London, England

(CALFP Holding). Notificant owns 75

percent of the capital of CALFP

Holding, and Three Houses Investment

Company, Limited, London, England
63528 Federal Register / Vol. 60, No. 237 / Monday, December 11, 1995 / Notices

(Three Houses), owns the remaining 25

percent. Notificant and Three Houses

have equal voting rights in CALFP

Holding. Three Houses is controlled by

Lazard Freres & Co., LLC, New York,

New York, Lazard Freres et Cie, Paris,

France, and Lazard Brothers & Co.,

Limited, London, England.

Section 4(c)(8) of the BHC Act

provides that a bank holding company

may, with Board approval, engage in

any activity which the Board, after due

notice and opportunity for hearing, has

determined (by order or regulation) to

be so closely related to banking or

managing or controlling banks as to be

a proper incident thereto. This statutory

test requires that two separate tests be

met for an activity to be permissible for

a bank holding company. First, the

Board must determine that the activity

is, as a general matter, closely related to

banking. Second, the Board must find in

a particular case that the performance of

the activity by the applicant bank

holding company may reasonably be

expected to produce public benefits that

outweigh possible adverse effects.

Notificant maintains that the Board

previously has determined by regulation

or order that the proposed activities are

closely related to banking. See 12 CFR

225.25(b)(4), (15), (17) and (19); Security

Pacific Corporation, 74 Fed. Res. Bull.

820 (1988); J.P. Morgan & Company,

Incorporated, 80 Fed. Res. Bull. 151

(1994); Swiss Bank Corporation, 81 Fed.

Res. Bull. 185 (1995); CS Holding, 81

Fed. Res. Bull. 803 (1995); Bankers

Trust New York Corporation, 75 Fed.

Res. Bull. 829 (1989). Notificant has

stated that Company would engage in

the proposed activities in accordance

with the limitations and conditions

established by the Board in its

regulations, related interpretations, and

orders.

In order to approve the proposal, the

Board also must determine that the

proposed activities to be conducted by

Notificant ‘‘can reasonably be expected

to produce benefits to the public, such

as greater convenience, increased

competition, or gains in efficiency, that

outweigh possible adverse effects, such

as undue concentration of resources,

decreased or unfair competition,

conflicts of interests, or unsound

banking practices.’’ 12 U.S.C. 1843(c)(8).

Notificant believes that the proposal

would produce public benefits that

outweigh any potential adverse effects.

In particular, Notificant maintains that

the proposal would enhance

competition in the relevant markets and

would enable Notificant to offer its

customers a broader range of services.

Notificant also maintains that its

proposal would not result in any

adverse effects in light of the

commitments it has made to the Board,

including commitments designed to

address the Board’s concerns over the

separation of a banking organization’s

activities from the activities of a coventurer. See Banque Nationale de

Paris, 80 Fed. Res. Bull. 638 (1994); The

Chuo Trust and Banking Company, 78

Fed. Res. Bull. 446 (1992).

In publishing the proposal for

comment, the Board does not take a

position on issues raised by the

proposal. Notice of the proposal is

published solely to seek the views of

interested persons on the issues

presented by the application and does

not represent a determination by the

Board that the proposal meets, or is

likely to meet, the standards of the BHC

Act. Any comments or requests for

hearing should be submitted in writing

and received by William W. Wiles,

Secretary, Board of Governors of the

Federal Reserve System, Washington,

D.C. 20551, not later than December 29,

1995. Any request for a hearing on this

application must, as required by §

262.3(e) of the Board’s Rules of

Procedure (12 CFR 262.3(e)), be

accompanied by a statement of the

reasons why a written presentation

would not suffice in lieu of a hearing,

identifying specifically any questions of

fact that are in dispute, summarizing the

evidence that would be presented at a

hearing, and indicating how the party

commenting would be aggrieved by

approval of the proposal.

This application may be inspected at

the offices of the Board of Governors or

the Federal Reserve Bank of Chicago.

Board of Governors of the Federal Reserve

System, December 5, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–30038 Filed 12–8–95; 8:45 am]

BILLING CODE 6210–01–F

First United Bancorporation, et al.;

Formations of; Acquisitions by; and

Mergers of Bank Holding Companies

The companies listed in this notice

have applied for the Board’s approval

under section 3 of the Bank Holding

Company Act (12 U.S.C. 1842) and §

225.14 of the Board’s Regulation Y (12

CFR 225.14) to become a bank holding

company or to acquire a bank or bank

holding company. The factors that are

considered in acting on the applications

are set forth in section 3(c) of the Act

(12 U.S.C. 1842(c)).

Each application is available for

immediate inspection at the Federal

Reserve Bank indicated. Once the

application has been accepted for

processing, it will also be available for

inspection at the offices of the Board of

Governors. Interested persons may

express their views in writing to the

Reserve Bank or to the offices of the

Board of Governors. Any comment on

an application that requests a hearing

must include a statement of why a

written presentation would not suffice

in lieu of a hearing, identifying

specifically any questions of fact that

are in dispute and summarizing the

evidence that would be presented at a

hearing.

Unless otherwise noted, comments

regarding each of these applications

must be received not later than January

8, 1996.

A. Federal Reserve Bank of

Richmond (Lloyd W. Bostian, Jr., Senior

Vice President) 701 East Byrd Street,

Richmond, Virginia 23261:

1. First United Bancorporation,

Anderson, South Carolina; to acquire

100 percent of the voting shares of The

Community Bank of Greenville, N.A.,

Greenville, South Carolina (in

organization).

B. Federal Reserve Bank of Atlanta

(Zane R. Kelley, Vice President) 104

Marietta Street, N.W., Atlanta, Georgia

30303:

1. Wilson Bank Holding Company,

Lebanon, Tennessee; to acquire 50

percent of the voting shares of DeKalb

Bank & Trust, Smithville, Tennessee (in

organization).

Board of Governors of the Federal Reserve

System, December 5, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–30039 Filed 12–8–95; 8:45 am]

BILLING CODE 6210–01–F

Rodney G. Joy, et al.; Change in Bank

Control Notices; Acquisitions of

Shares of Banks or Bank Holding

Companies

The notificants listed below have

applied under the Change in Bank

Control Act (12 U.S.C. 1817(j)) and §

225.41 of the Board’s Regulation Y (12

CFR 225.41) to acquire a bank or bank

holding company. The factors that are

considered in acting on the notices are

set forth in paragraph 7 of the Act (12

U.S.C. 1817(j)(7)).

The notices are available for

immediate inspection at the Federal

Reserve Bank indicated. Once the

notices have been accepted for

processing, they will also be available

for inspection at the offices of the Board

of Governors. Interested persons may

express their views in writing to the

Reserve Bank indicated for that notice

or to the offices of the Board of