Federal Register / Vol. 60, No. 9 / Friday, January 13, 1995 / Notices 3235

the other agencies to implement section

350 of the Riegle Community

Development and Regulatory

Improvement Act of 1994, which deals

with the regulatory reporting and capital

treatment of certain recourse

transactions, as discussed in greater

detail on page 28 of Section One of this

report.

Push-Down Accounting

When a depository institution is

acquired in a purchase transaction, but

retains its separate corporate existence,

the institution is required to revalue all

of the assets and liabilities at fair value

at the time of acquisition. When pushdown accounting is applied, the same

revaluation made by the parent holding

company is made at the depository

institution level.

The three banking agencies require

push-down accounting when there is at

least a 95 percent change in ownership.

This approach is generally consistent

with interpretations of the Securities

and Exchange Commission.

The OTS requires push-down

accounting when there is at least a 90

percent change in ownership.

Negative Goodwill

The three banking agencies require

that negative goodwill be reported as a

liability, and not be netted against

goodwill assets. Such a policy ensures

that all goodwill assets are deducted in

regulatory capital calculations,

consistent with the Basle Accord.

The OTS permits negative goodwill to

offset goodwill assets reported in the

financial statements.

Offsetting

The three banking agencies generally

prohibit netting of assets and liabilities

in the Call Report. However, FASB

Interpretation No. 39 (FIN 39) netting

requirements have been adopted for Call

Report purposes solely for assets and

liabilities that arise from off-balancesheet instruments. For example, under

FIN 39, the assets and liabilities arising

from these contracts may be netted

when there is a legally enforceable

bilateral master netting agreement.

The OTS policy on netting for all

assets and liabilities is consistent with

GAAP, as set forth in FIN 39. FIN 39

allows institutions to offset assets and

liabilities (e.g., loans and deposits)

when four conditions are met.

Moreover, the OTS permits netting for

off-balance sheet conditional and

exchange contracts to the same extent as

the banking agencies.

By order of the Board of Governors of the

Federal Reserve System, January 9, 1995.

William W. Wiles,

Secretary of the Board.

[FR Doc. 95–900 Filed 1–12–95; 8:45 am]

BILLING CODE 6210–10–P

National Westminster Bank PLC.;

Acquisitions of Companies Engaged in

Permissible Nonbanking Activities

The organizations listed in this notice

have applied under § 225.23(a)(2) or (f)

of the Board’s Regulation Y (12 CFR

225.23(a)(2) or (f)) for the Board’s

approval under section 4(c)(8) of the

Bank Holding Company Act (12 U.S.C.

1843(c)(8)) and § 225.21(a) of Regulation

Y (12 CFR 225.21(a)) to acquire or

control voting securities or assets of a

company engaged in a nonbanking

activity that is listed in § 225.25 of

Regulation Y as closely related to

banking and permissible for bank

holding companies. Unless otherwise

noted, such activities will be conducted

throughout the United States.

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 on the

question whether consummation of the

proposal 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.’’ Any request for a

hearing on this question must be

accompanied by a statement of the

reasons 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.

Unless otherwise noted, comments

regarding each of these applications

must be received at the Reserve Bank

indicated for the application or the

offices of the Board of Governors not

later than January 27, 1995.

A. Federal Reserve Bank of New

York (William L. Rutledge, Senior Vice

President) 33 Liberty Street, New York,

New York 10045:

1. National Westminster Bank PLC,

London, England, and NatWest

Holdings, New York, New York; to

acquire BRS Capital Management, Inc.,

Boston, Massachusetts, and thereby

engage in investment advisory activities,

pursuant to § 225.25(b)(4) of the Board’s

Regulation Y.

A. Federal Reserve Bank of Kansas

City (John E. Yorke, Senior Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198:

1. First National of Nebraska, Inc.,

Omaha, Nebraska; to acquire Platte

Valley Finance Company, North Platte,

Nebraska, and thereby engage in

consumer finance lending, pursuant to §

225.25(b)(1) of the Board’s Regulation Y,

and credit insurance activities pursuant

to § 225.25(25(b)(8)(i) of the Board’s

Regulation Y.

Board of Governors of the Federal Reserve

System, January 9, 1995.

Jennifer J. Johnson,

Deputy Secretary of the Board.

[FR Doc. 95–901 Filed 1–12–95; 8:45 am]

BILLING CODE 6210–01–F

James A. Redding, 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

Governors. Comments must be received

not later than January 27, 1995,

A. Federal Reserve Bank of

Minneapolis (James M. Lyon, Vice

President) 250 Marquette Avenue,

Minneapolis, Minnesota 55480:

1. James A. Redding and Mary G.

Clark, both of Windom, Minnesota; each

to acquire 25.51 percent of the voting

shares of Windom State Investment

Company, Windom, Minnesota, and

thereby indirectly acquire Southwest

State Bank, Windom, Minnesota.

B. Federal Reserve Bank of Kansas

City (John E. Yorke, Senior Vice

President) 925 Grand Avenue, Kansas

City, Missouri 64198:

1. Gary D. Grable, Kansas City,

Missouri; to acquire 8.81 percent; John