[Federal Register Volume 66, Number 246 (Friday, December 21, 2001)]
[Notices]
[Pages 65964-65970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31434]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Proposed Collection; 
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

[[Page 65965]]

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 collection of information is 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 collection, 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 collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology.

DATES: Comments must be submitted on or before February 19, 2002.

ADDRESSES: Comments should be mailed to Jennifer J. Johnson, Secretary, 
Board of Governors of the Federal Reserve System, 20th Street and 
Constitution Avenue, N.W., Washington, DC 20551, or mailed 
electronically to <a href="/cdn-cgi/l/email-protection#c290a7a5b1eca1adafafa7acb6b182a4a7a6a7b0a3aeb0a7b1a7b0b4a7eca5adb4"><span class="__cf_email__" data-cfemail="24764143570a474b4949414a50576442414041564548564157415652410a434b52">[email protected]</span></a>. Comments addressed 
to Ms. Johnson may also be delivered to the Board's mail facility in 
the West Courtyard between 8:45 a.m. and 5:15 p.m., located on 21st 
Street between Constitution Avenue and C Street, N.W. Members of the 
public may inspect comments in room MP-500 of the Martin Building 
between 9:00 a.m. and 5:00 p.m. on weekdays pursuant to Sec.  261.12, 
except as provided in Sec.  261.14, of the Board's Rules Regarding 
Availability of Information, 12 CFR 261.12 and 261.14.
    A copy of the comments may also be submitted to the OMB desk 
officer for the Board: Alexander T. Hunt, Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 3208, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: A copy of the proposed form and 
instructions, the Paperwork Reduction Act Submission (OMB 83-I), 
supporting statement, 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. Mary M. West, 
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 Diane Jenkins (202-452-3544), Board of 
Governors of the Federal Reserve System, Washington, DC 20551.

SUPPLEMENTARY INFORMATION:

Proposal to approve under OMB delegated authority the or the 
implementation of the following report:

1. Report title: Intermittent Survey of Businesses
Agency form number: FR 1374
OMB control number: 7100- to be assigned
Frequency: Biweekly and semiannually
Reporters: Purchasing managers, economists, or other knowledgeable 
individuals at business firms
Annual reporting hours: 125 hours
Estimated average hours per response: 15 minutes
Number of respondents: biweekly, 10; semiannually, 120
Small businesses are affected.
General description of report: This information collection is voluntary 
(12 U.S.C. Secs. 225a, 263, and 15 U.S.C. Sec. 1691b) and is given 
confidential treatment (5 U.S.C. 552(b)(6)).
Abstract: The proposed survey would be used by the Federal Reserve to 
gather information that would be specifically tailored to the Federal 
Reserve's policy and operational responsibilities. It is necessary to 
conduct the survey biweekly to keep up with the rapidly changing 
developments in the economy and to provide timely information to staff 
and Board members. Usually, the surveys would be conducted by staff 
economists telephoning purchasing managers, economists, or other 
knowledgeable individuals at selected, relevant businesses. The content 
of the questions and the businesses contacted would vary depending on 
changing developments in the economy.

Proposal to approve under OMB delegated authority the extension for 
three years, with revision, of the following reports:

1. 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, Edge and agreement 
corporations
Annual reporting hours: 38 hours
Estimated average hours per response: 15 minutes
Number of respondents: 150
Small businesses are not affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 321, 601, 602, 615, and 1844(c)) and is not given 
confidential treatment.
Abstract: Member banks, bank holding companies, and Edge and agreement 
corporations are required to notify the Federal Reserve System of the 
opening, closing, or relocation of an foreign branch. The notice 
requires information on the location and extent of service provided by 
the branch and is filed within thirty days of the change in status. The 
Federal Reserve System needs the information to fulfill supervisory 
responsibilities specified in Regulation K, including the supervision 
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.
Regulation K, ``International Banking Operations,'' sets forth the 
conditions under which a foreign branch may be established. According 
to the final rule on Regulation K, published in the Federal Register on 
October 26, 2001 (66 FR 54345), organizations must give thirty days 
prior notice to the Board before the establishment of branches in the 
first two foreign countries. For subsequent branch establishments into 
additional foreign countries, organizations must give the Federal 
Reserve System twelve days prior written notice. The FR K-1, 
``International Applications and Prior Notifications Under Subparts A 
and C of Regulation K'' (OMB No. 7100-0107) will be used for these 
notices. Organizations use the FR 2058 notification to notify the 
Federal Reserve when any of these branches has been opened, closed, or 
relocated.

[[Page 65966]]

Current Actions: The proposed revisions include adding the location of 
the reporting institution and the subsidiary and a few minor technical 
clarifications.
2. Report title: International Applications and Prior Notifications 
under Subparts A and C of Regulation K
Agency form number: FR K-1
OMB control number: 7100-107
Frequency: on occasion
Reporters: state member banks, national banks, bank holding companies, 
Edge and agreement corporations, and certain foreign banking 
organizations
Annual reporting hours: 695 hours
Estimated average hours per response: Attachments A and B, 11.5 hours; 
Attachments C through G, 10 hours; Attachments H and I, 15.5 hours; 
Attachment J, 10 hours; Attachment K, 20 hours
Number of respondents: 39
Small businesses are not affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 601-604(a), 611-631, 1843(c)(13), 1843(c)(14), and 1844(c)) 
and is not given confidential treatment. The applying organization has 
the opportunity to request confidentiality for information that it 
believes will qualify for a Freedom of Information Act exemption.
Abstract: The FR K-1 comprises a set of applications and notifications 
that govern the formation of Edge or agreement corporations and the 
international and foreign activities of U.S. banking organizations. The 
applications and notifications collect information on projected 
financial data, purpose, location, activities, and management. The 
Federal Reserve requires these applications for regulatory and 
supervisory purposes and to allow the Federal Reserve to fulfill its 
statutory obligations under the Federal Reserve Act and the Bank 
Holding Company Act of 1956.
Current Actions: The proposed changes incorporate revisions to 
Regulation K, published in the Federal Register on October 26, 2001, 
which became effective November 26, 2001 (66 FR 54345). Technical 
changes to each of the existing attachments are proposed to conform 
with the new regulatory language. One new attachment is proposed for 
applications by U.S. banking organizations to invest in excess of 10 
percent of capital and surplus in Edge corporations. This change is 
necessary as a result of The Economic Growth and Regulatory Paperwork 
Reduction Act of 1996. In addition, the Federal Reserve proposes to add 
certain new items, which are often requested after the application has 
been filed. Finally, several items that are no longer relevant would be 
deleted from the attachments.
3. Report title: Consolidated Financial Statements for Bank Holding 
Companies
Agency form number: FR Y-9C
OMB control number: 7100-0128
Frequency: Quarterly
Reporters: Bank holding companies
Annual reporting hours: 252,675 hours
Estimated average hours per response: 33.98 hours
Number of respondents: 1,859
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (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.
Abstract: The FR Y-9C consists of standardized consolidated financial 
statements 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 is filed 
quarterly by top-tier bank holding companies that have total assets of 
$150 million or more and by lower-tier bank holding companies 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.
Current Actions: Many of the proposed reporting revisions are being 
requested to parallel revisions to the March 31, 2002, Call Reports. 
The Federal Reserve may modify the proposed revisions to the FR Y-9C 
consistent with any modified revisions to the Call Report ultimately 
adopted by the FFIEC.

Revisions to parallel proposed changes to the Call Report:

    Schedule HI - Report of Income
    Replace existing item 7.c, ``Amortization expense of intangible 
assets (including goodwill),'' with two items: item 7.c.(1), ``Goodwill 
impairment losses,'' and item 7.c.(2), ``Amortization expense and 
impairment losses for other intangible assets.'' Along with appropriate 
revisions to the FR Y-9C instructions (e.g., goodwill should not be 
amortized), this change will conform the reporting of amortization 
expense and impairment losses for intangibles in the FR Y- the 
provisions of Financial Accounting Standards Board (FASB) Statement No. 
142, Goodwill and Other Intangible Assets. In July 2001, the FASB 
issued Statement No. 142, which, in general, is effective for fiscal 
years beginning after December 15, 2001. Under this standard, goodwill 
will no longer be amortized, but will be tested for impairment on an 
annual basis and between annual tests in certain circumstances. Other 
intangible assets will be tested for impairment in accordance with the 
standard and some of these intangibles must be amortized. Statement No. 
142 also states that ``goodwill impairment losses shall be presented as 
a separate line item in the income statement before the subtotal income 
from continuing operations (or similar caption) unless a goodwill 
impairment loss is associated with a discontinued operation.''
    Bank holding companies must adopt Statement No. 142 for reporting 
purposes upon its effective date based on their fiscal year. At 
present, bank holding companies report the amortization expense of 
intangible assets, including goodwill amortization, in item 7.c of the 
income statement (Schedule HI).
    Schedule HI-B, Part II - Changes in Allowance for Loan and Lease 
Losses
    Move the disclosure now made in Notes to the Income Statement, item 
1, directly into Schedule HI-B, part II, item 5, ``Adjustments.'' This 
item would be modified by creating item 5.a, ``LESS: Write-downs 
arising from transfers of loans to the held-for- sale account,'' and 
item 5.b, ``Other adjustments.'' On March 26, 2001, the agencies issued 
Interagency Guidance on Certain Loans Held for Sale to provide 
instruction about the appropriate accounting and reporting treatment 
for certain loans that are sold directly from the loan portfolio or 
transferred to a held-for-sale (HFS) account. While the interagency 
guidance applies to banks, savings associations, and federal credit 
unions, it is also to be followed by bank holding companies that file 
regulatory reports based on Generaaly Accepted Accounting Principles 
(GAAP) as stated in the Federal Reserve's SR Letter 01-12.
    One element of the guidance reminds institutions to appropriately 
report reductions in the value of loans transferred to held-for-sale 
through a write-down of the recorded investment to fair value upon 
transfer. Currently this write-down is reported as a charge-off in part 
I of Schedule HI-B - Charge-offs and Recoveries on Loans and Leases and 
Changes in Allowance for Loan and Lease Losses, and the corresponding 
reduction in the allowance is reported as an ``Adjustment'' to the 
allowance in item 5 of part II of this schedule. Write-

[[Page 65967]]

downs included in part II, item 5, are also disclosed in Notes to the 
Income Statement and described as ``Write-downs arising from transfers 
of loans to HFS.'' A preprinted caption to that effect was inserted in 
Notes to the Income Statement, item 1, in the June 30, 2001, FR Y-9C 
report. The proposed change would simplify the reporting of these 
write-downs.
    Schedule HC - Consolidated Balance Sheet
    Separate the reporting of federal funds sold from securities 
purchased under agreements to resell (current item 3) and federal funds 
purchased from securities sold under agreements to repurchase (current 
item 14). The revised balance sheet would have separate asset and 
liability items for federal funds transactions (items 3.a and 14.a) and 
for other securities resale/repurchase agreements (items 3.b. and 
14.b). Federal funds transactions would include securities resale/
repurchase agreements involving the receipt of immediately available 
funds that mature in one business day or roll over under a continuing 
contract.
    Schedule HC-L -Derivatives and Off-Balance-Sheet Items
    Add four new items to capture the gross positive and gross negative 
fair values of credit derivatives where the bank holding company or any 
of its consolidated subsidiaries is the guarantor (items 7.a.(1) and 
(2)) and where the bank holding company or any of its consolidated 
subsidiaries is the beneficiary (items 7.b.(1) and (2)).
    Schedule HC-N - Past Due and Nonaccrual Loans, Leases, and Other 
Assets
    1. Revise Schedule HC-N to collect the amount of closed-end loans 
secured by first mortgages on 1-4 family residential properties (in 
domestic offices) that are past due 30 days or more or in nonaccrual 
status separately from past due and nonaccrual closed-end loans secured 
by junior liens on such properties (in domestic offices). A similar 
change would be made to the reporting of first and junior lien 1-4 
family residential mortgages (in domestic offices) in Schedule HI-B, 
part I, Charge-offs and Recoveries on Loans and Leases. Currently, 
these two types of residential mortgage loans are combined for purposes 
of reporting past due and nonaccrual loan data as well as year-to-date 
charge-offs and recoveries. The revised reporting structure for 
residential mortgage loans in Schedule HC-N, item 1.c.(2), and Schedule 
HI-B, part I,item 1.c.(2), would then parallel the reporting for these 
types of loans (in domestic offices) in Schedule HC-C, Loans and Lease 
Financing Receivables, item 1.c.(2)(a) and (b).
    2. Add new Memorandum item 5, ``Loans and leases held for sale 
(included in Schedule HC-N, items 1 through 8, above),'' to 
specifically break out such loans and leases that are past due 30 
through 89 days and still accruing, past due 90 days or more and still 
accruing, or in nonaccrual status. Existing memorandum item 5 would be 
renumbered to memorandum item 6.
    Schedule HC-R Regulatory Capital
    Add a new subtotal within the computation of Tier 1 capital. In 
items 1 through 11 of Schedule HC-R, bank holding companies report 
their computation of Tier 1 capital. Items 8 and 9 are used to disclose 
any disallowed Servicing assets and purchased credit card relationships 
and any disallowed deferred tax assets, respectively. These disallowed 
amounts are calculated, in part, by reference to a subtotal of Tier 1 
capital components. The instructions for Schedule HC-R explain how this 
subtotal should be derived by adding and subtracting, as appropriate, 
amounts reported in items 1 through 7 of Schedule HC-R, but the amount 
of the subtotal is not directly reported in the schedule itself. To 
help ensure that bank holding companies are using the proper subtotal 
when determining whether they have any disallowed amounts, existing 
items 8 and 9 will be renumbered as items 9.a and 9.b and item 8 will 
become the subtotal of items 1 through 7 (i.e., the sum of items 1 and 
6, less items 2, 3, 4, 5, and 7).

Other Revisions Not Related to Call Report Changes:

    The following proposed revisions are not directly related to the 
proposed Call Report changes for March 2002. Some of these changes are 
proposed to provide greater consistency with current Call Report items 
that are not part of the March 2002 revisions.
    Schedule HI - Report of Income
1. Revise memoranda item 6, ``Other noninterest income (itemize and 
describe the three largest amounts that exceed 1% of the sum of 
Schedule HI, items 1.h and 5.m)'' and memoranda item 7, ``Other 
noninterest expense (itemize and describe the three largest amounts 
that exceed 1% of the sum of Schedule HI, items 1.h and 5.m),'' to add 
line item captions for several of the more commonly listed significant 
components for each item. Blank text fields like those presently 
contained in memoranda items 6 and 7 will be retained for noninterest 
income and expense items not specifically covered in the preprinted 
captions. In addition, memoranda items 6 and 7 would collect all 
amounts that exceed the 1 percent threshold, not just the three largest 
amounts. The new line item captions for the noninterest income 
categories would be: 6(a), ``Income and fees from the printing and sale 
of checks,'' 6(b), ``Earnings on/increase in value of cash surrender 
value of life insurance,'' 6(c), ``Income and fees from automated 
teller machines (ATMs),'' 6(d), ``Rent and other income from other real 
estate owned,'' and 6(e), ``Safe deposit box rent.'' The new line item 
captions for the noninterest expense categories would be: 7(a), ``Data 
processing expenses,'' 7(b), ``Advertising and marketing expenses,'' 
7(c), ``Directors' fees,'' 7(d), ``Printing, stationery, and 
supplies,'' 7(e), ``Postage,'' 7(f), ``Legal fees and expenses,'' and 
7(g), ``FDIC deposit insurance assessments.'' These captions are 
consistent with categories used on the Call Report and were determined 
from analysis of predominantly listed items on the FR Y-9C. 
Furthermore, the Federal Reserve proposes to eliminate the use of the 
three-digit text codes (TEXC) in memoranda items 6 and 7 that are used 
internally by the Federal Reserve System. With the addition of the 
proposed line item captions for other noninterest income and expense, 
the Federal Reserve would find the codes to be of limited use.
2. Eliminate the use of the three-digit text codes (TEXC) in Memoranda 
item 8, ``Extraordinary items and other adjustments,'' that are used 
internally by the Federal Reserve System. In addition, the preprinted 
caption item in 8.a.(1) would be changed to ``Effect of adopting FAS 
142, Goodwill and Other Intangible Assets.'' The previous caption 
identifying the effect of adopting FAS 133, Accounting for Derivative 
Instruments and Hedging Activities, is no longer pertinent.
3. Modify the criteria for the reporting of Memoranda item 9, ``Trading 
revenue (from cash instruments and derivative instruments'' to instruct 
that this item is to be completed by bank holding companies that 
reported average trading assets (Schedule HC-K, item 4.a) of $2 million 
or more for any quarter of the preceding calendar year, rather than as 
of the March 31st report date of the current calendar year. Bank 
holding companies began reporting average trading assets as of the 
March 31, 2001, reporting date, so this information was not available 
for the preceding calendar year. This reporting threshold would now be 
consistent with the bank Call Report.

[[Page 65968]]

4. Breakout existing memorandum item 12(b), ``Premiums,'' into two 
separate items: Memorandum item 12(b)(1), ``Premiums on insurance 
related to extension of credit,'' and memorandum item 12(b)(2), ``All 
other insurance premiums.'' This breakout would provide an indication 
of the extent to which insurance underwriting activities are credit 
related.
    Schedule HC- Trading Assets and Liabilities
    Similar to the change proposed to Schedule HI, Memoranda item 9, 
``Trading revenue (from cash instruments and derivative instruments),'' 
modify the criteria for the filing of Schedule HC-D to instruct that 
this schedule is to be completed by bank holding companies that 
reported average trading assets (Schedule HC-K, item 4.a) of $2 million 
or more for any quarter of the preceding calendar year, rather than as 
of the March 31st report date of the current calendar year.
    Schedule HC-I - Insurance-Related Activities
    Several revisions are proposed for Schedule HC-I. The general 
instructions would be revised to require that this schedule be 
completed by all top-tier BHCs and not only by top-tier financial 
holding companies (FHCs) or top-tier BHCs that have an FHC designation 
at some level in its multi-tiered organization. The schedule would be 
retitled as ``Insurance-Related Underwriting Activities (including 
reinsurance)'' and appropriate adjustments would be made to the 
instructions. The new line items that are proposed for both Part I, 
Property and Casualty, and Part II, Life and Health, include the 
separate reporting of (1) total assets, (2) total equity, and (3) net 
income, for each of these two types of underwriting activities. In 
addition, Part II, Life and Health, would include a new item for the 
reporting of reinsurance recoverables. Finally, Part III, All 
Insurance-Related Activities, would be eliminated because of the 
revisions made to Parts I and II.
    Schedule HC-L Derivatives and Off-Balance-Sheet Items
    Revise item 9, ``All other off-balance-sheet items (exclude 
derivatives) (itemize and describe each component of this item over 25% 
of Schedule HC, item 28, ``Total equity capital'')'' to add line item 
captions for some of the more commonly listed significant components 
for each item. Blank text fields like those presently contained in item 
9 will be retained for other off-balance-sheet items not specifically 
covered in the new line item captions. The new line item captions would 
be: 9(a), ``Securities borrowed,'' 9(b), ``Commitments to purchase 
when-issued securities,'' and 9(c), ``Commitments to sell when-issued 
securities.'' These captions are consistent with categories used on the 
Call Report. Furthermore the Federal Reserve proposes to eliminate the 
use of the three-digit text codes (TEXC) in item 9 that are used 
internally by the Federal Reserve System.
    Schedule HC-M - Memoranda
1. Revise the yes/no question asked in item 8 to ask if a business 
combination occurred during the calendar year that was accounted for by 
the purchase method of accounting.
The current question asked in item 8 is whether the bank holding 
company's consolidated financial statements reflect any business 
combinations for which the pooling-of-interest method of accounting was 
used. On July 2001, the FASB issued Statement No. 141, Business 
Combinations. The Statement requires that all business combinations 
initiated after June 30, 2001, be accounted for using the purchase 
accounting method, thereby eliminating the use of the pooling-of-
interest method.
2. Incorporate into Schedule HC-M two of the items currently reported 
on the FR Y-9CS, Supplement to the Consolidated Financial Statements 
for Bank Holding Companies. Only top-tier FHCs would continue to report 
these items. Top-tier FHCs would report in Memoranda items 20 and 21 
the net assets of (1) Broker-Dealer subsidiaries engaged in 
underwriting or dealing securities pursuant to Section 4(k)(4)(E) of 
the Bank Holding Company Act as amended by the Gramm-Leach- Bliley Act 
of 1999 (GLB Act), and (2) Insurance underwriting subsidiaries. In 
addition, these two items would no longer be considered confidential. 
The Federal Reserve would continue tracking the growth in these 
activities by FHCs subsequent to the enactment of the GLB Act.
    Schedule HC-R - Regulatory Capital
    Make a technical revision to memorandum item 3. The caption to 
memorandum item 3 would be revised to eliminate the term ``perpetual'' 
from the caption. The caption for memorandum item 3 would be 
``Preferred stock (including related surplus)''. In addition, existing 
memorandum item 3(a)(3) would be renumbered as memorandum item 3(b) to 
distinguish between the reporting of perpetual preferred stock (in 
memorandum items 3(a)(1) and 3(a)(2)) and trust preferred securities 
that are reported in minority interest on the balance sheet. The line 
item caption for memorandum item 3(b) would not change - only the line 
item number to provide clarity for the reporting of these types of 
securities.
    Instructions
    Instructional revisions and clarifications will be done in 
accordance with changes made to the Call Report instructions or will 
correspond to existing Call Report instructions. In addition, 
instructional revisions and clarifications will be made as necessary 
with respect to proposed revisions not directly related to the proposed 
Call Report changes for March 2002.
4. Report title: Parent Company Only Financial Statements for Large 
Bank Holding Companies
Agency form number: FR Y-9LP
OMB control number: 7100-0128
Frequency: Quarterly
Reporters: Bank holding companies
Annual reporting hours: 40,495 hours
Estimated average hours per response: 4.55 hours
Number of respondents: 2,225
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). Confidential treatment is not routinely 
given to the data in this report. However, confidential treatment for 
the reporting information, in whole or in part, can be requested in 
accordance with the instructions to the form.
Abstract: The FR Y-9LP includes standardized financial statements filed 
quarterly on a parent company only basis from each bank holding company 
that files the FR Y-9C. In addition, for tiered bank holding companies, 
a separate FR Y-9LP must be filed for each lower tier bank holding 
company.
Current actions: The Federal Reserve proposes the following revisions 
to the FR Y-9LP effective with the March 31, 2002, reporting date for 
the reporting of additional information about trust preferred 
securities.
    Schedule PI-Parent Company Only Income Statement
    Add memorandum item 4, ``Interest expense paid to special-purpose 
subsidiaries that issued trust preferred securities.'' In these types 
of transactions, a special-purpose subsidiary (typically, a trust) of 
the parent company issues preferred securities and lends the proceeds 
to the parent company in exchange for an intercompany note from the 
parent company. Because of the tremendous growth in the issuance of 
trust preferred securities by special purpose entities of bank holding 
companies as a funding source for bank holding companies, the Federal 
Reserve proposes to isolate the amount of interest expense that is 
being paid by the parent to the special-

[[Page 65969]]

purpose subsidiaries that issue trust preferred securities.
    Schedule PC-B - Memoranda
    Add item 16, ``Notes payable to special-purpose subsidiaries that 
issued trust preferred securities.'' Currently, the amount of notes 
payable to special-purpose subsidiaries that issue trust preferred 
securities is included as part of the overall amount reported in 
Schedule PC, item 18(b), ``Balances due to nonbank subsidiaries.'' 
Because of the tremendous growth in the issuance of trust preferred 
securities by special purpose entities of bank holding companies as a 
funding source for bank holding companies, the Federal Reserve proposes 
to isolate the amount of the notes payable to these special-purpose 
subsidiaries that issue trust preferred securities as a separate item 
from the overall intercompany balances due to nonbank subsidiaries by 
parent bank holding companies.
    Instructions
    Instructional revisions and clarifications will be made as 
necessary in an attempt to achieve greater consistency in reporting by 
respondents.
5. Report title: Parent Company Only Financial Statements for Small 
Bank Holding Companies
Agency form number: FR Y-9SP
OMB control number: 7100-0128
Frequency: Semiannual
Reporters: Bank holding companies
Annual reporting hours: 28,273 hours
Estimated average hours per response: 3.89 hours
Number of respondents: 3,634
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). Confidential treatment is not routinely 
given to the data in this report. However, confidential treatment for 
the reporting information, in whole or in part, can be requested in 
accordance with the instructions to the form.
Abstract: The FR Y-9SP is a parent company only financial statement 
filed on a semiannual basis by 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 report, an abbreviated version of the 
more extensive FR Y-9LP, is designed to obtain basic balance sheet and 
income statement information for the parent company, information on 
intangible assets, and information on intercompany transactions.
Current actions: The Federal Reserve proposes the following revisions 
to the FR Y-9SP effective with the June 30, 2002, reporting date in a 
manner consistent with the previously described changes to the FR Y-9C 
and FR Y-9LP.
    Income statement
    Add memorandum item 3, ``Interest expense paid to special-purpose 
subsidiaries that issued trust preferred securities.'' Similar to 
larger bank holding companies, smaller bank holding companies are also 
utilizing these types of transactions (see the FR Y-9LP discussion). 
The Federal Reserve proposes to isolate the amount of interest expense 
that is being paid by the parent to the special-purpose subsidiaries 
that issue trust preferred securities.
    Balance Sheet
1. Revise memoranda item 11, ``Other assets (itemize and describe 
amounts that exceed 25% of balance sheet, line item 7)'' and memoranda 
item 12, ``Other liabilities (itemize and describe amounts that exceed 
25% of the balance sheet, line item 13),'' to add line item captions 
for several of the more commonly listed significant components for each 
item. Blank text fields like those presently contained in memoranda 
items 11 and 12 will be retained for other asset and other liability 
items not specifically covered in the new line item captions. The new 
line item captions for the other asset categories would be: 11(a), 
``Accounts receivable,'' 11(b), ``Income taxes receivable,'' 
11(c)``Premises and fixed assets,'' 11(d), ``Deferred tax assets,'' and 
11(e), ``Cash surrender value of life insurance policies.'' The new 
line item captions for the other liability categories would be: 12(a), 
``Accounts payable,'' 12(b), ``Income taxes payable,'' 12(c) 
``Dividends payable,'' and 12(d), ``Deferred tax liabilities.''
Furthermore, the Federal Reserve proposes to eliminate the use of the 
three-digit text codes (TEXC) in memoranda items 11 and 12 that are 
used internally by the Federal Reserve System. With the addition of 
these preprinted captions for other assets and other liabilities, the 
Federal Reserve would find the codes to be of limited use.
2. Add a new memorandum item 13, ``Notes payable to special-purpose 
subsidiaries that issued trust preferred securities.'' Currently, the 
amount of notes payable to special-purpose subsidiaries that issue 
trust preferred securities is included as part of the overall amount 
reported on the Balance Sheet, in item 14(b), ``Balances due to nonbank 
subsidiaries and related institutions.'' Similar to larger bank holding 
companies, smaller bank holding companies are also utilizing these 
types of transactions (see the FR Y-9LP discussion). The Federal 
Reserve is interested in isolating the amount of intercompany notes 
payable by the parent to special-purpose subsidiaries that issue trust 
preferred securities.
3. Incorporate two of the items currently reported on the FR Y-9CS, 
Supplement to the Consolidated Financial Statements for Bank Holding 
Companies. Only top-tier FHCs would continue to report these items. 
Top-tier FHCs would report in memorandum items 21 and 22 the net assets 
of (1) Broker-Dealer subsidiaries engaged in underwriting or dealing 
securities pursuant to Section 4(k)(4)(E) of the Bank Holding Company 
Act as amended by the GLB Act, and (2) Insurance underwriting 
subsidiaries. In addition, these two items would no longer be 
considered confidential. The Federal Reserve would continue tracking 
the growth in these activities by FHCs subsequent to the enactment of 
the GLB Act.
    Instructions
    Instructional revisions and clarifications will be made as 
necessary in an attempt to achieve greater consistency in reporting by 
respondents.
6. Report title: Supplement to the Consolidated Financial Statements 
for Bank Holding Companies
Agency form number: FR Y-9CS
OMB control number: 7100-0128
Frequency: on occasion
Reporters: Bank holding companies
Annual reporting hours: 1,200 hours
Estimated average hours per response: 0.50 hour
Number of respondents: 600
Small businesses are affected.
General description of report: This information collection is mandatory 
(12 U.S.C. 1844(b) and (c)). The Federal Reserve considers the 
information on the current version of the report form confidential 
pursuant to the Freedom of Information Act (5 U.S.C. 554(b)(4)), except 
for item 4.
Abstract: 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. Due to the enactment of the GLB Act in 1999, the current 
version of this supplement was implemented in 2000 to collect basic 
information about the new activities of FHCs.
Current actions: As of March 2002, the current version of this free 
form supplement will no longer be used and some of the items have been 
moved to other reporting forms. The disposition of each item on the 
current supplement is discussed in detail below. However, if other 
emerging issues arise that

[[Page 65970]]

require its use, the Federal Reserve may use the FR Y-9CS to collect 
other supplementary information.
1. As mentioned above, net assets of broker-dealer subsidiaries engaged 
in underwriting or dealing securities pursuant to Section 4(k)(4)(E) of 
the Bank Holding Company Act as amended by the GLB Act (current item 1, 
Column B), and net assets of insurance underwriting subsidiaries 
(current item 2, Column B) would now be reported on the FR Y-9C and FR 
Y-9 SP. However, these two items would no longer be considered 
confidential. The remaining columns for gross assets (Column A), equity 
capital (Column C), and net income (Column D) would no longer be 
collected as separate items.
2. Investments held under merchant banking authority (current item 3) 
is now collected from institutions that meet the reporting criteria for 
the Consolidated Bank Holding Company Report of Equity Investments in 
Nonfinancial Companies (FR Y-12; OMB No. 7100-0300).
3. The information related to current item 4 on whether the FHC has any 
subsidiaries engaged in newly authorized insurance agency activities is 
collected on the Report of Changes in Organizational Structure (FR Y-
10; OMB No. 7100-0297).

    Board of Governors of the Federal Reserve System, December 17, 
2001.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 01-31434 Filed 12-20-01; 8:45 am]
BILLING CODE 3510-22-S


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