Federal Register, Volume 76 Issue 41 (Wednesday, March 2, 2011)

[Federal Register Volume 76, Number 41 (Wednesday, March 2, 2011)]
[Notices]
[Pages 11474-11482]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-4568]

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FEDERAL RESERVE SYSTEM

Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB

SUMMARY: Background. Notice is hereby given of the final approval of
proposed information collections by the Board of Governors of the
Federal Reserve System (Board) under OMB delegated authority, as per 5
CFR 1320.16 (OMB Regulations on Controlling Paperwork Burdens on the
Public). Board-approved collections of information are incorporated
into the official OMB inventory of currently approved collections of
information. Copies of the Paperwork Reduction Act Submission,
supporting statements and approved collection of information
instrument(s) 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.

FOR FURTHER INFORMATION CONTACT: Cynthia Ayouch, Acting 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 (202-263-4869), Board of Governors of the Federal
Reserve System, Washington, DC 20551.
OMB Desk Officer--Shagufta Ahmed --Office of Information and
Regulatory Affairs, Office of Management and Budget, New Executive
Office Building, Room 10235, Washington, DC 20503.
Final approval under OMB delegated authority of the extension for
three years, with revision of the following reports:
1. Report title: Financial Statements for Bank Holding Companies.
Agency form number: FR Y-9C, FR Y-9LP.
OMB control number: 7100-0128.
Effective Date: March 31, 2011.
Frequency: Quarterly.
Reporters: Bank holding companies.
Estimated annual reporting hours: FR Y-9C: 188,820; FR Y-9LP:
27,195.
Estimated average hours per response: FR Y-9C: 45.0; FR Y-9LP:
5.25.
Number of respondents: FR Y-9C: 1,049; FR Y-9LP: 1,295.
General description of report: This information collection is
mandatory (12 U.S.C. 1844(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, pursuant to sections
(b)(4) and (b)(6) of the Freedom of Information Act (5 U.S.C.
522(b)(4), (b)(6)).
Abstract: The FR Y-9C and the FR Y-9LP are standardized financial
statements for the consolidated bank holding company (BHC) and its
parent. The FR Y-9 family of reports historically has been, and
continues to be, the primary source of financial information on BHCs
between on-site inspections. Financial information from these reports
is used to detect emerging financial problems, to review performance
and conduct pre-inspection analysis, to monitor and evaluate capital
adequacy, to evaluate BHC mergers and acquisitions, and to analyze a
BHC's overall financial condition to ensure safe and sound operations.
The FR Y-9C consists of standardized 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) filed by commercial banks. The FR Y-9C
collects consolidated data from BHCs. The FR Y-9C is filed by top-tier
BHCs with total consolidated assets of $500 million or more. (Under
certain circumstances defined in the General Instructions, BHCs under
$500 million may be required to file the FR Y-9C).
The FR Y-9LP includes standardized financial statements filed
quarterly on a parent company only basis from each BHC that files the
FR Y-9C. In addition, for tiered BHCs, a separate FR Y-9LP must be
filed for each lower tier BHC.
Current Actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, with revision, of the Financial
Statements for Bank Holding Companies. The comment period expired on
January 3, 2011. The Federal Reserve received two comment letters from
bankers' organizations on proposed revisions to the FR Y-9C and FR Y-
9LP. In addition, the Federal Reserve, Federal Deposit Insurance
Corporation (FDIC), and the Office of the Comptroller of the Currency
(the banking agencies) received nine comment letters on proposed
revisions to the Call Reports, which parallel proposed revisions to the
FR Y-9C, from three banks, three bankers' organizations, two bank
insurance consultants, and an insurance company.
No comments were received on the following revisions that were
proposed to take effect as of March 31, 2011, and therefore the Federal
Reserve will implement these revisions as proposed: (1) The break out
of commercial mortgage-backed securities issued or guaranteed by U.S.
Government agencies and sponsored agencies, (2) the break out of loans
and other real estate owned (OREO) information covered by FDIC loss-
sharing agreements by loan and OREO category, (3) the addition of new
data items for the total assets of captive insurance and reinsurance
subsidiaries, (4) the addition of new income statement items for credit
valuation adjustments and debit valuation adjustments included in
trading revenues (for BHCs with total assets of $100 billion or more),
(5) the revision of reporting instructions for construction lending,
and (6) the collection of expanded information on the quarterly-
averages schedule.
The following section of this notice describes the remaining
proposed FR Y-9C and FR Y-9LP report changes and discusses the Federal
Reserve's evaluation of the comments received on the proposed changes.
After considering the comments, the Federal Reserve will move forward
in 2011 with the proposed reporting changes after making certain
modifications in response to the comments.
The Federal Reserve recognizes institutions' need for lead time to
prepare for reporting changes. Thus, consistent with longstanding
practice, for the March 31, 2011, report date, BHCs may provide
reasonable estimates for any new or revised FR Y-9C data item initially
required to be reported as of that date for which the requested
information is not readily available. Furthermore, the specific wording
of the captions for the new or revised FR Y-9C data items discussed in
this notice and the numbering of these data items should be regarded as
preliminary.

Revisions--FR Y-9C

Revisions Related to Call Report Revisions

The Federal Reserve proposed to make the following revisions to the
FR Y-9C to parallel proposed changes to the Call Report. BHCs have
commented that changes should be made to the FR Y-9C in a manner
consistent with

[[Page 11475]]

changes to the Call Report to reduce reporting burden.
1. Troubled Debt Restructurings
The Federal Reserve proposed that BHCs report additional detail on
loans that have undergone troubled debt restructurings in Schedule HC-
C, Loans and Lease Financing Receivables, and Schedule HC-N, Past Due
and Nonaccrual Loans, Leases, and Other Assets. More specifically,
Schedule HC-C, Memorandum item 1.b, Other loans and all leases,
restructured and in compliance with modified terms, and Schedule HC-N,
Memorandum item 1.b, restructured, Other loans and all leases, included
in Schedule HC-N, would be broken out to provide information on
restructured troubled loans for many of the loan categories reported in
the bodies of Schedule HC-C and Schedule HC-N. The breakout would also
include Loans to individuals for household, family, and other personal
expenditures, whose terms have been modified in troubled debt
restructurings, which are currently excluded from the reporting of
troubled debt restructurings.
In the aggregate, troubled debt restructurings for all FR Y-9C
respondents have grown from $11.4 billion at year-end 2007 to $106.2
billion as of March 31, 2010. The proposed additional detail on
troubled debt restructurings in Schedules HC-C and HC-N would enable
the Federal Reserve to better understand the level of restructuring
activity at BHCs, the categories of loans involved in this activity,
and whether BHCs are working with their borrowers to modify and
restructure loans. In particular, to encourage banking organizations to
work constructively with their commercial borrowers, the banking
agencies recently \1\ issued guidance on commercial real estate loan
workouts and small business lending. While this guidance has explained
the agencies' expectations for prudent workouts, the Federal Reserve
and the industry would benefit from additional reliable data outside of
the examination process to assess restructuring activity at BHCs for
commercial real estate loans and commercial and industrial loans.
Further, it is important to separately identify commercial real estate
loan restructurings from commercial and industrial loan restructurings
given that the value of the real estate collateral is a consideration
in a BHC's decision to modify the terms of a commercial real estate
loan in a troubled debt restructuring, but such collateral protection
would normally be absent from commercial and industrial loans for which
a loan modification is being explored because of borrowers' financial
difficulties.
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\1\ Interagency Statement on Meeting the Credit Needs of
Creditworthy Small Business Borrowers, issued February 12, 2010, and
Policy Statement on Prudent Commercial Real Estate Loan Workouts,
issued October 30, 2009.
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It is also anticipated that other loan categories will experience
continued workout activity in the coming months given that most asset
classes have been adversely affected by the recent recession. This
effect is evidenced by the increase in past due and nonaccrual assets
across virtually all asset classes over the past two to three years.
Currently, BHCs report loans and leases restructured and in
compliance with their modified terms (Schedule HC-C, Memorandum item 1)
with separate disclosure of (a) loans secured by 1-4 family residential
properties (in domestic offices) and (b) other loans and all leases
(excluding loans to individuals for household, family, and other
personal expenditures). This same breakout is reflected in Schedule HC-
N, Memorandum item 1, for past due and nonaccrual restructured troubled
loans. The broad category of other loans in Schedule HC-C, Memorandum
item 1.b, and Schedule HC-N, Memorandum item 1.b, does not permit an
adequate analysis of troubled debt restructurings. In addition, the
disclosure requirements for troubled debt restructurings under
generally accepted accounting principles (GAAP) do not exempt
restructurings of loans to individuals for household, family, and other
personal expenditures. Therefore, if more detail were to be added to
match the reporting of loans in Schedule HC-C and Schedule HC-N, the
new data would provide the Federal Reserve with the level of
information necessary to assess BHCs' troubled debt restructurings to
the same extent that other loan quality and performance indicators can
be assessed. However, the Federal Reserve notes that, under GAAP,
troubled debt restructurings do not include changes in lease agreements
\2\ and therefore propose to exclude leases from Schedule HC-C,
Memorandum item 1, and from Schedule HC-N, Memorandum item 1, and
strike the phrase ``and all other leases'' from the caption of these
data items.
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\2\ Accounting Standards Codification paragraph 470-60-15-11.
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Thus, the proposed breakdowns of existing Memorandum item 1.b in
both Schedule HC-C and Schedule HC-N would create new Memorandum items
in both schedules covering troubled debt restructurings of 1-4 family
residential construction loans, Other construction loans and all land
development and other land loans, Loans secured by multifamily (5 or
more) residential properties, Loans secured by owner-occupied nonfarm
nonresidential properties, Loans secured by other nonfarm
nonresidential properties, Commercial and industrial loans, and All
other loans and all leases (including loans to individuals for
household, family, and other personal expenditures).\3\ If restructured
loans in any category of loans, as defined in Schedule HC-C, included
in restructured, All other loans, exceeds 10 percent of the amount of
restructured, All other loans, the amount of restructured loans in this
category or categories would be itemized and described.
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\3\ For BHCs with foreign offices, the Memorandum items for
restructured real estate loans would cover such loans in domestic
offices. In addition, BHCs would also provide a breakdown of
restructured commercial and industrial loans between U.S. and non-
U.S. addressees.
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Finally, Schedule HC-C, Memorandum item 1, and Schedule HC-N,
Memorandum item 1, are intended to capture data on loans that have
undergone troubled debt restructurings as that term is defined in GAAP.
However, the captions of these two Memorandum items include only the
term ``restructured'' rather than explicitly mentioning troubled debt
restructurings, which has led to questions about the scope of these
Memorandum items. Accordingly, the Federal Reserve proposed to revise
the captions so that they clearly indicate that the loans to be
reported in Schedule HC-C, Memorandum item 1, and Schedule HC-N,
Memorandum item 1, are troubled debt restructurings.
The banking agencies received comments from three bankers'
associations on the proposed additional detail in the Call Report on
loans that have undergone troubled debt restructurings, comparable to
the proposed changes to the FR Y-9C described above. Two of the
commenters recommended the banking agencies defer the proposed troubled
debt restructuring revisions, including the new breakdowns by loan
category, until the Financial Accounting Standards Board (FASB)
finalizes proposed clarifications to the accounting for troubled debt
restructurings by creditors.\4\ In addition, two of the bankers'
associations recommended retaining the term ``restructured'' in the
caption titles

[[Page 11476]]

instead of changing to the term ``troubled debt restructurings,''
stating that changing this term would result in the collection of only
a subset of total restructurings and would misrepresent banks' efforts
to work with their customers.
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\4\ FASB Proposed Accounting Standards Update (ASU): Receivables
(Topic 310), Clarifications to Accounting for Troubled Debt
Restructurings by Creditors.
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As noted above, BHCs currently report loans and leases restructured
and in compliance with their modified terms in Schedule HC-C,
Memorandum item 1, and report past due and nonaccrual restructured
loans in Schedule HC-N, Memorandum item 1. Although the captions for
these line items do not use the term ``troubled debt restructurings,''
the line item instructions generally characterize loans reported in
these items as troubled debt restructurings and direct the reader to
the Glossary entry for ``troubled debt restructurings'' for further
information. Furthermore, the Glossary entry states that ``all loans
that have undergone troubled debt restructurings and that are in
compliance with their modified terms must be reported as restructured
loans in Schedule HC-C, Memorandum item 1.'' Therefore, the Federal
Reserve's longstanding intent has been to collect information on
troubled debt restructurings in these line items, and these items were
not designed to include loan modifications and restructurings that do
not constitute troubled debt restructurings (e.g., where a BHC grants a
concession to a borrower who is not experiencing financial
difficulties).
The accounting standards for troubled debt restructurings are set
forth in Accounting Standards Codification (ASC) Subtopic 310-40,
Receivables--Troubled Debt Restructurings by Creditors (formerly FASB
Statement No. 15, ``Accounting by Debtors and Creditors for Troubled
Debt Restructurings,'' as amended by FASB Statement No. 114,
``Accounting by Creditors for Impairment of a Loan''). This is the
accounting basis for the current reporting of restructured troubled
loans in existing Schedule HC-C, Memorandum item 1, and Schedule HC-N,
Memorandum item 1. The proposed breakdown of the total amount of
restructured ``other loans'' in existing Memorandum item 1.b in both
schedules would result in additional detail on loans already within the
scope of ASC Subtopic 310-40. To the extent the clarifications
emanating from the FASB proposed accounting standards update may result
in BHCs having to report certain loans as troubled debt restructurings
that had not previously been identified as such, this accounting
outcome will arise irrespective of the proposed breakdown of the
``other loans'' category in Schedule HC-C, Memorandum item 1, and
Schedule HC-N, Memorandum item 1. Therefore, the Federal Reserve will
implement the new breakdown for the reporting of troubled debt
restructurings as proposed.
2. Auto Loans
The Federal Reserve proposed to add a breakdown of the other
consumer loans \5\ or all other loans loan categories contained in
several schedules in order to separately collect information on auto
loans. The affected schedules would be Schedule HC-C, Loans and Lease
Financing Receivables; Schedule HC-D, Trading Assets and Liabilities;
Schedule HC-K, Quarterly Averages; Schedule HC-N, Past Due and
Nonaccrual Loans, Leases, and Other Assets; Schedule HI, Income
Statement; and Schedule HI-B, Part I, Charge-offs and Recoveries on
Loans and Leases. Auto loans would include loans arising from retail
sales of passenger cars and other vehicles such as minivans, vans,
sport-utility vehicles, pickup trucks, and similar light trucks for
personal use. This new loan category would exclude loans to finance
fleet sales, personal cash loans secured by automobiles already paid
for, loans to finance the purchase of commercial vehicles and farm
equipment, and lease financing.
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\5\ As described later in this notice, the other consumer loans
loan category was proposed to be added to Schedule HC-K beginning
March 31, 2011.
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Automobile loans are a significant consumer business for many large
BHCs. Because of the limited disclosure of auto lending on existing
regulatory reports, supervisory oversight of auto lending is presently
diminished by the need to rely on the examination process and public
information sources that provide overall market information but not
data on idiosyncratic risks.
Roughly 65 percent of new vehicle sales and 40 percent of used
vehicle sales are funded with auto loans. According to household
surveys and data on loan originations, commercial banks are an
important source of auto loans. In 2008, this sector originated
approximately one-third of all auto loans. Finance companies, both
independent and those affiliated with auto manufacturers, originated a
bit more than one-third, while credit unions originated a bit less than
one-quarter. In addition to originating auto loans, some banks purchase
auto loans originated by other entities, which suggests that commercial
banks could be the largest holder of auto loans.
Despite the importance of BHCs to the auto loan market, the Federal
Reserve knows less about BHCs' holdings of auto loans than is known
about finance company, credit union, and savings association holdings
of these loans. All nonbank depository institutions are required to
report auto loans on their respective regulatory reports, including
savings associations, which originate less than 5 percent of auto
loans. On their regulatory reports, credit unions must provide not only
the outstanding amount of new and used auto loans, but also the average
interest rate and the number of loans. In a monthly survey, the Federal
Reserve collects information on the amount of auto loans held by
finance companies. As a consequence, during the financial crisis when
funds were scarce for finance companies in general and the finance
companies affiliated with automakers in particular, a lack of data on
auto loans at banks hindered the Federal Reserve's ability to estimate
the extent to which BHCs were filling in the gap in auto lending left
by the finance companies.
Additional disclosure regarding consolidated auto loans on the FR
Y-9C is especially important with the implementation of the amendments
to FASBASC Topics 860, Transfers and Servicing, and 810,
Consolidations, resulting from ASU No. 2009-16,\6\ and ASU No. 2009-
17,\7\ respectively. Until 2010, Schedule HC-S, Servicing,
Securitization, and Asset Sale Activities, had provided the best
supervisory information on auto lending because it included a separate
breakout of securitized auto loans outstanding as well as securitized
auto loan delinquencies and charge-offs. The accounting changes brought
about by the amendments to ASC Topics 860 and 810, however, mean that
if the auto loan securitization vehicle is now required to be
consolidated, securitized auto lending previously reported on Schedule
HC-S will be grouped as part of other consumer loans or all other loans
on Schedules HC-C, HC-K, HC-N, HI, and HI-B, Part I, which diminishes
supervisors' ability to assess auto loan exposures and performance.
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\6\ Formerly Statement of Financial Accounting Standards (SFAS)
No. 166, Accounting for Transfers of Financial Assets (FAS 166).
\7\ Formerly SFAS No. 167, Amendments to FASB Interpretation No.
46(R) (FAS 167).
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Finally, separating auto lending from other consumer loans will
assist the Federal Reserve in understanding consumer lending activities
at individual institutions. When an institution holds both auto loans
and other types of consumer loans (other than credit cards, which are
currently reported separately), the current

[[Page 11477]]

combined reporting of these loans in the FR Y-9C tends to mask any
significant differences that may exist in the performance of these
portfolios. For example, a BHC could have a sizeable auto loan
portfolio with low loan losses, but its other consumer lending, which
could consist primarily of unsecured loans, could exhibit very high
loss rates. The current blending of these divergent portfolios into a
single loan category makes it difficult to adequately monitor consumer
loan performance.
The banking agencies received three comments from banks and one
comment from a bankers' association on the proposal to separately
collect information on automobile loans in the Call Report schedules
containing loan category data, comparable to the proposed changes to
the FR Y-9C described above. The three banks requested an exemption
from the proposed reporting requirements for smaller banks, with one of
the banks seeking the exemption only for reporting auto loan interest
income and quarterly averages. The bankers' association stated that
this revision should not create a significant burden for future loans
because core data processors generally have the ability to break out
loan types, but it also asked for clarification on the reporting for
situations in which auto loans are extended for multiple purposes. In
addition, the bankers' association observed that some community banks
do not have data readily available on the types or purposes of existing
consumer loans, which would prevent them from determining the purpose
of loans collateralized by autos, i.e., for the purchase of the auto or
for some other purpose, without searching paper loan files.
After considering these comments, the Federal Reserve continues to
believe the reporting of information on auto loans from all respondent
BHCs is necessary for the Federal Reserve to carry out its supervisory
and regulatory responsibilities and meet other public policy purposes.
However, the Federal Reserve agrees that the reporting of interest
income and quarterly averages for auto loans may be particularly
burdensome for BHCs to report. Therefore, the Federal Reserve will not
implement the proposed collection of auto loan data on Schedule HI,
Income Statement, or Schedule HC-K, Quarterly Averages, in 2011.
Instead, the Federal Reserve will evaluate the auto loan data that will
begin to be collected in the other FR Y-9C schedules in March 2011 and
reconsider whether to collect data on interest income and quarterly
averages for auto loans. A decision to propose to collect auto loan
interest income and quarterly averages would be subject to notice and
comment.
Regarding the request for clarification of the reporting treatment
for auto loans extended for multiple purposes and existing consumer
loans with autos as collateral, the Federal Reserve has concluded that,
to reduce burden, all consumer loans originated or purchased before
April 1, 2011, that are collateralized by automobiles, regardless of
the purpose of the loan, should be classified as auto loans and
included in the new FR Y-9C items for auto loans. For consumer loans
originated or purchased on or after April 1, 2011, BHCs should exclude
from auto loans any personal cash loans secured by automobiles already
paid for and consumer loans where some of the proceeds are used to
purchase an auto and the remainder of the proceeds are used for other
purposes.
3. Variable Interest Entities
In June 2009, the FASB issued accounting standards that have
changed the way entities account for securitizations and special
purpose entities (SPE). ASU No. 2009-16 (formerly FAS 166) revised ASC
Topic 860, Transfers and Servicing, by eliminating the concept of a
qualifying special-purpose entity (QSPE) and changing the requirements
for derecognizing financial assets. ASU No. 2009-17 (formerly FAS 167)
revised ASC Topic 810, Consolidations, by changing how a banking
organization or other company determines when an entity that is
insufficiently capitalized or is not controlled through voting or
similar rights, for example a Variable Interest Entity (VIE), should be
consolidated. For most banking organizations, ASU Nos. 2009-16 and
2009-17 took effect January 1, 2010.
Under ASC Topic 810, as amended, determining whether a BHC is
required to consolidate a VIE depends on a qualitative analysis of
whether that BHC has a ``controlling financial interest'' in the VIE
and is therefore the primary beneficiary of the VIE. The analysis
focuses on the BHC's power over and interest in the VIE. With the
removal of the QSPE concept from GAAP that was brought about in amended
ASC Topic 860, a BHC that transferred financial assets to an SPE that
met the definition of a QSPE before the effective date of these amended
accounting standards was required to evaluate whether, pursuant to
amended ASC Topic 810, it must begin to consolidate the assets,
liabilities, and equity of the SPE as of that effective date. Thus,
when implementing amended ASC Topics 860 and 810 at the beginning of
2010, BHCs began to consolidate certain previously off-balance-sheet
securitization vehicles, asset-backed commercial paper conduits, and
other structures. Going forward, BHCs with variable interests in new
VIEs must evaluate whether they have a controlling financial interest
in these entities and, if so, consolidate them. In addition, BHCs must
continually reassess whether they are the primary beneficiary of VIEs
in which they have variable interests.
For those VIEs that banks must consolidate, the Federal Reserve's
FR Y-9C instructional guidance advises institutions to report the
assets and liabilities of these VIEs on the balance sheet (Schedule HC)
in the category appropriate to the asset or liability. However, ASC
paragraph 810-10-45-25 \8\ requires a reporting entity to present
``separately on the face of the statement of financial position: a.
Assets of a consolidated VIE that can be used only to settle
obligations of the consolidated VIE [and] b. Liabilities of a
consolidated VIE for which creditors (or beneficial interest holders)
do not have recourse to the general credit of the primary
beneficiary.'' This requirement has been interpreted to mean that
``each line item of the consolidated balance sheet should differentiate
which portion of those amounts meet the separate presentation
conditions.'' \9\ In requiring separate presentation for these assets
and liabilities, the FASB agreed with commenters on its proposed
accounting standard on consolidation that ``separate presentation * * *
would provide transparent and useful information about an enterprise's
involvement and associated risks in a variable interest entity.'' \10\
The Federal Reserve concurs that separate presentation would provide
similar benefits to them and other FR Y-9C users, particularly since
data on securitized assets that are reconsolidated is no longer
reported on Schedule HC-S, Servicing, Securitization, and Asset Sale
Activities.
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\8\ Formerly paragraph 22A of FIN 46(R), as amended by FAS 167.
\9\ Deloitte & Touche LLP, ``Back on-balance sheet: Observations
from the adoption of FAS 167,'' May 2010, page 4 (http://www.deloitte.com/view/en_US/us/Services/audit-enterprise-risk-services/Financial-Accounting-Reporting/f3a70ca28d9f8210VgnVCM200000bb42f00aRCRD.htm).
\10\ See paragraphs A80 and A81 of FAS 167.
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Consistent with the presentation requirements discussed above, the
Federal Reserve proposed to add a new Schedule HC-V, Variable Interest
Entities, to the FR Y-9C in which BHCs would report a breakdown of the
assets of consolidated VIEs that can be used

[[Page 11478]]

only to settle obligations of the consolidated VIEs and liabilities of
consolidated VIEs for which creditors do not have recourse to the
general credit of the reporting BHC. The following proposed categories
for these assets and liabilities would include some of the same
categories presented on the balance sheet (Schedule HC): (1) Cash and
balances due from depository institutions, (2) Held-to-maturity
securities, (3) Available-for-sale securities, (4) Securities purchased
under agreements to resell, (5) Loans and leases held for sale, (6)
Loans and leases, net of unearned income, (7) Less: Allowance for loan
and lease losses, (8) Trading assets (other than derivatives), (9)
Derivative assets, (10) Other real estate owned, (11) Other assets,
(12) Securities sold under agreements to repurchase, (13) Derivative
liabilities, (14) Other borrowed money (other than commercial paper),
(15) Commercial paper, and (16) Other liabilities. These assets and
liabilities would be presented separately for securitization trusts,
asset-backed commercial paper conduits, and other VIEs.
In addition, the Federal Reserve proposed to include two separate
data items in new Schedule HC-V in which BHCs would report the total
amounts of all other assets and all other liabilities of consolidated
VIEs (i.e., all assets of consolidated VIEs that are not dedicated
solely to settling obligations of the VIE and all liabilities of
consolidated VIEs for which creditors have recourse to the general
credit of the reporting BHC). The collection of this information would
help the Federal Reserve understand the total magnitude of consolidated
VIEs. These assets and liabilities would also be reported separately
for securitization trusts, asset-backed commercial paper conduits, and
other VIEs. The asset and liability information collected in Schedule
HC-V would represent amounts included in the reporting BHC's
consolidated assets and liabilities reported on Schedule HC, Balance
Sheet, i.e., after eliminating intercompany transactions.
The banking agencies received one comment from a bankers'
association that addressed proposed Call Report Schedule RC-V, which is
comparable to proposed FR Y-9C Schedule HC-V. The bankers' association
recommended a delayed effective date to allow sufficient time for
systems modifications.
Because the FR Y-9C balance sheet is completed on a consolidated
basis, the VIE amounts that BHCs would report in new Schedule HC-V are
amounts that, through the consolidation process, already must be
reported in the appropriate balance sheet asset and liability
categories. These balance sheet categories, by and large, have been
carried over into Schedule HC-V. Schedule HC-V distinguishes between
assets of consolidated VIEs that can be used only to settle obligations
of the consolidated VIEs and assets not meeting this condition as well
as liabilities of consolidated VIEs for which creditors do not have
recourse to the general credit of the reporting BHC and liabilities not
meeting this condition. This distinction is based on existing
disclosure requirements applicable to financial statements prepared in
accordance with U.S. GAAP, to which the BHCs likely to have material
amounts of consolidated VIE assets and liabilities to report have been
subject for one year. Thus, these BHCs should have a process in place,
even if manual, for segregating VIE assets and liabilities based on
this distinction.
The Federal Reserve recognizes that the proposed separate reporting
of consolidated VIE assets and liabilities by the type of VIE activity,
i.e., securitization vehicles, asset-backed commercial paper conduits,
and other VIEs, goes beyond the disclosure requirements in U.S. GAAP.
Otherwise, the proposed data requirements for Schedule HC-V have been
based purposely on the GAAP framework. Thus, the Federal Reserve has
concluded that it is appropriate to proceed with the addition of new
Schedule HC-V in March 2011, as proposed. BHCs are reminded that, as
mentioned above, they may provide reasonable estimates in their March
31, 2011, FR Y-9C report for any new or revised item initially required
to be reported as of that date for which the requested information is
not readily available.
4. Life Insurance Assets
BHCs purchase and hold bank-owned life insurance (BOLI) policies as
assets, the premiums for which may be used to acquire general account
or separate account life insurance policies. BHCs currently report the
aggregate amount of their life insurance assets in data item 5 of
Schedule HC-F, Other Assets, without regard to the type of policies
they hold.
Many BHCs have BOLI assets, and the distinction between those life
insurance policies that represent general account products and those
that represent separate account products has meaning with respect to
the degree of credit risk involved as well as performance measures for
the life insurance assets in a volatile market environment. In a
general account policy, the general assets of the insurance company
issuing the policy support the policy's cash surrender value. In a
separate account policy, the policy's cash surrender value is supported
by assets segregated from the general assets of the insurance carrier.
Under such an arrangement, the policyholder neither owns the underlying
separate account created by the insurance carrier on its behalf nor
controls investment decisions in the account. Nevertheless, the
policyholder assumes all investment and price risk.
A number of BHCs holding separate account life insurance policies
have recorded significant losses in recent years due to the volatility
in the markets and the vulnerability to market fluctuations of the
instruments that are investment options in separate account life
insurance policies. Information distinguishing between the cash
surrender values of general account and separate account life insurance
policies would allow the Federal Reserve to track BHCs' holdings of
both types of life insurance policies with their differing risk
characteristics and changes in their carrying amounts resulting from
their performance over time. Accordingly, the Federal Reserve proposed
to split data item 5 of Schedule HC-F into two data items: Data item
5.a, General account life insurance assets, and data item 5.b, Separate
account life insurance assets.
The banking agencies received comments from two insurance
consultants and an insurance company supporting the proposed revision
to provide a breakdown of life insurance assets by type of policy on
the Call Report, comparable to the proposed changes to the FR Y-9C
described above. However, all three commenters noted that the evolution
of life insurance products in recent years has led to a third type of
policy becoming more prevalent in the banking industry: Hybrid
accounts. Such accounts combine features of general and separate
account products by providing the additional asset protection offered
by separate accounts while also providing a guaranteed minimum
interest-crediting rate, which is common to general accounts. They
recommended that the proposal be revised from a two-way to a three-way
breakdown of life insurance assets or, although not the preferable
approach, advise banking institutions with hybrid account life
insurance assets to report them together with general account life
insurance assets because they have more general account
characteristics.
Because of the Federal Reserve's interest in being better able to
understand the risk characteristics of

[[Page 11479]]

BHCs' holdings of life insurance assets, the Federal Reserve will
implement the three-way breakdown of these assets consistent with the
commenters' recommendation.
5. Instructional Revisions
A. Reporting of 1-4 Family Residential Mortgages Held for Trading
in Schedule HC-P
The Federal Reserve began collecting information in Schedule HC-P,
1-4 Family Residential Mortgage Banking Activities in Domestic Offices,
in September 2006. At that time, the instructions for Schedule HC-C,
Loans and Lease Financing Receivables, were written to indicate that
loans generally could not be classified as held for trading. Therefore,
all 1-4 family residential mortgage loans designated as held for sale
were reportable in Schedule HC-P. In March 2008, the Federal Reserve
provided instructional guidance establishing conditions under which
BHCs were permitted to classify certain assets (e.g., loans) as trading
and specified that loans classified as trading assets should be
excluded from Schedule HC-C, Loans and Lease Financing Receivables, and
reported instead in Schedule HC-D, Trading Assets and Liabilities (if
the reporting threshold for this schedule were met). However, the
Federal Reserve neglected to address the reporting treatment on
Schedule HC-P of 1-4 family residential loans that met the conditions
for classification as trading assets. Therefore, the Federal Reserve
proposed to correct this by providing explicit instructional guidance
that all 1-4 family residential mortgage banking activities, whether
held for sale or trading purposes, are reportable on Schedule HC-P.
The banking agencies received one comment from a bankers'
association on the proposed guidance on the reporting of 1-4 family
residential mortgages held for trading in Call Report Schedule RC-P,
comparable to the proposed guidance to the FR Y-9C described above. The
commenter supported the proposed clarification and requested further
clarification on the reporting of repurchases and indemnifications in
this schedule. The commenter suggested separate reporting of loan
repurchases from indemnifications for all subitems of Call Report
Schedule RC-P, item 6, ``Repurchases and indemnifications of 1-4 family
residential mortgage loans during the quarter.''
In December 2010, the Federal Reserve clarified the FR Y-9C
reporting instructions for Schedule HC-P, item 6, to explain which
repurchases of 1-4 family residential mortgage loans are reportable in
this item. Specifically, instructional guidance was provided stating
that BHCs should exclude 1-4 family residential mortgage loans that
have been repurchased solely at the discretion of the BHC from item 6.
The Federal Reserve does not believe there is a supervisory need to
separate the reporting of loan repurchases from indemnifications in
Schedule HC-P, item 6.
B. Maturity and Repricing Data for Assets and Liabilities at
Contractual Ceilings and Floors
BHCs report maturity and repricing data for debt securities (not
held for trading) in Schedule HC-B, Securities. The Federal Reserve
uses these data to assess, at a broad level, a BHC's exposure to
interest rate risk. The instructions for reporting the maturity and
repricing data currently require that when the interest rate on a
floating rate instrument has reached a contractual floor or ceiling
level, which is a form of embedded option, the instrument is to be
treated as ``fixed rate'' rather than ``floating rate'' until the rate
is again free to float. As a result, a floating rate instrument whose
interest rate has fallen to its floor or risen to its ceiling is
reported based on the time remaining until its contractual maturity
date rather than the time remaining until the next interest rate
adjustment date (or the contractual maturity date, if earlier). This
reporting treatment is designed to capture the potential effect of the
embedded option under particular interest rate scenarios.
The American Bankers Association (ABA) requested that the Federal
Reserve reconsider the reporting treatment for floating rate
instruments with contractual floors and ceilings. More specifically,
the ABA recommended revising the reporting instructions so that
floating rate instruments would always be reported based on the time
remaining until the next interest rate adjustment date without regard
to whether the rate on the instrument has reached a contractual floor
or ceiling.
The Federal Reserve concluded that an instructional revision was
warranted, but the extent of the revision should be narrower than
recommended by the ABA. The Federal Reserve concluded that when a
floating rate instrument is at its contractual floor or ceiling and the
embedded option has intrinsic value to the BHC, the floor or ceiling
should be ignored and the instrument should be treated as a floating
rate instrument. However, if the embedded option has intrinsic value to
the BHC's counterparty, the contractual floor or ceiling should
continue to be taken into account and the instrument should be treated
as a fixed rate instrument. For example, when the interest rate on a
floating rate loan reaches its contractual ceiling, the embedded option
represented by the ceiling has intrinsic value to the borrower and is a
detriment to the BHC because the loan's yield to the BHC is lower than
what it would have been without the ceiling. When the interest rate on
a floating rate loan reaches its contractual floor, the embedded option
represented by the floor has intrinsic value to the BHC and is a
benefit to the BHC because the loan's yield to the BHC is higher than
what it would have been without the floor.
Accordingly, the Federal Reserve proposed to revise the
instructions for reporting maturity and repricing data in Schedule HC-
B. As proposed, the instructions would indicate that a floating rate
asset that has reached its contractual ceiling and a floating rate
liability that has reached its contractual floor would be treated as a
fixed rate instrument and reported based on the time remaining until
its contractual maturity date. In contrast, the instructions would
state that a floating rate asset that has reached its contractual floor
and a floating rate liability that has reached its contractual ceiling
would be treated as a floating rate instrument and reported based on
the time remaining until the next interest rate adjustment date (or the
contractual maturity date, if earlier).
The banking agencies received comments from two bankers'
associations on this proposed instructional change. One bankers'
association recommended the banking agencies adopt their proposed
approach only for floating rate loans reported in Schedule RC-C, part
I. This bankers' association opposed extending the same proposed
approach to the other three Call Report schedules in which repricing
data are reported for certain other floating rate instruments because
its ``members believe that not enough research has been completed'' to
understand the effect of the proposed instructional change on how these
other instruments would be reported. The other bankers' association
recommended against proceeding with the proposed instructional change
because of the implementation burden associated with the multiple
systems that would need to be revised. This association also observed
that the revised information for floating rate instruments at
contractual ceilings and floors would be commingled with the maturity
and repricing information for

[[Page 11480]]

all of the other instruments in the same asset or liability category.
After considering the comments received, the banking agencies have
decided not to change the instructions for reporting repricing
information for floating rate instruments at contractual ceilings and
floors. Such floating rate instruments should continue to be reported
in accordance with the longstanding requirement that the instruments be
treated as ``fixed rate'' rather than ``floating rate'' until their
rate is again free to float. To maintain consistency between the Call
Report and FR Y-9C reporting instructions, the Federal Reserve will
retain the current instructions for reporting maturity and repricing
information on FR Y-9C Schedule HC-B.

Revisions--FR Y-9LP

The Federal Reserve proposed to make the following revision to the
FR Y-9LP effective as of March 31, 2011.

Troubled Debt Restructurings

To be consistent with revisions proposed for the FR Y-9C, the
Federal Reserve proposed to modify the instructions for Schedule PC-B--
Memoranda item 8, Loans and leases of the parent restructured in
compliance with modified terms, to clearly indicate that the loans to
be reported in this data item should be troubled debt restructurings
and to exclude leases. Also the phrase ``and leases'' would be stricken
from the caption of this data item. Under GAAP, troubled debt
restructurings do not include changes in lease agreements. Also
consistent with the proposed change to the FR Y-9C, the Federal Reserve
proposed to revise the instructions for this data item to include
(currently excluded) loans to individuals for household, family, and
other personal expenditures and all loans secured by 1-4 family
residential properties whose terms have been modified in troubled debt
restructurings.
Like their comments to proposed revisions to the FR Y-9C, two
bankers' associations commented that the Federal Reserve should defer
proposed FR Y-9LP instructional modifications until the FASB finalizes
proposed clarifications to the accounting for troubled debt
restructurings by creditors. As discussed above, ASC Subtopic 310-40
provides the accounting basis for the current reporting of restructured
troubled loan information on the FR Y-9LP. To the extent the
clarifications emanating from the FASB proposed accounting standards
update may result in BHCs having to report certain loans as troubled
debt restructurings that had not previously been identified as such,
this accounting outcome will arise irrespective of the proposed
instructional modifications to the FR Y-9LP. Therefore, the Federal
Reserve will implement the instructional modifications for the
reporting of troubled debt restructurings as proposed.
2. Report title: Financial Statements of U.S. Nonbank Subsidiaries
of U.S. Bank Holding Companies.
Agency form number: FR Y-11.
OMB control number: 7100-0244.
Effective Date: March 31, 2011.
Frequency: Quarterly and annually.
Reporters: Bank holding companies.
Annual reporting hours: FR Y-11 (quarterly): 15,966; FR Y-11
(annual): 2,768.
Estimated average hours per response: FR Y-11 (quarterly): 6.80; FR
Y-11 (annual): 6.80.
Number of respondents: FR Y-11 (quarterly): 587; FR Y-11 (annual):
407.
General description of report: This information collection is
mandatory (12 U.S.C. 1844(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, pursuant to sections
(b)(4), (b)(6) and (b)(8) of the Freedom of Information Act [5 U.S.C.
522(b)(4), (b)(6) and (b)(8)].
Abstract: The FR Y-11 reports collect financial information for
individual non-functionally regulated U.S. nonbank subsidiaries of
domestic BHCs. BHCs file the FR Y-11 on a quarterly or annual basis
according to filing criteria. The FR Y-11 data are used with other BHC
data to assess the condition of BHCs that are heavily engaged in
nonbanking activities and to monitor the volume, nature, and condition
of their nonbanking operations.
Current Actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, with revision, of the Financial
Statements of U.S. Nonbank Subsidiaries of U.S. Bank Holding Companies.
The comment period expired on January 3, 2011. The Federal Reserve
received one comment from a bankers' association recommending that the
FR Y-11 and the FR 2314 be combined into a single form to enable the
use of vendor software and electronic submission. The commenter stated
that such functionalities are available on the FR Y-11 but are not
available on the FR 2314.
The Federal Reserve has offered BHCs the option of submitting their
FR 2314 reports electronically for several years. Any BHC interested in
submitting their reports electronically should contact their Reserve
Bank concerning procedures for electronic submission. Therefore, the
Federal Reserve will not merge the reporting forms. As no comments were
received on the proposed changes, the Federal Reserve will implement
the changes as initially proposed.
3. Report title: Financial Statements of Foreign Subsidiaries of
U.S. Banking Organizations.
Agency form number: FR 2314.
OMB control number: 7100-0073.
Effective Date: March 31, 2011.
Frequency: Quarterly and annually.
Reporters: Foreign subsidiaries of U.S. state member banks, BHCs,
and Edge or agreement corporations.
Annual reporting hours: FR 2314 (quarterly): 16,394; FR 2314
(annual): 3,379.
Estimated average hours per response: FR 2314 (quarterly): 6.60; FR
2314 (annual): 6.60.
Number of respondents: FR 2314 (quarterly): 621; FR 2314 (annual):
512.
General description of report: This information collection is
mandatory (12 U.S.C. 324, 602, 625, and 1844(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,
pursuant to sections (b)(4), (b)(6) and (b)(8) of the Freedom of
Information Act [5 U.S.C. 522(b)(4), (b)(6) and (b)(8)].
Abstract: The FR 2314 reports collect financial information for
non-functionally regulated direct or indirect foreign subsidiaries of
U.S. state member banks (SMBs), Edge and agreement corporations, and
BHCs. Parent organizations (SMBs, Edge and agreement corporations, or
BHCs) file the FR 2314 on a quarterly or annual basis according to
filing criteria. The FR 2314 data are used to identify current and
potential problems at the foreign subsidiaries of U.S. parent
companies, to monitor the activities of U.S. banking organizations in
specific countries, and to develop a better understanding of activities
within the industry, in general, and of individual institutions, in
particular.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, with revision, of the Financial
Statements of Foreign Subsidiaries of U.S. Banking Organizations. The
comment period expired on January 3, 2011. The Federal

[[Page 11481]]

Reserve received one comment from a bankers' association recommending
that the FR Y-11 and the FR 2314 be combined into a single form to
enable the use of vendor software and electronic submission. The
commenter stated that such functionalities are available on the FR Y-11
but are not available on the FR 2314.
The Federal Reserve has offered BHCs the option of submitting their
FR 2314 reports electronically for several years. Any BHC interested in
submitting their reports electronically should contact their Reserve
Bank concerning procedures for electronic submission. Therefore, the
Federal Reserve will not merge the reporting forms. As no comments were
received on the proposed changes, the Federal Reserve will implement
the changes as initially proposed.
4. Report title: Financial Statements of U.S. Nonbank Subsidiaries
Held by Foreign Banking Organizations.
Agency form number FR Y-7N.
OMB control number: 7100-0125.
Effective Date: March 31, 2011.
Frequency: Quarterly and annually.
Reporters: Foreign banking organizations.
Annual reporting hours: FR Y-7N (quarterly): 4,978; FR Y-7N
(annual): 1,299.
Estimated average hours per response: FR Y-7N (quarterly): 6.80; FR
Y-7N (annual): 6.80.
Number of respondents: FR Y-7N (quarterly): 183; FR Y-7N (annual):
191.
General description of report: This information collection is
mandatory (12 U.S.C. 1844(c), 3106(c), and 3108). Confidential
treatment is not routinely given to the data in these reports. However,
confidential treatment for information, in whole or in part, on any of
the reporting forms can be requested in accordance with the
instructions to the form, pursuant to sections (b)(4) and (b)(6) of the
Freedom of Information Act [5 U.S.C. 522(b)(4) and (b)(6)].
Abstract: The FR Y-7N collects financial information for non-
functionally regulated U.S. nonbank subsidiaries held by foreign
banking organizations (FBOs) other than through a U.S. BHC, U.S.
financial holding company (FHC) or U.S. bank. FBOs file the FR Y-7N on
a quarterly or annual basis.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, with revision, of the Financial
Statements of U.S. Nonbank Subsidiaries Held by Foreign Banking
Organizations. The comment period expired on January 3, 2011. As no
comments were received on the proposed changes, the Federal Reserve
will implement the changes as initially proposed.
5. Report title: Consolidated Report of Condition and Income for
Edge and Agreement Corporations.
Agency form number: FR 2886b.
OMB control number: 7100-0086.
Effective Date: March 31, 2011.
Frequency: Quarterly.
Reporters: Edge and agreement corporations.
Annual reporting hours: 1,679.
Estimated average hours per response: 15.15 banking corporations,
9.60 investment corporations.
Number of respondents: 13 banking corporations, 42 investment
corporations.
General description of report: This information collection is
mandatory (12 U.S.C. 602 and 625). Schedules RC-M (with the exception
of item 3) and RC-V are held as confidential pursuant to section (b)(4)
of the Freedom of Information Act (5 U.S.C. 552(b)(4)).
Abstract: The mandatory FR 2886b comprises a balance sheet, income
statement, two schedules reconciling changes in capital and reserve
accounts, and 11 supporting schedules and it parallels the Call Report
that commercial banks file. The Federal Reserve uses the data collected
on the FR 2886b to supervise Edge corporations, identify present and
potential problems, and monitor and develop a better understanding of
activities within the industry.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, with revision, of the
Consolidated Report of Condition and Income for Edge and Agreement
Corporations. The comment period expired on January 3, 2011. As no
comments were received on the proposed changes, the Federal Reserve
will implement the changes as initially proposed.
Final approval under OMB delegated authority of the extension for
three years, without revision of the following reports:
1. Report title: Financial Statements for Bank Holding Companies.
Agency form number: FR Y-9SP, FR Y-9ES, and FR Y-9CS.
OMB control number: 7100-0128.
Frequency: Quarterly and annually.
Reporters: Bank holding companies.
Annual reporting hours: FR Y-9SP: 45,209; FR Y-9ES: 44; FR Y-9CS:
400.
Estimated average hours per response: FR Y-9SP: 5.40; FR Y-9ES: 30
minutes; FR Y-9CS: 30 minutes.
Number of respondents: FR Y-9SP: 4,186; FR Y-9ES: 87; FR Y-9CS:
200.
General description of report: This information collection is
mandatory (12 U.S.C. 1844(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, pursuant to sections
(b)(4) and (b)(6) of the Freedom of Information Act (5 U.S.C.
522(b)(4), (b)(6)).
Abstract: The FR Y-9SP is a parent company only financial statement
filed by smaller BHCs. Respondents include BHCs with total consolidated
assets of less than $500 million. This form is a simplified or
abbreviated version of the more extensive parent company only financial
statement for large BHCs (FR Y-9LP). This report is designed to obtain
basic balance sheet and income information for the parent company,
information on intangible assets, and information on intercompany
transactions.
The FR Y-9ES collects financial information from ESOPs that are
also BHCs on their benefit plan activities. It consists of four
schedules: Statement of Changes in Net Assets Available for Benefits,
Statement of Net Assets Available for Benefits, Memoranda, and Notes to
the Financial Statements. The FR Y-9CS is a supplemental report that
may be utilized to collect additional information deemed to be critical
and needed in an expedited manner from BHCs. The information is used to
assess and monitor emerging issues related to BHCs. It is intended to
supplement the FR Y-9 reports, which are used to monitor BHCs between
on-site inspections. The data items of information included on the
supplement may change as needed.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, without revision, of the
Financial Statements for Bank Holding Companies. The comment period
expired on January 3, 2011. The Federal Reserve did not receive any
comment letters.
2. Report title: Abbreviated Financial Statements of U.S. Nonbank
Subsidiaries of U.S. Bank Holding Companies.
Agency form number: FR Y-11S.
OMB control number: 7100-0244.
Frequency: Annually.
Reporters: Bank holding companies.
Annual reporting hours: 774.
Estimated average hours per response: 1.0.
Number of respondents: 774.

[[Page 11482]]

General description of report: This information collection is
mandatory (12 U.S.C. 1844(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, pursuant to sections
(b)(4), (b)(6), and (b)(8) of the Freedom of Information Act [5 U.S.C.
522(b)(4)].
Abstract: The FR Y-11S is an abbreviated reporting form that
collects four data items: Net income, total assets, equity capital, and
total off-balance-sheet data items. The FR Y-11S is filed annually, as
of December 31, by top-tier BHCs for each individual nonbank subsidiary
(that does not meet the criteria for filing the detailed report) with
total assets of at least $50 million, but less than $250 million, or
with total assets greater than 1 percent of the total consolidated
assets of the top-tier organization.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, without revision, of the
Abbreviated Financial Statements of U.S. Nonbank Subsidiaries of U.S.
Bank Holding Companies. The comment period expired on January 3, 2011.
The Federal Reserve did not receive any comment letters.
3. Report title: Abbreviated Financial Statements of Foreign
Subsidiaries of U.S. Banking Organizations.
Agency form number: FR 2314S.
OMB control number: 7100-0073.
Frequency: Annually.
Reporters: U.S. state member banks, BHCs, and Edge or agreement
corporations.
Annual reporting hours: 787.
Estimated average hours per response: 1.0.
Number of respondents: 787.
General description of report: This information collection is
mandatory (12 U.S.C. 324, 602, 625, and 1844(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,
pursuant to sections (b)(4), (b)(6) and (b)(8) of the Freedom of
Information Act [5 U.S.C. 522(b)(4), (b)(6) and (b)(8)].
Abstract: The FR 2314S is an abbreviated reporting form that
collects four data items: Net income, total assets, equity capital, and
total off-balance-sheet data items. The FR 2314S is filed annually, as
of December 31, for each individual subsidiary (that does not meet the
criteria for filing the detailed report) with assets of at least $50
million but less than $250 million, or with total assets greater than 1
percent of the total consolidated assets of the top-tier organization.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, without revision, of the
Abbreviated Financial Statements of Foreign Subsidiaries of U.S.
Banking Organizations. The comment period expired on January 3, 2011.
The Federal Reserve did not receive any comment letters.
4. Report title: Financial Reports of Foreign Banking
Organizations.
Agency form number: FR Y-7NS, FR Y-7Q.
OMB control number: 7100-0125.
Frequency: Annually and quarterly.
Reporters: Foreign banking organizations.
Annual reporting hours: FR Y-7NS: 237; FR Y-7Q (quarterly): 340; FR
Y-7Q (annual): 111.
Estimated average hours per response: FR Y-7NS: 1.0; FR Y-7Q
(quarterly): 1.25; FR Y-7Q (annual): 1.0.
Number of respondents: FR Y-7NS: 237; FR Y-7Q (quarterly): 68; FR
Y-7Q (annual): 111.
General description of report: This information collection is
mandatory (12 U.S.C. 1844(c), 3106(c), and 3108). Confidential
treatment is not routinely given to the data in these reports. However,
confidential treatment for information, in whole or in part, on any of
the reporting forms can be requested in accordance with the
instructions to the form, pursuant to sections (b)(4) and (b)(6) of the
Freedom of Information Act [5 U.S.C. 522(b)(4) and (b)(6)].
Abstract: The FR Y-7NS collect financial information for non-
functionally regulated U.S. nonbank subsidiaries held by FBOs other
than through a U.S. BHC, U.S. FHC, or U.S. bank. The FR Y-7NS is filed
annually, as of December 31, by top-tier FBOs for each individual
nonbank subsidiary (that does not meet the filing criteria for filing
the detailed report) with total assets of at least $50 million, but
less than $250 million. The FR Y-7Q collects consolidated regulatory
capital information from all FBOs either quarterly or annually. FBOs
that have effectively elected to become FHCs file the FR Y-7Q
quarterly. All other FBOs (those that have not elected to become FHCs)
file the FR Y-7Q annually.
Current actions: On November 3, 2010, the Federal Reserve published
a notice in the Federal Register (75 FR 67721) requesting public
comment for 60 days on the extension, without revision, of the
Financial Reports of Foreign Banking Organizations. The comment period
expired on January 3, 2011. The Federal Reserve did not receive any
comment letters.

Board of Governors of the Federal Reserve System, February 24,
2011.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2011-4568 Filed 3-1-11; 8:45 am]
BILLING CODE 6210-01-P