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Proposed Rule

Dividends

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble

AGENCY:

Federal Deposit Insurance Corporation.

ACTION:

Proposed rule; extension of comment period.

SUMMARY:

On May 18, 2006, the Federal Deposit Insurance Corporation (FDIC) issued a notice of proposed rulemaking with request for comments on the implementation of dividends, as required by the Federal Deposit Insurance Act, as amended by the Federal Deposit Insurance Reform Act (“Reform Act”) (see 71 FR 28804). The FDIC is extending the comment period on that notice of proposed rulemaking to August 16, 2006. This action will allow interested persons additional time to analyze the issues and prepare their comments.

DATES:

Comments must be received on or before August 16, 2006.

ADDRESSES:

You may submit comments, identified by RIN number 3064-AD07 by any of the following methods:

  • Agency Web site: http://www.FDIC.gov/​regulations/​laws/​federal/​propose.html.
  • Mail: Robert E. Feldman, Executive Secretary, Attention: Comments/Legal ESS, Federal Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC 20429.
  • Hand Delivered/Courier: The guard station at the rear of the 550 17th Street, N.W. Building (located on F Street), on business days between 7 a.m. and 5 p.m.
  • E-mail: comments@FDIC.gov. Include RIN number 3064-AD07 in the subject line of the message.

Instructions: Submissions received must include the agency name and RIN for this rulemaking. Comments received will be posted without change to http://www.FDIC.gov/​regulations/​laws/​federal/​propose.html, including any personal information provided.

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FOR FURTHER INFORMATION CONTACT:

Munsell W. St. Clair, Senior Policy Analyst, Division of Insurance and Research, (202) 898-8967; Donna M. Saulnier, Senior Assessment Policy Specialist, Division of Finance, (703) 562-6167; and Kymberly K. Copa, Counsel, Legal Division, (202) 898-8832.

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SUPPLEMENTARY INFORMATION:

On May 18, 2006, the FDIC requested comment on its proposal to implement the dividend requirements for an initial two-hear period. The proposed rule would sunset on December 31, 2008, and addresses the method for the calculation, declaration, and payment of dividends, and administrative appeals of individual dividend amounts.

The proposed rule on dividends is just one of three notices of proposed rulemaking to implement certain aspects of the Reform Act published by the FDIC on the same date. At that time, the FDIC also published proposed rules on the one-time assessment credit (see 71 FR 28809) and certain procedural and operational changes to its risk-based assessments regulations in part 327 (see 71 FR 28790). In addition, the Reform Act requires the FDIC to prescribe rules on the designated reserve ratio and risk-based assessments. Those proposed rules are expected to be published in the coming weeks.

The FDIC has determined that it would be most effective for comment purposes to have a longer period of overlap between the pending proposed rules on credits, dividends, and operational changes to the risk-based assessments regulations, and the upcoming proposed rules on the designated reserve ratio and risk-based assessments. All of these proposals relate in one way or another to risk-based assessments, and commenters should have a period of time during which they could, if they so choose, review all of the proposals together.

Recently, ING Bank, fsb and Nationwide Bank requested that the FDIC extend the closing date for comments on the pending proposed rules to coincide with the closing date for comments on the upcoming proposed rules. While the FDIC understands the concerns expressed, a 30-day extension should provide sufficient comment period overlap to permit all of the proposals to be reviewed together, giving interested parties 90 days to comment on the three pending proposals and allowing FDIC staff to consider all comments in a timely manner.

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Dated at Washington, DC this 20th day of June, 2006.

By order of the Board of Directors.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.

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[FR Doc. 06-5834 Filed 6-27-06; 8:45 am]

BILLING CODE 6714-01-P