Procedures for Federal Home Loan Bank Access to Nonpublic Information of Federal Financial Regulatory Agencies

FEDERAL HOUSING FINANCE BOARD

12 CFR Part 934

[95-17]

Procedures for Federal Home Loan Bank Access to Nonpublic

Information of Federal Financial Regulatory Agencies

AGENCY: Federal Housing Finance Board.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Federal Housing Finance Board (Finance Board) is

promulgating a final rule on the procedures by which the Federal Home

Loan Banks (FHLBanks) request, receive and store sensitive, nonpublic

financial data from the Department of the Treasury, the Comptroller of

the Currency, the Board of Governors of the Federal Reserve System, the

Office of Thrift Supervision, the Federal Deposit Insurance Corporation

and the National Credit Union Administration (federal financial

regulatory agencies).

EFFECTIVE DATE: August 17, 1995.

FOR FURTHER INFORMATION CONTACT: David A. Guy, Associate General

Counsel, Office of General Counsel, Federal Housing Finance Board, 1777

F Street NW., Washington, D.C. 20006, 202-408-2536.

SUPPLEMENTARY INFORMATION: Pursuant to section 22 of the Federal Home

Loan Bank Act (Bank Act), 12 U.S.C. 1442, the FHLBanks periodically

request confidential financial data from the federal financial

regulatory agencies regarding FHLBank member institutions. On December

7, 1990, the Finance Board promulgated an interim final rule detailing

the procedures by which the FHLBanks request, receive, and maintain

this information. See 55 FR 50545 (Dec. 7, 1990). The interim final

rule provided for a comment period. The Finance Board received just one

comment letter from a savings bank, which objected to giving the

FHLBanks access to nonpublic financial information about their members

on the ground that such access gives the FHLBanks an unfair advantage

over private enterprise competitors. However, Congress has specifically

provided for the FHLBanks to have access to this information, see 12

U.S.C. 1442, and the final rule simply sets forth procedures for access

and maintaining confidentiality. Further, the Finance Board believes

that access to this information is necessary because it allows the

FHLBanks to make credit and other decisions in a more safe and sound

manner. Accordingly, the Finance Board is adopting the interim final

rule as a final rule, without change.

Because this rule initially was published as an interim final rule

and not as a proposed rule, the provisions of the Regulatory

Flexibility Act (5 U.S.C. 601, et seq.) do not apply. See id.

Sec. 603(a).

List of Subjects in 12 CFR Part 934

Federal home loan banks, Privacy, Securities, Surety bonds.

PART 934--OPERATIONS OF THE BANKS

Accordingly, the interim rule adding 12 CFR 934.15 which was

published at 55 FR 50545 on December 7, 1990, is adopted as a final

rule without change.

Dated: August 9, 1995.

By the Federal Housing Finance Board.

Bruce A. Morrison,

Chairman.

[FR Doc. 95-20218 Filed 8-16-95; 8:45 am]

BILLING CODE 6725-01-P