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26 September 2008

Includes related Federal Reserve System notice.


[Federal Register: September 26, 2008 (Volume 73, Number 188)]
[Rules and Regulations]               
[Page 55704-55706]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se08-2]                         

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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 3

[Docket ID OCC-2008-0015]
RIN 1557-AD15

 
Risk-Based Capital Guidelines--Money Market Mutual Funds

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Interim final rule with request for public comment.

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

SUMMARY: To reduce liquidity and other strains being experienced by 
money market mutual funds, the Board of Governors of the Federal 
Reserve System adopted on September 19, 2008, a special lending 
facility that enables depository institutions and bank holding 
companies to borrow from the Federal Reserve Bank of Boston on a 
nonrecourse basis if they use the proceeds of the loan to purchase 
certain types of asset-backed commercial paper (ABCP) from money market 
mutual funds. This lending facility is referenced to as the ABCP 
Lending Facility. To facilitate the ability of national banks to 
participate in the program, the Office of the Comptroller of the 
Currency (OCC) has adopted, on an interim final basis, an exemption 
from its risk-based capital guidelines for ABCP held by a national bank 
as a result of its participation in this program.

DATES: This interim final rule is effective on September 19, 2008. 
However, comments must be received on or before October 31, 2008.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by e-
mail, if possible. Please use the title ``Risk-Based Capital 
Guidelines--Money Market Mutual Funds'' to facilitate the organization 
and distribution of the comments. You may submit comments by any of the 
following methods:
     Federal eRulemaking Portal--``Regulations.gov'': Go to 
http://www.regulations.gov, under the ``More Search Options'' tab click 
next to the ``Advanced Docket Search'' option where indicated, select 
``Comptroller of the Currency'' from the agency drop-down menu, then 
click ``Submit.'' In the ``Docket ID'' column, select ``OCC-2008-0015'' 
to submit or view public comments and to view supporting and related 
materials for this interim final rule. The ``How to Use This Site'' 
link on the Regulations.gov home page provides information on using 
Regulations.gov, including instructions for submitting or viewing 
public comments, viewing other supporting and related materials, and 
viewing the docket after the close of the comment period.
     E-mail: regs.comments@occ.treas.gov.
     Mail: Office of the Comptroller of the Currency, 250 E 
Street, SW., Mail Stop 1-5, Washington, DC 20219.
     Fax: (202) 874-4448.
     Hand Delivery/Courier: 250 E Street, SW., Attn: Public 
Information Room, Mail Stop 1-5, Washington, DC 20219.
    Instructions: You must include ``OCC'' as the agency name and 
``Docket ID OCC-2008-0015'' in your comment. In general, OCC will enter 
all comments received into the docket and publish them on the 
Regulations.gov Web site without change, including any business or 
personal information that you provide such as name and address 
information, e-mail addresses, or phone numbers. Comments received, 
including attachments and other supporting materials, are part of the 
public record and subject to public disclosure. Do not enclose any 
information in your comment or supporting materials that you consider 
confidential or inappropriate for public disclosure.
    You may review comments and other related materials that pertain to 
this interim final rule by any of the following methods:
     Viewing Comments Electronically: Go to http://
www.regulations.gov, under the ``More Search Options'' tab click next 
to the ``Advanced Docket Search'' option where indicated, select 
``Comptroller of the Currency'' from the agency drop-down menu, then 
click ``Submit.'' In the ``Docket ID'' column, select ``OCC-2008-0015'' 
to view public comments for this rulemaking action.

[[Page 55705]]

     Viewing Comments Personally: You may personally inspect 
and photocopy comments at the OCC's Public Information Room, 250 E 
Street, SW., Washington, DC. For security reasons, the OCC requires 
that visitors make an appointment to inspect comments. You may do so by 
calling (202) 874-5043. Upon arrival, visitors will be required to 
present valid government-issued photo identification and submit to 
security screening in order to inspect and photocopy comments.
     Docket: You may also view or request available background 
documents and project summaries using the methods described above.

FOR FURTHER INFORMATION CONTACT: Margot Schwadron, Senior Risk Expert, 
(202) 874-6022, Capital Policy Division; Ron Shimabukuro, Senior 
Counsel; or Hugh Carney, Attorney, Legislative and Regulatory 
Activities Division, (202) 874-5090; Office of the Comptroller of the 
Currency, 250 E Street, SW., Washington, DC 20219.

SUPPLEMENTARY INFORMATION:

Introduction; Description of Interim Final Rule

    In light of the ongoing dislocations in the financial markets, and 
the impact of such dislocations on the functioning of the markets for 
ABCP and on the operations of money market mutual funds, the Board of 
Governors of the Federal Reserve System adopted the ABCP Lending 
Facility on September 19, 2008. Under the ABCP Lending Facility, 
depository institutions and bank holding companies (banking 
organizations) are able to borrow from the Federal Reserve Bank of 
Boston on a nonrecourse basis on condition that the banking 
organizations use the proceeds of the Federal Reserve credit to 
purchase, at amortized cost, certain highly rated U.S. dollar-
denominated ABCP from money market mutual funds. The ABCP purchased 
must be used to secure the borrowing from the Reserve Bank. The purpose 
of the ABCP Lending Facility is to assist money market mutual funds to 
obtain liquidity by enabling them to sell some of their high-credit-
quality secured assets at amortized cost. The ABCP Lending Facility 
will expire on January 30, 2009.
    National banks that participate in the ABCP Lending Facility must 
acquire and hold ABCP on their balance sheet. These ABCP holdings 
attract regulatory capital requirements under the OCC's regulatory 
capital guidelines and rules.\1\ To facilitate the ABCP Lending 
Facility, and for the reasons discussed below, the OCC has adopted, on 
an interim final basis, an exemption from its risk-based capital 
guidelines for ABCP purchased by a national bank as a result of its 
participation in the facility. Specifically, the interim final rule 
amends the OCC's risk-based capital guidelines to permit national banks 
to assign a zero percent risk weight to ABCP purchased by the national 
bank as a result of its participation in the facility.
---------------------------------------------------------------------------

    \1\ See 12 CFR Part 3.
---------------------------------------------------------------------------

    The OCC has determined that the current risk-based capital 
requirements for ABCP acquired by a national bank pursuant to the ABCP 
Lending Facility do not reflect the substantial protections provided to 
the bank by the Federal Reserve in connection with the facility. 
Because of the non-recourse nature of the Federal Reserve's credit 
extension to the banking organization, the bank is not exposed to the 
credit or market risk of the ABCP purchased by the bank and pledged to 
the Federal Reserve. Therefore, the OCC believes that it would be 
appropriate--and consistent with the economic substance of the 
transactions--not to impose risk-based capital requirements on a 
national bank that serves as an intermediary in the ABCP Lending 
Facility.
    Consistent with generally accepted accounting principles, the OCC 
would expect national banks to report purchased ABCP as an investment 
security (for example, held-to-maturity). These assets would be 
reflected at the time of purchase at the national bank's best estimate 
of fair value. The nonrecourse nature of the transaction would impact 
the valuation of the liability to the Federal Reserve. After reflecting 
any appropriate discounts on the assets and associated liabilities, 
national banks are not expected to report any material net gains or 
losses at the time of purchase.

Effective Date; Solicitation of Comments

    This interim final rule is effective immediately upon adoption. 
Pursuant to the Administrative Procedure Act (APA), at 5 U.S.C. 
553(b)(B), notice and comment are not required prior to the issuance of 
a final rule if an agency, for good cause, finds that ``notice and 
public procedure thereon are impracticable, unnecessary, or contrary to 
the public interest.'' \2\ Similarly, a final rule may be published 
with an immediate effective date if an agency finds good cause and 
publishes such with the final rule.\3\
---------------------------------------------------------------------------

    \2\ 5 U.S.C. 553(b)(B).
    \3\ 5 U.S.C. 553(d)(3).
---------------------------------------------------------------------------

    Consistent with section 553(b)(B) of the APA, the OCC finds that 
good cause exists for a finding that notice and comment is 
impracticable and contrary to the public interest. As previously 
described, modification of the risk-based capital guidelines are 
critical to maintain the orderly functioning of markets and provide 
market liquidity. Completion of notice and comment rulemaking 
procedures prior to issuing this interim final rule would delay their 
implementation. In the current market environment, such a delay is 
impracticable and inconsistent with the public interest since it may 
result in undue constraint on national banks' ability to perform 
critical lending and financial intermediary roles which are necessary 
for the orderly functioning and liquidity of markets. Issuance of this 
interim final rule furthers the public interest because it will reduce 
liquidity and other strains being experienced by money market mutual 
funds. For the same reasons, the OCC finds good cause to publish this 
interim final rule with an immediate effective date.\4\
---------------------------------------------------------------------------

    \4\ Id.
---------------------------------------------------------------------------

    Although notice and comment are not required prior to the effective 
date of this interim final rule, the OCC invites comments on all 
aspects of the rule and will revise it if necessary or appropriate in 
light of the comments received.

Regulatory Analysis

Executive Order 12,866

    For the reasons described elsewhere in the SUPPLEMENTARY 
INFORMATION the OCC's issuance of this interim final rule is subject to 
the procedures set forth in Section 6(a)(3)(D) of Executive Order 
12,866.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (Pub. L. 96-354, Sept. 19, 1980) 
(RFA) applies only to rules for which an agency publishes a general 
notice of proposed rulemaking pursuant to 5 U.S.C. 553(b).\5\ Pursuant 
to the Administrative Procedure Act (APA) at 5 U.S.C. 553(b)(B), 
general notice and an opportunity for public comment are not required 
prior to the issuance of a final rule when an agency, for good cause, 
finds that ``notice and public procedure thereon are impracticable, 
unnecessary, or contrary to the public interest.'' \6\
---------------------------------------------------------------------------

    \5\ 5 U.S.C. 601(2).
    \6\ 5 U.S.C. 553(b)(B).
---------------------------------------------------------------------------

    As discussed above, the OCC has determined for good cause that the 
APA does not require general notice and public comment on this interim 
final rule and, therefore, we are not publishing a general notice of 
proposed rulemaking. Thus, the RFA, pursuant to

[[Page 55706]]

5 U.S.C. 601(2), does not apply to this interim final rule.

Paperwork Reduction Act

    In accordance with the requirements of the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3506), we have reviewed the interim final rule to 
assess any information collections. There are no collections of 
information as defined by the Paperwork Reduction Act in the interim 
final rule.

Unfunded Mandates Reform Act of 1995

    Section 202 of the Unfunded Mandates Reform Act of 1995, Pub. L. 
104-4 (2 U.S.C. 1532) (Unfunded Mandates Act), requires that an agency 
prepare a budgetary impact statement before promulgating any rule 
likely to result in a Federal mandate that may result in the 
expenditure by State, local, and tribal governments, in the aggregate, 
or by the private sector, of $100 million or more in any one year. The 
OCC has determined that there is no Federal mandate imposed by this 
rulemaking. Accordingly, the interim final rule is not subject to 
section 202 of the Unfunded Mandates Act.

List of Subjects in 12 CFR Part 3

    Administrative practices and procedure, Capital, National banks, 
Reporting and recordkeeping requirements, Risk.

Authority and Issuance

0
For the reasons stated in the preamble, the Office of the Comptroller 
of the Currency amends Part 3 of chapter I of Title 12, Code of Federal 
Regulations as follows:

PART 3--MINIMUM CAPITAL RATIOS; ISSUANCE OF DIRECTIVES

0
1. The authority citation for part 3 continues to read as follows:

    Authority: 12 U.S.C. 93a, 161, 1818, 1828(n), 1828 note, 1831n 
note, 1835, 3907, and 3909.


0
2. In Appendix A to part 3, section 3(a)(1) is amended to add new 
paragraph (ix) to read as follows:

PART 3--MINIMUM CAPTIAL RATIOS; ISSUANCE OF DIRECTIVES

Appendix A to Part 3--Risk-Based Capital Guidelines

* * * * *

Section 3. Risk Categories/Weights for On-Balance Sheet Assets and 
Off-Balance Sheet Items

    (a) * * *
    (1) Zero percent risk weight. * * *
    (ix) Asset-backed commercial paper (ABCP) that is:
    (A) Purchased by the bank between September 19, 2008, and 
January 30, 2009 (unless further extended by the OCC), from an 
Securities and Exchange Commission (SEC)-registered open-end 
investment company that holds itself out as a money market mutual 
fund under SEC Rule 2a-7 (17 CFR 270.2a-7); and
    (B) Pledged by the bank to a Federal Reserve Bank to secure 
financing from the ABCP lending facility established by the Federal 
Reserve Board on September 19, 2008.
* * * * *

    Dated: September 20, 2008.
John C. Dugan,
Comptroller of the Currency.
 [FR Doc. E8-22720 Filed 9-25-08; 8:45 am]

BILLING CODE 4810-33-P


[Federal Register: September 26, 2008 (Volume 73, Number 188)]
[Rules and Regulations]               
[Page 55706-55708]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr26se08-3]                         

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FEDERAL RESERVE SYSTEM

12 CFR Parts 208 and 225

[Regulations H and Y; Docket No. 1332]

 
Risk-Based Capital Guidelines; Leverage Capital Guidelines

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Interim final rule with request for public comment.

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

SUMMARY: To reduce liquidity and other strains being experienced by 
money market mutual funds, the Federal Reserve System adopted on 
September 19, 2008, a special lending facility (ABCP Lending Facility) 
that enables depository institutions and bank holding companies to 
borrow from the Federal Reserve Bank of Boston on a nonrecourse basis 
if they use the proceeds of the loan to purchase certain types of 
asset-backed commercial paper (ABCP) from money market mutual funds. To 
facilitate this Federal Reserve lending program, the Board of Governors 
of the Federal Reserve System (Board) also has adopted, on an interim 
final basis, an exemption from its leverage and risk-based capital 
rules for ABCP held by a state member bank or bank holding company as a 
result of its participation in this program.

DATES: The interim final rule became effective on September 19, 2008. 
Comments must be received on or before October 31, 2008.

ADDRESSES: You may submit comments, identified by Docket No. R-1332, by 
any of the following methods:
     Agency Web site: http://www.federalreserve.gov Follow the 
instructions for submitting comments at http://www.federalreserve.gov/
generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: regs.comments@federalreserve.gov. Include docket 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Jennifer J. Johnson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue, 
NW., Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, unless modified for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper form in Room MP-500 of the Board's Martin Building (20th and C 
Street, NW) between 9 a.m. and 5 p.m. on weekdays.

FOR FURTHER INFORMATION CONTACT: Mark E. Van Der Weide, Assistant 
General Counsel, (202) 452-2263, or Andrea R. Tokheim, Counsel, (202) 
452-2300, Legal Division; Barbara J. Bouchard, Associate Director, 
(202) 452-3072, or Juan C. Climent, Senior Supervisory Financial 
Analyst, (202) 872-7526, Division of Banking Supervision and 
Regulation. For the hearing impaired only, Telecommunication Device for 
the Deaf (TDD), (202) 263-4869.

SUPPLEMENTARY INFORMATION: In light of the ongoing dislocations in the 
financial markets, and the impact of such dislocations on the 
functioning of the markets for ABCP and on the operations of money 
market mutual funds, the Board adopted the ABCP Lending Facility on 
September 19, 2008. Under the ABCP Lending Facility, depository 
institutions and bank holding companies (banking organizations) are 
able to borrow from the Federal Reserve Bank of Boston on a nonrecourse 
basis on condition that the organizations use the proceeds of the 
Federal Reserve credit to purchase, at amortized cost, certain highly 
rated U.S. dollar-denominated ABCP from money market mutual funds. The 
ABCP purchased must be used to secure the borrowing from the Reserve 
Bank. The purpose of the ABCP Lending Facility is to assist money 
market mutual funds to obtain liquidity by enabling them to sell some 
of their high-credit-quality secured assets at amortized cost. The ABCP 
Lending Facility will expire on January

[[Page 55707]]

30, 2009 (unless further extended by the Board).
    Banking organizations that participate in the ABCP Lending Facility 
must acquire and hold ABCP on their balance sheet. These ABCP holdings 
attract leverage and risk-based capital charges under the Board's 
regulatory capital rules for state member banks and bank holding 
companies. To facilitate the ABCP Lending Facility, and for the reasons 
discussed below, the Board has adopted, on an interim final basis, an 
exemption from its leverage and risk-based capital rules for ABCP 
purchased by a state member bank or bank holding company as a result of 
its participation in the facility. Specifically, the interim final rule 
(i) amends the Board's risk-based capital rules for state member banks 
and bank holding companies to assign a zero percent risk weight to ABCP 
purchased by the banking organization as a result of its participation 
in the facility; and (ii) amends the Board's leverage capital rules for 
state member banks and bank holding companies to permit banking 
organizations to exclude from average total consolidated assets--the 
denominator of the leverage ratio--ABCP purchased by the banking 
organization as a result of its participation in the facility.
    The Board has determined that the current leverage and risk-based 
capital requirements for ABCP acquired by a banking organization 
pursuant to the ABCP Lending Facility do not reflect the substantial 
protections provided to the organization by the Federal Reserve in 
connection with the facility. Because of the non-recourse nature of the 
Federal Reserve's credit extension to the banking organization, the 
organization is not exposed to the credit or market risk of the ABCP 
purchased by the organization and pledged to the Federal Reserve. 
Therefore, the Board believes that it would be appropriate--and 
consistent with the economic substance of the transactions--not to 
impose regulatory capital requirements on the ABCP purchased by a 
banking organization in connection with its service as an intermediary 
in the ABCP Lending Facility.
    Consistent with its purpose to mitigate temporary stresses faced by 
U.S. money market mutual funds, the interim final rule will expire on 
January 30, 2009, unless extended by the Board.

Administrative Procedure Act

    Pursuant to sections 553(b) and (d) of the Administrative Procedure 
Act (5 U.S.C. 553(b) and (d)), the Board finds that there is good cause 
for making the rule effective immediately on September 19, 2008, and 
that it is impracticable, unnecessary, or contrary to the public 
interest to issue a notice of proposed rulemaking and provide an 
opportunity to comment before the effective date. The Board has adopted 
the rule in light of, and to help address, the continuing unusual and 
exigent circumstances in the financial markets. The rule will provide 
immediate regulatory capital relief to state member banks and bank 
holding companies that elect to participate in the Federal Reserve's 
ABCP lending program. The Board is soliciting comment on all aspects of 
the rule and will make such changes that they consider to be 
appropriate or necessary after review of any comments received.

Regulatory Flexibility Act

    The Regulatory Flexibility Act requires an agency that is issuing a 
final rule to prepare and make available a regulatory flexibility 
analysis that describes the impact of the final rule on small entities. 
5 U.S.C. 603(a). The Regulatory Flexibility Act provides that an agency 
is not required to prepare and publish a regulatory flexibility 
analysis if the agency certifies that the final rule will not have a 
significant economic impact on a substantial number of small entities. 
5 U.S.C. 605(b).
    Pursuant to section 605(b), the Board certifies that this interim 
final rule will not have a significant economic impact on a substantial 
number of small entities. The rule reduces regulatory burden on large 
and small state member banks and bank holding companies by granting an 
exemption from the leverage and risk-based capital rules for state 
member banks and bank holding companies that purchase ABCP from money 
market mutual funds pursuant to the Federal Reserve's ABCP lending 
program.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act (44 U.S.C. 3506; 5 
CFR Part 1320 Appendix A.1), the Board has reviewed the interim final 
rule under authority delegated to the Board by the Office of Management 
and Budget. The rule contains no collections of information pursuant to 
the Paperwork Reduction Act.

Plain Language

    Section 722 of the Gramm-Leach-Bliley Act requires the Board to use 
``plain language'' in all proposed and final rules. In light of this 
requirement, the Board has sought to present the interim final rule in 
a simple and straightforward manner. The Board invites comment on 
whether it could take additional steps to make the rule easier to 
understand.

List of Subjects

12 CFR Part 208

    Confidential business information, Crime, Currency, Federal Reserve 
System, Mortgages, Reporting and recordkeeping requirements, 
Securities.

12 CFR Part 225

    Administrative practice and procedure, Banks, banking, Federal 
Reserve System, Holding companies, Reporting and recordkeeping 
requirements, Securities.

Authority and Issuance

0
For the reasons stated in the preamble, the Board of Governors of the 
Federal Reserve System amends parts 208 and 225 of chapter II of title 
12 of the Code of Federal Regulations as follows:

PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL 
RESERVE SYSTEM (REGULATION H)

0
1. The authority citation for part 208 continues to read as follows:

    Authority: 12 U.S.C. 24, 36, 92a, 93a, 248(a), 248(c), 321-338a, 
371d, 461, 481-486, 601, 611, 1814, 1816, 1818, 1820(d)(9), 1823(j), 
1828(o), 1831, 1831o, 1831p-1, 1831r-1, 1835a, 1882, 2901-2907, 
3105, 3310, 3331-3351, and 3906-3909; 15 U.S.C. 78b, 78l(b), 78l(g), 
78l(i), 78o-4(c)(5), 78q, 78q-1, and 78w, 6801, and 6805; 31 U.S.C. 
5318; 42 U.S.C. 4012a, 4104a, 4104b, 4106, and 4128.


0
2. In Appendix A to part 208, amend section III.C.1. by adding a new 
third paragraph to read as follows:

Appendix A to Part 208--Capital Adequacy Guidelines for State Member 
Banks: Risk-Based Measure

* * * * *
    III. * * *
    C. * * *
    1. * * *
* * * * *
    This category also includes ABCP (i) purchased by a bank between 
September 19, 2008, and January 30, 2009 (unless extended by the 
Board), from an SEC-registered open-end investment company that 
holds itself out as a money market mutual fund under SEC Rule 2a-7 
(17 CFR 270.2a-7) and (ii) pledged by the bank to a Federal Reserve 
Bank to secure financing from the ABCP lending facility established 
by the Board on September 19, 2008.
* * * * *


0
3. In Appendix B to part 208, amend section II by adding a new 
paragraph h to read as follows:

[[Page 55708]]

Appendix B to Part 208--Capital Adequacy Guidelines for State Member 
Banks: Tier 1 Leverage Measure

* * * * *

II. * * *

    h. Notwithstanding anything in this appendix to the contrary, a 
bank may deduct from its average total consolidated assets the 
amount of any asset-backed commercial paper (i) purchased by the 
bank between September 19, 2008, and January 30, 2009 (unless 
extended by the Board), from an SEC-registered open-end investment 
company that holds itself out as a money market mutual fund under 
SEC Rule 2a-7 (17 CFR 270.2a-7) and (ii) pledged by the bank to a 
Federal Reserve Bank to secure financing from the ABCP lending 
facility established by the Board on September 19, 2008.

PART 225--BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL 
(REGULATION Y)

0
1. The authority citation for part 225 continues to read as follows:

    Authority: 12 U.S.C. 1817(j)(13), 1818, 1828(o), 1831i, 1831p-1, 
1843(c)(8), 1844(b), 1972(1), 3106, 3108, 3310, 3331-3351, 3907, and 
3909; 15 U.S.C. 6801 and 6805.


0
2. In Appendix A to part 225, amend section III.C.1. by adding a new 
third paragraph to read as follows:

Appendix A to Part 225--Capital Adequacy Guidelines for Bank Holding 
Companies: Risk-Based Measure

* * * * *
    III. * * *
    C. * * *
    1. * * *
* * * * *
    This category also includes ABCP (i) purchased by a bank holding 
company between September 19, 2008, and January 30, 2009 (unless 
extended by the Board), from an SEC-registered open-end investment 
company that holds itself out as a money market mutual fund under 
SEC Rule 2a-7 (17 CFR 270.2a-7) and (ii) pledged by the bank holding 
company to a Federal Reserve Bank to secure financing from the ABCP 
lending facility established by the Board on September 19, 2008.
* * * * *


0
3. In Appendix D to part 225, amend section II by adding new paragraph 
d to read as follows:

Appendix D to Part 225--Capital Adequacy Guidelines for Bank Holding 
Companies: Tier 1 Leverage Measure

* * * * *

II. * * *

    d. Notwithstanding anything in this appendix to the contrary, a 
bank holding company may deduct from its average total consolidated 
assets the amount of any asset-backed commercial paper (i) purchased 
by the bank holding company between September 19, 2008, and January 
30, 2009 (unless extended by the Board), from an SEC-registered 
open-end investment company that holds itself out as a money market 
mutual fund under SEC Rule 2a-7 (17 CFR 270.2a-7) and (ii) pledged 
by the bank holding company to a Federal Reserve Bank to secure 
financing from the ABCP lending facility established by the Board on 
September 19, 2008.

    By order of the Board of Governors of the Federal Reserve 
System, September 19, 2008.
Jennifer J. Johnson,
Secretary of the Board.
 [FR Doc. E8-22702 Filed 9-25-08; 8:45 am]

BILLING CODE 6210-01-P