[Federal Register Volume 65, Number 249 (Wednesday, December 27, 2000)]
[Notices]
[Pages 81861-81862]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-32916]
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FEDERAL HOUSING FINANCE BOARD
[No. 2000-N-9]
Notice of Receipt of Petition for Case-by-Case Determination
AGENCY: Federal Housing Finance Board.
ACTION: Notice.
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SUMMARY: Notice is hereby given that the Federal Housing Finance Board
(Finance Board) has received a Petition from the Federal Home Loan Bank
(Bank) of Dallas for Finance Board approval of an application for
membership in the Dallas Bank by Washington Mutual Bank, FA (WMBFA),
currently a member of the San Francisco Bank, upon completion of the
merger of Bank United into WMBFA, under section 4(b) of the Federal
Home Loan Bank Act (Bank Act) and Sec. 925.18(a)(2) of the Finance
Board's membership regulations. The effect of such an approval would be
to allow WMBFA to be a member of both the San Francisco and the Dallas
Banks.
ADDRESSES: Send Requests to Intervene to: Elaine L. Baker, Secretary to
the Board, at the Federal Housing Finance Board, 1777 F Street, NW.,
Washington, DC 20006. Copies of non-confidential portions of the
Petition and of non-confidential portions of Requests to Intervene will
be available for inspection at this address.
FOR FURTHER INFORMATION CONTACT: James L. Bothwell, Managing Director
and Chief Economist, (202) 408-2821; Scott L. Smith, Acting Director,
Office of Policy, Research and Analysis, (202) 408-2991; Deborah F.
Silberman, General Counsel, (202) 408-2570. Staff also can be reached
by regular mail at the Federal Housing Finance Board, 1777 F Street,
NW., Washington, DC 20006.
SUPPLEMENTARY INFORMATION: Section 907.8(a) of the Finance Board's
regulations provides that a Bank may file a Petition for Case-by-Case
Determination with the Finance Board concerning any matter that may
require a determination, finding or approval under the Bank Act or
Finance Board regulations by the Board of Directors, and for which no
controlling statutory, regulatory or other Finance Board standard
previously has been established. See 12 CFR 907.8(a). Section 907.12(a)
of the Finance Board's regulations requires the Finance Board to
promptly publish a notice of receipt of a Petition for Case-by-Case
Determination, including a brief summary of the issue(s) involved, in
the Federal Register. Id. Sec. 907.12(a).
The Dallas Bank has filed a Petition for Case-by-Case
Determination, dated December 8, 2000, and received by the Finance
Board on December 11, 2000 (Petition), requesting that the Finance
Board approve the membership of WMBFA in the Dallas Bank upon
completion of the merger of Bank United into WMBFA, under section 4(b)
of the Bank Act and Sec. 925.18(a)(2) of the Finance Board's
regulations, thereby allowing WMBFA to be a member of both the San
Francisco and Dallas Banks. See 12 U.S.C. 1424(b); 12 CFR 925.18(a)(2).
The Finance Board is hereby providing notice of receipt of such
Petition, pursuant to 12 CFR 907.12(a).
WMBFA, a member of the San Francisco Bank, is awaiting approval
from its primary bank regulators of its proposed acquisition of Bank
United, a Dallas Bank member, which would be merged into WMBFA and its
charter cancelled. Upon consummation of the merger, WMBFA would seek to
retain its current membership in the San Francisco Bank and to gain
membership in the Dallas Bank, as if it had maintained the Bank United
charter. To that end, on November 24, 2000, WMBFA submitted a
membership application to the Dallas Bank. According to the Petition,
on November 29, 2000, the Dallas Bank found that WMBFA satisfied the
eligibility requirements for membership set forth in section 4 of the
Bank Act and part 925 of the Finance Board's regulations, see 12 U.S.C.
1424, 12 CFR part 925, and approved WMBFA's membership in the Dallas
Bank contingent upon approval by the Finance Board of WMFBA's
membership in the Dallas Bank under section 4(b) of the Bank Act and
Sec. 925.18(a)(2) of the Finance Board's regulations. 12 U.S.C.
1424(b); 12 CFR 925.18(a)(2).
Section 4(b) of the Bank Act states that:
An institution eligible to become a member under this section
may become a member only of, or secure advances from, the [Bank] of
the district in which is located the institution's principal place
of business, or of the [B]ank of a district adjoining such district,
if demanded by convenience and then only with the approval of the
[Finance] Board.
12 U.S.C. 1424(b); see 12 CFR 925.18(a)(2).
The Petition supplies a legal opinion that the above-referenced
statutory and implementing regulatory language may be interpreted to
allow a Bank to be a member of both the Bank in the district where its
principal place of business is located, and the Bank in the district
adjoining such district and, therefore, that WMBFA may be a member
simultaneously of the San Francisco and Dallas Banks.\1\ The Petition
further argues that, as a factual matter, WMBFA's membership in the
Dallas Bank meets the ``demanded by convenience'' standard set forth in
section 4(b) of the Bank Act and Sec. 925.18(a)(2) of the Finance
Board's regulations. Accordingly, the Petition requests Finance Board
approval of WMBFA's membership in the Dallas Bank under section 4(b)
and Sec. 925.18(a)(2), thereby allowing WMBFA to be a member of both
the San Francisco and Dallas Banks.
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\1\ The San Francisco and Dallas Bank districts are adjoining
districts.
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The Petition raises numerous fundamental legal, political and
policy issues of first impression that are critical to the structure
and function of the Bank System, such as the continued consolidation of
the financial institutions industry and the effect of that
consolidation on the economics, regional structure and cooperative
nature of the Bank System, and the impact of all of those changes on
the Banks as they implement a new capital structure.
Pursuant to the Finance Board's procedures under 12 CFR part 907,
any member, Bank, or the Office of Finance may file a Request to
Intervene in the consideration of the Petition in accordance with 12
CFR 907.11 if it believes its rights may be affected by the issues
raised by the Petition. Any Request to Intervene must be in writing and
must be filed with the Secretary to
[[Page 81862]]
the Finance Board within 45 days from the date the Petition was filed.
Requests to Intervene may include a Request to Appear before the Board
of Directors in any meeting conducted under the Finance Board's
procedures to consider the Petition.
Dated: December 20, 2000.
William C. Apgar,
HUD Secretary's Designee to the Finance Board
[FR Doc. 00-32916 Filed 12-26-00; 8:45 am]
BILLING CODE 6725-01-P