[Federal Register Volume 67, Number 2 (Thursday, January 3, 2002)]
[Notices]
[Page 327]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-49]
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FEDERAL HOUSING FINANCE BOARD
[No. 2001-N-13]
Notice of Annual Adjustment of the Limit in Average Total Assets
For Community Financial Institutions and Notice of Annual Adjustment of
the Limits on Annual Compensation for Federal Home Loan Bank Directors
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 adjusted the limit in average total assets that
defines a ``Community Financial Institution'' (CFI) based on the annual
percentage increase in the Consumer Price Index for all urban consumers
(CPI-U), as published by the Department of Labor (DOL), pursuant to the
requirements of Section 2(13)(B) of the Federal Home Loan Bank Act
(Bank Act) and the Finance Board's regulations. Notice is hereby given
that the Finance Board also has adjusted the limits on annual
compensation for the Federal Home Loan Bank (Bank) directors, based on
the CPI-U, as published by the DOL, pursuant to the requirements of
Section 7(i)(2)(B) of the Bank Act and the Finance Board's regulations
concerning statutory limits on Bank Directors' compensation.
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; or Kirsten L.
Landeryou, Office of Policy, Research and Analysis, (202) 408-2552.
Staff also can be reached by regular mail at the Federal Housing
Finance Board, 1777 F Street, NW., Washington, DC 20006.
SUPPLEMENTARY INFORMATION: The Bank Act (12 U.S.C. 1422(13)(B)), as
amended by the Gramm-Leach-Bliley Act (GLB Act) (Pub. L. No. 106-102,
133 Stat. 1338 (November 12, 1999)) and Sec. 900.1 of the Finance
Board's regulations (12 CFR 900.1) require the Finance Board to adjust
annually the limit in average total assets (CFI Asset Cap) set forth in
section 2(13)(A)(ii) of the Bank Act (12 U.S.C. 1422(13)(A)(ii)) and
Sec. 900.1 of the Finance Board's regulations that defines a CFI, based
on the annual percentage increase, if any, in the CPI-U, as published
by the Department of Labor (DOL). Section 7(i)(2)(B) of the Bank Act
(12 U.S.C. 1427(i)(2)(B)), as amended by the GLB Act, and
Sec. 918.3(a)(1) of the Finance Board's regulations (12 CFR
913.3(a)(1)), require the Finance Board, beginning January 1, 2001, to
make a similar annual adjustment to the compensation limits set forth
in section 7(i)(2)(A) of the Bank Act (12 U.S.C. 1427(i)(2)(A)) and
Sec. 918.3(a)(1) of the Finance Board's regulations, for members of the
boards of directors of the Banks based on the annual percentage
increase, if any, in the CPI-U, as published by the DOL.
Pursuant to the Finance Board's regulations, for purposes of the
CFI Asset Cap, the Finance Board is required to publish notice by
Federal Register of the CPI-U-adjusted cap. For purposes of the Banks'
board of directors annual compensation adjustments, the Finance Board
is required to publish notice, by Federal Register, distribution of a
memorandum or otherwise, of the CPI-U-adjusted limits on annual
compensation. The annual adjustment of the existing CFI Asset Cap and
annual Bank director compensation limits, effective January 1 of a
particular calendar year, reflects the percentage by which the CPI-U
published for November of the preceding calendar year exceeds the CPI-U
published for November of the year before the preceding calendar year
(if at all). For example, the adjustment of the limits effective
January 1, 2002 are based on the percentage increase in the CPI-U from
November 2000 to November 2001. The Finance Board has determined that
it is appropriate to use data from November rather than waiting for the
December data to become available so that the Banks can be notified of
the revised asset limit and compensation limits as close to the
effective date as possible. Other Federal agencies do not rely on
December data, which is published in mid-January, when calculating
annual inflation adjustments and, as a result, are able to announce the
adjustments prior to the effective date of January 1.
The DOL encourages the use of CPI-U data that has not been
seasonally adjusted in ``escalation agreements'' because seasonal
factors are updated annually and seasonally adjusted data are subject
to revision for up to five years following the original release;
unadjusted data are not routinely subject to revision, and previously
published unadjusted data are only corrected when significant
calculation errors are discovered. Accordingly, the Finance Board is
using data that had not been seasonally adjusted to calculate the new
CFI Asset Cap and annul Bank director compensation limits.
The unadjusted CPI-U increased 1.9 percent between November of 2000
and November of 2001. Based on this data, the Finance Board adjusted
the CFI Asset Cap for 2001 from $517 million to $527 million, beginning
January 1, 2002.
The Finance Board also adjusted, based on the 1.9 percent increase
in the CPI-U, the annual compensation for the listed members of the
boards of directors of the Banks as follows, beginning January 1, 2002:
for a Chairperson--$26,341; for a Vice-Chairperson--$21,073; for any
other member of a Bank's board of directors--$15,805.
Dated: December 27, 2001.
By the Federal Housing Finance Board.
John T. Korsmo,
Chairman.
[FR Doc. 02-49 Filed 1-2-02; 8:45 am]
BILLING CODE 6725-01-P