Published Final Federal Register Notice

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clarity of the information to be
collected; and (d) ways to minimize the
burden of the information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
All comments will become a matter of
public record.

FEDERAL DEPOSIT INSURANCE
CORPORATION

Dated at Washington, DC, this 22nd day of
November 2011.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.

AGENCY:

Update to Notice of Financial
Institutions for Which the Federal
Deposit Insurance Corporation has
been Appointed Either Receiver,
Liquidator, or Manager
Federal Deposit Insurance
Corporation.
ACTION: Update Listing of Financial
Institutions in Liquidation.
Notice is hereby given that
the Federal Deposit Insurance
Corporation (Corporation) has been
appointed the sole receiver for the
following financial institutions effective
as of the Date Closed as indicated in the
listing. This list (as updated from time

SUMMARY:

[FR Doc. 2011–30605 Filed 11–28–11; 8:45 am]
BILLING CODE 6714–01–P

to time in the Federal Register) may be
relied upon as ‘‘of record’’ notice that
the Corporation has been appointed
receiver for purposes of the statement of
policy published in the July 2, 1992
issue of the Federal Register (57 FR
29491). For further information
concerning the identification of any
institutions which have been placed in
liquidation, please visit the Corporation
Web site at http://www.fdic.gov/bank/
individual/failed/banklist.html or
contact the Manager of Receivership
Oversight in the appropriate service
center.
Dated: November 21, 2011.
Federal Deposit Insurance Corporation
Pamela Johnson,
Regulatory Editing Specialist.

INSTITUTIONS IN LIQUIDATION
(In alphabetical order)
FDIC Ref. No.

Bank name

City

10413 ............................
10414 ............................

Central Progressive Bank ....................................
Polk County Bank ................................................

Lacombe .......................
Johnston .......................

FOR FURTHER INFORMATION CONTACT:

[FR Doc. 2011–30600 Filed 11–28–11; 8:45 am]
BILLING CODE 6714–01–P

FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB; Capital
Plans; Final Agency Information
Collection Activities
On June 15, 1984, the Office
of Management and Budget (OMB)
delegated to the Board of Governors of
the Federal Reserve System (Board) its
approval authority under the Paperwork
Reduction Act (PRA), pursuant to its
regulations, to approve of and assign
OMB control numbers to collection of
information requests and requirements
conducted or sponsored by the Board
under conditions set forth in its
regulations. Board-approved collections
of information are incorporated into the
official OMB inventory of currently
approved collections of information.
Copies of the PRA submission,
supporting statements and approved
collection of information instruments
are placed into OMB’s public docket
files. The Federal Reserve may not
conduct or sponsor, and the respondent
is not required to respond to, an
information collection that has been
extended, revised, or implemented on or
after October 1, 1995, unless it displays
a currently valid OMB control number.

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SUMMARY:

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Federal Reserve Board Clearance
Officer—Cynthia Ayouch—Division of
Research and Statistics, Board of
Governors of the Federal Reserve
System, Washington, DC 20551 (202)
452–3829. Telecommunications Device
for the Deaf (TDD) users may contact
(202) 263–4869. Board of Governors of
the Federal Reserve System,
Washington, DC 20551. OMB Desk
Officer—Shagufta Ahmed—Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW., Washington, DC
20503.
Final approval under OMB delegated
authority for the implementation of the
following report:
Report title: Capital Assessments and
Stress Testing.
Agency form number: FR Y–14A and
FR Y–14Q.
OMB control number: 7100–0341.
Frequency: Annual and Quarterly.
Reporters: Large domestic bank
holding companies (BHCs), that
participated in the 2009 Supervisory
Capital Assessment Program (SCAP)
exercise.
Estimated annual reporting hours: FR
Y–14A: Summary, 15,580 hours; Macro
scenario, 589 hours; Counterparty credit
risk (CCR), 2,292 hours; Basel III, 380
hours; and Regulatory capital
instruments, 380 hours. FR Y–14 Q:
Securities risk, 760 hours; Retail risk,
431,908 hours; Pre-provision net

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State
LA
IA

Date closed
11/18/2011
11/18/2011

revenue (PPNR), 47,500 hours;
Wholesale corporate loans, 3,840 hours;
Wholesale commercial real estate (CRE)
loans, 4,560 hours; Trading, private
equity, and other fair value assets
(Trading risk), 41,280 hours; Basel III,
1,520 hours; and Regulatory capital
instruments, 3,040 hours.
Estimated average hours per response:
FR Y–14A: Summary, 820 hours; Macro
scenario, 31 hours; CCR, 382 hours;
Basel III, 20 hours; and Regulatory
capital instruments, 20 hours. FR Y–14
Q: Securities risk, 10 hours; Retail risk,
5,683 hours; PPNR, 625 hours;
Wholesale corporate loans, 60 hours;
Wholesale CRE loans, 60 hours; Trading
risk, 1,720 hours; Basel III, 20 hours;
and Regulatory capital instruments, 40
hours.
Number of respondents: 19.
General description of report: The FR
Y–14A and Q are authorized by section
165 of the Dodd-Frank Act which
requires the Federal Reserve to ensure
that certain BHCs and nonbank financial
companies supervised by the Federal
Reserve are subject to enhanced riskbased and leverage standards in order to
mitigate risks to the financial stability of
the United States. 12 U.S.C 5365.
Additionally, Section 5 of the BHC Act
authorizes the Board to issue regulations
and conduct information collections
with regard to the supervision of BHCs.
12 U.S.C. 1844.
As these data will be collected as part
of the supervisory process, they are

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Federal Register / Vol. 76, No. 229 / Tuesday, November 29, 2011 / Notices
subject to confidential treatment under
exemption 8 of the Freedom of
Information Act. 5 U.S.C. 552(b)(8). In
addition, commercial and financial
information contained in these
information collections may be exempt
from disclosure under Exemption 4. 5
U.S.C. 552(b)(4). Disclosure
determinations would be made on a
case-by-case basis.
Abstract: During the years leading up
to the recent financial crisis, many
BHCs made significant distributions of
capital, in the form of stock repurchases
and dividends, without due
consideration of the effects that a
prolonged economic downturn could
have on their capital adequacy and
ability to continue to operate and
remain credit intermediaries during
times of economic and financial stress.
In 2009, the Board conducted the SCAP,
a ‘‘stress test’’ of 19 large, domestic
BHCs. The SCAP was focused on
identifying whether large BHCs had
capital sufficient to weather a moreadverse-than-anticipated economic
environment while maintaining their
capacity to lend. In early 2011, the
Federal Reserve continued its
supervisory evaluation of the resiliency
and capital adequacy processes of the
same 19 BHCs through the
Comprehensive Capital Analysis and
Review (CCAR 2011). The CCAR 2011
involved the Federal Reserve’s forwardlooking evaluation of the internal
capital planning processes of the BHCs
and their anticipated capital actions in
2011, such as increasing dividend
payments or repurchasing or redeeming
stock.
On June 17, 2011, the Federal Reserve
published the Capital Plan rulemaking
(or proposed rule) in the Federal
Register for public comment (76 FR
35351) that would revise the Board’s
Regulation Y to require large BHCs to
submit capital plans to the Federal
Reserve annually among other things.
The public comment period for the
capital plan rule ended on August 5,
2011. In connection with submissions of
capital plans to the Federal Reserve,
BHCs would be required, pursuant to
proposed section 225.8(d)(3), to provide
certain data to the Federal Reserve. At
the time of the proposed rule, the
Federal Reserve did not have sufficient
detail about the data to be submitted by
the BHCs under proposed section
225.8(d)(3). For this reason, the Federal
Reserve put forth this proposal to collect
the data to support the ongoing CCAR
exercise, which would fulfill the data
collection contemplated under proposed
section 225.8(d)(3).
As proposed, the FR Y–14A will
collect annually BHCs’ quantitative

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projections of balance sheet assets and
liabilities, income, losses, and capital
across a range of macroeconomic
scenarios and qualitative information on
methodologies used to develop internal
projections of capital across scenarios.
One or more of the scenarios would
include a market shock that the BHCs
would assume when making trading and
counterparty loss projections. Also, as
proposed, the FR Y–14Q will collect
detailed data on BHCs’ various asset
classes and PPNR for the reporting
period, which would be used to support
supervisory stress test models and for
continuous monitoring efforts, on a
quarterly basis.1 These data will be used
to assess the capital adequacy of large
BHCs using forward-looking projections
of revenue and losses. In addition, these
data will be used to help inform the
Federal Reserve’s operational decision
making as the agency moves ahead with
implementing the capital plan
rulemaking.
Under section 165 of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act of 2010 (Dodd-Frank
Act), the Federal Reserve is required to
issue regulations relating to stress
testing (DFAST) for certain BHCs and
nonbank financial companies
supervised by the Board. It is expected
that any reporting requirements
associated with DFAST will be
incorporated into the new FR Y–14A/Q
information collection.
Current Actions: On August 31, 2011,
the Board granted initial approval of
this proposal. Notice of the proposed
action was published in the Federal
Register on September 7, 2011 (76 FR
55288); the comment period expired on
November 7, 2011.
General Summary of Public Comments
The Board received comments from
11 BHCs, 5 trade associations, and a
software vendor by letter, email, and
orally through outreach calls conducted
with prospective respondents. Most of
the comments received requested
clarification of the instructions for
information to be reported, or were
technical in nature. Response to these
comments will be addressed in the final
FR Y–14 reporting instructions.
Substantive comments received either
addressed the FR Y–14 collection in
general, or addressed specific proposed
reporting schedules. The final reporting
schedules and instructions that
incorporate the comments submitted by
the public and that were approved by
1 For some schedules, except as noted in the
discussion of comments, BHCs will be required to
submit both quarterly and annual schedules for
third quarter data.

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the Board have been provided to the
respondent BHCs. The substantive
comments are addressed below.
Detailed Discussion of Public
Comments and Federal Reserve
Responses
The following is a detailed discussion
of aspects of the proposed FR Y–14
collection for which the Federal Reserve
received one or more substantive
comments and the Federal Reserve’s
responses to the comments received.
A. General
In their combined comments, four
trade groups provided support for the
publication of the proposed data
schedules for comment and agreed with
the relevance of much of the data sought
to discern the capital distribution
process. However, they expressed
concerns with the substance of data
requested on several components of the
schedules and also sought further
clarification. Their substantive
comments are discussed below. Another
trade group expressed support for the
proposed data schedules as they apply
to the 19 respondent BHCs, both in
terms of the breadth and the depth of
the data requested. However, they
strongly cautioned against imposing
similar reporting requirements on
smaller community banks.
The Federal Reserve proposed that
respondents would submit a data
schedule for any portfolio that meets
certain materiality thresholds, which are
generally defined as those portfolios
with asset balances greater than $5
billion or asset balances relative to Tier
1 capital greater than 5 percent on
average for the four quarters preceding
the reporting quarter. A number of
commenters requested an increase of
these materiality thresholds and to
allow the BHCs to exclude certain
portfolios on a case-by-case basis.
In selecting the materiality thresholds,
the Federal Reserve weighed the benefit
of minimizing burden to BHCs against
obtaining comprehensive data, which
will allow the Federal Reserve to
consistently produce supervisory
estimates of loss for each BHC under a
given scenario. The Federal Reserve
believes that the proposed materiality
thresholds strike the right balance
between the two considerations and,
therefore, will implement the
materiality thresholds as proposed.
The proposal stated that the Federal
Reserve expects to make the final data
schedules available to respondents in
late November and to receive completed
FR Y–14Q data submissions by midDecember and FR Y–14A data
submissions by early January. Several

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commenters expressed concerns about
the short turnaround time to submit the
data once the data schedules are
finalized, particularly given the
granularity of the data requested.
The timeline for the initial data
submission largely reflects the timeline
for implementation of the proposed
capital plan rule. As stated in the initial
Federal Register notice and in the
proposed FR Y–14Q instructions, the
quarterly data will be used to produce
supervisory model estimates, which will
be a key input to the CCAR process. The
Federal Reserve weighed the benefit of
providing additional time to complete
the data submission against the need to
have sufficient time to validate the data
and produce supervisory model
estimates based on the submitted data in
order to provide timely responses to
BHCs to their Capital Plan. After further
consideration, the Federal Reserve will
implement the timeline as proposed.
However, in response to other
comments discussed below, the Federal
Reserve will implement several changes
to the data schedules to reduce burden.
Two commenters further suggested
that respondents should be exempt from
submitting the fourth quarter 2011 data
given a later filing deadline for the third
quarter data. The quarterly data
collection will help the Federal Reserve
enhance its supervisory models and
support ongoing supervisory activities.
The BHCs will be required to submit the
fourth quarter 2011 data 45 days after
the quarter ends or approximately two
months after the third quarter 2011 data
are due. The Federal Reserve will
implement a February 14, 2012, due
date for the fourth quarter FR Y–14Q as
proposed.
Several commenters requested
clarification on the reporting of
particular data items when the BHCs do
not maintain the data in their systems.
The same commenters suggested either
eliminating the particular data items or
allowing BHCs to leave the data items
blank. In response to other comments
discussed below, the Federal Reserve
will implement several changes to the
data schedules to reduce burden and to
ease the completion of the data
schedules.
A couple of commenters suggested a
staggered approach to data collection
where some data are collected for the
initial submission, but other data,
particularly historical data, are collected
in future quarters. They suggested
staggered due dates to lessen the burden
for the initial submission, given the
short turnaround time, while allowing
the Federal Reserve to collect data in the
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The data reported on the FR Y–14Q
schedules, which include, in some
cases, a one-time request for historical
data, are essential for supervisory
models and allow the Federal Reserve to
produce supervisory estimates
consistently across all BHCs. However,
in response to other comments
discussed below, the Federal Reserve
will implement several changes to the
data schedules to reduce burden.
Several commenters stated that there
is a significant overlap between certain
FR Y–14 data schedules and data
currently provided by large national
banks to their banking regulator. Other
commenters noted an overlap between
certain FR Y–14 data schedules (e.g.
Securities) and other existing Federal
Reserve supervisory data collections.
Upon implementation, BHCs will be
required to submit the FR Y–14
schedules. The Federal Reserve does not
believe that other data collections
overlap with the FR Y–14. Upon
implementation, the FR Y–14 data
schedules would replace the Federal
Reserve’s ongoing supervisory data
collection of a similar nature for all 19
BHCs.
Several commenters noted
inconsistencies in the reporting
requirements for loans classified as held
for sale and held for investment
accounted for under a fair value option.
Recognizing the inconsistencies noted
by the commenters, the Federal Reserve
will add new data items to the
Wholesale, Retail, and Summary
schedules to ensure the consistent
treatment of these assets across
portfolios. Recommended changes to the
affected schedules are described below.
One commenter noted that BHCs
should have the opportunity to review,
provide feedback, and amend the
market shocks, particularly as it applies
to the CCAR 2012 exercise. The Federal
Reserve does not agree that it would be
beneficial to engage the BHCs in an
iterative process to determine the
market shocks provided. BHCs will have
the opportunity to provide their own
shocks in the BHC specified scenarios.
The trade groups expressed concern
about the delay in the Federal Reserve’s
responses to technical and clarifying
questions and urged the Federal Reserve
to clearly set forth a robust and
transparent process for responding to
future inquiries in a timely manner. The
Federal Reserve will implement an
enhanced and streamlined process for
answering these types of questions in a
timely manner during the CCAR 2012
exercise.

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B. Trading Risk Schedule
One commenter suggested, citing a
potentially heavy reporting burden,
allowing BHCs to interpolate the data
for the Trading Risk schedule using the
data produced on a regular basis for
internal risk reports, where appropriate.
The Federal Reserve recognizes the
potential significant reporting burden
and will allow BHCs to interpolate the
data to map into the Trading Risk
schedule.
Several commenters noted structural
problems with the equities and
commodities spot/volatility grids in the
proposed schedule and urged the
Federal Reserve to make modifications
to the schedule. Specifically, they
argued that the range of shocks defining
the grid go beyond those that would
reasonably be expected given historical
volatility and that some of the spot/
volatility combinations were not
reflective of the historical relationship
between prices and volatility. The
Federal Reserve recognizes the
commenters’ concern and will adjust
the range of shocks to be consistent with
the range of historical volatility across
the term structure. Further, the Federal
Reserve will remove the reporting
requirements for the combinations of
spots and volatility points that would be
inconsistent with the historical
distribution of combinations.
Two commenters suggested that the
commingling of directional risk and
basis risk in the DV01 worksheet of the
Trading Risk schedule obfuscates the
interest rate exposure, and that it would
be more appropriate to distinguish
between the risks. The Federal Reserve
agrees with the comment, and will
separate the base curves and basis risk
in the tables so that they are clearly
differentiated.
Several commenters suggested
changes to the Trading Risk schedule,
including increasing granularity or
adding risk metrics in the Trading Risk
schedule. The Federal Reserve will not
make such changes at this time but will
consider those comments for potential
future revisions to the schedule.
One commenter suggested adding
business line materiality thresholds, in
addition to the BHC-level materiality
thresholds described above, because it is
operationally difficult to capture small
amounts of risk in business lines where
risk is not the main risk factor. The
commenter further proposed not
completing the exposures portion of the
worksheets for immaterial risk (e.g. less
than 5 percent of total for a given risk
exposure metric). The Federal Reserve
believes that the exposure should be
aggregated at a firm-level, not by

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business line, and therefore,
recommends using existing minimum
thresholds in the proposed worksheets.
The estimated aggregate exposure of
positions not included should be less
than the stated minimum threshold for
each table.
The initial Federal Register notice
indicated that the as-of date for the
Trading Risk schedule for the third
quarter, the annual CCR schedule, and
the Trading Risk worksheet in the
Summary schedule would be
communicated to the BHCs sometime in
the third or fourth quarter of each year.
Two commenters noted that the BHCs
should be permitted to submit data
using the BHCs regular weekly report as
long as this date falls during the week
of the official as-of date. Another
commenter suggested that the Federal
Reserve should shorten the time period
from which the as-of date would be
selected.
The Federal Reserve agrees with both
comments and will allow BHCs to
submit the trading data as of the most
recent date that corresponds to the
regular reporting cycle that falls prior to
the official trading as-of date. In
addition, the Federal Reserve will
communicate the as-of date in the fourth
quarter of each year.
C. CCR Schedule
Several commenters indicated that
there is significant burden associated
with the requirement to run multiple
scenarios and specifications to capture
Expected Exposure (EE) profiles (i.e.
running two separate specifications for
each of the unstressed EE profile,
stressed EE profile using the BHC shock
scenario, and stressed EE profile using
the Federal Reserve shock scenario) to
complete the CCR schedule. The Federal
Reserve acknowledges the burden
placed on BHCs of running all six
combinations of scenarios and
specifications and the resulting effects
on data quality. Therefore, the Federal
Reserve will remove two of the three
specified EE profiles under the Federal
Reserve specification, namely, the
unstressed EE profile and stressed EE
profile using the BHC shock scenario.
Unstressed EE profiles as well as EE
profiles using both the BHC and Federal
Reserve shock scenarios are required for
the BHC specification. In addition, the
stressed EE profile using the Federal
Reserve shock scenarios and the Federal
Reserve specification is also required.
One commenter stated that the
‘‘Trading IDR losses from securitized
products’’ data item should not include
losses from asset-backed securitized
(ABS) products which typically have
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obligations (such as residential
mortgage-backed securities (RMBS) or
commercial mortgage-backed securities
(CMBS)). The dominant part of the risk
in these products (when held in the
trading book and marked to market) is
general market risk, and is therefore
fully captured as mark-to market losses
in the trading book loss calculation. The
commenter noted that this view is also
reflected in the proposed rule on the
Capital Adequacy Guidelines for Bank
Holding Companies: Market Risk
Measure (Appendix E of 12 CFR part
225), which does not propose
calculating an incremental default risk
measure for these products.
The Federal Reserve disagrees with
the comment and believes that in order
to fully capture all default and
impairment risk for assets under a given
scenario, all securitization structure
types, including ABS, CMBS, and
RMBS, should be included in the
calculation. The underlying assets incur
additional default, which translates into
impairment to the bonds. The additional
incremental loss above and beyond the
market risk shock should be included in
the calculation.
One commenter noted that in a prior
CCR submission, the BHC provided
additional columns and rows of data in
order to better explain the portfolio. The
commenter asked if they could continue
to voluntarily provide this additional
explanatory data, and if so, whether the
FR Y–14 reporting format would allow
the submission of such additional data.
The Federal Reserve agrees and
appreciates BHCs providing any
additional data to give clarity to the
portfolio analysis. The Federal Reserve
will create a separate tab and add a
separate column on the existing
schedule for BHCs to provide additional
explanatory data at their option.
D. Retail Risk Schedule
One commenter suggested that nonpurpose securities-based lending should
be excluded from the Other Consumer
Loans worksheet, given that the risk
characteristics of this lending type are
markedly different from other loans
reported in the worksheet. In
referencing the relevant corresponding
data item collected on the FR Y–9C2, the
proposed worksheet indicates that
securities-based lending is included in
the definition of other consumer loans.
The Federal Reserve agrees with the
comment and will exclude non-purpose
2 The Consolidated Financial Statements for Bank
Holding Companies (FR Y–9C; OMB No. 7100–
0128).

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securities-based lending from the
definition of other consumer loans.
One commenter indicated that the
difference in segment breaks across
retail schedules presents a logistical
challenge, and recommended creating
consistent segmentations across
portfolios. The Federal Reserve carefully
weighed the need for consistency
against potential added burden and the
need to capture risk characteristics of
each portfolio in selecting segment
breaks, and will maintain the segment
breaks as proposed.
In response to the comments noted
above related to inconsistent treatment
of held for sale and held for investment
loans accounted for under the fair value
option, the Federal Reserve will replace
a segment variable, ‘‘SOP 03–3’’ with a
variable for ‘‘Accounting Treatment’’ to
the domestic mortgage schedule. The
segment will have an option for Held for
Investment—ASC 310–303 Purchase
Impaired, Held for Sale/Held for
Investment under a Fair Value Option or
Other.4
One commenter suggested that an
additional segment should be added in
the Small and Medium Enterprise
schedules to separate lines of credit
from loans. The Federal Reserve will not
make a change at this time as a full
assessment of the effect of such a change
on burden has not been completed.
However, the Federal Reserve will
consider this comment for potential
future updates to the schedules.
E. Wholesale Schedule (CRE data)
Several commenters indicated that
reporting data on cross-collateralized
loans as requested for the CRE
collection would present a significant
challenge. Some commenters suggested
that the due date for the initial
submission of CRE data should be
moved to December 31 in order to allow
the BHCs to make necessary changes.
The commenters also suggested that the
definition for the data item that captures
the loan numbers of cross collateralized
loans should be changed from ‘‘cross
collateralized and/or cross defaulted’’ to
‘‘cross collateralized and cross
defaulted.’’ Finally, they commented
that loans that have less than $1 million
committed should be excluded for the
purpose of cross-collateralization, given
its statistical irrelevance and the
significant operational challenges.
The Federal Reserve will retain the
initial CRE submission deadline of
December 15, consistent with the
3 ASC 310–30 is the new FASB codification for
SOP 03–3.
4 Other includes all mortgage loans that are not
reported under fair value accounting or under ASC
310–30.

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deadline for all other quarterly
schedules. However, in response to
comments, the Federal Reserve will
revise the CRE collection so that BHCs
will only report the loan numbers of
other cross collateralized loans, not
other cross defaulted loans. In addition,
for loans less than $1 million that are
cross collateralized with loans that have
commitments greater than $1 million,
the Federal Reserve will require BHCs to
report only three data items—Loan
Number, Outstanding Balance, and
Committed Balance. All other data items
will be optional. However, as proposed,
BHCs will report all loans greater than
$1 million based on committed balance.
One commenter suggested that by not
capturing non-CRE collateral, the data
resulting from the proposed CRE
schedule would overstate loan-to-value
ratios. The Federal Reserve agrees with
the comment, and will add an optional
data item for BHCs to report cash and
marketable securities where a BHC has
a first perfected security interest.
In response to the comments noted
above related to inconsistent treatment
of held for sale and held for investment
loans accounted for under a fair value
option, the Federal Reserve will add
mandatory data items to capture the
reserve applied to the loan subject to
ASC 310–10, the ASC 310–30 related
adjustment for debt securities acquired
in a transfer and the fair value
adjustment on loans classified as held
for sale and held for investment at fair
value.

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F. Wholesale Schedule (Corporate Loan
Data)
Many commenters expressed a
concern that the significant amount of
detail (44 data items) proposed for
collection of corporate loan facilities in
the Corporate Loan schedule will
represent a significant burden for BHCs.
In response to these comments, the
Federal Reserve will modify the
Corporate Loan collection to implement
a $1 million threshold for certain
‘‘other’’ loan categories and to exclude
unplanned overdraft and loans for
purchasing and carrying securities
(secured or unsecured).
In response to the comments noted
above related to inconsistent treatment
of held for sale and held for investment
loans accounted for under a fair value
option, the Federal Reserve will replace
the proposed mandatory field ‘‘Other
Than Temporary Impairment (OTTI)’’
which captured only credit impairment
charges with a mandatory data item,
‘‘Fair Value Adjustments (FVA)’’ to
capture any fair value adjustments on
held for sale and held for investment

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loans accounted for under a fair value
option.
G. PPNR Schedule
Several commenters expressed
concerns about the level of granularity
requested in the PPNR schedule and
their ability to provide the data within
the timeframe for the initial submission.
The commenters expressed concerns
about the PPNR Submission/Projections
worksheet, particularly related to the
section on net interest income by
business segment, noting that historical
and projected periods would be
challenging to map to existing internal
management reporting systems.
Commenters noted that any estimates
would have significant data quality
concerns. In addition, they noted that
data on the PPNR Metrics worksheet
would be difficult to provide on a
forward looking and historical basis.
The commenters also expressed
concerns about their ability to provide
data as requested on the Net Interest
Income (NII) worksheet, and requested
that BHCs should have an option to
submit either the PPNR Submission
worksheet or the NII worksheet, not
both. Further, several commenters
suggested that materiality thresholds
should be considered for data items
collected in the PPNR schedule as they
are for balance sheet items.
In response to these comments, the
Federal Reserve will implement several
revisions to the PPNR worksheets. First,
the instructions will be modified to
underscore that BHCs for which
deposits comprise less than one third of
total liabilities for any reported period
need only complete the PPNR
Submission/Projections worksheets and
the related portion of the PPNR Metrics
worksheets. Such BHCs would
designate the PPNR Submission/
Projections worksheets as ‘‘Primary Net
Interest Income’’ and the NII worksheet
as ‘‘Not Applicable.’’ Second, all other
BHCs will specify either the PPNR
Submission/Projections or the NII
worksheet as ‘‘Primary Net Interest
Income’’ and the other as
‘‘Supplementary Net Interest Income’’
through a pull down menu at the top of
each worksheet. Note that this
designation will refer only to the NII
portion of the worksheets; all other
items on the PPNR Submission
worksheet and the related portion of the
PPNR Metrics worksheet must be
completed.
The schedule designated as ‘‘Primary
Net Interest Income’’ and the related
portions of the PPNR Metrics worksheet
will be the main sources of analysis and
assessment by the Federal Reserve.
Therefore, the Federal Reserve will

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require that BHCs continue to complete
all data items in the primary schedule
and the related portion of the PPNR
Metrics worksheet. The Federal Reserve
will require that BHCs also provide
additional information in the supporting
documentation for the PPNR schedule,
including the discussion of consistency
of a given schedule with the BHC’s
external reporting and internal reporting
and forecasting; a description of
broadly-defined types of business
models they currently use (e.g. Asset/
Liability, Relationship, Business
Product/Services/Activity and others);
high-level descriptions of motivations
for their choices of models for
conducting business, reporting
(internal/external) and forecasting profit
and loss result; benefits/challenges
associated with those models; and
methodologies employed. For purposes
of the FR Y–14 schedules, once a BHC
makes a ‘‘primary’’ designation, it will
continue to treat a given schedule as
‘‘primary’’ for all historical and forecast
periods.
The ‘‘Supplementary Net Interest
Income’’ worksheet and the related
portion of the PPNR Metrics worksheet
will be used as supplementary sources
of analysis and assessment by the
Federal Reserve. BHCs will provide the
data for the ‘‘supplementary’’ worksheet
on a ‘‘best efforts’’ basis and complete
this worksheet to the fullest extent
possible. It is expected that all data
items identified with a number (e.g. 6),
but not a number and letter (e.g. 6A)
will be completed. In the supporting
documentation, the BHCs will provide
information on which data items or
areas were particularly challenging to
complete and reasons for the challenge.
Third, the Federal Reserve will add a
materiality threshold for the business
segments within the PPNR
Submissions/Projections worksheets.
For each of the 10 major segments,
BHCs will be required to report the
PPNR Submission/Projections and
PPNR Actual/Projection data only if
revenues for that segment relative to
total revenues exceeded 5 percent in
any of the last four quarters preceding
the first projection period requested on
the PPNR schedule. BHCs will report all
immaterial business segment revenue in
a separate catch-all data item on the
PPNR Submission/Projections
worksheet and report no data for those
immaterial segments on the PPNR
Metrics worksheet. Additionally, if the
total immaterial business segment
revenue relative to total revenue is
greater than 10 percent in any of the last
four quarters preceding the first
projection period requested on the
PPNR schedule, the BHCs must report

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Federal Register / Vol. 76, No. 229 / Tuesday, November 29, 2011 / Notices
actuals/projections for the largest
business segment among the immaterial
business segments for all quarters in the
PPNR Submissions/Projections and
PPNR Metrics worksheets. Note that for
purposes of the PPNR schedule, revenue
is defined as the sum of NII and noninterest income adjusted for selected
exclusions.
Finally, the Federal Reserve will add
materiality thresholds for international
breakouts by region based on whether
international revenue exceeded 5
percent of total revenue for a given BHC
in any of the last four quarters preceding
the first projection period requested on
the PPNR schedule. Changes
implemented for the PPNR schedule
will also apply to the relevant PPNR
worksheets in the Summary schedule.

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H. Regulatory Capital Instruments and
Basel III Schedules
Two commenters raised concerns
about potential duplicative data
requests related to Basel III with a
potential overlap with the recent Basel
Committee’s Basel III Implementation
Monitoring Quantitative Impact Study
(QIS) data collection request. There are
key differences between FR Y–14 Basel
III annual and quarterly schedules and
the template used for the QIS (the most
recent submission of which was due in
October 2011). Whereas the Basel
Committee intends to collect actual
point-in-time data twice a year as of the
second and fourth quarters, the annual
FR Y–14 Basel III schedule will collect
each year actual balances as of the third
quarter in addition to forecasted fourth
quarter balances for all future periods
through year-end 2016. In addition, the
Basel III schedule will collect data and
supplemental information on material
planned actions that the BHC intends to
pursue over that same forecasted period
to address the impact of Basel III on the
BHC’s capital, risk-weighted assets, and/
or leverage exposures.
The quarterly Basel III schedule will
be used to conduct quarterly monitoring
of each BHC’s progress against the
forecasted data provided on the annual
Basel III schedule. The data for the
quarterly schedule will not be as
granular as the data collected in the
annual schedule, and will only be
collected in quarters in which the
annual schedule is not collected.5
Specifically, the quarterly schedule
collects quarterly point-in-time total
balances only for Tier 1 Common, Tier
1 Capital, Risk-weighted Assets and
5 Likewise,

the data for the Regulatory Capital
Instruments quarterly schedule will only be
collected in quarters in which the annual schedule
is not collected.

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Leverage Exposures, including a few
select components of those balances.
One commenter requested the
collection of additional information on
the annual and quarterly Basel III
schedules. The commenter stated that
fully understanding the Basel treatment
for regulatory capital instruments is
crucial in order to assess the quality of
each instrument within a BHC’s capital
inventory (and the totality of the capital
instrument inventory), under the Basel
I and Basel III capital frameworks. Since
Basel treatment is dependent on
instrument-specific characteristics, they
suggested modification of the annual
and quarterly worksheets such that the
BHC may specify the relevant Basel
treatment, especially in cases where no
CUSIP 6 number or other internal
identification number is provided.
Specifically they suggested adding a
column for Basel III treatment to the
Redemptions Q3 20YY worksheet and
two columns for Basel I and Basel III
treatments, respectively, to the
Redemptions 4QYY–4QZZ worksheet in
the FR Y–14A schedule. The commenter
also suggested adding two columns for
Basel I and Basel III Treatments,
respectively, to the Planned Action
Detail from the CCAR Submission
section and also to the Planned
Redemption Details from the CCAR
Submission and/or Report Missing
Planned Redemption section of the
Confirm Proposed Redemption
worksheet. The commenter stated that
they believe these data are necessary to
analyze the specific instrument that the
BHC has redeemed or plans to redeem
(depending on whether the worksheet
collects actual or projected data).
In addition, in order to fully analyze
and assess the composition of Tier 1 and
Tier 2 capital, the commenter
recommended adding a column titled
‘‘Capital amount redeemed’’ (between
proposed columns R and S) to the
Confirm Proposed Redemptions
worksheet of the quarterly Regulatory
Capital Instruments schedule. The
commenter believes this change is
necessary in order to collect information
on the amount of the instrument
actually redeemed. Although column L
collects information on the amount
planned to be redeemed, this additional
field is necessary in the event the actual
amount executed differs from the
amount that was originally planned.
The Federal Reserve agrees with these
comments, and will implement the
suggested changes to the Regulatory
6 CUSIP refers to the Committee on Uniform
Security Identification Procedures. This 9-character
alphanumeric code identifies any North American
security for the purposes of facilitating clearing and
settlement of trades.

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73639

Capital Instruments and Basel III annual
and quarterly schedules.
I. Summary Schedule
One commenter requested the
addition of new data items related to
repurchase reserve/liability for
representations and warranties to the
Income Statement worksheet in the
Summary schedule. Specifically they
requested the collection of the following
data items (4 reported data items and 1
data item calculated by an imbedded
formula):
• New data item 59, ‘‘Reserve, prior
quarter’’
• New data item 60, ‘‘Provisions
during the quarter’’
• New data item 61, ‘‘Net charges
during the quarter’’
• New data item 62, ‘‘Reserve, current
quarter’’ (This data item would be
calculated and not reported by the BHC:
sum of items 59 and 60 less item 61.)
• New data item 63, ‘‘Line item of
PPNR Submission/Projections
worksheet where repurchase provision
is recorded’’
The commenter noted that these data
items would allow supervisors to view
the evolution of BHCs’ projections of
repurchase reserve/liability for
representations and warranties.
The Federal Reserve recognizes that
while BHCs have taken steps to reduce
the risk associated with representations
and warranties, this issue has not been
fully resolved since CCAR 2011. The
Federal Reserve agrees with these
comments and will implement the
suggested changes to the Income
Statement worksheet in the Summary
schedule. Note that these data items
were also reported by BHCs in their
CCAR 2011 submission and do not
duplicate other data reported on this or
any other information collection.
One commenter noted that because
information on settlements related to
representation and warranty breaches in
both the Retail Repurchase and
Historical Operational Risk worksheets
of the Summary schedule is being
collected that this may result in double
counting related exposures. The Federal
Reserve agrees with this comment and
will clarify the instructions for the
Summary schedule to ensure the
representation and warranty breaches
captured in the Retail Repurchase
worksheet are not captured in the
Historical Operational Risk worksheet.
One commenter requested
clarification of the difference between
the C&I Small Business (Graded) and
Small Business (Scored/Delinquency
Managed) data items on the Income
Statement and Balance Sheet
worksheets of the Summary schedule.

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The Federal Reserve will better align
these worksheets with other regulatory
report loan classification schemes,
thereby ensuring no overlap in reporting
requirements across FR Y–14 schedules.
Two commenters requested a change
to the allowance for loan and lease
losses (ALLL) referenced in the Income
Statement worksheet of the Summary
schedule to an allowance for credit loss
(ACL) reference, as that would be in line
with their practice of provisioning for
ALLL and for an allowance for
unfunded credit commitments. In order
to provide greater distinction between
the ALLL and that for off-balance sheet
credit exposures, the Federal Reserve
will add a memorandum item to the
Balance Sheet worksheet and adjust the
Income Statement worksheet to capture
a breakout of this component. These
adjustments will allow BHCs to provide
both pieces of the total allowance.
One commenter noted that, in
addition to net charge-offs, they
provision for neutral items and that the
allowance roll-forward doesn’t allow the
BHC to record these provision-neutral
impacts. The Federal Reserve agrees
with this comment and will add a data
item to the ALLL section to capture nonprovision or charge-off related changes
to the ALLL, making the section more
consistent with Schedule HI–B, Part II
of the FR Y–9C.
One commenter raised concerns about
the legal implications of disclosing
estimated litigation losses on a granular
basis on the Operations Risk worksheet
in the Summary schedule. The Federal
Reserve notes that a number of data
items collected on the FR Y–14A and Q,
including respondents’ projections, may
be considered trade secrets or
confidential supervisory information.
As such, respondents’ estimates of
litigation losses are expected to remain
confidential.7
In response to the comments noted
above related to the inconsistent
treatment of held for sale and held for
investment loans accounted for under a
fair value option, the Federal Reserve
will add a Fair Value Loan worksheet,
and a change to the income statement
instructions to capture the marks taken
on fair value loans. The Fair Value Loan
worksheet will capture the aggregate fair
values and unpaid principal balances of
loans classified as held for sale or held
for investment measured at fair value in
the following asset classes: first lien
7 The confidentiality of information submitted to
the Board under the data schedules and related
materials shall be determined in accordance with
applicable exemptions under the Freedom of
Information Act (5 U.S.C. 552) and the Board’s
Rules Regarding Availability of Information (12 CFR
part 261).

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mortgage, home equity line of credit,
credit card, auto loans and leases,
student loans, small business loans, and
other consumer loans. In addition, the
instructions for the Summary schedule
will be clarified to indicate that any
losses related to loans held for sale or
held for investment with the fair value
option should be reported on the
Income Statement worksheet of the
Summary schedule under ‘‘Other
Losses.’’
Finally, the Federal Reserve will
remove data items related to mortgage
servicing rights (MSRs) from the
Trading worksheet of the Summary
schedule to further reduce burden on
respondents. All MSR-related earnings,
including those captured in the trading
book, will be reported on the PPNR
worksheet of the Summary schedule.
Board of Governors of the Federal Reserve
System.
November 21, 2011.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. 2011–30666 Filed 11–28–11; 8:45 am]
BILLING CODE 6210–01–P

FEDERAL TRADE COMMISSION
Agency Information Collection
Activities; Request for OMB Review;
Comment Request
Federal Trade Commission
(FTC or Commission).
ACTION: Notice and request for comment.
AGENCY:

The information collection
requirements described below are being
submitted to the Office of Management
and Budget (OMB) for review, as
required by the Paperwork Reduction
Act (PRA). The FTC is seeking public
comments on proposed information
requests to beverage alcohol advertisers
that will seek information concerning,
among other things, sales and marketing
expenditures, compliance with
voluntary advertising placement
provisions, digital marketing practices
and data collection, and lesser-known
media programs.
DATES: Comments must be received on
or before December 29, 2011.
ADDRESSES: Interested parties may
submit written comments by following
the instructions in the ‘‘Request for
Comments’’ part of the SUPPLEMENTARY
INFORMATION section below.
FOR FURTHER INFORMATION CONTACT:
Requests for copies of the collection of
information and supporting
documentation should be addressed to
Janet M. Evans, Attorney, 202–326–
2125, or Carolyn L. Hann, Attorney,
SUMMARY:

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202–326–2745, Division of Advertising
Practices, Bureau of Consumer
Protection, Federal Trade Commission.
SUPPLEMENTARY INFORMATION: The FTC
has previously published reports on
voluntary advertising self-regulation by
the alcohol industry in September 1999,
September 2003, and June 2008.1 The
data contained in the reports were based
on information submitted to the
Commission, pursuant to compulsory
process, by U.S. beverage alcohol
advertisers. The FTC has authority to
compel production of this information
from advertisers under Section 6 of the
Federal Trade Commission Act (FTC
Act), 15 U.S.C. 46. The Commission
believes that it is in the public interest
to: (1) Collect updated data from alcohol
advertisers on sales and marketing
expenditures, compliance with
voluntary advertising placement
provisions, digital marketing practices
and data collection, and lesser-known
media programs; and (2) publish a
report on the data obtained.
Under the PRA, 44 U.S.C. 3501–3521,
federal agencies must obtain approval
from OMB for each collection of
information they conduct or sponsor.
‘‘Collection of information’’ means
agency requests or requirements that
members of the public submit reports,
keep records, or provide information to
a third party. 44 U.S.C. 3502(3), 5 CFR
1320.3(c).
On February 25, 2011, the
Commission sought comment on the
information collection requirements
associated with this proposal. 76 FR
10596. (60-Day Notice). As required by
OMB regulations, 5 CFR part 1320, the
FTC is providing this second
opportunity for public comment while
seeking OMB approval for the collection
of information.
A. Public Comments/Consultation
Outside the Agency
The FTC received 71 comments in
response to the 60-Day Notice. Of these,
four comments favored and
substantively addressed the proposed
data collection. These comments were
submitted by: (1) State Attorneys
General representing 23 states and one
territory 2 (State AG); (2) the Center for
1 See FTC, Self-Regulation in the Alcohol Industry
(Sept. 1999), available at http://www.ftc.gov/
reports/alcohol/alcoholreport.shtm; FTC, Alcohol
Marketing and Advertising (Sept. 2003), available at
http://www.ftc.gov/os/2003/09/alcohol08report.pdf;
and FTC, Self-Regulation in the Alcohol Industry
(June 2008) (‘‘2008 FTC Alcohol Report’’), available
at http://www.ftc.gov/os/2008/06/
080626alcoholreport.pdf.
2 The State AGs represented: Arizona,
Connecticut, Delaware, Guam, Hawaii, Idaho,
Illinois, Iowa, Maryland, Massachusetts,
Mississippi, Nevada, New Hampshire, New Mexico,

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