Notice2021-19298
Agency Information Collection Activities: Comment Request
Primary source
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Published
September 8, 2021
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, with revision, the Financial Statements for Holding Companies (FR Y-9 reports; OMB Control Number 7100-0128).
Full Text
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<title>Federal Register, Volume 86 Issue 171 (Wednesday, September 8, 2021)</title>
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[Federal Register Volume 86, Number 171 (Wednesday, September 8, 2021)]
[Notices]
[Pages 50354-50357]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-19298]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Comment Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
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SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, with revision,
the Financial Statements for Holding Companies (FR Y-9 reports; OMB
Control Number 7100-0128).
DATES: Comments must be submitted on or before November 8, 2021.
ADDRESSES: You may submit comments, identified by FR Y-9, by any of the
following methods:
<bullet> Agency Website: <a href="https://www.federalreserve.gov/">https://www.federalreserve.gov/</a>. Follow
the instructions for submitting comments at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a>.
<bullet> Email: <a href="/cdn-cgi/l/email-protection#aad8cfcdd984c9c5c7c7cfc4ded9eacccfcecfd8cbc6d8cfd9cfd8dccf84cdc5dc"><span class="__cf_email__" data-cfemail="daa8bfbda9f4b9b5b7b7bfb4aea99abcbfbebfa8bbb6a8bfa9bfa8acbff4bdb5ac">[email protected]</span></a>. Include the OMB
number in the subject line of the message.
<bullet> Fax: (202) 452-3819 or (202) 452-3102.
<bullet> Mail: Ann E. Misback, 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 website at
<a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any confidential
business information, identifying information, or contact information.
Public comments may also be viewed electronically or in paper in Room
146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m.
and 5:00 p.m. on weekdays. For security reasons, the Board requires
that visitors make an appointment to inspect comments. You may do so by
calling (202) 452-3684. Upon arrival, visitors will be required to
present valid government-issued photo identification and to submit to
security screening in order to inspect and photocopy comments.
Additionally, commenters may send a copy of their comments to the
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Room 10235, 725
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551, (202)
452-3829.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. In exercising this delegated authority, the
Board is directed to take every reasonable step to solicit comment. In
determining whether to approve a collection of information, the Board
will consider all comments received from the public and other agencies.
During the comment period for this proposal, a copy of the proposed
PRA OMB submission, including the draft reporting form and
instructions, supporting statement, and other documentation, will be
made available on the Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested
from the agency clearance officer, whose name appears above. Final
versions of these documents will be made available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, if approved.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance,
[[Page 50355]]
and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend for Three Years, With
Revision, the Following Information Collection
Report title: Financial Statements for Holding Companies.
Agency form number: FR Y-9C, FR Y-9LP, FR Y-9SP, FR Y-9ES, and FR
Y-9CS.
OMB control number: 7100-0128.
Frequency: Quarterly, semiannually, and annually.
Respondents: Bank holding companies (BHCs), savings and loan
holding companies (SLHCs), securities holding companies, and U.S.
intermediate holding companies (IHCs) (collectively, holding
companies).\1\
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\1\ The following depository institution holding companies are
exempt: (1) A unitary savings and loan holding company with
primarily commercial assets that meets the requirements of section
10(c)(9)(c) of the Home Owners' Loan Act, for which thrifts make up
less than 5 percent of its consolidated assets; and (2) a SLHC that
primarily holds insurance-related assets and does not otherwise
submit financial reports with the Securities and Exchange Commission
pursuant to sections 13 or 15(d) of the Securities Exchange Act of
1934.
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Estimated number of respondents:
Reporting
FR Y-9C (non-advanced approaches holding companies with less than
$5 billion in total assets): 119; FR Y-9C (non-advanced approaches
holding companies with $5 billion or more in total assets): 221; FR Y-
9C (advanced approaches holding companies): 9; FR Y-9LP: 412; FR Y-9SP:
3,708; FR Y-9ES: 78; FR Y-9CS: 236.
Recordkeeping
FR Y-9C: 349; FR Y-9LP: 412; FR Y-9SP: 3,708; FR Y-9ES: 78; FR Y-
9CS: 236.
Estimated average hours per response:
Reporting
FR Y-9C (non-advanced approaches holding companies with less than
$5 billion in total assets): 35.74; FR Y-9C (non-advanced approaches
holding companies with $5 billion or more in total assets): 44.94; FR
Y-9C (advanced approaches holding companies): 50.16; FR Y-9LP: 5.27; FR
Y-9SP: 5.45; FR Y-9ES: 0.50; FR Y-9CS: 0.50.
Recordkeeping
FR Y-9C: 1; FR Y-9LP: 1; FR Y-9SP: 0.50; FR Y-9ES: 0.50; FR Y-9CS:
0.50.
Estimated annual burden hours:
Reporting
FR Y-9C (non-advanced approaches holding companies with less than
$5 billion in total assets): 17,012; FR Y-9C (non-advanced approaches
holding companies with $5 billion or more in total assets): 39,727; FR
Y-9C (advanced approaches holding companies): 1,806; FR Y-9LP: 8,685;
FR Y-9SP: 40,417; FR Y-9ES: 39; FR Y-9CS: 472.
Recordkeeping
FR Y-9C: 1,396; FR Y-9LP: 1,648; FR Y-9SP: 3,708; FR Y-9ES: 39; FR
Y-9CS: 472.
General description of report: The FR Y-9 family of reporting forms
continues to be the primary source of financial data on holding
companies that examiners rely on in the intervals between on-site
inspections. The Board requires holding companies to provide
standardized financial statements to fulfill the Board's statutory
obligation to supervise these organizations. Financial data from these
reporting forms are used to detect emerging financial problems, to
review performance and conduct pre-inspection analysis, to monitor and
evaluate capital adequacy, to evaluate holding company mergers and
acquisitions, and to analyze a holding company's overall financial
condition to ensure the safety and soundness of its operations. The FR
Y-9C, FR Y-9LP, and FR Y-9SP serve as standardized financial statements
for the holding companies. The FR Y-9ES is a financial statement for
holding companies that are Employee Stock Ownership Plans. The Board
uses the voluntary FR Y-9CS (a free-form supplement) to collect
additional information deemed to be critical and needed in an expedited
manner. Holding companies file the FR Y-9C on a quarterly basis, the FR
Y-9LP quarterly, the FR Y-9SP semiannually, the FR Y-9ES annually, and
the FR Y-9CS on a schedule that is determined when this supplement is
used.
Proposed revisions:
Chief Executive Officer Contact Information
The Federal Reserve periodically needs to communicate directly with
the CEOs of holding companies via email; however, the Federal Reserve
currently does not have a complete list of CEO email addresses. To
streamline communications to CEOs, the Board proposes to collect the
name, email address, and phone number of the holding company's CEO on
the FR Y-9C and FR Y-9SP reports. CEO communications would be initiated
or approved by the Board's senior management and would involve topics
such as new initiatives and policy notifications.
The proposed CEO contact information would be for the confidential
use of the Federal Reserve and would not be released to the public. The
Board intends for CEO email addresses and phone numbers to be used
judiciously and only for significant matters requiring CEO-level
attention. Having a comprehensive database of holding companies' CEO
contact information, including email addresses and phone numbers, would
allow the Federal Reserve to have current information to communicate
important and time-sensitive information to CEOs. This information is
proposed to be collected quarterly on the FR Y-9C report for
consistency with the Call Report and semiannually on the FR Y-9SP
report. The information would be collected from top tier holding
companies only.
Full-Time Employees
Consistent with the Interagency Policy Statement Establishing Joint
Standards for Assessing the Diversity Policies of Entities Regulated by
the Agencies,\2\ which was issued as required by section 342 of the
Dodd-Frank Wall Street Reform and Consumer Protection Act, the Board's
Office of Minority and Women Inclusion (OMWI) conducts an annual survey
of entities the Board regulates. In this voluntary survey, the Board
collects a self-assessment report on diversity policies and practices
from entities with 100 or more full-time equivalent employees.
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\2\ See 80 FR 33016 (June 10, 2015). Agencies include the Office
of the Comptroller of the Currency (OCC); Board; Federal Deposit
Insurance Corporation (FDIC); National Credit Union Administration
(NCUA); Consumer Financial Protection Bureau (CFPB); and Securities
and Exchange Commission (SEC).
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Currently, to identify those entities that should be invited to
participate in the survey, the Board's OMWI relies on the FR Y-9C and
Call Report, which collect data on the number of full-time equivalent
employees for the consolidated entity. Because these data are not
collected on the parent-only FR Y-9SP or the nonbank subsidiary
reports,\3\ the Board cannot accurately identify the FR Y-9SP reporters
with 100 or more full-time equivalent employees on a consolidated basis
that
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should be invited to participate in this survey.
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\3\ The nonbank subsidiary reports include the Financial
Statements of Foreign Subsidiaries of U.S. Banking Organizations (FR
2314/2314S), Financial Statements of U.S. Nonbank Subsidiaries held
by Foreign Banking Organizations (FR Y-7N/7NS/7Q), and Financial
Statements of U.S. Nonbank Subsidiaries of U.S. Holding Companies
(FR Y-11/11S).
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Therefore, the Board proposes to add a new check box, Memorandum
item 5, ``Does your holding company have 100 or more full-time
equivalent employees on a consolidated basis?'' to Schedule SI, Income
Statement of the FR Y-9SP report. The addition of this item on the FR
Y-9SP would enable OMWI to have a comprehensive list of the
institutions with full-time equivalent employees of 100 or more on a
consolidated basis. The proposed data item would only be collected from
top tier holding companies and would be collected only on the report
for the December 31 as-of date. Given that the additional information
to be reported should be easily obtainable, the Board expects a small
burden increase for reporters.
Brokered Deposits Glossary Entries
The FR Y-9C instructions Glossary defines ``Brokered Deposits'' and
``Brokered Retail Deposits'' consistent with section 29(g) of the
Federal Deposit Insurance Act (FDI Act) and the FDIC's brokered
deposits regulation.\4\ Under these definitions, the meaning of the
term ``brokered deposit'' references the defined term ``deposit
broker.'' On January 22, 2021, the FDIC published in the Federal
Register a final rule to amend its brokered deposits regulation
(brokered deposits final rule),\5\ which established a new framework
for analyzing certain provisions of the ``deposit broker'' definition
in the FDI Act.\6\ The brokered deposits final rule clarified the term
``deposit broker'' and the analysis of whether entities are engaged in
the business of placing, or facilitating the placement of, deposits.
The revised FDIC regulation describes exceptions to the definition of
``deposit broker'' including when the primary purpose of an agent's or
nominee's business relationship with its customers is not the placement
of funds with depository institutions (primary purpose exception). The
brokered deposits final rule introduced in the FDIC's regulation a list
of business relationships that are designated as meeting the primary
purpose exception. In February 2021, the Federal Financial Institutions
Examination Council proposed changes to the Call Reports forms and
instructions consistent with the brokered deposits final rule and
proposed conforming clarifications in the Call Reports Glossary.
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\4\ 12 CFR 337.6
\5\ 86 FR 6742 (Jan. 22, 2021).
\6\ 12 U.S.C. 1831f(g).
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To provide clarity for respondents, the Board is proposing to
revise the FR Y-9C Glossary instructions to incorporate changes under
the brokered deposits final rule consistent with the proposed Call
Report revisions. Specifically, the Board proposes to reorder the
content of the Glossary entries for ``Brokered Deposits'' and
``Brokered Retail Deposits,'' to incorporate the revised content of the
FDIC regulation, and to update reference to the FDIC insurance limit of
$250,000. The Board is not proposing otherwise to revise the FR Y-9C
form or instructions in respect to brokered deposits.
SA-CCR Check Box
On January 24, 2020, the agencies issued a final rule \7\ (SA-CCR
final rule) that amends the regulatory capital rule to implement a new
approach for calculating the exposure amount for derivatives contracts
for purposes of calculating the total risk-weighted assets (RWA), which
is called SA-CCR. The final rule also incorporates SA-CCR into the
determination of the exposure amounts of derivatives for total leverage
exposure under the supplementary leverage ratio and the cleared
transaction framework under the capital rule.
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\7\ See 85 FR 4362 (January 24, 2021).
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Holding companies that are not advanced approaches banking
organizations \8\ may elect to use SA-CCR to calculate standardized
total RWA by notifying the Board.\9\ Advanced approaches holding
companies are required to use SA-CCR to calculate standardized total
RWA starting on January 1, 2022. Advanced approaches holding companies
may adopt SA-CCR prior to January 1, 2022, but must notify the Board of
their early adoption.\10\
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\8\ See 12 CFR 217.2 (defining ``Advanced approaches Board-
regulated institution'').
\9\ 12 CFR 217.34(a)(1)(ii).
\10\ 12 CRF 217.300(h).
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The Board proposes to revise the FR Y-9C forms and instructions by
adding new line item 31.b, ``Standardized Approach for Counterparty
Credit Risk opt-in election.'' The Board is proposing to add this new
item to identify holding companies that have chosen to early adopt or
voluntarily elect SA-CCR, which would allow for enhanced comparability
of the reported derivative data and for better supervision of the
implementation of the framework at these holding companies. Due to the
inherent complexity of adopting SA-CCR, this identification is
particularly important for non-advanced approaches institutions that
choose to voluntarily adopt SA-CCR.
A non-advanced approaches holding company that adopts SA-CCR would
enter ``1'' for ``Yes'' in line item 31.b. All other non-advanced
approaches holding companies would leave this item blank. If a non-
advanced approaches holding company has elected to use SA-CCR, the
holding company may change its election only with prior approval of the
Board.\11\ An advanced approaches holding company that elects to early
adopt SA-CCR prior to the January 1, 2022, mandatory compliance date
would enter ``1'' for ``Yes'' in line item 31.b. After January 1, 2022,
an advanced approaches holding company would leave this item blank.
This proposed reporting change would take effect starting with the
December 31, 2021, FR Y-9C report. This item would no longer be
applicable to advanced approaches holding companies starting with the
March 31, 2022, report date. There would be no material change in
burden to the FR Y-9C report related to this revision.
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\11\ 12 CFR 217.34(a)(1)(ii).
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Legal authorization and confidentiality: The reporting and
recordkeeping requirements associated with the Y-9 series of reports
are authorized for BHCs pursuant to section 5 of the Bank Holding
Company Act (BHC Act); \12\ for SLHCs pursuant to section 10(b)(2) and
(3) of the Home Owners' Loan Act; \13\ for IHCs pursuant to section 5
of the BHC Act, as well as pursuant to sections 102(a)(1) and 165 of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-
Frank Act); \14\ and for securities holding companies pursuant to
section 618 of the Dodd-Frank Act.\15\
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\12\ 12 U.S.C. 1844.
\13\ 12 U.S.C. 1467a(b)(2) and (3).
\14\ 12 U.S.C. 5311(a)(1) and 5365. Section 165(b)(2) of Title I
of the Dodd-Frank Act, 12 U.S.C. 5365(b)(2), refers to ``foreign-
based bank holding company.'' Section 102(a)(1) of the Dodd-Frank
Act, 12 U.S.C. 5311(a)(1), defines ``bank holding company'' for
purposes of Title I of the Dodd-Frank Act to include foreign banking
organizations that are treated as bank holding companies under
section 8(a) of the International Banking Act, 12 U.S.C. 3106(a).
The Board has required, pursuant to section 165(b)(1)(B)(iv) of the
Dodd-Frank Act, 12 U.S.C. 5365(b)(1)(B)(iv), certain foreign banking
organizations subject to section 165 of the Dodd-Frank Act to form
U.S. intermediate holding companies. Accordingly, the parent
foreign-based organization of a U.S. IHC is treated as a BHC for
purposes of the BHC Act and section 165 of the Dodd-Frank Act.
Because section 5(c) of the BHC Act authorizes the Board to require
reports from subsidiaries of BHCs, section 5(c) provides additional
authority to require U.S. IHCs to report the information contained
in the FR Y-9 series of reports.
\15\ 12 U.S.C. 1850a(c)(1)(A).
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Except for the FR Y-9CS report, which is collected on a voluntary
basis, the obligation to submit the remaining reports in the FR Y-9
series of reports and to comply with the recordkeeping requirements set
forth in the respective
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instructions to each of the other reports is mandatory.
Certain information collected on the FR Y-9C and FR Y-9SP Reports
is kept confidential by the Board. The following items may be kept
confidential under exemption 4 of the Freedom of Information Act (FOIA)
because these data items reflect commercial and financial information
that is both customarily and actually treated as private by the
respondent: \16\
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\16\ 12 U.S.C. 552(b)(4).
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<bullet> FR Y-9C, Schedule HI, memoranda item 7(g), ``FDIC deposit
insurance assessments;''
<bullet> FR Y-9C, Schedule HC-P, item 7(a) ``Representation and
warranty reserves for 1-4 family residential mortgage loans sold to
U.S. government agencies and government sponsored agencies;''
<bullet> FR Y-9C, Schedule HC-P, item 7(b) ``Representation and
warranty reserves for 1-4 family residential mortgage loans sold to
other parties;''
<bullet> FR Y-9C, Schedule HC-C, Part I, Memorandum items 16.a and
16.b, for eligible loan modifications under Section 4013 of the 2020
Coronavirus Aid, Relief, and Economic Security Act; and
<bullet> FR Y-9C, Schedule HC and FR Y-9SP, Schedule SC, Memoranda
item 2.b., the name and email address of the external auditing firm's
engagement partner.\17\
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\17\ The Board has assured respondents that this information
will be treated as confidential since the collection of this data
item was proposed in 2004, under the assumption that the identity of
the engagement partner is treated as private information by holding
companies.
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In some circumstances, disclosing these data items may also reveal
confidential examination and supervisory information protected from
disclosure under exemption 8 of the FOIA.\18\ The Board has previously
assured submitters that these data items will be treated as
confidential.
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\18\ 12 U.S.C. 552(b)(8).
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In addition, the Chief Executive Officer Contact Information
section of both the FR Y-9C and FR Y-9SP may be kept confidential
pursuant to FOIA exemption 6, which applies to personnel and medical
files the disclosure of which would constitute a clearly unwarranted
invasion of personal privacy,\19\ and exemption 8, which applies to
information contained in or related to examination, operating, or
condition reports prepared by, on behalf of, or for the use of an
agency responsible for the regulation or supervision of financial
institutions.\20\
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\19\ 5 U.S.C. 552(b)(6).
\20\ 5 U.S.C. 552(b)(8).
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Aside from the data items described above, data collected by the FR
Y-9 reports generally are not accorded confidential treatment. As
provided in the Board's Rules Regarding Availability of
Information,\21\ however, a respondent may request confidential
treatment for any data items the respondent believes should be withheld
pursuant to a FOIA exemption. The Board will review any such request to
determine if confidential treatment is appropriate and will inform the
respondent if the request for confidential treatment has been granted
or denied.
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\21\ 12 CFR part 2.
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To the extent that the instructions to the FR Y-9 reports direct
the financial institution to retain the workpapers and related
materials used in preparation of each report, such material would only
be obtained by the Board as part of the examination or supervision of
the financial institution. Accordingly, such information may be
considered confidential pursuant to exemption 8 of the FOIA.\22\ In
addition, the workpapers and related materials may also be protected by
exemption 4 of the FOIA to the extent such financial information is
customarily and actually treated as private by the respondent.\23\
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\22\ 5 U.S.C. 552(b)(8).
\23\ 5 U.S.C. 552(b)(4).
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Consultation outside the agency: The Board consulted with the FDIC
and OCC regarding the proposed revisions on brokered deposits and SA-
CCR check box.
Board of Governors of the Federal Reserve System, September 1,
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-19298 Filed 9-7-21; 8:45 am]
BILLING CODE 6210-01-P
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