BNL SUBPOENA RENEWAL
Henry B. Gonzalez, (TX-20)
(House of Representatives - April 24, 1991)


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The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Mississippi [Mr. Espy], is recognized for 60 minutes.

[Mr. ESPY addressed the House. His remarks will appear hereafter in the Extensions of Remarks.]

The SPEAKER pro tempore. Under a previous order of the House, the gentleman from Texas [Mr. Gonzalez] is recognized for 30 minutes.

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Federal Financial Institutions Examination Council


To: Federal Financial Institutions Examination Council.
Subject: Minutes of the March 14, 1986 FFIEC Meeting.

Chairman Gray convened the meeting at 9:10 a.m. in the conference room of the Comptroller of the Currency on Friday, March 14, 1986. Representing their agencies were:

Robert L. Clarke, Comptroller of the Currency.

Edwin J. Gray, Chairman, FHLBB.

Roger W. Jepsen, Chairman, NCUA.

Preston Martin, Board Member, FRB.

L. William Seidman, Chairman, FDIC.

Representing the State Liaison Committee were:

Sidney A. Bailey, Commissioner of Financial Institutions, Virginia.

Charles W. Burge, Deputy Commissioner of Thrift Institutions, Georgia.

Tom D. McEldowney, Director, Department of Finance, Idaho.

PROPOSED POLICY ON THE EXCHANGE OF SUPERVISORY INFORMATION AMONG THE FEDERAL AND STATE SUPERVISORY AGENCIES

James Houpt, FRB, stated that this policy was being proposed to the Council because of the growth in interstate banking activities and the growing need for federal and state agencies to cooperate in their supervisory efforts. Mr. Houpt summarized the proposed policy for the Council. Mr. Bailey, SLC Chairman, said that the policy as drafted seemed to focus on examination data but that information pertaining to applications was also important and that it should be made clear that such information was also covered by the proposed policy. He said that the primary concern is with safety and soundness and that the purpose of the policy should be to provide for the soundness and that the purpose of the policy should be to provide for the rountine sharing of information. Mr. Bailey questioned the definition of `legally able' used in term #2. Mr. Houpt stated that this wording was only intended to protect the confidentiality of information obtained from the federal agencies from disclosure under state freedom of information laws and was not intended to imply that states would have to have specific laws providing an absolute guarantee that such information could never be disclosed. Chairman Gray said that he wasn't sure how the various state legislatures worked but that he was not sure how the state agencies could protect the confidentiality of the information in all circumstances. He noted that not even the federal agencies could make such a representation. (Council Member Martin, FRB, entered the meeting at this point, 9:30 a.m.) Mr. Bailey suggested that if expanded access to the FDIC's existing data base could be arranged on a need-to-know basis that it would provide most of the data that are needed by the states. About 30 states are already linked into this data base for information on state chartered banks in their own states. Mr. Houpt said the FDIC applies its own examination ratings to state member and national banks and might have examination ratings different from those of the principal agency. Mr. Bailey said the FDIC rating is not what the states are interested in: the states want the information on which the rating is based. Mr. Selby, OCC, said the Office of the Comptroller of the Currency would want to release its own information and not have it released from the FDIC. (Mr. Clarke left the meeting at 9:50 a.m.)

Council Member Martin made a motion to approve the policy, with the suggested changes by Mr. Bailey and Council Member Jepsen. The motion was seconded by Mr. Selby (acting for Council Member Clarke) and unanimously approved.

PRESS RELEASE

The Examination Council announced today its approval of a Model Agreement on Sharing of Confidential Supervisory Information. The Model Agreement was developed because of the increased importance of interstate banking and thrift operations and the growing need for federal and state agencies to cooperate in their supervisory efforts.

The Model Agreement was developd in cooperation with the Examination Council's State Liaison Committee, a group of five state supervisors of depository institutions that advises the Council on matters affecting the supervision of state-chartered depository institutions. The Model Agreement is an extension of the General Policy Statement on the Exchange of Supervisory Information Among the Federal and State Supervisory Agencies that was adopted by the Council on March 14, 1986.

The Council is recommending to the Federal Reserve Board, Federal Deposit Insurance Corporation, Federal Home Loan Bank Board, National Credit Union Administration, and Office of the Comptroller of the Currency that they consider this Model Agreement when they develop their own agreements for the exchange of confidential supervisory information with state supervisory agencies. Also, the Council's State Liaison Committee plans to recommend to the states that they give consideration to the Model Agreement in developing agreements with the federal supervisory agencies and the supervisory agencies of other states.

A copy of the Model Agreement is attached.

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Agreement on Sharing of Confidential Supervisory Information

The ------ (`Requesting Agency') and the ------ (`Responding Agency') hereby agree (`Agreement') to exchange confidential supervisory information including reports of examination relating to depository institutions which are related to an organization for which the Requesting Agency has supervisory jurisdiction or which have submitted an application to the Requesting Agency. Under this Agreement, either the Federal or the State Agency may request information as the Requesting Agency subject to the conditions, obligations, responsibilities of this Agreement. In submitting a request, the Requesting Agency shall provide a specific description of the information desired and its need for the information. The Responding Agency will make all reasonable efforts to reply to the request within twenty (20) working days of its receipt.

The Requesting Agency specifically agrees to be bound by the same standards of confidentiality and other limitations and conditions respecting the use of any such data received from the Responding Agency as specified in the Joint Statement of Policy on Interagency Exchange of Supervisory Information and dated August 23, 1984, adopted by the Board of Governors of the Federal Reserve System, Office of Comptroller of the Currency, the Federal Home Loan Bank Board, and the Federal Deposit Insurance Corporation.

The Requesting Agency expressly agrees further to limit its use of any such information it receives under this Agreement to functions related to the exercise of its appropriate supervisory authority.

The Requesting Agency acknowledges that all confidential supervisory information, in whatever form, furnished by the Responding Agency remains the property of the Responding Agency and agrees that no further disclosure of any information obtained from the Responding Agency under this Agreement shall be made to any other state, local, or federal agency, court or legislative body, or any other agency, instrumentality, entity, or person without the express written permission of the Responding Agency.

By this Agreement, the Requesting Agency gives express assurance that under the applicable laws, regulations, and judicial rulings it has the authority to comply fully with the use and disclosure limitations and conditions of this Agreement; that it will provide written notification to the Responding Agency within ten days of any material change to this authority or any violation of this Agreement; and that any such change or violation shall automatically terminate this Agreement unless the Responding Agency waives termination in writing within thirty days of learning of the event constituting the change or violation.

In event of termination of this Agreement, all information received hereunder by the Requesting Agency shall be immediately returned to the Responding Agency with the express agreement that no copies or derivative information will be retained by the Requesting Agency. In addition, and without terminating the Agreement, the Responding Agency may, in its sole discretion, require the return of all documents and derivative information previously supplied on a particular depository institution.

This Agreement shall in no way limit the discretion of the Responding Agency to deny future requests for confidential supervisory information, in whole or part, for any reason consistent with the Council's General Policy for sharing such information, adopted at its meeting March 14, 1986, and with Responding Agency's own supervisory interests and obligations.

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END