The Federal Register

FEDERAL RESERVE SYSTEM

Tue, Dec 26 2006 11:00:00 GMT

On September 25, 2006, the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (Board), the Federal Deposit Insurance Corporation (FDIC), and the Office of Thrift Supervision (OTS) (collectively, the agencies) issued a joint notice of proposed rulemaking for public comment that proposed a new riskbased capital adequacy framework (Basel II NPR). The Basel II NPR would require some and permit other qualifying banks \1\ to use an internal ratingsbased approach to calculate regulatory credit risk capital requirements and advanced measurement approaches to calculate regulatory operational risk capital requirements. The Basel II NPR describes the qualifying criteria for banks required or seeking to operate under the proposed framework and the applicable riskbased capital requirements for banks that operate under the framework. The Basel II NPR comment period will end on January 23, 2007.
\1\ As used in this notice, the term ``bank'' includes banks,

FEDERAL RESERVE SYSTEM

Tue, Dec 26 2006 11:00:00 GMT

The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), and Office of Thrift Supervision (OTS) (collectively, the Agencies) are proposing revisions to the existing riskbased capital framework that would enhance its risk sensitivity without unduly increasing regulatory burden. These changes would apply to banks, bank holding companies, and savings associations (banking organizations). A banking organization would be able to elect to adopt these proposed revisions or remain subject to the Agencies' existing riskbased capital rules, unless it uses the Advanced Capital Adequacy Framework proposed in the notice of proposed rulemaking published on September 25, 2006 (Basel II NPR).

In this notice of proposed rulemaking (NPR or Basel IA), the Agencies are proposing to expand the number of risk weight categories, allow the use of external credit ratings to risk weight certain exposures, expand the r

FEDERAL RESERVE SYSTEM

Tue, Dec 26 2006 11:00:00 GMT

In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the OCC, the Board, the FDIC, and the OTS (collectively, the agencies) may not conduct or sponsor, and the respondent is not required to respond to, an information collection unless it displays a currently valid Office of Management and Budget (OMB) control number. The Federal Financial Institutions Examination Council (FFIEC), of which the agencies are members, approved the agencies' publication for public comment of proposed new regulatory reporting requirements for banks \1\ that qualify for and adopt the Advanced Capital Adequacy Framework to calculate their riskbased capital requirement or banks that are in the parallel run stage of qualifying to adopt this proposed framework. This notice extends the comment period on this document for consistency with the extension of the comment period for the notice of proposed rulemaking on the Advanced Capital Adequacy Framework, as published elsewhere i

Definitions of Terms and Exemptions Relating to the ``Broker'' Exceptions for Banks

Tue, Dec 26 2006 11:00:00 GMT

The Board and the Commission jointly are issuing, and requesting comment on, proposed rules that would implement certain of the exceptions for banks from the definition of the term ``broker'' under Section 3(a)(4) of the Securities Exchange Act of 1934 (``Exchange Act''), as amended by the GrammLeachBliley Act (``GLBA''). The proposed rules would define terms used in these statutory exceptions and include certain related exemptions. In developing this proposal, the Agencies have consulted with the Office of the Comptroller of the Currency (``OCC''), the Federal Deposit Insurance Corporation (``FDIC'') and the Office of Thrift Supervision (``OTS''). The proposal is intended, among other things, to facilitate banks' compliance with the GLBA.

Delegation of Authority and Assignment of Responsibilities for International Affairs

Tue, Dec 26 2006 11:00:00 GMT

1. Purpose. To delegate authority and assign responsibilities to the Deputy Undersecretary for International Affairs.

2. Authority and Directives Affected. This Order is issued pursuant to 5 U.S.C. 301; 5 U.S.C. 551 et seq.; and Reorganization Plan No. 6 of 1950 (5 U.S.C. Appendix 1); additional authorities are listed in Paragraph 4 of this Order. This Order supersedes Secretary's Order 01 95.

3. Background. This Order delegates authority and assigns responsibilities to the Deputy Undersecretary for International Affairs for carrying out international responsibilities of the Secretary of Labor. The Order delegates authority and assigns responsibilities under statutes, regulations, executive orders, interagency memoranda and agreements. This Order is being issued in order to delegate additional responsibilities granted to the Secretary of Labor since issuance of Secretary's Order 0195.

4. Delegation of Authority and Assignment of Responsibilities to the Deputy Undersecretary for In

Tue, Dec 26 2006 11:00:00 GMT

___________________________________________________________________ Title 3--
The President
[[Page 77571]]
Executive Order 13420 of December 21, 2006
Adjustments of Certain Rates of Pay
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the laws cited herein, it is hereby ordered as follows:
Section 1. Statutory Pay Systems. The rates of basic pay or salaries of the statutory pay systems (as defined in 5 U.S.C. 5302(1)), as adjusted under 5 U.S.C. 5303(a), are set forth on the schedules attached hereto and made a part hereof:
(a) The General Schedule (5 U.S.C. 5332(a)) at Schedule 1;
(b) The Foreign Service Schedule (22 U.S.C. 3963) at Schedule 2; and
(c) The schedules for the Veterans Health Administration of the Department of Veterans Affairs (38 U.S.C. 7306, 7404; section 301(a) of Public Law 102-40) at Schedule 3.
Sec. 2. Senior Executive Service. The ranges of rates of basic pay for senior executives in the Senior Executive Service, as established pursuant to 5 U.S.C. 5382, are set forth on Schedule 4 attached hereto and made a part hereof.
Sec. 3. Certain Executive, Legislative, and Judicial Salaries. The rates of basic pay or salaries for the following offices and positions are set forth on the schedules attached hereto and made a part hereof: (a) The Executive Schedule (5 U.S.C. 5312-5318) at Schedule 5;
(b) The Vice President (3 U.S.C. 104) and the Congress (2 U.S.C. 31, and section 137 of Public Law 109-289, division B, as amended by section 7 of Public Law 109-383) at Schedule 6; and
(c) Justices and judges (28 U.S.C. 5, 44(d), 135, 252, and 461(a); section 140 of Public Law 97-92), at Schedule 7.
Sec. 4. Uniformed Services. Pursuant to section 601(a)- (c) of Public Law 109-364, the rates of monthly basic pay (37 U.S.C. 203(a)) for members of the uniformed services, as adjusted under 37 U.S.C. 1009, and the rate of monthly cadet or midshipman pay (37 U.S.C. 203(c)) are set forth on Schedule 8 attached hereto and made a part hereof.
Sec. 5. Locality-Based Comparability Payments. (a) Pursuant to 5 U.S.C. 5304a, locality-based comparability payments shall be paid in accordance with Schedule 9 attached hereto and made a part hereof. (b) The Director of the Office of Personnel Management shall take such actions as may be necessary to implement these payments and to publish appropriate notice of such payments in the Federal Register. Sec. 6. Administrative Law Judges. The rates of basic pay for administrative law judges, as adjusted under 5 U.S.C. 5372(b)(4), are set forth on Schedule 10 attached hereto and made a part hereof.
Sec. 7. Effective Dates. Rates for the Congress, under Schedule 6, are effective on February 16, 2007. Schedule 7 reflects continuation of the pay rates in effect as of the first day of the applicable pay period beginning on or after January 1, 2006. Schedule 8 is effective on January 1, 2007. The other schedules contained herein are effective on the first day of the first applicable pay period beginning on or after January 1, 2007.
[[Page 77572]]
Sec. 8. Prior Order Superseded. Executive Order 13393 of December 22, 2005, is superseded.

(Presidential Sig.)
THE WHITE HOUSE,
December 21, 2006.
Billing code 3195-01-P




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[Federal Register: December 26, 2006 (Volume 71, Number 247)] [Contents]
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 [FR Doc. 06-9896
 Filed 12-22-06; 10:38 am]

 Billing code 6325-01-C

Tue, Dec 26 2006 11:00:00 GMT

___________________________________________________________________ Title 3--
The President
[[Page 77565]]
Executive Order 13419 of December 20, 2006

National Aeronautics Research and Development By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 204 of the National Science and Technology Policy, Organization, and Priorities Act of 1976, as amended (42 U.S.C. 6613), section 101(c) of the National Aeronautics and Space Administration Authorization Act of 2005 (Public Law 109-155), and section 301 of title 3, United States Code, it is hereby ordered as follows:
Section 1. National Aeronautics Research and Development Policy. Continued progress in aeronautics, the science of flight, is essential to America's economic success and the protection of America's security interests at home and around the globe. Accordingly, it shall be the policy of the United States to facilitate progress in aeronautics research and development (R&D) through appropriate funding and activities of the Federal Government, in cooperation with State, territorial, tribal, local, and foreign governments, international organizations, academic and research institutions, private organizations, and other entities, as appropriate. The Federal Government shall only undertake roles in supporting aeronautics R&D that are not more appropriately performed by the private sector. The National Aeronautics Research and Development Policy prepared by the National Science and Technology Council should, to the extent consistent with this order and its implementation, guide the aeronautics R&D programs of the United States through 2020.
Sec. 2. Functions of the Director of the Office of Science and Technology Policy. To implement the policy set forth in section 1 of this order, the Director of the Office of Science and Technology Policy (the ``Director'') shall:
(a) review the funding and activities of the Federal Government relating to aeronautics R&D; (b) recommend to the President, the Director of the Office of Management and Budget, and the heads of executive departments and agencies, as appropriate, such actions with respect to funding and activities of the Federal Government relating to aeronautics R&D as may be necessary to
(i) advance United States technological leadership in aeronautics; (ii) support innovative research leading to significant advances in aeronautical concepts, technologies, and capabilities;
(iii) pursue and develop advanced aeronautics concepts and technologies, including those for advanced aircraft systems and air transportation management systems, to benefit America's security and effective and efficient national airspace management;
(iv) maintain and advance United States aeronautics research, development, test and evaluation infrastructure to provide effective experimental and computational capabilities in support of aeronautics R&D;
(v) facilitate the educational development of the future aeronautics workforce as needed to further Federal Government interests; (vi) enhance coordination and communication among executive departments and agencies to maximize the effectiveness of Federal Government R&D resources; and
[[Page 77566]]
(vii) ensure appropriate Federal Government coordination with State, territorial, tribal, local, and foreign governments, international organizations, academic and research institutions, private organizations, and other entities.
Sec. 3. Implementation of National Aeronautics Research and Development Policy. To implement the policy set forth in section 1 of this order, the Director shall: (a) develop and, not later than 1 year after the date of this order, submit for approval by the President a plan for national aeronautics R&D and for related infrastructure, (the ``plan''), and thereafter submit, not less often than biennially, to the President for approval any changes to the plan; (b) monitor and report to the President as appropriate on the implementation of the approved plan; (c) ensure that executive departments and agencies conducting aeronautics R&D:
(i) obtain and exchange information and advice, as appropriate, from organizations and individuals outside the Federal Government in support of Federal Government planning and performance of aeronautics R&D; (ii) develop and implement, as appropriate, measures for improving dissemination of R&D results and facilitating technology transition from R&D to applications; and
(iii) identify and promote innovative policies and approaches that complement and enhance Federal Government aeronautics R&D investment; and (d) report to the President on the results of the efforts of executive departments and agencies to implement paragraphs (c)(i) through (iii) of this section.
Sec. 4. General Provisions. (a) In implementing this order, the Director shall:
(i) obtain as appropriate the assistance of the National Science and Technology Council in the performance of the Director's functions under this order, consistent with Executive Order 12881 of November 23, 1993, as amended;
(ii) coordinate as appropriate with the Director of the Office of Management and Budget; and
(iii) obtain information and advice from all sources as appropriate, including individuals associated with academic and research institutions and private organizations.
(b) The functions of the President under subsection (c) of section 101 of the National Aeronautics and Space Administration Authorization Act of 2005, except the function of designation, are assigned to the Director of the Office of Science and Technology Policy. In performing these assigned functions, the Director shall, as appropriate, consult the Administrator of the National Aeronautics and Space Administration, the Secretary of Defense, the Secretary of Transportation, the Director of the Office of Management and Budget, and other heads of executive departments and agencies as appropriate. The Director also shall ensure that all actions taken in the performance of such functions are consistent with the authority set forth in subsections (a) through (d) of section 6 of Executive Order 13346 of July 8, 2004. (c) This order shall be implemented in a manner consistent with: (i) applicable law, including section 102A
(i) of the National Security Act of 1947, as amended (50 U.S.C. 403-1(i)), and subject to the availability of appropriations; and
(ii) statutory authority of the principal officers of executive departments and agencies as the heads of their respective departments and agencies. (d) This order shall not be construed to impair or otherwise affect the functions of the Director of the Office of Management and Budget relating to budget, administrative, and legislative proposals.
[[Page 77567]]
(e) This order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity by a party against the United States, its departments, agencies, instrumentalities, or entities, its officers, employees, or agents, or any other person.

(Presidential Sig.)
THE WHITE HOUSE,
December 20, 2006.
[FR Doc. 06-9895
Filed 12-22-06; 10:38 am]
Billing code 3195-01-P

Exemptions for Banks Under Section 3(a)(5) of the Securities Exchange Act of 1934 and Related Rules

Tue, Dec 26 2006 11:00:00 GMT

The Securities and Exchange Commission is publishing for comment proposed rules and rule amendments regarding exemptions from the definitions of ``broker'' and ``dealer'' under the Securities Exchange Act of 1934 (``Exchange Act'') for banks'' securities activities. In particular, the Commission is reproposing a conditional exemption originally proposed in 2004 that would allow banks to effect riskless principal transactions with nonU.S. persons pursuant to Regulation S under the Securities Act of 1933 (``Securities Act''). The Commission also is proposing to amend and redesignate an existing exemption from the definition of ``dealer'' for banks' securities lending activities as a conduit lender. In addition, the Commission is proposing to amend a rule that grants a limited exemption from U.S. brokerdealer registration for foreign brokerdealers, conforming the rule to amended definitions of ``broker'' and ``dealer'' under the Exchange Act. Finally, the Commission is requesting comment on its i

Order Extending Temporary Exemption of Banks From the Definition of ``Broker'' Under Section 3(a)(4) of the Securities

Tue, Dec 26 2006 11:00:00 GMT

December 18, 2006.

I. Background

The GrammLeachBliley Act (``GLBA'') repealed the blanket exception of banks from the definitions of ``broker'' and ``dealer'' under the Securities Exchange Act of 1934 (``Exchange Act'') \1\ and replaced it with functional exceptions incorporated in amended definitions of ``broker'' and ``dealer.'' Under the GLBA, banks that engage in securities activities either must conduct those activities through a registered brokerdealer or ensure that their securities activities fit within the terms of a functional exception to the amended definition of ``broker.''
\1\ As defined in Exchange Act Sections 3(a)(4) and 3(a)(5) [15 U.S.C. 78c(a)(4) and 78c(a)(5)].

The GLBA provided that the amended definitions of ``broker'' and ``dealer'' were to become effective May 12, 2001. Starting on May 11, 2001, in connection with various rulemaking proposals,\2\ the Securities and Exchange Commission (``Commission'') extended, most recently until January 15, 2007, a temporar