OCC 2001-46
OCC Bulletin

Subject:      Operating Subsidiaries of Federal Branches
              and Agencies
Description:  Final Rule

Date:         October 3, 2001

TO:  Chief Executive Officers of All National Banks, 
     Federal Branches and Agencies, Department and 
     Division Heads, and All Examining Personnel

The Office of the Comptroller of the Currency (OCC) 
published the attached final rule in the Federal Register 
on September 26, amending parts 5 and 28 of its 
regulations to clarify that a federal branch or agency 
may establish, acquire, or maintain an operating 
subsidiary in generally the same manner that a national 
bank may acquire or establish an operating subsidiary.

The final rule makes several changes to parts 5 and 28.  
Among other things, it clarifies that section 5.34, the 
regulation that provides that national banks may acquire 
or establish an operating subsidiary, applies to a 
federal branch or agency with certain modifications to 
reflect the differences in the relationship between a 
federal branch or agency and a subsidiary of the foreign 
bank as compared with a national bank and its operating 
subsidiary.  The final rule also defines "well capitalized"
and "well managed" for purposes of determining whether a 
federal branch or agency may use a notice or other 
expedited procedures to acquire, establish, or maintain an 
operating subsidiary or perform a new activity in an 
existing operating subsidiary.

For further information, contact Carlos Hernandez, 
international advisor, International Banking and Finance 
Division, 202-874-4730; or Martha Clarke, counsel, 
Legislative and Regulatory Activities Division, 
202-874-5090.




__________________________________________
Julie L. Williams
First Senior Deputy Comptroller and Chief Counsel



Attachment: 66 FR 49093
[http://www.occ.treas.gov/fr/fedregister/66fr49093.pdf]