Office of Thrift Supervision

OTS ISSUES CONSOLIDATED HOLDING COMPANY PROCESSING RULES

WASHINGTON, D.C. – The Office of Thrift Supervision (OTS) today issued an interim final regulation amending its rules of practice and procedure. The new rule provides streamlined procedures to determine whether a company qualifies as a savings and loan holding company, subject to certain aspects of OTS regulatory authority.

Determination as a limited purpose thrift holding company is available to companies that may have a controlling influence over the management or policies of a savings association or savings and loan holding company. The new procedures apply where a company, other than a bank holding company, has acquired at least one percent but not more than ten percent of the voting stock of a savings association or savings and loan holding company.

The rule provides streamlined procedures that enable certain U.S. companies with significant foreign operations to consent to OTS findings to become subject to OTS comprehensive, consolidated supervision. Treatment as a limited purpose thrift holding company is optional and is offered solely as a means for U.S. entities owning less than a ten percent interest in a savings association or savings and loan holding company to facilitate coordinated, consolidated supervision, and to reduce burdens that arise from regulatory oversight by multiple financial regulatory authorities.

OTS is issuing an interim final regulation because the new procedures do not affect any substantive rights, impose additional regulatory burdens, or require any new action by regulated entities. OTS invites comment on all aspects of the regulation.

The interim final rule is expected to appear in the March 2, 2005, issue of the Federal Register, and is scheduled to become effective April 1, 2005. A copy of the rule, Special Rules for Adjudicatory Proceedings for Certain Holding Companies, is also available on the OTS website at www.ots.treas.gov.

Interim Final Rule

The Office of Thrift Supervision, an office of the Department of the Treasury, regulates and supervises the nation's thrift industry. OTS's mission is to ensure the safety and soundness of, and compliance with consumer protection laws by, thrift institutions, and to support their role as home mortgage lenders and providers of other community credit and financial services. OTS also oversees the activities and operations of thrift holding companies that own or control thrift institutions. Copies of OTS news releases and other documents are available on the OTS web page at www.ots.treas.gov.

Created: Monday, 2/28/2005