july 14, 2011 - inner city press · july 14, 2011 . matthew lee, esq. inner city presslfair finance...
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BOARD OF" GOVERNORS OF'THE
FEDERAL RESERVE SYSTEM WASHINGTON, O. C. 20551
ADDRESS OFFICIAL COf'lRESPONOENCE TO THE I!IOARO
July 14, 2011
Matthew Lee, Esq. Inner City PresslFair Finance Watch P.O. Box 580188 Mount Cannel Station Bronx, NY 10458
Dear Mr. Lee:
This is in response to your email message dated and received by the Board's Freedom of Information office on April 15, 2011. Pursuant to the Freedom of Information Act (the "Act" or "FOIA"), 5 U.S.C. § 552, you request:
the entirety of the two below-captioned applications, and for all records reflect[ing] FRS communications with the companies at issue for the past 12 months, and up until the date ofyour fmal response to this timely request.
[1] China Investment Corporation and Central Huijin Investment Limited, both in Beijing, China to become bank holding companies by indirectly acquiring 80 percent of the voting shares ofThe Bank ofEast Asia (U.S.A.) National Association, New York, New York 05/1212011 [2] Industrial and Commercial Bank ofChina Limited (ICBC), Beijing, China to become a bank holding company by acquiring 80 percent of the voting shares ofThe Bank ofEast Asia (U.S.A.) National Association, New York, New York 05112/2011.1
1 Subsequent to the submission of this request, you purported to file two additional FOIA requests for documents related to these applications by letters dated May 12 and June 12, 2011. You combined your request for documents under the FOIA with comments on the above applications. As we previously have informed you, under the Board's "Rules Regarding Availability of Information" ("Board's Rules"), a FOIA request may not be combined with any other request to the Board except for a request made under the Privacy Act or a request for discretionary release of confidential supervisory information made under section 261.22 of the Board's Rules (12 CFR 261.22). See 12 CFR 261.12(b)(3). The Board is not required to accept or process a request for records under FOIA that does not comply with this requirement. See 12 CFR 261.12(d). Your letters dated May 12 and June 12 do not comply with section 261.12(b)(3) of the Board's Rules.
coP~
2
The Federal Reserve Bank of New York ("FRBNY") provided you with the public portions of the above-listed applications on or April 27, 2011. Staff searched Board records and located the confidential portions the applications and documents comprising communications between Federal Reserve System staff and representatives of the applicants for the 12 months preceding the date of receipt ofyour request. The documents contain or consist of confidential commercial or fmancial information regarding ICBC and Bank ofEast Asia (e.g., internal policies and procedures, due diligence details, nonpublic capital ratios and loan portfolio analyses, unpublished financial statements and fmancial projections, transaction agreements), staff's internal predeliberative analyses and recommendations, and personal details regarding individuals. I have determined that this information is subject to withholding and will be withheld under exemptions 4,5, and 6 ofthe Act, 5 U.S.C. § 552(b(4), (bX5), and (b)(6). All reasonably segregable nonexempt information will be made available to you. The amount and nature of information being withheld will be apparent to you from the face of the documents being provided.
Your request for information, therefore, is granted in part and denied in part for the reasons stated above. The Board's Freedom of Information office will provide you with a copy of the documents being made available to you pursuant to this authorization under separate cover. Ifyou believe you have the legal right to any information that is being withheld, you may appeal this determination in accordance with section 261.13(i) of the Board's Rules Regarding Availability of Information, 12 CFR 261.I3(i), a copy of which is enclosed for your information.
Very truly yours,
l\\~~{)\~ Marga}e\ McCloskey Shanks
Associate Secretary of the Board
Enclosure
Accordingly, your letters are deficient, and will not be processed as FOIA requests. You may submit a new letter to the Board which complies with the requirements ofsection 261.12 of the Board's Rules, and it will be treated as a proper FOIA request. You will find instructions on how to file a proper FOIA request with the Board at the following location on the Board's website: http://www.federalreserve.gov/generalinfo/foia/default.cftn
From: Ann Misback To: Kathleen Q'Day; eat Robinson Cc: Betsy Cross; Usa DeFerrari; Jack Jennings Subject: Two questions from Ernie Patrikis Date: 08/12/2010 10:56 AM
Ernie called with two questions, one on China and one on India
1. What would be the Fed reaction if one of the largest Chinese banks entered into an ag .."''''.....'''nt tl"\ ru,rrh::.eo ::. e ..... ::.11 I I c: h::.nv (Iiv",l" e",r";n,,
Reactions?
Ann
From: Ano Mjsback
To: Nathan Sheets 0;:: Kathleen Q'Day Subject: question about recent meetings in China Date: 11/12/201002:28 PM
Nathan -
Thanks,
Ann ----- Forwarded by Ann Misback/BOARO/FRS on 11/12/201002:25 PM
From: "Patrikls, Emest" <[email protected]>
Cc: kathleen.O'[email protected]
Date: 11/12/2010 10:27 AM
Subject: Gov W
I gather that the Chairman of ICBC complained to the governor about the inability to able to buy a bank: in the
Indeed., the bank would like to have a conference call with Board staff and the general counsel of the parent of the target.
Regards, Ernie Ernie Patrikis
This e-mail communication is confidential and is intended only for the individual(s) or entity named above and others who have been specifically authorized to receive it. If you are not the intended recipient, please do not read, copy, use or disclose the contents of this communication toothers. Please notify the sender that you have received this e-mail in error by replying to the e-mail or by telephoning (212) 819-8200 during the hours of 9:30am - 5:30pm (EST). Any other time please call (212) 819-7664. Please then delete the e-mail and any copies of it. Thank you.
From: Ann Mjsback
To: Kathleen O'Day; Usa Deferrari; Betsy Howes-Bean; Jon D Stoloff; Sebastian Astrada
SUbject: ICBC Beijing conversations
Date: 11/16/2010 08:27 AM
FYI -
This summary seems consistent with what Ernie told me late last week.
Ann
ICBC/BEA Ivan Hurwitz to: Robin Whidbee, June Gilmour 02/04/201110:55AM
This message has been forwarded.
.
,~ ld Comment Itr Response.pdf
COMBINED NY !BOARD RESTRICTED FR
LEGAUAPPSIRM MEETING 12/9/10 STAFF NOTES AND NEXT STEPS
Industrial and Commercial Bank ofChina Limited, Beijing, China ("ICBC")
ICBC met with Board staff during the week of December 17, 201 0, to discuss its interest in acquiring 80 percent of the voting securities ofThe Bank ofEast Asia (Nominees), Limited's u.s. banking subsidiary, The Bank ofEast Asia (U.S.A.) National Association, New York, New York. During the meeting, Board Legal advised ICBC that it may go ahead and file the application, however, ICBC is not planning on filing until Q1 2011. On December 20, 2010, ICBC met with staff ofthis Reserve Bank to discuss the proposal. No new information was discussed in the meeting that had not been discussed in the meeting with Board staff.
A full Comprehensive Consolidated Supervision determlnatlonwouldneedtobemadefor ICBC in order to approve the application. A discussion followed regarding the status ofother pending applications from Chinese banks.
COMBINED NYIBOARD RESTRICTED FR
LEGAL/APPSIRM MEETING 12/2110 STAFF NOTES AND NEXT STEPS
Industrial and Commercial Bank of China Ltd., Beijing, China ("ICBC") investment in U.S. subsidiary of Bank ofEast Asia, Hong Kong ("BEA")
ICBC met with Board staff about acquiring a U.S. bank and will meet with Reserve Bank staff next week. ICBC would like to invest directly into the U.S. bank subsidiary of BE A, which would dilute BEA's ownership. Senior Board staff gave ICBC the ok to file. As part ofthe review of the application, ICBC would need to be found to be subject to full comprehensive consolidated supervision by its home country regulator.
From: Kathleen Q'Day
To: Sebastian Astrada Cc: Ann Mjsback; Jon D Sto1off; Janet CrosseD
Subject: Bank of East Asia Date: 03/02/2011 09:22 AM
Sebastian,
Also, new information with respect to BEA. Sullivan &
The beat goes on.
Thanks.
KO
From: Betsy Howes-Bean/BOARD/FRS@BOARD To: Ivan HurwitzlNY/FRS@FRS Cc: Ann MisbacklBOARD/FRS@BOARD Date: 01/14/2011 04:00 PM Subject: Re: ICBC/BEA
Agreed.
Betsy Howes-Bean Manager, International Applications Banking Supervision and Regulation Board of Governors of the Federal Reserve System Phone: (202) 452-3096
Ivan Hurwitz ICBC's counsel called to say that ICSC has deci ... 01114/201112:45:21,PM
From: Ivan HurwitzlNY/FRS@FRS To: Betsy Howes-Bean/BOARD/FRS@BOARD, Ann MisbacklBOARD/FRS@BOARD Date: 01/14/2011 12:45 PM Subject: ICBC/BEA
ICBC's counsel called to say that ICBC has decided to proceed with the acquisition of 80% of Bank of East Asia's U.S. bank sub, Bank of East Asia (U.S.A.), NA (They hadn't made a firm decision at the time of our meetings with them last month.) He asked whether CIC and Huijin must be applicants, and if so whether they should file together with ICBC or separate from ICBC. Given that the 4c9 did not exempt CIC and Huiiin from the reauirements of Section 3, I'll advise him that CIC and Huiiin do need to file. To
From: "Patrikis, Ernest" <[email protected]> To: [email protected] Date: 01/25/201105:31 PM Subject: ICBC
Greetings
Re the ICBC application to become a holding company, does the FRBNY still review draft applications?
Regards, Ernie
Ernest T. Patrikis White &Case LLP Phone 212-819-7903 Cell 917 -327 -8760
=================================================================
This e-mail communication is confidential and is intended only for the individua1(s) or entity named above and others who have been specifically authorized to receive it. Ifyou are not the intended recipient, please do not read, copy, use or disclose the contents of this communication to others. Please notify the sender that you have received this e-mail in error by replying to the e-mail or by telephoning (212) 819-8200 during the hours of 9:30am - 5:30pm (EST). Any other time please call (212) 819-7664. Please then delete the e-mail and any copies of it. Thank you.
From: npatrikis, Emese <[email protected]> To: [email protected], [email protected], [email protected] Date: 01131/201111:17 AM Subject: ICBC/BEA USA NA
The agreements between ICBC and BEA were signed in Chicago the week before last. ICBC is planning to file its application to the Board in late March. This will permit ICBC to provide the Board with ICBC's latest financials.
Of course, if you have any questions, please do not hesitate to call.
Regards, Ernie
Ernest T. Patrikis White & Case LLP Phone 212-819-7903 Cell 917 -327 -8760
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This e-mail communication is confidential and is intended only for the individual(s) or entity named above and others who have been specifically authorized to receive it. Ifyou are not the intended recipient, please do not read, copy, use or disclose the contents of this communication to others. Please notify the sender that you have received this e-mail in error by replying to the e-mail or by telephoning (212) 819-8200 during the hours of 9:30am - 5:30pm (EST). Any other time please call (212) 819-7664. Please then delete the e-mail and any copies of it. Thank you. ===========================================~~~===================
From: To: Cc:
Date: Subject:
"Cuccinello. Glen" <[email protected]> "'[email protected]'" <[email protected]> "Patrikis, Ernesf' <[email protected]>. "lou, Francis" <[email protected]>, "[email protected]" <[email protected]>, "leung, Ming lee (Manley)" <[email protected]> 02/09/201105:16 PM RE: ICSC SHC Act Application - ISFR Question
Thanks again.
From: [email protected] [mailto:[email protected]] Sent: Wednesday, February 09,2011 5:16 PM To: Cuccinello, Glen Cc: Patrikis, Ernest; Zou, Francis; [email protected]; Leung, Ming Lee (Manley) Subject: RE: ICBC BHC Act Application -- IBFR Question
That is correct.
June A. Gilmour Senior Bank Applications Specialist Legal Group - Bank Applications Function Federal Reserve Bank of New York 33 Liberty Street New York, New York 10045 (212)720-6714 FAX (212)720-1608
From: "Cuccinello. Glen" <glen,[email protected],com>
To: ·'June,Gilmour@ny,frb,org'" <June,[email protected]> Cc: "Ivan,[email protected]" <[email protected]>, "Patrikis, Emest· <[email protected]>, "Zou, Francis· <[email protected]>, "Leung, Ming Lee (Manley)" <[email protected]>
Date: 02/09/201105:13 PM
Subject: RE: ICSC SHC Act Application - ISFR Question
Ms. Gilmour: My understanding of Fed procedures is that fingerprinting is not required for foreign persons submitting IBFRs. such as the top two officers of ICBC. I would appreciate it if your confirm or clarify. Thank you. Glen R. Cuccinello Counsel Bank Advisory Practice White & Case LLP