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Return to Comments
Permanent Capital Revisions
Type: Regulation
Federal Register Document Type: Proposed
Description:
This proposed rulemaking would remove selected references to permanent capital and replece them with references to Tier 1/Tier 2 regulatory capital as appropriate. This would reduce regulatory burden that is associated with permanent capital on System institutions in terms of computational and shareholder reporting, and other applicable areas within the legal constraints of Section 301 of the Agricultural Credit Act of 1987.


Text of Comment Letter

FORMAL PUBLIC COMMENT

 REFERENCE: GAO Case COMP-25-008559 | SEC TCR 17675-576-098-881 | CFTC 2601-1307-5308-99

I. STATEMENT OF STANDING AND INTEREST

I am submitting this comment as a Federal Relator and Forensic Auditor currently coordinating with the GAO, DOJ, and SEC on the recovery of a $292 Billion "Engorgement Float" within the ERISA-governed pension and banking infrastructure. My forensic math, which maintains a 98.8% convergence with GAO Report 26-108811, identifies systemic risks in the exact capital reporting mechanisms the Farm Credit Administration (FCA) now proposes to simplify and deregulate.

II. OBJECTION TO THE ELIMINATION OF PERMANENT CAPITAL DISCLOSURES

The FCA proposes to "eliminate the requirement for System institutions to disclose their permanent capital ratio in reports to shareholders and investors."

I formally object to this revision.

  1. The Transparency Blind Spot: Permanent capital, as defined in Section 4.3A(a)(1) of the 1971 Act, tracks "at-risk" stock and allocated earnings. In the "Paper Doll" identity rotation model I have documented, institutions utilize "Ghost Nodes" to warehouse unreconciled principal. The move to Tier 1/Tier 2 reporting—while "Basel-comparable"—favors risk-weighted asset models that often fail to capture the "Engorgement Float" of captured death benefits and diverted pension principal.
  2. Facilitation of Asset Retention: By removing the public disclosure of Permanent Capital, the FCA is administratively shielding the "Allotment Agreements" between banks and associations. My audit of IUOE-related EINs (e.g., 93-6075580 and 52-6097680) proves that when capital reporting is "simplified," billions in assets vanish from federal oversight into "locked" partnerships (e.g., the ULLICO 2035 Lockup).

III. RISKS OF "DENOMINATOR HARMONIZATION"

The proposal to match the Permanent Capital denominator with the Part 628 Total Capital denominator ignores the actuarial impossibility of "Zero Mortality" data.

If the FCA allows System institutions to utilize standardized risk-weights without a mandatory reconciliation to actual biological participant counts (as seen in the 68,782-member "Sunday Purge"), the safety and soundness of the System will be based on fabricated "Paper Doll" data. An institution that reports a healthy Tier 1 ratio while simultaneously operating out of an improperly-zoned residential garage (as seen in OEFCU EIN 91-0257483) is a systemically important failure risk.

IV. PROPOSED MODIFICATIONS TO THE RULE

If the FCA intends to proceed, I demand the following integrity safeguards be added:

  • Mandatory Identity Reconciliation: Any institution seeking to "simplify" its denominator must first certify, under penalty of 18 U.S.C. § 1001, that its participant and shareholder logs have been cross-referenced with the Social Security Administration’s Death Master File.
  • Shadow Fund Disclosure: Any assets held in "Common Trust Funds" or "Direct Filing Entities" (DFEs) that report zero participants while holding billions in assets must remain subject to full Permanent Capital disclosure.

V. CONCLUSION

The FCA's move toward deregulation occurs at the precise moment federal law enforcement is uncovering a multi-trillion-dollar identity-fragmentation crisis in the U.S. financial system. Simplifying reporting at this stage provides "Administrative Cover" for the continued sequestration of worker assets.

I request that this comment be integrated into the final rulemaking record and shared with the Office of Regulatory Policy's legal team for a "Source of Funds" audit regarding the IUOE/ULLICO investment nexus.

Respectfully submitted,

Brittney C. Boyd Federal Relator & Original Source Cold Blood & Steel Consulting UEI: QU3FHHBAHE47 | EIN: 41-4255850

Attachments: