Joint Request for Comment on Proposal to Permit Financial Holding Companies and Financial Subsidiaries

Federal Reserve Bank Of Dallas

Informations

• Publié par: Mosur
• Nombre de lectures: 59
• Langue: English

Extrait

Federal Reserve Bank
ll★K
of Dallas
DALLAS, TEXAS
75265-5906January 24, 2001
Notice 01-09
TO: The Chief Executive Officer of each
financial institution and others concerned
in the Eleventh Federal Reserve District
SUBJECT
Joint Request for Comment on Proposal to
Permit Financial Holding Companies and Financial Subsidiaries to
Act as Real Estate Brokers and Managers
DETAILS
The Board of Governors of the Federal Reserve System and the Secretary of the Treasury
have requested public comment on whether to determine by rule that real estate brokerage and real
estate management are financial in nature or incidental to a financial activity and, therefore, permis-
sible for financial holding companies and financial subsidiaries of national banks. The proposed rule
would amend subpart I of the Board’s Regulation Y and would amend the Secretary’s financial
subsidiary regulations.
The Board must receive comments by March 2, 2001. Please address comments to
Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and
Constitution Avenue, N.W., Washington, DC 20551. Also, you may mail comments electronically to
[e-mail]. All comments should refer to Docket No. R-1091.
ATTACHMENT
A copy of the Board’s notice as it appears on pages 307–14, Vol. 66, No. 2 of the Federal
Register dated January 3, 2001, is attached.
MORE INFORMATION
For more information, please contact Rob Jolley, Banking Supervision Department, [phone].
For additional copies of this Bank’s notice, contact the Public Affairs Department at [phone]
or access District Notices on our web site at http://www.dallasfed.org/banking/notices/index.html.
For additional copies, bankers and others are encouraged to use one of the following toll-free numbers in contacting the Federal
Reserve Bank of Dallas: Dallas Office [phone]; El Paso Branch Intrastate [phone], Interstate [phone];
Houston Branch Intrastate [phone], Interstate [phone]; San Antonio Branch Intrastate [phone].307
Federal RegisterProposed Rules
Vol. 66, No. 2
Wednesday, January 3, 2001
This section of the FEDERAL REGISTER ADDRESSES: Comments should refer to company or foreign bank that qualifies
contains notices to the public of the proposed docket number R–1091 and should be as a financial holding company (‘‘FHC’’)
issuance of rules and regulations. The mailed to Ms. Jennifer J. Johnson, to engage in a broad range of activities
purpose of these notices is to give interested Secretary, Board of Governors of the that are defined by the GLB Act to be
persons an opportunity to participate in the Federal Reserve System, 20th Street and financial in nature. The GLB Act also
rule making prior to the adoption of the final
Constitution Avenue, NW., Washington, permits FHCs to engage in other
rules.
DC 20551 (or mailed electronically to activities that the Board determines, by
[e-mail]) and regulation or order and in consultation
to Real Estate Brokerage and with the Secretary of the TreasuryFEDERAL RESERVE SYSTEM
Management Regulation, Office of (‘‘Secretary’’), to be financial in nature
or incidental to a financial activity.12 CFR Part 225 Financial Institution Policy, U.S.
The GLB Act also amended theDepartment of the Treasury, 1500
[Regulation Y; Docket No. R–1091] National Bank Act (12 U.S.C. 1 et seq.)Pennsylvania Avenue, NW., Room SC
to allow a national bank to invest in37, Washington, DC 20220 (or mailedBank Holding Companies and Change
financial subsidiaries. Financialelectronically toin Bank Control
subsidiaries may engage, with [e-mail]).
exceptions, in the same broad range ofComments addressed to Ms. JohnsonDEPARTMENT OF THE TREASURY
activities that are defined by the GLBalso may be delivered to the Board’s
Act to be financial in nature and,mailroom between 8:45 a.m. and 5:15Office of the Under Secretary for
1therefore, permissible for FHCs. Inp.m. and, outside those hours, to theDomestic Finance
addition, the GLB Act permits financialBoard’s security control room. Both the
subsidiaries to engage in other activitiesmailroom and the security control room12 CFR Part 1501
that the Secretary determines, inare accessible from the Eccles Building
RIN 1505–AA84 consultation with the Board, to becourtyard entrance, located on 20th
financial in nature or incidental to aStreet between Constitution Avenue andFinancial Subsidiaries financial activity.C Street, N.W. Members of the public
The American Bankers AssociationAGENCIES: Board of Governors of the may inspect comments in room MP–500
(‘‘ABA’’) and Fremont National Bank &Federal Reserve System and Department of the Martin Building between 9 a.m.
Trust Company, Fremont, Nebraska,of the Treasury. and 5 p.m. on weekdays. Comments
have asked the Board and the Secretaryaddressed to the Treasury DepartmentACTION: Joint proposed rule with request
(collectively, the ‘‘Agencies’’) tomay also be delivered to the Treasuryfor public comments.
determine that real estate brokerage andDepartment mail room between the
management activities are financial inSUMMARY: The Board of Governors of the hours of 8:45 a.m. and 5:15 p.m. at the
nature. Two additional tradeFederal Reserve System and the 15th Street entrance to the Treasury
associations, the Financial ServicesSecretary of the Treasury jointly Building.
Roundtable and the New York Clearingpropose to seek comment on whether to
FOR FURTHER INFORMATION CONTACT: House Association, have requested thatdetermine by rule that real estate Board of Governors: Scott G. Alvarez, the Board permit FHCs to engage in realbrokerage is an activity that is financial Associate General Counsel (202/452– 2estate brokerage activities. Thein nature or incidental to a financial 3583), or Mark E. Van Der Weide, National Association of Realtorsactivity and therefore permissible for Counsel (202/452–2263), Legal Division; (‘‘NAR’’) has urged the Agencies not tofinancial holding companies and Board of Governors of the Federal determine that real estate brokeragefinancial subsidiaries of national banks. Reserve System, 20th Street and activities are financial in nature orThe Board and the Secretary also jointly Constitution Avenue, NW., Washington, incidental to a financial activity.propose to solicit comment on whether DC 20551. For users of The GLB Act directs the Board toreal estate management activities could Telecommunications Device for the Deaf consider a variety of factors whenbe considered financial in nature or (‘‘TDD’’) only, contact Janice Simms at considering a request for aincidental to a financial activity. The 202/872–4984. determination that an activity isBoard’s proposed rule would amend Department of the Treasury: Gerry financial in nature or incidental to asubpart I of the Board’s Regulation Y to Hughes, Senior Financial Analyst (202/ financial activity, including (i) theadd real estate brokerage and real estate 622–2740); Roberta K. McInerney, purposes of the BHC Act and the GLBmanagement to the list of activities Assistant General Counsel (Banking and
permissible for financial holding Finance) (202/622–0480); or Gary W. 1 The exceptions are engaging as principal in
companies. The Secretary’s proposed Sutton, Senior Banking Counsel (202/ certain insurance underwriting activities, real estate
rule would amend its financial investment and development (unless otherwise622–0480).
expressly authorized by law), and merchantsubsidiary regulations to add real estate
SUPPLEMENTARY INFORMATION: banking activities permitted in 12 U.S.C.brokerage and real estate management to
1843(k)(4)(H) or (I). 12 U.S.C. 24a(a)(2)(B).Backgroundthe activities permissible for financial
2 The New York Clearing House Association
subsidiaries of national banks. The The Gramm-Leach-Bliley Act (Pub. L. submitted its request on behalf of The Bank of New
Board and the Secretary solicit comment York Company, Inc.; Chase Manhattan Corporation;106–102, 113 Stat. 1338 (1999)) (‘‘GLB
Citigroup, Inc.; J.P. Morgan, Inc.; Bankers Truston all aspects of the proposal. Act’’) amended the Bank Holding
Company; Fleet Boston, Inc.; HSBC; Bank One
DATES: Comments must be received by Company Act (12 U.S.C. 1841 et seq.) Corporation; First Union Corporation; and Wells
March 2, 2001. (‘‘BHC Act’’) to allow a bank holding Fargo & Company.
VerDate 11<MAY>2000 15:35 Jan 02, 2001 Jkt 194001 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\03JAP1.SGM pfrm11 PsN: 03JAP1308 Federal Register/Vol. 66, No. 2/Wednesday, January 3, 2001/Proposed Rules
Act; (ii) the changes or reasonably are financial in nature or incidental to connection with a real estate
expected changes in the marketplace in a financial activity. The Board’s transaction; negotiating price and other
which FHCs compete; (iii) the changes proposed rule would amend § 225.86 of terms on behalf of parties to a real estate
or reasonably expected changes in the the Board’s Regulation Y to add these transaction; and administering the
technology for delivering financial two new activities to the list of activities closing to a real estate transaction. Real
services; and (iv) whether the proposed permissible for FHCs. Bank holding estate brokerage generally does not
activity is necessary or appropriate to companies and foreign banks that involve purchasing or selling real estate
allow a FHC to compete effectively with qualify as FHCs would be permitted to as principal. The b