DOCSLIB.ORG

Accomptable Notes, 5 Accounting Arbitrage, 293–4 African

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Accomptable Notes, 5 Accounting Arbitrage, 293–4 African Index accomptable notes, 5 Bagehot, Walter, 1–4, 7, 99, 202 accounting arbitrage, 293–4 Baker, James, 170 African Development Bank, 182 balance of payments, 8, 10, 11, 18, 117, 147, aggregate money supply, 285 149, 160, 162–4, 169, 170, 177, 179, innovation in composition of, 291–3, 312 180, 182, 196 Agricultural Adjustment Administration adjustment, 112, 113, 158, 159, 162, (AAA), 70, 72, 241, 245, 246, 287, 288, 193–4, 195 300, 302 crisis, 76 Agricultural Bank, 136 deficits, 110, 162, 163, 194, 197 Aid to Dependent Children (ADC), 247 equilibrium, 110 Aid to the Blind (AB), 247 shocks, 114 AIG, 234 surpluses, 110, 194 fall of, 213 Bank Charter Act of 1844, 1, 7 Aldrich–Vreeland Act, 94 bank crises, 18–23 Allied Irish bank, 87 Bank for International Settlements (BIS), 12 Applegarth, Adam, 271, 274, 276, 277 bank holding companies (BHCs), 297–9 arbitrage, 80, 108, 118, 206, 221, 283, 287, 291, Bank Holding Company Act, 103 312 Banking Act of 1935, 100 accounting, 293–4 Banking Act of 1979, 12 capital, 293–4 banking industry, 25–6 gold-point, 109, 113 banking instability, changing perceptions of, limited arbitrage, bubbles due to, 32–3 20–3 tax, 293–4 bank loans, 39, 263 Argentine financial crisis, 176–7 Bank of America Corporation, 213 ASEAN + 3, 199 Bank of Credit and Commerce International Asian Currency Unit, 199 (BCCI), 13 Asian Development Bank, 199 Bank of England (BoE), 1–2, 5–16, 45, 111, Asian financial crisis of 1997–98, 172–5 113, 117, 149, 251–7, 260, 261, 263, Asian Monetary Fund, 199 264, 266, 267 asset-backed commercial paper (ABCP) Asset Purchase Facility, 254 conduits, 286–7, 290, 293, 298 independent and focused, 14–16 reforms relating to, 306–7 Monetary Policy Committee (MPC), 252–3, asset-backed securities (ABS), 286, 294, 263, 264 297–300, 302, 303, 306 objectives and functions, evolution of issuers, 287–8, 297 (1694–1914), 5–8 private-label, 307 Quarterly Bulletin, 255 warehousing, 297 as subservient Bank (1914–1992), 8–14 Asset Purchase Facility (APF), 254 Bank of England Act of 1694, 5 asset quality, of shadow banking, 301–3 Bank of England Act of 1697, 5 Association of South East Asian Nations Bank of France, 111, 113 (ASEAN), 199 Bank of Ireland, 6, 87 asymmetric information bubbles, 31–2 Bank of Japan (BoJ), 221–3, 253, 255–7, ‘availability of credit’ doctrine, 90, 102, 334 259, 266 342 Index Bank of Montreal, 19 Bundesbank, 14 Bank of Scotland, 6 Bureau of Labor Statistics (BLS), 98 Bank of United States, 21 Burns, Arthur F., 103 Bank Rate, 111, 114, 117, 251, 253 Bush, George, 237 Bankruptcy Amendments and Federal Judgeship Act of 1984, 289 CAC 40, 257 Banque Générale, 211 call market (CM), 209 Baring Brothers and Co., 7 Camdessus, Michel, 181 Barings, 13 capital Basel accords of 1988, 26 account liberalization, 41 Basel II, 275–7, 281 arbitrage, 293–4 Market Risk Amendment of, 309 controls, 39–42 Basel Committee on Banking Regulation and benefits of, 40 Supervisory Practices, 12 costs of, 40 Bear Stearns, 303, 305 empirical evidence on, 40–2 subprime mortgage loans, 324, 325, 332 history of debate, 39–40 Bernanke, Ben, 237 mobility, 198 biases requirements, for securitisation exposures, amplifying, 207–8 309–10 attenuating, 206 capitalism, money manager, 233–9 deflation, 224–6 Carter, Jimmy, 104 inflation, 224 Case–Shiller repeat-sales index, 332 ‘Big Bang’,12 CBOE Internet Index, 28 Black, William, 236 Central Bank of Greece, 123 Blunden, George, 12 Cerberus, 280 Blunden Committee, 12 Chiang Mai Initiative, 178, 199 BNP Paribas, 287, 325 Chicago Board Options Exchange, 104 Bradford & Bingley, 273, 278, 280 Chicago Mercantile Exchange, 205 Brady Plan, 170, 174 Citigroup, 286 branch banking, 6, 19 Civilian Conservation Corps (CCC), 244, 245 branching liberalization, 26 Civil Works Administration (CWA), 244 Bretton Woods system, 10, 39, 169, 170, 192, clearing houses, 20 199, 201, 251 Clearing Union, 158–60 collapse of, 163, 183 Clinton, Bill, 106 consequences of, 161–2 Clough, Arthur Hugh, 1 evolution of, 196–7 collateralised loan obligations (CLOs), 286, intentions of, 158–60 288, 298, 399 new, 198–9 collateralised mortgage obligations (CMOs), Bryce, Lord, 1 286, 288 Bubble Act, 323 collateralized debt obligations (CDOs), 70, 235, bubbles, 28–35, 89–93, 207, 208 286–8, 294, 297, 299–303, 325–6, 330, asymmetric information, 31–2 332 bubble-riding hypothesis, 33 collective action clauses (CACs), 86, 174–5 experimental evidence, 34–5 collective bargaining, 3, 134, 241, 246–7 heterogeneous beliefs, 33–4 commercial banks in history, 37–8 shadow credit intermediation, 297–9 due to limited arbitrage, 32–3 Commercial Paper Funding Facility, 253 Mississippi Bubble, 28, 37, 316 commercial real estate (CRE) bonds, 294 rational, under symmetric information, 28–31 Commission and Committee of European South Sea Bubble, 28, 37, 207, 316, 321–3 Banking Supervisors (CEBS), 85 speculative, 316–18 Committee on Currency and Foreign theory, 327–8, 332–4 Exchange, 8 Index 343 commodity bubble, 29 reduction, 125 Compagnie des Indes, 212 sovereign, 18, 77, 87, 172, 253, 261, 263 Compagnie d’Occident, 211–12 sustainability, 76 contagion, bankruptcy and, 216–17 debt-deflation hypothesis, 155 contingency clause, of convertibility deflation bias, 224–6 conversion, 111, 115 deposit insurance, 21–2, 25 Contingent Credit Lines (CCL), 177 Depository Institutions Deregulation and continuous double auction (CDA) market, 204, Monetary Control Act, 104 205, 209 Depository Trust Clearing Corporation Cooke, Peter, 12 (DTCC), 287 Cooke Committee, 12 de Rato, Rodrigo, 182 corporate bond market, credit rating agencies discounting effect, 206 in, 71–2 Discount Office, 12 corset, abolition of, 13 discretionary monetary policy, resumption of, cost(s) 101–3 of capital controls, 40 disposition effect, 206 induced, 204 dissecting financial markets, 205–6 cost-push theory, 13 Dodd–Frank Wall Street Reform and Covered Bond Purchase program (CBPP), 254 Consumer Protection Act of 2010 credible commitment (DFA), 218, 306 to convertibility, 111–13 Orderly Liquidation Authority (OLA), 214, implications of, 113 215, 219, 307 credit, 2‘availability of credit’ doctrine, 102 Section 932A, 311 crunch chronology, 44–69 Section 941, 311 hedge funds, 297 Section 942, 310, 311 market reforms, 311–12 Title II, 219 ratings, over-reliance on, 294–5 Dragnet, 213 tranches, 160 Dutch disease, 40 union, 160, 172, 179 DVP (delivery versus payment) repo, 289, 305 credit default swaps (CDS) market, 213, 216, dynamic stochastic general equilibrium (DSGE) 217, 235, 300 model, 155, 156, 259 credit rating agencies (CRAs), 70–3, 311–12 in corporate bond market, 71–2 Eccles, Marriner, 100, 101 history of, 70 Economist, The,1,4 industry structure, important aspects of, 70–1 EC Snake, 197, 199 structured finance markets, 72–3 écus de banque, 211 Credit Rating Agency Reform Act of 2006, 312 electoral cycles, 131–2 Crockett, Andrew, 184 emergency relief, 243–5 Crockett Committee, 184–5 ‘employer of last resort’ program, 238–9 Cunliffe Committee Report, 8 errors currency crises, 75–8 amplifying, 207–8 models, 79–82 attenuating, 206 Current Account deficits, 125–7, 130 Eurodollar, 12 current account problems, crises with, 77 European Central Bank (ECB), 84, 86, 119, 168, 254–5, 267 Darling, Alistair, 273, 280 Covered Bond Purchase program, 254 DAX 30, 257 Main Refinancing Rate, 251, 253, 263 debt Securities Markets Programme, 254 crises, 18, 75, 169–70 Stability and Growth Pact, 199 deflation, 155, 230–4, 236 European Community Support Framework, escalation, 120–3 134 management, 10 European Currency Unit (ECU), 76, 199 344 Index European Financial Stability Facility (EFSF), Federal Reserve Act, 94, 100 85–8 Federal Reserve Bank of New York, 218, 307 European Financial Stabilization Mechanism Federal Reserve System, 19, 94–107, 148, 149, (EFSM), 85, 86, 88 152, 232, 242 European Monetary System (EMS), 199 discretionary monetary policy, resumption crises of 1992 and 1993, 76 of, 101–3 exchange rate mechanism, 14, 164 early years of, 94–8 European Monetary Union, 199–200 financial deregulation, 104–7 European Stability Mechanism (ESM), 86, 88 flexible exchange rates, 103–4 European Union (EU), 119, 135, 167 recovery, Second World War and, 101 Eurozone, 119, 120, 124, 126–30, 135, 136, responding to Great Depression, 98–9 139–41, 199, 251–3 restructuring, 99–101 crisis 2010, 84–93 Fforde, John, 11 chronology of, 84–9 Financial Accounting Standards (FAS), 306, root causes of, 89–93 310 quantitative easing, 251–3, 255, 258, 263–4 Financial Accounting Standards Board (FASB), ex ante buffer, 308–9 293, 306 exchange controls, administration of, 11, 12 financial crisis of 2007–2009, 72–3, 237 exchange rate mechanism (ERM), 14, 76 financial deregulation, 104–7 alternative, 192–3 financial excesses, crises of, 77, 78 Exchequer bill, 5–7 financial instability hypothesis, 230 expectations Financial Sector Assessment Program (FSAP), rational expectations theory, 37 166 shaping, 226–8 Financial Services Authority (FSA), 273–9, 281 experimental tests, 31 Tripartite Committee, 274 ex post buffer, 309 Financial Services Modernization Extended Financing Facility (EFF), 179, 180 (Gramm–Leach–Bliley) Act, 106 Extended Structural Adjustment Facility Financial Stability Board (FSB), 291 (ESAF), 180 Financial Stability Oversight Council (FSOC), external deficits, role in financial crisis, 130 308 financing, 194 Fair Labor Standards Act of 1938 (FSLA), 247 versus adjustment mechanisms, 194–5 Fannie Mae, 213, 254, 324 official, 194 Farm Credit Administration (FCA), 245 private, 194 farm programmes,
Load more

Recommended publications
  • The Bank Holding Company Act of 1956
    THE BANK HOLDING COMPANY ACT OF 1956 T HE Bank Holding Company Act of 1956,1 designed principally to regulate the expansion of bank holding companies and to insure the separation of banking and nonbanking enterprises,' is perhaps the most important banking legislation of the past two decades. The im- mediate economic consequences of the act are themselves deserving of comment, 3 but, even more significantly, the act represents the first comprehensive congressional action with regard to multiple banking through the use of the holding company. Though of comparatively recent origin,4 the bank holding company device has become as prom- inent as both the other forms of multiple banking, chains5 and branches,6 largely because of the economic inadequacies of the former 7 and the legal restrictions imposed upon the latter.8 A brief historical survey of bank holding company -development will serve to highlight an analysis of the act itself. Historically, the independent, unit bank, with its welfare dependent upon the economic health of the small area it serves, has too frequently been unable to withstand the adverse affect of even brief, localized eco- nomic depression2 Particularly in the small towns of the agrarian West and South during the i92O's and 193O's, bank suspensions occurred at an astonishing rate." Some form of multiple banking which could 70 STAT. 133, 12 U.S.C.A. §§ 1841-48 (Supp. 1956). sS. REP. No. 1095, 84 th Cong., ist Sess. 2 (.955). s See note 131 infra. 'The first independently capitalized bank holding company was the Marine Ban- corporation organized in Seattle, Washington in 1927.
    [Show full text]
  • Blackrock, Inc
    February 13, 2012 BY ELECTRONIC SUBMISSION Department of the Treasury Securities and Exchange Commission Office of Domestic Finance 100 F Street, N.E. 1500 Pennsylvania Avenue, N.W. Washington, D.C. 20549 Washington, D.C. 20520 Re: File Number S7-41-11 Board of Governors of the Federal Reserve System Office of the Comptroller of the Currency 20th Street and Constitution Avenue, N.W. 250 E Street, S.W. Washington, D.C. 20551 Washington, D.C. 20219 Re: Docket No. R-1432 and RIN 7100-AD82 Re: Docket ID OCC-2011-14 Federal Deposit Insurance Corporation Commodity Futures Trading Commission 550 17th Street, N.W. 1155 21st Street, N.W. Washington, D.C. 20429 Washington, D.C. 20581 Re: RIN 3064-AD85 Re: RIN 3038-AD05 RE: Notice of Proposed Rulemaking Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships with, Hedge Funds and Private Equity Funds Dear Sir or Madam: BlackRock, Inc. appreciates the opportunity to provide comments on the new Section 13 (the “Volcker Rule”) of the Bank Holding Company Act of 1956 (the “BHC Act”) to the regulatory agencies (the “Agencies”) charged with its implementation.1 BlackRock is an independently-managed public company (NYSE: BLK) that engages solely in providing asset management and risk management services to its clients. We manage over $3.5 trillion on behalf of institutional and individual clients worldwide through a variety of equity, fixed income, cash management, alternative investment, real estate and advisory products. Our client base includes corporate, public and multi-employer pension plans, insurance companies, mutual funds and exchange-traded funds, endowments, foundations, charities, corporations, government and other official institutions, banks and individuals around the world.
    [Show full text]
  • FEDERAL RESERVE SYSTEM 12 CFR Part 217 Regulation Q Docket
    FEDERAL RESERVE SYSTEM 12 CFR Part 217 Regulation Q Docket No. R-1506 RIN 7100–AE 27 Regulatory Capital Rules: Regulatory Capital, Final Rule Demonstrating Application of Common Equity Tier 1 Capital Eligibility Criteria and Excluding Certain Holding Companies from Regulation Q AGENCY: Board of Governors of the Federal Reserve System. ACTION: Final rule. SUMMARY: The Board of Governors of the Federal Reserve System (Board) is adopting amendments to the Board’s regulatory capital framework (Regulation Q) to clarify how the definition of common equity tier 1 capital, a key capital component, applies to ownership interests issued by depository institution holding companies that are structured as partnerships or limited liability companies. In addition, the final rule amends Regulation Q to exclude temporarily from Regulation Q savings and loan holding companies that are trusts and depository institution holding companies that are employee stock ownership plans. DATES: The final rule is effective January 1, 2016. Any company subject to the final rule may elect to adopt it before this date. FOR FURTHER INFORMATION CONTACT: Juan Climent, Manager, (202) 872-7526, Page Conkling, Senior Supervisory Financial Analyst, (202) 912-4647, Noah Cuttler, Senior Financial Analyst, (202) 912-4678, Division of Banking Supervision and Regulation, Board of Governors of the Federal Reserve System; or Benjamin McDonough, Special Counsel, (202) 452-2036, or Mark Buresh, Senior Attorney, (202) 452-5270, Legal Division, 20th Street and Constitution Avenue NW., Washington, DC 20551. Users of Telecommunication Device for Deaf (TDD) only, call (202) 263-4869. SUPPLEMENTARY INFORMATION: I. Background In July 2013, the Board adopted Regulation Q, a revised capital framework that strengthened the capital requirements applicable to state member banks and bank holding companies (BHCs) and implemented capital requirements for certain savings and loan holding companies (SLHCs).1 Among other changes, Regulation Q introduced a common equity tier 1 capital (CET1) requirement.
    [Show full text]
  • Bank Holding Company Supervision Manual
    International Banking Activities Section 2100.0 2100.0.1 FOREIGN OPERATIONS OF banking and financing operations, some of U.S. BANKING ORGANIZATIONS which the parent banks themselves are not per- mitted to undertake under existing laws. These U.S. banking organizations may conduct a wide corporations may act as holding companies, pro- range of overseas activities. The Federal vide international banking services, and finance Reserve has broad discretionary powers to regu- industrial and financial projects abroad, among late the foreign activities of member banks and other activities. bank holding companies (BHCs) so that, in Sections 25 and 25A of the Federal Reserve financing U.S. trade and investments abroad, Act grant Edge Act and agreement corporations these U.S. banking organizations can be com- authority to engage in international banking and petitive with institutions of the host country foreign financial transactions. The Board’s without compromising the safety and soundness Regulation K (12 CFR 211.6) also outlines the of their U.S. operations. permissible activities of Edge and agreement Some of the Federal Reserve’s responsibili- corporations in the United States. Among other ties over the international operations of member activities, these corporations may (1) make for- banks (national and state member banks) and eign investments that are broader than those BHCs include permissible for member banks, and (2) conduct a deposit and loan business in states, including • authorizing the establishment of foreign those where the parent of the Edge or agreement branches of national banks and state member corporation does not conduct such banking banks and regulating the scope of their activi- activities, provided that the business is strictly ties; related to international or foreign business.
    [Show full text]
  • Revisiting the History of Bank Holding Company Regulation in the United States
    2011-2012 THAT WHICH WE CALL A BANK 113 THAT WHICH WE CALL A BANK: REVISITING THE HISTORY OF BANK HOLDING COMPANY REGULATION IN THE UNITED STATES SAULE T. OMAROVA* ** MARGARET E. TAHYAR Introduction ....................................................................... 114 I. Background: Bank Holding Company Regulation in the United States ...................................................................... 117 A. The BHCA Statutory Scheme: Brief Overview ............ 118 B. The Shifting Policy Focus of the BHCA ....................... 120 II. Back to the Beginning: The Birth of the Statute ................ 129 III. Who Is In? The Evolution of the Statutory Definition of “Bank” ............................................................................... 138 A. The 1966 Amendments ................................................. 139 B. The 1970 Amendments ................................................. 142 C. The Competitive Equality Banking Act of 1987 ........... 153 IV. Who Is Out? Exemptions from the Definition of “Bank” under the BHCA ................................................................. 158 A. Industrial Loan Corporations ........................................ 158 B. Credit Card Banks ......................................................... 169 C. Limited Purpose Trust Companies ................................ 173 D. Credit Unions ................................................................ 174 E. Savings Associations ..................................................... 179 V. Looking Back, Thinking Forward:
    [Show full text]
  • Regulating the Investment Banks and Gses After the Subprime Crisis
    1 Regulating the Investment Banks and GSEs After the Subprime Crisis Dwight M. Jaffee Haas School of Business, University of California, Berkeley Email: [email protected] Date: October 23, 2008 1. Introduction This paper offers a framework and a specific proposal for the re-regulation of the US investment banks and the government sponsored enterprises (GSEs, that is, Fannie Mae and Freddie Mac) in the aftermath of the subprime mortgage crisis. The largest investment banks are now all operating within bank holding company structures, but the regulatory issues remain; indeed, the bank holding company structure makes it more important than ever to deal with the regulatory issues of the investment banks.1 It may seem optimistic to refer to the subprime crisis in the past tense, but I believe this will soon be true, and that Congress and the new Administration will give their highest priority to the re-regulation of the US financial system. US financial history is replete with examples of a dialectic in which financial sector innovations create financial crises and financial crises create new regulatory structures. In both directions, we find an admirable record of success. First, financial system regulation has invariably responded to crises created by new financial market innovations, and almost always with long-lasting benefits. The following are examples of the impressive track record of regulatory responses to past financial crises: • The National Bank Act of 1863 created federal chartering and regulation of commercial banks to control “wildcat banking.” This legislation also created the Treasury Department and the Office of the Comptroller of the Currency.
    [Show full text]
  • Federal Reserve Bank of Richmond Annual Report
    Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis C C r M ID A I D C C C D \ /C D A KHZ' r^C. D \i^LJ k A f~\k ir\ y i— I Nix i i\i^i i/viwi nl/ 59 th ANNUAL REPORT 1973 CONTENTS 4 RECENT TRENDS IN BANKING 31 HIGHLIGHTS 35 Summary of Operation 36 COMPARATIVE STATEMENT 36 Condition 37 Earnings and Expenses 38 DIRECTORS 39 OFFICERS 40 BRANCH DIRECTORS Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis TO OUR MEMBER BANKS: We are pleased to present the 1973 Annual Report of the Federal Reserve Bank of Richmond. The report’s feature article reviews recent trends in commercial banking-. The report also includes highlights of the year’s operations, comparative financial statements, and current lists of officers and directors of our Richmond, Baltimore, Charlotte, Columbia and Culpeper offices. On behalf of our directors and staff, we wish to thank you for the cooperation and support you have extended to us throughout the past year. Sincerely yours, Chairman of the Board President Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis REGENT TRENDS IN BANKING The history of banking in the United States has been one of almost constant change, from the days of “wildcat” banking in the early and mid-nineteenth century (when some state constitutions prohibited bank­ ing), through the establishment of the National Banking System during the Civil War, the financial panics of the late nineteenth and early twentieth centuries, the creation of the Federal Reserve System, and the collapse of the banking system in the 1930’s.
    [Show full text]
  • Bank Regulatory Law Gramm-Leach-Bliley
    LAW OFFICES OF BURTON L. RAIMI, P.A. 8499 South Tamiami Trail • Suite 266 • Sarasota, Florida 34238 • (941) 927-1603 • (941) 927-1703 (fax) Bank Regulatory Law Gramm-Leach-Bliley Act Making the New Rules Work for Your Bank Federal Law I. BANK HOLDING COMPANY - TRADITIONAL A. Statutes and regulations, that existed prior to G-L-B, continue to apply, and limit, the activities of a traditional bank holding company that has determined not to elect to be a financial holding company. B. A bank holding company, or a non-depository institution subsidiary, is allowed to sell insurance in a place of 5,000 people but only to those people located in that place. II. FINANCIAL HOLDING COMPANY — RELEVANT PROVISIONS OF G-L-B ACT A. Gramm-Leach-Bliley Act amended Section 4 of the Bank Holding Company Act by adding a new subsection (k) that provides: "a financial holding company may engage in any activity, and may acquire and retain the shares of any company engaged in any activity, that the Federal Reserve Board … determines … to be financial in nature or incidental to such financial activity; or is complementary to a financial activity and does not pose a substantial risk to the safety or soundness of the depository institutions or the financial system generally." B. Section 4(k)(3) provides the factors the FRB is to consider when determining whether an activity is financial in nature or incidental to a financial activity. C. Section 4(k)(4) lists activities that Congress deemed, as of the date of enactment of G-L-B Act, to be financial in nature.
    [Show full text]
  • Rules and Regulations Federal Register Vol
    10703 Rules and Regulations Federal Register Vol. 86, No. 34 Tuesday, February 23, 2021 This section of the FEDERAL REGISTER Review Examiner, (508) 698–0361, nonmember banks,1 including industrial contains regulatory documents having general Extension 8027, [email protected]; Don banks and industrial loan companies applicability and legal effect, most of which Hamm, Special Advisor, (202) 898– (together, ‘‘industrial banks’’).2 In are keyed to and codified in the Code of 3528, [email protected]; Patricia granting deposit insurance, issuing a Federal Regulations, which is published under Colohan, Associate Director, Risk non-objection to a change in control, or 50 titles pursuant to 44 U.S.C. 1510. Management Examinations Branch, approving a merger, the FDIC must 3 The Code of Federal Regulations is sold by (202) 898–7283, [email protected], consider the factors listed in sections 6, the Superintendent of Documents. Division of Risk Management 7(j),4 and 18(c),5 respectively, of the Supervision. Federal Deposit Insurance Act (FDI Act). Congress expressly made all industrial FEDERAL DEPOSIT INSURANCE SUPPLEMENTARY INFORMATION: banks eligible for Federal deposit CORPORATION 6 Table of Contents insurance in 1982. As deposit insurer and as the appropriate Federal banking 12 CFR Part 354 I. Policy Objectives agency for industrial banks, the FDIC RIN 3064–AF31 II. Background supervises industrial banks. A key part A. History of its supervision is evaluating and Parent Companies of Industrial Banks B. Industrial Bank Exclusion Under the mitigating the risks arising from the and Industrial Loan Companies BHCA activities of the control parties and C. Industry Profile owners of insured industrial banks to AGENCY: Federal Deposit Insurance D.
    [Show full text]
  • Bank Holding Company (As Defined in Sec- Trolling Voting Shares of a Bank Is a Bank Tion 1841(O)(7) of This Title)’’
    Page 1177 TITLE 12—BANKS AND BANKING § 1841 which is another State and, for purposes of (A) the company directly or indirectly or this section, includes a foreign bank, the home acting through one or more other persons State of which is another State. owns, controls, or has power to vote 25 per centum or more of any class of voting securi- (Pub. L. 103–328, title I, § 109, Sept. 29, 1994, 108 ties of the bank or company; Stat. 2362; Pub. L. 106–102, title I, § 106, Nov. 12, (B) the company controls in any manner the 1999, 113 Stat. 1359.) election of a majority of the directors or REFERENCES IN TEXT trustees of the bank or company; or (C) the Board determines, after notice and This title, referred to in subsecs. (a), (d), and (e)(4), is title I of Pub. L. 103–328, Sept. 29, 1994, 108 Stat. 2339, opportunity for hearing, that the company di- which enacted this section and sections 43, 215a–1, and rectly or indirectly exercises a controlling in- 1831u of this title, amended sections 30, 36, 215, 215a, fluence over the management or policies of the 215b, 1462a, 1820, 1828, 1831a, 1831r–1, 1841, 1842, 1846, 2906, bank or company. 3103 to 3105, and 3106a of this title and section 1927 of (3) For the purposes of any proceeding under Title 7, Agriculture, enacted provisions set out as notes under sections 215, 1811, 1828, 3104, 3105, and 3107 of this paragraph (2)(C) of this subsection, there is a title and section 1927 of Title 7, and amended provisions presumption that any company which directly set out as a note under section 1811 of this title.
    [Show full text]
  • I. Introduction This Work Aims to Show That the Present Banking Regulations
    2009-2010 BANKING REGULATION: COMPARING U.S. & ITALY 405 TOWARD AN EVOLUTIONARY THEORY OF BANKING REGULATION: THE UNITED STATES AND ITALY IN COMPARISON LEONARDO GIANI♦ & RICCARDO VANNINI♥ I. Introduction∗ This work aims to show that the present banking regulations of two very different countries—the United States and Italy—can be viewed as two outcomes of the same evolutionary path. Let us start by quoting a leading American scholar of banking law: ♦ Leonardo Giani currently works as an Attorney at Law in Italy and he is a Fellow in Business Law (Cultore della materia in diritto commerciale) at the University of Florence School of Law. In 2004, he earned an L.L.B. at the Bocconi University of Milan School of Law; in 2008, an M.Sc. in Law and Economics at the University of Siena School of Economics; and, in January 2010, a Ph.D. in Law and Economics at the University of Siena School of Economics. In the past he was a Visiting Scholar at the Boston University School of Law during the spring semester of 2007 and he worked in the capacity of Financial Supervision Expert at the European Central Bank. ♥ Riccardo Vannini is currently a Research Fellow at I-Com (www.i-com.it) and a Ph.D. candidate in Law and Economics at the University of Siena School of Economics. He earned an M.A. in Economics in 2004 and an M.Sc. in Law and Economics in 2008, both at the University of Siena School of Economics. ∗ The authors wish to thank Leandro Conte, Luca Fiorito, Tamar Frankel, Antonio Nicita, Lorenzo Stanghellini and Marco Ventoruzzo for their helpful comments.
    [Show full text]
  • Bank Holding Company Supervision Manual 1010.0
    About this Manual Section 1000.0 PURPOSE AND THE ROLE OF should not be considered a legal reference docu- GUIDANCE ment. Questions concerning the applicability of and compliance with federal laws and regula- The Bank Holding Company Supervision tions should be referred to appropriate legal Manual is prepared by Federal Reserve supervi- counsel. sion personnel to provide guidance to examiners as they conduct inspections of bank holding companies (BHCs) and their nonbank subsidi- aries as well as savings and loan holding compa- USE OF THE MANUAL nies (SLHCs). The manual is a compilation of formalized procedures and Board supervisory The Bank Holding Company Supervision policies that examiners and supervision person- Manual is presented in “sections” which have nel should follow for the supervision of these been grouped together into “parts” that have in organizations. It also discusses the relevant stat- common a central theme pertaining to holding utes, regulations, interpretations, and orders that company supervision. For example, Part I pro- pertain to holding company supervision. The vides an overview of the supervisory process of manual enhances the staff’s ability to implement holding companies. Part II is composed of sec- the Board’s inspection, supervisory, and moni- tions that discuss topics of special interest for toring activities, which is integral to the Federal supervisory review. Part III is composed of sec- Reserve’s supervision program for organiza- tions that discuss the various exemptive provi- tions operating under a holding company struc- sions to the nonbank prohibitions of the BHC ture. This manual is periodically updated on the Act. Part IV presents sections on the preparation Board’s public website to reflect the latest super- of a financial analysis.
    [Show full text]