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F ed er a l R eserve Ba n k o f D allas
DALLAS, TE X A S

75222

Circular No. 72-22^
October 3, 1972

INTERPRETATION OF REGULATION Y
(Nonbank Activities)

To All Banks, Bank Holding Companies, and Others
Concerned, in the Eleventh Federal Reserve District:

On May 8 , 1972, this Bank forwarded, to you under
Circular No. 72-87 a copy of an interpretation of Regulation Y.
The interpretation listed those activities that the Board, deter­
mined to be not "closely related, to banking or managing or
controlling banks as to be a proper incident thereto”. Since
that time, the Board has added three other activities to that
list.
The Board’s amended interpretation incorporates these
additions as paragraphs (f), (g), and (h), thereby adding to the
list of nonpermissible activities the activities of management
consulting, property management, and operation of savings and.
loan associations. Please note, however, that paragraph (a) has
been amended to change the words "Equity funding" to read.
"Insurance premium funding" so as to avoid confusion from the
claimed right to a service mark by a company engaged in this
activity.

72-87.
side.

This amended interpretation supersedes Circular No.
A copy of the interpretation is printed on the reverse

Yours very truly,
P. E. Coldwell,
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

BOARD OF GOVERNORS OF THE FEDERAL RESERVE BANK SYSTEM

BANK HOLDING COMPANIES

INTERPRETATION OF REGULATION Y

Interpretation Section 225.126 is am ended to
read as follows:
S EC T IO N 225.126 A C T IV IT IE S N O T C L O SE ­
L Y R E L A T E D TO B A N K IN G .
P ursuant to section 4 ( c ) ( 8 ) of the Bank H old­
ing C om pany A ct and § 2 2 5 .4 (a ) of Regulation
Y, the Board of G overnors has determ ined that
the following activities are not so closely related
to banking o r m anaging or controlling banks as
to be a p roper incident thereto:

(c)
(d )
(e)
(f)
(g)
(h )

Real estate brokerage.
L and development.
Real estate syndication.
M anagem ent consulting.
Property m anagement.
O peration of savings and loan associations.*

*As indicated in its statement announcing this action,
published in the Federal Register of August 10, 1972
(37 F.R. 16133), this activity may be the subject of
further consideration by the Board.

(a) Insurance prem ium funding — that is, the
com bined sale of m utual funds and insurance.
(b ) U nderw riting life insurance that is not sold
in connection with a credit transaction by a bank
holding com pany, or a subsidiary thereof.

♦
9 /2 9 /7 2

*

* * *


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102