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l l★K

Federal Reserve Bank
of Dallas

January 10, 2001

DALLAS, TEXAS
75265-5906

Notice 01-05
TO: The Chief Executive Officer of each

financial institution and bank holding company
in the Eleventh Federal Reserve District

SUBJECT
Joint Interim Rules and
Request for Public Comment Regarding Three Types of
Activities Defined as Financial in Nature
DETAILS
The Board of Governors and the Secretary of the Treasury have requested public
comment on interim rules that would implement section 4(k)(5) of the Bank Holding Company
Act and section 5136A(b)(3) of the Revised Statutes, as enacted by the Gramm-Leach-Bliley
Act.
The rules find three general types of activities to be financial in nature and create a
mechanism by which financial holding companies, financial subsidiaries of national banks, or
others may request that the Board or the Secretary, respectively, define particular activities
within one of the three categories. The Board and the Secretary solicit comments on all aspects
of the interim rule and will modify the final rule as appropriate in response to the comments
received.
The Board must receive comments by February 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 regs.comments@federalreserve.gov. All comments should refer to Docket No.
R-1094.
ATTACHMENT
A copy of the Board’s notice as it appears on pages 257–61, Vol. 66, No. 2 of the
Federal Register dated January 3, 2001, is attached.

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 (800) 333-4460; El Paso Branch Intrastate (800) 592-1631, Interstate (800) 351-1012;
Houston Branch Intrastate (800) 392-4162, Interstate (800) 221-0363; San Antonio Branch Intrastate (800) 292-5810.

-2MORE INFORMATION
For more information, please contact Rob Jolley, Banking Supervision Department, at
(214) 922-6071. For additional copies of this Bank’s notice, contact the Public Affairs Department at (214) 922-5254 or access District Notices on our web site at
http://www.dallasfed.org/banking/notices/index.html.

Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations
FEDERAL RESERVE SYSTEM
12 CFR Part 225
[Regulation Y; Docket No. R–1094]

Bank Holding Companies and Change
in Bank Control
DEPARTMENT OF THE TREASURY
Office of the Under Secretary for
Domestic Finance
12 CFR Part 1501
RIN 1505–AA85

Financial Subsidiaries
AGENCY: Board of Governors of the
Federal Reserve System and Department
of the Treasury.
ACTION: Joint interim rule with request
for public comments.
SUMMARY: The Board of Governors of the
Federal Reserve System and the
Secretary of the Treasury (the Agencies)
are soliciting comment on interim rules
that would implement section 4(k)(5) of
the Bank Holding Company Act and
section 5136A(b)(3) of the Revised
Statutes, as enacted by the GrammLeach-Bliley Act. The interim rules find
three general types of activities to be
financial in nature, and create a
mechanism by which financial holding
companies, financial subsidiaries of
national banks, or others may request
that the Board or the Secretary,
respectively, define particular activities
within one of the three categories.
The Board and the Secretary solicit
comments on all aspects of the interim
rule and will modify the final rule as
appropriate in response to the
comments received.
DATES: The interim rule is effective on
January 2, 2001. Comments must be
received by February 2, 2001.
ADDRESSES: Comments should refer to
Docket No. R–1094, and may be mailed
to Ms. Jennifer J. Johnson, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue, NW., Washington,
DC 20551 or mailed electronically to
regs.comments@federalreserve.gov and
to Three Financial Activities Regulation,
Office of Financial Institution Policy,
U.S. Department of the Treasury, 1500
Pennsylvania Avenue, NW., Room SC
37, Washington, DC 20220 (or mailed
electronically to
financial.institutions@do.treas.gov).
Comments addressed to Ms. Johnson
also may be delivered to Room B–2222
of the Eccles Building between 8:45 a.m.
and 5:15 p.m. weekdays or delivered to

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the guard station in the Eccles Building
Courtyard on 20th Street, NW. (between
Constitution Avenue and C Street, NW.)
at any time. All comments received at
the above address will be available for
inspection and copying by any member
of the public in the Freedom of
Information Office, Room MP–500 of the
Martin Building, between 9:00 a.m. and
5:00 p.m. weekdays, except as provided
in § 261.14 of the Board’s Rules
Regarding the Availability of
Information (12 CFR 261.14). Comments
addressed to the Treasury Department
may also be delivered to the Treasury
Department mail room between the
hours of 8:45 a.m. and 5:15 p.m. at the
15th Street entrance to the Treasury
Building.
FOR FURTHER INFORMATION CONTACT:

Board: Scott G. Alvarez, Associate
General Counsel (202/452–3583), or
Andrew S. Baer, Senior Attorney (202/
452–2246), Legal Division. Users of
Telecommunication Device for Deaf
(TTD) only, contact Janice Simms at
(202) 872–4984.
Department of the Treasury: Gerry
Hughes, Senior Financial Analyst (202/
622–2740); Roberta K. McInerney,
Assistant General Counsel (Banking and
Finance) (202/622–0480); or Gary W.
Sutton, Senior Banking Counsel (202/
622–0480).
SUPPLEMENTARY INFORMATION:
Background
These interim rules implement
section 4(k)(5) of the Bank Holding
Company Act (‘‘BHC Act’’) (12 U.S.C.
1843(k)(5)), which was added to the
BHC Act by section 103 of the GrammLeach-Bliley Act (Pub. L. 106–102, 113
Stat. 1338 (1999)) (the ‘‘GLB Act’’), and
section 5136A(b)(3) of the Revised
Statutes (12 U.S.C. 24a(b)(3)) (‘‘section
5136A’’), as enacted by section 121(a) of
the GLB Act. The GLB Act amended the
BHC Act to allow bank holding
companies and foreign banks that
qualify as financial holding companies
to engage in a broad range of activities
that are defined by the GLB Act to be
financial in nature or incidental to a
financial activity, or that the Board, in
consultation with the Secretary of the
Treasury, determines to be financial in
nature or incidental to a financial
activity.1 Bank holding companies that
do not qualify as financial holding
companies are limited to engaging in
1 The GLB Act also allows financial holding
companies to seek Board approval to engage in any
activity that the Board determines both to be
complementary to a financial activity and not to
pose a substantial risk to the safety and soundness
of depository institutions or the financial system
generally. 12 U.S.C. 1843(k)(1)(B).

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Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations

those nonbanking activities that were
permissible for bank holding companies
prior to the enactment of the GLB Act.
The GLB Act also allowed national
banks to establish ‘‘financial
subsidiaries.’’ A financial subsidiary
may engage in most, but not all,
activities that are financial in nature or
incidental to a financial activity for a
financial holding company under
section 4(k)(4) of the BHC Act (12 U.S.C.
1843(k)(4)), and may engage in
additional activities that are determined
by the Secretary in consultation with
the Board to be financial in nature or
incidental to a financial activity, as well
as in activities that are permissible for
national banks to engage in directly. 12
U.S.C. 24a.
The activities that were defined by the
GLB Act to be financial in nature or
incidental to a financial activity are
generally set forth in section 4(k)(4) of
the BHC Act (12 U.S.C. 1843(k)(4)). In
addition, sections 4(k)(5) of the BHC Act
and 5136A(b)(3) require the Board and
the Secretary, respectively, to define the
extent to which three other generally
described activities are financial in
nature or incidental to a financial
activity. The Board and the Secretary
may act by regulation or order. The
Board must define these activities in a
manner consistent with the purposes of
the BHC Act, and the Secretary must
apply similar standards. The three
activities are:
(i) Lending, exchanging, transferring,
investing for others, or safeguarding
financial assets other than money or
securities;
(ii) Providing any device or other
instrumentality for transferring money
or other financial assets; and
(iii) Arranging, effecting or facilitating
financial transactions for the account of
third parties.
These three categories encompass a
wide range of activities. Included in
these categories are some activities in
which financial holding companies and
national banks and their financial
subsidiaries are already permitted to
engage. For example, these categories
include providing safe deposit services,
electronic funds transfer activities,
credit and stored-value card activities,
securities brokerage activities, as well as
finder activities. The categories were
intended, however, to allow financial
holding companies and financial
subsidiaries to engage in activities that
were not otherwise permitted for these
companies.
The Board and the Secretary therefore
solicit comment regarding what
activities should be defined by rule to
be financial in nature or incidental to a
financial activity for purposes of

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sections 4(k)(5) and 5136A(b)(3). In
addition, the Board and the Secretary
solicit comment on an interim rule that
creates a mechanism, described below,
that would permit agency action by
order on proposals to engage in specific
activities pursuant to section 4(k)(5).
Interim Rule
The Board and the Secretary are
promulgating, on an interim basis, rules
that create a procedure by which a
financial holding company or a
financial subsidiary may obtain a
determination from the Board or the
Secretary, respectively, that a specific
proposed activity does, in fact, fall
within one of the three defined types of
activities.
The interim rules also provide that
the Board and the Secretary will consult
with each other with regard to any
request for such a determination. This
consultation is required by section
4(k)(2)(A) of the BHC Act (12 U.S.C.
1843(k)(2)(A)), which requires the Board
to notify the Secretary of any request
under section 4(k) for a determination of
whether an activity is financial in
nature or incidental to a financial
activity, and by section 5136A(b)(1)(B)
(12 U.S.C. 24a(b)(1)(B)), which requires
similar notification and consultation for
proposals raised before the Secretary.
Following this consultation, the agency
to which the request was made will
promptly issue a written determination
regarding whether the specific proposed
activity falls within one of the three
categories of activities listed in sections
4(k)(5) and 5136A(b)(3). The Board and
the Secretary believe that requiring
financial holding companies and
financial subsidiaries that seek to
engage in particular activities pursuant
to section 4(k)(5) or section 5136A(b)(3)
to file requests with the appropriate
agency for approval of those activities is
necessary at this time because of the
broad scope of the statutory language.
Any request made under the interim
rules for a determination that an activity
falls within one of the three listed
categories must be submitted in writing
to the Board or the Secretary, as
appropriate, and must identify and
define the activity for which the
determination is sought, including a
precise description of what the activity
would involve and how and by what
entity it would be conducted. The
request must also include information
that supports the requested
determination, and in particular
information regarding how the proposed
activity falls into one of the three
categories and any other information
required by the Board or the Secretary.

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In reviewing requests to find that a
specific activity falls within one of the
three categories, the Board and the
Secretary will take into account the
same factors each must consider when
determining whether any activity is
financial in nature or incidental to a
financial activity. These factors include,
among other things, changes in
marketplaces in which financial holding
companies and banks compete, changes
in the technology for delivering
financial services, and whether the
activity is necessary or appropriate to
allow financial holding companies and
their affiliates, or banks and their
subsidiaries, to compete effectively with
any company seeking to provide
financial services in the United States.2
The mechanism for reviewing specific
requests under sections 4(k)(5) and
5136A(b)(3) is being adopted on an
interim basis to allow interested
financial holding companies and
financial subsidiaries to take advantage
of these authorities immediately. The
agencies invite comment on this interim
mechanism.
The Board and the Secretary also
invite comment generally on what, if
any, activities should be defined by rule
to be within the authorities granted by
sections (4)(k)(5) and 5136A(b)(3). In
this regard, the Board’s Regulation Y
currently employs the term ‘‘financial
asset’’ primarily in connection with
securities and precious metals.3 The
Board and the Treasury solicit comment
regarding what other types of assets
should also be considered financial
assets for purposes of section 4(k)(5) and
section 5136A(b)(3). In this regard, the
Board and the Secretary believe that it
would be inconsistent with the
purposes of the GLB Act and the BHC
Act to treat as a financial asset any item
that can be purchased or acquired in
exchange for a financial instrument
such as cash.
Once the appropriate agency has
determined that a particular activity is
financial in nature or incidental to a
financial activity under sections 4(k)(5)
or 5136A(b)(3), either by rule or by
order, other financial holding
companies and financial subsidiaries
would be eligible to engage in the
activity if applicable requirements are
met. A financial holding company must
file a notice with the Board within 30
days after commencement of the
activity, in accordance with section
4(k)(6) of the BHC Act (12 U.S.C.
1843(k)(6)) and section 225.87 of the
Board’s Regulation Y (12 CFR 225.87). A
national bank seeking to engage in the
2 12
3 12

U.S.C. 24a(b)(2) and 1843(k)(3).
C.F.R. 225.28(b)(8)(ii)(B).

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Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations
activity through a financial subsidiary
must file a notice with the OCC in
accordance with section 5136A and
section 5.39(i) of the regulations of the
OCC (12 CFR 5.39(i)). In either case, the
company must conduct the activity in
accordance with the relevant order or
rule.
The Board and the Secretary invite
comment on all aspects of the proposal
and interim rules.
Plain Language
Section 722 of the GLB Act requires
the Board to use ‘‘plain language’’ in all
proposed and final rules published after
January 1, 2000. In light of this
requirement, the Board has sought to
present its proposed rule in a simple
and straightforward manner and has
included in the rule examples of
activities that would be permissible
under the proposed rule. The Board
invites comments on whether there are
additional steps the Board could take to
make the proposed rule easier to
understand.
Regulatory Flexibility Act Analysis
Pursuant to section 605(b) of the
Regulatory Flexibility Act, the Agencies
certify that the interim rules would not
have a significant economic impact on
a substantial number of small entities
within the meaning of the Regulatory
Flexibility Act (5 U.S.C. 601 et seq.).
The interim rules would reduce the
regulatory burden on financial holding
companies and financial subsidiaries of
national banks by permitting them to
engage in an expanded range of
activities, if they choose to do so. The
interim rules would apply to all
financial holding companies and
national bank financial subsidiaries,
regardless of their size. The interim
rules should enhance the ability of
financial holding companies and
financial subsidiaries, including small
financial holding companies and
financial subsidiaries, to compete with
other providers of financial services in
the United States and to respond to
technological and other changes in the
marketplace in which they compete.
Accordingly, a regulatory flexibility
analysis is not required.
Administrative Procedure Act
The provisions of the rule are
effective on January 2, 2001 on an
interim basis. Pursuant to 5 U.S.C. 553,
the Board and the Secretary find that it
is impracticable to review public
comments prior to the effective date of
the interim rule, and that there is good
cause to make the interim rule effective
on January 2, 2001, due to the fact that
the rule sets forth procedures to

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implement statutory changes that
became effective on March 11, 2000.
Specifically, the rule sets forth a
mechanism through which the Board
and the Secretary may act on requests to
find particular activities to be
permissible for financial holding
companies or financial subsidiaries of
national banks pursuant to section
4(k)(5) or 5136A(b)(3). The Board and
the Secretary are seeking public
comment on all aspects of the interim
rule and will amend the rule as
appropriate after reviewing the
comments.
Paperwork Reduction Act
Board: In accordance with section
3506 of the Paperwork Reduction Act of
1995 (44 U.S.C. Ch. 35; 5 CFR 1320
Appendix A.1), the Board reviewed the
interim rule under the authority
delegated to the Board by the Office of
Management and Budget.
The collection of information
requirements in this interim rulemaking
are found in 12 CFR 225.86. This
information is required to evidence
compliance with the requirements of
Title I of the GLB Act, which amends
section 4 of the Bank Holding Company
Act (12 U.S.C. 1843). The respondents
are current and future bank holding
companies and foreign banking
organizations.
The specific written request cited in
12 CFR 225.86(d)(2) provides that a
financial holding company that wishes
to engage in a particular activity
pursuant to section 4(k)(5) of the BHC
Act and 12 CFR 225.86(b)(1) must file a
request with the Board that it find the
proposed activity to fall under one of
the three categories of activities listed in
section 4(k)(5) and 12 CFR 225.86(b)(1).
If the Board has previously determined
that the proposed activity falls under
one of those three categories, no such
request need be made. The request must
include information that specifically
describes the proposed activity, and that
articulates reasons why the activity
should be considered to fall under one
of the three listed activity categories.
There will be no reporting form for this
information collection. The agency form
number for this written request is FR
4012. The Federal Reserve estimates
that approximately 25 financial holding
companies will file the requests for
Board determination during the first
year and that it will take approximately
1 hour to file such request. This would
result in an estimated annual burden of
25 hours.
The OMB control number for this
interim rule is 7100–0292. The Federal
Reserve may not conduct or sponsor,
and an organization is not required to

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respond to this information collection
unless the Board has displayed a valid
OMB control number.
A financial holding company may
request confidentiality for the
information contained in this
information collection pursuant to
sections (b)(4) and (b)(6) of the Freedom
of Information Act (5 U.S.C. 552(b)(4)
and (b)(6)).
Comments are invited on: (a) Whether
the proposed collection of information
is necessary for the proper performance
of the Federal Reserve’s functions,
including whether the information has
practical utility; (b) the accuracy of the
Federal Reserve’s estimate of the burden
of the proposed information collection,
including the cost of compliance; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of information collection on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Comments on the collection of
information should be sent to the Office
of Management and Budget, Paperwork
Reduction Project, Washington, DC
20503, with copies of such comments to
be sent to Mary M. West, Federal
Reserve Board Clearance Officer,
Division of Research and Statistics, Mail
Stop 97, Board of Governors of the
Federal Reserve System, Washington,
DC 20551.
Treasury: This regulation is being
issued without prior notice and public
procedure pursuant to the
Administrative Procedure Act (5 U.S.C.
553). For this reason, the collection of
information contained in this regulation
has been reviewed under the
requirements of the Paperwork
Reduction Act (44 U.S.C. 3507(j)) and,
pending receipt and evaluation of
public comments, approved by the
Office of Management and Budget
(OMB) under control number 1505–
0179. An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by OMB.
Comments concerning the collection
of information should be directed to
OMB, Attention: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, D.C., 20503, with copies to
Gary Sutton, Senior Banking Counsel,
Office of General Counsel, 1500
Pennsylvania Avenue NW., Room 2014,
Washington, DC 20220. Any such
comments should be submitted not later
than February 2, 2001. Comments are
specifically requested concerning:

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Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Secretary, including whether the
information will have practical utility;
the accuracy of the estimated burden
associated with the proposed collection
of information (see below); how to
enhance the quality, utility, and clarity
of the information to be collected; how
to minimize the burden of complying
with the proposed collection of
information, including the application
of automated collection techniques or
other forms of information technology;
and estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
The collection of information in this
regulation is in 12 CFR section 1501.2.
This information is required to request
that the Secretary determine that a
particular activity is included within
three general categories of activities and
therefore that it is financial in nature or
incidental to a financial activity. This
information will be used to enable the
Secretary to evaluate a request for such
a determination. The collection of
information is required to obtain a
benefit. The likely respondents are
national banks.
Estimated total annual reporting
burden: 100 hours.
Estimated average annual burden
hours per respondent: 20 hours.
Estimated number of respondents: 5.
Estimated annual frequency of
responses: once.
Executive Order 12866 Determination
The Department of the Treasury has
determined that this rule does not
constitute a ‘‘significant regulatory
action’’ for the purposes of Executive
Order 12866.
List of Subjects
12 CFR Part 225
Administrative practice and
procedure, Banks, banking, Federal
Reserve System, Holding companies,
Reporting and record keeping
requirements, Securities.
12 CFR Part 1501
Administrative practice and
procedure, National banks, Reporting
and recordkeeping requirements.
Board of Governors of the Federal
Reserve System
12 CFR Chapter II
Authority and Issuance
For the reasons set out in the joint
preamble, the Board amends 12 CFR
Part 225 as follows:

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PART 225—BANK HOLDING
COMPANY AND CHANGE IN BANK
CONTROL (REGULATION Y)
1. The authority citation for part 225
continues to read as follows:
Authority: 12 U.S.C. 1817(j)(13), 1818,
1828(o), 1831(i), 1831p-1, 1843(c)(8), 1843(k),
1844(b), 1972(1), 3106, 3108, 3310, 3331–
3351, 3907, and 3909.

2. In § 225.86, a new paragraph (d) is
added and reserved; and a new
paragraph (e) is added to read as
follows:
§ 225.86 What activities are permissible for
financial holding companies?

*

*
*
*
*
(e) Activities permitted under section
4(k)(5) of the Bank Holding Company
Act (12 U.S.C. 1843(k)(5)).
(1) The following types of activities
are financial in nature or incidental to
a financial activity when conducted
pursuant to a determination by the
Board under paragraph (e)(2) of this
section:
(i) Lending, exchanging, transferring,
investing for others, or safeguarding
financial assets other than money or
securities;
(ii) Providing any device or other
instrumentality for transferring money
or other financial assets; and
(iii) Arranging, effecting, or
facilitating financial transactions for the
account of third parties.
(2) Review of specific activities.
(i) Is a specific request required? A
financial holding company that wishes
to engage on the basis of paragraph
(e)(1) of this section in an activity that
is not otherwise permissible for a
financial holding company must obtain
a determination from the Board that the
activity is permitted under paragraph
(e)(1).
(ii) Consultation with the Secretary of
the Treasury. After receiving a request
under this section, the Board will
provide the Secretary of the Treasury
with a copy of the request and consult
with the Secretary in accordance with
section 4(k)(2)(A) of the Bank Holding
Company Act (12 U.S.C. 1843(k)(2)(A)).
(iii) Board action on requests. After
consultation with the Secretary, the
Board will promptly make a written
determination regarding whether the
specific activity described in the request
is included in an activity category listed
in paragraph (e)(1) of this section and is
therefore either financial in nature or
incidental to a financial activity.
(3) What factors will the Board
consider? In evaluating a request made
under this section, the Board will take
into account the factors listed in section
4(k)(3) of the BHC Act (12 U.S.C.

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1843(k)(3)) that it must consider when
determining whether an activity is
financial in nature or incidental to a
financial activity.
(4) What information must the request
contain? Any request by a financial
holding company under this section
must be in writing and must:
(i) Identify and define the activity for
which the determination is sought,
specifically describing what the activity
would involve and how the activity
would be conducted; and
(ii) Provide information supporting
the requested determination, including
information regarding how the proposed
activity falls into one of the categories
listed in paragraph (e)(1) of this section,
and any other information required by
the Board concerning the proposed
activity.
By order of the Board of Governors of the
Federal Reserve System.
Dated: December 27, 2000.
Jennifer J. Johnson,
Secretary of the Board.

Department of the Treasury
12 CFR Chapter XV
Authority and Issuance
For the reasons set forth in the
preamble, the Department of the
Treasury amends Part 1501 to Chapter
XV of Title 12, to read as follows:
PART 1501—FINANCIAL
SUBSIDIARIES
1. The authority citation for part 1501
continues to read as follows:
Authority: Section 5136A of the Revised
Statutes (12 U.S.C. 24a).

2. Section 1501.2 is redesignated as
§ 1501.3.
3. A new § 1501.2 is added to read as
follows:
§ 1501.2 What activities has the Secretary
determined to be financial in nature or
incidental to a financial activity?

(a) Activities permitted under section
5136A(b)(3) of the Revised Statutes (12
U.S.C. 24a(b)(3)).
(1) The following types of activities
are financial in nature or incidental to
a financial activity when conducted
pursuant to a determination by the
Secretary under paragraph (a)(2) of this
section:
(i) Lending, exchanging, transferring,
investing for others, or safeguarding
financial assets other than money or
securities;
(ii) Providing any device or other
instrumentality for transferring money
or other financial assets; and
(iii) Arranging, effecting, or
facilitating financial transactions for the
account of third parties.

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Federal Register / Vol. 66, No. 2 / Wednesday, January 3, 2001 / Rules and Regulations
(2) Review of specific activities.
(i) Is a specific request required? A
financial subsidiary that wishes to
engage on the basis of paragraph (a)(1)
of this section in an activity that is not
otherwise permissible for a financial
subsidiary must obtain a determination
from the Secretary that the activity is
permitted under paragraph (a)(1).
(ii) Consultation with the Board of
Governors of the Federal Reserve
System. After receiving a request under
this section, the Secretary will provide
the Board of Governors of the Federal
Reserve System (Board) with a copy of
the request and consult with the Board
in accordance with section
5136A(b)(1)(B)(i) of the Revised Statutes
(12 U.S.C. 24a(b)(1)(B)(i)).
(iii) Secretary action on requests.
After consultation with the Board, the
Secretary will promptly make a written
determination regarding whether the
specific activity described in the request
is included in an activity category listed
in paragraph (a)(1) of this section and is
therefore either financial in nature or
incidental to a financial activity.
(3) What factors will the Secretary
consider? In evaluating a request made
under this section, the Secretary will
take into account the factors listed in
section 5136A(b)(2) of the Revised
Statutes (12 U.S.C. 24a(b)(2)) that the
Secretary must consider when
determining whether an activity is
financial in nature or incidental to a
financial activity.
(4) What information must the request
contain? Any request by financial
subsidiary under this section must be in
writing and must:
(i) Identify and define the activity for
which the determination is sought,
specifically describing what the activity
would involve and how the activity
would be conducted; and
(ii) Provide information supporting
the requested determination, including
information regarding how the proposed
activity falls into one of the categories
listed in paragraph (a)(1) of this section,
and any other information required by
the Secretary concerning the proposed
activity.
(b) [Reserved]
Dated: December 27, 2000.
Gregory A. Baer,
Assistant Secretary for Financial Institutions,
Department of the Treasury.
[FR Doc. 01–42 Filed 1–2–01; 8:45 am]
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Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102