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FEDERAL RESERVE BANK OF DALLAS Station K, Dallas, Texas 7 5 2 2 2 C ir c u la r No. 84-31 February 29, 1984 TO: All member banks, bank holding companies, and other concerned in the Eleventh Federal Reserve D i s t r i c t ATTENTION: Chief Executive Of fi ce r SUBJECT: Exemption t o R eg u la tio n Y — and Change in Bank Control SUMMARY: The Board of Governors of the Federal Reserve System has approved lim it ed exemptions, under i t s revised Regulation Y, f o r c e r t a i n s t a t e - c h a r t e r e d savings and loan a s s o c i a t i o n s and, upon r e q u e s t , a six-month extension of time f o r compliance by companies t h a t acquired banks before December 10, 1982. ATTACHMENTS: Board's press r e l e a s e MORE INFORMATION: Robert D. Hankins, Extension 6120; Carla Brooks, Extension 6477; or Gayle Teague, Extension 6481 ADDITIONAL COPIES: Public A f f a i r s Department, Extension 6289 Bank H olding Companies Banks and others are encouraged to use the following incoming WATS numbers in contacting this Bank: 1-800-442-7140 (intrastate) and 1-800-527-9200 (interstate). For calls placed locally, please use 651 plus the extension referred to above. This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) FEDERALRESERVEpressrelease For immediate r e l e a s e February 3, 1984 The Federal Reserve Board today acte d upon a number of re q ue sts submitted by companies under the procedures provided in th e Board's revised Regulation Y for exemptions from t h e Regulation. The Board approved li m it ed exemptions f o r c e r t a i n s t a t e ch ar te re d savings and loan a s s o c i a t i o n s and a s i x month extension of time for companies t h a t acquired banks before December 10, 1982 t o comply with th e Regulation. In t o d a y ' s a c t i o n , th e Board decided, upon th e b a s i s of requests received from a f f e c te d i n s t i t u t i o n s , t h a t i t will not co ns ide r as bank holding companies those companies t h a t acquired s t a t e ch ar t er e d savings and loan a s s o c i a t i o n s befo re December 10, 1982, th e d e p o s i ts of which are p r i v a t e l y insured under s t a t e law, provided t h a t th es e i n s t i t u t i o n s l i m i t t h e i r lending and depos it ta k in g a c t i v i t i e s to those pe rmissible for f e d e r a l l y insured t h r i f t i n s t i t u t i o n s under the Home Owners' Loan Act. The Board a l s o , upon r e q u e s t , will grant a six-month period fo r compliance with the revised Regulation by companies t h a t acquired banks p r i o r to December 10, 1982 and t h a t will become bank holding companies as a r e s u l t of the Regulation Y r e v i s i o n s . Under the Bank Holding Company Act, such a company must r e g i s t e r with t h e Board as a bank holding company within 180 days of February 6, 1984, t h e e f f e c t i v e date of the revised Regulation. The Board's d e c i s io n provides t h a t such a company may re q u es t t h a t i t not be regarded as a bank holding company during t h i s 180 day period p r i o r to r e g i s t r a t i o n , in ord er to allow s u f f i c i e n t time for or d er ly compliance with t h e Act. - 2- At the e x p i r a t i o n of th e 180 day p e r i o d , t h e company will be required to e i t h e r r e g i s t e r as a bank holding company or te r m in at e th e s t a t u s of i t s su b s id ia r y as a bank. If th e company r e g i s t e r s , t h e company would be regarded as a bank holding company and would be r e q u i re d , within two year s from February 6, 1984, to d i v e s t i t s impermissible nonbanking a c t i v i t i e s and to seek FDIC insurance for i t s bank s u b s i d i a r i e s . The Board may upon req ues t grant extensions of t h i s two ye a r period f o r th r e e a d d it io na l one ye a r p e r i o d s . - 0-
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