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F ederal Reserve

bank of

DALLAS, TEX A S

Dallas

75222

Circular No. 73-53
March i k , 1973

HEARINGS ON APPLICATIONS TO ENGAGE IN
INSURANCE AGENCY ACTIVITIES

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

The Board of Governors of the Federal Reserve System announced
March 7? 1973 that hearings will be heard on 22 applications by bank
holding companies to engage in insurance agency activities.
The hearings will be held at Federal Reserve Banks or other
suitable locations, at times designated by Administrative Law Judge
Paul N. Pfeiffer, who has been designated as hearing officer.
Anyone desiring to participate in the hearings, including those
who have already filed objections to a particular application, should file
a written request with the Secretary of the Board by March 30? 1973Attached is a copy of the Board's order on this matter, including
a list of the applications on which hearings will be scheduled.

Yours very truly,
P. E. Coldwell,
President

Attachment

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

FEDERAL RESERVE SYSTEM
Notice of Hearings on Individual Applications to Engage in
Insurance Agency Activities

Notice is hereby given that the Board of Governors of
the Federal Reserve System has granted requests for hearings on
applications,

listed below, to engage in insurance agency activi­

ties pursuant to § 4(c)(8) of the Bank Holding Company Act (12 U.S.C.
1843(c)(8)) and §§ 225.4(b)(1) and (2) of the Board's Regulation Y
(12 CFR 225.4(b)(1) and (2)).— ^

Objections to each of the appli­

cations and requests for a hearing thereon have been received from
insurance agents or agencies, who assert they would be adversely
affected by approval of each application and from organizations
representing such agents or agencies.

Among the objections are

claims that the proposed activities are not closely related to
banking within the terms of § 225.4(a)(9) of Regulation Y, which
designates certain insurance agency activities as closely related
to banking (12 CFR 225.4(a)(9)) and that in each Instance approval
of the application to engage in insurance agency activities would
not be in the public Interest.
The following are the applications involved:
Federal Reserve Bank of Boston
_1.

Worcester Bancorp., Inc., Worcester, Massachusetts, to engage
de novo in certain insurance agency activities at 34 locations

1/ Two of the applications were originally filed pursuant to § 225.4(b)(3)
which was suspended prior to action on the applications.

i n M a s s a c h u s e t t s a t w h ic h W o r c e s te r B a n c o r p * » I n c . , o r i t s
s u b s i d i a r i e s a r e o th e r w is e engaged i n b u s in e s s , th ro u g h a
s u b s i d i a r y known a s W ornat I n s u r a n c e A g e n c y , In c *
F e d e r a l R e s e r v e B ank o f New Y ork
£•

T he C h a se M a n h a tta n C o r p o r a t i o n , New Y o rk , New Y o r k , t o
e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s a t
o f f i c e s o f D ovenm uehle New Y o rk , I n c . , New Y o r k , New Y o rk ,
a s u b s i d i a r y o f D o v en m u eh le, I n c . , New Y o rk , New Y o rk ,
w h ic h i s a w h o lly -o w n e d s u b s i d i a r y o f The C h a se M a n h a tta n
C o rp o ra tio n *

J.

T he C h a se M a n h a tta n C o r p o r a t i o n , New Y o r k , New Y o rk , t o
e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s a t
s e v e n o f f i c e s i n F l o r i d a a t w h ic h i t s

s u b s i d i a r y , H o u sin g

I n v e s t m e n t C o r p o r a t i o n o f F l o r i d a , M iam i, F l o r i d a , e n g a g e s
in b u s in e s s .
F e d e r a l R e s e r v e Bank o f C l e v e la n d
4.

P itt s b u r g h N a tio n a l C o r p o r a tio n , P i tt s b u r g h , P e n n s y lv a n ia ,
t o e n g a g e <le novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s
a t a l o c a t i o n i n P i t t s b u r g h , P e n n s y l v a n i a , th r o u g h a s u b ­
s i d i a r y known a s B a n k e rs I n s u r a n c e S e r v i c e s , I n c .

F e d e r a l R e s e r v e B ank o f Richmond
D o m inion B a n k s h a re s C o r p o r a t i o n , R o a n o k e , V i r g i n i a , t o e n g a g e
i n c e r t a i n in s u r a n c e ag en cy a c t i v i t i e s th ro u g h th e a c q u i s i t i o n
o f F i t t o n In s u ra n c e A gency, I n c . , A le x a n d ria , V ir g in ia .
(D o m in io n B a n k s h a r e s C o r p o r a t i o n h a s f i l e d a c o m p a n io n

-3 -

application to acquire The Fitton Company, Alexandria,

V i r g i n i a , w h i c h , i f d e n i e d o r w i t h d r a w n , w o u ld m oot t h e
above a p p lic a tio n * )
F e d e r a l R e s e r v e Bank o f A t l a n t a
<>.

B a r n e t t Banks o f F l o r i d a , I n c . . , J a c k s o n v i l l e , F l o r i d a , t o
e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s a t
28 o f f i c e s i n F l o r i d a a t w h ic h B a r n e t t B anks o f F l o r i d a , I n c , ,
or its

7.

s u b s i d i a r i e s a r e o t h e r w is e engaged i n b u s in e s s *

B a r n e t t B anks o f F l o r i d a , I n c , , J a c k s o n v i l l e , F l o r i d a , t o
e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s a t s i x
l o c a t i o n s i n F l o r i d a and one l o c a t i o n i n Texas th ro u g h a
s u b s i d i a r y t o b e known a s B a r n e t t W in s to n I n s u r a n c e A g e n c y ,
Inc,

fi.

F i r s t N a tio n a l H o ld in g C o r p ., A t l a n t a , G e o rg ia , to engage
de novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s a t two
l o c a t i o n s i n G e o r g i a t h r o u g h a s u b s i d i a r y , T h a r p e & B rooks
I n c o r p o r a te d , A t l a n t a , G e o rg ia , and i t s

re g is te re d tra d e

s t y l e , F i r s t S o u th I n s u r a n c e A gency*
j)*

C e n t r a l a n d S t a t e N a t i o n a l C o r p o r a t i o n o f A la b a m a , B irm in g h a m ,
A la b a m a , t o e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y

a c tiv i­

t i e s a t a l o c a t i o n i n B irm in g h a m , A la b a m a , t h r o u g h a s u b s i d i a r y
known a s CSN U n d e r w r i t e r s , I n c ,
1 0 * The Alabama Financial Group, Inc*, Birmingham, Alabama

(for­

merly known as BTNB Corporation), to engage de novo in

certain

4«-

i n s u r a n c e a g e n c y a c t i v i t i e s a t a l o c a t i o n i n B irm in g h a m ,
A la b a m a , t h r o u g h a s u b s i d i a r y known a s A labam a F i n a n c i a l
In s u ra n c e A gency, I n c .
11.

C i t i z e n s a n d S o u t h e r n H o ld in g Company, A t l a n t a , G e o r g i a , a
s u b s i d i a r y o f C i t i z e n s a n d S o u t h e r n N a t i o n a l B an k , A t l a n t a ,
G e o r g i a , t o e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y
a c t i v i t i e s a t o f f i c e s o f T he C i t i z e n s a n d S o u t h e r n N a t i o n a l
Bank o r C i t i z e n s a n d S o u t h e r n H o l d i n g Company, a n d a t t h e
o f f i c e s o f s u b s i d i a r i e s t h e r e o f , t h r o u g h a s u b s i d i a r y known
a s T he C i t i z e n s a n d S o u t h e r n A gency*

( A p p l i c a n t s e e k s t o ex­

p a n d t h e a c t i v i t i e s o f The C i t i z e n s a n d S o u t h e r n A gency w h ic h
w e r e a p p r o v e d p r i o r t o t h e 1970 Amendments o f t h e Bank H o ld in g
Company A c t .
12.

S e e 55 F e d e r a l R e s e r v e B u l l e t i n 673 ( 1 9 6 9 ) ) .

P a lm e r Bank C o r p o r a t i o n , S a r a s o t a , F l o r i d a , t o e n g a g e d e novo
in c e r t a i n in su ra n c e agency a c t i v i t i e s a t o f f i c e s i n S a ra s o ta ,
F o r t M y e r s , a n d N a p l e s , F l o r i d a , t h r o u g h a s u b s i d i a r y known
a s C o a s t a l M o rtg a g e Company.

13.

Pan A m e ric a n B a n c s h a r e s , I n c . , M iam i, F l o r i d a , t o e n g a g e i n
c e r t a i n in s u r a n c e agency a c t i v i t i e s th ro u g h th e a c q u i s i t i o n
o f A t i c o F i n a n c i a l C o r p o r a t i o n , M ia m i, F l o r i d a .

F e d e r a l R e s e r v e Bank o f S t . L o u i s
14.

F i n a n c i a l D e v e lo p m e n t Company, S o u t h a v e n , M i s s i s s i p p i , t o
e n g a g e d e novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s i n
S o u t h a v e n , M i s s i s s i p p i , t h r o u g h a s u b s i d i a r y known a s FNB
In su ra n c e A gency.

-515.

C o u n ty N a t i o n a l B a n c o r p o r a t i o n , C l a y t o n , M i s s o u r i , t o
engage i n c e r t a i n in s u ra n c e agency a c t i v i t i e s th ro u g h
t h e a c q u i s i t i o n o f G e n e r a l M o rtg a g e Company o f S t . L o u i s ,
S t . A nn, M i s s o u r i .

(A p p lic a n t has r e q u e s te d s e p a r a te

B oard c o n s i d e r a t i o n o f t h e i n s u r a n c e a g e n c y a c t i v i t i e s .
W it h d r a w a l o r d e n i a l o f t h e a p p l i c a t i o n t o a c q u i r e t h e
m o rtg a g e company w o u ld m oot t h e i n s u r a n c e a g e n c y i s s u e s . )
F e d e r a l R e s e r v e Bank o f K a n s a s C i t y
36.

A f f i l i a t e d B an k sh ares o f C o lo ra d o , I n c , , B o u ld e r, C o lo rad o
to c o n tin u e to engage i n c e r t a i n in s u ra n c e agency a c t i v i ­
tie s

th ro u g h th e r e t e n t i o n o f In s u ra n c e P r o f e s s i o n a l s , In c

L o v e lan d , C o lo rad o .

A p p lic a n t w i l l engage i n such a c t i v i ­

t i e s a t 17 o f f i c e s o f i t s b a n k i n g and n o n b a n k in g s u b s i d ­
i a r i e s i n C o lo rad o .
17.

NBC Company, L i n c o l n , N e b r a s k a , t o e n g a g e

novo i n

c e r t a i n in s u ra n c e agency a c t i v i t i e s a t an o f f i c e in
L i n c o l n , N e b r a s k a , t h r o u g h a s u b s i d i a r y known a s NBC
A gency, I n c .
1 P,»

The F i r s t N a t i o n a l B a n c o r p o r a t i o n , I n c . , D e n v e r , C o l o r a d o ,
t o e n g a g e d £ novo i n c e r t a i n I n s u r a n c e a g e n c y a c t i v i t i e s
a t o f f i c e s o f The F i r s t N a t i o n a l B a n c o r p o r a t i o n , I n c . ,
and i t s

s u b s i d i a r i e s in C o lo ra d o , th ro u g h a s u b s id i a r y

t o be known a s F i r s t D e n v e r A s s u r o r s Company.

*6«
F e d e ra l R eserv e
19.

Bank o f San F r a n c i s c o

S o u th e rn C a l i f o r n i a F i r s t N a tio n a l C o r p o r a t i o n , San D ieg o ,
C a l i f o r n i a , t o e n g a g e d e novo i n c e r t a i n I n s u r a n c e a g e n c y
a c t i v i t i e s a t a n o f f i c e i n San D i e g o , C a l i f o r n i a , t h r o u g h
a s u b s i d i a r y known a s S* C* N a t i o n a l A s s o c i a t e s *

20,

M a rin e B a n c o r p o r a tio n , S e a t t l e , W a sh in g to n , to engage
d e novo i n c e r t a i n i n s u r a n c e a g e n c y a c t i v i t i e s a t two o f f i c e s
i n S e a t t l e o f i t s w h o lly -o w n e d s u b s i d i a r y , Commerce C r e d i t
Company, S e a t t l e , W a s h in g to n *

,21*

O rb an co , I n c * , P o r t l a n d , O regon, to engage i n c e r t a i n i n s u r ­
a n c e a g e n c y a c t i v i t i e s t h r o u g h t h e a c q u i s i t i o n o f F a r W est
S e c u r i t i e s C o * , S p o k a n e , W a s h i n g t o n , a t o f f i c e s o f F a r W est
S e c u r i t i e s Co,

( A p p l i c a n t h a s r e q u e s t e d s e p a r a t e B oard c o n ­

s i d e r a t i o n o f t h e i n s u r a n c e a g e n c y a c t i v i t i e s fro m t h e m o r t ­
g a g e com pany a c t i v i t i e s i n v o l v e d i n t h e a p p l i c a t i o n *

W ith ­

d r a w a l o r d e n i a l o f t h e p r o p o s e d m o r t g a g e company a c q u i s i t i o n
w o u ld m oot t h e i n s u r a n c e a g e n c y i s s u e s * )
22.

P a ta g o n ia C o r p o r a tio n , T u sco n , A riz o n a , to engage i n c e r t a i n
in s u ra n c e agency a c t i v i t i e s th ro u g h th e a c q u i s i t i o n o f
W e s t e r n A m e ric a n I n s u r a n c e A g e n c y , P h o e n i x , A r i z o n a *
I t i s h e r e b y o r d e r e d t h a t , p u r s u a n t t o § 4 ( c ) ( 8 ) o f t h e Bank

H o l d i n g Company A c t , a h e a r i n g b e h e l d w i t h r e s p e c t t o e a c h applica**
t i o n l i s t e d a b o v e , t o be c o n d u c te d i n a c c o rd a n c e w ith t h e

✓

-7-

B o a r d 's R u le s o f P r a c t i c e f o r F o r m a l H e a r i n g s (12 CFR 263)#

Admin­

i s t r a t i v e Law J u d g e P a u l N. P f e i f f e r h a s b e e n d e s i g n a t e d a s t h e
h e a r i n g o f f i c e r by t h e U n i t e d S t a t e s C i v i l S e r v i c e C o m m issio n .

H ear­

i n g s on t h e i n d i v i d u a l a p p l i c a t i o n s w i l l be h e l d a t s u c h F e d e r a l
R e s e r v e Bank o f f i c e s and a t s u c h t i m e s a s may b e d e s i g n a t e d by t h e
A d m i n i s t r a t i v e Law J u d g e .

The r i g h t i s r e s e r v e d t o t h e B oard and

t h e A d m i n i s t r a t i v e Law J u d g e t o d e s i g n a t e a n y o t h e r p l a c e s f o r s u c h
h e a r i n g s o r a n y p a r t t h e r e o f t h a t may b e d e t e r m i n e d t o be n e c e s s a r y
and a p p r o p r i a t e .
S e c t i o n 2 6 3 . 6 ( d ) o f t h e B o a r d ’s R u le s o f P r a c t i c e f o r
F o r m a l H e a r i n g s (12 CFR 2 6 3 . 6 ( d ) ) p r o v i d e s i n p a r t " U n l e s s o t h e r ­
w i s e s p e c i f i c a l l y p r o v i d e d by s t a t u t e o r b y r u l e o f t h e B o a rd , a
h e a r i n g s h a l l o r d i n a r i l y be p r i v a t e and s h o u l d be a t t e n d e d o n l y
by th e p a r t i e s , t h e i r r e p r e s e n t a t i v e s o r c o u n s e l, r e p r e s e n t a t i v e s
o f t h e B o a r d , w i t n e s s e s w h i l e t e s t i f y i n g , and o t h e r p e r s o n s h a v i n g
o f f i c i a l i n t e r e s t in th e p ro c e e d in g s:

P r o v i d e d . h o w e v e r , t h a t on

w r i t t e n r e q u e s t by a p a r t y o r a r e p r e s e n t a t i v e o f t h e B o a r d , o r
on t h e B o a r d 's own m o t i o n , t h e B oard i n i t s d i s c r e t i o n and t o t h e
e x t e n t p e r m i t t e d by law may p e r m i t o t h e r p e r s o n s t o a t t e n d o r may
o r d e r t h e h e a r i n g t o be p u b l i c . "
Any p e r s o n , i n c l u d i n g t h o s e who h a v e a l r e a d y f i l e d o b j e c ­
t i o n t o an a p p l i c a t i o n , d e s i r i n g t o g iv e te s tim o n y , p r e s e n t e v id e n c e ,
o r o th e rw is e p a r t i c i p a t e i n th e s e p ro c e e d in g s sh o u ld f i l e w ith

8'

t h e S e c r e t a r y , B o a rd o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s te m ,
W a s h i n g t o n , D. C . 2 0 5 5 1 , o n o r b e f o r e M arch 3 0 , 1 9 7 3 , a w r i t t e n
re q u e s t c o n ta in in g a sta te m e n t o f th e n a tu re o f th e p e t i t i o n e r 's
i n t e r e s t in th e p ro ce e d in g s, th e e x te n t o f th e p a r t i c i p a ti o n
d e s i r e d , a summary o f t h e m a t t e r s c o n c e r n i n g w h ic h p e t i t i o n e r
w i s h e s t o g i v e t e s t i m o n y o r s u b m it e v i d e n c e a n d t h e names and
i d e n t i t y o f w i t n e s s e s who p r o p o s e t o a p p e a r .

A ll re q u e sts

r e c e i v e d , t o g e t h e r w i t h t h e a p p l i c a t i o n s a n d t h e o b j e c t i o n s and
r e q u e s t s t o i n t e r v e n e h e r e t o f o r e r e c e i v e d , w i l l be p r e s e n te d to
t h e A d m i n i s t r a t i v e Law J u d g e , who w i l l t h e r e a f t e r s c h e d u l e s u c h
p re -h e a rin g co n feren ces as a re n e c e ssa ry .
The a p p l i c a t i o n s may b e i n s p e c t e d a t t h e r e s p e c t i v e
F e d e r a l R e s e r v e Bank o f t h e a p p l i c a n t s o r a t t h e F e d e r a l R e s e r v e
B u i l d i n g , 2 0 t h S t r e e t a n d C o n s t i t u t i o n A v e n u e , N .W ,, W a s h i n g t o n ,
D. C .
By order of the Board of Governors, March 6, 1973.

( S i g n e d ) Tynan S m ith

Tynan Smith
Secretary of the Board

[SEAL]