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F ederal Reserve Bank DALLAS. TEXAS of Dallas 75222 Circular No. 73-153 June 27, 1973 NOTICE OF POSSIBLE DELAY ON INSURANCE AGENCY APPLICATIONS To All Banks, Bank Holding Companies, and Others Concerned in the Eleventh Federal Reserve District: On June 19, 1973? the Board of Governors of the Federal Reserve System announced its decision to notify prospective Applicants proposing to engage, de novo or by acquisition of a going concern, in insurance agency activities that action by the Board on many of these applications may be delayed until the Board has acted on those insurance agency applications on which hearings have been ordered and are in progress. Printed on the following pages is a copy of the Board's Press Release and Notice relating to this matter. Y ours v e r y t r u l y , P. E. C o ld w e ll, P re sid e n t Enclosure This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) k $ FEDERAL press RESERVE release F o r im m e d ia te r e l e a s e J u n e 1 9 , 1973 The 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 stem t o d a y announced i t s d e c is i o n t o n o t i f y p r o s p e c t iv e a p p l i c a n t s p ro p o s in g t o e n g a g e , de novo o r by a c q u i s i t i o n o f a g o i n g c o n c e r n , 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 a t a c t i o n b y t h e B o a rd on many o f t h e s e a p p l i c a t i o n s may b e d e l a y e d u n t i l t h e B o a rd h a s a c t e d on t h o s e i n s u r a n c e a g e n c y a p p l i c a t i o n s on w h ic h h e a r i n g s h a v e b e e n o r d e r e d a nd a r e i n p r o g r e s s . A t t a c h e d i s a copy o f t h e B o a r d 's N o t i c e r e l a t i n g t o t h i s m atter. A ttach m en t FEDERAL RESERVE SYSTEM N o t i c e o f P o s s i b l e D e la y i n t h e P r o c e s s i n g o f A p p l i c a t i o n s b y Bank H o l d i n g Com panies t o Engage i n I n s u r a n c e Agency A c t i v i t i e s N o t i c e i s h e r e b y g i v e n t o p r o s p e c t i v e b a n k h o l d i n g company a p p lic a n ts t h a t i f a s u b s ta n tiv e o b je c tio n i s re c e iv e d w ith re s p e c t t o a n a p p l i c a t i o n t o e n g a g e , de novo o r by a c q u i s i t i o n o f a g o i n g c o n c e r n , 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 c t i o n on t h e a p p l i c a t i o n b y t h e B oard 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 stem i s l i k e l y t o b e d e l a y e d u n t i l t h e B o a rd h a s a c t e d on t h o s e i n s u r a n c e a g e n c y a p p l i c a t i o n s on w h ic h h e a r i n g s h a v e b e e n o r d e r e d a nd a r e i n p r o g r e s s . The B oard h a s g r a n t e d r e q u e s t s f o r h e a r i n g s on c e r t a i n a p p li c a ti o n s to engage in in s u ra n c e agency a c t i v i t i e s p u rs u a n t t o s e c t i o n 4 ( c ) ( 8 ) o f t h e Bank H o l d i n g Company A c t (12 U .S .C . 1 8 4 3 ( c ) ( 8 ) ) and §§ 2 2 5 . 4 ( b ) ( 1 ) and (2 ) o f t h e B o a r d f s R e g u l a t i o n Y (12 CFR 2 2 5 . 4 ( b ) ( 1 ) and ( 2 ) ) . As new a p p l i c a t i o n s w i l l i n v o l v e g e n e r a l l y t h e same i s s u e s a s t h o s e p r e s e n t e d i n o ne o r m ore o f t h e a p p l i c a t i o n s on w h ic h t h e B oard has o rd ered h e a rin g s , n e ith e r a d d itio n a l h e a rin g s n o r o u tr ig h t approval o r d e n i a l o f t h e new a p p l i c a t i o n s w o u ld a p p e a r t o b e d e s i r a b l e a t t h i s tim e . A c c o rd in g ly , n o t ic e i s h e re b y g iv en t o p r o s p e c tiv e a p p li c a n ts p ro p o sin g to engage in in s u ra n c e agency a c t i v i t i e s p u rs u a n t to s e c t i o n 4 ( c ) ( 8 ) o f t h e Bank H o l d i n g Company A c t , t h a t s u c h p r o p o s a l s h e r e a f t e r s u b m i t t e d a nd a s t o w h ic h a s u b s t a n t i v e o b j e c t i o n i s f i l e d , w i l l i n m ost i n s t a n c e s b e h e l d i n a b e y a n c e a nd n o t p r o c e s s e d p e n d i n g r e s o l u t i o n o f t h o s e a p p l i c a t i o n s on w h ic h t h e B o a rd h a s o r d e r e d h e a r i n g s . -2 - I t i s a n t i c i p a t e d t h a t a p p l i c a t i o n s t o engage i n c r e d i t l i f e a nd d i s a b i l i t y i n s u r a n c e a nd m o r t g a g e r e d e m p t i o n i n s u r a n c e , a s w e l l a s any a p p l i c a t i o n i n v o l v i n g a com m unity o f l e s s t h a n 5 ,0 0 0 p e r s o n s , may not be o b jec te d to in th e fu tu re . A bsent s u b s ta n t iv e o b j e c t i o n s , such c a s e s w i l l b e d u ly p r o c e s s e d i n t h e norm al m anner. B o a rd o f G o v e r n o rs o f t h e F e d e r a l R e s e r v e S y s te m , J u n e 1 9 , 1 9 7 3 . (S ig n e d ) Tynan S m ith Tynan S m ith S e c r e t a r y o f t h e B oard [SEAL]
@FedFRASER