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F ed er a l Re ser ve Ba n k
DALLAS, TEXAS

of

D allas

75222

Circular No. 81-60
March 30, 1981

REQUEST FOR PUBLIC COMMENT
Acquisition of Thrift Institutions by
Banks and Bank Holding Companies

TO ALL BANKS,
BANK HOLDING COMPANIES,
AND OTHERS CONCERNED IN THE
ELEVENTH FEDERAL RESERVE DISTRICT:
The Board of Governors of the Federal Reserve System is requesting
comment on the potential effects of the acquisition of thrift institutions by
banks and bank holding companies. The comments are being solicited to assist
the Board in completing a study for Congress on this issue. A copy of the
Board's notice as published in the Federal Register is enclosed.
Comments should be submitted in writing to the Secretary, Board of
Governors of the Federal Reserve System, Washington, D. C. 20551.
All
submissions should be received no later than April 30, 1981.
Any inquiries concerning the information contained in this circular
should be addressed to the Attorney's Section of our Holding Company
Supervision Department, Ext. 6183.
Sincerely yours,
William H. Wallace
First Vice President

Enclosure

Banks and others are encouraged to use the following incoming W A T S 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)

Federal Register / Vol. 46, No. 55 / Monday, March 23, 1981 /
potential effects of the acquisition of
thrift institutions by banks and bank
holding companies. The Board is
soliciting comment from the public on
this issue to assist the Board in
completing its study.
d a t e : Comments must be received by
April 30,1981.
ADDRESS: Secretary, Board of Governors
of the Federal Reserve System,
Washington, D.C. 20551
FOR FURTHER INFORMATION CONTACT:

Michael E. Bleier, Assistant General
Counsel (202-452-3721), Carl V.
Howard, Senior Attorney (202-452­
3786), Legal Division; or Joe M. Cleaver,
Assistant Director (202-452-3905),
Division of Research and Statistics,
Board of Governors of the Federal
Reserve System, Washington, D.C.
20551.
Section 4(c)(8) of the Bank Holding
Company Act, 12 U.S.C. 1843(c)(8),
provides that bank holding companies
may acquire
* * * [SJhares of any company the
activities of which the Board after due notice
and opportunity for hearing has determined
(by order or regulation) to be so closely
related to banking or managing or qontrolling
banks as to be a proper incident thereto. In
determining w hether a particular activity is a
proper incident to banking or managing or
controlling banks the Board shall consider
whether its performance by an affiliate of a
holding company can reasonably be expected
to produce benefits to the public, such as
greater convenience, increased competition,
or gains in efficiency, that outweigh possible
adverse effects, such as undue concentration
of resources, decreased or unfair competition,
conflicts of interests, or unsound banking
practices.

Notice Requesting Comment on the
Acquisition of Thrift Institutions by
Banks and Bank Holding Companies
AGENCY: Board of Governors of the
Federal Reserve System.
ACTION: Request for comment.
s u m m a r y : Congress has asked the
Board to undertake a study of the

The Board has previously found the
operation of a savings and loan
association to be "closely related” to
banking, but has not determined this
activity to be a “proper incident" to
banking.1Accordingly, interested
persons are invited to express their
views on the “proper incident” question.
The Board’s study of the affiliation of
banks and bank holding companies and
thrift institutions is not limited to this
issue, however, and interested persons
are also invited to express their views
on any potential effects of such
affiliation.
The Board has advised the Senate
Committee that the Board intends to
complete this study by the early summer
1D. H. Baldwin Company, 63 Federal Reserve
Bulletin 280 (1977). The Board recently received an
application (rom National Detroit Corporation.
Detroit, Michigan, to acquire Landmark Savings and
Loan Association, Saginaw, Michigan. The Board
has dismissed the application without prejudice to
its resubmission following completion of the study.

Notices

of 1981. Accordingly, persons wishing to
comment on the issues described above
should submit their views in writing to
the Secretary, Board of Governors of the
Federal Reserve System, Washington,
D.C. 20551, to be received by April 30,
1981.
Board of Governors o f the Federal Reserve
System, March 16,1981.
Janies McAfee,
A ssistant Secretary o f the Board.
|FR Doc. B1-S741 F iled 3-20-61; 8:45 am ]

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