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FED ER AL RESERVE BANK O F NEW YORK r C ircular L No. 6 9 6 8 1 Ju ly 3, 1972 J BANK HOLDING COMPANIES P ro p erty M anagem ent Services Not a Perm issible Activity To A ll Bank Holding Companies, and O thers Concerned, in the Second Federal Reserve D istrict: Follow ing is the te x t of a statem en t issued Ju n e 30 by the B oard of Gov ernors of the F ederal R eserve S y ste m : T h e B o a rd of G o v ern o rs of th e F e d e ra l R e serv e S y stem to d ay an n o u n c ed th a t it does n o t co n sid er p ro p e rty m a n ag e m en t services a p erm issib le ac tiv ity fo r b an k ho ld in g com panies. T h e decision w ith d re w a p ro p o sal of S ep te m b er 14, 1971 to a d d th e p erfo rm an ce of p ro p e rty m an ag e m en t services to th e list of activ ities co n sid ered to be closely rela ted to b an k in g o r m a n a g in g o r co n tro llin g banks. T h e B o a rd acted a fte r co n sid erin g com m ents received on its p ro p o sal, in clu d in g th e re c o rd o f a public h e a rin g held J a n u a ry 26, 1972. T h e B o a rd ’s actio n did n o t lim it th e a u th o rity p re se n tly co n fe rred by sta tu te o r reg u la tio n on b an k s an d b a n k h o ld in g com panies to en g ag e in som e lim ited k in d s of p ro p e rty m anag em en t. A cco rd in g ly , b an k h o ld in g com panies a n d th e ir su b sid iaries m ay co n tin u e to en g ag e in p ro p e rty m an ag e m en t w ith resp ect t o : 1. P ro p e rtie s held in a fid u ciary c a p a c ity ; 2. P ro p e rtie s ow ned by th e b an k h o ld in g co m p an y o r its su b sid iaries fo r co n d u ctin g its o w n b an k a n d rela ted o p e r a tio n s ; 3. P ro p e rtie s ac q u ired by th e h o ld in g co m p an y o r a su b sid iary as a re su lt a d efa u lt o n a loan. A lfred H a y es, President. of
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