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FED ER A L RESER VE BANK O F NEW YORK f" C ircu la r N o. 7 3 5 8 t March 18, 1974 J L BANK HOLDING COMPANIES — Approval of Certain Applications to Retain Bank Stock — Technical Correction of Interpretation on Management Consulting Services T o A ll Bank H olding Companies, and O thers Concerned, in the Second Federal R eserve D istrict: Enclosed are copies of amendments to Regulation Y, “ Bank Holding Com panies,” and to the Rules Regarding Delegation of Authority, of the Board of Governors of the Federal Reserve System. The amendments delegate to the Federal Reserve Banks authority to approve applications by bank holding companies for the retention of bank stock acquired in a fiduciary capacity where the applicant undertakes unconditionally to dispose of such shares, or the sole discretionary authority to vote such shares, within a two-year period. Such an application shall be deemed to be approved 45 days after the applicant has been notified o f its acceptance by the Reserve Bank. In addition, the section number— 225.130— assigned to a recent interpretation of Regulation Y, on management consulting services, is incorrect; a copy of that interpretation was sent to you with our Circular No. 7352, dated March 1, 1974. The correct section number of that interpretation is 225.131. A lfred H a y e s , President. Board of Governors of the Federal Reserve System BANK HOLDING COMPANIES A M E N D M E N T TO R E G U LA TIO N Y Effective with respect to applications received by the Reserve Banks on and after M arch 19, 1974 and with respect to applications pending before the B oard on M arch 14, 1974, section 225.3 is amended by adding a new paragraph ( c ) thereto, to read as fo llo w s: S E C T I O N 225.3— A C Q U I S I T I O N OR R E T E N T IO N O F BAN K SH ARES OR ASSETS * * * (c) Applications to retain shares acquired in a fiduciary capacity. A pplications under this subsection are processed on the basis o f a letter o f notification without com pliance with section 2 6 2 .3 (h ) of the B oa rd ’s Rules of P r o cedure. A n y application fo r the B oa rd ’s ap proval to retain shares o f bank stock acquired in a fiduciary capacity (w ith sole voting rig h ts), which is accom panied by an uncondi tional undertaking by the A pplicant to dispose of such shares or its sole discretionary voting rights with respect to such shares within tw o years from the date o f such acquisition, shall be deemed to be approved 45 days after the Applicant has been inform ed by the Reserve Bank that said application has been accepted, unless the A pplicant is notified to the contrary within that time or is granted approval at an earlier date. F R IN T E D IN NEW YORK
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