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FEDERAL R E SE R VE BANK
OF NE W YORK
!* C ircular No 7 7 9 6 "1
L
J a n u a ry 14, 1976
J
Amendments to Rules Regarding Delegation of Authority
Relating to Foreign Applications
7^0
AffM&cr
w tAc
The Board of Governors of the Federal Reserve System has amended its Rules R egarding
Delegation of A uthority, effective December 31, 1975, with regard to routine foreign applica
tions. In subm itting the amendment for publication in the Fctftra/
the Board of
Governors made the following statem ent:
In order to expedite and facilitate the performance of certain of its functions under sections 25 and
25(a) of the Federal Reserve Act and section 4(c) (13) of the Bank Holding Company Act, the Board of
Governors of the Federal Reserve System has amended its Rules Regarding Delegation of Authority pur
suant to the provisions of section l l( k ) of the Federal Reserve Act (12 U.S.C. 248(k)) and section
4(c) (13) of the Bank Holding Company Act (12 U.S.C. 1843(c) (13)) to delegate (1) to the Secretary
of the Board the authority to grant specific consent (a) to the acquisition by a bank holding company,
member bank or corporation organized under section 25(a) of the Federal Reserve Act ("Edge" corpo
ration), or operating under an agreement with the Board pursuant to section 25 of the Federal Reserve Act
("Agreement" corporation), of a controlling stock interest in a foreign company performing any type of
services incidental to the activities of a foreign branch or affiliate of such bank or corporation or foreign
subsidiary of such bank holding company, and (b) to the acquisition by a member bank, Edge or Agree
ment corporation of a controlling stock interest in a foreign company the stock of which is being sold to
such member bank. Edge or Agreement corporation by its parent bank or bank holding company, or sub
sidiary Edge or Agreement corporation, as the case may be, and the stock of which such selling parent or
subsidiary holds with the consent of the Board pursuant to Regulations K. M. or Y. and (2) to each Fed
eral Reserve Bank the authority pursuant to section 213.4(a) of Regulation M to extend the time in which
a member bank must divest itself of stock or other evidences of ownership in a foreign bank acquired in
satisfaction of a debt previously contracted.
Questions regarding this m atter may be directed to our Foreign Banking Applications
Departm ent. Additional copies of the enclosure will be furnished upon request.
PAUL A . VOLCKER,
Board of Governors of the Federal Reserve System
RULES REGARDING DELEGATION OF AUTHORITY
AMENDMENTS
1.
Elective December 31, 1975, subpara
graphs (9 )(d ) and (12) (iv) of paragraph (a),
section 265.2, are amended to read as follows:
SECTION 265.2—SPE C IFIC FU N CTIO N S
DELEGATED TO BOARD EM PLO Y EES
AND TO FED ERA L R ESERV E BANKS
(a) The Secretary of the Board (or, in his
absence, the Acting Secretary) is authorized:
( 12) * * *
(iv)
such acquisition does not result, either
directly or indirectly, in the acquisition by such
bank holding company of control of any such
company (other than a company performing
nominee, fiduciary, or other services incidental
to the activities of a direct or indirect foreign
subsidiary of such corporation).
(9) * * *
(d)
such acquisition does not result, either
directly or indirectly, in the acquisition by such
bank or corporation of effective control of any
such company except that this condition need
not be met if (1) the company is to perform
nominee, fiduciary, or other services incidental
to the activities of a foreign branch or affiliate
of such bank or corporation, or (2) the stock is
being acquired by such bank or corporation
from its parent bank or bank holding company,
or subsidiary Edge or Agreement corporation,
as the case may be, and such selling parent or
subsidiary holds such stock with the consent of
the Board pursuant to Parts 211, 213, or 225 of
this chapter (Regulations K. M, and Y ).
*
*
*
2.
Effective December 31, 1975, subpara
graph (34) is added to paragraph (f) of section
265.2 to read as follows:
(f) Each Federal Reserve Bank is author
ized, as to member banks or other indicated or
ganizations headquartered in its district, or
under subparagraph (25) of this paragraph as
to its officers:
(34) Under § 213.4(a) of this chapter (Reg
ulation M ) to extend the time in which a mem
ber bank must divest itself of stock or other
evidences of ownership in a foreign bank ac
quired in satisfaction of a debt previously con
tracted.
PR IN TE D I N N EW YORK
@FedFRASER