The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
FED ER AL RESERVE BANK O F NEW YORK [ Circular No. 8 1 0 6 May 4, 1977 ] BANK HOLDING COMPANIES Deferral of Action on Proposed Amendment to Allow Management Consulting Advice T o A l l B a n k H o ld in g C o m p a n ie s , a n d O t h e r s C o n c e r n e d , in th e S e c o n d F e d e r a l R e s e r v e D i s t r i c t : Following is the text of a statement issued April 28 by the Board of Governors of the Federal Reserve System: The Board of Governors of the Federal Reserve System today announced that it is deferring action on the question whether bank holding companies should be allowed to supply management consulting advice to depository institutions other than commercial banks. The Board deferred action in light of the withdrawal last month of an application from a bank holding company (Worcester Bancorp, Inc., Worcester, M ass.), to engage in the activity of supplying management consulting advice to nonaffiliated savings banks. On the basis of the application the Board on August 2, 1976, announced it would consider possible adop tion of a rule to permit bank holding companies to provide management consulting advice to nonaffiliated savings banks and other nonaffiliated depository institutions. The Board in 1974 permitted bank holding companies to provide certain kinds of management consult ing advice to nonaffiliated commercial banks. Printed below is the text of the Board of Governors’ Order deferring action on the pro posal. Questions regarding this matter may be directed to our Domestic Banking Applications Department (Tel. No. 212-791-5861). P aul A. V olcker, President. (Reg. Y) BANK HOLDING COMPANIES Proposed Rulemaking Relating to Providing Management Consulting Advice (Docket No. R-0051) A G E N C Y : Board of Governors of the Federal Re serve System. A C T I O N : Deferral of rulemaking proposal. S U M M A R Y : On August 2, 1976, the Board of Gov ernors proposed an amendment to its Regulation Y in connection with an application by a bank holding com pany to engage in offering management consulting advice to nonaffiliated savings banks. The proposed amendment would add the activity of providing manage ment consulting advice to nonaffiliated savings banks and to other nonaffiliated, depository-type financial in stitutions to the list of activities that the Board has previously determined to be permissible for bank holding companies. In light of the fact that the application to engage in the proposed new activity has been with drawn, the Board is deferring action on the proposed amendment. FO R F U R T H E R IN F O R M A T IO N CONTACT: Robert E. Mannion, Assistant General Counsel, (202/ 452-3274) or Julius L. Loeser, Senior Attorney, (2 02/ 452-3236), Legal Division, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. ( ov er) SUPPLEM ENTARY IN F O R M A T IO N : The Board of Governors on August 2, 1976, proposed an amendment to its Regulation Y (12 CFR §225) that would add the activities of providing management con sulting advice to nonaffiliated savings banks and possibly to other nonaffiliated, depository-type financial institu tions to the list of activities that the Board has previ ously determined to be permissible for bank holding companies, as specified in §225.4(a) of Regulation Y. Notice of the proposed amendment was published in the F e d e r a l R e g i s t e r on August 9, 1976 (41 Fed. Reg. 33306 (1 9 7 6 )). The amendments were proposed in connection with an application by Worcester Bancorp, Inc., Worcester, Massachusetts, pursuant to §4(c) (8) of the Bank Holding Company Act (12 U.S.C. § 1 8 4 3 (c )(8 )) and §225.4 of the Board’s Regulation Y (12 CFR 225.4), for prior approval to engage d e n o vo in providing management consulting advice to non affiliated savings banks. By letter of March 3, 1977, to the Federal Reserve Bank of Boston, Worcester Bancorp, Inc. has with drawn its application to engage in providing manage ment consulting advice to nonaffiliated savings banks. In accord with its general policy, the Board, in the absence of a specific bank holding company proposal, has determined to defer further consideration of the proposed activity, and hereby suspends the rulemaking proceeding initiated on August 2, 1976. Board of Governors of the Federal Reserve System, effective April 27, 1977.
@FedFRASER