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FEDERAL RESERVE BAHK OF NIEW YORK Circular No. 9 6 3 5 February 10,1984 ] BANK HOLDING C O M PA N IES T em p o rary E xem ptions U n d e r R egulation Y To All Depository Institutions in the Second Federal Reserve District, and Others Concerned: The following statement has been issued by the Board of Governors of the Federal Reserve System: The Federal Reserve Board has acted upon a num ber of requests subm itted by companies under the procedures provided in the B oard’s revised Regulation Y for exemptions from the Regulation, The Board approved lim ited exemptions for certain state chartered savings and loan associations and a six-month extension of tim e for companies that acquired banks before Decem ber 10, 1982 to comply with the Regulation. In th at action, the Board decided, upon the basis of requests received from affected institutions, th at it will not consider as bank holding companies those companies th a t acquired state chartered savings and loan associations before Decem ber 10, 1982, the deposits of which are privately insured under state law, provided th at these institutions lim it th eir lending and deposit taking activities to those perm issible for federally insured th rift institutions under the Home Owners’ Loan Act. The Board also, upon request, will g ra n t a six-month period for com pliance with the revised Regulation by com panies th at acquired banks prior to Decem ber 10, 1982 and th a t will become bank holding companies as a result of the Regulation Y revisions. U nder the Bank Holding Company Act, such a company m ust register with the Board as a bank holding company w ithin 180 days of F eb ru ary 6, 1984, the effective date of the revised Regulation. The B oard’s decision provides th at such a company may request th at it not be regarded as a bank holding company d u rin g this 180 day period prior to registration, in order to allow sufficient tim e for orderly compliance with the Act. At the expiration of the 180 day period, the company will be required to either register as a bank holding company or term inate the status of its subsidiary as a bank. If the company registers, the company would be regarded as a bank holding company and would be required, w ithin two years from F ebruary 6, 1984, to divest its im perm issible nonbanking activities and to seek FDIC insurance for its bank subsidiaries. The Board may upon request g ra n t extensions of this two year period for three additional one year periods. Questions regarding these exemptions may be directed to our Domestic Banking Applications Department (Tel. No. 212-791-5861). A nthony M. Solomon, President.
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