[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6219]


[[Page Unknown]]

[Federal Register: March 17, 1994]


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FEDERAL RESERVE SYSTEM

 

Banc One Corporation, Columbus, Ohio; Request for an Exemption 
From Tying Provisions

    Banc One Corporation, Columbus, Ohio (Banc One), has requested, 
pursuant to section 106(b) of the Bank Holding Company Act Amendments 
of 1970 (12 U.S.C. 1971 et seq.) (Section 106(b)), that the Board grant 
an exemption to permit Banc One's subsidiary banks to vary the 
consideration on a loan, deposit, discount, or trust service 
(``traditional banking products'') for customers that receive first 
lien mortgage loans on 1-4 family residential real estate (mortgage 
loans) from Banc One's mortgage subsidiary, Banc One Mortgage 
Corporation, Indianapolis, Indiana (BOMC). Banc One also has requested 
an exemption to permit BOMC to vary the consideration on mortgage loans 
for customers who have obtained or will obtain a traditional banking 
product from any of Banc One's subsidiary banks. BOMC originates and 
refinances mortgage loans, primarily for sale into the secondary 
market.
    In 1994, Banc One intends to reorganize BOMC as an operating 
subsidiary of Bank One, Indianapolis, N.A., Indianapolis, Indiana. In 
this connection, Banc One also has requested an exemption to permit its 
banks and BOMC to continue to offer customers the price reductions 
described above after the reorganization.
    Section 106(b) permits a bank to fix or vary the consideration for 
extending credit or furnishing services on condition that a customer 
also obtain a traditional banking product from that bank. However, 
Section 106(b) prohibits a bank from engaging in these same activities 
on condition that the customer obtain any additional credit or services 
from any affiliate. The Board may grant an exception that is not 
contrary to the purposes of this provision.\1\
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    \1\ See, e.g., 12 U.S.C. 1972(1).
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    Banc One contends that its proposal is consistent with the purposes 
of Section 106(b) because the proposal is not anticompetitive. Banc One 
argues that the market for mortgage loans and for traditional banking 
products is highly competitive, and that BOMC does not have sufficient 
market share on a local, nationwide, or other basis to adversely affect 
competition. Banc One also argues that the proposal will promote 
competition and will not limit the availability of products to 
consumers because the traditional banking products offered by Banc 
One's subsidiary banks and mortgage loans from BOMC will be separately 
available to customers.
    Notice of Banc One's request is published solely in order to seek 
the views of interested persons on the issues presented by the request 
and does not represent a determination by the Board that the request 
meets or is likely to meet the standards of Section 106(b). The request 
may be inspected at the offices of the Board of Governors.
    Any comments or requests for hearing should be submitted in writing 
and received by William W. Wiles, Secretary of the Board of Governors 
of the Federal Reserve System, Washington, DC 20551, not later than 
April 15, 1994.

    Board of Governors of the Federal Reserve System, March 11, 1994.
Jennifer J. Johnson,
Associate Secretary of the Board,
[FR Doc. 94-6219 Filed 3-16-94; 8:45 am]
BILLING CODE 6210-01-F