[Federal Register Volume 59, Number 174 (Friday, September 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-22541]
[[Page Unknown]]
[Federal Register: September 9, 1994]
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FEDERAL RESERVE SYSTEM
The Sakura Bank, Limited; Application To Engage in Nonbanking
Activities
The Sakura Bank, Limited, Tokyo, Japan (Applicant), has applied
pursuant to section 4(c)(8) of the Bank Holding Company Act (12 U.S.C.
1843(c)(8)) (BHC Act) and Sec. 225.23 of the Board's Regulation Y (12
CFR 225.23), to engage de novo through its wholly owned subsidiary,
Sakura Securities (USA) Inc., New York, New York (Company), in the
following nonbanking activities:
(1) Acting as agent in the private placement of all types of
securities, and providing related advisory services; and
(2) Purchasing and selling all types of securities on the order of
customers as a riskless principal.
Applicant seeks approval to conduct the proposed activities
throughout the United States and abroad.
Section 4(c)(8) of the BHC Act provides that a bank holding company
may, with Board approval, engage in any activity which the Board after
due notice and opportunity for hearing has determined (by order or
regulation) to be so closely related to banking or managing or
controlling banks as to be a proper incident thereto. 12 U.S.C.
1843(c)(8). In determining whether a proposed activity is closely
related to banking for purposes of the BHC Act, the Board considers,
inter alia, the criteria set forth in National Courier Association
versus Board of Governors of the Federal Reserve System, 516 F.2d 1229
(D.C. Cir. 1975). These considerations are: (1) whether banks generally
have in fact provided the proposed services; (2) whether banks
generally provide services that are operationally or functionally so
similar to the proposed services as to equip them particularly well to
provide the proposed services; and (3) whether banks generally provide
services that are so integrally related to the proposed services as to
require their provision in a specialized form. See 516 F.2d at 1237. In
addition, the Board may consider any other basis that may demonstrate
that the activity has a reasonable or close relationship to banking or
managing or controlling banks. Board Statement Regarding Regulation Y,
49 FR 806 (1984).
Applicant states that the Board previously has determined by order
that each of the proposed activities, when conducted within the
limitations established by the Board in its previous orders, are
closely related to banking, and, where applicable, consistent with
section 20 of the Glass-Steagall Act (12 U.S.C. 377). See, e.g., J.P.
Morgan & Co. Incorporated, et al., 75 Federal Reserve Bulletin 192
(1989), aff'd sub nom. Securities Industries Ass'n versus Board of
Governors of the Federal Reserve System, 900 F.2d 360 (D.C. Cir. 1990),
Order Approving Modifications to the Section 20 Orders, 75 Federal
Reserve Bulletin 751 (1989), Order Approving Modifications to the
Section 20 Orders, 79 Federal Reserve Bulletin 226 (1993), and
Supplement to Order Approving Modifications to Section 20 Orders, 79
Federal Reserve Bulletin 360 (1993) (underwriting and dealing
activities); and Bankers Trust New York Corporation, 75 Federal Reserve
Bulletin 829 (1989) (private placement and riskless principal
activities).
Applicant maintains that Company will conduct the foregoing,
previously approved activities in conformity with the conditions and
limitations established by the Board in prior cases.
In order to approve the proposal, the Board must determine that the
proposed activities to be conducted by Company can reasonably be
expected to produce benefits to the public, such as greater
convenience, increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices. 12 U.S.C. 1843(c)(8).
Applicant believes that the proposal will produce public benefits
that outweigh any potential adverse effects. In particular, Applicant
maintains that the proposal will enhance competition and efficiency. In
addition, Applicant states that the proposed activities will not result
in adverse effects such as an undue concentration of resources,
decreased or unfair competition, conflicts of interest, or unsound
banking practices.
In publishing the proposal for comment, the Board does not take a
position on issues raised by the proposal. Notice of the proposal is
published solely in order to seek the views of interested persons on
the issues presented by the application, and does not represent a
determination by the Board that the proposal meets or is likely to meet
the standards of the BHC Act.
Any comments or requests for hearing should be submitted in writing
and received by William W. Wiles, Secretary, Board of Governors of the
Federal Reserve System, Washington, D.C. 20551, on or before September
19, 1994. Any request for a hearing on this application must, as
required by Sec. 262.3(e) of the Board's Rules of Procedure (12 CFR
262.3(e)), be accompanied by a statement of the reasons why a written
presentation would not suffice in lieu of a hearing, identifying
specifically any questions of fact that are in dispute, summarizing the
evidence that would be presented at a hearing, and indicating how the
party commenting would be aggrieved by approval of the proposal.
This application may be inspected at the offices of the Board of
Governors or the Federal Reserve Bank of San Francisco.
Board of Governors of the Federal Reserve System, September 7,
1994.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 94-22541 Filed 9-8-94; 8:45 am]
BILLING CODE 6210-01-P