[Federal Register Volume 60, Number 121 (Friday, June 23, 1995)]
[Notices]
[Pages 32681-32682]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15410]



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FEDERAL RESERVE SYSTEM

Canadian Imperial Bank of Commerce, Toronto, Ontario, Canada; 
Notice to Engage in Nonbanking Activities

    Canadian Imperial Bank of Commerce, Toronto, Ontario, Canada 
(Notificant), has given notice 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(a)(3) of the Board's Regulation Y (12 CFR 225.23(a)(3)), to 
acquire, indirectly through its subsidiary Wood Gundy Corporation, New 
York, New York (Company), certain assets and assume certain liabilities 
of The Argosy Securities Group, L.P. and The Argosy Group, L.P., both 
of New York, New York. Following the proposed acquisition, Notificant 
will continue to engage in various securities and securities-related 
activities described below on a nationwide basis. Notificant previously 
received Board approval to engage in the proposed activities through 
Company. See Canadian Imperial Bank of Commerce, 74 Federal Reserve 
Bulletin 571 (1988); 76 Federal Reserve Bulletin 158 (1990); and 76 
Federal Reserve Bulletin 548 (1990).
    Notificant proposes to continue to engage in the following 
activities previously authorized by the Board:
    (1) Providing investment advisory services pursuant to Sec.  
225.25(b)(4) of Regulation Y (12 CFR 225.25(b)(4));
    (2) providing advice on swaps and related contracts pursuant to 
Sec.  225.25(b)(4)(vi)(A)(2) of Regulation Y (12 CFR 
225.25(b)(4)(vi)(A)(2));
    (3) providing financial advice, for example advice on mergers, 
divestitures, recapitalizations and loan syndications, pursuant to 
Sec.  225.25(b)(4)(vi)(A)(1) of Regulation Y (12 CFR 
225.25(b)(4)(vi)(A)(1)).
    Notificant also proposes to continue to engage in the following 
activities which previously have been determined by the Board by Order 
to be closely related to banking.
    (1) Underwriting and dealing in municipal revenue bonds, 
residential mortgage-related securities, consumer-receivable 
securities, and commercial paper.
    (2) underwriting and dealing in debt securities and equity 
securities of all types;
    (3) acting as agent, in the private placement of all types of 
securities; and
    (4) acting as a riskless principal in the purchase and sale of all 
types of securities on the order of investors.
    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 
[[Page 32682]] determined (by order or regulation) to be so closely 
related to banking or managing or controlling banks as to be proper 
incident thereto.'' This statutory test requires that two separate 
tests be met for an activity to be permissible for a bank holding 
company. First, the Board must determine that the activity is, as a 
general matter, ``closely related to banking.'' Second, the Board must 
find in a particular case that the performance of the activity by the 
applicant bank holding company may be reasonably be expected to produce 
public benefits that outweigh possible adverse effects.
    Notificant maintains that the Board previously has determined that 
the proposed activities are ``so closely related to banking or managing 
or controlling banks as to be proper incident thereto.'' The Board 
previously has approved, by order, the proposed private placement and 
riskless principal activities, and Notificant has stated that it will 
continue to conduct the proposed activities using the same methods and 
subject to the prudential limitations established by the Board in its 
previous orders. See J.P. Morgan & Co. Incorporated, 76 Federal Reserve 
Bulletin 26 (1990); Bankers Trust New York Corporation, 75 Federal 
Reserve Bulletin 829 (1989).
    The Board also has previously approved, by order, underwriting and 
dealing in, to a limited extent, all types of debt and equity 
securities. See Canadian Imperial Bank of Commerce, 76 Federal Reserve 
Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., 73 Federal 
Reserve Bulletin 192 (1989) (1989 Section 20 Order), aff'd sub nom. 
Securities Industry Association v. Board of Governors of the Federal 
Reserve System, 900 F.2d 360 (D.C. Cir. 1990). Notificant has stated 
that it will continue to conduct the proposed underwriting and dealing 
activities using the same methods and procedures, and subject to the 
same prudential limitations established by the Board in the 1989 
Section 20 Order, as modified by the Order Approving Modifications to 
Section 20 Orders, 75 Federal Reserve Bulletin 751 (1989), the Order 
Approving Modifications to the Section 20 Orders, 79 Federal Reserve 
Bulletin 226 (1993), and the Supplement to Order Approving 
Modifications to Section 20 Orders, 79 Federal Reserve Bulletin 360 
(1993), including the Board's 10 percent revenue limitation on such 
activities.
    Notificant also takes the position that the proposed acquisition 
will benefit the public. Notificant states that the expected benefits 
to the public include increased competition, expanded products and 
services, and gains in efficiency. The proposed acquisition also would 
allow Notificant to offer customers expanded services at competitive 
costs. Notificant also maintains that the proposed activities would not 
result in any adverse effects.
    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 notice, 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, not later than July 7, 
1995. Any request for 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 notice may be inspected at the offices of the Board of 
Governors or the Federal Reserve Bank of New York.

    Board of Governors of the Federal Reserve System, June 19, 1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-15410 Filed 6-22-95; 8:45 am]
BILLING CODE 6210-01-F