[Federal Register Volume 60, Number 237 (Monday, December 11, 1995)]
[Notices]
[Pages 63527-63528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-30038]



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FEDERAL RESERVE SYSTEM

Caisse Nationale de Credit Agricole, S.A.; Notice to Engage in 
Certain Nonbanking Activities

    Caisse Nationale de Credit Agricole, S.A., Paris, France 
(Notificant), has provided notice pursuant to section 4(c)(8) of the 
Bank Holding Company Act (12 U.S.C. 1843(c)(8)) (BHC Act) and section 
225.23(a)(3) of the Board's Regulation Y (12 CFR 225.23(a)(3)), to 
engage through CAL FP (US), Inc., New York, New York (Company), in the 
following activities:
    1. Acting as agent in the private placement of securities;
    2. Acting as riskless principal in the purchase and sale of all 
types of securities on behalf of customers;
    3. Providing securities brokerage services pursuant to 12 CFR 
225.25(b)(15)(i) and (ii);
    4. Providing investment advisory services pursuant to 12 CFR 
225.25(b)(4);
    5. Acting as broker or agent and providing advisory services with 
respect to interest rate and currency swaps and swap derivative 
products, and swaps, swap derivative products and over-the-counter 
options linked to certain commodities, stock, bond or commodity 
indices, a hybrid of interest rates and such commodities or indices, a 
specially tailored basket of securities selected by the parties, or 
single equity securities;
    6. Providing advisory services, including discretionary portfolio 
management services, with respect to futures and options on futures on 
financial and nonfinancial commodities; and
    7. Providing foreign exchange advisory and transactional services 
pursuant to 12 CFR 225.25(b)(17).
    Notificant has stated that it anticipates that an affiliate of 
Company would act as principal in transactions with respect to which 
Company has provided advisory and/or transactional services. Company 
would provide the proposed services throughout the world.
    Company is an indirect subsidiary of Credit Agricole Lazard 
Financial Products Limited, London, England (CALFP Holding). Notificant 
owns 75 percent of the capital of CALFP Holding, and Three Houses 
Investment Company, Limited, London, England 

[[Page 63528]]
(Three Houses), owns the remaining 25 percent. Notificant and Three 
Houses have equal voting rights in CALFP Holding. Three Houses is 
controlled by Lazard Freres & Co., LLC, New York, New York, Lazard 
Freres et Cie, Paris, France, and Lazard Brothers & Co., Limited, 
London, England.
    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. 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 reasonably be 
expected to produce public benefits that outweigh possible adverse 
effects.
    Notificant maintains that the Board previously has determined by 
regulation or order that the proposed activities are closely related to 
banking. See 12 CFR 225.25(b)(4), (15), (17) and (19); Security Pacific 
Corporation, 74 Fed. Res. Bull. 820 (1988); J.P. Morgan & Company, 
Incorporated, 80 Fed. Res. Bull. 151 (1994); Swiss Bank Corporation, 81 
Fed. Res. Bull. 185 (1995); CS Holding, 81 Fed. Res. Bull. 803 (1995); 
Bankers Trust New York Corporation, 75 Fed. Res. Bull. 829 (1989). 
Notificant has stated that Company would engage in the proposed 
activities in accordance with the limitations and conditions 
established by the Board in its regulations, related interpretations, 
and orders.
    In order to approve the proposal, the Board also must determine 
that the proposed activities to be conducted by Notificant ``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). Notificant believes 
that the proposal would produce public benefits that outweigh any 
potential adverse effects. In particular, Notificant maintains that the 
proposal would enhance competition in the relevant markets and would 
enable Notificant to offer its customers a broader range of services. 
Notificant also maintains that its proposal would not result in any 
adverse effects in light of the commitments it has made to the Board, 
including commitments designed to address the Board's concerns over the 
separation of a banking organization's activities from the activities 
of a co-venturer. See Banque Nationale de Paris, 80 Fed. Res. Bull. 638 
(1994); The Chuo Trust and Banking Company, 78 Fed. Res. Bull. 446 
(1992).
    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 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, not 
later than December 29, 1995. 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 Chicago.

    Board of Governors of the Federal Reserve System, December 5, 
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-30038 Filed 12-8-95; 8:45 am]
BILLING CODE 6210-01-F