[Federal Register Volume 61, Number 153 (Wednesday, August 7, 1996)]
[Notices]
[Pages 41161-41162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20054]


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FEDERAL RESERVE SYSTEM


Notice of Proposals to Engage in Permissible Nonbanking 
Activities or the Acquisition of Companies that are Engaged in 
Permissible Nonbanking Activities

    National Westminster Bank Plc, London, England (``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 indirectly 
acquire Greenwich Capital Holdings, Inc., Greenwich, Connecticut 
(``Greenwich'') and its subsidiaries located in the United States from 
the Long-Term Credit Bank of Japan, Limited, Tokyo, Japan. As a result 
of this acquisition, Notificant proposes to engage in the following 
nonbanking activities nationwide:
    1. Underwriting and dealing, to a limited extent, in municipal 
revenue bonds, 1-4 family mortgage-related securities, commercial 
paper, and consumer receivable-related securities (collectively, 
``bank-ineligible securities'');
    2. Acting as agent in the private placement of all types of 
securities;
    3. Buying and selling all types of securities on the order of 
customers as ``riskless principal'';
    4. Trading in foreign exchange for its own account;
    5. Trading for its own account foreign exchange forward, futures, 
options, and options on futures contracts for purposes other than 
hedging;
    6. Acting as originator, principal, broker, agent, or adviser to 
institutional customers with respect to interest rate and currency 
swaps and related swap derivative products;
    7. Purchasing and selling for its own account (i) gold and silver 
bullion, bars, rounds and coins (``precious metals''); and (ii) 
forward, options, futures and options on futures contracts for such 
precious metals for purposes of hedging positions in the underlying 
precious metals (``precious metals contracts'');
    8. Underwriting and dealing in government obligations and money 
market instruments pursuant to Sec.  225.25(b)(16) of the Board's 
Regulation Y (12 CFR 225.25(b)(16));
    9. Acting as a futures commission merchant pursuant to Sec.  
225.25(b)(18) of the Board's Regulation Y (12 CFR 225.25(b)(18));
    10. Acting as an investment or financial adviser pursuant to Sec.  
225.25(b)(4) of the Board's Regulation Y (12 CFR 225.25(b)(4));
    11. Arranging commercial real estate equity financing pursuant to 
Sec.  225.25(b)(14) of the Board's Regulation Y (12 CFR 225.25(b)(14));
    12. Providing investment advice on financial futures and options on 
futures pursuant to Sec.  225.25(b)(19) of the Board's Regulation Y (12 
CFR 225.25(b)(19));
    13. Making, acquiring, and servicing loans pursuant to Sec.  
225.25(b)(1) of the Board's Regulation Y (12 CFR 225.25(b)(1));
    14. Providing securities brokerage services pursuant to Sec.  
225.25(b)(15) of the Board's Regulation Y (12 CFR 225.25(b)(15)); and
    15. Leasing personal or real property or acting as agent, broker, 
or adviser in leasing such property pursuant to Sec.  225.25(b)(5) of 
the Board's Regulation Y (12 CFR 225.25(b)(5)).
    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)(1),(4), (5), (14), (15), (16), (18), and 
(19). See also The Long Term Credit Bank of Japan, Limited, 79 Federal 
Reserve Bulletin 347 (1993); 79 Federal Reserve Bulletin 345 (1993); 76 
Federal Reserve Bulletin 554 (1990); and 74 Federal Reserve Bulletin 
573 (1988). Notificant also has stated that it will conduct the 
proposed activities subject

[[Page 41162]]

to the limitations established by the Board in its previous orders.
    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 August 
21, 1996. Any request for a hearing on this proposal must, as required 
by Sec.  262.3(e) of the Board's Rules of Procedure (12 C.F.R. 
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. The 
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, August 1, 
1996.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 96-20054 Filed 8-6-96; 8:45am]
BILLING CODE 6210-01-F