[Federal Register Volume 62, Number 75 (Friday, April 18, 1997)]
[Notices]
[Pages 19171-19172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-10026]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency
[Docket No. 97-10]


Operating Subsidiary Notice

AGENCY: Office of the Comptroller of the Currency, Treasury.

ACTION: Notice and request for public comment on an operating 
subsidiary application.

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SUMMARY: The Office of the Comptroller of the Currency (OCC) requests 
public comment concerning an application filed by Zions First National 
Bank, Salt Lake City, Utah to underwrite, deal in, and invest in 
securities of states and their political subdivisions through an 
operating subsidiary of the bank.

DATES: Comments should be submitted on or before May 19, 1997.

ADDRESSES: Written comments regarding the application should be sent to 
Office of the Comptroller of the Currency, Communications Division, 250 
E Street, SW, Washington, DC 20219, Attn: Docket No. 97-10, Application 
Control Number 97-WO-08-0003. In addition, comments may be sent by 
facsimile transmission to fax number (202) 874-5274 or by Internet mail 
to [email protected]. A copy of the application will be 
available for inspection and copying at the OCC's Public Reference 
Room, 250 E Street, SW, Washington, DC 20219, through the OCC's 
Information Line at (202) 479-0141, or through the OCC's Web Site at 
HTTP://WWW.OCC.TREAS.GOV. Appointments for inspection of comments or 
the application can be made by calling (202) 874-5043.

FOR FURTHER INFORMATION CONTACT: Elizabeth Malone, Senior Attorney or 
Elizabeth Kirby, Senior Attorney, Securities and Corporate Practices 
Division, (202) 874-5210, or Robert Sihler, Senior Bank Structure 
Analyst, Bank Organization and Structure, (202) 874-5060.

SUPPLEMENTARY INFORMATION: A national bank may establish or acquire an 
operating subsidiary to conduct, or may conduct in an existing 
operating subsidiary, activities that are part of or incidental to the 
business of banking, as determined by the OCC pursuant to 12 U.S.C. 24 
(Seventh) and other activities permissible for national banks or their 
subsidiaries under other statutory authority. Section 5.34(d) of 12 CFR 
Part 5 authorizes the OCC to permit a national bank to conduct an 
activity

[[Page 19172]]

through its operating subsidiary that is different from that 
permissible for the parent national bank, subject to the additional 
requirements specified in 12 CFR 5.34(f). For activities not previously 
approved by the OCC, the OCC provides public notice and opportunity for 
comment on the application by publishing notice of the application in 
the Federal Register.
    Zions First National Bank (Zions) , Salt Lake City, Utah has 
applied to the OCC pursuant to 12 CFR 5.34(f) to commence the activity 
described below in an existing operating subsidiary. This subsidiary 
currently provides brokerage and investment advisory services relating 
to securities and investment products. Zions' application generally 
describes the proposed activities in which the operating subsidiary 
would engage as follows:
    The subsidiary would underwrite, deal in, and invest in securities 
of states and their political subdivisions. These securities would 
include: (i) Obligations presently defined by the Comptroller as 
general obligations of states and political subdivisions (General 
Obligation Securities); and (ii) other obligations of states and their 
political subdivisions that do not qualify under the Comptroller's 
current definitions as general obligations (Revenue Bonds).
    Zions currently underwrites, deals in, and invests in General 
Obligation Securities, and Zions' sales force markets these products to 
an institutional clientele. Zions will continue to underwrite, deal in, 
and invest in General Obligation Securities, and proposes that its 
subsidiary conduct similar activities with respect to Revenue Bonds. 
Zions will provide brokerage and investment advice, as agent, to 
institutional customers regarding Revenue Bonds underwritten by the 
subsidiary. In all instances, Zions' sales representatives will fully 
disclose that Zions is acting only as agent and that the securities are 
underwritten by the subsidiary, not Zions. The subsidiary will clear 
all transactions in municipal securities through Zions, and Zions will 
fully disclose in public contacts, including in confirmations, that it 
acts solely as clearing agency and that the subsidiary is the 
underwriter (or dealer, if appropriate).
    The OCC reviews operating subsidiary applications to determine 
whether the proposed activities are legally permissible for an 
operating subsidiary and to ensure that the proposal is consistent with 
safe and sound banking practices and OCC policy and does not endanger 
the safety or soundness of the parent national bank. In publishing 
notice of the application, the OCC does not take a position on issues 
raised by the proposal. Notice is published solely to seek the views of 
interested persons on the issues presented and does not represent a 
determination by the OCC that the proposal meets, or is likely to meet, 
the criteria outlined above. Interested parties are invited to comment 
on any aspect of the application.

    Dated: April 14, 1997.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 97-10026 Filed 4-17-97; 8:45 am]
BILLING CODE 4810-33-P