[Federal Register Volume 62, Number 118 (Thursday, June 19, 1997)]
[Notices]
[Page 33411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16206]



[[Page 33411]]

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FEDERAL RESERVE SYSTEM


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

    The companies listed in this notice have given notice under section 
4 of the Bank Holding Company Act (12 U.S.C. 1843) (BHC Act) and 
Regulation      Y, (12 CFR Part 225) to engage de novo, or to acquire 
or control voting securities or assets of a company that engages either 
directly or through a subsidiary or other company, in a nonbanking 
activity that is listed in Sec.  225.28 of Regulation Y (12 CFR 225.28) 
or that the Board has determined by Order to be closely related to 
banking and permissible for bank holding companies. Unless otherwise 
noted, these activities will be conducted throughout the United States.
    Each notice is available for inspection at the Federal Reserve Bank 
indicated. Once the notice has been accepted for processing, it will 
also be available for inspection at the offices of the Board of 
Governors. Interested persons may express their views in writing on the 
question whether the proposal complies with the standards of section 4 
of the BHC Act.
    Unless otherwise noted, comments regarding the applications must be 
received at the Reserve Bank indicated or the offices of the Board of 
Governors not later than July 3, 1997.
    A. Federal Reserve Bank of New York (Betsy Buttrill White, Senior 
Vice President) 33 Liberty Street, New York, New York 10045-0001:
    1. Bankers Trust New York Corporation, New York, New York 
(``BTNY''); to acquire 100 percent of the voting shares of Alex Brown 
Inc., Baltimore, Maryland, and thereby engage in underwriting and 
dealing in, to a limited extent, all types of debt and equity 
securities other than interests in open end investment companies, See 
J. P. Morgan & Co., Inc., The Chase Manhattan Corp., Bankers Trust New 
York Corp., Citicorp and Security Pacific Corp., 75 Fed. Res. Bull. 192 
(1989); in making, acquiring, brokering and servicing loans or other 
extensions of credit for their own account and the account of others, 
pursuant to Sec.  225.28(b)(1) of the Board's Regulation Y; in 
performing functions or activities that may be performed by a trust 
company (including activities of a fiduciary, agency or custodial 
nature), pursuant to Sec.  225.28(b)(5) of the Board's Regulation Y; in 
acting as investment or financial advisor, pursuant to Sec.  
225.28(b)(6) of the Board's Regulation Y; in providing securities 
brokerage services (including securities clearing and securities 
execution services on an exchange), alone and in combination with 
investment advisory services, and incidental activities (including 
related securities credit activities and custodial services), pursuant 
to Sec.  225.28(b)(7) of the Board's Regulation Y; in buying and 
selling in the secondary market all types of securities on the order of 
customers as a riskless principal to the extent of engaging in a 
transaction in which the company, after receiving an order to buy (or 
sell) a security from a customer, purchases (or sells) the security for 
its own account to offset a contemporaneous sale to (or purchase from) 
the customer, pursuant to Sec.  225.28(b)(7) of the Board's Regulation 
Y; in acting as agent for the private placement of securities in 
accordance with the requirements of the Securities Act of 1933 and the 
rules of the Securities and Exchange Commission, pursuant to Sec.  
225.28(b)(7) of the Board's Regulation Y; in underwriting and dealing 
in obligations of the United States, general obligations of states and 
their political subdivisions, and other obligations that state member 
banks of the Federal Reserve System may be authorized to underwrite and 
deal in under 12 U.S.C. 24 and 335, pursuant to Sec.  225.28(b)(8) of 
the Board's Regulation Y; and in providing administrative and other 
services to investment companies, including open-end investment 
companies (``mutual funds''). See Barclays PLC, 82 Fed. Res. Bull. 158 
(1996); Bank of Ireland, 82 Fed. Res. Bull. 1129 (1996). BTNY would 
engage in these activities in accordance with the limitations and 
conditions previously established by the Board by regulation or order, 
with certain exceptions relating to the proposed provision of advisory 
and administrative services to mutual funds that are discussed in the 
notice. BTNY also intends to acquire certain offshore subsidiaries, 
companies engaged in providing services to other Alex Brown affiliates, 
and proprietary investments currently owned by Alex Brown.
    In order to approve the proposal, the Board must determine that the 
proposed activities to be conducted by BTNY ``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). BTNY believes that 
the proposal would produce public benefits that outweigh any potential 
adverse effects. In particular, BTNY maintains that the proposal would 
not materially reduce competition in the relevant markets and would 
enable BTNY to offer its customer a broader range of products. BTNY 
also maintains that its proposal 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 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 request for a hearing on this notice 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 the approval of the proposal.

    Board of Governors of the Federal Reserve System, June 17, 1997.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 97-16206 Filed 6-17-97; 12:38 am]
BILLING CODE 6210-01-F