[Federal Register Volume 63, Number 36 (Tuesday, February 24, 1998)]
[Notices]
[Pages 9234-9235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-4585]


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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. The notice also will 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 March 10, 1998.
    A. Federal Reserve Bank of New York (Betsy Buttrill White, Senior 
Vice President) 33 Liberty Street, New York, New York 10045-0001:
    1. Union Bank of Switzerland, Zurich, Switzerland (``UBS'') and UBS 
AG, Zurich, Switzerland (``New UBS''); to acquire Swiss Bank 
Corporation, Basle, Switzerland (``SBC''), and thereby acquire its 
subsidiaries and engage worldwide in certain nonbanking activities. 
Under the proposed transaction, SBC would merge into New UBS, which 
currently is a subsidiary of UBS. Shortly thereafter, UBS would merge 
into New UBS and New UBS would acquire the nonbanking subsidiaries of 
UBS. The nonbanking activities and companies involved in the 
transaction are listed in the notice. UBS, through various 
subsidiaries, currently conducts certain nonbanking activities in the 
United States, including underwriting and dealing in equity and debt 
securities that a state member bank may not underwrite and deal in 
(``bank-ineligible securities''), pursuant to grandfather rights 
established by section 8(c) of the International Banking Act of 1978 
(IBA) (12 U.S.C. Sec.  3106(c)). Following consummation of the proposed 
transaction with SBC, UBS and New UBS propose to transfer certain 
nonbanking activities currently conducted by subsidiaries of UBS 
operating pursuant to the grandfather rights established by section 
8(c) of the IBA to subsidiaries that would operate pursuant to section 
4(c)(8) of the Bank Holding Company (BHC) Act, and thereby engage in 
such activities worldwide pursuant to section 4(c)(8) of the BHC Act 
and the Board's Regulation Y.
    In connection with the transactions described above, UBS and New 
UBS propose to engage in or acquire companies engaged in nonbanking 
activities including: (a) making, acquiring, or servicing loans or 
other extensions of credit pursuant to Sec.  225.28(b)(1) of the 
Board's Regulation Y; (b) activities related to making, acquiring, 
brokering or servicing loans or other extensions of credit pursuant to 
Sec.  225.28(b)(2) of the Board's Regulation Y, including acquiring 
debt that is in default at the time of acquisition; (c) leasing 
personal or real property or acting as agent, broker, or adviser in 
leasing such property pursuant to Sec.  225.28(b)(3) of the Board's 
Regulation Y; (d) performing functions or activities that may be 
performed by a trust company pursuant to Sec.  225.28(b)(5) of the 
Board's Regulation Y; (e) providing financial and investment advisory 
services pursuant to Sec.  225.28(b)(6) of the Board's Regulation Y; 
(f) providing securities brokerage, riskless principal, private 
placement, futures commission merchant and other agency transactional 
services pursuant to Sec.  225.28(b)(7) of the Board's Regulation Y; 
(g) underwriting and dealing in government obligations and other 
obligations that state member banks may underwrite and deal in (``bank-
eligible securities''), engaging in investment and trading activities, 
and buying and selling bullion and related activities pursuant to Sec.  
225.28(b)(8) of the Board's Regulation Y and Swiss Bank Corporation, 81 
Fed. Res. Bull. 185 (1995); (h) engaging in community development 
activities pursuant to Sec.  225.28(b)(12) of the Board's Regulation

[[Page 9235]]

Y; (i) serving as general partner of certain private investment limited 
partnerships in accordance with the BHC Act and the Board's decisions 
and interpretations thereunder, see Meridian Bancorp, Inc., 80 Fed. 
Res. Bull. 736 (1994); and (j) underwriting and dealing in, to a 
limited extent, all types of bank-ineligible securities, except 
ownership interests in open-end investment companies, see Canadian 
Imperial Bank of Commerce, 76 Fed. Res. Bull. 158 (1990) and J.P. 
Morgan & Co., Inc., 75 Fed. Res. Bull. 192 (1989).

    Board of Governors of the Federal Reserve System, February 18, 
1998.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 98-4585 Filed 2-23-98; 8:45 am]
BILLING CODE 6210-01-F