[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