(37) There are three grants of authority for a FHC to engage in physical commodities activities under the BHCA
: (1) the "complementary to a financial activity" provision, (38) (2) the merchant banking provision, (39) and (3) the Grandfather Provision.
In 1984, the FRB revised its Regulation Y, adding a requirement that, "a bank holding company should serve as a source of strength for its bank subsidiaries, and conduct its bank and nonbank operations in accordance with sound banking policy and practice." The FRB justified this regulation by virtue of its power to set holding company capital from [section] 3(c)(2) of the BHCA
, and its power granted by the Financial Institutions Supervisory Act (FISA) to issue cease and desist (C&D) orders to stop unsafe and unsound banking practices.
The emergency provisions of the BHCA
had been invoked for numerous transactions during the economic crisis.
such services of the banking entity." BHCA
The act does, however, implement a new policy consideration under the BHCA
As a result, a key question in implementing the BHCA
was to establish where permissible non-banking activities of registered BHCs started and where they stopped.
is administered by the FRB, which must solicit the
A key original goal of the BHCA
was to limit the comingling of banking and commerce, that is, to restrict the extent to which BHCs or their subsidiaries could engage in nonfinancial activities (more details and historical background are found in Omarova and Tahyar, forthcoming; Santos 1998; Aharony and Swary 1981; and Klebaner 1958).
Overlooked by the BHCA
of 1956 was a bank holding company that owned only one bank.
Julie Fleck RN, CNOR, BHCA
, Chief Operating Officer, Pad(view Orthopedic Hospital Scott D.
The starting point in the analysis is the Bank Holding Company Act of 1956, as amended ("BHCA