What Federal Reserve approvals are necessary for financial subsidiaries?

CFR · 2024-01-01 · US · Title 12

(a) (2) A state member bank may not engage in any additional activity pursuant to § 208.72(a)(1) or (2) through an existing financial subsidiary unless the state member bank files a notice (in letter form, with enclosures) with the appropriate Reserve Bank. (b) (1) In the case of a notice filed under paragraph (a)(1) of this section, describe the transaction(s) through which the bank proposes to acquire control of, or an interest in, the financial subsidiary; (2) Provide the name and head office address of the financial subsidiary; (3) Provide a description of the current and proposed activities of the financial subsidiary and the specific authority permitting each activity; (4) Provide the capital ratios as of the close of the previous calendar quarter for all relevant capital measures, as defined in section 38 of the Federal Deposit Insurance Act (12 U.S.C. 1831o), for the bank and each of its depository institution affiliates; (5) Certify that the bank and each of its depository institution affiliates was well capitalized at the close of the previous calendar quarter and is well capitalized as of the date the bank files its notice; (6) Certify that the bank and each of its depository institution affiliates is well managed as of the date the bank files its notice; (7) Certify that the bank meets the debt rating or alternative requirement of § 208.71(b), if applicable; and (8) Certify that the bank and its financial subsidiaries are in compliance with the asset limit set for

official document · source cfr-2024 · id 12:§ 208.76