Activities closely related to banking.

CFR · 2024-01-01 · US · Title 12

During the course of the Board's proceedings pertaining to courier services, objections were made that courier activities were not a proper incident to banking because of the possibility that holding companies would or had engaged in unfair competitive practices. The Board believes that adherence to the following principles will eliminate or reduce to an insignificant degree any possibility of unfair competition: a. A holding company courier subsidiary established under section 4(c)(8) should be a separate, independent corporate entity, not merely a servicing arm of a bank. b. As such, the subsidiary should exist as a separate, profit-oriented operation and should not be subsidized by the holding company system. c. Services performed should be explicitly priced, and shall not be paid for indirectly, for example, on the basis of deposits maintained at or loan arrangements with affiliated banks. 1. 2. 3.

official document · source cfr-2024 · id 12:§ 225.129