[Federal Register Volume 59, Number 36 (Wednesday, February 23, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3975]
[[Page Unknown]]
[Federal Register: February 23, 1994]
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FEDERAL RESERVE SYSTEM
Cardinal Bancshares, Inc., Lexington, Kentucky; Application to
Engage in Nonbanking Activities
Cardinal Bancshares, Inc., Lexington, Kentucky (Applicant), has
applied pursuant to section 4(c)(8) of the Bank Holding Company Act (12
U.S.C. 1843(c)(8)) (BHC Act) and section 225.23(a)(3) of the Board's
Regulation Y (12 CFR 225.23(a)(3)) to engage through its indirect
subsidiary, Mutual Service Corporation, Somerset, Kentucky (Company),
in securities brokerage activities pursuant to section 225.25(b)(15) of
Regulation Y, and to act as riskless principal in buying and selling in
secondary market trading all types of securities on the order of
investors. Applicant proposes that Company enter into an arrangement
with Compulife Investor Services, Inc., Richmond, Virginia (Compulife),
whereby joint employees of Company and Compulife will conduct the
proposed activities at branches of Applicant's thrift subsidiary,
Mutual Federal Savings Bank, Somerset, Kentucky. These activities will
be conducted throughout the United States.
Section 4(c)(8) of the BHC Act provides that a bank holding company
may, with Board approval, engage in any activity ``which the Board,
after due notice and opportunity for hearing, has determined (by order
or regulation) to be so closely related to banking or managing or
controlling banks as to be a proper incident thereto.'' The Board
previously has approved the proposed riskless principal activities, and
Applicant has stated that it will conduct these activities using the
same methods and procedures and subject to the prudential limitations
established by the Board in its previous orders. See J.P. Morgan &
Company Incorporated, 76 Federal Reserve Bulletin 26 (1990); and
Bankers Trust New York Corporation, 75 Federal Reserve Bulletin 829
(1989).
Any comments or requests for hearing should be submitted in writing
and received by William W. Wiles, Secretary, Board of Governors of the
Federal Reserve System, Washington, DC 20551, not later than March 18,
1994. Any request for a hearing on this application must, as required
by section 262.3(e) of the Board's Rules of Procedure (12 CFR
262.3(e)), be accompanied by a statement of the reasons why a written
presentation would not suffice in lieu of a hearing, identifying
specifically any questions of fact that are in dispute, summarizing the
evidence that would be presented at a hearing, and indicating how the
party commenting would be aggrieved by approval of the proposal. This
application may be inspected at the offices of the Board of Governors
or the Federal Reserve Bank of Cleveland.
Board of Governors of the Federal Reserve System, February 16,
1994.
Jennifer J. Johnson,
Associate Secretary of the Board.
[FR Doc. 94-3975 Filed 2-22-94; 8:45 am]
BILLING CODE 6210-01-F
