[Federal Register Volume 60, Number 49 (Tuesday, March 14, 1995)]
[Notices]
[Pages 13726-13727]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6203]
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FEDERAL RESERVE SYSTEM
HSBC Holdings plc and HSBC Holdings BV; Application to Engage in
Nonbanking Activities
HSBC Holdings plc, London, England, and HSBC Holdings BV,
Amsterdam, The Netherlands (Applicants), have 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 of the Board's Regulation Y (12 CFR
225.23), to engage de novo through their wholly owned subsidiary, James
Capel Incorporated, New York, New York (Company), in the following
nonbanking activities:
(1) Providing investment and financial advice, pursuant to Sec.
225.25(b)(4) of Regulation Y;
(2) Providing securities brokerage service on a discount and full-
service basis, pursuant to Sec. 225.25(b)(15) of Regulation Y;
(3) Acting as agent in the private placement of all types of
securities, and providing related advisory services; and
(4) Purchasing and selling all types of securities on the order of
customers as a ``riskless principal.''
Applicant seeks approval to conduct the proposed activities
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.'' 12 U.S.C. Sec.
1843(c)(8). In determining whether a proposed activity is closely
related to banking for purposes of the BHC Act, the Board considers,
inter alia, the criteria set forth in National Courier Association v.
Board of Governors of the Federal Reserve System, 516 F.2d 1229 (D.C.
Cir. 1975). These considerations are: (1) whether banks generally have
in fact provided the proposed services; (2) whether banks generally
provide services that are operationally or functionally so similar to
the proposed services as to equip them particularly well to provide the
proposed services; and (3) whether banks generally provide services
that are so integrally related to the proposed services as to require
their provision in a specialized form. See 516 F.2d at 1237. In
addition, the Board may consider any other basis that may demonstrate
that the activity has a reasonable or close relationship to banking or
managing or controlling banks. Board Statement Regarding Regulation Y,
49 Federal Register 806 (1984).
Applicant states that the Board previously has determined by
regulation that some of the proposed activities, when conducted within
limitations established by the Board, are closely related to banking
for purposes of section 4(c)(8) of the BHC Act. See 12 CFR 225.25(b)(4)
(providing investment and financial advice); 12 CFR 225.25(b)(15)
(providing securities brokerage service on a discount and full-service
basis).
Applicant also states that the Board has determined by order that
the remaining proposed activities, when conducted within the
limitations established by the Board in its previous orders, are
closely related to banking. See J.P. Morgan & Co. Incorporated, 76
Federal Reserve Bulletin 26 (1990) and Bankers Trust New York
Corporation, 75 Federal Reserve Bulletin 829 (1989) (private placement
and riskless principal activities).
Applicant maintains that Company would conduct the foregoing,
previously approved activities in conformity with the conditions and
limitations established by the Board in prior cases.
In order to approve the proposal, the Board must determine that the
proposed activities to be conducted by Company ``can reasonably be
expected to produce benefits to the public, such as greater
convenience, increased competition, or gains in efficiency, that
outweigh possible adverse effects, such as undue concentration of
resources, decreased or unfair competition, conflicts of interests, or
unsound banking practices.'' 12 U.S.C. 1843(c)(8).
Applicant believes that the proposal will produce public benefits
that outweigh any potential adverse effects. In particular, Applicant
maintains that the proposal will enhance competition and efficiency. In
addition, Applicant states that the proposed activities will not result
in adverse effects such as an undue concentration of resources,
decreased or unfair competition, conflicts of interest, or unsound
banking practices.
In publishing the proposal for comment, the Board does not take a
position on issues raised by the proposal. Notice of the proposal is
published solely in order to seek the views of interested persons on
the issues presented by the application, and does not represent a
determination by the Board that the proposal meets or is likely to meet
the standards of the BHC Act.
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, D.C. 20551, on or before March 28,
1995. Any request for a hearing on this application must, as required
by Sec. 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 New York.
[[Page 13727]] Board of Governors of the Federal Reserve System,
March 8, 1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-6203 Filed 3-13-95; 8:45 am]
BILLING CODE 6210-01-F
