[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Notices]
[Page 13987]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6347]
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FEDERAL RESERVE SYSTEM
Mellon Bank Corporation, Pittsburgh, Pennsylvania, and Chemical
Banking Corporation, New York, New York; Notices to engage in certain
Nonbanking Activities
Mellon Bank Corporation, Pittsburgh, Pennsylvania (Mellon), and
Chemical Banking Corporation, New York, New York (Chemical), have
applied pursuant to section 4(c)(8) of the Bank Holding Company Act (12
U.S.C. 1843(c)(8)) (BHC Act) and Sec. 225.23(a)(3) of the Board's
Regulation Y (12 CFR 225.23(a)(3)), to each acquire a 50 percent
interest in a Delaware partnership, Chemical Mellon Shareholder
Services, Ridgefield Park, New Jersey (Partnership). Mellon and
Chemical would transfer substantially all the assets of their
respective shareholder services businesses to Partnership, and
Partnership would provide the following services to issuers of equity
securities: shareholder account maintenance; dividend disbursement;
mailings to equity security holders; annual meeting services; transfer
and issuance, as agent, of equity security certificates; investor
relations; reorganization services; stock option processing,
recordkeeping and account maintenance; restricted securities processing
and recordkeeping; stock watch services and proxy solicitation; and
dividend reinvestment and stock purchase plan administration. In
addition, Partnership would provide ``private label'' bondholder
account maintenance for certain existing customers of Mellon. Chemical
and Mellon maintain that the Board previously has determined that the
proposed activities are closely related to banking. See 12 CFR 225.25
(b)(3). These activities will be conducted nationwide.
In order to approve the proposal, the Board must determine that the
proposed activities to be conducted by Partnership ``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). Chemical and Mellon
believe that the proposal will produce public benefits that outweigh
any potential adverse effects. In particular, Chemical and Mellon
maintain that the proposal will enhance competition and enable Chemical
and Mellon to offer their customers greater convenience and
accessibility. Chemical and Mellon also maintain that their proposal
would not diminish competition in light of the qualitative
characteristics of the industry.
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 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, not
later than March 31, 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, the Federal Reserve Bank of Cleveland, or the Federal
Reserve Bank of New York.
Board of Governors of the Federal Reserve System, March 9, 1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-6347 Filed 3-14-95; 8:45 am]
BILLING CODE 6210-01-F
