[Federal Register Volume 59, Number 52 (Thursday, March 17, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6219]
[[Page Unknown]]
[Federal Register: March 17, 1994]
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FEDERAL RESERVE SYSTEM
Banc One Corporation, Columbus, Ohio; Request for an Exemption
From Tying Provisions
Banc One Corporation, Columbus, Ohio (Banc One), has requested,
pursuant to section 106(b) of the Bank Holding Company Act Amendments
of 1970 (12 U.S.C. 1971 et seq.) (Section 106(b)), that the Board grant
an exemption to permit Banc One's subsidiary banks to vary the
consideration on a loan, deposit, discount, or trust service
(``traditional banking products'') for customers that receive first
lien mortgage loans on 1-4 family residential real estate (mortgage
loans) from Banc One's mortgage subsidiary, Banc One Mortgage
Corporation, Indianapolis, Indiana (BOMC). Banc One also has requested
an exemption to permit BOMC to vary the consideration on mortgage loans
for customers who have obtained or will obtain a traditional banking
product from any of Banc One's subsidiary banks. BOMC originates and
refinances mortgage loans, primarily for sale into the secondary
market.
In 1994, Banc One intends to reorganize BOMC as an operating
subsidiary of Bank One, Indianapolis, N.A., Indianapolis, Indiana. In
this connection, Banc One also has requested an exemption to permit its
banks and BOMC to continue to offer customers the price reductions
described above after the reorganization.
Section 106(b) permits a bank to fix or vary the consideration for
extending credit or furnishing services on condition that a customer
also obtain a traditional banking product from that bank. However,
Section 106(b) prohibits a bank from engaging in these same activities
on condition that the customer obtain any additional credit or services
from any affiliate. The Board may grant an exception that is not
contrary to the purposes of this provision.\1\
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\1\ See, e.g., 12 U.S.C. 1972(1).
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Banc One contends that its proposal is consistent with the purposes
of Section 106(b) because the proposal is not anticompetitive. Banc One
argues that the market for mortgage loans and for traditional banking
products is highly competitive, and that BOMC does not have sufficient
market share on a local, nationwide, or other basis to adversely affect
competition. Banc One also argues that the proposal will promote
competition and will not limit the availability of products to
consumers because the traditional banking products offered by Banc
One's subsidiary banks and mortgage loans from BOMC will be separately
available to customers.
Notice of Banc One's request is published solely in order to seek
the views of interested persons on the issues presented by the request
and does not represent a determination by the Board that the request
meets or is likely to meet the standards of Section 106(b). The request
may be inspected at the offices of the Board of Governors.
Any comments or requests for hearing should be submitted in writing
and received by William W. Wiles, Secretary of the Board of Governors
of the Federal Reserve System, Washington, DC 20551, not later than
April 15, 1994.
Board of Governors of the Federal Reserve System, March 11, 1994.
Jennifer J. Johnson,
Associate Secretary of the Board,
[FR Doc. 94-6219 Filed 3-16-94; 8:45 am]
BILLING CODE 6210-01-F
