[Federal Register Volume 60, Number 73 (Monday, April 17, 1995)]
[Notices]
[Page 19260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9363]
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FEDERAL RESERVE SYSTEM
National City Corporation; Application to engage in certain
Nonbanking Activities
National City Corporation, Cleveland, Ohio (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 Sec. 225.23(a)(3) of the Board's Regulation
Y (12 CFR 225.23(a)(3)), to acquire Raffensperger, Hughes & Co.,
Incorporated, Indianapolis, Indiana, and thereby engage through NatCity
Investments, Inc., Cleveland, Ohio (Company), in underwriting and
dealing in debt and equity securities of all types, other than shares
of open-end investment companies. These activities will be conducted
throughout the United States.
Applicant maintains that the Board previously has determined that
the proposed activities are closely related to banking. Applicant
states that Company would conduct the proposed activities within the
limitations and prudential guidelines established by the Board in
previous orders. See Canadian Imperial Bank of Commerce, 76 Federal
Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., 75
Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities
Industries Ass'n v. Board of Governors of the Federal Reserve System,
900 F.2d 360 (D.C. Cir. 1990); and Citicorp, et al., 73 Federal Reserve
Bulletin 473 (1987), aff'd sub nom. Securities Industry Ass'n v. Board
of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.),
cert. denied, 486 U.S. 1059 (1988). In connection with its application,
Applicant has requested permission to retain the director and officer
interlocks between Company and its affiliated banks previously
permitted by the Board. See National City Corporation, 80 Federal
Reserve Bulletin 346 (1994). Applicant also has requested that the
securities brokerage subsidiary of National City Bank, Cleveland, Ohio,
be permitted to act as introducing broker for customers in securities
transactions that would be forwarded to Company for execution and
clearance, and that Company be permitted to calculate compliance with
the revenue limitation on an annualized basis during the first year
following consummation of the acquisition since Applicant is acquiring
a going concern. See First of America Corporation, 80 Federal Reserve
Bulletin 1120 (1994); Dauphin Deposit Corporation, 77 Federal Reserve
Bulletin 672 (1991).
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. Sec. 1843(c)(8). Applicant
believes that the proposal would produce public benefits that outweigh
any potential adverse effects. In particular, Applicant maintains that
the proposal would enhance competition and enable Applicant to offer
its customers a broader range of products. Applicant also maintain that
its proposal would not result in any adverse effects.
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 May 5,
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 Cleveland.
Board of Governors of the Federal Reserve System, April 11,
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-9363 Filed 4-14-95; 8:45 am]
BILLING CODE 6210-01-F
