[Federal Register Volume 61, Number 75 (Wednesday, April 17, 1996)]
[Notices]
[Page 16792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-9457]
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FEDERAL RESERVE SYSTEM
Deutsche Bank, AG; Notice of Application to Engage in Certain
Nonbanking Activities
Deutsche Bank AG, Frankfurt, Germany (Deutsche Bank), has provided
notice, 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) of the Board's
Regulation Y (12 CFR 225.23(a)), to acquire indirectly through debis
Financial Services, Inc., Norwalk, Connecticut, all the voting shares
of Remarketing Services of America, Inc., Amherst, New York (Company),
and thereby engage in providing remarketing and repossession services
for automobiles and recreational vehicles that have been financed or
leased by third parties. The proposed remarketing services would be
provided either at the expiration of the lease or upon repossession of
the vehicle and would include arranging for the transportation,
inspection, and resale of the vehicle; arranging for the transfer of
title for the vehicle from the lender or lessor to the seller or
purchaser of the vehicle; engaging in telemarketing activities designed
to locate potential sellers, buyers or lessees of vehicles reaching the
end of their lease term; arranging for the repair of previously leased
or financed vehicles, including the filing of insurance claims; and
market value and residual value forecasting. Such activities would be
conducted throughout the world.
Section 4(c)(8) of the BHC Act provides that a bank holding company
may, with Board approval, engage in any activity that 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. This statutory
test requires that two separate tests be met for an activity to be
permissible for a bank holding company. First, the Board must determine
that the activity is, as a general matter, closely related to banking.
Second, the Board must find in a particular case that the performance
of the activity by the applicant bank holding company may reasonably be
expected to produce public benefits that outweigh possible adverse
effects.
A particular activity may be found to meet the ``closely related to
banking'' test if it is demonstrated that banks generally have provided
the proposed activity, that banks generally provide services that are
operationally or functionally similar to the proposed activity so as to
equip them particularly well to provide the proposed activity, or that
banks generally provide services that are so integrally related to the
proposed activity as to require their provision in a specialized form.
National Courier Ass'n v. Board of Governors, 516 F.2d 1229, 1237 (D.C.
Cir. 1975). 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 FR 794, 806 (1984). Deutsche Bank
contends that the proposed activities are within the scope of
collection agency activities previously determined by the Board to be
closely related to banking.
In order to approve the proposal, the Board also must determine
that the proposed activities to be conducted by Deutsche Bank ``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). Deutsche Bank
believes that the proposal would produce public benefits that outweigh
any potential adverse effects. In particular, Deutsche Bank maintains
that the proposal would not materially reduce competition in the
relevant markets and would enable Company to expand its operations.
Deutsche Bank also maintains that the 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 2, 1996. 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.
Board of Governors of the Federal Reserve System, April 12,
1996.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 96-9457 Filed 4-16-96; 8:45 am]
BILLING CODE 6210-01-F
