Activities of Bank and Financial Holding Companies

To All Bank Holding Companies and Financial Holding Companies in the Second Federal Reserve District:

The following is a press statement by the Board of Governors of the Federal Reserve System:

The Federal Reserve Board has requested public comment on proposal that would amend Regulation Y (Bank Holding Companies and Change in Bank Control). The proposal would permit:

• all bank holding companies, as an activity that is closely related to banking, to conduct a greater amount of nonfinancial data processing in connection with processing financial data; and
• financial holding companies, as an activity that is complementary to financial activity, to invest in companies engaged in certain types of data storage, web hosting and data processing advisory activities, so long as the investment was related to the provision of financial products and services.

The proposal also requests comment on whether the Board should permit financial holding companies to invest in companies that:

• develop new technologies that might support the sale and availability of financial products and services;
• provide communications links for the delivery of financial products and services; and/or
• engage in the electronic sale and delivery of products and services that include, but are not limited to, financial products and services.

Comment is requested by February 16, 2001.

The proposal (pdf - 134kb) was published in the December 21^st issue of the Federal Register. Comments should be sent to the Board, as specified in the notice.

Contact:
Public Affairs
(212) 720-6130
general.info@ny.frb.org