Changes in Interim Rule for Electing to be Treated as Financial Holding Companies Under the Gramm-Leach-Bliley Act
Comments Invited by April 17
April 4, 2000
Circular No. 11239

To the Chief Executive Officers of all Bank Holding Companies and of all
Branches and Agencies of Foreign Banks in the Second Federal Reserve District:

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

The Federal Reserve Board has announced amendments to its interim rule regarding procedures for bank holding companies and foreign banks to elect to be treated as financial holding companies, effective March 15, 2000. [The original rule is contained in Circular No. 11227.]

The Board has changed the procedures for processing elections filed by foreign banks to allow the use of the 31-day notice procedure applicable to U.S. bank holding companies. The Board based its decision on its assessment of the comparability of the standards used in the first elections filed by foreign banks. Given this experience, the Board believes it can effectively perform its statutory responsibilities using a notice procedure. The Board also adopted several other amendments to the interim rule.

Comments on the amendments may be sent to the Board until April 17, 2000.

The changes in the rule (pdf - 133kb), as published in the Federal Register of March 21 and the correction of the preamble (pdf - 117kb), as published in the Federal Register of March 28 are both available as PDF files. Comments on the rule should be sent to the Board by April 17, as specified in the notice.