A bill to amend the Bank Holding Act of 1956 to limit certain acquisitions by grandfathered bank holding companies and bank holding companies organized under the laws of foreign countries.

Summary

Amends the Bank Holding Company Act of 1956 to treat as a bank holding company (and thus subject to prohibitions with respect to equity interests in nonbanking organizations) any company that owns a grandfathered nonbank bank if: (1) the company's consolidated assets are at least 50 percent devoted to financial services and more than ten percent devoted to insured banks; and (2) the company acquires control, after March 28, 1988, of more than five percent of the stock of a company not primarily devoted to financial services activities. Prohibits any foreign bank holding company from acquiring, after March 30, 1988, any stock of a company that is in the process of acquiring at least 25 percent of any class of shares of a U.S. company if: (1) the U.S. company engages in activities other than those permissible for a U.S. bank holding company or a nonbanking subsidiary thereof; and (2) the acquisition of the U.S. company shares results from a tender offer by a person acquiring more than five percent of the class of securities in question. Requires foreign bank holding companies to divest themselves of any shares acquired on or before March 30, 1988, that fall within the described prohibition.

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1 official file

• Introduced in House

  summary · EN · 13 April 1988

  Open at official source

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