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Can you summarize 12 CFR 225.4?
General Provisions > Corporate practices.
Short Summary
This legal document, part of the Code of Federal Regulations, governs the corporate practices of bank holding companies and their subsidiary banks. It establishes that a bank holding company must serve as a source of financial and managerial strength to its subsidiary banks and conduct its operations in a safe and sound manner. The document also outlines the requirements for bank holding companies when purchasing or redeeming their own securities, including the need for prior written notice to the Board of Governors of the Federal Reserve System. It further addresses factors considered by the Board when acting on such notices and the disapproval and hearing process. The document also covers other provisions such as deposit insurance, acting as a transfer agent or clearing agent, reporting requirements for credit secured by bank holding company stock, filing suspicious activity reports, requirements for financial holding companies engaged in securities activities, and the protection of customer and consumer information. The document does not apply to bank holding companies subject to 225.8 of Regulation Y.
Whom does it apply to?
Bank holding companies and their subsidiary banks
What does it govern?
Corporate practices
What are exemptions?
Bank holding companies subject to 225.8 of Regulation Y (12 CFR 225.8)
What are the Penalties?
Not specified
Jurisdiction
U.S. Federal Government