Ask Reggi Your Question Now
Can you summarize 12 CFR Part 225?
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM > BANK HOLDING COMPANIES AND CHANGE IN BANK CONTROL (REGULATION Y)
Short Summary
The provided legal document content covers various aspects of bank holding companies and change in bank control. It governs the acquisition of control of banks by companies and individuals, defines and regulates the nonbanking activities of bank holding companies and foreign banking organizations, and sets forth procedures for securing approval for these transactions and activities. The regulation applies to bank holding companies, foreign banking organizations, individuals or companies acquiring voting securities of a bank holding company or state member bank, companies that control nonbank banks, and firms subject to section 13 of the Bank Holding Company Act. The document outlines various transactions that do not require the approval of the Board of Governors of the Federal Reserve System, such as acquisitions of securities in a fiduciary capacity, acquisitions involving bank mergers and internal corporate reorganizations, and acquisitions of a foreign banking organization. It also governs the nonbanking activities and acquisitions by bank holding companies, with exemptions for certain types of bank holding companies. The document provides procedures and requirements for control and divestiture proceedings, including the criteria for determining control and the conditions for a first company to be held to have had control over a second company. Additionally, it governs transactions requiring prior notice for the acquisition of control of a state member bank or bank holding company, outlining the criteria for determining control and the exemptions for certain types of transactions. The document also covers limitations on overdrafts for nonbank banks and industrial banks, appraisal standards for federally related transactions, the addition or change of directors and senior executive officers in regulated institutions, the election and consequences of becoming a financial holding company, merchant banking investment activities, proprietary trading and relationships with hedge funds and private equity funds, the establishment of section 20 subsidiaries, and the minimum requirements for Appraisal Management Companies (AMCs). The penalties for non-compliance or violation of the provisions are not specified in these documents.
Whom does it apply to?
Bank holding companies, foreign banking organizations, individuals or companies acquiring voting securities of a bank holding company or state member bank, companies that control nonbank banks, and firms subject to section 13 of the Bank Holding Company Act
What does it govern?
Various aspects related to bank holding companies and change in bank control
What are exemptions?
Exempt bank holding companies include family-owned companies, labor, agricultural, and horticultural organizations, companies granted hardship exemption, and companies granted exemption on other grounds
What are the Penalties?
No penalties are mentioned in this document
Jurisdiction
U.S. Federal Government