RBCAA » Topics » Financial Activities

These excerpts taken from the RBCAA 10-K filed Mar 6, 2009.
Financial Activities – The activities permissible for bank holding companies and their affiliates were substantially expanded by the Gramm-Leach-Bliley Act (“GLBA”), effective March, 2000. The GLBA permits bank holding companies that qualify as, and elect to be Financial Holding Company’s (“FHCs”), to engage in a broad range of financial activities, including underwriting securities, dealing in and making a market in securities, insurance underwriting and agency activities without geographic or other limitation, as well as merchant banking. To maintain its status as a FHC, the Company and all of its affiliated depository institutions must be well-capitalized, well-managed, and have at least a “satisfactory” CRA rating. In addition, as a qualified thrift lender, the Company generally has broad authority to engage in various types of business activities, including non-financial activities. This authority could be restricted for savings banks that fail to meet the qualified thrift lender test. The Company does not currently qualify as a FHC based on its CRA rating as discussed at Footnote 24 “Regulatory Matters” of Part II Item 8 “Financial Statements and Supplementary Data.”

 

FHC regulators approve certain activities as financial in nature or incidental to financial activities, as well as define the procedures and requirements that allow a FHC to request the FRB’s approval to conduct a financial activity, or an activity that is complementary to a financial activity. The Company is required to obtain prior FRB approval in order to engage in the financial activities identified in the GLBA or FRB regulations. In addition, if any of its depository institution subsidiaries ceases to be well-capitalized or well-managed, and compliance is not achieved within 180 days, the Company may be forced to cease conducting business as a FHC by divesting either its non-banking financial activities or its bank activities. Moreover, the Hart-Scott-Rodino Act antitrust filing requirements may apply to certain non-bank acquisitions.

 

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Subject to certain exceptions, insured state banks are permitted to control or hold an interest in a financial subsidiary that engages in a broader range of activities (such as securities underwriting) than are permissible for national banks to engage in directly, subject to any restrictions imposed on a bank under the laws of the state under which it is organized. Conducting financial activities through a bank subsidiary can impact capital adequacy and regulatory restrictions may apply to affiliate transactions between the bank and its financial subsidiaries.

 

Financial
Activities
– The activities permissible for bank
holding companies and their affiliates were substantially expanded by the
Gramm-Leach-Bliley Act (“GLBA”), effective March, 2000. The GLBA permits bank
holding companies that qualify as, and elect to be Financial Holding Company’s
(“FHCs”), to engage in a broad range of financial activities, including
underwriting securities, dealing in and making a market in securities,
insurance underwriting and agency activities without geographic or other
limitation, as well as merchant banking. To maintain its status as a FHC, the
Company and all of its affiliated depository institutions must be
well-capitalized, well-managed, and have at least a “satisfactory” CRA rating.
In addition, as a qualified thrift lender, the Company generally has broad
authority to engage in various types of business activities, including
non-financial activities. This authority could be restricted for savings banks
that fail to meet the qualified thrift lender test. The Company does not
currently qualify as a FHC based on its CRA rating as discussed at Footnote 24 “Regulatory Matters” of Part II Item 8 “Financial Statements and Supplementary Data.”



 



FHC
regulators approve certain activities as financial in nature or incidental to
financial activities, as well as define the procedures and requirements that
allow a FHC to request the FRB’s approval to conduct a financial activity, or
an activity that is complementary to a financial activity. The Company is
required to obtain prior FRB approval in order to engage in the financial
activities identified in the GLBA or FRB regulations. In addition, if any of
its depository institution subsidiaries ceases to be well-capitalized or
well-managed, and compliance is not achieved within 180 days, the Company may
be forced to cease conducting business as a FHC by divesting either its
non-banking financial activities or its bank activities. Moreover, the
Hart-Scott-Rodino Act antitrust filing requirements may apply to certain
non-bank acquisitions.



 



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Table
of Contents



 



Subject
to certain exceptions, insured state banks are permitted to control or hold an
interest in a financial subsidiary that engages in a broader range of
activities (such as securities underwriting) than are permissible for national
banks to engage in directly, subject to any restrictions imposed on a bank
under the laws of the state under which it is organized. Conducting financial
activities through a bank subsidiary can impact capital adequacy and regulatory
restrictions may apply to affiliate transactions between the bank and its
financial subsidiaries.



 



These excerpts taken from the RBCAA 10-K filed Mar 14, 2008.
Financial Activities – The activities permissible for bank holding companies and their affiliates were substantially expanded by the Gramm-Leach-Bliley Act (“GLBA”), effective March, 2000. The GLBA permits bank holding companies that qualify as, and elect to be FHCs, to engage in a broad range of financial activities, including underwriting, dealing in and making a market in securities, insurance underwriting and agency activities without geographic or other limitation, as well as merchant banking. To maintain its status as a FHC, the Company and all of its affiliated depository institutions must be well-capitalized, well-managed, and have at least a “satisfactory” CRA rating.

 

FHC regulators approve certain activities as financial in nature or incidental to financial activities, as well as define the procedures and requirements that allow a FHC to request the FRB’s approval to conduct a financial activity, or an activity that is complementary to a financial activity. The Company is required to obtain prior FRB approval in order to engage in the financial activities identified in the GLBA or FRB regulations. In addition, if any of its depository institution subsidiaries ceases to be well-capitalized or well-managed, and compliance is not achieved within 180 days, the Company may be forced to cease conducting business as a FHC by divesting either its non-banking financial activities or its bank activities. Moreover, the Hart-Scott-Rodino Act antitrust filing requirements may apply to certain non-bank acquisitions.

 

Subject to certain exceptions, insured state banks are permitted to control or hold an interest in a financial subsidiary that engages in a broader range of activities (such as securities underwriting) than are permissible for national banks to engage in directly, subject to any restrictions imposed on a bank under the laws of the state under which it is organized. Conducting financial activities through a bank subsidiary can impact capital adequacy and regulatory restrictions may apply to affiliate transactions between the bank and its financial subsidiaries.

 

Financial
Activities
– The activities permissible for bank
holding companies and their affiliates were substantially expanded by the
Gramm-Leach-Bliley Act (“GLBA”), effective March, 2000. The GLBA permits bank
holding companies that qualify as, and elect to be FHCs, to engage in a broad
range of financial activities, including underwriting, dealing in and making a
market in securities, insurance underwriting and agency activities without
geographic or other limitation, as well as merchant banking. To maintain its
status as a FHC, the Company and all of its affiliated depository institutions
must be well-capitalized, well-managed, and have at least a “satisfactory” CRA
rating.



 



FHC
regulators approve certain activities as financial in nature or incidental to
financial activities, as well as define the procedures and requirements that
allow a FHC to request the FRB’s approval to conduct a financial activity, or
an activity that is complementary to a financial activity. The Company is
required to obtain prior FRB approval in order to engage in the financial
activities identified in the GLBA or FRB regulations. In addition, if any of
its depository institution subsidiaries ceases to be well-capitalized or
well-managed, and compliance is not achieved within 180 days, the Company may be
forced to cease conducting business as a FHC by divesting either its
non-banking financial activities or its bank activities. Moreover, the
Hart-Scott-Rodino Act antitrust filing requirements may apply to certain
non-bank acquisitions.



 



Subject
to certain exceptions, insured state banks are permitted to control or hold an
interest in a financial subsidiary that engages in a broader range of
activities (such as securities underwriting) than are permissible for national
banks to engage in directly, subject to any restrictions imposed on a bank
under the laws of the state under which it is organized. Conducting financial
activities through a bank subsidiary can impact capital adequacy and regulatory
restrictions may apply to affiliate transactions between the bank and its
financial subsidiaries.



 



This excerpt taken from the RBCAA 10-K filed Mar 15, 2007.
Financial Activities — The activities permissible for bank holding companies and their affiliates were substantially expanded by the Gramm-Leach-Bliley Act (“GLBA”), effective March 11, 2000. The GLBA permits bank holding companies that qualify as, and elect to be FHCs to engage in a broad range of financial activities, including underwriting, dealing in and making a market in securities, insurance underwriting and agency activities without geographic or other limitation, as well as merchant banking. To maintain its status as a FHC, the Company and all of its affiliated depository institutions must be well-capitalized, well-managed, and have at least a “satisfactory” CRA rating.

9




FHC regulators approve certain activities as financial in nature or incidental to financial activities, as well as define the procedures and requirements that allow a FHC to request the FRB’s approval to conduct a financial activity, or an activity that is complementary to a financial activity. The Company is required to obtain prior FRB approval in order to engage in the financial activities identified in the GLBA or FRB regulations. In addition, if any of its depository institution subsidiaries ceases to be well-capitalized or well-managed, and compliance is not achieved within 180 days, the Company may be forced, in effect, to cease conducting business as a FHC by divesting either its non-banking financial activities or its bank activities.  Moreover, the Hart-Scott-Rodino Act antitrust filing requirements may apply to certain non-bank acquisitions.

Subject to certain exceptions, insured state banks are permitted to control or hold an interest in a financial subsidiary that engages in a broader range of activities (such as securities underwriting) than are permissible for national banks to engage in directly, subject to any restrictions imposed on a bank under the laws of the state under which it is organized. Conducting financial activities through a bank subsidiary can impact capital adequacy and regulatory restrictions may apply to affiliate transactions between the bank and its financial subsidiaries.

This excerpt taken from the RBCAA 10-K filed Mar 16, 2006.
Financial Activities – The activities permissible to bank holding companies and their affiliates were substantially expanded by the Gramm-Leach-Bliley Act (“GLBA”), effective March 11, 2000. The GLBA permits bank holding companies to qualify as FHCs that may engage in a broad range of financial activities, including underwriting, dealing in and making a market in securities, insurance underwriting and agency activities without geographic or other limitation, as well as merchant banking.

 

FHC regulators approve certain activities as financial in nature or incidental to financial activities, as well as define the procedures and requirement that allow a FHC to request the FRB’s approval to conduct a financial activity, or an activity that is complementary to a financial activity. The Company is required to obtain prior FRB approval in order to engage in the financial activities identified in the GLBA or FRB regulations. Republic cannot commence or acquire any new financial activities since one of its depository institution subsidiaries received a less than satisfactory CRA rating. In addition, if any of its depository institution subsidiaries ceases to be well capitalized or well managed, and compliance is not achieved within 180 days, the Company may be forced, in effect, to cease conducting business as a FHC by divesting either its non banking financial activities or its bank activities.  Moreover, Hart-Scott-Rodino antitrust filing requirements may apply to certain non bank acquisitions.

 

Subject to certain exceptions, insured state banks are permitted to control or hold an interest in a financial subsidiary that engages in a broader range of activities (such as securities underwriting) than are permissible for national banks to engage in directly, subject to any restrictions imposed on a bank under the laws of the state under which it is organized. Conducting financial activities through a bank subsidiary can impact capital adequacy and regulatory restrictions may apply to affiliate transactions between the bank and its financial subsidiaries.

 

9



 

This excerpt taken from the RBCAA 10-K filed Mar 16, 2005.
Financial Activities – The activities permissible to bank holding companies and their affiliates were substantially expanded by the Gramm-Leach-Bliley Act (“GLBA”), effective March 11, 2000. The GLBA permits bank holding companies to qualify as financial holding companies that may engage in a broad range of financial activities, including underwriting, dealing in and making a market in securities; insurance underwriting and agency activities without geographic or other limitation; and merchant banking.  Republic has elected and maintains its status as a financial holding company and, as such, it may engage in financial activities (activities that are financial in nature, such as insurance and securities underwriting and dealing activities) and activities the FRB determines to be complementary to financial activities which do not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally.

 

The relevant federal bank regulators have adopted regulations identifying certain activities as financial in nature or incidental to financial activities, as well as the procedures that allow a financial holding company to request the FRB’s approval to conduct an activity that is complementary to a financial activity. A financial holding company generally is not required to obtain prior FRB approval in order to engage in the financial activities identified in the GLBA or the FRB regulations. However, a financial holding company cannot commence or acquire any new financial activities if one of its depository institution subsidiaries receives a less than satisfactory CRA rating. In addition, if any of its depository institution subsidiaries ceases being well capitalized or well managed, and compliance is not achieved within 180 days, a financial holding company may be forced, in effect, to cease conducting business as a financial holding company by divesting either its non banking financial activities or its bank activities.  Moreover, Hart-Scott-Rodino antitrust filing requirements may apply to certain non bank acquisitions.

 

Subject to certain exceptions, insured state banks are permitted to control or hold an interest in a financial subsidiary that engages in a broader range of activities (such as securities underwriting) than are permissible for national banks to engage in directly, subject to any restrictions imposed on a bank under the laws of the state under which it is organized. Conducting financial activities through a bank subsidiary can impact capital adequacy and restrictions will apply to affiliate transactions between the bank and its financial subsidiary.

 

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