Activities of Securities Subsidiaries of Bank Holding Companies

T-GGD-90-21: Published: Mar 19, 1990. Publicly Released: Mar 19, 1990.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the Federal Reserve System's authorization of 21 bank holding companies and 5 foreign banks to expand their securities activities by establishing non-bank subsidiaries. GAO noted that the Federal Reserve needed to consider: (1) a controlled, phased approach to expanding securities activities to ensure sufficient regulation and oversight; (2) whether transferring securities activities from banks to securities companies will reduce the banks' profitability, size, and diversity; (3) whether an alternative approach, using security companies as direct bank subsidiaries, would negatively affect the banks or competitively limit non-participating securities companies; (4) a cautious approach to relaxing regulatory firewalls designed to protect banks from financially risky transactions and conflicts of interest; and (5) the role of Federal Reserve firewalls in limiting U.S. banks' competitiveness in foreign markets and the relative flexibility that foreign banks have in coordinating banking activities.

Jul 25, 2016

Jul 5, 2016

May 6, 2016

Apr 21, 2016

Apr 18, 2016

Apr 12, 2016

Mar 28, 2016

Mar 8, 2016

Feb 16, 2016

Jan 27, 2016

Looking for more? Browse all our products here