[Response to Request for Opinion on National Consumer Cooperative Bank's Authority To Form and Invest in Subsidiaries]

In response to a congressional request, GAO examined: (1) the National Consumer Cooperative Bank's (NCB) authority to form and invest in a number of subsidiaries and affiliates, and its relationship with them; (2) whether the subsidiaries and affiliates' activities are authorized under the National Consumer Cooperative Bank Act; and (3) whether the statute should be changed to ensure the appropriate relationship between NCB and its entities. GAO concluded that: (1) NCB was authorized to form and invest in subsidiaries and affiliates; (2) the NCB relationship with its subsidiaries and affiliates was proper; (3) the subsidiaries and affiliates engaged in legal activities; and (4) there was no need for any statutory modifications.