Activities of Securities Subsidiaries of Bank Holding Companies

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

Additional Materials:


Office of Public Affairs
(202) 512-4800

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.

Sep 5, 2018

Jul 19, 2018

Jul 18, 2018

Jun 26, 2018

Mar 22, 2018

Mar 16, 2018

Mar 15, 2018

Feb 27, 2018

Looking for more? Browse all our products here