FRB Grants Requests For Exemptions Under Section 23A Of The Federal Reserve Act And Under FRB’s Anti- Tying Rules
The FRB published four interpretive letters in which it granted requests for exemptions to three bank holding companies from the limitations on transactions with affiliates under Section 23A of the Federal Reserve Act (" Section 23A") and to one bank holding company under the anti- tying provisions of the Bank Holding Company Act (the "BHC Act").
Section 23A.
Section 23A historically has limited the ability of a bank holding company to contribute to its bank subsidiaries stock or assets of an entity that has liabilities at the time of the transfer. Each of the three requests under Section 23A, however, was deemed permissible by the FRB because it involved a corporate reorganization and was determined by the FRB "to be structured to ensure the quality of the transferred assets." The FRB agreed to exempt from Section 23A Chase Manhattan Corp. ’s sale of investment banking
