Seal of Board of Governors of the Federal Reserve System 

BOAR D OF GOVERNOR S 

O F TH E 

FEDERAL RESERVE SYSTEM 

WASHINGTON , C. HD 55 ) 

SCOT T G. ALVARE Z 

GENERAL COUNSEL 

April 11,2013 

Satish M. Kini, Esq. 

Debevoise & Plimpton LLP 

555 13th Street N.W. 

Washington, D.C. 20004 

Dear Mr. Kini: 

This is in response to your request for a determination that The 

Vanguard Group, Inc., Malvern, Pennsylvania, [Footnote 1. The Vanguard 

Group is not, and is not affiliated with, a bank holding company or 

a savings and loan holding company. End footnote.], and its subsidiaries and affiliates 

(collectively, "Vanguard"), may acquire up to 15 percent of any class of voting 

securities of a bank holding company, bank, savings and loan holding company, or 

savings association [Footnote 2. The terms bank holding company and bank 

have the same meanings as set forth 

in the BHC Act and the Board's Regulation Y. The terms savings and loan 

holding company and savings association have the same meaning as 

set forth in the 

HOLA and the Board's Regulation LL. End footnote.](each a "Regulated Company") 

without being deemed to have 

acquired control of that institution under the Bank Holding Company Act ("BHC 

Act"), the Home Owners' Loan Act ("HOLA"), 

or the Change in Bank Control Act 

("CIBC Act") when the acquisition complies with certain conditions described in 

this letter and related correspondence. 

Vanguard proposes to hold Regulated Company shares through a 

variety of investment companies registered under the Investment Company Act of 

1940, other pooled investment vehicles, and institutional accounts that are 

sponsored, managed, or advised by Vanguard (collectively, the "VanguardAdvised Entities" and together with Vanguard, the "Vanguard Parties"). 

For purposes of the BHC Act and HOLA, a company 

companies. End footnote.] controls an 

applicable Regulated Company if the first company (i) directly or indirectly or 

acting in concert through one or more other persons owns, controls, or has power 
to vote 25 percent or more of any class of voting securities of the applicable 

Regulated Company; (ii) controls in any manner the election of a majority of the 

directors of the applicable Regulated Company; or (iii) directly or indirectly 

exercises a controlling influence over the management or policies of the applicable 

Regulated Company.[Footnote 4. 12 U.S.C. §§1841 (a)(2), 1467a(a)(2); 

12 CFR 225.2(e), 238.2(e). Additionally,Vanguard will be deemed to control a 

company under HOLA if Vanguard owns 

more than 25 percent of the capital of the company. 12 U.S.C. § 1467a(a)(2)(B); 

12CFR 238.2(e)(2). End footnote.] The Board's Regulation Y 

and Regulation LL also set forth 

several rebuttable presumptions of control. 

[Footnote 5. 12 C.F.R. §§ 225.31(d), 238.21(d). End footnote.] 

Under the proposal, the Vanguard Parties would not own, control, or 

hold with power to vote 25 percent or more of a class of voting securities of, or 

control the election of a majority of the directors of, any Regulated Company. In 

addition, the Vanguard Parties would not trigger any of the BHC Act or HOLA 

rebuttable presumptions of control under Regulation Y or Regulation LL, 

respectively, with respect to any applicable Regulated Company. Vanguard would 

only be deemed to control a Regulated Company under the BHC Act or HOLA, as 

applicable, if the Board were to find that Vanguard exercises a controlling 

influence over the management or policies of a Regulated Company. 

For purposes of the CIBC Act, the Vanguard Parties are presumed by 

Regulation Y or Regulation LL to control a bank holding company, savings and 

loan holding company, or state member bank if, individually or collectively, 

"immediately after the transaction ... [they] will own, control, or hold with power 

to vote 10 percent or more of any class of voting securities of the institution" and 

either the institution has registered securities or no other person owns or controls a 

greater percentage of the same class of voting securities of the institution. 

[Footnote 6. 12 C.F.R. § 225.41(c). End footnote.] 

Vanguard proposes, from time to time, the Vanguard Parties would acquire in 

excess of 10 percent of a class of voting securities of a bank holding company, 

savings and loan holding company, or state member bank. 

Vanguard proposes several conditions and commitments to ensure that 

the Vanguard Parties would not exercise a controlling influence over a Regulated 

Company for purposes of the BHC Act and HOLA and to rebut the regulatory 

presumption of control for purposes of the CIBC Act. In particular, the Vanguard 

Parties collectively would not own or control more than 15 percent of any class of 

voting securities of a Regulated Company, and none of Vanguard or any 

Vanguard-Advised Entity would individually own or control more than 10 percent 

of any class of voting securities of a Regulated Company. In addition, Vanguard 
has committed to use its best efforts to vote shares of a Regulated Company owned 

or controlled by the Vanguard Parties in excess of 10 percent ("excess shares") in 

the same proportion as all other shares of the Regulated Company not owned by 

the Vanguard Parties are voted. In the event that Vanguard's best efforts are 

unsuccessful, Vanguard would not vote any excess shares. 

Moreover, Vanguard has made a number of commitments designed to 

mitigate the ability of the Vanguard Parties to control a Regulated Company. 

Among these commitments, Vanguard has committed that, whenever the Vanguard 

Parties own or control, in the aggregate, 10 percent or more of any class of voting 

securities of a Regulated Company, the Vanguard Parties will not, individually or 

collectively: 

1) take any action to control the Regulated Company within the 

meaning of the BHC Act or HOLA, as applicable; 

2) have any director, officer, or employee interlocks with the 

Regulated Company; 

3) except in the context of a tender offer or in certain other specified 

transactions, dispose of voting shares of the Regulated Company (i) to 

any person seeking control over the institution or (ii) in block 

transactions exceeding 5 percent of any class of voting shares of the 

institution; or 

4) threaten to dispose of voting shares in any manner as a condition of 

specific action or non-action by the Regulated Company. 

[Footnote 7. For a complete list of the commitments that 

the Appendix. End footnote.] 

In addition to considering the commitments made by Vanguard, Board 

staff has considered the nature of Vanguard and its proposed investments. 

Vanguard operates and provides investment advice to the Vanguard-Advised 

Entities. The proposed acquisitions in Regulated Companies would not be 

proprietary investments by Vanguard. Rather, they would be investments made by 

Vanguard-Advised Entities and on behalf of the beneficial owners of the 

Vanguard-Advised Entities. The Vanguard-Advised Entities are not operating 

companies, and Vanguard does not lend to the Vanguard-Advised Entities or to 

their portfolio companies. Moreover, Vanguard is not in the business of operating 

or controlling Regulated Companies, or other companies. The proposed 

acquisitions will be made for investment purposes with the expectation of resale 
and not for the purpose of exercising a controlling influence over the management 

or policies of any Regulated Company. 

[Footnote 8. The Vanguard Parties do not employ business strategies 

that contemplate the 

exercise of a controlling influence over the Regulated Companies. End footnote.] 

In view of the commitments made by Vanguard and the facts 

described in this letter, Board staff would not recommend that the Board find that 

acquisitions made within the parameters set forth in this letter would cause 

Vanguard or any of the Vanguard-Advised Entities: (i) to control a bank holding 

company or bank for purposes of the BHC Act; (ii) to control a bank holding 

company, savings and loan holding company, or state member bank for purposes 

of the CIBC Act; or (iii) to control a savings and loan holding company or savings 

association for purposes of the HOLA. 

The preceding opinions are based expressly on the facts and 

circumstances of this case as they have been described to Board staff, and any 

change in these facts or circumstances may result in a different opinion. In 

addition, this letter expresses no opinion as to whether a CIBC Act notice would be 

required for transactions involving direct investments in national banks, state nonmember banks, or savings associations. If you have any questions about this 

matter, please contact Will Giles (202-452-3351) or Jay Schwarz (202-452-2970) 

of the Board's Legal Division. 

(Signed by) initials Scott Y. 

cc: Federal Reserve Bank of Philadelphia 
-5-

APPENDIX 

Commitments of Vanguard to the Board 

Aggregate investments by Vanguard and the Vanguard-Advised 

Entities in 10 percent or more of any class of voting securities of a bank holding 

company, bank, savings and loan holding company, and savings association (each, 

a "Bank") will be conducted in accordance with the commitments and restrictions 

listed below. 

1. Vanguard and the Vanguard-Advised Entities in the aggregate: 

a. will not acquire more than 15 percent of any class or series of voting 

securities of any Bank without receiving the Board's prior 

nonobjection or approval under the Change in Bank Control Act, the 

Bank Holding Company Act, or the Home Owners' Loan Act, as 

applicable; and 

b. will use best efforts to provide that shares in excess of 10 percent of 

any class or series of voting securities of a Bank ("excess shares") will 

be voted in proportion to the vote taken on all shares that are not 

excess shares or, in the event that such efforts to provide for mirror 

voting are not successful, will not vote any excess shares. 

2. Neither Vanguard nor any Vanguard-Advised Entities will, directly or 

indirectly, individually or in the aggregate: 

a. take any action to cause a Bank or any of its subsidiaries to become a 

subsidiary of Vanguard or any Vanguard-Advised Entity for purposes 

of the BHC Act; 

b. unless agreed to by the Federal Reserve Board or its staff, and 

permitted by applicable law, seek or accept representation on the 

board of directors of any Bank or its subsidiaries; 

c. have or seek to have any representative of Vanguard or any 

Vanguard-Advised Entity serve as an officer, agent or employee of 

any Bank or its subsidiaries; 

d. propose a director or a slate of directors in opposition to any nominee 

or slate of nominees proposed by the management or board of 

directors of any Bank; 
e. exercise or attempt to exercise a controlling influence over the 

management or policies of any Bank or any of its subsidiaries; 

f. attempt to influence the dividend policies; loan, credit, or investment 

decisions or policies; pricing of services; personnel decisions; 

operations activities (including the location of any offices or branches 

or their hours of operation, etc.); or any similar activities or decisions 

of any Bank or any of its subsidiaries; 

g. enter into any agreement with a Bank or any of its subsidiaries that 

substantially limits the discretion of the Bank's management over 

major policies and decisions, including, but not limited to, policies or 

decisions about employing and compensating executive officers; 

engaging in new business lines; raising additional debt or equity 

capital; merging or consolidating with another firm; or acquiring, 

selling, leasing, transferring, or disposing of material assets, 

subsidiaries, or other entities; 

h. solicit or participate in soliciting proxies with respect to any matter 

presented to the shareholders of a Bank or any of its subsidiaries; or 

i. dispose or threaten to dispose (explicitly or implicitly) of equity 

interests of a Bank or any of its subsidiaries in any manner as a 

condition or inducement of specific action or non-action by Bank or 

any of its subsidiaries. 

3. Neither Vanguard nor any Vanguard-Ad vised Entity will dispose of voting 

securities of a Bank: 

a. to any person if Vanguard or the Vanguard-Advised Entity knows that 

such person seeks to change the control of the Bank in any manner; or 

b. to any person whom Vanguard or the Vanguard-Advised Entity 

knows (i) has made a filing with the U.S. Securities and Exchange 

Commission or other federal agency with respect to the ownership of 

more than 5 percent of the Bank's voting securities, or (ii) would be 

required to do so as a result of the purchase from Vanguard or a 

Vanguard-Advised Entity; or 
c. in an amount of more than 5 percent of the Bank's voting securities in 

any single transaction;[Footnote 9. A single transaction includes a 

provided that notwithstanding paragraphs (a) through (c) above, Vanguard 

and the Vanguard-Advised Entities may dispose of their stock in a Bank in 

the following circumstances: 

(i) in a cross trade between two Vanguard-Advised Entities in 

compliance with the rules governing such cross trades under the 

Investment Company Act of 1940, as amended (the "1940 Act"); 

(ii) in a sale by Vanguard or a Vanguard-Advised Entities to the Bank or 

one of its subsidiaries; 

(iii) in a tender or exchange offer for voting stock of the Bank; or 

(iv) in a widespread public distribution effected on a stock exchange or 

otherwise (which may include a sale to one or more broker-dealers 

acting as market makers or otherwise intending to resell the shares 

sold to it or them in accordance with its or their normal business 

practices). 

4. Neither Vanguard nor any Vanguard-Advised Entity will individually own, 

control, or hold with power to vote more than 10 percent of any class of voting 

securities of a Bank.