[Federal Register Volume 60, Number 73 (Monday, April 17, 1995)]
[Notices]
[Page 19260]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9363]



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FEDERAL RESERVE SYSTEM

National City Corporation; Application to engage in certain 
Nonbanking Activities

    National City Corporation, Cleveland, Ohio (Applicant), has applied 
pursuant to section 4(c)(8) of the Bank Holding Company Act (12 U.S.C. 
1843(c)(8)) (BHC Act) and Sec.  225.23(a)(3) of the Board's Regulation 
Y (12 CFR 225.23(a)(3)), to acquire Raffensperger, Hughes & Co., 
Incorporated, Indianapolis, Indiana, and thereby engage through NatCity 
Investments, Inc., Cleveland, Ohio (Company), in underwriting and 
dealing in debt and equity securities of all types, other than shares 
of open-end investment companies. These activities will be conducted 
throughout the United States.
    Applicant maintains that the Board previously has determined that 
the proposed activities are closely related to banking. Applicant 
states that Company would conduct the proposed activities within the 
limitations and prudential guidelines established by the Board in 
previous orders. See Canadian Imperial Bank of Commerce, 76 Federal 
Reserve Bulletin 158 (1990); J.P. Morgan & Co. Incorporated, et al., 75 
Federal Reserve Bulletin 192 (1989), aff'd sub nom. Securities 
Industries Ass'n v. Board of Governors of the Federal Reserve System, 
900 F.2d 360 (D.C. Cir. 1990); and Citicorp, et al., 73 Federal Reserve 
Bulletin 473 (1987), aff'd sub nom. Securities Industry Ass'n v. Board 
of Governors of the Federal Reserve System, 839 F.2d 47 (2d Cir.), 
cert. denied, 486 U.S. 1059 (1988). In connection with its application, 
Applicant has requested permission to retain the director and officer 
interlocks between Company and its affiliated banks previously 
permitted by the Board. See National City Corporation, 80 Federal 
Reserve Bulletin 346 (1994). Applicant also has requested that the 
securities brokerage subsidiary of National City Bank, Cleveland, Ohio, 
be permitted to act as introducing broker for customers in securities 
transactions that would be forwarded to Company for execution and 
clearance, and that Company be permitted to calculate compliance with 
the revenue limitation on an annualized basis during the first year 
following consummation of the acquisition since Applicant is acquiring 
a going concern. See First of America Corporation, 80 Federal Reserve 
Bulletin 1120 (1994); Dauphin Deposit Corporation, 77 Federal Reserve 
Bulletin 672 (1991).
    In order to approve the proposal, the Board must determine that the 
proposed activities to be conducted by Company ``can reasonably be 
expected to produce benefits to the public, such as greater 
convenience, increased competition, or gains in efficiency, that 
outweigh possible adverse effects, such as undue concentration of 
resources, decreased or unfair competition, conflicts of interests, or 
unsound banking practices.'' 12 U.S.C. Sec.  1843(c)(8). Applicant 
believes that the proposal would produce public benefits that outweigh 
any potential adverse effects. In particular, Applicant maintains that 
the proposal would enhance competition and enable Applicant to offer 
its customers a broader range of products. Applicant also maintain that 
its proposal would not result in any adverse effects.
    In publishing the proposal for comment, the Board does not take a 
position on issues raised by the proposal. Notice of the proposal is 
published solely to seek the views of interested persons on the issues 
presented by the application and does not represent a determination by 
the Board that the proposal meets, or is likely to meet, the standards 
of the BHC Act.
    Any comments or requests for hearing should be submitted in writing 
and received by William W. Wiles, Secretary, Board of Governors of the 
Federal Reserve System, Washington, D.C. 20551, not later than May 5, 
1995. Any request for a hearing on this application must, as required 
by Sec.  262.3(e) of the Board's Rules of Procedure (12 CFR 262.3(e)), 
be accompanied by a statement of the reasons why a written presentation 
would not suffice in lieu of a hearing, identifying specifically any 
questions of fact that are in dispute, summarizing the evidence that 
would be presented at a hearing, and indicating how the party 
commenting would be aggrieved by approval of the proposal.
    This application may be inspected at the offices of the Board of 
Governors or the Federal Reserve Bank of Cleveland.
    Board of Governors of the Federal Reserve System, April 11, 
1995.
Jennifer J. Johnson,
Deputy Secretary of the Board.
[FR Doc. 95-9363 Filed 4-14-95; 8:45 am]
BILLING CODE 6210-01-F