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ACTIVITIES THAT
ARE FINANCIAL IN NATURE
For purposes of this subsection,
the following activities shall be considered to be financial in
nature:
- (A) Lending, exchanging,
transferring, investing for others, or safeguarding money or
securities.
-
- (B) Insuring, guaranteeing, or
indemnifying against loss, harm, damage, illness, disability, or
death, or providing and issuing annuities, and acting as
principal, agent, or broker for purposes of the foregoing, in any
State.
-
- (C) Providing financial,
investment, or economic advisory services, including advising an
investment company (as defined in section 3 of the Investment
Company Act of 1940).
-
- (D) Issuing or selling
instruments representing interests in pools of assets permissible
for a bank to hold directly.
-
- (E) Underwriting, dealing in, or
making a market in securities."
-
- (F) Engaging in any activity
that the Board has determined, by order or regulation that is in
effect on the date of the enactment of the Gramm-Leach-Bliley Act,
to be so closely related to banking or managing or controlling
banks as to be a proper incident thereto (subject to the same
terms and conditions contained in such order or regulation, unless
modified by the Board).
-
- (G) Engaging, in the United
States, in any activity that--
-
-
- (i) a bank holding company may
engage in outside the United States; and
-
-
-
- (ii) the Board has determined,
under regulations prescribed or interpretation issued pursuant
to subsection (c)(13) (as in effect on the day before the date
of the enactment of the Gramm-Leach-Bliley Act) to be usual in
connection with the transaction of banking or other financial
operations abroad.
-
- (H) Directly or indirectly
acquiring or controlling, whether as principal, on behalf of 1 or
more entities (including entities, other than a depository
institution or subsidiary of a depository institution, that the
bank holding company controls), or otherwise, shares, assets, or
ownership interests (including debt or equity securities,
partnership interests, trust certificates, or other instruments
representing ownership) of a company or other entity, whether or
not constituting control of such company or entity, engaged in any
activity not authorized pursuant to this section if--
-
-
- (i) the shares, assets, or
ownership interests are not acquired or held by a depository
institution or subsidiary of a depository institution;
-
-
- (ii) such shares, assets, or
ownership interests are acquired and held by--
-
-
-
- (I) a securities affiliate
or an affiliate thereof; or
-
-
-
-
- (II) an affiliate of an
insurance company described in subparagraph (I)(ii) that
provides investment advice to an insurance company and is
registered pursuant to the Investment Advisors Act of 1940, or
an affiliate of such investment advisor; as part of a bona
fide underwriting or merchant or investment banking activity,
including investment activities engaged in for the purpose of
appreciation and ultimate resale or disposition of the
investment;
-
-
- (iii) such shares, assets, or
ownership interests are held for a period of time to enable the
sale or disposition thereof on a reasonable basis consistent
with the financial viability of the activities described in
clause (ii); and
-
-
- (iv) during the period such
shares, assets or ownership interests are held, the bank holding
company does not routinely manage or operate such company or
entity except as may be necessary or required to obtain a
reasonable return on investment upon resale or disposition.
-
- (I) Directly or indirectly
acquiring or controlling, whether as principal, on behalf of 1 or
more entities (including entities, other than a depository
institution or subsidiary of a depository institution, that the
bank holding company controls) or otherwise, shares, assets, or
ownership interests, trust certificates or other instruments
representing ownership) of a company or other entity, whether or
not constituting control of such company or entity, engaged in any
activity not authorized pursuant to this section if--
-
-
- (i) the shares, assets, or
ownership interests are not acquired or held by a depository
institution or a subsidiary of a depository institution;
-
-
- (ii) such shares, assets, or
ownership interests are acquired and held by an insurance
company that is predominantly engaged in underwriting life,
accident and health, or property and casualty insurance (other
that credit-related insurance) or providing and issuing
annuities;
-
-
- (iii) such shares, assets, or
ownership interests represent an investment made in the ordinary
course of business of such insurance company in accordance with
relevant State law governing such investment; and
-
-
- (iv) during the period such
shares, assets, or ownership interests are held, the bank
holding company does not routinely manage or operate such
company except as may be necessary or required to obtain a
reasonable return on investment.
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