Bank Holding Companies and Change in Bank Control — 1995-03-28 [95-7518]

The Board is proposing to amend its Regulation Y to eliminate the need for a bank holding company to file a request with the Board for a determination under section 2(g)(3) of the Bank Holding Company Act that it no longer controls shares or assets that it has sold to a third party with financing if: The purchaser is not an affiliate or principal shareholder of the divesting holding company, or a company controlled by the principal shareholder; and there are no officers, directors, trustees or beneficiaries of the acquiror in common with or subject to control by the divesting company. The Board believes that the elimination of the requirement for a determination of control for these types of divestitures will reduce the regulatory burden on bank holding companies without undermining the purposes of the Bank Holding Company Act.