Revisions Regarding Tie-in Prohibitions — 1994-03-16 [94-6050]

The Board is seeking public comment on proposed amendments to Regulation Y that would permit bank holding companies to offer discounts on brokerage commissions if the customer obtains a traditional bank product (a loan, discount, deposit, or trust service) from any affiliate. The Board recently approved an exemption permitting discounts on brokerage commissions for First Union Corporation, Charlotte, North Carolina (First Union), and the proposed rule would make it available to bank holding companies generally, thus avoiding the need for action on individual requests. The proposal also seeks comment on whether the Board should adopt an exception to the antitying prohibitions to permit a bank to discount a traditional bank product if the customer obtains another traditional bank product from an affiliate of the bank. This exemption extends to affiliates the statutory exemption that permits a bank to offer discounts on packages of traditional bank products.