Bank Holding Companies and Change in Bank Control — 2000-03-28 [00-7148]

The Board of Governors of the Federal Reserve System, in consultation with the Secretary of the Treasury, solicits comment on a proposal that would govern the regulatory capital treatment of certain investments in nonfinancial companies by bank holding companies. This proposal would amend the Board's consolidated capital guidelines for bank holding companies to apply a 50 percent capital charge to all investments made, directly or indirectly, by a bank holding company in nonfinancial companies under the merchant banking authority of the Bank Holding Company Act (BHC Act), in nonfinancial companies under the Board's Regulation K, under the Federal Deposit Insurance Act, through small business investment companies (whether controlled by the bank holding company or by a subsidiary depository institution), or under the BHC Act in less than 5 percent of the shares of a nonfinancial company.