Regulatory Alerts1994-05-03
Investment in a Bank or Bank Holding Company
Acting Superintendent of Banks Kenneth R. McCarthy issued this memorandum to authorize Alabama state-chartered banks to purchase stock in banks or holding companies providing exclusive services for other depository institutions. This new authority aligns state bank powers with those of national banks under the National Banking Act, subjecting such investments to specific capital and voting security limits. The regulation permits these investments while maintaining the existing prohibition on owning capital stock in other banks outside the usual course of business.
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