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.
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- (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.
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- (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).
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- (D) Issuing or selling instruments
representing interests in pools of assets permissible for a bank to hold
directly.
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- (E) Underwriting, dealing in, or making
a market in securities."
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- (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).
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- (G) Engaging, in the United States, in
any activity that--
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-
- (i) a bank holding company may engage
in outside the United States; and
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-
-
- (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.
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- (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--
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-
- (i) the shares, assets, or ownership
interests are not acquired or held by a depository institution or
subsidiary of a depository institution;
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-
- (ii) such shares, assets, or ownership
interests are acquired and held by--
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-
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- (I) a securities affiliate or an
affiliate thereof; or
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-
-
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- (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;
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-
- (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.
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- (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;
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-
- (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;
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-
- (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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