(a) General. For purposes of section 238.51(b)(6)(i), the services and activities
permissible for bank holding companies pursuant to regulations that
the Board has promulgated pursuant to section 4(c) of the Bank Holding
Company Act are permissible for savings and loan holding companies,
or subsidiaries thereof that are neither savings associations nor
service corporation subsidiaries of subsidiary savings associations: Provided, That no savings and loan holding company shall commence
any activity described in this paragraph (a) without the prior approval
of this Board pursuant to paragraph (b) of this section, unless—
(1) The holding
company received a rating of satisfactory or above prior to January
1, 2008, or thereafter, either received a composite rating of “1”
or “2” or be considered satisfactory under the applicable rating system
in its most recent examination, and is not in a troubled condition
as defined in section 238.72, and the holding company does not propose
to commence the activity by an acquisition (in whole or in part) of
a going concern; or
(2) The activity
is permissible under authority other than section 10(c)(2)(F)(i) of
the HOLA without prior notice or approval. Where an activity is within
the scope of both section 238.53 and this section, the procedures
of section 238.53 shall govern.
(b) Procedures for applications. Applications
to commence any activity prescribed under paragraph (a) of this section
shall be filed with the appropriate Reserve Bank on the designated
form. The Board must act upon such application according to the procedures
of section 238.53(d), (e), and (f).
(c) Factors considered in acting on applications. In evaluating
an application filed under paragraph (b) of this section, the Board
shall consider whether the performance by the applicant of the activity
can reasonably be expected to produce benefits to the public (such as greater
convenience, increased competition, or gains in efficiency) that outweigh
possible adverse effects (such as undue concentration of resources,
decreased or unfair competition, conflicts of interest, or unsound
financial practices). This consideration includes an evaluation of
the financial and managerial resources of the applicant, including
its subsidiaries, and of any company to be acquired, and the effect
of the proposed transaction on those resources.
