(a) Authority. This part
is issued by the Board of Governors of the Federal Reserve System
under sections 5 and 14 of the Bank Holding Company Act of 1956, as
amended (12 U.S.C. 1844 and 1852); section 8 of the Federal Deposit
Insurance Act, as amended (12 U.S.C. 1818); the International Banking
Act of 1978, as amended (12 U.S.C. 3101 et seq.); and the recommendations
of the Financial Stability Oversight Council (76 Federal Register 6756) (February 8, 2011).
(b) Purpose. This subpart implements section 14 of the Bank Holding Company Act,
which generally prohibits a financial company from merging or consolidating
with, acquiring all or substantially all of the assets of, or otherwise
acquiring control of, another company if the resulting company’s consolidated
liabilities would exceed 10 percent of the aggregate consolidated
liabilities of all financial companies.
(c) Other authorities. Nothing in this part
limits the authority of the Board under any other provision of law
or regulation to prohibit or limit a financial company from merging
or consolidating with, acquiring all or substantially all of the assets
of, or otherwise acquiring control of, another company.
