A company that owns a bank is defined under federal banking law as a Bank Holding Company (BHC). In 1999, Congress amended the law governing BHCs to allow them to engage in a much broader range of activities through nonbank subsidiaries if they elected, with Fed approval, to become a Financial Holding Company (FHC). The current financial crisis is causing many large financial firms to pursue or at least consider becoming FHCs.
Table of Contents
What is a Financial Holding Company?
Why the sudden interest among large financial organizations in financial holding company status?
The process of becoming a FHC
What it means to be a FHC for business activities, structure, and strategy
Regulatory & supervisory considerations: The control environment