William A. Prado Torres FINA4015 9 de septiembre de 2019 For each of the actions described, explain which government agency or agencies a financial manager must deal with and what laws are involved. a. Chartering a new bank a. To charter a new bank there has to be the intervention of the Comptroller of the Currency who issues the chartering of new national banks. The State Boards might also be interested in the charter of new depository institutions. The Federal Reserve System will deal with the new institution once it becomes chartered because they monitor this kind of banks. The National Bank Act (1863-64) provides the mandamus that brings chartering to banks. b. Establishing new bank branch offices. a. Establishing a new bank branch requires the approval of the Federal Reserve System, the Comptroller of the Currency (if it’s a national bank). If the bank is insured by the Federal Deposit Insurance Corporation, that company has to approve the application. The Glass-Steagall (1933) and the Riegle-Neal interstate Banking and Branching Efficiency Act (1994) are the resolutions related to establishing bank branch offices. c. Forming Bank Holding Companies or Financial Holding Companies. a. To either create a Bank Holding Company or a Financial Holding Company, there will be the intervention of Federal Reserve System. They act as supervisor of the companies allowed to combine multiple financial services. The Department of Justice may be interested when trying to create or acquire a Bank or Financial Holding Company. That agency should look up for a balance in market competition. The Bank Holding Company Act of 1956, Riegle-Neal interstate Banking and Branching Efficiency Act (1994) and the Gramm-Leach-Bliley Act (1999) were legislated to cover that social need. d. Complete a bank merger. a. A bank merger can be completed by the approval of the Federal Reserve System (for members). Another agency that regulates the merging of institutions is the Federal Deposit Insurance Company (is at least one of the merging banks is insured). The Department of Justice needs to evaluate the competition and determine what would be the effect on the market resulting from the new to be agency. The laws that regulate mergers are Bank Merger Act (1960) and the Riegle-Neal interstate Banking and Branching Efficiency Act (1994). e. Making holding company acquisitions of nonbank business. a. For a holding company to be acquired of nonbank businesses there will be actions from the Department of Justice, as well as the Federal Reserve System. Nonbank businesses are sometimes regulated by the dual system. The Depository Institutions Deregulation and Monetary Control Act (1980), the Garn-St Germain Depository Institutions Act (1982) and the Gramm-Leach-Bliley Act (1999) dictate the requirements related to such corporative actions.