June 19, 1974
To: Economist Burak, Market Analysis & Research
From: Assistant Counsel Volckhausen
Re: Fuji Bank and Trust Company
The Fuji Bank, Ltd., proposes to charter the Fuji Bank and Trust Company. Your memo of June 19, 1974 asks whether section 143-b of the Banking Law would prohibit the parent bank from exercising control over the new institution.
The memo of Associate Attorney Dean of April 23, 1974 on the Industrial Bank of Japan Trust Company covers this situation. That memo held that separate Banking Board approval under sections 143-a or 143-b would not be necessary because each of these sections contemplates the acquisition of a bank which is a going concern and not a do novo charter. As Mr. Dean noted, the standards set forth in section 24 of the Banking Law concerning the chartering of new banks are sufficiently wide to allow consideration by the Banking Board of any possible anti- competitive factors involved in the formation of this bank.