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Adopted Regulations

Explanatory All Institutions Letter

September 30, 2004 


RE:    Repeal of Part 17 of the General Regulations of the Banking Board and Supervisory Procedure CB 114

On September 9, 2004 the Banking Board adopted as final the attached repeal of Part 17 of the General Regulations of the Banking Board and Supervisory Procedure CB 114.  The repeal became effective upon publication in the State Register on September 29, 2004. 

Banking Law Sections 130(4) and 143(1) were repealed in 2000 as part of the repeal of New York’s “mini Glass-Steagall” laws. 

Those sections prohibited officer, director or employee interlocks between banks, trust companies and bank holding companies, on the one hand, and organizations primarily engaged in the underwriting of securities.  These interlock prohibitions were later extended to stock-form savings banks and stock-form savings and loan associations.  Both Section 130(4) and Section 143(1) authorized the Banking Board to permit otherwise prohibited management interlocks by general or specific regulation.   

The Banking Board first exercised that authority in adopting Supervisory Procedure CB 114 in 1970.  CB 114 provides a procedure whereby an institution can apply to the Banking Board for an exception to the interlock prohibitions with respect to a specific individual situation.   

In 1987 the Banking Board adopted Part 17 of its General Regulations.  Part 17 describes certain circumstances in which the Banking Board has concluded that management interlocks between securities underwriting firms, on the one hand, and all of the types of entities covered by Sections 130(4) and 143(1), on the other, should generally be permitted to exist.   

The repeal of Part 17 and CB 114 is necessary, since the statutory authority on which they are based has been repealed. 

Very truly yours, 

Sam L. Abram
Secretary of the Banking Board

Department of Financial Services


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