[Federal Register Volume 59, Number 37 (Thursday, February 24, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4185]
[[Page Unknown]]
[Federal Register: February 24, 1994]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Public Comment Regarding Operating Subsidiary Notices
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Request for public comment.
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SUMMARY: The Office of the Comptroller of the Currency (OCC) requests
public comment concerning two notices filed by national banks of their
proposed establishment of operating subsidiaries that will engage in
mutual fund activities.
DATES: Comments should be submitted on or before March 28, 1994.
ADDRESSES: Written comments regarding the Notices should cite the OCC
control number and should be submitted to Karen Carter, Disclosure
Unit, Communications Division, Office of the Comptroller of the
Currency, 250 E Street, SW., Washington DC 20219. Telephone number
(202) 874-4700. Fax number (202) 874-5263.
FOR FURTHER INFORMATION CONTACT: Ellen Broadman, Director, Securities,
Investments and Fiduciary Practices Division, Office of the Chief
Counsel (202) 874-5210.
SUPPLEMENTARY INFORMATION:
First Union National Bank of North Carolina; Notice of Intent to
Establish Three Operating Subsidiaries Which Will Acquire the
Partnership Interests of Lieber & Company and the Assets and
Liabilities of Evergreen Asset Management Corporation. [OCC Control No.
93-ML08023.]
Mellon Bank, N.A.; Notice of Intent to Establish Certain Operating
Subsidiaries Which Will Acquire Most of the Assets, Operations, and
Activities of the Dreyfus Corporation. [OCC Control No. 93-NE-08043.]
First Union National Bank of North Carolina, Charlotte, North
Carolina (First Union) filed a notice with the Office of the
Comptroller of the Currency (OCC) on November 1, 1993 (First Union
Notice), pursuant to 12 CFR 5.34,1 advising the OCC of First
Union's intent to establish three operating subsidiaries. The First
Union Notice describes First Union's intent to acquire, through First
Union's proposed operating subsidiaries, two affiliated investment
advisory companies, Lieber & Company, a New York general partnership,
and Evergreen Asset Management Corp., a Delaware corporation,
(collectively referred to as ``Lieber'').
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\1\The OCC's regulation concerning operating subsidiaries,
Sec. 5.34, provides that national banks may establish or acquire
operating subsidiaries to engage in activities that are part of or
incidental to the business of banking. Where a national bank intends
to engage in new activities in an operating subsidiary, it must
notify the OCC. The OCC reviews the bank's proposal to determine
whether the proposed activities are legally permissible for a
national bank's operating subsidiary and to ensure that the proposal
is consistent with prudent banking principles and OCC policy which
considers customer needs and fair treatment.
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Mellon Bank, N.A., Pittsburgh, Pennsylvania (Mellon) filed a notice
with the Office of the Comptroller of the Currency (OCC) on December
30, 1993 (Mellon Notice), pursuant to Sec. 5.34, advising the OCC of
Mellon's intent to establish certain operating subsidiaries. The Mellon
Notice describes Mellon's intent to acquire, through operating
subsidiaries, most of the assets, operations and activities of The
Dreyfus Corporation, a New York corporation (Dreyfus).
The First Union and Mellon Notices propose activities for operating
subsidiaries that have been approved for national banks. The magnitude
of the Mellon transaction, however, is significant. Because the First
Union Notice involves the acquisition of entities that engage in
activities similar to Dreyfus, the OCC considers it appropriate to
consolidate the two notices for the purpose of soliciting public
comment.
Although notices filed pursuant to Sec. 5.34 do not require public
comment under existing OCC regulations, the OCC has reserved the right,
pursuant to Sec. 5.2(b), to adopt procedures different from those
specifically provided in its corporate applications regulations if the
OCC deems such actions appropriate in acting on a particular
application or filing. The OCC considers it appropriate to seek
comments from the public concerning the First Union and Mellon Notices.
First Union has assets of approximately $20 billion. Both First
Union and its holding company, First Union Corporation (FTU), which has
assets of approximately $71 billion, already have substantial
involvement in trust and investment activities, including mutual fund
administration, brokerage, master trust and custody, institutional
investment management and personal trust. FTU currently administers
approximately $43 billion in assets and manages approximately $27
billion in assets. The Evergreen family of 15 mutual funds currently
has assets of approximately $3.6 billion. Lieber principally provides
investment advice and administrative services to the Evergreen funds,
several large institutional investors and a number of high net worth
individuals. The First Union Notice details the functions currently
performed by Lieber for its clients.
Mellon has assets of approximately $28 billion. Both Mellon and its
holding company, Mellon Bank Corporation (MBC), which has assets of
approximately $36 billion, already have substantial involvement in
trust and investment activities, including mutual fund administration,
brokerage, master trust and custody, institutional investment
management and personal trust. MBC currently administers approximately
$615 billion in assets and manages approximately $135 billion in
assets. Dreyfus, the sixth-largest mutual fund company in the United
States, provides investment advice and administrative services to over
130 mutual funds with approximately $80 billion in assets.
The Mellon Notice details the function of each of the existing
Dreyfus corporations and subsidiaries and sets forth which entities
will be acquired as operating subsidiaries of Mellon, which will be
acquired as operating subsidiaries of MBC, and which will be sold or
liquidated. Pursuant to Mellon's proposal, several of the Dreyfus
entities will become operating subsidiaries of Mellon. The Dreyfus
operations currently include subsidiaries which provide investment
advisory, brokerage, and administrative services to registered
investment companies which are known to the public as the Dreyfus
family of mutual funds.
The OCC invites public comment on the First Union and Mellon
Notices in order to provide interested parties with an opportunity to
express their views concerning the proposed acquisitions that may
assist the OCC in making a final determination concerning the First
Union and Mellon Notices.
The First Union and Mellon Notices and any public comments
submitted are available for inspection by appointment at the OCC
headquarters in Washington, DC. Appointments may be made by calling the
Disclosure Unit at the telephone number listed in the ADDRESSES section
of this request for public comment. Photocopies of the First Union and
Mellon Notices and any public comments submitted are available upon
written request from the Disclosure Unit at the address indicated in
the ADDRESSES section of this request for public comment. Pursuant to
12 CFR 4.17, a fee may be assessed to cover duplication costs.
Interested persons are encouraged to express their views in writing
to the OCC concerning the First Union and Mellon Notices.
Dated: February 18, 1994.
Eugene A. Ludwig,
Comptroller of the Currency.
[FR Doc. 94-4185 Filed 2-23-94; 8:45 am]
BILLING CODE 4810-33-P