Comptroller expands bank powers; regulations may open door to greater diversification
Article Abstract:
The US Comptroller of the Currency published regulations on Nov 20, 1996, allowing national banks to establish subsidiaries for non-bank items such as securities and insurance. Comptroller Eugene A. Ludwig has gained confidence from 1994-95 Supreme Court decisions backing comptroller decisions expanding bank powers, and the banks themselves have been lobbying for diversification. The insurance industry fears that insurance underwriting would put federally insured deposits at risk if insurance and banking are not clearly divided, while banks say regulations would guard against this and that consumers would benefit from the competition.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1996
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Insurance? It's in the bank; victories before courts and regulators are causing banks to broaden insurance activities
Article Abstract:
The Office of the Comptroller of the Currency Draft Best Practices Guidelines for the marketing of insurance and annuity products were issued in June 1996 and have made it easier for national banks to get into the insurance business and state regulations will undoubtedly follow suit so that state banks can retain their competitive edge in providing insurance products. Thrifts have more authority to issue insurance products than banks and even bank holding companies can market insurance products via nonbank subsidiaries. Banks have used many ways to market insurance products.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1996
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OCC is prime proponent of banks' policy peddling; supporting insurance sales by banks, comptroller sees some success but several setbacks
Article Abstract:
The Office of the Comptroller of the Currency (OCC) continues supporting insurance underwriting by national banks and has authorized more underwriting activities by national bank subsidiaries although it has yet to authorize a national bank to conduct underwriting directly. Significant disagreement with some OCC decisions has come from the courts, including a rejection of the OCC's authorization of crop insurance sales and a rejection of the OCC's 1994 letter allowing the bank underwriting of retirement certificates of deposit.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1999
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