Legal Interpretations
Foreign Banks/International Banking - 2000 Letters
August 18, 2000
To Chase Manhattan Corporation, granting exemptions from 23A of the Federal Reserve Act (12 USC 371c), and relief from section 211.5(d)(14)(iii) of Regulation K, to facilitate the reorganization of Chase's foreign banking business after Chase acquires Robert Fleming Holdings Limited. Chase requested that the Board (i) exempt from section 23A the purchase from Chase by its subsidiary state member bank, The Chase Manhattan Bank, of certain investment banking businesses acquired by Chase in connection with its acquisition of Fleming; and (ii) exempt from the collateral requirements of section 23A, for a period of six months, certain outstanding lines of credit from the Fleming Bank Businesses to various investment funds sponsored and advised by Fleming. Chase also requested a period of six months in which to conform its foreign equity dealing operations to the Regulation K limits.