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exist; three, whether resources will be diverted

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from the supporting market areas of the subsidiary

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banks of Financial General Bank Shares; and four,
whether in this last respect, the allocation of the

several banks' resources may be so changed as to
disrupt the flow of essential banking services in
individual communities; five, whether relations with
other nonbanking interests of the investors will

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be of such a nature and extent as to become detrimental

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to the soundness of the banking institutions involved;

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and six, whether information supplied by or about
related or affiliated foreign organizations can be

reliably evaluated using commonly accepted accounting
standards and legal principles; and seven, whether
extensions of credit and other transactions between

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the domestic banking organizations and their foreign parents can be discovered and, if necessary, controlled

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and, perhaps, as the ultimate regulatory issue; eight, whether the risk that these potential problems may

and such a risk does exist is acceptable

when weighed against the broadly generalized but

unsubstantiated claims with which the applications

are replete. And that is that various benefits will

result to Financial General, its subsidiary banks

and the communities now served and to be served by

(202) 234-4433

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general in nature, and can be accepted, of course ·

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by the applicants.

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Can everyone hear me, incidentally?

I have

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an unfortunate tendency to mumble. Can you hear
me back there, Bob? If you can, everybody can.
My statement is this. At the invitation

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of the Board of Governors, the Bureau of Financial Institutions has previously submitted several questions

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to the Board in writing with the understanding that
those questions are to be addressed by the applicant.

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Those questions are fairly specific and generally either concern statements made in the application

or ask for elaboration upon other points of interest.
The concerns sought to be addressed by means of those
questions are of a supervisory nature. They include,
although not necessarily in order of importance,

one, whether United States laws and regulatory policies

can be applied and enforced effectively with respect

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to the applicants and their principals; two, whether

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11

1

exist; three, whether resources will be diverted

2

from the supporting market areas of the subsidiary

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banks of Financial General Bank Shares; and four,
whether in this last respect, the allocation of the

several banks' resources may be so changed as to
disrupt the flow of essential banking services in
individual communities; five, whether relations with
other nonbanking interests of the investors will

be of such a nature and extent as to become detrimental

to the soundness of the banking institutions involved; and six, whether information supplied by or about related or affiliated foreign organizations can be reliably evaluated using commonly accepted accounting standards and legal principles; and seven, whether extensions of credit and other transactions between

the domestic banking organizations and their foreign parents can be discovered and, if necessary, controlled and, perhaps, as the ultimate regulatory issue; eight, whether the risk that these potential problems may

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and such a risk does exist

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is acceptable

when weighed against the broadly generalized but

unsubstantiated claims with which the applications

are replete. And that is that various benefits will

result to Financial General, its subsidiary banks

and the communities now served and to be served by

(202) 234-4433

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COMMISSIONER BAILEY:

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Thank you very much,

Mr. Mannion. My statement is addressed in form to

the Board of Governors.

However, the comments are

general in nature, and can be accepted, of course,

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by the applicants.

Can everyone hear me, incidentally?

I have

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an unfortunate tendency to mumble. Can you hear
me back there, Bob? If you can, everybody can.
My statement is this. At the invitation

of the Board of Governors, the Bureau of Financial
Institutions has previously submitted several questions

to the Board in writing with the understanding that

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those questions are to be addressed by the applicant.

Those questions are fairly specific and generally either concern statements made in the application

or ask for elaboration upon other points of interest.
The concerns sought to be addressed by means of those
questions are of a supervisory nature. They include,
although not necessarily in order of importance,

one, whether United States laws and regulatory policies

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can be applied and enforced effectively with respect

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to the applicants and their principals; two, whether

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11

1

exist; three, whether resources will be diverted

2

from the supporting market areas of the subsidiary

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banks of Financial General Bank Shares; and four,
whether in this last respect, the allocation of the

several banks' resources may be so changed as to
disrupt the flow of essential banking services in
individual communities; five, whether relations with

other nonbanking interests of the investors will

be of such a nature and extent as to become detrimental to the soundness of the banking institutions involved; and six, whether information supplied by or about related or affiliated foreign organizations can be reliably evaluated using commonly accepted accounting standards and legal principles; and seven, whether extensions of credit and other transactions between

the domestic banking organizations and their foreign parents can be discovered and, if necessary, controlled and, perhaps, as the ultimate regulatory issue; eight, whether the risk that these potential problems may

Occur -

and such a risk does exist is acceptable when weighed against the broadly generalized but unsubstantiated claims with which the applications

are replete. And that is that various benefits will result to Financial General, its subsidiary banks

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and the communities now served and to be served by

(202) 234-4433

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