Appendix 2.-Materials relating to LITCO Bancorporation of New York, Inc— Page Holding company application by Banca Commerciale Italiana to acquire Skeleton pro forma organization chart 584 Italian companies controlled or invested in by Banca Commerciale 586 Non-Italian companies controlled or invested in by Banca Commer- 588 Supplementary information concerning Italian Government holding com- 590 590 592 Employment in IRI companies, 1979 and 1980 593 Total book value and net worth of component companies of IRI, year 594 Press materials 595 "$93 Million Italian Bid for Litco," by Robert A. Bennett, New York 595 "Foreign Banks at Home on LI; Proposed Takeover of LITCO by "Flagship Banks Fears Foreign Bid: Complains Venezuelan Conglom- "Venezuelan Group Denies Flagship Role," American Banker, Sep- 596 598 599 601 601 601 602 "Fed Stalls Bid of Venezuelans," American Banker, October 26, 603 "The Takeover (Maybe) at Flagship; Fed to Rule Whether Venezu- Letter to Federal Reserve from attorneys for Flagship Banks regard- Letter to subcommittee from attorneys for Flagship Banks regarding defects in change in Bank Control Act of 1978, September 24, 1982.. Florida National Banks of Florida, Inc..... 604 607 621 628 "Florida National Says Venezuelan Bank Flouted State Ban on 628 "Florida National Holder Blocked on Lifting Stake," Wall Street 629 "Florida National Ruling Reversed by Fed; Cavendes Allowed To Lift 630 "Cavendes Buys 10 Percent of Florida National, at $26 a Share, 631 "Cavendes Sells Florida National Holding of 7.5 Percent to Firm 632 "Florida National's Acquisition of Alliance Prompts Cavendes Suit," 633 "Florida National, Southeast Settle Takeover Battle," Wall Street 634 Great Western: "Great Western Sale Approved," American Banker, 635 Central Bank and Trust: "Foreigners Win Control of N.Y. Bank,” by 636 Page Appendix 3.-Materials relating to other foreign acquisition cases-Continued 637 First Women's Bank. 638 "Brazilian Firm To Invest in N.Y. Bank," by Teresa Carson, Ameri- 638 639 "Counteroffer Considered for First Women's Bank," by Lydia Chavez, "Any Port in a Storm," by Janet Bamford, Forbes, December 6, 1982.. Application to foreign banks of the nonbanking activities prohibition. Federal Reserve amendments to Regulation K dealing with the non- Reporting requirements for foreign banking organizations... 640 641 642 642 642 665 675 677 677 "Proposed Form F.R. Y-7 and Proposed Foreign Banking Organiza- 705 "Annual Reporting Requirements for Foreign Banking Organizations 713 Chart showing comparison of reporting requirements.... 744 "Fed Eases Foreign Bank Disclosure," American Banker, November 746 Federal Reserve announcement of new report forms, February 9, 747 Reporting form for "Annual Report of Foreign Banking Organiza- 749 Reporting form for "Foreign Banking Organization Confidential Report of intercompany transactions for foreign banking organizations...... 770 780 780 Federal Reserve Board announcement of adoption of reporting re- 802 Reporting form for "Report of Intercompany Transactions for For- 805 "Instructions for Preparation of the Report of Intercompany Transac- 809 Federal Reserve letter to the subcommittee responding to previous subcommittee objections to Federal Reserve regulatory proposals, February 18, 1981 Subcommittee correspondence with Federal Reserve concerning an exemption for foreign governments in section 211.23(h) of Regulation K, June 30 through October 15, 1982...... 831 835 Subcommittee letter to Federal Reserve requesting comment on treatment of foreign governments under the Bank Holding Company Act, October 8, 1982... 845 Appendix 5.-Additional background materials and data: Section 23A of the Federal Reserve Act, as amended October 15, 1982 (the 848 List of U.S. offices and subsidiaries of foreign banks owned or controlled by foreign governments......... 854 Page Appendix 5.-Additional background materials and data-Continued List of U.S. branches of foreign banks having FDIC insurance.. 856 Cover page (footnotes explaining column headings and entries). U.S. bank holding companies under foreign ownership. Federal Reserve lists of foreign investment in U.S. banking institutions, as of June 30, 1982. Foreign country codes.... U.S. chartered banks under foreign ownership... 858 858 859 862 870 Edge and agreement corporations under foreign ownership 879 881 U.S. agencies of foreign banks. 892 N.Y. investment companies (title XII).. 901 U.S. savings and loan associations under foreign ownership. Press and periodical articles. 902 903 "National Policies on Foreign Acquisitions of Banks," by Steven J. 903 "A Critical Evaluation of Reciprocity in Foreign Bank Acquisitions,' 908 "Foreigners' Share of Calif. Assets Up," by Geoff Brouillette, Ameri- 925 "Canada: A Strict New Law Limits Foreign Bankers,' Business "Which Have the Edge: U.S. Banks Abroad, or Foreign Banks Here?" 927 930 FOREIGN GOVERNMENT AND FOREIGN THURSDAY, SEPTEMBER 30, 1982 HOUSE OF REPRESENTATIVES, AND MONETARY AFFAIRS SUBCOMMITTEE OF THE COMMITTEE ON GOVERNMENT OPERATIONS, Washington, D.C. The subcommittee met, pursuant to notice, at 10:05 a.m., in room 2247, Rayburn House Office Building, Hon. Benjamin S. Rosenthal (chairman of the subcommittee) presiding. Present: Representatives Benjamin S. Rosenthal, Lyle Williams, Hal Daub, William F. Clinger, Jr., and John Hiler. Also present: Donald P. Tucker, chief economist; Eleanor M. Vanyo, secretary; and Jack Shaw, minority professional staff, Committee on Government Operations. OPENING STATEMENT OF CHAIRMAN ROSENTHAL Mr. ROSENTHAL. The subcommittee will come to order. The Commerce, Consumer, and Monetary Affairs Subcommittee has been examining for several years the growing trend of foreign investment in the United States and especially foreign control of U.S. corporations in key industries. The subcommittee has conducted extensive investigations, held a number of hearings, and issued a report on this subject. Foreign control of U.S. banks has been one major focus of these investigations and hearings, and today we continue our oversight in this area with a hearing on control of U.S. banks by foreign governments and foreign investors. Today's hearing will focus principally on the recent acquisition of the Long Island Trust Co. by a bank owned by the Italian Government, the acquisition of Financial General Bankshares by a group of Middle Eastern investors whose ties to their respective governments have never been clearly established, and the general banking record of the many smaller U.S. banks whose owners are foreign individuals. The subcommittee will seek to determine whether it is consistent with our national interests to have a blanket policy of permitting foreign governments to acquire our major banks. In particular the subcommittee will examine carefully the Federal Reserve's decision to exempt from Bank Holding Company Act requirements the Italian Government holding company which is the ultimate owner now of the Long Island Trust Co. (1) |