Securities Activities of Banks in the GLB Era - Cleary Gottlieb Steen ...

(vii) Bank support to funds advised by banking
organizations or their affiliates (including through
credit extension, cash infusion, asset purchases and
acquisition of fund shares). 33
5. Focus on compliance with the Anti-tying Statute. 34
6. Focus on compliance with equity investment limitations and
requirements (and on monitoring processes, documentation,
investment approval and due diligence procedures). Issues in this
regard can relate to such matters as:
a. U.S. federal banking authority being relied upon for such
investment; 35 e.g.:
(i) The Board’s merchant banking rules: FHC
investments in “non-financial” companies.
(ii) Treatment of merchant banking-type investments in
financial services businesses (including such entities as
banks/BHCs, savings associations/thrift holding
companies, foreign banks with U.S. operations,
industrial banks, non-bank banks, credit unions,
mortgage/consumer/commercial finance companies,
broker-dealers, investment advisers/asset managers,
commodity pool operators, futures commission
33 See Bank Activities Guide at Part VIII.B.1.c.viii. See also Interagency Policy on
Banks/Thrifts Providing Financial Support to Funds Advised by the Banking
Organization or its Affiliates (January 5, 2004).
34 See Part I above.
35 See Bank Activities Guide at Part VII, Part VIII; 12 C.F.R. §§ 211.8 et seq., 211.23,
225.170 et seq.
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