If a bank establishes a "financial holding company" it can use that company to buy an...

If a bank establishes a "financial holding company" it can use that company to buy an insurance company, but, under rules established by the Federal Reserve, that insurance company can only sell new policies to depositors of the bank

answer - TRUE OR FALSE

and the explanation for your answer

Expert Solution

It is false , becuase through the use of bank holding companies, areexpanding into many new markets and financial services.

banking legislation passed in 1999 allows banking organiza-tions to set up financial holding companies and thereby participate more fully in insurance, securities, and merchant banking activi-ties. Consequently, banking organizations can now provide a wide range of services, including insurance and securities brokerage and

underwriting, mutual funds, leasing, data processing of financial information, and operation of thrift associations, consumer finance companies, mortgage companies, and industrial banks

ekkarill92 answered 3 years ago

What are the advantages of forming a financial holding company versus forming a bank holding company?

A financial planning firm has a decision to make. The company can buy more stocks (B)...

A financial planning firm has a decision to make. The company can buy more stocks (B) now, not buy and not sell stock (N) now, or it can sell its stock (S) now. The following is from the Google Dictionary: Bear Market: a market in which prices are falling, encouraging selling. Bull Market: a market in which share prices are rising, encouraging buying. The future market will be either Bear (E) or Bull (U). The following is a payoff table,...

True Financial corporation is a financial services holding company headquartered in ithaca new york, that offers...

True Financial corporation is a financial services holding company headquartered in ithaca new york, that offers banking insurance and wealth management service. It pays cash dividends quarterly and also issues stock dividends periodically. 1. At March 31, 2012, True had 9,726,700 shares issued with a par value of $7.00 per share and $75,00 share held in treasury. On April 25, 2012, the company announced that its Board of Directors approved payment of a regular quarterly cash dividend of 3.50 per...

A regional bank holding company recently bought a $100 million package of mortgages that carry an...

A regional bank holding company recently bought a $100 million package of mortgages that carry an average 8.5 percent yield. The holding company has established a subsidiary to manage this package. The subsidiary will finance the mortgage by selling 90-day commercial paper for which the current rate is 5.25 percent. The interest rate risk assumed by the subsidiary is evidenced by the difference in duration of the mortgages at six years and the duration of the commercial paper at 72...

The following information is for Wall Street Holdings, the smallest bank holding company in North Dakota....

The following information is for Wall Street Holdings, the smallest bank holding company in North Dakota. (Bank holding company ID: 1966215. You can look it up at the FDIC.) Wall Street Holdings, Hamilton, ND Report of Condition (x$1,000) Report of Income (x$1,000) Item 2012 2011 Item 2012 2011 Cash 10,357 10,489 Interest Income 409 391 Securities 3,329 2,671 Interest Expense 21 28 Fed. Funds Sold 3,800 2,500 PLL 0 0 Net Loans 3,717 3,377 Non-Interest Income 32 44 Loan Loss...

discuss parts of CAMEL- how can bank examiners use numbers to interpret how a financial institution...

discuss parts of CAMEL- how can bank examiners use numbers to interpret how a financial institution is doing?

Tronic Financial corporation is a financial services holding company headquartered in Ithaca,New York, that offers banking...

Tronic Financial corporation is a financial services holding company headquartered in Ithaca,New York, that offers banking insurance and wealth management service. It pays cash dividends quarterly and also issues stock dividends periodically. 3. Tronic issued 9% stock dividends in 1995, 2003, 2005, 2006, 2010. In 1998, True issued a three-for-two split. If an investor purchased 800 shares in 1994, how many shares would the investor have in 2012?

Permata Mutiara Holdings Berhad (Permata Group) is the holding company of the largest independent investment bank...

Permata Mutiara Holdings Berhad (Permata Group) is the holding company of the largest independent investment bank in Malaysia. Established for more than 30 years, Permata is a financial group in Malaysia with extensive experience in equity broking, investment banking, listed derivatives, treasury, corporate advisory, Islamic banking, wealth management and investment management. Permata Holdings Berhad was listed on the Main Board of Bursa Malaysia Securities Berhad in 1998. After graduation, you have successful join the company and been placed in Investment...

Question a The Ludco court case is an example of: Direct use establishes deductibility. Indirect use...

Question a The Ludco court case is an example of: Direct use establishes deductibility. Indirect use establishes deductibility. A quantitative determination of income is not required. The disappearing source rule. Question g Non-eligible dividends Have a gross up of 38%. Are paid by Canadian controlled private corporations. Have a federal dividend tax credit of 21/29 of the taxable dividend. Are paid by both public and private corporations.

A bank provides financial services for customers. A customer approaches a bank branch and can open...

A bank provides financial services for customers. A customer approaches a bank branch and can open bank account(s). Before opening an account, the customer must fill a form for creating a customer record and then submit the form to a staff member. The system will create a new customer personal record based on the captured customer’s details from an online form. Consider the above processing requirements description of the Bank Management System application Your tasks are: 1.Draw the Entity...

Question