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 2 years ago

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