Affiliates in Banking, Finance, and Commerce: Development and Regulatory Background (CRS Report for Congress)
| Release Date |
April 27, 2005 |
| Report Number |
RS21680 |
| Report Type |
Report |
| Authors |
William D. Jackson, Government and Finance Division |
| Source Agency |
Congressional Research Service |
Summary:
The proliferation of corporate affiliates in banking, finance, and commerce hasfigured in discussion of several policy issues, including how to protect against (1) lossesincurred by affiliated companies; (2) anticompetitive "tying" of bank and nonbankfinancial services; and (3) misuse of financial data of consumers. The Gramm-Leach-Bliley Act in 1999 greatly increased affiliations. Sharing of consumer financialinformation among affiliates, one issue in reauthorization of the Fair Credit ReportingAct, requires considerable attention to affiliations. Proposed Community ReinvestmentAct regulations involve affiliates of banks. Comptroller of the Currency efforts to bringsubsidiaries of national banks under federal banking law, preempting than state laws,also involve affiliations. This report outlines the nature and evolution of affiliates,primarily from a regulatory perspective. It provides background for discussing financialissues involving corporate affiliates.
