Orders issued under International Banking Act - Legal Developments

Federal Reserve Bulletin, Sept, 2002 by Robert deV. Frierson

Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Gramlich, Bies, and Olson.

(1.) All financial data are as of March 31, 2002.

(2.) The subsidiaries are Nordea Bank Danmark A/S, Nordea Bank Norge ASA, and Nordea Bank Sweden AB.

(3.) In assessing this standard, the Board considers, among other factors, the extent to which the home country supervisors:

(i) Ensure that the bank has adequate procedures for monitoring and controlling its activities worldwide;

(ii) Obtain information on the condition of the bank and its subsidiaries and offices through regular examination reports, audit reports, or otherwise;

(iii) Obtain information on the dealings with and relationship between the bank and its affiliates, both foreign and domestic;

(iv) Receive from the bank financial reports that are consolidated on a worldwide basis or comparable information that permits analysis of the bank's financial condition on a worldwide consolidated basis;

(v) Evaluate prudential standards, such as capital adequacy and risk asset exposure, on a worldwide basis. These are indicia of comprehensive, consolidated supervision. No single factor is essential, and other elements may inform the Board's determination.

(4.) As part of the Nordea reorganization, it is expected that ASBC will be liquidated in accordance with New York law.

(5.) The authority to approve the establishment of the proposed branch and the acquisition of ASBC parallels the continuing authority of the State of New York to license offices of a foreign bank and to supervise Article XII companies. The approval of this application does not supplant the authority of the State of New York, or its agent, the New York State Banking Department ("Department"), to license the proposed office of Bank and supervise ASBC in accordance with any terms or conditions that the Department may impose.

ROBERT DEV. FRIERSON
Deputy Secretary of the Board