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6.6 Consistent Oversight of Depository Institution Holding Company Subsidiaries

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6.6 Consistent Oversight of Depository Institution Holding Company Subsidiaries

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6.6.       Consistent Oversight of Depository Institution Holding Company Subsidiaries.  The Fed is required to examine all non-depository institution subsidiaries (other than a functionally-regulated subsidiary or a depository institution subsidiary) that engage in activities that are permissible for an insured depository institution, as if the activities were conducted in the lead insured depository institution subsidiary of the institution holding company.  The purpose of this requirement is to ensure that bank-permissible activities are supervised and regulated in the same manner, without regard to whether they are conducted by a bank or by a nonbank holding company affiliate.  The appropriate Federal banking agency for the lead depository institution subsidiary has backup authority examination and enforcement authority under certain circumstances if the Fed does not take action.  The provisions relating to consistent examinations become effective on the Transfer Date.[§ 605] 

6.6.1. Coordination with State Authorities.  To the extent that a state authority examines the bank-permissible activities conducted in a nonbank subsidiary of a depository institution holding company, the Fed is required to coordinate with the state authority and may conduct joint or alternating examinations of the subsidiary.