Footnote 1:  Parent companies of ILCs may be subject to other federal agency supervision such as by the Office of Thrift Supervision (for parent companies affiliated with savings institutions) or oversight by the Securities and Exchange Commission (for parent companies that are publicly traded).

Footnote 2:  A PBO is created when at least one U.S. depository institution and one foreign bank are controlled either directly or indirectly by the same person or group of persons who are closely associated in their business dealings or otherwise acting in concert.

Footnote 3:  In addition to the statutory factors, the considerations required by the National Historic Preservation Act of 1966 and the National Environmental Policy Act of 1969 must also be resolved favorably in order for the applicant to receive deposit insurance.

Footnote 4:  FDIC Statement of Policy on Applications for Deposit Insurance, effective
October 1, 1998, amended at 67 Fed. Reg. 79278, December 27, 2002.

Footnote 5:  Chartering State Authorities grant charters to financial institutions, including ILCs. The Office of the Comptroller of the Currency is responsible for chartering all national banks.

Footnote 6:  Industrial Loan Corporations – Recent Asset Growth and Commercial Interest Highlight Differences in Regulatory Authority (GAO-05-621, September 2005).

Footnote 7:  We also noted that the deposit insurance Orders for three ILCs (UBS Bank USA, Toyota Financial Savings Bank, and Volkswagen Bank USA) required the parent company to maintain in the United States a designated agent to accept service on the parent’s behalf, including service of any legal process. The UBS Order also required the parent to consent and submit to United States jurisdiction relating to the administration and enforcement of any banking law.

Footnote 8:  The SOI for one ILC for which an ROI was not available did not indicate that examiners had interviewed representatives from existing banks or businesses.

Footnote 9:  All national banks, state member banks, and insured state nonmember banks are required to file a quarterly consolidated Call Report. Consolidated Call Reports are a widely used source of financial data regarding a bank’s condition and the results of its operations. The information is extensively used by bank regulatory agencies in their daily offsite bank monitoring activities.

Footnote 10:  The Order for 1 of the 12 ILCs in our sample was approved in August 2005. The
6-month visitation had not yet been completed at the time of our field work.