Edge Act


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Edge Act

Legislation in the United States, passed in 1919, that allowed the Federal Reserve to charter banks that could conduct international transactions without needing to abide by the banking laws of an individual state. Because banking is more international today, there are fewer distinctions between Edge Act corporations and ordinary banks.
References in periodicals archive ?
Circuit Judge Pierre Leval rejected Bank of America's argument that the case belonged in federal court under the Edge Act, a 1919 law governing international banking.
commercial banks, of which more than 25 percent are owned by foreign banks; and international banking facilities, The data exclude Edge Act and agreement corporations; U.
Among the provisions included in the Clean EDGE Act are a mandate that 25 percent of new vehicles sold in the U.
Legislation has even been introduced called the Protect America's Competitive Edge Act.
The Federal Reserve Board on May 29, 2003, announced that it is seeking public comment on a proposal to amend Regulation K (International Banking Operations) to require Edge Act and agreement corporations and U.
The Banking Group focuses its resources on servicing Florida chartered banks, national banks and foreign bank holding companies, Edge Act corporations, international bank agencies and representative offices of foreign banks in the United States.
Provisions should also be added that would clarify how clearing organizations organized as uninsured state member banks or Edge Act corporations would be resolved in the event of their bankruptcy.
Banking organizations also have been authorized to match competition abroad by investing in foreign companies through their Edge Act affiliates and subsidiaries, and, under the Bank Holding Company Act of 1956, bank holding companies can invest in up to 5 percent of the voting shares (and up to 25 percent of the total equity) of any company.
As you know, the Board's Regulation K governs the international operations of member banks, bank holding companies, and Edge Act corporations.
An Agreement Corporation is permitted to conduct business of an international nature only, similar to an Edge Act corporation.
RIGS also entered into a Cease and Desist Order with The Federal Reserve Bank of Richmond (Fed), which regulates the holding company and Riggs International Banking Corporation (its Edge Act Corporation).