Sumitomo Trust & Banking Co., Ltd.; Acquisition of Company Engaged in Permissible Nonbanking Activities

FEDERAL RESERVE SYSTEM

Sumitomo Trust & Banking Co., Ltd.; Acquisition of Company

Engaged in Permissible Nonbanking Activities

The company listed in this notice has applied under Sec. 225.23(a)

of the Board's Regulation Y (12 CFR 225.23(a)) for the Board's approval

under section 4(c)(8) of the Bank Holding Company Act (12 U.S.C.

1843(c)(8)) and Secs. 225.21(a) of Regulation Y (12 CFR 225.21(a)) to

acquire or control voting securities or assets of a company engaged in

nonbanking activities that are listed in Sec. 225.25 of Regulation Y

and nonbanking activities that are not listed in Regulation Y but have

previously been approved by Board Order to be closely related to

banking and permissible for bank holding companies. These activities

will be conducted throughout the United States.

The application is available for immediate inspection at the

Federal Reserve Bank of New York and at the offices of the Board of

Governors of the Federal Reserve System in Washington, D.C. Interested

persons may express their views in writing on the application including

the factors set forth in section 4(c)(8) of the Bank Holding Company

Act (12 U.S.C. 1843(c)(8)), including whether consummation of the

proposal can reasonably be expected to produce benefits to the public,

such as greater convenience, increased competition, or gains in

efficiency, that outweigh possible adverse effects, such as undue

concentration of resources, decreased or unfair competition, conflicts

of interests, or unsound banking practices. Any comments on the

application that request a hearing must be accompanied by a statement

of the reasons a written presentation would not suffice in lieu of a

hearing, identifying specifically any questions of fact that are in

dispute, summarizing the evidence that would be presented at a hearing,

and indicating how the party commenting would be aggrieved by approval

of the proposal.

Comments regarding the application must be received not later than

April 25, 1994, at the Reserve Bank indicated or to the attention of

William W. Wiles, Secretary, Board of Governors of the Federal Reserve

System, 20th Street and Constitution Avenue, N.W., Washington, D.C.

20551.

A. Federal Reserve Bank of New York (William L. Rutledge, Vice

President) 33 Liberty Street, New York, New York 10045:

1. Sumitomo Trust & Banking Co., Ltd., Osaka, Japan; to acquire

Boullioun Aviation Services, Inc., Bellevue, Washington, and thereby

engage in leasing personal property and acting as agent, broker or

advisor in leasing such property pursuant to Sec. 225.25(b)(5)(i);

leasing tangible personal property and acting as agent, broker or

advisor in leasing such property, in which the lessor relies on an

estimated residential value of the property in excess of 25 percent

pursuant to Sec. 225.25(b)(5)(ii); making, acquiring or servicing

commercial loans and other extensions of credit for its account or that

of others and acting as agent, broker or advisor with respect to such

credit financing transactions, pursuant to Sec. 225.25(b)(1); acting

as an investment or financial advisor to the extent of (i) providing

portfolio investment advice regarding investments in aircraft leases

and other financing of aircraft and related equipment; (ii) furnishing

general economic statistical forecasting services and industry studies

regarding the aircraft and air transportation industry; and (iii)

providing advice, including rendering fairness opinions and providing

valuation services, in connection with financing transactions or

aircraft and related equipment (including private and public financing

and loan syndications) and conducting financial feasibility studies

pursuant to Sec. 225.25(b)(4) of the Board's Regulation Y.

Applicant also seeks to engage in asset management activities,

including managing and collecting performing and nonperforming aircraft

loans, leases and related financial assets; rendering advice on quality

grading categories for financial assets; establishing reserve levels

for specific assets and for entire portfolios; formulating and

implementing business plans related to managed financial assets;

initiating foreclosure, repossession, and other legal proceedings;

managing bankruptcy and other litigation proceedings involving managed

financial assets; managing liquidation of financial assets and related

property; rendering advice regarding the preparation of financial

assets and related property for sale; negotiating renewals, extensions,

and restructuring agreements; developing and implementing marketing

strategies for the sale or refinancing of individual financial assets

and related property and for the packaging and sale of whole or

securitized financial asset portfolios; conducting and reviewing

appraisals and inspections; providing asset valuations; performing cash

flow and asset review analyses; contracting with and supervising

independent asset managers; leasing related property; and developing

and implementing marketing strategies for the sale of related property.

The Board has previously approved bank holding companies to engage in

asset management activities. See, e.g., The Dai-Ichi Kangyo Bank, 79

Federal Reserve Bulletin 131 (1993), Continental Bank Corporation, 79

Federal Reserve Bulletin 888 (1993). Applicant also seeks to provide

asset management services to non-financial institutions as well as

financial institutions.

Board of Governors of the Federal Reserve System, March 29,

1994.

William W. Wiles,

Secretary of the Board.

[FR Doc. 94-7948 Filed 4-1-94; 8:45 am]

BILLING CODE 6210-01-F