Alabama Ass'n of Ins. Agents v. Board of Governors of Federal Reserve System, s. 74-2981

Citation558 F.2d 729
Decision Date10 January 1977
Docket NumberNos. 74-2981,74-3544 and 74-3843,s. 74-2981
PartiesALABAMA ASSOCIATION OF INSURANCE AGENTS et al., Petitioners, v. BOARD OF GOVERNORS OF the FEDERAL RESERVE SYSTEM, Respondent. GEORGIA ASSOCIATION OF INDEPENDENT INSURANCE AGENTS et al., Petitioners, v. BOARD OF GOVERNORS OF the FEDERAL RESERVE SYSTEM, Respondent. NATIONAL ASSOCIATION OF INSURANCE AGENTS, INC., Petitioner, v. BOARD OF GOVERNORS OF the FEDERAL RESERVE SYSTEM, Respondent. . Rehearing and Rehearing En Banc Denied
CourtUnited States Courts of Appeals. United States Court of Appeals (5th Circuit)

Herbert E. Marks, Thomas J. Bacas, Thomas E. Wilson, Washington, D. C., Robert R. Richardson, Atlanta, Ga., John F. Neville, Gen. Counsel, Nat. Assoc. of Ins. Agents, Inc., New York City, Bibb Allen, Birmingham, Ala., for petitioners.

Wm. B. Scher, Jr., Washington, D. C., for Nat'l Assoc. of Life Underwriters & Alabama State Assoc. of Life Underwriters, Inc.

Macbeth Wagnon, Jr., Birmingham, Ala., for Southern Bancorporation.

William B. Saxbe, Atty. Gen., U. S. Dept. of Justice, Theodore E. Allison, Sec., Board of Governors of the Fed. Reserve System, Leonard Schaitman, Ronald R. Glancz, Dept. of Justice, Civ. Div., Applt., Sec., Wash., D. C., Edward H. Levi, Atty. Gen. of the U. S. A., Washington, D. C., for respondent.

Horace R. Hansen, St. Paul, Minn., Theodore E. Allison, Secretary, Board of Governors of the Federal Reserve System, Washington, D. C., Leonard Schaitman, Ronald R. Glancz, Dept. of Justice, Washington, D. C., amicus curiae on rehearing for Independent Bankers Assoc. of America.

John V. Austin, Eugene J. Metzger (Committee To Preserve Consumer Options), Lawrence F. Noble, Washington, D. C., for intervenor in Nos. 74-2981, 74-3843.

Herbert E. Marks, Thomas J. Bacas, Thomas E. Wilson, Washington, D. C., Robert R. Richardson, Atlanta, Ga., John F. Neville, Gen. Counsel, National Assoc. of Ins. Agents, Inc., New York City, for petitioners in No. 74-3544.

Leonard Schaitman, Ronald R. Glancz, Dept. of Justice, Civil Div., Appellate Section, Washington, D. C., Theodore E. Allison, Secretary, Bd. of Governors of the Fed. Reserve System, Washington, D. C., Edward H. Levi, Atty. Gen. of Washington, D. C., for respondent in No. 74-3544.

John V. Austin, Washington, D. C., McChesney H. Jeffries, Howard O. Hunter, Atlanta, Ga., for intervenors in No. 74-3544.

Herbert E. Marks, Washington, D. C., Robert R. Richardson, Atlanta, Ga., for petitioners in No. 74-3843.

Theodore E. Allison, Sec., Board of Governors of the Fed. Reserve System, Washington, D. C., William B. Saxbe, Atty. Gen., Washington, D. C., for respondent in No. 74-3843.

On Petitions for Review of Orders of the Board of Governors of the Federal Reserve Board (Alabama, Georgia and Georgia Cases, respectively).

ON SECOND PETITIONS FOR REHEARING AND PETITIONS FOR REHEARING EN BANC

(Opinion June 10, 1976, 533 F.2d 224, 5th Cir. 1976)

Before TUTTLE, THORNBERRY * and CLARK, Circuit Judges.

PER CURIAM:

Petitioners point out that in approving the Board's regulation authorizing holding company sales of property damage and liability insurance in connection with extensions of credit by "a bank or bank-related firm," we failed to make clear whether such insurance could properly be provided by non-bank holding company subsidiaries as well as bank subsidiaries. This observation is correct; however, we reject petitioners' contention that the sale of property damage and liability insurance should be restricted to subsidiaries which are banks. On the contrary, we find that the provision of property damage and liability insurance in connection with the traditional banking-type functions of extending credit and providing other financial services is "closely related to banking." Whether the banking-type services and related insurance are provided by a bank or a non-bank subsidiary of a bank holding company is irrelevant. Thus, we clarify our original opinion by holding that the Board's regulation 225.4(a)(9)(ii...

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