Orders issued under Federal Reserve Act. (Legal Developments).JPMorgan Chase Bank New York, New York Order Approving Establishment of a Branch J.P. Morgan Chase Bank, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , New York ("Bank"), a state member bank, has given notice under section 9 of the Federal Reserve Act ("Act") (12 U.S.C. [section] 321 et seq et seq. (et seek) n. abbreviation for the Latin phrase et sequentes meaning "and the following." It is commonly used by lawyers to include numbered lists, pages or sections after the first number is stated, as in "the rules of the road are found in Vehicle Code .) of its intention to establish a branch at the Newport Center Newport Center is a business, shopping, and entertainment district located on a high bluff overlooking Newport Harbor in Newport Beach, California. It was created in the early 1960s as part of William Pereira's master plan for the Irvine Ranch. , 575 Washington Boulevard The following roads are named Washington Boulevard:
Notice of the proposal, affording interested persons an opportunity to submit comments, has been published in accordance with the Board's Rules of Procedure (12 C.F.R. 262.3(b)). The time for filing comments has expired, and the Board has considered the notice and all comments received in light of the factors specified in the Act. Bank is the 13th largest banking organization in New Jersey, controlling deposits of approximately $2.6 billion, representing approximately 1.5 percent of commercial banking deposits in the state. (1) Bank is a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of J.P. Morgan Chase & Co., New York, New York. Considerations Under the Federal Reserve Act Section 9(4) of the Act (12 U.S.C. [section] 322) requires that when acting on a branch application, the Board consider the financial condition of the applying bank, the general character of its management, and whether its corporate powers are consistent with the purposes of Act. The Board has carefully reviewed the factors it is required to consider for the establishment of a branch under section 9 of the Act in light of all facts of record. As part of its consideration, the Board has reviewed reports of examination and other supervisory information. Based on all the facts of record, the Board has concluded that these statutory factors are consistent with approval of the notice. Community Reinvestment Act Community Reinvestment Act (CRA) Enacted by Congress in 1977, the CRA encourages banks to help meet the credit needs of their communities for housing and other purposes, particularly in neighborhoods with low or moderate incomes, while maintaining safe and sound operations. Considerations In acting on an application to establish a branch, the Board is required to take into account a bank's record under the Community Reinvestment Act ("CRA See Community Reinvestment Act. "). (2) The CRA requires the federal financial supervisory agencies to encourage financial institutions to help meet the credit needs of the local communities in which they operate, consistent with their safe and sound operation, and requires the appropriate federal supervisory authority to assess the institution's record of meeting the credit needs of its entire community, including low- and moderate-income ("LMI LMI Labor Market Information LMI Local Management Interface LMI Logistics Management Institute LMI Linear Matrix Inequality LMI Legemiddelindustriforeningen (Norway) LMI Low to Moderate Income LMI Lender's Mortgage Insurance ") neighborhoods, in evaluating branch applications. A. CRA Performance Examination As provided in the CRA, the Board evaluates the performance of an institution in light of examinations by the appropriate federal supervisors of the CRA performance record of the institution. An institution's most recent CRA performance evaluation Performance evaluation The assessment of a manager's results, which involves, first, determining whether the money manager added value by outperforming the established benchmark (performance measurement) and, second, determining how the money manager achieved the calculated return is a particularly important consideration in the applications process because it represents a detailed, on-site evaluation of the institution's overall record of performance under the CRA by its appropriate federal supervisor. (3) Bank received an overall "outstanding" rating at its most recent CRA examination by the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , as of July 9, 2001. B. CRA Performance Record According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its most recent CRA examination, Bank's lending activity in the New York Metropolitan Area New York–Northern New Jersey–Long Island is the most populous metropolitan area in the United States and the third most populous in the world, after Tokyo and Mexico City. (4) showed excellent responsiveness to retail credit needs. (5) During the examination period, Bank and its affiliates were the leading lender in the New York Metropolitan Area in originated and purchased home purchase, refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. , and small business loans. According to examiners, the overall geographic distribution of Bank's retail loans reflected excellent loan penetration in LMI areas. Bank's record of lending to businesses in the New York Metropolitan Area was excellent. Approximately 93 percent of small loans to businesses originated in the assessment area during the examination period were for amounts of $100,000 or less. The average size of such loans was $33,000, an amount that examiners concluded would meet the credit needs of smaller businesses. Examiners also rated Bank's community development lending performance in the New York Metropolitan Area as excellent. (6) Bank received an "outstanding" rating on the investment portion of its CRA examination in the New York Metropolitan Area. Examiners characterized Bank's level of qualified community development investments and grants as exhibiting strong responsiveness to credit and community development needs through organizations involved in affordable housing, economic development, community services, and revitalization re·vi·tal·ize tr.v. re·vi·tal·ized, re·vi·tal·iz·ing, re·vi·tal·iz·es To impart new life or vigor to: plans to revitalize inner-city neighborhoods; tried to revitalize a flagging economy. and stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders activities. (7) Examiners rated Bank's performance in the New York Metropolitan Area under the service test as outstanding. Examiners based this rating on what they characterized as excellent delivery of retail services and Bank's leadership role in providing community development services. Overall, examiners indicated that delivery systems were readily accessible to all portions of Bank's assessment area, taking into consideration the percentage of the population residing in LMI areas. Examiners also characterized Bank as a leader in providing community development services. C. Conclusion on CRA Performance The Board has considered carefully the entire record of Bank's CRA performance, including Bank's most recent CRA performance examination. Based on all the facts of record, the Board concludes that CRA considerations are consistent with approval of the proposal. Conclusion Based on the foregoing and all the facts of record, the Board has determined that this notice should be, and hereby is, approved. The Board's approval is specifically conditioned on Bank's compliance with all commitments made in connection with the proposal. The commitments and conditions relied on by the Board are deemed to be conditions imposed in writing in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law. Approval of this notice is subject to the establishment of the proposed branch within one year of the date of this order, unless such period is extended by the Board or the Federal Reserve Bank of New York, acting pursuant to delegated authority Delegated authority is an authority obtained from another that has authority since the authority does not naturally exist. Typically this is used in a government context where an organization that is created by a legitimate government, such as a Board, City, Town or other , and to approval of the proposal by the appropriate state authorities. By order of the Board of Governors, effective May 30, 2002. (1.) Deposit and state ranking data are as of June 30, 2001. (2.) 12 U.S.C. [section] 2901 et seq. (3.) See Interagency in·ter·a·gen·cy adj. Involving or representing two or more agencies, especially government agencies. Questions and Answers Regarding Community Reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. , 66 Federal Register 36,620 and 36,639 (2001). (4.) Examiners noted that performance in the New York Metropolitan Area had the greatest weight on Bank's overall CRA rating because of the high concentration of deposits, lending, and population in that assessment area. The New York Metropolitan Area includes southern New York, western Connecticut, and northeastern New Jersey. Jersey City is part of the New York Metropolitan Area. (5.) One commenter, a Jersey City community group, inquired about Bank's past and future involvement in the Jersey City community and the extent of Bank's involvement in addressing local credit needs. Bank responded that even before its current decision to establish a branch, it had provided support to organizations committed to increasing the quality of life in Jersey City, primarily in the areas of affordable housing, economic development, and the provision of social services social services Noun, pl welfare services provided by local authorities or a state agency for people with particular social needs social services npl → servicios mpl sociales . Since 1996, Bank has provided grants totaling more than $500,000 to Jersey City organizations engaged in community development activities. Bank stated that it intends to continue to support community development activities in Jersey City in the future. (6.) During the examination period, community development loan commitments benefiting this assessment area totaled $693 million. (7.) Bank's level of community development investment in the assessment area totaled $750 million, with $433 million of additional unfunded investment commitments. Voting for this action: Chairman Greenspan, Vice Chairman Ferguson, and Governors Bies and Olson. Absent and not voting: Governor Gramlich. ROBERT DEV. FRIERSON Deputy Secretary of the Board |
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