Edge Act - Edge Act Corporation (EAC)

Edge Act Corporation (EAC)

An Edge Act Corporation is a subsidiary of a Bank or Bank Holding Company or Financial Holding Company, that is chartered by the Federal Reserve under Section 25A of the Federal Reserve Act, as amended in 1916 and 1919, to engage in foreign banking activities. The Federal Reserve Board authorizes U.S. and foreign banking and financial organizations to establish Edge Act Corporations. It also regulates and examines the foreign activities of Edge Act Corporations and their subsidiaries. Foreign banks operating in the U.S. are permitted to organize and own an Edge Act Corporation. An Edge Act Corporation is useful because, among other things, it separates the risks of domestic operations from those of international. Prior to 1919, U.S. institutions were not permitted to own foreign banks. An EAC can own branches in the U.S., but may only conduct transactions directly linked to international trade.

Read more about this topic:  Edge Act

Famous quotes containing the words edge, act and/or corporation:

    The stroke of the whip maketh marks in the flesh: but the stroke of the tongue breaketh the bones. Many have fallen by the edge of the sword: but not so many as have fallen by the tongue.
    Ecclesiasticus Apocrypha. Ecclesiasticus, 28:17-8.

    Fatigue dulls the pain, but awakes enticing thoughts of death. So! that is the way in which you are tempted to overcome your loneliness—by making the ultimate escape from life..—No! It may be that death is to be your ultimate gift to life: it must not be an act of treachery against it.
    Dag Hammarskjöld (1905–1961)

    The nearest the modern general or admiral comes to a small-arms encounter of any sort is at a duck hunt in the company of corporation executives at the retreat of Continental Motors, Inc.
    C. Wright Mills (1916–1962)