WHY DO FOREIGN BANKS OWN 25% CONTROLLING INTEREST IN U.S. BANKS?
U.S. banks are more than 25% owned by foreign banks. The 25% threshold is defined to be a controlling interest by the U.S. bank regulatory agencies.
RBC CENTURA BK/ROYAL BK HOLD: 99% RALEIGH, NCDEUTSCHE BK TC AMERICAS/TAUNUS CORP 100%: NY, NY
http://www.federalreserve.gov/releases/lbr/current/default.htm
FOREIGN BANKS IN THEFEDERAL RESERVE SYSTEM § 214.5U.S. Code of Federal Regulations:§ 214.5 Accounts with foreign banks.(a) Any Federal Reserve Bank, with the consent of the Board, may open and maintain accounts payable in foreign currencies with such foreign banks asmay be designated by the Board.(b) Notwithstanding other provisionsof this part, any officer or other representativesof the Federal Reserve Bank which maintains an account with a foreign bank may conduct such negotiations and enter into such agreements,contracts, or understandings with such foreign bank as may be authorized or directed by the FederalOpen Market Committee in order to effectuatethe conduct of open market transactions http://edocket.access.gpo.gov/cfr_2004/janqtr/pdf/12cfr214.4.pdf
