Commercial bank ownership of corporate stock is prohibited by regulators in

Question

Quizplus · Accepted Answer

In the United States, commercial banks are prohibited from owning more than 5% of the voting stock of any corporation, as stated in the Bank Holding Company Act of 1956. This law was put in place to prevent conflicts of interest and ensure that banks focus on their primary role of accepting deposits and making loans. Therefore, Choice A is the correct choice.

Commercial Bank Ownership of Corporate Stock Is Prohibited by Regulators