How could insurance companies get around the restrictive provisions imposed by the bank holding company act of 1956?
A)Through the organizational mechanism of establishing nonbank bank subsidiaries.
B)By opening federally chartered thrifts.
C)By offering credit-related life, accident, health, or unemployment loans.
D)By buying a full-service bank and then divesting its demand deposits or commercial loans.
E)Answers A and D only.

Question

Quizplus · Accepted Answer

Insurance companies could circumvent the restrictions by establishing nonbank bank subsidiaries (A) and by buying a full-service bank and then divesting its demand deposits or commercial loans (D).

How Could Insurance Companies Get Around the Restrictive Provisions Imposed