The Douglas amendment to the Bank Holding Company was passed to address a potential loophole to interstate banking posed by

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The Douglas amendment was passed in 1956 to address the potential loophole of multibank holding companies in interstate banking. These holding companies could own multiple banks in different states, which raised concerns about their ability to control banking across state lines. The amendment required these holding companies to register with the Federal Reserve and meet certain regulatory requirements.

The Douglas Amendment to the Bank Holding Company Was Passed