Finance companies are federally regulated when they
A)are independently owned.
B)are a subsidiary of a savings institution.
C)act as bank holding companies, or are subsidiaries of bank holding companies.
D)do business in more than one location within a particular state.

Question

Quizplus · Accepted Answer

Finance companies that act as bank holding companies, or are subsidiaries of bank holding companies, are federally regulated under the Bank Holding Company Act. This act gives the Federal Reserve regulatory authority over these companies to ensure their safety and soundness. Independently owned finance companies may be subject to state regulation, but not necessarily federal regulation. Being a subsidiary of a savings institution or doing business in more than one location within a particular state does not automatically make a finance company federally regulated.

Finance Companies Are Federally Regulated When They