21-101 The Douglas amendment to the Bank Holding Company was passed to address a potential loophole to interstate banking posed by

Question

Quizplus · Accepted Answer

The Douglas amendment was passed in 1956 to address the potential loophole to interstate banking posed by multibank holding companies. The amendment prohibited banks from acquiring another bank if the resulting organization would control more than 10% of the total amount of deposits held by insured banks in the United States. This prevented multibank holding companies from gaining too much power and control in the banking industry.

21-101 the Douglas Amendment to the Bank Holding Company Was