Another problem with the shadow control system is the shadow control system. Many have criticized banking supervisors for not being tough enough in the banking sector after the financial crisis. This criticism may not be valid. How can congresses, scientists and others judge whether there is a cognitive record (a well-established term in the economics to describe when the regulator is starting to think like the regulated sector) or whether banking supervisors are too hard or too easy for the banks that regulate and monitor them when what is known publicly is just the tip of the iceberg? Public debate and the stock market are distorted if they know only part of the story. After two years from May 9, 1956, no certificate proving the shares of a bank holding company may contain a statement purporting to represent shares of another company, with the exception of a bank or a bank holding company, nor the ownership, sale or transfer of shares of a bank holding company may be subordinated in any way to the ownership of the , to sell or transfer shares of another company other than a bank or bank holding company. No later than 45 days after receiving a notification referred to in paragraph 1 (or an additional delay that the Board of Directors authorizes), the holding company implements an agreement with the Board of Directors to comply with the requirements of a holding company referred to in paragraph 1(1). The room can extend the 60-day period at point i by 30 days. The Board of Directors may extend the deadline with the agreement of the bank holding company, which submits the notice in accordance with this subsection. The federal reserve`s power to limit the activity of a financial holding company.
To be considered a holding financial holding company (HCF), the holding company and all its insured subsidiaries of a deposit company must be both « well managed » and « well capitalized ». The Federal Reserve may impose restrictions on the behaviour and activities of an HCF that does not meet either of the two conditions and, as a general rule, the HCF is required to enter into an agreement in camera to comply with these restrictions. (Note: this agreement is covered in point 12.C 1843 (m) and is generally referred to as 4 (m) of agreements.) Because the Federal Reserve considers mismanaged treatment to be confidential surveillance information, the presence and volume of restrictions of 4 (m) is confidential. A study that examined securities data from 60 FhCs between 2005 and 2017 found that almost all CPEs divide that they are well capitalized, but many do not reveal whether they are well managed. The public does not know the conditions of activity or investment that exist through this mechanism and how long it might take.