A subsidiary of First National Bank can legally participate in all but one of the following businesses. In which business may the subsidiary NOT legally participate?
A subsidiary of First National Bank can legally participate in all but one of the following businesses. In which business may the subsidiary NOT legally participate?
A subsidiary of First National Bank can legally participate in selling securities, selling insurance, and providing financial planning advice because these activities are closely related to banking and financial services. However, developing real estate is typically not permissible for a bank's subsidiary because it falls outside the scope of financial services and carries additional risks that banking regulations aim to avoid.
Banks and their subsidiaries are subject to various regulations that define what activities they can engage in. Generally, national banks and their subsidiaries can participate in financial and closely related activities