Magazine article American Banker

Drefus May Open Trust Company, New York Says

Magazine article American Banker

Drefus May Open Trust Company, New York Says

Article excerpt

NEW YORK -- Dreyfus Corp. has received approval to open a state-chartered trust company in Garden City, N.Y., a year and a half after the Comptroller of the Currency had approved Dreyfus' application for a national charter for a trust company.

The New York State Banking Board last week approved an organization certificate of the Dreyfus Trust Co., a nonbank bank that will engage in the trust business and possibly in commercial lending, according to its proposal to the board. It said the bank would not accept deposits except those taken in connection with the trust business.

A Dreyfus spokesman said Dreyfus Trust would be "a pure trust company" with "no involvement in any deposit-related activities." He also said Dreyfus won't be ready to open the bank until " quite a while down the road."

Dreyfus received approval to establish a trust company in New York from the Comptroller of the Currency in February 1983. It never acted on that approval due to concern that the Federal Reserve Board would take action against that bank.

Also in February 1983, the Comptroller granted a national bank charter to J.&W. Seligman Trust Co. as a subsidiary of J.&W. Seligman & Co., a mutual fund company.

Comptroller C.T. Conover said then that Seligman's ownership of the bank was legal because the bank's parent and subsidiaries were not "engaged principally" in securities activities prohibited to bank affiliates under the Glass-Steagall Act. …

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