Bank Authority To Invest In The Capital Stock Of A Bankers' Bank
Under Mass. Gen. Laws chapter 167F § 2(4), Massachusetts-chartered savings banks, co-operative banks and trust companies may invest in the capital stock of any bank, national banking association, federal savings bank, federal or state savings and loan association or bank holding company. This authority was extended to any such corporations located in any other New England state under Mass. Gen. Laws 167E § 14(C)(7). Accordingly, it is the position of the Division that Massachusetts-chartered savings banks, co-operative banks, and trust companies may invest in the capital stock of a banker's bank which will not conduct business with the public, but will offer a variety of correspondent banking services to investor and client banks. The determination whether to make such an investment remains the responsibility of each state-chartered bank and its management. The Division's analysis does not constitute an approval or recommendation to invest in any particular banker's bank.