The Federal Reserve Board proposed to tighten...

The Federal Reserve Board proposed to tighten restrictions on the ability of state-chartered banks to acquire non-banking subsidiaries. The rule, proposed by a 6-1 vote, would require that the approximately 7,000 state-chartered banks owned by holding companies get the Fed’s permission before establishing real estate, insurance and other non-banking units. Proponents say some states have moved aggressively to authorize new activities without regard for bank safety and soundness.