US

Developments in the Regulation of Tying Arrangements

Charles M. Horn and Christine Poulon, Mayer, Brown, Rowe & Maw LLP,Washington, and Andrew Karp, Mayer, Brown, Rowe & Maw LLP, Chicago

In the last week of August 2003, the Federal Reserve Board (Federal Reserve) issued a proposed interpretation of the anti-tying restrictions of Section 106 of the Bank Holding Company Act of 1970 (Section 106), and quickly followed with a Combined Order to Cease and Desist and Order of Assessment of a Civil Money Penalty Issued Upon Consent in resolution of allegations of unlawful tying activities at the New York branch of a foreign bank (Consent Order).