The department was asked whether section 235(26)(c) of the Banking Law proscribed savings banks and savings and loan associations from investing in common stock of bank holding companies.

The department responded that the purpose of section 235(26)(c) is to prevent savings banks from investing in institutions with which they compete and that this legislative intent would be thwarted if savings institutions were allowed to invest in bank holding companies. Accordingly, the department expressed its view that such investments were improper.

DATED: March 12, 1969