Operation of IRA Collective Investment Trust Is a Permissible Commercial Banking Activity Under the Glass-Steagall Act: Investment Company Institute v. Conover, 790 F.2d 925 (D.C. Cir.), cert. denied, 107 S.Ct. 421 (1986)

Date

1987

Journal Title

Journal ISSN

Volume Title

Publisher

Texas Tech Law Review

Abstract

The Comptroller of the Currency, after a detailed analysis of the legality of a collective investment trust for IRA assets, approved the creation and operation of the trust by Citibank. Attacked on the basis of being a mutual fund, the District of Columbia Circuit Court of Appeals upheld the Comptroller's ruling as a reasonable interpretation of the Glass-Steagall Act. Though similar to a mutual fund, the CIT was established for fiduciary purposes and, therefore, it did not fall within the category of activities that Congress intended to remove from the domain of commercial banking. This stamp of approval by the court will likely encourage banks to develop innovative products and services to meet the full range of their clients' financial needs.

Description

Keywords

Comptroller of the Currency, IRA assets, Citibank, Glass-Steagall Act, Collective investment trust, CIT, Individual Retirement Account, IRA, Commercial banking activity, Investment Company Institute v. Conover

Citation

18 Tex. Tech L. Rev. 1043