true or false If a bank establishes a financial holding com

true or false ?

If a bank establishes a \"financial holding company\" it can use that company to buy an insurance company, but, under rules established by the Federal Reserve, that insurance company can only sell new policies to depositors of the bank

Solution

True.

To be more specific, the new rules are to be set up and submitted to the respective authorities before selling the plans and this is because if anything worse happens, the previous policies might not be blamed and that is the reason why thge Federal reserve came up with such interesting rule. Therefore, the given statement is true.