The Limited, Inc. - Page 22




                                       - 22 -                                         
               B.  Deposits With Persons Carrying on the Banking Business             
               In arguing whether the MFE N.V. CDs constitute section 956             
          deposits, the parties expend considerable effort addressing                 
          whether WFNNB is a bank.  Respondent would have us define the               
          term “bank” as it is defined in section 581, and argues that                
          WFNNB cannot qualify under that definition since taking deposits            
          from unrelated parties does not constitute a substantial part of            
          its business.  Petitioner’s argument is somewhat more elaborate.            
          Petitioner argues that, since banks are in the business of                  
          banking, and WFNNB is a bank, WFNNB must be in the business of              
          banking.  Petitioner supports its minor premise (WFNNB is a bank)           
          by showing that WFNNB was organized to carry on the business of             
          banking, is authorized by the Comptroller of the Currency to do             
          business as a national banking association, and derives its                 
          authority from, and is governed by, the National Bank Act                   
          (currently codified in Title 12 U.S.C.).  Petitioner points out             
          that WFNNB may not legally engage in any activity but the                   
          business of banking.  Petitioner concludes:  “The language                  
          enacted by Congress is unambiguous.  WFNNB is a bank.  It is                
          therefore a priori engaged in the banking business.  As a matter            
          of law, it can do nothing else.”                                            
               We do not accept either party’s argument that we can                   
          determine whether WFNNB is in the banking business simply by                
          determining whether WFNNB is a bank.  The question is not whether           






Page:  Previous  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  31  Next

Last modified: May 25, 2011