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Congress had recognized that the repatriation provisions had
discouraged investments that would be favorable to the U.S.
balance of payments. Congress addressed that problem by adding
two additional exceptions to the definition of U.S. property:
subparagraphs (F) (certain stock or debt investments) and
(G) (certain oil drilling rigs). The subparagraph (F) exception
is limited to stock or debt of unrelated domestic corporations.
The Committee on Finance cautioned that it did not wish the law
to be changed to permit the U.S. shareholders of a controlled
foreign corporation to use the earnings of the corporation
without payment of tax. H. Rept. 94-658, supra. S. Rept. 94-
938, supra. Congress did not amend the section 956 deposit
exception to except only deposits with unrelated persons. That
is understandable, however, since BHCA prohibited nonbank holding
11(...continued)
Bank Holding Company Act Amendments of 1970 (BHCA 1970
Amendments), Pub. L. 91-607, 84 Stat. 1760, a bank holding
company was defined as a company having control over two or more
banks. The BHCA would, thus, not have impeded a nonbanking
company, such as petitioner, from owning a single bank.
Nevertheless, petitioner has failed to show us that, in 1962
(when subpart F was enacted), that possibility was any more than
theoretical. See S. Rept. 91-1084 (1970), 1970 U.S.C.C.A.N.,
p. 5519, 5522 (accompanying H.R. 6778, which was enacted as BHCA
1970 Amendments, and describing "the theoretical freedom of a
one-bank holding company to engage in any business, or acquire
anything it desires (subject to antitrust laws)"; Conf. Rept. 91-
1747 (1970), 1970 U.S.C.C.A.N., p. 5561, 5562 (also accompanying
H.R. 6778 and stating that, “[i]n the late 1960's”, nonbank
corporations began acquiring one bank, “thus mixing banking and
nonbanking in complete contravention of the purpose of both
Federal banking laws going back to the 1930's and the Bank
Holding Company Act of 1956.”)
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