For immediate release

The Federal Reserve Board today announced its approval of the application of CAB Holding, LLC, Wilmington, Delaware, to become a bank holding company by acquiring 100 percent of the voting shares of The Chinese American Bank, New York, New York. Attached is the Board's Order relating to this action.

CAB Holding, LLC Wilmington, Delaware Order Approving Formation of a Bank Holding Company

CAB Holding LLC ("CAB") has requested the Board's approval under section 3(a)(1) of the Bank Holding Company Act ("BHC Act") (12 U.S.C. § 1842(a)(1)) to become a bank holding company by acquiring all the voting shares of The Chinese American Bank, New York, New York ("Bank"). Notice of the application, affording interested persons an opportunity to submit comments, has been published (63 Federal Register 12,813 (1998)). The time for filing comments has expired, and the Board has considered the application and all comments received in light of the factors set forth in section 3 of the BHC Act. CAB is a newly formed nonoperating corporation that would become a bank holding company by the acquisition of Bank. Bank is the 122d largest commercial banking organization in New York, with deposits of $188 million, representing less than 1 percent of total deposits in commercial banking organizations in the state.1 Based on all the facts of record, the Board has concluded that consummation of the proposal would not have a significantly adverse effect on competition or on the concentration of banking resources in any relevant banking market and that competitive considerations are consistent with approval. Based on all the facts of record, including confidential supervisory information and other information concerning Bank and the sole shareholder of CAB, the Board concludes that considerations relating to the financial and managerial resources and future prospects of CAB and Bank, the convenience and needs of the communities to be served, and other supervisory factors that the Board is required to consider under section 3 of the BHC Act are consistent with approval of the proposal. In addition, the Board has received commitments that ensure the Board's access to information on the operations and activities of CAB and its affiliates, in order to permit the Board to determine and enforce compliance with the BHC Act and other federal banking laws. Based on the foregoing and all the facts of record, the Board has determined that the application should be, and hereby is, approved. The Board's approval is expressly conditioned on compliance with all the commitments made by CAB, Bank, and CAB's sole shareholder in connection with the application. For purposes of this action, the commitments and conditions relied on by the Board in reaching this decision are deemed to be conditions imposed in writing by the Board in connection with its findings and decision and, as such, may be enforced in proceedings under applicable law. The proposal shall not be consummated before the fifteenth calendar day after the effective date of this order, or later than three months after the effective date of this order, unless such period is extended for good cause by the.Board or by the Federal Reserve Bank of New York, acting pursuant to delegated authority.

By order of the Board of Governors,2 effective November 30, 1998. (signed) Robert deV. Frierson Robert deV. Frierson Associate Secretary of the Board

Footnotes 1 Deposit and market data are as of June 30, 1997. 2 Voting for this action: Chairman Greenspan, Vice Chair Rivlin, and Governors Kelley, Meyer, Ferguson, and Gramlich.

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1998 Orders on banking applications