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Nonbank Banks: A Bank Is Always A Bank Unless Of Course It Is A Nonbank Bank: Board Of Governors V. Dimension Financial Corporation, Joseph Reece

Akron Law Review

Board of Governors v. Dimension Financial Corporation is of major significance because it is the first Supreme Court case addressing the issue of whether "nonbank banks" should be regulated under the Bank Holding Company Act of 1956 (BHCA). In rendering the Dimension Financial decision, the Supreme Court may have taken a major step in diffusing the controversy between financial institutions, the Federal Reserve Board, and Congress by determining when a bank is a "bank" for purposes of regulation under the BHCA.

In analyzing the issue before it, the Dimension Court reviewed applicable statutes, relevant case law, and legislative history and …