By Craig Landrum ( May 15, 2018, 11:54 AM EDT) -- There has been much discussion on the continued viability of the bank holding company model. The primary reason for a national bank or state-chartered nonmember bank to discard a holding company is to avoid a second federal regulator, thus subjecting merger applications to dual applications at the bank and holding company level, absent a waiver by the Federal Reserve System and, in some cases, punishment at the holding company level for transgressions of the bank. Secondary reasons cited are the cost savings by eliminating (1) filing fees with, and scrutiny by, the U.S. Securities and Exchange Commission upon issuance of new securities and (2) simplification of accounting. On the other hand, holding companies serve as a source of strength and capital for a subsidiary bank, provide an additional source of liquidity for shareholders through a market for holding company stock, and provide diverse sources of income from nonbanking activities....