The Edge corporations enjoy general banking powers; to handle all forms of commercial instruments; to deal in securities, including those of the United States and of any state; to accept bills drawn upon them, subject to regulations and limitations imposed by the Federal Reserve Board; to issue letters of credit; to deal in coin, bullion, and exchange; to borrow and lend money; to issue debentures, bonds, and promissory notes, subject to conditions and restrictions imposed by the board, to an amount not exceeding at any one time ten times the capital and surplus of the issuing corporation; to receive deposits outside the United States and such deposits inside the United States as may be incidental to its foreign operations (against which domestic deposits it must carry reserves prescribed by the Federal Reserve Board amounting to not less than 10 per cent); to do all things deemed by the board as incidental to the transaction of its business of banking and finance in foreign countries; to establish branches and agencies abroad, in places approved and under regulations prescribed by the board.
An Edge corporation may purchase and hold stock in any other Edge corporation or in a corporation organized under the laws of any foreign country or of any state or dependency of the United States, on condition that such corporation does not engage in merchandise business inside the United States except to the extent that the board may decide is incidental to its foreign business. It may not invest in any one corporation in excess of 10 per cent (15 per cent in case of banking corporations) of its own capital and surplus, without the approval of the board. Nor may it own stocks in any other corporation, organized under the Edge Act or state law, which is in substantial competition with it, or which holds stock in corporations which are in substantial competition with the purchasing corporation. Edge corporations may not become members of the federal reserve system, and they are prohibited from carrying on any part of their business inside the United States, except as the board deems it incidental to the foreign business. They are also prohibited from merchandising in commodities and from directly or indirectly controlling or fixing prices of the merchandise, a prohibition conforming to the American policy of separation of trading and banking.