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Board of Governors of the Federal Reserve System
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Board of Governors of the Federal Reserve System

Supervisory Policy and Guidance Topics

Securities

Banks invest in securities to promote earnings growth and liquidity. Investment securities provide liquidity because of their marketability. However, lightly traded or exotic securities (such as structured notes) may lose their marketability over time and become less liquid. Institutions must ensure that their investment and end-user activities are permissible and appropriate within established limitations and restrictions on bank holdings of these instruments. Institutions should also employ sound risk-management practices consistently across these varying product categories, regardless of their legal characteristics or nomenclature.
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Policy Letters

Securities Activities

SR 11-11/CA 11-5
Supervision of Savings and Loan Holding Companies (SLHCs)
SR 04-9
Revised Uniform Agreement on the Classification of Assets and Appraisal of Securities Held by Banks and Thrifts
SR 04-1
Interagency Policy on Banks/Thrifts Providing Financial Support to Funds Advised by the Banking Organization
SR 01-13 (SUP)
Supervisory guidance relating to a change to permissible securities activities of state member banks
SR 01-7 (SUP)
Revisions to Article 9 of the Uniform Commercial Code
SR 96-32 (SUP)
Regulatory Reporting Requirements for Debt and Equity Securities
SR 96-2 (SPE)
Overnight Hold-In-Custody Repurchase Transactions
SR 94-25 (FIS)
Interim Revision to the Supervisory Policy Statement on Securities Activities
SR 93-40 (FIS)
Department of the Treasury Interpretation Regarding Allocation of Securities to Customer Accounts in Hold-in-Custody Repurchase Transactions
SR 93-13 (FIS)
Violations of Federal Reserve Margin Regulations in Custodial Agency Accounts Resulting From "Free-Riding" Schemes
SR 90-19
Sale of Uninsured Debt Obligations and Securities Issued by Bank Holding Companies, Nonbank Affiliates, or State Member Banks on Retail Banking Premises
SR 90-12
Infrastructure Reviews for Banking Organizations Seeking Expanded Securities Underwriting and Dealing Powers

Regulation G

SR 98-5 (SPE)
Changes to the Board's Securities Credit Regulations (Regulations G and U)

SEC Matters & Brokerage Firm Operations

SR 95-46 (SPE)
Interpretation of Interagency Statement on Retail Sales of Nondeposit Investment Products
SR 94-34 (FIS)
Examination Procedures for Retail Sales of Nondeposit Investment Products
SR 94-11 (FIS)
Interagency Statement on Retail Sales of Nondeposit Investment Products

Government Securities Activities

SR 06-8
Reports of Examinations of Government Securities Activities
SR 94-5 (FIS)
Government Securities Act Amendments of 1993
SR 90-1
Examination of State Branches and Agencies of Foreign Banks for Compliance with Regulations Related to Government Securities Activities
 

Additional Resources

 

Manual References

  • Bank Holding Company Supervision Manual
    • Section 2126.1, "Investment Securities and End-User Derivatives Activities"
    • Section 2140.0, "Securities Lending"
    • Section 2150.0, "Repurchase Transactions"
    • Section 2187.0, "Violations of Federal Reserve Margin Regulations Resulting from Free-Riding Schemes"
    • Section 3240.0, "4(c)(8) – Underwriting and Dealing in U.S. Obligations, Municipal Securities, and Money Market Instruments"
  • Commercial Bank Examination Manual
    • Section 2020.1, "Investment Securities and End-User Activities"
    • Section 2030.1, "Bank Dealer Activities"
  • Trading and Capital Markets Activities Manual
    • Section 3000.1, "Investment Securities and End User Activities"
Last update: March 21, 2013