Board of Governors of the Federal Reserve System |
U.S. Department of the Treasury
FEDERAL RESERVE AND TREASURY DEPARTMENT ANNOUNCE
FINAL RULE ON MERCHANT BANKING ACTIVITIES
The Board of Governors of the Federal Reserve System and the Secretary of the Treasury today approved a joint final rule governing the merchant banking activities of financial holding companies.
The rule, effective February 15, 2001, implements provisions of the Gramm-Leach-Bliley Act. The Board and Secretary believe it permits a "two-way street" between securities firms and banking organizations while, at the same time, giving effect to the statutory limitations and framework adopted by Congress to help maintain the separation of banking and commerce and ensure the safety and soundness of depository institutions.
The final rule incorporates a number of amendments in response to public comments on the interim rule issued March 17, 2000. These changes include:
2001 Banking and consumer regulatory policy