Seal of the Board of Governors of the Federal Reserve System
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM

WASHINGTON, D. C.  20551

DIVISION OF BANKING
SUPERVISION AND REGULATION


SR 92-40 (IB)
November 3, 1992

TO THE OFFICER IN CHARGE OF SUPERVISION
          AT EACH FEDERAL RESERVE BANK


SUBJECT: Call Report Treatment for Debt-for-Equity and Debt-for-Debt Exchanges

                         Enclosed is an interagency statement by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation that was prepared to clarify the agencies' policy regarding the application of the Allocated Transfer Risk Reserve (ATRR) requirement to exposures obtained through debt-for-equity or debt-for-debt conversions.  Please forward this interagency statement to the appropriate officer of each state member bank and each banking Edge Corporation in your district that has exposures subject to ATRR requirements.

                         Questions concerning this interagency statement should be directed to Lisa DeFerrari on extension 3893 or to me on extension 2722.

William A. Ryback
Associate Director

ENCLOSURE CAN BE OBTAINED FROM FEDERAL RESERVE BANK


SR letters | 1992