BOARD OF GOVERNORS
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
DIVISION OF BANKING
SUPERVISION AND REGULATION
SR 93-40 (FIS)
July 13, 1993
TO THE OFFICER IN CHARGE OF SUPERVISION
AT EACH FEDERAL RESERVE BANK
SUBJECT: Department of the Treasury Interpretation Regarding Allocation of Securities to Customer Accounts in Hold-in-Custody Repurchase Transactions
The Bureau of Public Debt of the Department of the Treasury (the "Bureau") recently issued the attached interpretive letter concerning the required timing of the allocation of securities to customer accounts (repurchase agreement collateral) in hold-in-custody repurchase transactions. The Bureau has requested that all examiners conducting examinations of government securities broker, dealer, and/or custodial activities of financial institutions subject to Federal Reserve System supervision be advised about this matter. Accordingly, please see that the appropriate examination staff at your Reserve Bank receive a copy of this communication.
Even though the Bureau's interpretive letter is publicly available, it has asked that we send the interpretive letter to all banking organizations supervised by the Federal Reserve. To this end, we request that you send a copy of the attached Bureau letter to all state member banks and to the U.S. branches and agencies of foreign banks and Edge or Agreement corporations that you supervise in your District. A suggested letter is also attached.
Any questions concerning the attached Bureau letter may be directed to Ms. Susan Meyers of the Division's Securities Regulation Section at (202) 452-2781.
Stephen C. Schemering
ATTACHMENT: Suggested draft letter electronically transmitted below
OTHER ATTACHMENT MAY BE OBTAINED FROM FEDERAL RESERVE BANK
The Bureau of Public Debt of the Department of the Treasury (the "Bureau") recently issued the attached interpretive letter concerning the required timing of the allocation of securities to customer accounts (repurchase agreement collateral) in hold-in-custody repurchase transactions.
At the request of the Bureau, the Federal Reserve is forwarding that agency's interpretive letter to you. In the event you have any questions regarding this matter, please contact the Bureau directly at (202) 219-3632.
SR letters | 1993