For immediate release

The Federal Reserve Board today requested comment on removing a majority of the prudential limitations or firewalls that currently apply to bank holding companies engaged in securities underwriting and dealing activities through section 20 subsidiaries. The Board is proposing to retain as operating standards for section 20 subsidiaries a limited number of restrictions adapted from the current firewalls. Comment is requested by March 10, 1997. The Board also announced that it is eliminating immediately a firewall requiring bank holding companies to seek approval prior to providing funds to their section 20 companies. The Board's notice is attached.

Summary only | Summary and proposed conditions (112 KB PDF)

1997 Banking and consumer regulatory policy