|For immediate release|
The Federal Reserve Board today approved an interim rule that would apply to financial holding companies authorized under the Gramm-Leach-Bliley Act that have securities affiliates, 2 of 8 operating standards that currently apply to bank holding companies that control so-called section 20 affiliates. These two prudential provisions (1) require that intra-day extensions of credit to a securities firm from an affiliated bank or thrift or U.S. branch or agency of a foreign bank be on market terms consistent with section 23B of the Federal Reserve Act, and (2) apply the limitations of sections 23A and 23B of the Federal Reserve Act to certain covered transactions between a U.S. branch or agency of a foreign bank and a U.S. securities affiliate.
This interim rule will become effective on March 11, 2000. The Board requests comment on the interim rule by May 12, 2000. The Board will revise the interim rule as appropriate after reviewing comments.
All 8 of the operating standards, as well as the Board's current 25 percent revenue test, will continue to apply to bank holding companies that control section 20 subsidiaries pursuant to section 4(c)(8) of the Bank Holding Company Act.
The Board's notice is attached.
2000 Banking and consumer regulatory policy