For immediate release

The Federal Reserve Board on Monday announced the approval of a final rule relating to financial subsidiaries of state member banks. The Gramm-Leach-Bliley Act and rule permit qualifying state member banks to establish financial subsidiaries and thereby engage in certain activities that have been determined to be financial in nature or incidental to financial activities. The final rule is substantially similar to the interim rule that the Board adopted last year and issued for comment. The rule continues to allow qualifying state member banks to use a streamlined notice procedure to establish a financial subsidiary. The final rule will become effective 30 days after publication in the Federal Register. The Board's notice is attached. Attachment (49 KB PDF)

2001 Banking and consumer regulatory policy