For immediate release

The Federal Reserve Board today issued an interpretation of its margin regulations (Regulations G, T, and U) in response to the enactment of the National Securities Markets Improvement Act of 1996 (the Markets Improvement Act) and requested comment on amendments to its margin regulations to implement the statutory amendments to the Securities Exchange Act of 1934 (the Exchange Act). The Board's interpretation is effective immediately. Comment on the amendments is requested by December 31, 1996. Under the Markets Improvement Act, the Board no longer has the authority to regulate certain loans to registered broker-dealers unless it finds that such rules are necessary or appropriate in the public interest or for the protection of investors. The interpretation makes clear that the Board has not made such a finding and that provisions in its margin regulations for which the Board no longer has general authority are without effect. The interpretation also reflects the statutory repeal of section 8(a) of the Exchange Act, as provided by the Markets Improvement Act. Comment is solicited on amendments to the Board's margin regulations to implement the statutory amendments and further the policies behind their adoption. The Board's notices are attached.

Summary only Summary and proposed regulation (21 KB PDF) Interpretation (14 KB PDF)

1996 Banking and consumer regulatory policy