Federal Reserve Board

FEDERAL RESERVE SYSTEM

12 CFR Part 225

[Regulation Y; Docket No. R-1010]

Bank Holding Companies and Change in Bank Control; Clarification to the Board's Section 20 Orders

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Final Conditions to Board Orders.

SUMMARY: The Board is clarifying one of the operating standards established in its decisions under the Bank Holding Company Act and section 20 of the Glass-Steagall Act permitting a nonbank subsidiary of a bank holding company to underwrite and deal in securities. The Board is modifying the customer disclosure operating standard to make clear that a section 20 subsidiary operating off bank premises may satisfy the standard by providing a one-time disclosure in writing when an investment account is opened.

EFFECTIVE DATE: The clarification is effective March 27, 1998.

FOR FURTHER INFORMATION CONTACT: Thomas Corsi, Senior Counsel (202) 452-3275, Legal Division; Michael J. Schoenfeld, Senior Supervisory Financial Analyst (202) 452-2781, Division of Banking Supervision and Regulation; for the hearing impaired only, Telecommunications Device for the Deaf (TDD), Diane Jenkins (202) 452-3544.

Summary and final conditions (20 KB PDF)

1998 Banking and consumer regulatory policy


Home | News and events
Accessibility
Last update: March 24, 1998, 4:00 PM