For immediate release

The Federal Reserve Board today requested public comment on an interpretation and two proposed rules exempting certain transactions between an insured depository institution and its affiliates under section 23A of the Federal Reserve Act. Comment is requested by July 21, 1998. The proposed interpretation would expand the ability of an insured depository institution to purchase securities from its section 20 affiliate outside the quantitative limits of section 23A if the assets are actively traded at a price that can be verified from independent and reliable resources. The proposed rules would exempt from the quantitative and collateral requirements of section 23A certain loans made by an insured depository institution to customers who use the proceeds to purchase securities through or from the institution's registered broker-dealer affiliate. The Board's notices are attached.

Summary only | Proposed rule on purchases of securities (22 KB PDF) Summary only | Proposed exemptions for certain extensions of credit (27 KB PDF)

1998 Banking and consumer regulatory policy