TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK
The Bureau of Public Debt of the Department of the
Treasury (the "Bureau") recently issued the attached interpretive
letter concerning the required timing of the allocation of
securities to customer accounts (repurchase agreement collateral)
in hold-in-custody repurchase transactions. The Bureau has
requested that all examiners conducting examinations of
government securities broker, dealer, and/or custodial activities
of financial institutions subject to Federal Reserve System
supervision be advised about this matter. Accordingly, please
see that the appropriate examination staff at your Reserve Bank
receive a copy of this communication.
Even though the Bureau's interpretive letter is
publicly available, it has asked that we send the interpretive
letter to all banking organizations supervised by the Federal
Reserve. To this end, we request that you send a copy of the
attached Bureau letter to all state member banks and to the U.S.
branches and agencies of foreign banks and Edge or Agreement
corporations that you supervise in your District. A suggested
letter is also attached.
Any questions concerning the attached Bureau letter may
be directed to Ms. Susan Meyers of the Division's Securities
Regulation Section at (202) 452-2781.
Deputy Director
ATTACHMENT: Suggested draft letter electronically transmitted below
OTHER ATTACHMENT MAY BE OBTAINED FROM FEDERAL RESERVE BANK
Dear _________________:
The Bureau of Public Debt of the Department of the
Treasury (the "Bureau") recently issued the attached interpretive
letter concerning the required timing of the allocation of
securities to customer accounts (repurchase agreement collateral)
in hold-in-custody repurchase transactions.
At the request of the Bureau, the Federal Reserve is
forwarding that agency's interpretive letter to you. In the
event you have any questions regarding this matter, please
contact the Bureau directly at (202) 219-3632.
Attachment
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