Aug. 26, 1996 - Bank Holding Companies. Docket Numbers R-0841, R-0701, and R-0932 Federal Reserve Board.
August 26, 1996 (Revised & Resubmitted by Facsimile on August 28, 1996) Mr. William Wiles Secretary Federal Reserve Board 20th & Constitution Ave., N.W. Washington, D.C. 20551 Dear Mr. Wiles: I am writing with respect to three proposals (Docket Numbers R-0841, R-0701, and R-0932) recently announced by the Federal Reserve Board. The Board, in a July 31, 1996 press release stated: "The Federal Reserve Board today requested comment on three proposals to modify the conditions under which section 20 subsidiaries of bank holding companies may underwrite and deal in securities. The first proposal would increase the amount of revenue that a section 20 subsidiary may derive from underwriting and dealing in securities from 10 percent to 25 percent of its total revenue. Comment on this proposal is requested by September 30, 1996. The second proposal would amend or eliminate three of the prudential limitations, or fire walls, imposed on the operations of the section 20 subsidiaries: