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ARTICLE · 31 AUGUST 2005

FRB Issues 23A Exemption for Bank Securities Borrowing from Affiliates

Goodwin Procter LLP
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Discussed in this article: FRB Issues 23A Exemption for Bank Securities Borrowing from Affiliates; Third Circuit Rules on Section 8(b) of RESPA; Utah’s 529 Plan Settles SEC Administrative Proceeding; Federal Housing Finance Board Issues Advisory to Federal Home Loan Banks Concerning Anti-Predatory Lending Policies and OCC Issues Interpretive Letter Concerning Leasing of Excess Space in Bank Premises.

United StatesFinance and Banking

Contents:

  1. FRB Issues 23A Exemption for Bank Securities Borrowing from Affiliates

  2. Third Circuit Rules on Section 8(b) of RESPA

  3. Utah’s 529 Plan Settles SEC Administrative Proceeding

  4. Federal Housing Finance Board Issues Advisory to Federal Home Loan Banks Concerning Anti-Predatory Lending Policies

  5. OCC Issues Interpretive Letter Concerning Leasing of Excess Space in Bank Premises

The FRB issued an exemption from Section 23A of the Federal Reserve Act and Regulation W thereunder for transactions in which a bank borrows securities from broker-dealer affiliates ("B-Ds" and each a "B-D"). The bank borrowed the securities as a hedge for its equity derivatives transactions with customers. The bank generally (although not exclusively) posted cash or treasuries as collateral for the loan, in the amount of 102%.

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