Interim Rule and Request for Public Comment on Market Risk Rules - District Notice 00-78 - Dallas Fed

Federal Reserve Bankll★Kof DallasDALLAS, TEXASDecember 15, 2000 75265-5906Notice 00-78TO: The Chief Executive Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTInterim Rule and Request forPublic Comment on Market Risk RulesDETAILSThe Board of Governors of the Federal Reserve System, the Office of the Comptroller of theCurrency, and the Federal Deposit Insurance Corporation have issued an interim rule and requested publiccomment on an amendment to their market risk rules.The amendment revises the capital treatment for cash collateral that is posted in connectionwith certain securities borrowing transactions. The interim rule, which becomes effective January 4, 2001,•m ore appropriately aligns the capital requirements for these transactions with the riskinvolved and• provides a capital treatment for U.S. banking organizations that is more in line with thecapital treatment applied to their domestic and foreign competitors.The Board must receive comments by January 19, 2001. Please address comments to JenniferJ. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, N.W.,Washington, DC 20551. Also, you may mail comments electronically toregs.comments@federalreserve.gov. All comments should refer to Docket No. R-1087.AT TACHMENTA copy of the Board’s notice as it appears on pages 75856–59, Vol. 65, No. 234 of theFederal Register dated December 5, 2000, is ...