Joint Interim Rule and Request for Public Comment on Alternative to Debt Requirements for Financial

Federal Reserve Bankll★Kof DallasDALLAS, TEXAS 75265-5906April 6, 2000Notice 2000-23TO: The Chief Executive Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTJoint Interim Rule andRequest for Public Comment on Alternative toDebt Requirement for Financial SubsidiariesDETAILSThe Gramm-Leach-Bliley Act (GLBA) permits a national bank or state member bankthat is among the second 50 largest insured banks to own or control a financial subsidiary only ifthe bank meets either of the following requirements:• the eligible debt requirement in section 121 of the GLBA or• alternative criteria established jointly by the Board of Governors of the FederalReserve System and the Department of the Treasury.In an interim rule, the Board and the Treasury have established the alternative criteria and pro-vided that a bank meets the criteria if it has a current long-term issuer credit rating from a nation-ally recognized statistical rating organization that is within the three highest investment graderating categories used by the organization. The interim rule became effective March 14, 2000.Comments on the interim rule must be received by May 15, 2000. Please addresscomments to Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System,20th Street and Constitution Avenue, N.W., Washington, DC 20551. Also, you may mail com-ments electronically to regs.comments@federalreserve.gov. All ...