Joint Interim Rule and Request for Public Comment Regarding Merchant Banking Investments - District

Federal Reserve Bankll★Kof DallasDALLAS, TEXASMay 5, 2000 75265-5906Notice 2000-28TO: The Chief Executive Officer of eachfinancial institution and others concernedin the Eleventh Federal Reserve DistrictSUBJECTJoint Interim Rule andRequest for Public Comment RegardingMerchant Banking InvestmentsDETAILSThe Board of Governors of the Federal Reserve System and the Secretary of theTreasury have jointly adopted on an interim basis a rule that will govern merchant bankinginvestments made by financial holding companies. The rule, which became effective March 17,2000, implements provisions of the recently enacted Gramm-Leach-Bliley Act that permitfinancial holding companies to make investments as part of a bona fide securities underwriting ormerchant or investment banking activity.Also, the Board and the Treasury have requested public comment on the interim rule.Comments must be received by May 22, 2000. Please address comments to Jennifer J. Johnson,Secretary, Board of Governors of the Federal Reserve System, 20th Street and ConstitutionAvenue, N.W., Washington, DC 20551. Also, you may mail comments electronically toregs.comments@federalreserve.gov. All comments should refer to Docket No. R-1065.AT TACHMENTA copy of the Board’s notice as it appears on pages 16460–79, Vol. 65, No. 60 of theFederal Register dated March 28, 2000, is attached.MORE INFORMATIONFor more information, please contact Rob Jolley, Banking Supervision Department,at (214) ...