Fed Seen Lifting Section 20 Revenue Lid

The Federal Reserve Board is expected Friday to more than double the amount of revenue banking companies may earn by underwriting securities.

Section 20 subsidiaries would be allowed to earn up to 25% of their revenue from underwriting and dealing in commercial securities. The current limit is 10%.

The Fed first proposed the change July 31. It is one of a series of steps the central bank has taken this year to make section 20 units more competitive.

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