As part of its continuing campaign to eliminate outdated regulations, the Federal Reserve Board has repealed its rules governing loan guarantees for the production of military equipment.

"This action does not represent any policy change, but rather eliminates an outmoded regulation and reduces regulatory burden," the Fed said in an Oct. 9 announcement.

Congress required the Fed to adopt Regulation V in the 1950s during the height of the Cold War. It dictated the steps government agencies used to guarantee loans to contractors producing supplies and equipment for the national defense.

The Fed noted that Congress repealed much of Regulation V in 1975. Also, it said no loan guarantees are outstanding, and no one has applied for a new guarantee in several years.

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