The Federal Reserve Board gave Swiss Bank Corp. permission Monday to retain control of the U.S. operations of S.G. Warburg Overseas.
The Fed said Swiss Bank's new unit can provide investment advice, offer brokerage services, and underwrite government bonds and equity securities.
The order also adds cash-settled stock index options to the list of bank ineligible securities. The Fed limits income from ineligible securities to 10% of the revenue from the underwriting of bank eligible securities, such as Treasury and municipal bonds.
The Fed had given Swiss Bank permission to acquire the company on a temporary basis in June. This order makes the transaction permanent.