The Federal Reserve Board has granted U.S. Bancorp permission to underwrite a broader range of municipal revenue bonds and other securities.
The $70 billion-asset bank holding company, based in Minneapolis, will conduct its new section 20 powers through an existing subsidiary called U.S. Bancorp Investments Inc., according to a Nov. 26 Fed order.
U.S. Bancorp, formerly First Bank System Inc., already underwrites some municipal bonds but now may widen its municipal bond offerings and underwrite commercial paper and asset-backed securities, a company spokeswoman said.
The Fed also approved U.S. Bancorp's request to provide investment advisory, private placement, and trading services. The company has not yet sought to underwrite publicly traded stocks and debt.