The Fed cleared the way for two European banks to jointly operate a securities brokerage service in New York.

The Fed will permit Caisse Nationale de Credit Agricole of Paris and Lazard Freres & Co. of London to establish the venture June 10.

The Fed said the joint venture - CAF FP Inc. - can broker securities, sell investment advice, provide foreign exchange services, and offer transactional services. It also can serve as a riskless principle in securities purchases. Additionally, the Fed said the joint venture can provide advice on swaps, futures, and options on financial and nonfinancial commodities.

The Fed did restrict Caisse Nationale and Lazard Freres from endorsing one another to customers. Caisse Nationale also is barred from employing directors of Lazard Freres in the United States.

These items were compiled by Phil Olaya, an intern with the Institute on Political Journalism, a program of the Fund for American Studies.

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