The Federal Reserve Board on Tuesday made it easier for a bank subsidiary to act as a "riskless principal" in securities transactions.

The Fed repealed nine restrictions that had prevented banks from having a loan on its books involving either party involved in a "riskless principal" deal. The order applies to all 51 holding companies with permission to serve as riskless principals.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.