Source: Federal Reserve Board Before the Subcommittee on Capital Markets, Securities and Government Sponsored Enterprises of the Committee on Banking and Financial Services, U.S. House of Representatives

June 7, 2000 Mr. Chairman and other members of the Subcommittee on Capital Markets, I appreciate the opportunity to explain the rules recently proposed by the Federal Reserve Board and the Department of the Treasury to allow financial holding companies to engage in merchant banking activities under the Gramm-Leach-Bliley (GLB) Act. I want to stress that part of what I'm about to discuss is only a proposal, and the rest is a rule that has been adopted only on an interim basis.

The Board and the Treasury have requested comment from the public on both parts, and both are subject to review and modification in light of those comments. Our experience has been that public comments are generally very helpful, and we value the insight and information they provide from practitioners, analysts, other policy makers and informed members of the public. The public comment period ended on May 22, and the Board and the Treasury are analyzing those comments now...[more]

Click here for Mr. Meyer's full testimony

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