NEW YORK - The Federal Reserve Board of Governors approved Chemical Banking Corp.'s request to underwrite and deal in all forms of equity securities through its wholly owned subsidiary Chemical Securities Inc., the bank said Monday.
The approval permits the broker-dealer unit to underwrite and deal in common stock, preferred stock, American depository receipts, options, limited partnership units, securities issued by closed-end investment companies, and other direct and indirect equity ownership interests in corporations and other entities.
Chemical will initially focus on equity activities that are natural extensions of its corporate finance and capital markets operations.
These include underwriting equity securities as part of an integrated financing package for a potential issuer and underwriting debt securities with equity aspects such as warrants, exchange, or conversion features as an adjunct to underwriting and dealing in high-yield bonds.
Also included are underwriting and dealing in equity securities and arranging new issues as an adjunct to Chemical's' emerging-markets bond business.
