WASHINGTON -- The Federal Reserve is considering relaxing the volume restrictions on banks that underwrite and deal in ineligible securities through affiliates.

Currently, banks with these so-called Section 20 subsidiaries cannot earn more than 10% of the unit's gross revenues from ineligible securities. Rather than lifting the cap to 20% or 25%, the Fed on July 6 proposed three other ways of calculating the existing cap.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

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