First Security Corp. has received approval from the Federal Reserve to establish an investment banking and securities subsidiary, First Security Capital Markets Inc.

Salt Lake City-based First Security applied to the Fed in November to establish a so-called section 20 subsidiary and got approval last week. Section 20s can underwrite and deal in certain municipal revenue bonds, mortgage-related securities, commercial paper, and asset-backed securities, known collectively as Tier 1 powers.

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.