WASHINGTON The Federal Reserve Board on Wednesday approved a regulation outlining exemptions to its rules 23a and 23b, which govern transactions between affiliates, and requested comment on two proposals that deal with similar issues.
The final regulation exempts banks from a ban on buying certain assets from their brokerage affiliates, and it eases restrictions on banks ability to lend to customers for the purpose of buying securities from a bank affiliate.
The Fed requested comments on a proposal that would create Regulation W, a codification of past interpretations of rules 23a and 23b by the agency. The proposal will be open for comment for 90 days after its publication in the Federal Register.
In addition, the board issued an interim final rule that would confirm that the 23a and 23b rules apply to derivatives transactions between banks and their affiliates and would govern the intraday extension of credit by banks to their affiliates. The interim rule will not take effect until January, and it will be open for comment for 90 days after its publication in the Federal Register.