WASHINGTON The Office of the Comptroller of the Currency on Monday proposed seven revisions in regulations that govern the activities of national banks.
Among other things, the revisions, which the OCC says are designed to bring regulations into line with new laws, would give national banks the authority to underwrite, deal in, and buy certain municipal bonds, as permitted by the Gramm-Leach-Bliley Act of 1999.
Previously banks could invest up to 10% of their capital or surplus in certain municipal bonds. The proposal reflects the new law, which permits well-capitalized banks to invest any amount in such bonds.
The proposal would also clarify that a school where a national bank participates in a financial literacy program is not considered a branch under the McFadden Act. That law, which limits where national banks can establish a branch, defines a branch as any site where deposits are received, money is lent, or checks are paid.
The revisions are to be published in the Federal Register this week, and comments will be due by late March.
