BANK POWERS: The OCC is close to finalizing a proposal to let national banks conduct through operating subsidiaries activities that are not permitted for the parent. The rule had been on hold pending House action on a Glass-Steagall repeal bill that would have required new securities activities to be conducted in holding company subsidiaries. However, that bill was withdrawn in June. The agency is expected to finalize the proposal this month. The OCC's plan was proposed in November 1994; comments were due in January 1995.

RECOURSE: The agencies are planning this fall to propose reducing the amount of risk-based capital that banks must hold against some assets sold with recourse. However, regulators may require banks to hold more capital against other assets, such as letters of credit. This plan is not directly related to proposed call-report changes. An advance notice of proposed rulemaking was issued for comment in May 1994; comments were due in July 1994.

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