Comments Due April 16, 2001
To All State Member Banks and Bank Holding Companies in the Second Federal Reserve District:
The Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation have requested comment on a proposal that would establish special minimum regulatory capital requirements for equity investments in nonfinancial companies. The capital treatment would apply symmetrically to equity investments of banks and bank holding companies. It would apply a series of marginal capital charges on covered equity investments that increase with the level of a banking organization’s Tier 1 capital.
The proposal is a revision of a proposal issued for public comment by the Board in March 2000 (see our Circular No. 11243).
Comments should be submitted by April 16, 2001 and sent to the Board as specified in the official notice. Questions on this matter may be directed, at this Bank, to Darryll E. Hendricks, Senior Vice President.