Circular No. 11373
August 15, 2001

FINAL RULE ON FINANCIAL SUBSIDIARIES OF STATE MEMBER BANKS

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a press release, the Board of Governors of the Federal Reserve System has announced its approval of a final rule permitting qualifying state member banks to establish financial subsidiaries and thereby engage in certain activities that have been determined to be financial in nature or incidental to financial activities. The Board’s notice (pdf - 51kb) is attached.

Questions on this matter may be directed, at this Bank, to Darryll Hendricks, Senior Vice President, Bank Supervision Group.

William L. Rutledge
Executive Vice President