To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release (pdf - 11kb), the Federal Reserve Board announced that it would not apply section 9 of the Federal Reserve Act to prohibit a state member bank from acquiring equity securities to hedge the bank's customer-driven equity derivative transactions if such purchases are made in accordance with the conditions and restrictions applicable to national banks.
The Board's statement (pdf - 16kb) on this matter is attached.
Questions on this matter may be directed, at this Bank to Stefan Walter, Vice President, Bank Supervision Group.