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Acquisition of Stock by State Member Banks to Hedge Equity Derivative Transactions
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February 26, 2002
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| Circular No. 11423 | |
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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.
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