Circular
Board Delays Effective Date of New Limits on Inclusion Of Trust Preferred Securities and Other Restricted Core Capital Elements In Tier 1 Capital
March 17, 2009
Circular No. 12079

The Federal Reserve Board has announced the adoption of a final rule that delays until March 31, 2011, the effective date of new limits on the inclusion of trust preferred securities and other restricted core capital elements in tier 1 capital of bank holding companies (BHCs). This action is being taken in light of continued stress in financial markets and the efforts of BHCs to increase their overall capital levels.

These new limits were scheduled to take effect on March 31, 2009, pursuant to a final rule adopted by the Board on March 10, 2005 (70 Federal Register 11827). The delay will further the Board's efforts, as well as the efforts of the other Federal banking agencies and the U.S. Department of the Treasury, to respond to the current financial situation.

See the press release for full details.

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