Summary: | The FDIC, along with the Federal Reserve Board and the Office of the Comptroller of the Currency, has issued the attached joint final rule clarifying the capital treatment for securities borrowing transactions for banks and bank holding companies that are subject to the Market Risk Capital Rule. Securities borrowing transactions are generally used in conjunction with short sales, securities fails (securities sold but not made available for delivery on the settlement date), and option and arbitrage positions. The final rule takes effect on February 22, 2006. |
Highlights: The final rule:
Distribution:
Suggested Routing:
John Feid, Senior Capital Markets Specialist, Capital Market Branch, at jfeid@fdic.gov or (202) 898-8649
Michael Phillips,
Counsel, at
mphillips@fdic.gov
or (202) 898-3581
Note:
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Additional Related Topics:
- Securities Borrowings Risk-Based Capital Rules – Part 325, Appendix C