The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
F E D E R A L R E S E R V E BANK OF NEW YORK r C ir c u la r N o. 3 4 3 0 * 1 L M arch 29, 1949 J SUPPLEMENTS TO REGULATIONS T AND U OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Effective March 30, 1949 To all Member Batiks, Members o f National Securities Exchanges, and Other Interested Persons, in the Second Federal Reserve District: For your information we quote below the text of a press statement issued by the Board of Governors of the Federal Reserve System and released for publication on March 29, 1949: The Board of Governors of the Federal Reserve System effective Wednesday, March 30, 1949, amended its Regulation T ‘ ‘ Extension and Maintenance of Credit by Brokers, Dealers, and Members * of National Securities Exchanges” and its Regulation U “ Loans by Banks for the Purpose of Pur chasing or Carrying Stocks Registered on a National Securities Exchange” so as to reduce the margin requirements for purchasing registered securities from 75 per cent to 50 per cent. These requirements are applicable both to purchases of securities and to short sales. The Board’s action was taken under its statutory responsibilities and in the light of the general credit situation. Enclosed are printed copies of the Supplements to Regulations T and U, effective March 30, 1949, giving effect to such amendments. Additional copies of this circular and of the enclosed supplements will be furnished upon request. A llan S pr o t jl , President. SUPPLEMENT TO REGULATION T I s su e d by the B oard of G overnors op t h e F ederal R eserve S y st e m Effective March 30,1949 Maximum loan value for general accounts. — The maximum loan value of a registered security (other than an exempted security) in a general account, subject to section 3 of Regulation T, shall be 50 per cent of its current market value. Margin required for short sales in general accounts. — The amount to be included in the adjusted debit balance of a general account, pursuant to section 3 (d) (3) of Regulation T, as margin required for short sales of securities (other than exempted securities) shall be 50 per cent of the current market value of each such security. SUPPLEMENT TO REGULATION U I s s u e d b y t h e B oard o f G o v er n o r s o f t h e F e d e r a l R e se r v e S y s t e m Effective March 30, 1949 For the purpose of section 1 of Regulation U, the maximum loan value of any stock, whether or not registered on a national securities exchange, shall be 50 per cent of its current market value, as de termined by any reasonable method. F E D E R A L R E S E R V E BANK OF NEW YORK March 29,1949 SUPPLEMENT TO REGULATION U OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Effective March 30, 1949 To Nonmember Banks, and Other Interested Persons, in the Second Federal Reserve District: For your information we quote below the text of a press statement issued by the Board of Governors of the Federal Reserve System and released for publication on March 29, 1949: The Board of Governors of the Federal Reserve System effective Wednesday, March 30, 1949, amended its Regulation T “ Extension and Maintenance of Credit by Brokers, Dealers, and Members of National Securities Exchanges” and its Regulation U “ Loans by Banks for the Purpose of Pur chasing or Carrying Stocks Registered on a National Securities Exchange” so as to reduce the margin requirements for purchasing registered securities from 75 per cent to 50 per cent. These requirements are applicable both to purchases of securities and to short sales. The Board’s action was taken under its statutory responsibilities and in the light of the general credit situation. Enclosed is a printed copy of the Supplement to Regulation U, effective March 30,1949, giving effect to such amendment. Additional copies of this letter and of the enclosed supplement will be furnished upon request. A llan S proul, President. SUPPLEMENT TO REGULATION U I s s u e d b y t h e B o ard o f G o v e r n o r s o f t h e F e d e r a l R e s e r v e S y s t e m Effective March 30,1949 For the purpose of section 1 of Regulation U, the maximum loan value of any stock, whether or not registered on a national securities exchange, shall be 50 per cent of its current market value, as de termined by any reasonable method.