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F ederal

reserve

bank

DALLAS, TEXAS

of

Dallas

75222

Circular No. 71-236
October 5? 1971

PROPOSED AMENDMENTS TO REGULATIONS G, T AMD U
(Additional time for comments)

To All Banks, Broker/Dealers, Nonbank Lenders and
Others Concerned in the Eleventh Federal Reserve District:
The Board of Governors of the Federal Reserve System an­
nounced September 29, 1971, that the effective date of proposed
amendments to Regulations G, T and U regarding credit to contribute
capital to brokers and dealers will be postponed to December 1,
1971, to allow additional time for consideration of comments sub­
mitted on the proposals.
Copies of the Board’s press release and the proposed
amendments to these regulations were forwarded under Circular No.
71-159, dated July lb, 1971.
Enclosed is a copy of the Board’s press release and
postponement notice.

Yours very truly,
P. E. Coldwell
President
Enclosures

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

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9 .
.

FEDERAL RESERVE

k
jP

press

release

For immediate re le a s e

September 29, 1971

To allo w a d d itio n a l tim e fo r considering comments, the
Board of Governors o f the Federal Reserve System has postponed
u n t i l December 1 the e f fe c tiv e date of proposed re g u la to ry amend­
ments s e ttin g fo r th the conditions under which c r e d it may be ob­
tain ed w ith o u t regard to i n i t i a l margin requirem ents fo r the purpose
of p ro vid in g c a p ita l to b ro k e r-d e a le r firm s .
On Ju ly 9 , the Board issued in revised form proposed
amendments to margin Regulations G, T, and U s e ttin g fo r th these
p ro v is io n s .

Under th a t propo sal, the amendments would have become

e f fe c tiv e on October 1.
A copy o f the postponement n o tic e is attached.

-0 -

y
J

FEDERAL RESERVE SYSTEM
(12 CFR PARTS 207, 220, and 221)
(Regs. G, T, and U)
SECURITIES CREDIT BY PERSONS OTHER THAN BANKS, BROKERS, OR DEALERS
CREDIT BY BROKERS AND DEALERS
CREDIT BY BANKS FOR THE PURPOSE OF PURCHASING OR CARRYING MARGIN STOCK
Notice to postpone effective date of
proposed amendments in regard to Credit
to Contribute Capital to Brokers and
Dealers.

1.

Pursuant to the authority contained in the Securities

Exchange Act

of 1934 (15 U.S.C. 78g), the Board of Governors, on

July 9, 1971

(36 Federal Register 13218), published revisions to

proposals to amend Parts 207, 220, and 221,
2.

its

(Regulations G, T, and U ) .

In view of the extent and number of comments

received from interested

members of the public, the Board hereby announces

that it will postpone the originally proposed effective date of October 1,
1971, to December 1, 1971, in order to permit further consideration of
the views, suggestions, and comments received.
3.

In view of the postponement of the effective date to

December 1, 1971, the proposed changes to Regulations G, T, and U will
apply to credit extended by banks, broker/dealers, and persons subject
to Regulation G after December 1, 1971, and to renewals after such date
of credit extended by banks after April 16, 1971, except in the case of
credit extended by banks directly to broker/dealers where the restrictions

2

would apply to such credit extended after December 1, 1971, and to
renewals after that date of such credit extended after July 9, 1971.
By order of the Board of Governors, September 28, 1971.

(Signed) Tynan Smith

Tynan Smith.
Secretary.
(SEAL)


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102