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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) * 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)