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Fe d e r a l Re s e r v e b a n k o f D a l l a s DALLAS, TEXAS Dallas, Texas, April 22, 1955 SUPPLEMENTS T O REGULATIONS T AND U T o All Banks and Others Concerned in the Eleventh Federal Reserve District: The Board o f Governors o f the Federal Reserve System has amended the supplements to Regulations T and U by increasing margin require ments to 70 per cent, effective April 23, 1955. The press statement issued in connection with such action is quoted below. “ The Board o f Governors of the Federal Reserve System today amended Regulations T and U, relating respectively to margin requirements o f brokers and banks, by increasing margin requirements from 60 per cent to 70 per cent, effective April 23, 1955. “ The increased requirements apply to both purchases and short sales. N o other change was made in the Regulations.” A copy o f each o f the amended supplements is enclosed. Member banks are requested to insert these new supplements in their ring binders containing the Regulations o f the Board of Governors and the Bulletins o f this bank. Yours very truly, Watrous H . Irons President This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org) SUPPLEMENT TO REGULATION T ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Effective A pril 23, 1955 M aximum Loan Value f o r General Accounts. — The maximum loan value o f a registered security (other than an exempted security) in a general account, subject to section 3 o f Regulation T, shall be 30 per cent o f its current market value. Margin R equired fo r Short Sales in General Accounts. — The amount to be included in the adjusted debit balance o f a general account, pursuant to section 3 ( d ) ( 3 ) o f Regulation T , as margin required for short sales o f securities (other than exempted securities) shall be 70 per cent o f the current market value o f each such security. SUPPLEMENT TO REGULATION U ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Effective A pril 23, 1955 F or the purpose o f Section 1 o f Regulation U, the maximum loan value o f any stock, whether or not registered on a national securities exchange, shall be 30 per cent o f its current market value, as determined by any reasonable method.
@FedFRASER