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FEDERAL RESERVE B AN K O F D ALLAS
D A LLA S, TEX A S

Dallas, Texas, January 16, 1958

SUPPLEMENTS T O REGULATIONS T AND U

To 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 decreasing margin require­
ments to 50 per cent, effective January 16, 1958. The press statement
issued in connection with such action is quoted below.
“ The Board o f Governors o f the Federal Reserve System
today amended Regulations T and U, relating respectively to
margin requirements o f brokers and banks, by reducing margin
requirements from 70 per cent to 50 per cent, effective January 16,
1958.
“ The reduced requirements apply to both purchases and short
sales. No 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 of the Board o f 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 T O REGULATION T

ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Effective January 16, 1958

Maximum Loan Value for 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 50 per
cent o f its current market value.
Margin Required for 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 ) of Regulation T , as margin required for
short sales o f securities (other than exempted securities) shall be 50 per
cent of the current market value o f each such security.

SUPPLEMENT T O REGULATION U

ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

Effective January 16, 1958

For the purpose of 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 50 per cent of its current market value, as determined
by any reasonable method.

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