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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.