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F e d e r a l R e s e r v e b a n k o f D a l l a s DALLAS, TEXAS Dallas, Texas, October 16, 1958 SUPPLEMENTS TO REGULATIONS T AND U To All Banks and Others Concerned in the Eleventh Federal Reserve District: The Board of Governors o f the Federal Reserve System has amended the supplements to Regulations T and U by increasing margin require ments to 90 per cent, effective October 16, 1958. The press statement issued in connection with this 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 increasing margin requirements from 70 per cent to 90 per cent, effective October 16, 1958. “ The increased requirements apply to both purchases and short sales. N o other change \yas 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 of Governors and the Bulletins of 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 October 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 of Regulation T, shall be 10 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 ) o f Regulation T, as margin required for short sales o f securities (other than exempted securities) shall be 90 per cent o f the current market value of each such security. SUPPLEMENT T O REGULATION U ISSUED BY THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Effective October 16, 1958 For 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 10 per cent of its current market value, as determined by any reasonable method.
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