Full text of Federal Reserve Bank of New York Circulars : 3949. Supplements to Regulations T and U of the Board of Governors of the Federal Reserve System

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FEDERAL RESERVE BANK
OF NEW YORK
J" Circular No. 3 9 4 9 T
L February 24, 1953 J

SUPPLEMENTS TO REGULATIONS T AND U OF THE BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Effective February 20, 1953

To all Banks, Members o f National Securities Exchanges, and
Others Interested, in the Second Federal Reserve D istrict:

The B oa rd o f G overnors o f the F ederal R eserve System issued the follow in g state­
ment on F ebru ary 20, 1953:
The B oard o f Governors o f the Federal Reserve System today amended Regulations T and
U, relating respectively to m argin requirements o f brokers and banks, by reducing margin require­
ments from 75 per cent to 50 per cent, effective immediately. The reduced requirements apply
to both purchases and short sales. N o other change was made in the regulations.

E nclosed are printed copies o f the Supplem ents to Regulations T and U, effective
F ebruary 20, 1953, givin g effect to the amendments.
A dditional copies o f this circular and o f the enclosed supplements w ill be furnished
upon request.




A

llan

S proul,

President.

SU PPLE M E N T T O R E G U L A T IO N T
I ssu ed

by the

B

oard of

G overnors

of t h e

F

ederal

R

eser v e

System

E ffective February 20, 1953
M axim um 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 50 per
cent o f its current market value.
M argin required 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 50
p er cent o f the current market value o f each such security.




P R IN T E D

IN

NEW

YORK

SU PPLE M E N T T O R E G U L A T IO N U
Issu ed b y t h e B o a rd o f G o v e rn o rs o f t h e F e d e r a l R e s e rv e S ystem

Effective February 20, 1953
F o r the purpose o f section 1 o f Regulation U, the maximum loan
value o f any stock, whether o r not registered on a national securities
exchange, shall be 50 p er cent o f its current market value, as deter­
mined by any reasonable method.




PRINTED

IN

NEW

YORK