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FE D E RA L RE SE R V E BANK O F NEW YORK rCircular No. 4 6 2 8 T L August 4, 1958 J M A R G IN R E Q U IR E M E N T S IN C R E A S E D To all Banks, M em bers o f N ational Securities E xchanges, and Others In terested , in the Second Federal R eserve D istrict: The B oard o f G overnors o f the F ederal R eserve System issued the follow ing statement tod a y: T he B o a rd o f G overn ors o f the F e d e ra l R eserve S ystem to d a y am ended R egu lation s T a n d U, rela tin g resp ectiv ely to m a rgin requirem ents o f brok ers an d banks, b y in creasing m a rg in requirem ents fr o m 50 p er cent to 70 p er cent, effective A u g u s t 5, 1958. T he in creased requirem ents a p p ly to both purchases an d sh ort sales. N o other change was m ade in the regulations. E nclosed are printed copies o f Supplements, effective A ugust 5, 1958, to Regulations T and U, givin g effect to the amendments. Additional copies o f this circular and o f the enclosed supplements will be furnished upon request. A lfred H ayes, President. SU PPLEM EN T TO R E G U L A T IO N T Is s u e d b y t h e B o a r d o f G o v e r n o r s o f t i i e F e d e r a l R e s e r v e S y s t e m E ffectiv e A u g u st 5, 1958 Maximum loa n valu e fo r gen eral accounts.— T he m axim um loan valu e o f a registered secu rity (o th e r than an exem p ted se cu rity ) in a gen era l a ccou n t, su b je ct to section 3 o f R egu la tion T , shall be 30 p er cen t o f its cu rren t m arket value. M a rg in re q u ire d fo r sh ort sales in gen eral accounts.— The am ount to be in clu d e d in the a d ju sted d eb it balance o f a general account, p u rsu a n t to section 3(d) (3 ) o f R egu la tion T , as m argin requ ired fo r sh ort sales o f secu rities (o th e r than exem pted secu rities) shall be 70 p e r cen t o f the cu rre n t m arket valu e o f each such security. PR IN T E D IN N E W YO R K SU PPLEM EN T TO R E G U L A T IO N U Issu e d b y t h e B o a rd op G o v e rn o rs o p t h e F e d e r a l R e s e r v e S y ste m E ffectiv e A u g u st 5, 1958 F o r the p u rp ose o f section 1 o f R egu la tion U, the m a x im u m loan valu e o f a n y stock, w hether or n ot registered on a n ation al secu rities exchange, shall be 30 p e r cen t o f its cu rren t m arket va lu e, as d eter m ined b y a n y reasonable m ethod. P R IN T E D IN N E W Y O R K
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