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FED ERAL RE SE R V E BANK OF NEW YORK rCircularNo. 4 6 5 2 "I L October IS, 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 T o 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 Board of Governors of the Federal Reserve System issued the following statement today: T h e B o a r d o f G o v e r n o r s o f th e F e d e r a l R e s e r v e S y s t e m t o d a y a m e n d e d R e g u la tio n s T and U, r e la tin g r e s p e c tiv e ly to m a r g in r e q u ir e m e n t s of b r o k e r s a n d b a n k s , b y in c r e a s i n g m a r g i n r e q u ir e m e n t s f r o m 7 0 p e r c e n t t o 9 0 p e r c e n t , e f f e c t iv e O c t o b e r 1 6 , 1 9 5 8 . T h e in c r e a s e d r e q u ir e m e n t s a p p l y t o b o t h p u r c h a s e s a n d s h o r t s a le s . N o o t h e r c h a n g e w a s m a d e i n th e r e g u la t io n s . Enclosed are printed copies of Supplements, effective October 16, 1958, to Regulations T and U, giving effect to the amendments. Additional copies of this circular and of 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 I ssu ed b y t h e B oard op G o vern o rs o f t h e F e d e r a l R eserve S y s t e m E ffe c tiv e O c to b e r 16, 1958 M a x im u m l o a n v a l u e f o r g e n e r a l a c c o u n t s .— T h e m a x im u m lo a n v a lu e o f a r e g i s t e r e d s e c u r i t y (o t h e r th a n a n e x e m p te d s e c u r ity ) in a g e n e r a l a c c o u n t , s u b j e c t t o s e c t i o n 3 o f R e g u l a t i o n T , s h a ll b e 1 0 p e r c e n t o f it s c u r r e n t m a r k e t v a lu e . M a r g i n r e q u i r e d f o r s h o r t s a le s i n g e n e r a l a c c o u n t s .— T h e a m o u n t t o b e i n c l u d e d i n t h e a d j u s t e d d e b i t b a la n c e o f a g e n e r a l a c c o u n t , p u r s u a n t to s e c tio n 3 ( d ) ( 3 ) o f R e g u la tio n T , as m a r g in r e q u ir e d f o r s h o r t s a le s o f s e c u r it ie s ( o t h e r t h a n e x e m p t e d s e c u r i t i e s ) s h a ll b e 9 0 p e r c e n t o f t h e c u r r e n t m a r k e t v a lu e o f e a c h s u c h s e c u r i t y . P R IN T E D IN N E W Y O R K SU PPLEM ENT TO R E G U L A T IO N U I ssu ed b y t h e B oard of G overn o rs op t h e F e d e r a l R eserve S y s t e m E ffe c tiv e O c to b e r 16, 1958 F o r th e p u r p o s e o f s e c t i o n 1 o f R e g u l a t i o n U , t h e m a x im u m lo a n v a lu e o f a n y s t o c k , w h e t h e r o r n o t r e g i s t e r e d o n a n a t i o n a l s e c u r it ie s e x c h a n g e , s h a ll b e 1 0 p e r c e n t o f it s c u r r e n t m a r k e t v a lu e , a s d e t e r m i n e d b y a n y r e a s o n a b le m e t h o d . P R IN T E D IN N E W Y O R K
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