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FED ER AL RESERVE BANK OF NEW YORK November 2, 1979 PROPOSED FORM F.R. Y-8f To the C h ief E xecutive O fficer o f Each Foreign Bunk H olding C om pan y in the Second Federal Reserve D istrict: The Board of Governors is seeking public comment on the attached proposed report, entitled “ Report o f Intercompany Transactions for Foreign Bank Holding Companies and Their U.S. Bank Subsidiaries’ ’ (Form F.R. Y-8f). The purpose of this report would be to identify any key transactions or balances be tween the U.S. subsidiary bank(s) and other members of that bank holding company (the parent company and its other subsidiaries) that could adversely affect the financial condition o f the U.S. subsidiary bank(s). Federal Enclosed is a copy of the form, instructions for the report, and copies o f the We are particularly interested in your comments on the following matters: Register notice regarding the proposal. (1) the possible inclusion o f U.S. domiciled branches and agencies together with the U.S. subsidiary bank(s), which would be in tended to capture more comprehensive data on the foreign bank holding company’ s U.S. banking presence; (2) the addition o f a minimum cutoff point for net realized losses and/or net unrealized losses asked for in question 1, Section III; and (3) any alternatives that would reduce the burden on a reporting organization without compromising effective supervision of the U.S. subsidiary bank(s). Comments must be received by January 4, 1980 and may be sent to our Bank Analysis Department. Inquiries may be directed to Donald E. Schmid, Manager, Bank Analysis Department (Tel. No. 212-791-6611). T h o m a s M. T im l e n , First Vice President. FEDERAL RESERVE SYSTEM PROPOSED REPORT REQUIREMENT REPORT OF INTERCOMPANY TRANSACTIONS FOR FOREIGN BANK BOLDING COMPANIES AND THEIR U.S. BANK SUBSIDIARIES (F.R. Y-3f) (Docket No. R-0257] ACTION: Proposed Report. AGENCY: Board of Governors of the Federal Reserve System. SUMMARY: The Board of Governors of the Federal Reserve System is submitting for public comment the proposed Report of Intercompany Transactions for Foreign Bank Bolding Companies and Their U.S. Bank Subsidiaries (P.R. Y-8f). The F.R. Y-8f, which is similar to the Report of Bank Holding Company Intercompany Transactions and Balances (F.R. Y-3) filed by domestic bank holding companies (BHCs), would be required on a quarterly basis from all foreign BHCs, that is, any BBC that meets the definition of a foreign BBC set forth in Section 225.4(g) of Regulation Y. The Board of Governors is proposing that this report be adopted for a two-year period with reporting beginning in the first quarter of 1980. This report would monitor intercompany transactions such as asset transfers or transfers associated with foreign exchange between two ™*jor holding company groupings: (1) U.S. bank subsidiaries and their direct and indirect subsidiaries and (2) all other members of the BBC group that are neither U.S. bank subsidiaries nor direct or indirect subsidiaries of 3uch banks. The F.R. Y—8f will assist the Board in monitoring intercompany transactions which may have an adverse effect on the safety or soundness of the U.S. bank subsidiaries of foreign BBCs and will assist in ascertaining whether or not such foreign BEC 3 are serving as a source of financial strength to their U.S. bank subsidiaries. A copy of the proposed F.R. Y-8f is presented as Attachment A. Copies of the instructions to the report may be obtained from the Public Information Office, Board of Governors of the Federal Reserve System, Washington, D.C. 20551. DATE: Comments must be received by January 4, 1980. Comments may be mailed to the Secretary, Board of Governors of the Federal Reserve System, Washington, D.C. 20551, or delivered to Room B-2223, 20th Street and Constitution Avenue, N.W., Washington, D.C. between 8:45 a.m. and 5:15 p.m. All comments should refer to Docket No. R-0257. FOR m w rwRB INFORMATION CONTACT: Susannah M. Lawrence, Financial Analyst, Division of Banking Supervision and Regulation (202/452-2711) or Kathleen M. O'Day, Attorney, Legal Division (202/452— 3786), Board of Governors of the Federal Reserve System. 2- SUPPLEMENTARY INFORMATION: The Board is proposing the implementation of the Report of Intercompany Transactions for Foreign 3ank Holding Companies and Their U.S. Bank Holding Subsidiaries (F.R. Y-3f) for a two-year period with reporting beginning in the first quarter of 138Q. The F.R. Y-8f is to be filed on a quarterly basis by all foreign BBC3, that is, any BHC that meets the definition of "foreign bank holding company" set forth in Section 225.4(g) of Regulation Y. The proposed report is in accordance with the Board* s "Stataaent of Policy on Super vision and Regulation of Foreign Bank Bolding Companies" of February 23, 1379, which stated that the principle of national treatment shall be the governing principle in the administration of the Bank Holding Company Act of 1356. The F.R. Y-8f is similar to the Report of Bank Holding Company Intercompany Transactions and Balances (F.R. Y-8) filed by domestic BBCs. The questions on the proposed report and the definitions of report items closely parallel those of the domestic report. Domestic BECs with consolidated assets of $300 million or more are required to file the F.R. Y-3 on a quarterly basis. The F.R. Y-8f will provide information on intercompany transactions between two major holding company groupings: (1) U.S. bank subsidiaries and their direct and indirect subsidiaries and (2) all other BHC members as this term is defined in the report. This report will assist in monitoring intercompany transactions that may have an adverse effect on the safety and soundness of U.S. bank subsidiaries of foreign BBCs and will assist in ascertaining whether or not such foreign BBCs are serving as a source of financial strength to their 0.S. bank subsidiaries. REPORT DEFINITIONS: Key terms or phrases used in the F.R. Y-8f are defined in the definitions section of the instructions to the report. The definition for three such terms might be specifically noted. They are as follows: Subsidiary: This term is defined as in Section 2(d) of the Bank Holding Company Act and is to include (1) any company 25 per cent or more of whose voting shares (excluding shares owned by the United States or by any company wholly owned by the United States) is directly or indirectly owned or con trolled by a BBC or is held by it with power to vote; (2) any com pany the election of a majority of whose directors is con trolled in any manner by such BBC; and (3) any company with respect to the management or policies of which such BBC has the power, directly or indirectly, to exercise a controlling influence, as determined by the Board. U.S. bank subsidiaries and their subsidiaries: The phrase "U.S. bank subsidiaries and their subsidiaries" is defined for the purposes of this report to include (1) any U.S. bank - -3 - that is a direct or indirect subsidiary (as defined in the 3anx Holding Company Act) of a foreign 3HC (that is, a company organized under the laws of a foreign country, and more than half of whose consolidated assets are located, or half of whose consolidated revenues are derived outside the United States) and (2) any direct or indirect subsidiary of such a U.S. bank. Organizations operating under Sections 25 or 25(a) of the Federal Reserve Act (Agreement or Edge corporations) are to be included under the phrase "other BBC members" (see definition below) if they are 25 per cent or more owned by the foreign BBC parent company regardless of U.S. bank sub sidiaries and their subsidiaries' ownership in such corpora tion. Other BBC members: The phrase "other BBC members" is defined for the purposes of this report to include (1) the BBC parent company and (2) all direct or indirect subsidiaries through the first three tiers of that BBC's subsidiaries of these banks. The phrase "other BBC members" excludes all entities which fall under the definition set forth above of "U.S. bank subsidiaries and their subsidiaries." United States branches and agencies of the foreign BBC parent are included under the holding company grouping referred to in the report as "other BBC members” . Comment is specifically requested on the inclusion of U.S. domiciled branches and agencies with the BBC grouping comprised of U.S. bank subsidiaries and their subsidiaries. DETAILS OF THE PROPOSAL: The F.R. Y-8f is. a four-page letter size form with 32 numeric response fields and one request for a descriptive or expository response. An original and two copies of this report sure to be submitted to the foreign BBC's Federal Reserve Bank no later than 45 calendar days after the close of each quarter. In addition to quarterly reporting requirements, certain large asset transfers are to be reported within 15 calendar days of their occurrence in an interim F.R. Y-3f. Foreign BBCs are to file the F.R. Y-3f under one of two reporting options: (1) the report may be filed on the basis of the intercompany transactions of each U.S. bank subsidiary of a given BBC, in which case, the number of reports filed for a particular reporting period would be equal to the number of U.S. bank subsidiaries of a particular foreign BBC; or (2) one report may be filed on the basis of aggregate inter company transactions effected during the period, in which case, one F.R. Y-8f would be filed in a particular reporting period. It might be noted that any domestic BBC that is a subsidiary of a foreign BBC will be exempt from filing the domestic F.R. Y-8. In addition, the instructions to the F.R. Y-8f provide that: "Reporting -4 - requirements for transactions of a recurring nature, or any transaction that would result in undue reporting burden or expense, may be waived upon written request to the Federal Reserve Bank to which thi3 report is to be submitted (with the concurrence of the Board)." Asset transfers. Section I of the P.R. Y-8f requests information on asset transfers effected during the reporting period that were greater than $100,000. Asset transfers involving loans that were delinquent, nonperforming, or renegotiated at the time of transfer are to be reported separately. In addition, descriptive detail is required on any such transfer that is equal to one per cent of the total equity of the bank participating in the transfer or $2 million, whichever is less. Asset transfer data are to be provided in three separate categories: (1) securities, including obligations of states and political subdivisions (including any foreign political subdivision), but excluding U.S. Treasury securities, obligations of other U.S. government agencies and corporations, and securities issued by the foreign BBC parent company or any of its direct or indirect subsidiaries; (2) loans, lease receivables, and other assets representing extensions of credit; and (3) other noncash assets including premises, real estate owned other than premises, and debt or equity securities issued by the foreign BBC parent company or any of its direct or indirect subsidiaries. Other Intercompany Transactions and Balances. Section II of the F.R. Y-af requests information on five types of intercom pany transactions and balances: (1) U.S. bank subsidiary expenses recognized during the period associated with amounts paid or owed to other BBC members; (2) intercompany liabilities and claims; (3) U.S. bank subsidiary participation in loans originated or syndicated by other BBC members; (4) U.S. bank subsidiary loans or commitments made in connection with credit extended by third parties to other BBC members; and (5) compensating balances. Average balances required under Section II of the F.R. Y-8f are to be calculated using (1) daily balances or (2) weekly balances as of the close of business on each Wednesday falling in a given reporting period. U.S. bank subsidiary expenses recognized during the period associated with amounts paid or owed to other BBC members. U.S. bank subsidiary payments to other BBC members during the period are to be reported in three separate categories: (1) interest, (2) management and service fees, and (3) other payments. Interest payments include those on loans, advances, or other extensions of credit made by other BBC members to U.S. bank subsidiaries. Management fees include those for loan servicing. Other payments include such things as operating lease payments. U.S. bank subsidiary dividend payments are not to be reported in the P.R. Y-8f as such data are available frcm other sources. -3 - Intercompany liabilities and claims* U«S. bank subsidiary liabilities and a-irna on other BBC members (average balance outstanding during the period) are to be reported under this item. Liabilities and are separated into those which are in the fora of deposits and those which are in nondeposit fora. Deposit claims on other BBC members are separated into those which are interest and noninterest bearing. Nondeposit claims include P.S. bank subsidiary loans to other BBC members. . P.S. bank subsidiary participation in loans originated or syndicated by other 3 BC_jgember_s_. Data on P.S. bank subsidiary partici pation in loans originated or syndicated by other BBC members are re quested under this item in two forms* (1) average balance of loan par ticipations outstanding during the period and (2) period-end balance of such participations. Loan participations are defined under this item, as in the Consolidated Report of Condition, as any loan made in cooperation with and shared with at least one other lender. rartici-ra tions in pools of loans and securities are to be included under this Item if any member of the holding company is acting as manager of such a pool. P.S. bank subsidiary loans or commitments made In connection with credit extended bv third parties to other BBC members. The periodend balance of all loans or other obligations (balance sheet and con tingent obligations) made by P.S. bank subsidiaries in connection with credit extended by third parties to other BBC members are to be reported. Such obligations include unused commitments for loans, "guarantees", and standby letters of credit. r rwgpensating balances. Data on compensating balances maintained by P.S. bank subsidiaries in connection with credit lines extended or services provided to other BBC members are requested under this item. This includes (1) the average balances maintained during the period and (2) total compensation recognized during the period by P.S. bank subsidiaries for maintaining these balances. Foreign Exchange Transactions. Intercompany foreign exchange information is to be reported in Section III of the F.R. Y-8f. Under this section, the respondent is asked to report (1) whether any P.S. bank subsidiary (or one of its subsidiaries) has experienced a net realized loss or a net unrealized loss on foreign exchange transactions during the period and (2) whether during that period any P.S. bank subsidiary (or one of its subsidiaries) was a party to foreign exchange transactions with other BBC members at nonmarket rates. If a given reporter answers both of these questions in the negative, it is not required to provide any additional information on foreign exchange transactions. If either of these questions has been answered affirmatively, the respondent must answer three additional foreign exchange questions. The first of these questions requests information on the total volume of foreign exchange contracts negotiated by CJ.S. bank subsid iaries and their subsidiaries with any party during the period. The second question requests information on the total volume of such trading with other BHC members. Total volume is to be calculated using gross purchases sales (book value at date of negotations) • Spot and forward transactions are to be included. The third foreign exchange question requests information on the profitability of foreign exchange trading. Respondents are to report (1) realized profit (loss) figures on all spot and forward con tracts maturing during the period and (2) unrealized profit (loss) figures for the period on existing forward contracts. For any given forward contract, unrealized gain (loss) is to be determined by multiplying the foreign currency amount of the par ticular contract by the difference between (1) the forward rate at which the contract was negotiated and (2) the forward rate for the foreign currency in question as of the reporting data. With respect to Section 111 of the report, ccasnent is requested on whether, in order to reduce reporting burdens, there should be es tablished an amount below which realized or unrealized loss need not be reported. Comment is also invited on any other methods by which the burden on reporting organizations may be reduced. Board of Governors of the Federal Reserve System, October 26, 1979. (signed) Theodore E. Allison Theodore 2. Allison Secretary of the Board [s e a l ] PH UA.NK UUC 'JN C'f 1 1/79 s»9U 2 .^ S S SECTION t. ASSET TRANSFERS1 a S A 0 .N S T H U C T tO N S B E F O R E C O M P L E T IN G T H .S REPORT |? ru fim in i ,a l TRAN SFERS OP LESS T » a n S1CO.OOO NESO NOT 36 REPORTED A M O U N T TRANSFERRED THAT WAS DELINQUENT. NONPER PORI* ' ING OR RENEGOTIATED i A. 8. C. TO : U .S. 3and Subudianaa and Thaw Subwdiartus FRO M : Othar T O : Other 8H C Membara Sutmtxwnmvt* FRO M : U S . Sand Th«tr Sutoaidianas I Sudsdianae end PROM : Qttiar . Their Subsidiaries j 3HC Memoerj BHC Mu n ttrt TO : U .S. Sank 0. Lent.i . » j Members FRO M : U .S. Sand | Subsidiaries and i Than- SudsMiariea | I Mil. iTho u .1 SH. I Z I TO : Other 3H C iThou.. r«c»vaOI«3. and o t n « a « . a that r . o « « n t extensions of credit 3. Other assets 4. ' n . r^rtjnn I that was transferred between an individual reportable under Columns C o r O o f Sac , ^.q%) of the tots u rv aa»r M h . ■» ■ " ^ " i l n T a n d atn.r SHC « * £ £ £ • Z 7 o * 9 ^ on , PU< » - « < " * * » u. , C . of on. „ . « « — information " ~sho ^ the names ^ following (2) of the.......... or^aniratiom involved in w" ,tv a<X r T ^ - ^ ^ o Z ' T o t T o l «Mfl'transf«f ™k,n, uo th. totai r.oorad. : ; « Z 2 J ' x a d r,./ u a t.rn .n r a. to tn . t MrMtfV. -uraoar, meu*n *or ee ' ^ a n in 3 ^ - o n • PR SA N K U SE O N LY * R Y-3f r 1.-79 >iq« 3 Oiat. Y ear 1 j iiy jaiai ai M i l l B H C No. 1 1 1 I t 1 Y r. Mo. l 1 I 1 1 Day ( IiIlI M PLEASE REAO INSTRUCTIONS BEFORE COMPLETING THIS REPORT A C T IO N II. O TH ER INTERCOMPANY T R A N S A C T IO N S AN D B A L A N C E S 1 Expenses recognized by U.S. bank subsidiaries and their subsidiaries associated with amounts paid or owed * to other 9 H C members during the reporting period: • # 13. a. Interest . . . . I ...................................................................................................................................................................... . K. b. Management and service f e e s .................................................................................................................................... A" ^ 15. c. O t h e r ........................................................................................................................................................................................ ‘■;X Intercompany liabilities and claims (average during reporting period): a. U .S. bank subsidiaries and their subsidiaries' liabilities to other BH C members: 16. (1) Oeposits............................................................................................................................................................................ 17. (2) Nondeposit lia b ilities ............................... ...................... * ,b. U.S, bank subsidiaries and their subsidiaries' daim s on other BH C members: r (1) Oeposit d a im s ................................................................................................................................................................ 19- (a) Interest-bearing........................................................ .................................................................................. 20 (b) Noninterest-bearing...................................................................... ....................................................................... 21 (2) Nondeoosit daims (indude lo an s)................................................................................. ............................... 1 U.S. bank subsidiaries and their subsidiaries' participation in loans originated or syndicated by other BH C members: a. Average amount of loan partidpation dunng reporting period .......................................... .............................. b. Am ount outstanding at the end of reporting p e rio d .......... • • • • * ....................................................................... i. Period-end amount of all outstanding loans, unused commitments, "guarantees, or standby letters of credit made by U.S. bank subsidiaries and their subsidiaries in connection with credit extended by third parties to other BH C members ......................................................... 3. Compensating balances: a. Average amount of compensating balances maintained during the reporting period by U.S. bank subsidiaries and their subsidiaries at unrelated banks in connection with credit lines extended or services provided to other BH C m em bers.......... ............ b. Amount of comoensation, if any. recognized during the reoorting period bv U.S. bank subsidiaries and their subsidiaries for maintaining the balances reported in .................................................................... 1 N#qattv« num Offi m ould not oe rvoorrod in S K tto n 11 ■Mi ■ I* PR SAN K U SE O N LY Qirt. Ynr v-af 1 I | 1Y | a i Qt 3 1 ! 1 1 /79 a«q« <*■ SHC No. Y f. 1! ! 1 Mo. Day PLEASE REAQ INSTRUCTIONS SEPQRE C O M PUTTING THIS REPORT S E C T IO N lit. F O R E IG N E X C H A N G E T R A N S A C T IO N S If the num ber one is entered in Cells 2 7 or 23. below, the respondent m ust answer Items 3-3. also below. If the num oer tw o has been entered in both cells, the respondent is n o t required to answer these additional items. • 1 6 If a U .S . b a rk subsidiary or one o f its subsidiaries has experienced a net realized loss o r a net unrealized ' loss on foreign exchange transactions during the reporting period, enter the number one m the box to the right. If there was not a net loss during the period, enter the number two. 2. If a U S. hank subsidiary or o n . of its subaidiarias i M n a oarrv to any fonign txchanga transaraens during :na rsnorting osnod with othsr 3 H C rn .m B .rs at non-market rates, enter the number o n . .n the box to the right. If no such transactions were effected during the period, enter the number two. □ : □ : Dollar Amount In Thouatnus s an. 3. Total volume of foreign exchange contracts negotiated during reporting period by U .S. bank subsidiaries and their su b sid ia ries................................................................. *1. Total volume of foreign exchange contracts negotiated during reporting period by U.S. bank subsidiaries and their subsidiaries with other BH C m em bers......................... ................... 5. Realized and unrealized gain (loss) of U .S. bank subsidiaries and their subsidiaries during reporting period derived from foreign currency transactions. a. Realized gain (lo ss).............................................................................................................................. b. Unrealized gain (loss). Mil. Thou, i 30A5D OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. InsCruetions for Preparation of the Report of Intercompany Transactions for Foreign Bank Holding Companies and Their U.S. Bank Subidiaries — Fora F .R. Y-8f October 19, 1979 A GENERAL INSTRUCTIONS Who must report. The Report of Intercompany Transactions for Foreign Bank Holding Companies and their U.S. Bank Subsidiaries (F.R. Y-3f) must be filed by all foreign bank holding companies (3HCs), that is, any BHC organized under the laws of a foreign countcy and more Chan half of whose consolidated assets are located, or consolidated revenues derived, outside the United States. Foreign 3HCs must file the F.R. Y-3f under one of the following reporting options: (1) 'Die report may be filed on the basis of the intercompany U transactions of each U.S. bank subsidiary- of a given foreign BHC. In this case, the number of reports filed for a particular reporting period would be equal to the total number of U.S. bank subsidiaries of a particular foreign BHC. (2) One report may be filed on the basis of aggregate intercompany transactions effected during the reporting period. In this case, one F.R. Y-8f would be filed in a particular reporting period. Frequency of reporting. Quarterly reporting. The F.R. Y-3f is to be filed for the quarters ending on the last day of the months of March, June, September, and December. The completed quarterly report shall be submitted not later than 45 calendar days after the close of each quarter. 17 For the purposes of the F.R. Y-8f, the term subsidiary i3 defined as in “ Section 2(a) of the Bank Holding Company Act of 1956, as amended, and is to include any company (the term company is defined on page 4 of these instructions) 25 percent or more of whose voting shares (excluding shares owned by the United States or by any company vmolly owned by the United States) is directly or indirectly owned or controlled by a BHC or is held by it with power to vote. See page 4 of these instructions for a complete definition of the term subsidiary. Interim reporting. In addition to the quarterly reporting requirement, certain large asset transfers shall be reported in an interim report within 15 calendar days of their occurrence. The following types of transfers should be reported in an interim report: 1. The transfer during the period of any asset(s) of the type reportable in Section I of this report between any individual U.S. bank sub sidiary or one of its subsidiaries and other BRC members 1/> if the amount of assets transferred exceeds ten per cent (102) of the total equity of that bank or $20 million, ;diichever is less. 2. The transfer during the period of delinquent, nonperforming, or renegotiated asset(s) of the type reportable in Section I of thi3 report between any individual U.S. bank subsidiary or one of its subsidiaries and other BHC members, if the amount of assets trans ferred exceeds two and one-half per cent (2.52) of the total equity of that bank or $5 million, ^ichever is less. It should be noted that interim reporting criteria are to be applied to specific transfers of individual U.S. bank subsidiaries (or their subsidiaries) rather than to aggregate transfers by all U.S. bank subsidiaries. The interim report should include an original and two copies of the first two pages of the report form. For each individual asset transfer reported in an interim report, provide the following information on a separate page to be attached to the report form: (1) the amount and date of each transfer included in the total reported, (2) the names of the organizations involved in each transfer, and (3) a brief statement as to the purpose of the transfer. Transactions that are reported in the interim report should also be included in the quarterly report file d at the end of the period. Place of filing and number of copies required. An original and two copies of the quarterly report shall be submitted to the Federal Reserve Bank of the district in which the foreign 3HC‘s United States banking operations are principally conducted. 1/ “ It is important to note that the phrases (1) U.S. bank subsidiaries and their subsidiaries and (2) other BHC members are defined for the purpose of this report in specific terms in the General Instructions. -3 - Signatures. The o rig in a l copy of this report sh a ll be manually signed by an authorized o f f ic e r or agent of the foreign BHC in the appropriate place on the cover sheet of the report fora. The t i t l e also be entered in the appropriate space. of the o ffic e r or agent sh a ll The report does not have to be c e r t ifie d by an independent public accountant. Waiver of reporting requirements. Reporting requirements for transactions of a recurring nature, or any transaction that would re su lt in undue reporting burden or expense, may be waived upon written request to the Federal Reserve Bank, to tfiich th is report is to be submitted (with the concurrence of the Board). C o n fid e n tia lity . The Federal Reserve System regards the individual company information provided by each respondent as c o n fid e n tia l. I f i t should be determined subsequently that any information co llected on th is form must be released , respondents w ill be n o t ifie d . Preparation of rep o rts. or in ink. A ll reports should be f i l l e d out c le a rly by typewriter Reports completed in pencil are not acceptable. Vhen carbons are used to prepare cop ies, the copies must be le g ib le and care must be taken to ensure that the figures entered on the carbon appear on the correct lin e s . Computer printouts are also acceptable, provided that they are in a format identical to that of the report form, including a ll item and colunn cap tion s. Submission of le g ib le photocopies or other machine copies is permitted, provided that such copies are signed in d iv id u a lly . Amounts reported should oe in U.S. d o lla r s . rounded to the nearest thousand. reported as $528 thousand. For example, an amount of $5 27,6 05 .22 would be Report items between $500 and $1,000 as $1 thousand; report items le ss than $500 as zero. Any d o lla r amounts should be Place any negative en tries in parentheses. - 4 - I f additional space is necessary to answer an item or i f an item requires further explanation, furnish such information on a separate page to be attached to the report form. D efin itio n s. I t might be noted here that the d efin itio n s used throughout this report are consistent:, 4 e r e « p ossib le, with the Consolidated Reports of Condition and Income. Bank Holding Company A ct: n,.w Bolding Company (BHC): The Bank Holding Company Act of 1956, as amended. This term i s defined as in Section 2(a) of the Bank Holding Company Act and i s to mean any company Oiich has control over any bank or over any company that is or becomes a bank holding company by virtue of the Back Holding Company A ct. Subsidiary: This term is defined as in Section 2(d) of the Bank Holding Company Act and is to include (1) any company (as defined below) 25 percent or more or whose voting shares (excluding shares owned by the United States or by any conpany wholly owned by the United States) is d ire c tly or in d ire c tly owned or con trolled by a BHC or is held by i t with power to vote; (2 ) any company the e le c tio n or a majority of whose directors i s controlled in any manner by such BHC; and (3 ) any company with respect to the management or p o lic ie s of Oiich such BHC has the power, d ire c tly or in d ir e c tly , to exercise a con trollin g in flu en ce, as determined by the Board of Governors of the Federal Reserve System. Company: This term is defined as in Section 2(b) of the Bank Holding Company Act and is to mean any corporation, partnership, business tru st, a sso cia tio n , or sim ilar - 5 - fTUSt u n le s s by U s te rn s i t n u st term in ate w ith in o r g a n iz a tio n , o r any o th e r t r u s t u n le s s oy i 2 1 vears and 10 sou th s a f t e r the death or in d iv id u a ls 25 y ears or not l a t e r than 21 years ana ™ liv in g on the e f f e c t i v e d a te of the t r u s t . Ban,: t t i s term i s defined as in Section 2 (c ) of the Ban, Boldin* Company Act and includes in s titu tio n s organised under the laws of the United S tates, any sta te of the United S ta te s, the D is tr ic t of Columbia, any te r r ito r y of the United S ta te s, Puerto Rico, Gum., American Samoa, or the Virgin islands that (1) accepts deposits that the depositor has a le g a l righ t to w it h d r a w . ( 2 ) enzazes in Che business of making conmercial on demand, and (.2; eng g lo a n s. n e San, s u b s id ia -- -■* su b sid ia rie s: The phrase "U .S . ban, su h sid ia rie , and th e ir su b sid ia r ie s- i s defined fcr the purposes of th is report to include ( 1 ) any « . . . ban, that is a d irect or indirect subsidiary ( a , defined in the Ban, e l d i n g Cospany Act) of a foreign BHC (th a t i s , a conpany organized under the lavs of a foreign country, and more than h a lf o£ whose consolidated assets are located , or h a lf of whose consolidated revenues are derived, outside the United S ta te s ), and (2 ) any d irect or in d irec t subsidiary of such a U .S. b a n ,. Organizations operating under Sections 25 or 25(a) of the Federal Reserve Act (Agreement or Sdge Act Corporations) are to be included under the phrase -other BHC mesmer,( ,e e d e fin itio n belov) i f they are 25 percent or more owned by the foreign - - s a r d l e s s o f U .S . bank s u b s id ia r ie s and t h e ir s u b s i d i a r i e s BHC paren t company, r e g a r d le s ow nership in such c o r p o r a tio n s . o th e r BHC memoers: nhrase - o th e r BHC members" i s d efin e d fo r the pu rp oses The ph rase oc i At* (1 ) the BHC paren t company and (2 ) a l l d ir e c t of t h is r e p o r t to in c lu d e (.1/ - 6 - indirect su bsid iaries of the BHC through the f i r s t three tie rs of that BHC* s sub s id ia r ie s . Organizations operating under Sections 25 or 25(a) of the Federal Reserve Act (Agreement or Edge Act Corporations) are to be included under the phrase “other BHC members*’ i f they are 25 percent or more owned by the foreign BHC parent company, regardless of U.S. bank su bsidiaries and their su bsid iaries ownership in such corporations. The phrase other BHC members excludes those e n tit ie s which f a l l under the d e fin itio n set forth above of U.S. bank subsidiaries and their su b sid ia rie s. Delinquent, nonperforming, and renegotiated a s s e ts : The phrase “delinquent, nonperforming, and renegotiated a sse ts" is defined for the purposes of th is report to include the follow ing: (1) Loans that are contractually past due 60 days or more as to in tere st or principal payments. (2 ) Assets considered to involve “ troubled debt restructuring*' under the provisions of Financial Accounting Standards 3oard Statement No. 15 or other debt restructuring that provides for f u ll repayment under modified terms. This would include any “ workout” s itu a tio n s . (Do not include debt for which the e ffe c t iv e in te re st rate has been reduced so le ly as a resu lt of changes in current market in te re st rates rather than changes in the debtor's fin an cial condition or a b ilit y to pay normal r a t e s .) (3 ) Other assets which would be considered nonperforming by the subject organ ization 's own internal audit or loan review s t a f f . (4 ) A ssets that could reasonably be expected to meet any of the foregoing c r it e r ia at any time in the foreseeable fu tu re. Total bank equity: Total equity capital as i t is reported on the most recent bank regulatory Consolidated Report of Condition for a Bank and i t s Foreign and Domestic Subsidiaries. # -7 DETAILSD INSTRUCTIONS SECTION I - ASSET TRANSFERS Types of transfers to be reported. Intercanpany transfers of loans, lease re ce iv a b le s, re a l e s t a t e , s e c u r itie s , equipment, or any other assets not s p e c ific a lly excluded in the following in structions are to be reported in Section I . Asset transfers are usu ally two*"sided in that one asset is exchanged fo r another. For example, a loan may be transferred in exchange for cash, another loan, or some other noncash a s s e t. (Noncash assets include loans, re c e iv a b le s, s e c u r it ie s , le a s e s , real e s ta te , and equipment.) I f a noncash a sset is exchanged fo r cash, report tne transfer of the noncash a sse t, but not the tran sfer of cash. I f a noncash asset is exchanged for another noncash a s s e t, both sid es of the tran sfer should be reported. I f an asset is transferred more than once during the period, each transfer should be reported. Asset transfers which should not be reported in Section I . Do not report the following types of asset transfers in Section I of th is report: 1. Transfers of cash and U.S. Treasury s e c u r itie s . 2. Obligations of oth ef 0 . S. government agencies and corporations. a. Notes issued and insured by the Farmers Home Administration and instruments (c e r t ific a t e s of b e n e fic ia l owxership and note insurance contracts) representing an in tere st in these notes. b. Pooled mortgages against « i c h c e r t ific a t e s guaranteed by the G o v em en t National Mortgage A ssociation (GNMA) have been issued. c. Mortgage-backed bonds issued by the Federal 'national Mortgage A ssociation or by the Federal Home Loan Mortgage Corporation (FHLMC) that are guaranteed by the GNMA. d. Pooled mortgages against waich c e r t ific a t e s are issued and guaranteed by the FHLMC. -3 - 3. Federal funds transactions. 4. Loans or sec u rities sold under agreements to repurcnase or purchased under agreements to r e s e ll unless sucn loans or sec u rities are delinquent, nonperforming, or renegotiated^ 5. Intercompany loans or advances, that i s , direct loans or advances made by one member of the BHC to another member of the BHC. (Report intercompany loans and advances in item 2 of Section I I . ) 6. Asset transfers that have been formally approved by federal bank regulatory a u th o ritie s. 7 * Asset transfers where one member of the BHC acts as a purchasing agent for another member of the BHC. Do not report a ssets purchased by one member of the BHC with the intention that they be transferred or sold immediately (within seven calendar days of the purchase) to another member. However, i f assets were purchased for a member's ovn account but were transferred to another member more than seven calendar days a fte r the date of the i n i t i a l purchase, the transfer must be reported in Section I . 3. loan p articip ation s (th at i s , loans that are made in cooperation with and shared with at le a st one other lender) that are shared by members of the BHC at the time of loan o rig in a tio n . Do not report purchases at origination of p articipation s m a pool of se c u ritie s or loan s. However, transfers between members of the BHC of any existin g in terest in a p articip ation or pool of loans or s e c u ritie s are to be reported i f such a transfer occurs nor® than seven calendar days a fter the date on vfaich the participation or in terest in the pool vas purcnased. Size C r ite r ia . Under items 1-3 of th is section include only individual inter company transactions that involve the transfer of $100,000 or more in a s s e t s . Transfers should be included i f at lease one side of the transaction involves the transfer of $100,000 or m re in a s s e ts . The transfer of a g r « p of a s s e t s , such as a group of loans or s e c u r itie s , sh all be considered an individual transaction the assets are purchased (1) as a grasp, (2) as a single package, or (3) their purchase is negotiated on a grcxip b a sis. 9- C alculation of a sse t transfer to ta ls should be based on the value of the asset as carried on the book3 of the transferor (at the time of the tran sfer) gross of any reserves, but net of any adjustments (such as principal repayments or charge o ffs ) h i s t o r i c a lly made on the books of the transferor* Columns A and C— Asset transfers to U.S. bank su b sidiaries and th eir su b sidiaries from other BHC members. Assets transferred to U .S. bank su b sidiaries and th e ir su b sid ia ries from other BHC members are to be reported under Column A of Section I and, i f appropriate, under Column C. Assets that were delinquent, nonperfotaxing, or renegotiated at the time of transfer are to be reported under both Column A and C. Columns B and D— Asset transfers to other BHC members from U .S. bank su bsidiaries and th eir su b sid ia r ie s. Assets transferred to other BHC members from U .S. bank su b sid ia ries and th eir su bsidiaries are to be reported under Column 3 of Section I , and, i f appropriate, under Column D. Assets that were delinquent, nonperforming, or renegotiated at the time of transfer are to be reported under both Columns B and 0 . D etailed item in stru c tio n s. 1. S e c u r itie s . Report the book value (as carried on the books of the trans feror at the time of tra n sfer) of a ll s e c u r itie s (except as noted below) that were transferred during the p eriod. Include the ob ligation s of states and p o lit ic a l subdivisions of the U.S. or of foreign countries or other foreign p o lit ic a l subdivisions, and any other bonds, notes, debentures, or corporate stock -1 0 - Ex elude the following from th is item: (1) U .S. Treasury se cu ritie s and obligation s of other U.S. government agencies and corporations; (2) s e c u ritie s issued by the foreign BHC parent company or any of i t s d irect or indirect sub s id ia r ie s (to be reported in item 3 , "Other a s s e t s " ) ; and (3 ) se cu ritie s sold (purchased) under agreements to repurchase ( r e s e l l) unless these se cu ritie s were delinquent, nonperforming, or renegotiated. 2. Loans, lease receivables, and other assets that represent extensions of credit Report the book value (as carried on the books of the transferor at the time of tra n sfer) of a l l loans, lease financing receivables, and other assets that represent extensions of cred it resu ltin g either from direct negotiations between lender and borrower or from the purchase of loan assets from other lenders. Loans include extensions of cre d it in the form of promissory notes, acknowledgments of advances, due b i l l s , and sim ilar obligations (w ritten or o r a l) , as w ell as more marketable instruments such as commercial paper and bankers' acceptances. Transfers between U.S. bank su bsidiaries and th eir su bsidiaries and u other BHC members of any existin g in tere st in a participation or pool of loans or se c u ritie s are to be reported i f such a transfer occurs more than seven calendar days a fte r the date on tfiich the participation or in tere st in the pool was purchased. However, loan participations that are shared with other BHC memoers and are purchased at the time of loan origin ation should not be reported in Section I . 17 Loan p articip atio n s are loans that are made in cooperation with and shared with at le a st one other lender. -1 1 - Ex elude the following from t h i 3 item: (1) Deposits at financial in s t it u t io n s , and (2) Federal funds sold and se c u ritie s purchased under agreements to r e s e l l , unless these s e c u ritie s were delinquent, nonperforming, or renegotiated. 3. Other A sse ts. Report the book value (as carried on the books of the trans fero r at the time o f tra n sfer) o f premises, furniture and fix tu r e s, real esta te owned other than premises, debt or equity se c u ritie s issued by the foreign BHC parent company or any of i t s d irect or indirect su b sid ia rie s, or any other a ssets that have been transferred during the period that cannot be properly reported against items 1 and 2 , above. Real esta te owned other than premises would include a l l amounts representing investments, loan s, or other assets based on properties that - disregarding the manner of h oldin g, the form of conveyance, or A e th e r a deed has been delivered— properly should be considered as sold or transferred (d ir e c tly or in d ir e c tly ) , but where the lik elih ood e x is ts that the properties v i l l have to be taken over by the reporting e n t it y . This item should also include those sa les or transfers in which someone other than the reporting e n tity takes t i t l e fo r the convenience of the reporting e n t it y . A l i s t of a sset transfers which should not be reported in Section I is 4. provided on page 7 • Large asset tra n s fe rs . C or D of Section I that « s I f any a s s e t(s ) of the type reportable under Columns transferred between (1 ) any individual U .S. bank sub sid iary or one of i t s su b sid iaries and (2 ) other BHC members during the period is greater than one percent ( 1 . 02 ) of the t o ta l equity of that bank or $2 m illio n , whichever is le s s , the respondent should provide the following information on a - 12 - separate page to be attached to the report form: (1) the amount and date of each transfer making up the to ta l reported, (2) the names of the organizations involved in each tra n sfe r, and (3 ) a b r ie f statement as to the purpose of the tra n sfe r. It should be noted that the reporting requirements set forth in th is item apply to the transfers of individual U.S. bank su b sidiaries (o r th eir su b sid iaries) rather than to aggregate transfers by a ll U. S. bank su b sid ia r ie s. -1 3 - SECTION I I . — OTHER INTERCOMPANY TRANSACTIONS AND 3ALANCZS Instructions for calcu latin g average balances for Section I I . II, Under Section items 2, 3, and 5, average balances outstanding during the period are to be reported. Averages for the period should be calculated using (1) d a ily balances or (2 ) weekly balances as of the close of business on each Wednesday fa llin g in the reporting period. 1. Expenses recognized by U .S. bank su b sid iaries and their subsidiaries associated with amounts paid or owed to other BHC members during reporting period. Report under item 1(a) to ta l in tere st paid or owed to other BHC members during the period. This would include in te re st from loans, advances, or other extensions of cre d it to U .S. bank su b sidiaries and th eir s u b sid ia r ie s. A ll in te re st payments reported in th is item must be c la s s ifie d as an in te re st expense by a U .S. bank subsidiary or one of i t s su b sid ia r ie s. Consequently, in te re st on any in terest-b earin g o b ligation issued by U.S. bank su bsidiaries and th e ir su b sid ia ries should be included in th is item. However, in te re st on a parent company p a rticip ation in third-party debt, in viiich a U.S. bank subsidiary or one of i t s su b sidiaries is the lead bank, should not be reported even i f a subsidiary bank "guaranteed" the debt. Report under item K b ) management and other service fees paid or owed to other BHC members during the period for services rendered to U.S. bank su b sidiaries and th eir s u b s id ia r ie s . Include fees charged for management and advisory s e r v ic e s , data processing serv ice s, loan serv icin g , and so forth . Report under item 1(c) a l l other expenses recognized during the period that cannot be properly reported against items 1(a) or 1 (b ), but vixich are associated with amounts paid or owed to other BHC members during the period and - 14- viiich « r e c la s s ifie d as an expense by U.S. bank su bsidiaries and their sub s id ia r ie s . Includes operating lease payments and fin d e r 's fees for loans originated Exclude bank subsidiary dividend payments from th i 3 item. 2. Intercompany l i a b i l i t i e s and claim s. Report under item 2 .a ( l ) the average amount outstanding during the period of deposits at U.S bank su b sid iaries and: th eir su bsid iaries due to other SHC members. Report under item 2 .a (2 ) the average amount outstanding during the period of nondeposit l i a b i l i t i e s of U.S. bank su b sidiaries and their su b sid iaries due to other 5HC members. Include the following l i a b i l i t i e s in th is item: 1. Subordinated notes and debentures. 2. Loans or se c u ritie s sold under agreements to repurchase (whatever the maturity of the repur chase agreement). 3. A ll borrowings including promissory notes, due b i l l s , or any other instrument issued fbr the purpose of borrowing money. Exclude the following from this item: 1* Contingent l i a b i l i t i e s . 2. Noncapitalized lease o b lig atio n s. Report under 2 . b ( l ) the average amount outstanding during the period of deposit claims o f U.S. bank subsidiaries and th eir subsidiaries due from other BHC members. Include cred it balance claims at U.S. agencies of the foreign SHC parent company. Report in terest-bearin g balances under 2 . b ( l ) ( a ) . Report noninterest-bearing balances under 2 .b ( l ) ( b ) . 15- Report under 2.£>(2) the average amount outstanding during the period of nondeposit claims of U .S. bank subsidiaries and th eir su b sid iaries due from other 3HC members. Include loans in th is item. Loans are extensions of cred it resu ltin g eith er frcm direct negotia tion s between lender and borrower or from the purchase of loan assets from other len d ers. Loans include extensions of cred it in the form of promissory n otes, acknowledgments of advances, due b i l l s , and sim ilar ob ligation s (w ritten or o r a l ) , as well as more marketable instruments such as commercial paper and bankers' acceptances. Exclude contingent l i a b i l i t i e s and noncapitalized leases 3. from th is item . q.s. bank su b sid iaries and th eir su b sid ia rie s' p articip ation in loans orginated or syndicated by other BHC members. Loan participations are loans that are made in cooperation with and are shared with at le a s t one other lender. Loan p articip ation s should be reported under item 3 only i f both ( l ) a U.S. bank subsidiary or one of i t s su b sidiaries and (2 ) one of the other BHC members have a share in the loan . P articipations in pools of loans and s e c u r itie s should be reported only i f a member of the holding company rather than an unrelated in s titu tio n manages such a pool. Report under item 3(a ) the average amount outstanding during the period of loan p articip ation s on the books of U.S. bank su b sid iaries and th eir su b sid ia ries that were originated or syndicated by and were shared with other BHC members. Report under item 3(b ) the amount outstanding at the end of the period of loan p articip ation s on the books of U .S. bank su b sidiaries and th eir subs id ia r ie s that were orginated or syndicated by and vere shared with other BHC members. -1 6 - 4. Period-end amount of a ll outstanding loans, unused commitments, "guarantees, “ or standby le tte r s of credit made by U.S. bank subsidiaries and th eir subsidiaries in connection vith credit extended by third parties to other BHC members. Report the amount of a i l outstanding loans or other ob ligation s (both balance sheet and contingent o b lig atio n s) made by U .S. bank su b sid iaries and th eir su b sid iaries in connection with cred it extended to other BHC members by third p a r tie s . Loans are extensions of cred it resu ltin g eith er from direct negotia tions between lender and borrower or from the purchase of loan assets lenders. from other Loans include extensions of cred it in the form of promissory notes, acknowledgements of advances, due b i l l s , and sim ilar o b lig atio n s (w ritten or o r a l ) , as well as more marketable instruments such as commercial paper and bankers' acceptances. The obligation s of U.S, bank su bsidiaries and th e ir su b sid iaries would include, but would not be lim ited to , loans, commitments for loans (unused portion o n ly ), *' guar antee s , “ and standby le tt e r s of c r e d it . Report the period-end amount of unused commitments made by U.S. bank subsidiaries and th eir subsidiaries to lend funds to a third party tfiere the commitments were originated in connection with that third party's extension of cred it to other BHC members. Include as commitments only o f f i c i a l promises to lend that are expressly conveyed, o r a lly or in w riting, to the third party. Such commitments are usually in the foim of a formally executed agreement or a le t t e r signed by an o f f i c e r (of a U.S. bank subsidiary or i t s su b sid ia ry ). Oral commitments made by o ffic e r s to a third party (customer) are usually accompanied by some documentation for tne bank's own records such as a notation in the customer's cred it f i l e . 17 Exclude authorizations (in tern al guidance lin e s) in which the customer is not informed of the amount. Exclude cases such as those in which loan funds are temporarily unavailable pending loan committee approval. Include only unused commitments (th a t i s , amounts s t i l l availab le under commitment arrangements, but not borrowed as of the date of re p o rtin g ). Exclude any takedowns, exp iration s, or c a n c e lla tio n s. Do not omit commitments merely because they are not le g a lly binding or do not require a commitment fe e . Report the period-end aooiait of any **guarantee s'* or sim ilar arrange ments, however naned or described, that represent contracts under which U.S. bank su b sid iaries and th eir su b sid iaries are obligated to make payment to third parties contingent upon the fa ilu r e of other BHC members to perform under th eir contract with that third party. For example, guarantees may o b lig ate U.S. bank su b sid iaries and th eir su b sid iaries to make payments to third parties in the event that other BHC meabers d efau lt on loans or debentures. Include the outstanding amount of standby le tt e r s of cred it or sim ilar arrangements, however named.or described, that represent ob ligation s on the part of U.S. bank su b sid ia ries and th eir su b sid iaries to make payment to , or to the order o f , a designated third party (•‘beneficiary*4) contingent upon the fa ilu re of other BHC members to perform under the terms of the la t t e r 's underlying contract with the b e n e fic ia ry . The underlying contract may e n ta il eith er fin an cial or nonfinaneial undertakings of other BHC members with the b en e ficia ry . For example, standby le t t e r s of c r e d it may o b lig a te U.S. bank su b sid iaries and th eir su b sid iaries to make certain payments to the beneficiary in the event of default or nonperformance by other BHC members on a loan . 5. Compensating balances. Report under item 5(a) the average amount of compensating balances maintained by U.S. bank su bsidiaries and th eir su b sidiaries with unrelated oanks during the reporting period to secure lin e s of cred it or other services for other BHC members. The amount reported should equal the amount of compensating balances required, i f any, by the unrelated bank for the line of cred it or other services minus any balances d ire c tly maintained by other BHC members for such services at that bank. Except as provided in the following paragraph, i f there is no e x p lic it or im p lic it understanding between the unrelated bank and other BHC members or U .S. bank su b sidiaries and th eir su b sid ia r ie s, regarding any minimum compensating balances, then the response to the question would be zero. I f the unrelated bank has extended a lin e of cred it to other BHC members and does not require a compensating balance because U.S. bank su bsid iaries and th eir su bsidiaries maintain correspondent balances with the unrelated bank, then estimate the amount of compensating balances that would have been required had a U .S. bank subsidiary or one of i t s su b sid iaries not maintained correspondent balances; subtract from that amount any balances d ir e c tly maintained by other BHC members at the unrelated bank and report the d iffe r e n c e . Report under item 5(b ) the amount of compensation from other BHC members, i f any, recognized during the reporting period by U.S. bank su b sid iarie and th eir su b sid iaries for maintaining the balances reported in item 5 ( a ) . -1 9 - SECTION I I I . FOREIGN EXCHANGE TRANSACTIONS I f the number one is entered in C ell 27 or 28, Items 1 and 2, Section I I I , respondent must answer Items 3 -5 , Section I I I . In both c e l l s , 1. the I f the number two has been entered the respondent is not required to answer these additional item s. I f a U.S. bank subsidiary or one of i t s su b sidiaries has experienced a net rea lized lo ss o r a net unrealized lo ss on foreign exchange transactions during the period, the number one should be entered in Ceil 27. I f there was not a net lo ss during the period, enter the number two in th is c e l l . Net realized lo s s for the period would be equal to the d ifferen ce between realized gain and re a lize d lo sse s on a ll spot and forward exchange contracts that matured during the period. Net unrealized lo ss for the period would be equal to the difference between unrealized gain and unrealized losses as of the end of the reporting period on a l l unmatured foreign exchange con tracts. 2. I f a U .S. bank subsidiary or one of i t s su b sid iaries were a party to any foreign exchange transactions during the period at non-market rates with other 3HC members or i f such a transaction has been revalued at non-market r a te s , the number one should be entered in C ell 28. I f no such transactions occurred during the period, enter the number two in th is c e l l . Non-market rates are defined as (1 ) rates which d i f f e r from those rates used contemporaneously for trading with parties u n a ffilia te d with the BHC, or (2) rates which d iffe r from those normal, p re v a ilin g , and simultaneous market rates for arms-length transactions between u n a ffilia te d organ ization s. -2 0 - 3. Total volume of foreign exchange contracts negotiated during reporting period by U .S. bank subsidiaries and th eir su b sid ia rie s. Report the to ta l volume of foreign exchange contracts negotiated during the reporting period by U.S. bank su b sid iaries and th eir su b sid ia rie s. Report gross purchases and gross sa le s (book value at the date of negotiation) effe cted during the reporting p eriod. 4. Include spot and forward transactions. Total volume o f foreign exchange contracts negotiated during reporting period by U .S. bank subsidiaries and th eir subsidiaries with other BHC members. Report the to ta l volume of foreign exchange contracts negotiated during the reporting period by U.S. bank su bsidiaries and their su b sid iaries with other BHC members. Report gross purchases and gross sa le s (book value at the date of negotiation ) effe c ted during the reporting period. Include spot and forward tran saction s. 5. Realized and unrealized gain (lo s s ) o f U .S. bank subsidiaries and th eir subsid iaries during reporting period derived from foreign currency tran saction s. Report under item 5(a ) the aggregate realized gain (lo s s ) of U .S. bank su b sid iaries and th eir su bsidiaries during the reporting period on a ll spot and forward foreign exchange contracts that matured during the reporting period. Losses should be shown in parentheses. Report under item 5(b) the aggregate unrealized gain (lo s s ) of U.S. bank su b sid iaries and th eir su bsidiaries during the reporting period on a ll existin g for ■ward foreign exchange contracts that have not matured during the reporting period. For any forward contract, unrealized gain ( lo s s ) s h a ll be determined by multiplying the foreign currency amount of the forward contract by the differen ce between (1 ) the forward rate at which *hich the contract was negotiated and (2 ) the forward rate for that foreign currency as of the reporting date. Losses should be shown in parentheses.
@FedFRASER