Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies Engaged in Underwriting and Dealing in Securities

Summary

The Federal Reserve Board is increasing the revenue limit for nonbank subsidiaries of bank holding companies from 10% to 25% to prevent them from engaging in underwriting and dealing in securities that member banks are not allowed to. This change aims to ensure compliance with the Glass-Steagall Act and is based on the Board's experience supervising these subsidiaries since 1987.