# Bank Holding Companies and Change in Bank Control; Securities Underwriting, Dealing, and Market-Making Activities of Financial Holding Companies
> **US Federal Reserve System** · Interim rule with request for public comments. · Published 2000-03-17 · Effective 2000-03-11 · 65 FR 14440
## Document
- **Document number:** 00-6502
- **Category:** other
- **Agency:** US Federal Reserve System
- **Federal Register citation:** 65 FR 14440
- **CFR reference:** 12 CFR 225
- **Publication date:** 2000-03-17
- **Effective date:** 2000-03-11
- **Docket:** Regulation Y
## Abstract

Underwriting, dealing in, and making a market in securities are financial activities permissible for financial holding companies under the Gramm-Leach-Bliley Act. Bank holding companies may currently engage in these activities only to a limited extent through so-called section 20 subsidiaries. Under the Board's current rules, section 20 subsidiaries are subject to eight operating standards imposed by the Board in order to address certain potential risks and conflicts associated with the affiliation of a bank and a securities firm. The Board is adopting this interim rule to impose two of these operating standards on financial holding companies engaged in securities underwriting, dealing or market-making activities. Under the interim rule, intra-day extensions of credit by a bank or thrift, or U.S. branch or agency of a foreign bank, to a securities affiliate engaged in securities underwriting, dealing, or market-making must be on market terms. In addition, foreign banks that are financial holding companies or that are treated as financial holding companies will be required to comply with certain affiliate transaction restrictions with respect to lending and securities purchase transactions between a U.S. branch or agency of a foreign bank and a securities affiliate engaged in securities underwriting, dealing, or market-making.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2000/03/17/00-6502/bank-holding-companies-and-change-in-bank-control-securities-underwriting-dealing-and-market-making)
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