10 Percent Revenue Limit on Bank-Ineligible Activities of Subsidiaries of Bank Holding Companies Engaged in Underwriting and Dealing in Securities — 1996-09-17 [96-23728]

The Board is adopting a change in the manner in which interest earned on certain securities held by a company in an underwriting or dealing capacity is treated in determining whether the company is engaged principally in underwriting and dealing in securities for purposes of section 20 of the Glass-Steagall Act. In order to ensure compliance with section 20, the Board requires that the revenue a company derives from underwriting and dealing in securities that a member bank may not underwrite or deal in (ineligible securities) not exceed 10 percent of the total revenue of the company. The Board is amending its section 20 orders to specify that interest earned on the types of debt securities that a member bank may hold for its own account is not to be treated as revenue from underwriting or dealing in securities for purposes of section 20.