March 27, 1990
TO: SEC RULES COMMITTEE NO. 18-90
RE: BILL TO PROHIBIT SALES OF SECURITIES ON BANK PREMISES
__________________________________________________________
Representatives Schumer and McMillen have introduced a bill
that would ban offers and sales of securities issued by
"affiliates" of depository institutions in any part of the
institution's offices "commonly accessible to the general public
for the purpose of accepting deposits" (e.g., bank lobbies). A
copy of the bill and statements of Representatives Schumer and
McMillen are attached.
We have been informed that there is a possibility that an
amendment will be offered to this bill that would prohibit sales
of unaffiliated securities that are not federally insured on bank
premises unless the purchaser first signs a waiver that discloses
that the securities are not insured.
We will keep you informed of developments.
Craig S. Tyle
Associate General Counsel
Attachment