September 24, 1990
TO: BOARD OF GOVERNORS NO. 68-90
SEC RULES COMMITTEE NO. 53-90
RE: FED AUTHORIZES EQUITY UNDERWRITING FOR SECTION 20
SUBSIDIARY
__________________________________________________________
The Federal Reserve Board has given final approval for a
bank holding company subsidiary, J.P. Morgan Securities Inc., to
engage in underwriting and dealing in equity securities. A copy
of the Board's letter granting approval is attached. The Board
previously had approved the application of J.P. Morgan, along
with those of four other bank holding companies, to engage in
underwriting and dealing in both debt and equity securities;
however, the Board delayed final approval with respect to equity
securities activities until such time as it determined that each
applicant had established the necessary managerial and
operational infrastructure. (See Memorandum to Board of
Governors No. 5-89 and SEC Rules Committee No. 5-89, dated
January 19, 1989.)
The Board's action leaves mutual fund sponsorship and
underwriting as the only significant securities activities not
authorized for bank holding company affiliates.
Craig S. Tyle
Associate General Counsel
Attachment