January 14, 1992
TO: BOARD OF GOVERNORS NO. 4-92
RE: CONGRESSIONAL LETTER TO FED ON SECTION 20 ORDERS
__________________________________________________________
Attached is a letter sent by the Chairmen of the House
Energy and Commerce Committee and the Subcommittee on
Telecommunications and Finance to the Chairman of the Federal
Reserve Board requesting information on bank holding company
applications to engage in securities activities pending before
the Board. It should be noted that to date the Board has not
authorized bank holding companies to sponsor or underwrite mutual
funds.
The letter states that although Congress did not pass
restructuring legislation last year and may not this year,
"initiatives designed to by-pass Congress . . . should not be
rewarded by further deregulation." The letter contains seven
specific questions on pending applications, including whether
there are any applications pending concerning mutual fund or
collective investment fund-type activities and, if so, what is
the likely outcome of such applications.
We will keep you advised of developments in this area.
Craig S. Tyle
Deputy General Counsel
Attachment