NR 96-140
December 11, 1996

    OCC Proposes Rule For Bank Employees Who Recommend or Sell
                        Certain Securities

WASHINGTON, DC -- The Office of the Comptroller of the Currency
(OCC) has joined with the Federal Deposit Insurance Corporation
(FDIC) and the Federal Reserve Board (FRB) to propose a rule that
establishes a series of testing and qualification requirements
for bank employees engaged in direct retail solicitations,
recommendations, purchases, or sales of securities.  The proposed
rule imposes on bank employees the core testing and qualification
requirements imposed on participants in the securities industry
by the National Association of Securities Dealers (NASD) and the
other securities self regulatory organizations.

"These requirements will ensure the investing public that
securities salespersons employed by banks have the same level of
training as anyone else in the securities marketplace," said
Comptroller of the Currency Eugene A. Ludwig.  "This proposal
will remove a longstanding barrier that has prevented bank
employees from becoming licensed under the NASD's Series 6 and
Series 7 examinations."

The proposal is intended to promote safety and soundness in
banking, advance customer protection, and establish operational
and managerial standards for banks.

Banks that engage in direct retail recommendations or sales of
most securities will be required to register with their primary
bank regulatory agency as a "sponsoring bank."  The NASD
automated Central Registration Depository (CRD) system will serve
as agent for collection of filings from sponsoring banks and
their employees on behalf of the banking agencies.  The banking
agencies, however, will have access to all information on file
with the NASD through a computer linkup.

Under the proposed rule, bank employees who recommend or sell
securities will be required to pass either the Series 6 or Series
7 securities examination, depending upon the products the
employee sells.  Bank personnel who supervise such employees will
also be required to pass the same exam as the employees they
supervise.

Bank securities representatives also will generally be required
to participate in the securities industry's Continuing Education
Program.  Sponsoring banks, consistent with the existing agency
policy, will be required to provide relevant training to their
securities representatives.

                              # # #

The OCC charters, regulates and supervises approximately 2,800 national banks
and 66 federal branches and agencies of foreign banks in the U.S., accounting
for more than half the nation's banking assets.  Its mission is to ensure a
safe, sound and competitive national banking system that supports the
citizens, communities and economy of the United States.