Enter Search TextSubmitSearch Advanced Search     Home     Deposit Insurance     Consumer Protection     Industry Analysis     Regulations & Examinations     Asset Sales     News & Events     About FDIC

		Home > Regulation & Examinations > Laws & Regulations > FDIC Law, Regulations, Related Acts

FDIC Law, Regulations, Related Acts

[Main Tabs]     [Table of Contents - 4000]     [Index]     [Previous Page]     [Next Page]     [Search] 4000 - Advisory Opinions Mutual Fund Investments Permissible for Insured State Banks FDIC--93--12 February 12, 1993 Pamela E. F. LeCren, Counsel   The following letter is being sent to you in response to your January 25, 1993 letter to the FDIC and will serve to confirm my understanding of your recent telephone conversation with Ms. Cheryl Steffan, Review Examiner, Division of Supervision, Washington, D.C. regarding Part 362 of the FDIC's regulations.   Specifically, you inquired of Ms. Steffan as to the inclusion of the *** "Variable Rate Government Fund" in the 100% limitation for investments in common stocks under Part 362 of the FDIC's rules and regulations. She indicated that if an investment is permissible for a national bank, the limitations provided under Section 362.3(d)(4) do not apply. Thus, provided the *** fund referred to is in fact a permissible investment for a national bank a state bank may invest in this fund as well as hold 100% of tier 1 capital in other common or preferred stocks or shares of certain investment companies which are not permissible investments for a national bank. This is the case even though the investment in the *** fund is listed on the call report in the equity investment section. She also cautioned you, however, that any investment should be consistent with safe and sound banking practices in type and amount.   It is my understanding that Ms. Steffan did not opine as to the permissibility of this particular fund as an investment for a national bank, but that she did confirm with you that it was her understanding that funds which invest solely in government securities are permissible investments for a national bank. She also indicated that any limitations for an investment of this type which are imposed on a national bank would have to be adhered to.   Please be advised that the Legal Division concurs in the information provided to you over the telephone by Ms. Steffan. I hope this clarifies your understanding of the investment limitations under Part 362. Should you have any additional questions, please contact me, or any of the contact persons included in the Federal Register publications of the regulation, or the FDIC's Regional Office located in Westwood, Massachusetts. [Main Tabs]     [Table of Contents - 4000]     [Index]     [Previous Page]     [Next Page]     [Search]

regs@fdic.gov

Home    Contact Us    Search    Help    SiteMap    Forms Freedom of Information Act (FOIA) Service Center    Website Policies    USA.gov

FDIC Office of Inspector General