Revision and interpretation of Regulation K. (Announcements).The Federal Reserve Board on January 6, 2003, approved revisions to Subpart D of Regulation K, governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. international banking operations. The final rule reduces the regulatory burden on banking institutions engaged in international lending by simplifying the requirements concerning accounting for fees on international loans to make the regulation consistent with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). The final rule will become effective thirty days after publication in the Federal Register, which is expected shortly. The Federal Reserve Board on February 7, 2003, issued an interpretation concerning securities underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. by banking organizations that are subject to the Bank Holding Company Act. The interpretation clarifies that a banking organization that wishes to engage in underwriting securities that are to be distributed in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. must be either a financial holding company or have authority to engage in underwriting activity under section 4(c)(8) of the Bank Holding Company Act. |
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