Bank holding companies approved to offer corporate underwriting services in the U.S. cannot generate revenues from this activity greater than 10 percent of all revenues flowing through their underwriting subsidiary.

Question

Quizplus · Accepted Answer

Bank holding companies approved to offer corporate underwriting services in the U.S. can generate revenues from this activity, but the limitation is that underwriting and dealing revenues cannot exceed 25 percent of the total revenues of the subsidiary, not 10 percent. This is in accordance with the regulations set forth by the Federal Reserve under the provisions of Section 20 of the Glass-Steagall Act, as modified by the Gramm-Leach-Bliley Act of 1999.

Bank Holding Companies Approved to Offer Corporate Underwriting Services in the U.S