Question

A Section 20 subsidiary of a major U.S. bank is planning to underwrite corporate securities and expects to generate $ 5 million in revenues. It currently underwrites U.S. Treasury securities and general obligation municipal bonds and earns annual fees of $ 40 million.
a. Is the bank in compliance with the laws regulating the turnover of Section 20 subsidiaries?
b. If it plans to increase underwriting of corporate securities and generate $ 11 million in revenues, is it in compliance? Would it have been in compliance prior to passage of the Financial Services Modernization Act of 1999?



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  • CreatedJanuary 27, 2015
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