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Banks' Securities Activities: Oversight Differs Depending on Activity and Regulator

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Report Type Reports and Testimonies
Report Date Sept. 21, 1995
Report No. GGD-95-214
Subject
Summary:

About 22 percent of U.S. banks offered securities brokerage services to their customers in 1994. These activities can provide diversification and additional income for banks, a more competitive securities industry, and added convenience for bank customers. However, because oversight of bank securities activities is split between bank and securities regulators, the potential exists for inconsistent regulation. GAO found that greater cooperation and coordination between regulators would help overcome this problem. This report (1) determines the extent to which banks provide securities brokerage services and how these services are regulated; (2) evaluates the completeness and results of Federal Reserve inspections of bank holding company subsidiaries that the agency authorizes to underwrite and deal in securities; and (3) evaluates the Federal Deposit Insurance Corporation's regulation of bank subsidiaries that can underwrite and deal in securities.

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