Federal Reserve Guidance on Private Banking Requires New Due Diligence from Banks

On June 30, 1997, the Division of Bank Supervision and Regulation, Board of Governors of the Federal Reserve System, issued guidance to each officer in charge of supervision at each Federal Reserve Bank, providing for the supervision of private banking activities experiencing dynamic growth. The guidance will have important ramifications for how banks and persons under the supervision of the Federal Reserve Bank operate, inevitably impacting international bank supervision and eventually non-bank financial supervision... [more]