- summarizes the GSA and provides guidance to OCC examiners for evaluating compliance with GSA regulations.
- provides guidance to OCC examiners for evaluating compliance with the applicable sections of the record-keeping and confirmation requirements of 12 CFR 12 (for national banks) and 12 CFR 151 (for FSAs) and the government securities sales practices (suitability requirements) of 12 CFR 13.
After a succession of highly publicized failures of government securities broker and dealers in the mid-1970s to the mid-1980s, Congress exercised its authority over the largely unregulated government securities market by passing the GSA (15 USC 78o-5). The GSA directed the Secretary of the Treasury to write regulations for the government securities market, and the OCC is statutorily required to enforce the regulations as they apply to OCC-supervised banks. The GSA regulations apply to dealer banks, as well as banks with limited government securities activities (non-dealer banks). In particular, non-dealer banks are subject to GSA regulations related to hold-in-custody repurchase agreements, due bills, large position reporting, custodial holdings of government securities, and record-keeping requirements. Throughout the booklet, reference is made to the applicability of the GSA regulations to dealer banks and non-dealer banks. In addition, the booklet contains separate examination procedures for dealer banks and non-dealer banks.The issuance of this booklet rescinds the following guidance:
- The “Securities Activities” booklet of the Comptroller’s Handbook for Compliance.
- Pages 37-41 of the “Investment Securities” booklet of the Comptroller’s Handbook. The remainder of this booklet will be rescinded when the updated “Investment Securities” booklet of the Comptroller’s Handbook is issued.
- OTS Examination Handbook, section 563, “Government Securities Act” (and related program and appendix).
- Advisory Letter 1997-5, “Treasury’s Large Position Record-Keeping and Reporting Rules” (May 15, 1997).”