CPE study notes

Question 1

Reg W

Answer 1

23A - requires collateral for all credit related covered transactions.
Limits covered transactions between affiliates and Bank
23B - ensures transactions between Bank and affiliates are at arms length and at fair value. ie. asset sale, tax sharing

Question 2

Reg W. There are 4 couples. Three have over 25% ownership with combined last names (couple). One member sells shares to another. Figure out who has to notify the Fed for change.

Answer 2

It is the woman selling out and reducing her ownership below 25%

Question 3

Intercompany transactions subject to 23A & B

Answer 3

affiliate transactions, fees paid by subs, tax allocation, purchase/swap of assets, compensating balances, other expense allocations