Banks gear up for commercial paper underwriting
Article Abstract:
Political activity indicates that the federal government may soon allow banks to underwrite commercial paper issued by corporate clients seeking financing. Senator William Proxmire of Wisconsin, the new Senate Banking Committee chairman, is scheduling hearings to increase banks' powers and marketing activities. The Federal Reserve has held a commercial paper underwriting hearing attended by Citicorp, Bankers Trust, and Morgan Guaranty. A US Appeals Court upheld Bankers Trust Companies' right to conduct commercial paper activity in Dec 1986. New York State is allowing subsidiaries of state-chartered banks to underwrite otherwise prohibited securities. The US Supreme Court has ruled that banks operating as discount brokers are not subject to interstate branching limitations applied to other banks. These and similar activities that are opening the door to banks' underwriting of commercial paper are discussed.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1987
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Taxable alternatives developing for doomed tax-exempt bonds
Article Abstract:
Industrial development bonds (IDBs), those securities issued by municipalities and local governments in an effort to entice specific corporations to locate within their jurisdictions, may either be eliminated or become taxable, if legislation pending before Congress is enacted. The taxation of these bonds, rather than their demise, is supported by the National Association of State Development Agencies, which is actively lobbying in support of corporations that issue IDBs in conjunction with local governments. Arguments for and against taxation of IDBs, and the identification of political groups on the issue are discussed.
Publication Name: Cashflow Magazine
Subject: Business
ISSN: 0196-6227
Year: 1986
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