Federal Reserve Board Seeks Comment on Proposed Repeal of Regulation Q

The Federal Reserve Board has issued a request for comment on proposed amendments that would repeal Regulation Q, Prohibition Against Payment of Interest on Demand Deposits. Regulation Q currently prohibits financial institutions that are members of the Federal Reserve System to pay interest on demand deposits. The amendments are being proposed in response to Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which is set to repeal Section 19(i) of the Federal Reserve Act in its entirety effective July 21, 2011. The repeal of this section of the Federal Reserve Act eliminates the authority of the Federal Reserve Board to promulgate Regulation Q.

Comments on the proposed amendments must be submitted within 30 days from the date of publication in the Federal Register (date of publication was April 14, 2011).

If you have questions on the impact of these proposed amendments, please contact the experts listed below at (800) 270-9629. To receive banking updates from PYA on Twitter, click here.

WE ARE REQUIRED BY IRS CIRCULAR 230 TO INFORM YOU THAT THE FOLLOWING DISCUSSION WAS NOT INTENDED OR WRITTEN TO BE USED, AND IT CANNOT BE USED, NOR RELIED UPON,BY ANY TAXPAYER FOR THE PURPOSE OF AVOIDING ANY PENALTIES THAT MAY BE IMPOSED UNDER FEDERAL TAX LAW. THE ADVICE WAS WRITTEN TO SUPPORT THE PROMOTION OR MARKETING OF THE TRANSACTIONS OR MATTERS ADDRESSED IN THE DISCUSSION. EACH TAXPAYER SHOULD SEEK ADVICE BASED ON ITS PARTICULAR CIRCUMSTANCES FROM AN INDEPENDENT TAX ADVISOR.


Mike Shamblin

Mike Shamblin

Managing Principal of Audit & Assurance Services

Matt Neilson

Matt Neilson

Principal

Share This Insight

If you received value from this article, please share it with your network (e.g., Facebook, Twitter, LinkedIn). Icons below for your convenience.

Stay Current

* indicates required
Monthly eNewsletters
See more newsletter and alert options.

PYA Population Health Ascend

PYA Healthcare Blog

PYA Thought Leadership Services

The Healthcare Loop