Regulatory Alerts2010-06-08
South Dakota Division of Banking Memorandum on Permissible Bank Investments in Freddie Mac Stock
The South Dakota Division of Banking issued a memorandum determining that state-chartered banks are authorized to invest in Federal Home Loan Mortgage Corporation stock. The Division concluded this authority exists because state law grants state banks the same powers as national banks as of January 1, 1999, and national banks are permitted to hold such securities under federal law. Consequently, state banks may invest in Freddie Mac stock without limit, subject to safety and soundness considerations.
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