Circular
Derivative Contracts Hedging Trust Preferred Stock
April 2, 2002
Circular No. 11432

To All State Member Banks and Bank Holding Companies in the Second Federal Reserve District:

In a Supervisory Letter, the Federal Reserve Board states the conditions under which trust preferred stock issues that are covered by an interest rate derivative contract are includable in Tier 1 capital.

Questions on the matter may be directed, at this Bank, to Dianne Dobbeck, Staff Director, Policy and Analysis.