Circular
Instructions for Reporting Trust Preferred Securities
July 8, 2003
Circular No. 11526

To All Depository Institutions and Others Concerned in the Second Federal Reserve District:

In a supervisory letter (SR 03-13) dated July 2, 2003, the Federal Reserve Board confirmed the instructions for reporting trust preferred securities on schedule HC-R of the Consolidated Financial Statements for Bank Holding Companies (FR Y-9C).

The Federal Reserve is aware that Financial Accounting Standards Board Interpretation No. 46 (FIN 46) may have implications for how trust preferred securities are reported on bank holding companies’ financial statements. In addition, Financial Accounting Standard 150 (FAS 150) issued earlier this year provides accounting guidance that reflects the reporting of trust preferred securities. Until form changes can be implemented to the FR Y-9C, organizations should continue to follow the form’s current instructions for the reporting of trust preferred securities.

The Federal Reserve will review the regulatory implications of any accounting treatment changes and, if necessary or warranted, will provide further appropriate guidance.

The reporting instructions for Schedule HC-R of the FR Y-9C are available in the Consolidated Financial Statements for Bank Holding Companies.

Questions on this matter may be directed at this Bank to Dianne Dobbeck, Bank Supervision Officer, Policy and Analysis Function.