Investment in Foreign Equity Securities and Debt-Equity Conversion by U.S. Banks, Bank Holding Companies, and Foreign Bank Holding Companies

Friday, January 1st, 1988 at 12:00 am by Michael Gruson
Michael Gruson, Investment in Foreign Equity Securities and Debt-Equity Conversion by U.S. Banks, Bank Holding Companies, and Foreign Bank Holding Companies, 1988 Colum. Bus. L. Rev. 441

In February, 1988, the Board of Governors of the Federal Reserve System (the ‘Board’) promulgated new regulations designed to facilitate equity investments through debt-equity conversions by banks. It is too early to tell whether these regulations will have the intended effect of encouraging foreign debt-equity conversions by U.S banks. This article discusses the rules governing investments by U.S. banks and bank holding companies in foreign equity securities, and in particular analyzes the complex regulations which control debt-equity conversions.

Author Information

Partner of Shearman & Sterling; LL.B., 1962, University of Mainz, Germany; M.C.L., 1963, Columbia; LL.B., 1965, Columbia; Dr. iur., 1966, Freie Universita? Berlin. The author is a member of the New York Bar.