NR 2000-68
FOR IMMEDIATE RELEASE
Contact:  Robert M. Garsson, (202) 874-5770
September 11, 2000



OCC Responds to Chairman Leach's Questions
About Bank Holdings of Securities for Hedge Purposes


WASHINGTON -- Comptroller of the Currency John D. Hawke, Jr. sent
the attached letter to House Banking Committee Chairman James A. Leach 
responding to questions about an OCC determination concerning bank holdings 
of securities for the purpose of hedging customer-driven, bank permissible 
equity derivative transactions.  The letter notes that that these carefully 
limited transactions have no implications at all for bank involvement in 
merchant banking or for breaching the wall between banking and commerce.


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The OCC charters, regulates and examines approximately 2,400 national banks 
and 58 federal branches of foreign banks in the U.S., accounting for more 
than 57 percent of the nation's banking assets. Its mission is to ensure a 
safe and sound and competitive national banking system that supports the 
citizens, communities and economy of the United States.