SEC Extends Temporary Exemption for Banks

The SEC extended the temporary exemption of banks from the definition of "broker" until Sept. 28.  The SEC and Federal Reserve Board apparently need still more time to review public comments on proposed rules implementing the bank broker exemptions in section 3(a)(4) of the Exchange Act added by Gramm-Leach-Bliley.  The agencies have been so slow in implementing these rules that Congress enacted legislation in October 2006 mandating prompt implementation.