Before writing the post "Reg T and Social Security" a couple of weeks ago, I wrote the Federal Reserve to confirm that it had the power to change margin requirements. Yesterday, the Fed wrote back:
The margin requirements for broker-dealers and other lenders found in Federal Reserve Regulations T and U can be raised or lowered by the Board of Governors of the Federal Reserve System. The last change, a decrease from 65 to 50 percent, occurred in 1974.
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