A Fed policy on commercial paper was overruled.

U.S. District Judge Joyce Hens Green said the commercial paper placement activities of Bankers Trust violate the 1933 Glass Steagall Act, which forbids banks from underwriting securities. She said that a Federal Reserve Board ruling allowing Bankers Trust and other banks to place commercial paper was mistaken. Commercial paper issues are short-term promissory notes sold by corporations to raise funds.