OTS rescinds capital requirement at H&R Block

KANSAS CITY, Mo. - Tax preparation firm H&R Block Inc. said Friday the Office of Thrift Supervision has rescinded a rule requiring the company to hold a 3 percent tangible capital reserve.

The requirement was repealed after H&R Block completed the sale of its mortgage servicing business, which operated under its Option One Mortgage unit. The sale, coupled with deleveraging at H&R Block reduced the company's risk profile, enabling the OTS to lift the requirement.

The capital requirement had also prevented H&R Block from repurchasing stock until it met the 3 percent rule.

The OTS typically requires financial firms it regulates to hold a 1.5 percent tangible capital reserves. The tangible capital ratio measures tangible capital compared to a company's total assets.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.