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During t h e course o f n§r extemporaneous remarks on yesterday I discussed the standards which are proposed i n S e c t i o n 6 o f H. R. 3351 and i n the amendments submitted a t the close o f my t e s t i m o n y . "While d i s c u s s - i n g those standards I i n a d v e r t e n t l y s t a t e d t h a t they would have t o be a p p l i e d by t h e Comptroller when c h a r t e r i n g a new n a t i o n a l bank. This was a mistake and I w i s h t o c o r r e c t i t t h i s morning by s t a t i n g t h a t these standards would have t o be a p p l i e d by t h e Comptroller o n l y i n those cases where a n a t i o n a l bank, w h i c h i s a p a r t o f a bank h o l d i n g company system, makes a p p l i c a t i o n t o e s t a b l i s h a branch or branches o f such bank. So t h a t t h e r e c o r d may be c o r r e c t on t h i s p o i n t l e t me a g a i n sum up the p r o v i s i o n s o f S e c t i o n 6 : Before a new h o l d i n g company may be organized, i t mast secure t h e permission o f t h e Board$ b e f o r e an e x i s t i n g h o l d i n g company can purchase e i t h e r the stock or t h e assets o f a bank, p e r m i s s i o n t o do so mast be obtained from t h e Boardj b e f o r e any bank i n a h o l d i n g company system nay purchase t h e assets of another bank, a p p r o v a l by t h e Comptroller o f t h e Currency mast be obtained i f t h e a c q u i r i n g bank i s a n a t i o n a l bank, a p p r o v a l by the Board must be obtained i f the a c q u i r i n g bank i s a State member bank, and approval by the FDIC must be obtained i n t h e case o f a n y o t h e r a c q u i r i n g bank. r e f e r r e d t o above mast be a p p l i e d . I n a l l o f these cases t h e standards I n a d d i t i o n , those standards mast be a p p l i e d by t h e C o m p t r o l l e r , t h e FDIC and the Board whenever an a p p l i c a t i o n t o e s t a b l i s h a branch i s r e c e i v e d from a bank w h i c h i s a l r e a d y a p a r t of a h o l d i n g company system.
@FedFRASER