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THE WHITE HOUSE WASHINGTON May 1 9 , 1938. My dear Mr. Chairman: The President directs me to send you the accompanying bill H. R. 7187, An Act to amend section 12B of the Federal Reserve Act, as amended. with the request that you advise him at your earliest convenience whether there is any objection to its approval. Very sincerely yours, M. H. McINTYRE Secretary to the President Honorable Marriner S. Eccles, Chairman, Board of Governors of the Federal Reserve System, Washington, D. C. 75TH CONGRESS 1ST SESSION H. R. 7187 IJNT THE HOUSE OF REPRESENTATIVES MAY 21,1937 Mr. STEAGALL introduced the following bill; which was referred to the Committee on Banking and Currency and ordered to be printed A BILL To amend section 12B of the Federal Reserve Act, as amended. 1 Be it enacted by the Senate and House of Eepresenta- 2 tives of the United States of America in Congress assembled., 3 That paragraph (7) of subsection (1) of section 12B of the 4 Federal Reserve Act* as amended (U. S. C, 1934 edition, 5 Supp. II, title 12, sec. 264), be amended by striking out 6 the word "Provided" after the colon in said paragraph and 7 inserting the following: "Provided, That after July 1, 1937, 8 and after stockholders' liability in excess of liability for pay9 ment of the stock has been eliminated by express authority 10 of law with respect to at least 70 per centum in number of 11 the insured banks, the directors of the Corporation shall 12 waive, in favor of stockholders only, any claim against them 13 to which it shall have become subrogated: Provided further,". 75TH CONGRESS 3D SESSION TJ ¥^ T 1 O T H . K. / 1o / IN THE SENATE OF THE UNITED STATES JANUARY 5 (calendar dav, APJUL 15), 1938 Head twice and referred to the Committee on Banking and Currency AN ACT To amend section 12B of the Federal Reserve Act, as amended. 1 Be it enacted by the Senate and House of Represenla- 2 lives of the United States of America in Congress assembled, o That paragraph (7) of subsection (1) of section 12B of the 4 Federal Eeserve Act, as amended (IT. S. 0., 1934 edition, 5 Supp. I I , title 12, sec. 264), be amended to read as follows: 6 "In the case of a closed national bank or District bank, 7 the Corporation, upon the payment of any depositor as pro8 vided in paragraph (6) of this subsection, shall be subro9 gated to all rights of the depositor against the closed bank to 10 the extent of such payment. In the case of any other closed 11 insured bank, the Corporation shall not make any payment 2 1 to any depositor until the right of the Corporation to be 2 subrogated to the rights of such depositor on the same basis 3 as provided in the case of a closed national bank under this 4 section shall have been recognized either by express provi- 5 sion of State law, by allowance of claims by the authority 6 having supervision of such bank, by assignment of claims 7 by depositors, or by any other effective method. In the 8 case of any closed insured bank, such subrogation shall include 9 the right on the part of the Corporation to receive the same 10 dividends from the proceeds of the assets of such closed bank 11 and recoveries on account of stockholders' liability as would 12 have been payable to the depositor on a claim for the insured 13 deposit, but such depositor shall retain his claim for any 14 uninsured portion of his deposit: Provided, That, with re15 spect to any bank which closes after the enactment of this 16 Act, the Corporation shall waive in favor of any person 17 only against whom stockholders7 liability may be asserted 18 any claim to recover from such person on account of stock19 holders' individual liability in excess of his liability, if any, 20 to the bank or its creditors for an amount unpaid upon stock; 21 such waiver shall be effected in such manner and on such 22 terms and conditions as will not increase recoveries or divi23 dends on account of claims to which the Corporation is not 24 subrogated: Provided further, That the rights of depositors 3 1 and other creditors of any State bank shall be determined 2 in accordance with the applicable provisions of State law.'1 Passed the House of Representatives April 14, 1938. Attest: SOUTH TRIMBLE, Clerk. 75TH CONGRESS\ 3D SESSION J H. R. 7187 AN ACT To amend section 12B of the Federal Reserve Act, as amended. JANTTAKY 5 (calendar day, APBIL 15), Read 193S twice and referred to the Committee Banking and Currency on Mr. Wyatt Mr. Clayton REMARKS! 5/20/38 Please prepare a very brief memo on this bill, particularly whether anything is involved in which the Board might have an interest. RECEIVED OFFICE OF GEHERAL GOUSSEL MAY 201938 -A.fW.-Xi-<£fL..-P.M, NUMBER--^ http://fraser.stlouisfed.org/ Federal Reserve Bank of St.GOVERNOR'S Louis OFFICE Form F. B. 131 BDARD DF GDVERNDR5 DF THE FEDERAL RESERVE SYSTEM Office Correspondence To Chairman Eocles Frnm Mr« Wyatt . Date May 20, 1958. Subject: H. R. 7187, a Bill to amend section 12B of the Federal _ Reserve Actf as amended. The attached communication from Mr. Mclntyre, Secretary to the President, requests that you advise the President at your earliest convenience whether there is any objection to the approval of the Bill described above. The sole effect of the Bill is to require the Federal Deposit Insurance Corporation, in connection with the liquidation of closed insured banks, to waive the stockholders1 so-called double liability in those few States in which such double liability has not already been abolished by statute. I understand that this Bill was advocated by the Federal Deposit Insurance Corporation and, therefore, I have prepared for your signature a letter to the President advising that there is no objection to its approval. Respectfully, Walter Wya£jc, General Counsel Attachment May 21, 1958 Uy d#ar Hr» President: In r«spon«o t o the corarcunioatlon addressed to «ie on ya&r behalf by Mr* Votntsym tuader drnte of May 19, 1958, I h&vm kh& hoa©r t o advise you t h a t 1 know of no objection t o the approml of th« ae««»p«ayii^ B i l l , H. S» T187, &n Act to amend seetion 12g of th« Federal l e serve Act, as a»«nded. ^ t f l l [• S* Boclee, Chairman. Honorabla, Th© President of the Halted S t a t e s , Wliit« l o u s e . GENERAL COUNSEL'S OfFKS, 1W:hvd yoar» t
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