Full text of Marriner S. Eccles Papers : Legal opinion from Wyatt, Box 3, Folder 1, Item 4

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The question lias arisen whether the Chairman of the Joard of
directors of the federal deposit Insurance Corporation may retain that
position arid at the same time be appointed and serve as a member of the
Bo*rd oi Governors of the iederal Ueserve System*
This question must be answered in the negative*
In referring to members of the • oard of Governors of the Iederal
Reserve Oyster-, section 10 of the iederal reserve Act provides that, "The
members oi' the fioard shall devote their entire time to the business of the
roard *•**"»
as the entire •t&BfMMBt of the Federal )eposit Insurance
Corporation is vested by law in its Board of directors, it is obvious that
the Chairman of that -card of directors could not perform his lawful duties
as such and also devote his ''entire time" to the business of the B M U N of
Governors of the federal Reserve System*
Moreover, the -tanking -^et of 19515 amended the federal .Reserve Act
so as to remove from membership on the Board of Governors of the Federal
Reserve System the eoretary of the Treasury and the Comptroller of the
Currency, *rho had been ex officio members of the Board since the establishment of the System, and provided that hereafter the Board shall consist of
seven members appointed for that purpose and devoting their entire time to
the business of the Board. In presenting to the oertate the Conference Heport on the i M k S m ct of 1935, Senator <31ass gave as one of the reasons
for this change the fact that the Secretary of the Treasury and the Comptroller of the Currency rarely attended meetings of the Board*
It is natural that the Chairman of the Federal Deposit Insurance
Corporation would devote most of his time to his duties as such and -should
devote comparatively little tijne to his duties as a member of the Board of
Governors of the iederal reserve System} and such an arrangement would be
contrary to the spirit and purpose of the anen^ment removing the ex ofi'icio
members from the Board, in addition to violating the letter of the requirement that the members of the Board shall devote their entire time to the
business of the T:oard*
Subsection (j) of section 12B of the Federal lie serve Act provides
that the Iederal I eposit Insurance Corporation shall have power:
"Fifth* To appoint by its board of directors such officers
and employees as are not otherwise provided for in this section,
to define their duties, fix their compensation,***, toothing in
this or any other Act shall be construed to prevent the appointment and compensation as an officer or employee of the Corporation of any officer or employee of the united States in any board,
commission, independent establishment, or executive department thereof,"
However, this applies only to officers and employees who &re appointed
and have their compensation fixed by the Board of directors of the Corporation
and does not apply to the Chairman or any other member of such Board of Lirectors, Y?ho is appointed by the resident and has his compensation fixed by

law*