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DETROIT BRANCH FEDERAL RESERVE BANK OF CHICAGO DETROIT 81, MICHIGAN June 2 1 , 1947 Mr. J. Leonard Townsend Assistant General Counsel Board of Governors of the Federal Reserve System Washington 25, D. C. Dear Leonard: The Michigan Bankers Association at its executive session today, passed resolution as per the attached* This is a step in the direction which you indicated and will give us some ammunition in dealing with Mr. Ferguson of the steering committee in the Seriate and with Mr. Volcott in the House. ly yours, C. Marrj Vice President. f , > jr" BANK HOLDING COMPANIES WHEREAS, A bank holding company may sometimes be used to circumvent the existing Federal and State Banking Lavs and to engage in lines of business which are prohibited to banking institutions; and posed WHEREAS, the Michigan Bankers Association is opto such practices, and WHEREAS, the Congress undertook to provide for the control and supervision of bank holding companies, and it appears that the present law is inadequate to accomplish the purpose for which it was enacted, and there is in existence no effective control of bank holding companies, and WHEREAS, it is necessary in the public interest and in keeping with sound, banking principles that the activities of bank holding companies be restricted solely to the banking business, end that they be regulated in the same manner as the activities of banks themselves, NOW, THEREFORE, BE IT RESOLVED, that this convention urges the congress that legislation be enacted designed to supervise and effectively control bank holding companies* to regulate the creation of new bank holding companies, and to require the separation from such companies of all nonrbanking activities.
@FedFRASER