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,DERAL RESERVE BANK OF SAK FRANC JO October 7ยป 19i40 Mr. J . P. D r e i b e l b i e , A s s i s t a n t General Counsel, Board o f Governors of the Federal Reserve System, naahington, p . C. S u b j e c t t Bank of America U . T . & S.A. Dear Mr. D r e i b e l b l a i Bank Premlaea S h o r t l y a f t e r the Committee charged w i t h the d u t i e s a e t f o r t h i n Paragraph 5 c f t h e Requirements of t h e Comptroller of the Currency commenced i t s work, i t became apparent t o me t h a t t h e procedure being f o l l o w e d by the Committee would not reach t h e goal contemplated. You w i l l probably r e c a l l t h a t I have had oorreepondence and t e l e p h o n i c converaationa w i t h you r e g a r d i n g my m i s g i v l n g e . I have a l s o had t e l e p h o n i c c o n v e r a a t i o n a w i t h Governor McXee. On t h e occaaion of h i a r e c e n t v i s i t t o t h e bank. Comptroller o f t h e Currency Preston Delano was made f u l l y acquainted w i t h my H e w s , i n c l u d i n g t h e f e a r t h a t , i f the Comm i t t e e d i d not have i t a understandings r e v i a e d , an unwarranted breaoh between the management of t h e Bank o f America and t h e Comptroller would o c c u r . The r e p a i r of euch a breach could o n l y end i n h u m i l i a t i n g the C o m p t r o l l e r , which, i t seems to me, must be avoided. Subsequent t o t h e v i s i t of t h e C o m p t r o l l e r , Chairman F.coles was h e r e , and t h e o p p o r t u n i t y was t a k e n t o have Mr. West, V i c e P r e s i d e n t i n charge of e x a m l n a t i o n s , and a member o f t h e Committee, o b t a i n an independent view o f the understandinga l e a d i n g up t o t h e d r a f t i n g of Paragraph 5 of t h e Agreement. A f t e r t h i s d i s c u s s i o n w i t h Chairman E o c l e s , M r . West was con* v i n c e d t h a t t h e i n t e r p r e t a t i o n a of t h e Agreement g i v e n him and other members of t h e Committee by me were i n accord w i t h the understandinga reached i n Washington. There i s enclosed me, under d a t e of October 2, m i t t e e ainoe i t a i n c e p t i o n . May 8 , 19L*Q, prepared by me a copy o f a memorandum addreased by Mr. Heat t o which covera an o u t l i n e of t h e work o f t h e ComThere l a a l s o enclosed a memorandum, dated f o r the Committee's guidance. Aa you p a r t i c i p a t e d i n t h e diecuaaiona l e a d i n g up t o t h e language i n c o r p o r a t e d i n Paragraph 5 cf t h e Agreement, I should a p p r e c i a t e your d i e eussing t h e q u e e t i o n w i t h Chairman Eocles and Governor MoXee, end t e n d e r i n g my recommendation t h a t Messrs. W r i g h t , Funsten, and Weat be c a l l e d t o Washington t o r e v i e w , i n t h e preaence o f V e a a r a . E c c l e e , KoKee, B e l l , Delano, and Crawley, t h e p r e a e n t a t a t u s o f t h e Committee's f i n d i n g s . T h i s would a f f o r d t h e San Francisco Committee an o p p o r t u n i t y t o have a e t t l e d any divergence of o p i n i o n as t o t h e i n t e r p r e t a t i o n of t h e Agreement. A l s o , i t would show t h a t t h e Waahington Committee had been a c t i v e i n aeeing t h a t t h e Bank o f America has no proper grounds f o r oharglng t h a t unwarranted delaya have occ u r r e d I n e n a b l i n g the Bank t o c a r r y out t h e terms of t h e Agreement because the San Franciaoo Committee l a c k e d proper i n s t r u c t i o n s . fours v e r y t r u l y , (signed) I . Eneloeures Clerk F i r e t Vioe President.
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