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645 A BILL To amend the Act approved December twenty-third, nineteen hundred and thirteen, known as the Federal Reserve Act, BE IT ENACTED BY THE SENATE AND HOUSE OF REPRESENTATIVES OF THE' UNITED STATES OF AMERICA IN CONGRESS ASSEMBLED, That section twenty-five of the Act approved December twenty-third, nineteen hun dred and thirteen, known as the Federal Reserve Act, be amended to read as follows: Sec. 25. Any national banking association possessing a capital and surplus of $1,000,000 or more may file application with the Federal Reserve Board, for permission to exercise upon such conditions and under such regulations as may be prescribed by the said board, either or both of the following powers! First. To establish branches in foreign countries or depen dencies or insular possessions of the United States for the fur therance of the foreign commerce of the United States, and to act if required to do so as fiscal agents of the Unites States. in the aggregate Second. To invest an amount not exceeding/ten per centum of its paid-in capital stock and surplus in the stock of one or more banks or corporations chartered or incorporated under the laws of the United States or of any State thereof, and princi pally engaged in international or foreign banking, or banking in a dependency or insular possession of the United States either directly or through the agBncy, ownership, or control ±1 3 ? -2 - 6H5 of local institutions in foreign countries, or in such dependoncios or insular possessions* Such application shall specify the name and capital of the banking association filing it, the powers applied for, and the place or places where the banking operations proposed are to be carried on. Tho Federal Reserve Board shall have power to approve or to reject such application in whole or in part if for any reason the granting of such application is doomed inex pedient, and shc.ll also have power from tine to timo to increase or decrease the number of places where such banking operations may be carried on. Every national banking association operating foreign branches shall be required to furnish information concerning the condition of such branches to the Comptroller of the Currency upon demand, and every member bank investing in the capital stock of banks or corporations described under sub-paragraph Second of the first paragraph of this Section shall be required to fur nish information concerning the condition of such banks or cor porations to the Federal Reserve Board upon demand, and the Fed eral Reserve Board may order special examinations of the said branches, banks, or corporations at such timo or tines as it • may deem best. Before any national bank shall be permitted to purchase stock in any such corporation, the said corporation shall enter -3- 6U5 into an agreement or undertaking with the Federal Reserve Board to restrict its operations or conduct its business in such manner or tinder such limitations and restrictions as the said board nay prescribe for the place or places wherein such business is to bo conducted* If at any time the Federal Reserve Board shall as certain that the regulations proscribed by it are not being com plied with* said board shall be authorised and shall have power to institute an investigation of the matter and to send for per sons and papers, subpoena witnesses and adninistor oaths, in order to satisfy itself as to the actual nature of the trans actions referred to. Should such investigation result in estab lishing tho failure of the corporation in question, or of the national bank or banks which may be stockholders therein, to comply with the regulations laid down by the said Federal Reserve Board, such national banks may be required to dispose of stock holdings in the said corporation upon thirty days1 notice, and in the event of their noncompliance with such order the Federal Reserve Board may direct tho Comptrolis r of the Currency to in stitute proceedings for forfeiture of charter. Every such national banking association shall conduct tho accounts of each foreign branch independently of tho accounts of other foreign branches established by it and of its hone office, and shall at the end of each fiscal period transfer to its general lodger tho profit or loss accruing at ee.ch branch as a separate item 1139 --4- 6U5 Any director or other officer,, agent or onployoo of any member hank, nay with the approval of tho Federal Roserve Board, ho a director or other officer, agent, or onployse of any such hank or corporation above nontioned, in the capital stock of which such monte r hank shall have in vested as hereinbefore provided, without being subject to tho provisions of Section 8 of tho Act approved October 15, 19lU, entitled "An Act to supplement existing laws against unlawful restraints and monopolies, and for other purposes." 5/9/16
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