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X-4748 STATE DEPARTMENT 407 Supervisor; 1. Name - Age - Previous p r o f e s s i o n a l and executive experience* 2» I n t e r g r i t y and a b i l i t y . 3. Powers of t h e supervisor - Are h i s general s t a t u t o r y powers s u f f i c i e n t to enable.him to o b t a i n compliance with sound banking p r a c t i c e s ? S t a t e i n d e t a i l p a r t i c u l a r s i n which S t a t e law i s d e f e c t i v e . 4,. Extent to which he e x e r c i s e s them. 5. Are s u f f i c i e n t funds a v a i l a b l e or obtainable to p r o p e r l y operate h i s department? 6. Has he a u t h o r i t y to a s s e s s stockholders under double or other liability? 7. Give by S t a t e s synopsis of s t a t u t o r y p r o v i s i o n s r e l a t i n g to double or o t h e r l i a b i l i t y of s t o c k h o l d e r s . 8. Has he a u t h o r i t y to take p o s s e s s i o n of and administer i n s o l v e n t banks? 9. Are c h a r t e r s i s s u e d s u b j e c t to h i s f i n d i n g s and h a s he a u t h o r i t y complete or l i m i t e d to deny a p p l i c a t i o n s f o r c h a r t e r s ? 10. What s p e c i f i c l e g a l a c t i o n or what a c t i o n n e c e s s a r i l y implied fro% general s t a t u t o r y a u t h o r i t y may he take to c o r r e c t i l l e g a l or otherwise unsound and u n s a t i s f a c t o r y conditions? Does he e x e r c i s e f u l l y t h e foregoing powers - i f n o t , s e t f o r t h the p a r t i c u l a r s i n which he f a i l s to do so? PagS 2' 1-1V43 408 STATE DEPARTMENT Examiners: 1. Number of examiners. Total s a l a r i e s paid. 2. Number of a s s i s t a n t s . Total s a l a r i e s paid, 3. Number of other employees at headquarters and other o f f i c e d ; Total s a l a r i e s paid, 4. How are examiners selected? 5. Is examining force capable of conducting an examination of the larger "banks i n t h e i r d i s t r i c t ? 6. When additional a s s i s t a n c e i s needed for examinations of large "banks or f o r other purposes, how s e l e c t e d and from what source obtained. GIVE AS TO EACH EXAMINER, ASSISTANT. OR OTHER EMPLOYEES THE > DATA INDICATED BELOW. 1. Name - Age - Headquarters. 2. Salary. 3. Previous experience. 4. Any s p e c i a l personal q u a l i f i c a t i o n s . 5. Length of s e r v i c e i n department. 6. General a b i l i t y and p r o f e s s i o n a l jud^nent. * 7-4748 Page 3. 409 STATE HEPABTpra Examinations: 1. Scope - Do examinations include complete inspection of a l l a s s e t s and l i a b i l i t i e s ? 2. Procedure - Do examiners upon entering tank promptly and immediately place a l l books, records and tangible a s s e t s under seal and do the} maintain custody and control u n t i l work of inspection as to p a r t i c ular groups of a s s e t s or accounts has "been completed? 3. Frequency. 4. Are a l l examinations so conducted as to develop as to each c l a s s of a s s e t s and accounts examined the e s s e n t i a l facts? (Information i n response to t h i s question involves an inquiry as to how an individual examiner conducts every step i n an examination.) 5. Are trust departments and safekeeping departments of "banks examined? Are controlling trust documents studied and understood s u f f i c i e n t l y by examiners to give them a p r a c t i c a l knowledge of the purposes of the various trusts? 6. (See national bank form on t r u s t s . ) Do examiners embody i n reports a brief economic survey of each place or section? 7. Do examiners hold directors meetings i n connection with each examination for the purpose of discussing matters subject to c r i t i c i s m and informing directors of the general condition of the bank? 8. Are their examining forces making adequate i n v e s t i g a t i o n s of individual c r e d i t s , other a s s e t s , loan p o l i c i e s , personnel and organization? Pago 4 . X-4748 410 Examinations (Cont'd) 9. Describe b r i e f l y c h a r a c t e r and e x t e n t of a p p r a i s a l of l o a n s and discounts and other a s s e t s . Are "banks g e n e r a l l y r e q u i r e d to main- t a i n adequate c r e d i t f i l e s i n c l u d i n g statements of individual rowers? "bor- Are S t a t e examiners i n s t r u c t e d and Required t o i n s i s t upon t h e p r o d u c t i o n of statements? Do they f u r n i s h c r e d i t information to the Federal r e s e r v e Agent or Federal r e s e r v e "bank? Does Federal r e s e r v e a g e n t , Federal r e s e r v e baric or Federal r e s e r v e examiner, f u r n i s h c r e d i t information to S t a t e department of member banks? 10* Describe b r i e f l y c h a r a c t e r and e x t e n t of examination of l i a b i l i t i e s . 11. Generally, i s s u f f i c i e n t time spent on examinations, i f n o t , i s t h i s due to i n s u f f i c i e n t examining f o r c e or i s i t due t o s l i g h t i n g of work by c a r e l e s s , i r r e s p o n s i b l e and i n e f f i c i e n t examiners? 12. In general what can the a u t h o r i t i e s of t h i s S t a t e do t o improve examinations? 13. Charges f o r examination. The method of a s s e s s i n g charges. By whom a s s e s s e d and collected? 14. Are examining f o r c e s allowed a f l a t p e r diem r a t e f o r l i v i n g expenses w i t h a c t u a l c o s t of t r a n s p o r t a t i o n - i f so, what i s the p e r diem? Are they allowed a c t u a l l i v i n g expenses with d e t a i l e d accounting, or a c t u a l l i v i n g expenses with the maximum p e r diem f i x e d , or i s the maximum allowance f o r p a r t i c u l a r expenses limited? 15. Are S t a t e examiners r e q u i r e d to make s p e c i f i c recommendations to t h e banks under examination or to the supervisor as to t h e a c t i o n which i n t h e i r opinion banks should or must t a k e to c o r r e c t uns a t i s f a c t o r y c o n d i t i o n s or c r i t i c i s m s and a r e t h e i r recommendations embodied i n the r e p o r t ? }y~4V4, "J ? a f e 6 E. 4 1 1 Examinations (Cont 1 d) 16. Do S t a t e examiners, when making t h e i r examinations, f o l l o w up or r e p o r t on c o n d i t i o n s imposed a t time of a p p l i c a t i o n f o r membership "by Federal Reserve Board? 17. Do S t a t e .examiners when making examinations j o i n t l y with Federal r e s e r v e examiners consult the l a t t e r f r e e l y a s t o c r c d i t s , s o l vency, e t c . , and do they g e n e r a l l y accept the conclusions of the Federal r e s e r v e examiners and adopt them a s t h e i r own? 18. Are j o i n t examinations hy S t a t e examiners and Federal r e s e r v e examiners "being made i n t h i s State? a. Are t h e r e l a t i o n s "between the S t a t e Supervisor and t h e Federal Reserve Agent and "between the S t a t e examiners and the Federal r e s e r v e examiners harmonious, and i s t h e r e e f f e c t i v e cooperartion.in a l l relations? "b. In j o i n t examinations what work i s done independently "by the S t a t e examiners and what "by t h e Federal r e s e r v e examiners, or do they perform a l l work j o i n t l y ? c. Are j o i n t examinations i n t h i s S t a t e considered e n t i r e l y satis-, f a c t o r y or would you recommend a t l e a s t one independent examination a year of a l l S t a t e member "banks "by Federal r e s e r v e examiners with p r o v i s i o n f o r more f r e q u e n t examinations of "barikg whose dangerous or u n s a t i s f a c t o r y condition seems to warrant unusual a t t e n t i o n ? X-± r, 43 4 1 - ^ 2 8a iiExarainations ( C o n t ' d ) 19. Do S t a t e examinations now made give t h e noceesary i n f o m a t ion to enable t h e F e d e r a l Reserve Board to determine whether or n o t t h e member "banks a r e o p e r a t i n g w i t h i n the requirements of the Federal Reserve A c t , t h e Regulations of t h e Board, and t h e c o n d i t i o n s of membership? 20. Do s u p e r v i s o r s themselves or through competent a s s i s t a n t s make a n a l y s i s of r e p o r t s independently of examiners who made examinations - i f so, i s t h i s done promptly f o l l o w i n g an examination - i s t h e a n a l y s i s made the "basis of c o r r e c t e d measures? Does Federal r e s e r v e agent r e c e i v e "benefit of t h e i r a n a l y s i s ? 21. How soon a f t e r examinations a r e r e p o r t s forwarded t o t h e F e d e r a l r e s e r v e hank? How soon a f t e r r e c e i p t of r e p o r t from S t a t e Department does Federal r e s e r v e "bank forward copy to Federal Reserve Board! 22. Does s u p e r v i s o r of t h i s S t a t e make c r e d i t i n v e s t i g a t i o n s i n l i e u o f , complete examinations covering l i a b i l i t i e s a s well a s a s s e t s ? 23. Do a u t h o r i t i e s i n t h i s S t a t e accept Federal r e s e r v e examinations i n lieru. of S t a t e examinations? 24. Has t h i s s u p e r v i s o r cooperated or i s h e i n c l i n e d t o cooperate with t h e F e d e r a l r e s e r v e agent i n adopting a r e p o r t form f o r h i s examinat i o n s t h a t meet the requirements of the F e d e r a l Reserve Board, objections, etc.? Give i n d e t a i l what i s being done by Federal r e s e r v e a g e n t s to o b t a i n cooperation?
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