The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
I GLASS,BILL< Sec. 1, p . 1. Title. Sec. 2, p . 2, 3? Definitions. Sec. 3, p . 4. Amends Sec. 4 Federal Heserve Act. Rediscounts. Sec. 4, p . 5. Amfends Sec. 4 Federal Reserve Act. Voting f o r Federal r e s e r v e d i r e c t o r s . Sec. 5, p . 6. Amends Sec. J , Federal Reserve Act. Federal Liquidating Corporation. Surplus e a r n i n g s . Sec. 6, p . 5. Amends Sec. $, Federal Reserve Act, p a r . 5« Reports. Member banks and a f f i l i a t e s . Sec. 7, p . 9. Amends Sec. 10, Feder 1 Reserve Act. Board to c o n s i s t of Comptroller, e x - o f f i c i o , and 6 members. Sec. of Treasury dropped from Board. At l e a s t 2 members - t e s t e d banking experience. New terms - 12 y e a r s . Sec. 8, p . 11. Amends Sec. 11, Sub-section (c) Federal Reserve Act. R e c l a s s i f i c a t i o n of r e s e r v e and c e n t r a l r e s e r v e c i t i e s . Sec. 9, p . 12. Amends Sec. 11, Sub-section (m) of Federal Reserve Act. , A f f i r m a t i v e vote of 6 members. May f i x percentage of member banks c a p i t a l and s u r p l u s rrhich may be r e p r e s e n t e d by c o l l a t e r a l l o a n s . Duty of Board to e s t a b l i s h such percentages and prevent undue use of bank loans f o r s p e c u l a t i v e c a r r y i n g of s e c u r i t i e s . X-70J2 4 6 Sec. 9, p . 12 ( t i o n t ' d . ) Amends Sec. 11, Sub-section (m) of F. B. Act ( C o n t ' d . ) Power to d i r e c t member banks to r e f r a i n from f u r t h e r i n c r e a s e of i t s s e c u r i t y loans f o r p e r i o d s up to 1 y e a r , under p e n a l t y of suspension of a l l rediscount p r i v i l e g e s at Federal r e s e r v e bank. Sec. 10, p . 13. New Section of Federal Reserve Act, Sec. 11-A Unanimous of members. Advances to groups of banks. P r o g r e s s i v e r a t e , beginning at ^ above F. B. r a t e . Not to serve as c o l l a t e r a l f o r F. E. notes* Sec. 11, p . l 4 . Loans and investments to a f f i l i a t e s . To be secured by e l i g i b l e paper, l i s t e d s t o c k s , e t c . Sec. 12, p . 16. New Sections to Sec. 12-A. Federal Sec. 12—B. Federal Class A F. B. Act - 12-A, 12-B. Ooen Market Committee. Liquidating Corporation. and Class B s t o c k . Sec. 13, p . 27. Amends Sec. 13? F. E. Act, paragraph J. Advances t o member banks. 15-day c o l l a t e r a l n o t e s . Collateral: E l i g i b l e paper and Govt, bonds. Bate, Vjo over F. E. r a t e . Such notes to become immediately payable: I f borrowing bank (a) Increases i t s s e c u r i t y l o a n . (b) Loans to member of any stock exchange, investment house, or d e a l e r i n s e c u r i t i e s , upon any o b l i g a t i o n , note or b i l l , f o r the purpose of purchasing and/or c a r r y i n g investment s e c u r i t i e s (except o b l i g a t i o n s of U. S.) Such member banks s h a l l be i n e l i g i b l e as a borrower at the F. B. Bank of D i s t r i c t upon 15-day p a p e r . 4 8 x-7072 Sec. 13? p . 27 ( C o n t ' d . ) Amends Sec. 13, F. H. Act, paragraph "J, Unanimous v o t e of Board; May suspend above i n " h o l e or p a r t when p u b l i c i n t e r e s t so r e q u i r e s . Such suspension to be f o r 90 days, renewable f o r one a d d i t i o n a l p e r i o d of $0 days upon unanimous v o t e of Board. Sec. 14, p . 28. Amends Sec. l 4 F e d e r a l Reserve Act. In d e f i n i n g power of Board, adds - s u b j e c t to r e g u l a t i o n , l i m i t a t i o n s and r e s t r i c t i o n s p r e s c r i b e d by Board. Board to have s u p e r v i s i o n and c o n t r o l over a l l r e l a t i o n s h i p s and t r a n s a c t i o n s e n t e r e d i n t o by any F. 3 . bank w i t h any f o r e i g n bank or any group. Subject t o r e g u l a t i o n s , l i m i t a t i o n s and r e s t r i c t i o n s of Board. Board to have r i g h t t o be r e p r e s e n t e d a t any such c o n f e r e n c e . F u l l r e p o r t t o be f i l e d with Board: 1. S u b j e c t s d i s c u s s e d . 2 . Views e x p r e s s e d . 3. Understandings or agreements r e a c h e d . Sec. 15, p . 30. Amends Sec. l 6 , Federal Reserve Act, p a r . 2, 3> Not to be used as c o l l a t e r a l f o r F. R. n o t e s . 1. 15-day notes secured by Govt, bonds. 2. Acceptances Revolving or renewal. Sec. l b , p . 34, 37, 39. Amends Sec. 19, F e d e r a l Reserve Act. New r e s e r v e r e q u i r e m e n t s . No member bank t o a c t a s medium f o r any non-banking c o r p o r a t i o n a s i n d i v i d u a l i n making c o l l a t e r a l loans. :C-7072 Sec. l b , p . 3^j 37> 39 (Gont'di) Amends Sec. 19, F. B. Act ( C o n t ' d . ) l"o member bank s h a l l make loans or discount paper f o r any c o r p o r a t i o n or i n d i v i d u a l who, at time of making or renewing such loan s h a l l have o u t s t a n d i n g , c o l l a t e r a l loans in favor of any investment banker, broker, member of any stock exchange or any dealer in s e c u r i t i e s . Transfer of excess balances in F. H. banks. L i a b i l i t y under repurchase agreements to be added to n e t , - due to and due from. Sec. I ? , p . 39. Amends Sec. 24, Federal Reserve Act. Real e s t a t e loans. Sec. IS, p . 42. Amends Sec. 5^3? Revised S t a t u t e s . Power of n a t i o n a l banks. Purchase of s e c u r i t i e s . Investments. Sec. 19, p . 44. Adds to Sec. 5I3S, Revised S t a t u t e s . C a p i t a l , surplus and individual p r o f i t s must equal 15$ of average d e p o s i t s . Sec. 20, p . 45. Mo t r a n s f e r of stock to be conditional on ownership. Sale or t r a n s f e r of a c e r t i f i c a t e r e p r e s e n t i n g stock of any other c o r p o r a t i o n . Sec. 21. Certain i n t e r l o c k i n g d i r e c t o r a t e s e t c . f o r b i d d e n . Certain correspondent r e l a t i o n s h i p s f o r b i d d e n . Sec. 22, p . 46. Amends Sec. Bevised S t a t u t e s . Stockholders v o t i n g , however. Sec. 23, p . 47. Stockholders statement. X-70J2 5 Sec. 24, p . 4g. Affiliates Voting p e r m i t s . Sec. 25, p . 52. Branches State limit Capital. Sec. 26, p . 53. Consolidation. Adds s t a t e . Branches. Act Kov. J , 1918. Sec. 27, p . 53. Amends Sec. 5^97> Bevised S t a t u t e s . Discount r a t e s charged by n a t i o n a l banks. Sec. 28, p . 54. I n t e r e s t on d e p o s i t s , n a t i o n a l and member banks, 3b i n t e r e s t t o be p a i d on d e p o s i t s s u b j e c t t o check. Sec. 29, p . 55. Amends Sec. 5200, Revised S t a t u t e s . Obligations not e n t i t l e d to exemption from 10$ limitation. L i m i t a t i o n of o b l i g a t i o n s of a l l a f f i l i a t e s of a n a t i o n a l bank. Exceptions. Method of r a i s i n g c a p i t a l f o r a f f i l i a t e s . Cash or stock dividends, e t c . by Parent bank f o r b i d d e n . L i m i t a t i o n on loans on stock of Parent company. Sec. 30. p . 56. L i m i t a t i o n on loans of member bank on c o l l a t e r a l s e c u r i t y . Hot over 10,6 of i t s c a p i t a l , or an amount f i x e d by Federal Reserve Board under Sec. M, Sec. 13, F. R. Act, whichever i s s m a l l e r . Sec. 31, p . 57. Amends Sec. 5211? Revised S t a t u t e s . Reports by a f f i l i a t e s . Sec. 32, p . 59. Amends Sec. $240, Revised S t a t u t e s . Examination of a f f i l i a t e s . X-7072 Sec. 33> pi 60, 61. Amends Clayton Act. Ixo person D i r e c t o r of n a t i o n a l "bank or any tank organized under U. S.laws and A corporation organized f o r any purpose which makes c o l l a t e r a l loans to any i n d i v i d u a l a s s o c i a t i o n , p a r t n e r s h i p or c o r p o r a t i o n , other than i t s own s u b s i d i a r i e s . 1'To c o r p o r a t i o n , f o r e i g n or domestic, other than banks incorporated under U. S. or s t a t e laws o p e r a t i n g w i t h i n U. S. and engaged in commerce as d e f i n e d in t h i s Act, s h a l l make c o l l a t e r a l loans to any i n d i v i d u a l , other corporation (except i t s own s u b s i d i a r i e s ) , p r i v a t e "banks, or incorporated "banks. P e n a l t y $5000. i'To corporation engaged in commerce as d e f i n e d by t h i s Act s h a l l deposit i t s funds with any i n d i v i d u a l , p r i v a t e "banker, or banking a s s o c i a t i o n or t r u s t company, - except banking a s s o c i a t i o n s incorporated SSStitf'iiBoK u ' s - law - 3To corporation f a i l i n g to deposit i t s funds in banking a s s o c i a t i o n s incorporated under s t a t e of U. S. laws s h a l l engage in such commerce. Sec. 3^> p . 6 l . Eight to amend Act.