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X-7505 (INTERPRETATION OF BANKING ACT OF 1933) Copies to bo sent to all Fodoral Reserve Banks# July 17, 1933. Mr, L. R. Rounds, Deputy Governor, Federal Reserve Bank of Now York, New York, Now York. Dear Mr. Rounds, Receipt is acknowledged of your letter of June 30, 1933, inclosing copy of your letter of the same date to Mr. Counsel for (a member bank)• It appears that Mr. contends that, since the laws of Now York do not require publication of reports of condition of affiliates of a trust company in that State, the publication of such reports is not required under section 9 of the Federal Reserve Act, as amended by section 5(c) of the Banking Act of 1933. After providing that each State bank or trust company which is a member of the Federal Reserve System shall obtain from each of its affiliates other than member banks, and furnish to the Federal reserve bank of its district and to the Federal Reserve Board, not less than three reports during each year, section 9 of the Federal Reserve Act, as amended by section 5(c) of the Banking Act of 1933, provides that, "The reports of such affiliates shall be published by the bank under the same conditions as govern its own condition reports•" In view of the fact that the Federal Reserve Act does not require the publication of reports submitted to the Federal Reserve Board and the Fodoral reserve banks by State member banks, the only reasonable construction that can be given to the requirement qtiofcod above X-7505 Mr. L. R. Rounds - 2 is that reports of affiliates of Stato nonbor banks must bo published if the State law requires such State banks to publish their own reports. Even though the State law m y net require the publication of reports of affiliates of State banks, therefore, the Federal Reserve Act requires the publication of such reports whenever the State law requires the reports of Stato member banks to bo published# The conditions governing the method and frequency of publishing such reports depends upon the provisions of the State law regarding the method and frequency of the publication of reports of the State banks; and, therefore, it is not entirely accurate to say that the reports of such affiliates must be published whenever the Federal Reserve Board calls for reports of condition of State mombor banks. Very truly yours, Chester Morrill, Secretary,
@FedFRASER