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. - .,. 41 BOARD OF GOVERNORS OF" THE FEDERAL RESERVE SYSTEM S-535 WASHINGTON ADORE&& OF"F"ICIAL CDRREBPDNOENCE TD THE BOARD July 17, 191. . 2 Dear Sir: Enclosed is a copy of a letter addressed to the Federal Reserve Benk of Cleveland on July 16, 1942, concerning certain enforcer.;ent problems arising out of possible violations of Regulation W. , Very truly yours, ~~~.L. P. Bethea, Assistant Secretc_ry. Enclosure TO THE PRESIDENT0 OJ!, ALL FEDERAL RESERVE BANKS 42 S-535-a July 16, 1942 Mr. R.. B. riays , Vice President and Secretary, Federal Reserve Bank of Cleveland, Cleveland, Ohio. Dear Mr. J~ays: This is in response to your letter of June 24, 1942, concerning certain enforcement problems arising out of possible violations of Regulation W by a branch located in the Fifth Federal Ref!erve District which is managed by an offHler located in the Fourth District, the parent company being registered in the First District. The Board agrees that each Federal Reserve Bank, in connection with enforcement, should be responsible for all branches located in its district, even though the main office may be registered in another district. It also agrees that the enforceLJ.ent activities of each Federal Reserve Bank should be confined to its district, and that each Federal Reserve Bank should make any investigations which may be necessary in its district. (See last paragraph of S-518). Accordingly, it is suggested that you furnish the Federal Reserve Bank of Richl;lond with such information as you may have regarding the possible violation, in order that it may proceed vri th the necessary investigation~ It might also be desirable for you to inform the Federal Reserve Bank of Boston in order that it may advise th~ parent company. However, if you should feel, in this case or in any other case involving more than one Federal Reserve J:Jistrict, that the Board could be of assistnne e i.n coordinating the efforts of the Federal Reserve Banks, the Board, of course, would be glad to lend its services. The foregoing applies to routine cases concerning which there is no reason to think that the normal and usual informnl contacts will not bring satisfactory results. If more drastic measures are necessary, or if it appears likely that they will be, the Board would like the case to be reported to it before any such action is taken. This suggestion is made in order to enable the Board to coordinate an enforcement program, and applies to any case, whether or not it involves action outside a particul&r district. In cases involving such action the Board will, of course, communicate with the proper Federal Reserve Bank through which appropriate action can be taken. Very truly yours, (Signed) L. P. Bethea L. P. Bethea, Assistant Secretary.
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