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FEDERAL RESERVE BOARD
washington
ADDRESS OFFICIAL CORRESPONDENCE TO
T H E FEDERAL RESERVE BOARD
November lg, 1929
St.
6386
SUBJECT: Reports of Changes in Status
of Member and Nonmember banks
Dear Sir:
In view of the recent growth in group banking
and the large number of mergers which have taken place,
the Board wishes to keep a current record of these and
other changes affecting both member and nonmember banks,
and accordingly f i v e forms have been prepared, sample
copies of which are attached, on which the Board would
like to have you submit reports once each month. A
supply of the forms i s being sent to you under separate
cover.
The f i r s t reports on these forms should cover
the period from July 1 to October 31, 1929. The Board
would like to have reports submitted as promptly a f t e r
the f i r s t of each month as practicable, and will appreciate advice, vixen you submit your f i r s t reports, of the
date in each month that your reports may be expected to
reach Washington. The forms enclosed herewith are subj e c t to change in case they do not prove e n t i r e l y s a t i s factory f o r reporting the information desired. I f ,
therefore, your bank has any modifications to suggest,
please bring them to the Board's attention a t as early
a date as convenient, as the forms probably will be
printed early next year.
Very t r u l y yours,
R. A. Young,
Governor.
Enclosure
TO ALL FEDERAL RESERVE AGENTS*
MEMORANDUM EEGfiBDI'JG PHSPJffiATI Oil OF E2P0RTS OF CHANGES
IN STATUS OF mSER JLH) N01JMEU5ER BANKS
November Ig, 1929
St. 6386
Five forms have "been prepared f o r reporting a l l changes in the status
of member and nonmember "banks, as follows:
Form St. 6386a.
Form St. 6386b.
Form St. 6386c.
Form St. 6386d.
Form St. 63860.
Bank consolidations
Bank suspensions
Organizations, liquidations, conversions and other
changes in status of mooter and nonmember "banks.
Chain or group "bank changes
Branches established or discontinued.
The reports should r e l a t e only to active "banks, that i s to say, they
should not cover tanks or "branches in process of organization, tanks
chartered t u t not yet opened f o r business, rumored consolidations, etc. In
case of developments of special importance, however, a preliminary report
should t o made to the Board.
The e f f e c t i v e date of a change f o r the purpose of these reports
should to that on which a bank or branch begins actual banking operations
in i t s new corporate identity — not the date authorized by the Comptroller
of the Currency or State banking department, except where no other date i s
available, in which case the report should c l e a r l y indicate what the date
represents. In the case of state tanks admitted to membership the date
should t e .that on which the subscription to Federal reserve sttock i s paid
in; and in the case of s t a t e banks withdrawn from membership, the date
should be that on which the Federal reserve stock i s cancelled. I f , however, there i s a delay in the cancellation of Federal reserve stock f o r some
technical reason, a preliminary report should be submitted when the bank,
f o r p r a c t i c a l purposes, ceases to operate as a s t a t e bank member, to be
followed by a f i n a l report when the Federal reserve stock has been cancelled.
In the preparation of these reports the term consolidation should
be construed to include cases where two or more banks in actual operation
are consolidated, merged or otherwise brought together to form a single
i n s t i t u t i o n which operates under a new charter or under the charter of one
of the tanks brought together in the consolidation; the term conversion
should be construed to include cases where a national bank changes into
a s t a t e bank or a s t a t e bank changes into a national "bank, regardless of
whether t h i s r e s u l t i s accomplished by a technical conversion or by
terminating the existence of the old bank and creating a new one; and the
term succession should be construed to include a l l cases where the business
of a national bank i s taken over by a new national bank organized f o r that
purpose, or where the business of a s t a t e bank i s taken over by a new
state bank organized f o r that purpose.
The term bank suspension should, as in the past, be taken to mean
a bank closed to the public either temporarily or permanently by supervisory a u t h o r i t i e s or
the bank's board of directors on account of
s t , 6386
financial d i f f i c u l t i e s , regardless of whether or not the "bank i s ultimately
classes, as a f a i l u r e by the supervisory authorities. Do not include "banks
consolidated with or succeeded "by other "banks, if they were not at any time
closed to depositors, even though the reason for the consolidation or succession may have been financial d i f f i c u l t i e s encountered by the bank.
: In the preparation of reports of chain or group banking on Foim
St, 6386d, i t i s requested that in general only those systems be included
in which any person, group of persons, partnership, association or corporation has actual or potential control over the operations or policies of thre
or more banking units, each working on i t s own capital and under i t s own
personnel. Under "Remarks" on Form St. 63S6d, the type of chain or group
should be described and c l a s s i f i e d under one of the following heads:
1.
2.
Ownership by a bank of stock in a number of other banks.
Ownership by a bank or group of banks, through a subsidiary
or a f f i l i a t e d investment or holding company, of stock in
a number of other banks.
. . Ownership by an individual of stock in a number of banks.
Ownership by a group of individuals of stock in a number
of banks.
5. Ownership of stock of banks by an investment or holding
company that i s not a subsidiary of or a f f i l i a t e d with
any p a r t i c u l a r bank or group of banks.
On Form St. 6386c, the character of the change in the status of a
bank should be described by one of the following designations:
1.
2.
3.
4.
5*
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
New bank opened for business (excluding new banks succeeding
other banks)
Voluntary liquidation - terminal*
Resumption following suspension
National bank succeeded by national bank
National bank converted to state member
National bank converted to nonmember
State member succeeded by State member**
State member succeeded by nonmember
State member converted to national
Nonmember succeeded by nonmember
Nonmember succeeded by State member**
Nonmember converted to national
State bank admitted to membership
Voluntary withdrawal of State bank from membership (under
six months notice)
Compulsory withdrawal of State bank from membership
The above definitions and instructions are not to be considered as
rulings of the Board on questions of law but merely as establishing a
uniform basis f o r the preparation of these reports f o r s t a t i s t i c a l purposes.
s t . 6386
The f i g u r e s of c a p i t a l , surplus and undivided p r o f i t s (excluding reserves), loans and investments, and deposits in the case
of suspended banks, should "be f o r the l a t e s t date available, which
date should he indicated in the report.
The reports on the new forms do not take the place of any
telegraphic or mail reports that may "be sent to the Federal Reserve
Board a t the present time, except the mail reports on R t t . X-'i4oi
covering "bank suspensions and the- mail reports on Form X--44q2 covering termination of suspensions which may be discontinued,, Bo r e ports need bo submitted on Form St, 6.58Sb covering such batik suspensions as have already been reported to the Board on Form X-4401.
Some of the changes in the s t a t u s of banks may have 'to be r e ported on more than one of the forms. For example, in the case
of a consolidation of two banks that are operating branches, the
consolidation should bo reported on Form St„ 6386a and the changes
in branches on Form St. 638fc'3„ In reporting on Form St. 6526c,
however, i t w i l l not bo necessary to l i s t a l l of the branches in
operation by two banks entering into a consolidation, but merely
to give the number operated by each bank before the consolidation,
the number operated by the consolidated i n s t i t u t i o n a f t e r consolidation, and the l i s t of branches discontinued, merged with other
branches or moved to another location.
*Do not include liquidations preliminary to f u r t h e r changes,
e . g . , liquidation preliminary to absorption by another bank.
**Do not report the newly organized bank under "State bank
admitted t o membership.11
P. R. Board
Form St. 6386a
Nov, 1929
BAM C OiT SOL IDA 'II OilS
(Include absorptions, mergers, e t c , )
Effective date of consolidation
Name and location of "banks
(a) Banks entering into, consolidation:
Federal Reserve D i s t r i c t
Member
or
nonmember
Surplus
Loans
and
and
p r o f i t s investments
(Thousands of dollars)
Capital
(b) New or consolidated bank:
Is the consolidated i n s t i t u t i o n a newly chartered bank?
. If not, give the
name of "bank ("before consolidation) under whose charter the consolidated
i n s t i t u t i o n i s to operate:
Give names of "banks, if any, that were in f i n a n c i a l d i f f i c u l t i e s a t time of
consolidation:
Disposition made of the head o f f i c e of each bank entering into the consolidation:
Did any of the banks entering the consolidation have branches?
Were any of the banks a f f i l i a t e d with banking groups or chains?
(Report d e t a i l s on Forms St, 63.86d and St. 6386e)
Terms of consolidation, if known, etc.
361
«F.. R. Board.
Form St. 6386b
November 1929
Date of suspension
Name and location
of bank
Capital $'
BAITK SUSPENSIONS
__
Loans and
investments $_
Borrowings from Federal Reserve Bank $
Federal Reserve D i s t r i c t
Member or
nonmember
Gross deposits $
From other banks $
Condition f i g u r e s are as of
Closing directed by
Causes of suspension; Check in the appropriate column thoso of the following
which apply, either as primary or contributing causes, amplifying the
indicated causes with such supplementary data as may be available.
Primary
cause
1. Slow, doubtful or worthless paper
2. Failure of banking correspondent
(Name of f a i l e d correspondent)
3. Failure of other large debtor
(Name of f a i l e d debtor and connection
with bank, if any)
4. Defalcation
5. Heavy withdrawals
6. Other causes (specify)
REMARKS:
Contributing
cause
F. R. Board
Form St. 6386c
eKov. 1929
OROMSTIZATIOFS. LIQUIDATIONS, CONVERSIONS,
AND OTHSR CH12TGSS U STATUS OF ISL3BE AND NONl-SMBl®. BAMS
(Except bank suspensions, consolidations, aorgors or absorptions;
a f f i l i a t i o n s with banking chains or groups; and establishment or
discontinuance of branches)
Effective date of change
Federal Reserve D i s t r i c t
Character of change
Name and location of
b-mk before change
Member or
nonmeaber
Name and location of
bank a f t e r change
Member or
nonmember
Capital $
Surplus
and p r o f i t s $
Loans and
investments $_
Condition figures are as of
Is the above change in status f i n a l or merely preliminary to a f u r t h e r change,
and if preliminary , what f u r t h e r change i s contemplated?
In the case of conversions and successions, were f i n a n c i a l d i f f i c u l t i e s
responsible to any extent f o r the change in status?
Remarks:
(In the case of suspended banks reopened f o r business, give the change in
capital account, the assessment paid by stockholders, e t c . )
P. R. Board
Form St. 63S6&
Nov. 1929
86c
CHANGES III GROUP OR CHAIN BANKING
Federal Reserve D i s t r i c t
Name and address of management or
controlling i n t e r e s t in "banking chain or group
Date
effective
Member
Surplus
Name and location of "banks added
or
to or withdrawn from chain or group* non- Capital p r and
ofits
member
Loans
and
investments
Remarks: (Character and degree of control, type of organization of group, etc.)
•List additions under the heading "Added to Group," and withdrawals under "With
drawn f rom Group."
F
I . R. Board
Form St. 63860
Nov. 1929
« >
BRMTCHES ! 3 S C L i 2 L i S l E D
OR D I S C O N T I N U E D
Federal Reserve D i s t r i c t
Member or
nonmen?ber
liajao and location
of parent bonk _
Date
2stc.blish.od
or
discontinuod
Local,
contiguous,
or noncontiguous*
Name end location of branches and method
of establishment or discontinuance**
•Indicate whether a "local" branch (in the same tov.11 or c i t y as the parent
bank), in a "contiguous" town, or in a "non-contiguous" town.
"••Indicate whether established "do novo" or by "conversion of independent
bank," and in the l a t t e r case give the name of bank that was absorbed and
converted into a branch. If discontinued, state whether closed, moved to
another location, or succeeded by another bank.
o
• o
@FedFRASER