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. FEDERAL RESERVE BOARD WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD X-4686 October 12, 1926. SUBJECT: Topic for Next Governors' C0nference. Dear Sir: The Federal Reserve Board has voted to place upon the prograTil for the next conference of Governors of Federal Reserve Banks for their consideration and advice, the qn.estion as to the acivisabili ty of the Board adopting for o,ll national banks a minimurn capital requircme:at nnd ingosing other requirements in connection with its gr.::l.t.lting a:uthori ty to such banks to exercise trust poWG:.t's. Fo= your information in this connection, thero is enclosed ncrewi th a CO}JY of a memorandum ·by the Board 1 s Colmsol reb.tive to the legal right -of the Board to place a minimum limit on capital of national banks to which it will grant trust powers. Very truly yours, Walter L. Eddy, Secretary. To Governors of all F .R.Banks. Enclosure: .~ i!il X-4687-a May 21, 1926. Tho Federal Reserve Board Mr. Wyatt - General Counsel~ Right of Board to place minimum limit on capital of national banks to which it will grant trust powers. The opinion of this office has been requested on the question whether the Board can legally place a minimum limit upon the capital of a national bank to which 1 t will grant trust powers. The last paragraph of Section ll(k) of the Federal Reserve Act reads as follows: 11 In passing upon applications for permission to exercise the powers enumerated in this sub-section, the Federal Reserve Board ~ take into consideration the amount of caui tal and surplus of the applying bank, whether or not such capital and surplus is sufficient . under the circumstances of tho case, the needs of the conr.:ru.ni ty to be served, and a.rJ¥ other facts and circuostances that seem to it proper, and may grant or refuse the auplication accordingl~: Provided, That no permit shall be issued to any national banking association having a capital and surplus less than the capital and surplus required by State law of State banks, trust com:panies, and corporations exe:.·cising such powors. 11 In view of this provision thoro can be no doubt that the Federal Reserve Board nay legally prescribe a minimuc capital for national batiks applying for trust powers and may decline to grant trust powers to any national bank which has not a capital equal to or in excess of the minir.:rom limit so prescribed by the Board. Of course, the miniz:Iurl ca.pi tal prescribed by the Federal Reserve Board cust not bo loss than the capital required by State law of State banks, trust companies, and othor corporations exercising trust powers. Respectfully, Walter Wyatt, Goneral Counsel. WW/NS
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