The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
tv. • .C-758S August 15, 1934. StrBJSCr: Sxclubion fro?- Banking Quarters of Member Banks and 3axJ:s V/hose Deposits are Inr.ured toy the Federal Deposit Insurance Corporation of O f f i c e s o* Oth ? :v Organ! zati ons. Dear S i r : An amendment to e x i s t i n g law has t e e n proposed for the purpose of excluding from the hanking quarters of member hanks and other hanks whose deposits are insured hy the Federal Deposit Insurance Corporation any other organization whose a c t i v i t i e s might embarrass such hanks or might render the supervision of the hanks more d i f f i c u l t . As submitted, the proposed amendment would prohibit any bank, banking a s s o c i a t i o n , or trust company, and any other organization or person engaged i n the banking, building and loan, brokerage, s e c u r i t i e s , insurance, indemnity or trust business, or i n Ihn bvainess of receiving d e p o s i t s , or engaged i n issuing or s e l l i n g -i- t e s ov other evidences of indebtedness, from occupying any part of t>o quarters in Which any or the business of a member bank or bank whose dop -: i t s are insured under s e c t i o n 1233 of the Federal Reserve Act i s conducted. Tan proposed pr . - i n i t i o s rc ild |idt include organization# which, R6 tenants, simply occ-mj-* s w c e i n other parts of the hank b u i l d i n g , and S p p l i e s only to or?*?*»iizatiotts which share space i n the tytrMn^ quarters or occupy r.-ijoiniru^ r.pac<.;, access to which i s p o s s i b l e through the bazfeiiv; quarters. ~ 8 0 X-7532 «* 2 •* l a order f t i.vi:z ^iro proper consideration to thv pro. j.. jfc.od ^,^aic!iuont, i t w i l l "be appreciated i f you w i l l make a» i n v e s t i " t i r i a your d i s t r i c t of the extent to which other organizations maintain o f f i c e s i n the banking quarters of member banks and other banks whose deposits are insured by the Federal Deposit Insurance Corporation, f.id what the e f f e c t on such organizations and the banks might be i f the proposed amendment were enacted i n t o law. In making the requested i n v e s t i - gation, i t i s not b e l i e v e d necessary or desirable to c i r c u l a r i z e State member banks, as i t i s believed that, from your general information and from information a v a i l a b l e to your examiners, an approximate idea may be obtained as to the extent the State member banks share t h e i r quarters with other organisations. I t aoy a l s o be p o s s i b l e i n conversations with the chief national bank examiners aad the supervising exa^iiners for the Federal Deposit Insurance Corporation to obtain further information as t o tho extent of such p r a c t i c e i n other banks, and i t i s not wipes ted that you should c i r c u l a r i z e the banks whose deposits are insured by the Federal Dep o s i t Insurance Corporation, as such inquiries ni£ht "c- n d s i ^ - r p r v t e d . The Board a l s o w i l l a ^ r o c i a t e your suggestions and comments, with • >- , special reference to the qu.estion the^fcor the purpose i s desirable and wlxethdr the proposed anoaicfoant as described above i s s u f f i c i e n t l y co;xprehensive, or whether, ojx f the other haafl f r e s u l t i n i n j u s t i c e t o some banks* i s too i n c l u s i v e and Would - Tory truly yours, Chaster Morrill Secretary.
@FedFRASER