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FEDERAL RESERVE BOARD WASHINGTON address official correspondence t o the federal reserve board SUBJECT! X--7692 November 21, 1933 Information in Connection with Applications Under Section 32 of the Banking Act of 1933. Dear Sir; In Section IV(e) of Regulation E, dealing with the provisions of Section 32 of the Banking Act of 1933, one of the f a c t o r s which w i l l he considered i n determining whether the issuance of a permit w i l l "be compatible with the public i n t e r e s t i s stated as follows: "Whether the proposed relationship w i l l have any undesirable e f f e c t upon the member bank's f i n a n c i a l condition, i t s credit or investment p o l i c i e s , or i t s p o l i c i e s i n dealing with i t s other customers," There appears to be some likelihood that, i n answering questions numbered 1 and 4 on Form 99c, s u f f i c i e n t d e t a i l w i l l not be given to permit the Board to determine whether or not the business of the dealer i n s e c u r i t i e s customarily includes the underwriting, f l o t a t i o n and d i s t r i b u t i o n of s e c u r i t i e s or p a r t i c i p a t i o n s i n such transactions, and whether the customary business dealings between the member bank and the dealer involve s e c u r i t i e s i n the underwriting, f l o t a t i o n or d i s t r i b u t i o n of which the dealer has been interested* I t i s , accordingly, requested that, i n submitting applications to the . Board involving Section 32, you advise the Board regarding these matters i n each case. Very truly yours, TO ALL F. R. AGENTS Chester Morrill, Secretary.
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