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477 FEDERAL RESERVE BOARD WASHINGTON X-9070 a d d r e s s o f f i c i a l c o r r e s p o n d e n c e to the federal reserve board December 28,1934 Dear S i r : There i s a t t a c h e d h e r e t o a copy of a s e l f e x p l a n a t o r y l e t t e r which t h e F e d e r a l Reserve Board has a d d r e s s e d t o t h e F e d e r a l Reserve Agent a t P h i l a d e l p h i a i n r e g a r d t o p e r m i t t i n g r e p r e s e n t a t i v e s of t h e F e d e r a l Deposit I n s u r a n c e C o r p o r a t i o n t o see examination r e p o r t s of S t a t e member b a n k s . Very t r u l y yours v%iQjjxuh O m A ^ Chester Morrill Secretary Inclosure TO ALL FEDERAL RESERVE AGENTS EXCEPT THE FEDERAL RESERVE AGENT AT PHILADELPHIA 478 X-9070-a December 28, 1934 Mr. Richard L» A u s t i n , F e d e r a l Reserve Agent, F e d e r a l Reserve Bank of P h i l a d e l p h i a , Philadelphia, Pennsylvania Dear Mr. A u s t i n : Receipt i s acknowledged of your l e t t e r of October 29,1934, i n which you s t a t e t h a t you a n t i c i p a t e t h a t you w i l l r e c e i v e r e q u e s t s from examiners of t h e F e d e r a l Deposit Insurance C o r p o r a t i o n f o r p e r mission t o p e r u s e r e p o r t s of examination of some of t h e s t a t e member banks i n your d i s t r i c t . You r e q u e s t t o be advised whether you may l a w f u l l y allow duly a c c r e d i t e d r e p r e s e n t a t i v e s of t h e F e d e r a l Deposit Insurance C o r p o r a t i o n t o see such examination r e p o r t s and, i f s o , you ask t h a t t h e Board a u t h o r i z e you t o make t h e r e p o r t s a v a i l a b l e t o such representatives. As you know, s e c t i o n 9 of t h e F e d e r a l Reserve Act p r o v i d e s t h a t c o p i e s of t h e r e p o r t s of examination of S t a t e member banks "may, i n the d i s c r e t i o n of t h e F e d e r a l Reserve Board, be f u r n i s h e d t o t h e S t a t e a u t h o r i t i e s having s u p e r v i s i o n of such banks, t o o f f i c e r s , d i r e c t o r s , o r r e c e i v e r s of such banks, and t o any o t h e r p r o p e r p e r sons". S e c t i o n 12B(k) of t h a t Act p r o v i d e s t h a t t h e F e d e r a l Deposit Insurance Corporation "with t h e consent of any F e d e r a l r e s e r v e bank or of any board * * * may a v a i l i t s e l f of t h e use of i n f o r m a t i o n , s e r v i c e s , and f a c i l i t i e s t h e r e o f i n c a r r y i n g out t h e p r o v i s i o n s of 479 X-9070—a Mr. Richard L» A u s t i n - 2 this section". Although t h e F e d e r a l Reserve Board f e e l s t h a t i n f o r m a t i o n concerning t h e c o n d i t i o n of S t a t e member banks i s p r i m a r i l y intended f o r t h e c o n f i d e n t i a l u s e of t h e Board and t h e F e d e r a l r e s e r v e banks and t h a t extreme c a u t i o n should be e x e r c i s e d i n making any o t h e r use of t h i s i n f o r m a t i o n , i t i s the view of t h e Board t h a t t h e p r o v i s i o n s of law t o which r e f e r e n c e has been made j u s t i f y i t i n p e r m i t t i n g r e p o r t s of examination of s t a t e member banks t o be made a v a i l a b l e t o t h e F e d e r a l Deposit Insurance Corporation and i t s duly a u t h o r i z e d r e p r e s e n t a t i v e s f o r use i n t h e d i s c h a r g e of t h e i r o f f i c i a l d u t u e s . Consequently, t h e Board consents t o your f u r n i s h i n g r e p o r t s of examinat i o n of S t a t e member banks t o examiners of the F e d e r a l Deposit i n s u r a n c e C o r p o r a t i o n f o r t h e i r c o n f i d e n t i a l and o f f i c i a l use whenever you cons i d e r i t d e s i r a b l e t o do s o . In any such c a s e , i t i s assumed t h a t a t t e n t i o n w i l l be c a l l e d t o the f a c t t h a t t h e r e p o r t of examination i s s o l e l y f o r t h e c o n f i d e n t i a l use of t h e examiner of t h e F e d e r a l Deposit Insurance C o r p o r a t i o n and t h a t such o t h e r s t e p s w i l l be t a k e n as may be n e c e s s a r y t o p r o t e c t t h e c o n f i d e n t i a l n a t u r e of t h e i n f o r m a t i o n contained t h e r e i n . Very t r u l y y o u r s , (signed) Chester M o r r i l l Chester M o r r i l l , Secretary.
@FedFRASER