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FEDERAL RESERVE BOARD WASHINGTON A D D R E S S OFFICIAL. C O R R E S P O N D E N C E T O T H E FEDERAL RESERVE BOARD X-7963 July 17, 1934. SUBJECT: Section 32 - Information to "be Submitted by Member Banks Operating Under Blanket Permi t . Dear Sir: In i t s telegram of June 23, 1934, Trans. 2015, the Federal Reserve Board advised you that i t had issued a permit under Section 32 of the Banking Act of 1933 authorizing any member bank or banks to have correspondent relationships with any dealer or dealers i n connect i o n with underwriting and dealing i n municipals and other obligations of the kinds exempted from the r e s t r i c t i o n s of Section 5136 of the Revised Statutes. In that telegram the Board stated that: n* * *instead of formal applications usually required, each member bank which exercises p r i v i l e g e granted herein s h a l l promptly furnish to Federal Reserve Agent of d i s t r i c t i n which member bank i s located such information concerning i t s operations under t h i s permit as Federal Reserve Board may require, and Board w i l l at an early date advise as to informat i o n which must be submitted. Upon receipt of required i n formation, each Federal Reserve Agent w i l l be expected to review promptly f a c t s involved in each correspondent r e l a t i o n ship covered by t h i s permit in h i s d i s t r i c t , and to advise Board of any case i n which f a c t s are such as to i n d i c a t e that permit should be revoked as to particular r e l a t i o n s h i p . Each Federal Reserve Agent i s requested to review a l l correspondent relationships covered by t h i s permit i n his d i s t r i c t , and adv i s e Board, not l a t e r than November 15, 1934, whether i n h i s opinion i t w i l l be compatible with the public i n t e r e s t to renew t h i s permit, s t a t i n g reasons for his opinion. • * *.lt X-7963 You are requested to advise a l l member "banks i n your d i s t r i c t that each, such hank a v a i l i n g i t s e l f of the p r i v i l e g e granted "by the. permit above referred to must submit to you promptly information describing the nature of the relationship and the following d e t a i l e d information regarding each syndicate operation i n which i t p a r t i c i p a t e s : 1. A description of the i s s u e , including the name of the i s s u e r , the nature of the obligations (whether bonds, notes, or other o b l i g a t i o n s ) , the amount of the i s s u e , the maturity, and the rate of i n t e r e s t ; 2. The names of the other manbers of the syndicate or group which participated i n the transaction; 3. The amount of the i s s u e subscribed for by the reporting member bank; 4. The amount of the issue actually taken by the reporting member bank; 5. The p r i c e paid for the s e c u r i t i e s by the member bank, and the price at which they were sold to the public. 6. The extent to which the member bank's p a r t i c i p a t i o n has been disposed of at the time of i t s report t o the Federal Reserve Agent and the extent, i f any, to which the member bank proposes to r e t a i n the s e c u r i t i e s f o r i t s own account. If i n any case you f e e l that the information submitted i s not s u f f i c i e n t to enable you to form a conclusion as to whether or not the X-7963 -3permit i n the particular case i s i n the public i n t e r e s t , you are r e quested to obtain such additional information from the member bank as you deem advisable. The information to be obtained i s intended to supplement the information available to you from reports of examination and other sources and a s s i s t you i n advising the Board as requested i n the l a s t trro sentences quoted above from i t s telegram of June 23, 1934, Trans. 2015. Very truly yours, Yf) Chester Morrill, Secretary. TO ALL F. B. A&MTS.
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