Full text of Mimeograph Letters and Statements of the Board : Statement for the Press re Amendment to Regulation L Adopted with Recommendation for Removal of Discrimination Between Member and Nonmember Banks, Number R-340, Volume 49, Page 191

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R-340191
BOARD OF GOVERlWRS
OF THE
FEDERAL RESERVE SYSTEM
Statement for the Press
For release in morning newspapers
of Thursday, November 10, 1938.

November 9, 1938.

The Board believes that the principles of Section 8 of the
Clayton Act, which relate to interlocking bank directorates, are
in the public interest and should be applied to all classes of
banks.

The law is now discriminatory in that it applies only to

cases involving member banks of the Federal Reserve System or
private banks.

The Board does not believe that there should be

discrimination in any respect among classes of banks subject to
Federal authority.
In view of the fact that less than a month will elapse between the convening of the new Congress and February 1, 1939, on
which date certain existing

relt:~tionships

would terminate, the

Board has exercised its discretion under the law, as to such relationships involving not more than two banks, to extend this time
to August 1, 1939.

This action was taken for the purpose of calling

the matter to the attention of Congress when it convenes, with a
recommendo.ti:)n that the existing dincrimination between member
bunks and :r...on-member bnnking institutions be removed so that the
provisions of the law will apply alike to all banks under Federal
authority.