The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
liuling Lio. 5. X-8037 TELEGRAM FEDERAL RESERVE BCARD WASHINGTON October 2, 1934 CURTISS - Boston CASE - New York AUSTIN - Philadelphia WILLIAMS - Cleveland TRAITS. No. 2100 H X O - Richmond OTN N W O - Atlanta E TN STEVENS - Chicago W O - St. Louis OD PEYTON - Minneapolis M C O E - Kansas City CLR W L H - Dallas AS SARGENT - San Francisco Replying to inquiry as to whether and under what conditions nonmember bank which has executed agreement on F. R. B. Form T-l or T-2 under section 8(a) of Securities Exchange Act may cancel such agreement, Board has taken p o s i t i o n that, inasmuch as statute makes no reference to termination or c a n c e l l a t i o n except in case of "bank's f a i l u r e to comply with provisions of agreement, there i s doubt as to Board's power t o permit voluntary cancellation by a bank i n other cases and that, since question depends upon i n terpretation of criminal statute rather than interpretation of of Board's regulation. Board could not s a f e l y sanction such canc e l l a t i o n without opinion from Attorney General holding that such action would be lawful and would r e l i e v e bank from further compliance with agreement. Since i t i s practice of Attorney General to decline to express opinions except on basis of s p e c i f i c f a c t s i n actual cases requiring some action by Government, i t i s not believed to be p o s s i b l e to obtain opinion from Attorney General on hypothetical question. In order to clear up t h i s question, Board w i l l consider recommending to Congress at next s e s s i o n X-80S7 —2— that s t a t u t e be amended so as expressly to authorize voluntary cancellation of such agreement "by a bank which has closed out a l l loans made under section 8(a) while agreement was in f o r c e . (Signed) L. P. BETHEA. BETHEA.
@FedFRASER