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TBtEdRAti X-7375 FEDERAL RESERVE BOARD Washington March 16, 1933 Curtiss - Boston Case - Sfew York Austin - P h i l a d e l p h i a Williams - Cleveland Hoxton - Richmond Newton - A t l a n t a Stevens - Chicago Wood - St. Louis B a i l e y - Minneapolis McClure - Kansas City Walsh - D a l l a s Newton - San Francisco TRANS 1690 In any case where i t appears necessary or d e s i r a b l e f o r the Board t o act e x p e d i t i o u s l y on an a p p l i c a t i o n f o r f i d u c i a r y powers r e c e i v e d from a national bank newly organized or proposed to be organized to take over the b u s i n e s s of s t a t e i n s t i t u t i o n s or other national banks e x e r c i s i n g t r u s t powers, you should promptly obtain from Chief I k t i o n a l Bank examiner of your d i s t r i c t or other r e l i a b l e sources information, i n c l u d i n g copy of report of any preliminary exami n a t i o n of applicant which may have been made, necessary t o enable you to forward t o Board, without d e l a y , information which i t must have t o a c t i n the premises. Such information should include f o l l o w i n g : ( a ) your views as to the general c o n d i t i o n of new bank; (b) summary statement concerning character of s u p e r v i s i o n to be given t r u s t department, making p a r t i c u l a r r e f e r e n c e to i t s t r u s t committee, i f any, and general q u a l i f i c a t i o n s of i t s membership; ( c ) the experience and q u a l i f i c a t i o n s of the t r u s t o f f i c e r s ; (d) what s u b s t a n t i a l c r i t i cisms, i f any, have been made of t r u s t department of t h e old i n s t i t u t i o n ; ( e ) whether t r u s t department of new bank w i l l continue under same management a s that of i n s t i t u t i o n which i t succeeds or proposes to succeed and, i f s o , what changes of p o l i c y , i f any, i n t h e conduct of the t r u s t department are contemplated. If the old i n s t i t u t i o n i s not a n a t i o n a l bank such information on t h e s e p o i n t s as you may be a b l e t o develop from S t a t e Banking Department, or other r e l i a b l e sources, should be obtained. P l e a s e a l s o ( f ) g i v e any other p e r t i n e n t f a c t s which may be of v a l u e to Board i n determining q u a l i f i c a t i o n s of applicant X-7375 - 2 - f o r e x e r c i s e of trust powers and adequacy of safeguards surrounding t r u s t s committed t o i t s care. Recommendations of your committee should, of course, accompany a p p l i c a t i o n . In any case of the kind r e f e r r e d to above advice o f r e c e i p t of a p p l i c a t i o n and your recommendation and that of your committee may be sent "by telegraph and i n f u r n i s h i n g the required information the symbols s e t out above may be used i n such transmission. In a l l such cases care should be taken to s e e that the information submitted under each such symbol i s adequate. I f i n any case your recommendation i s wired to Board b e f o r e you forward a p p l i c a t i o n you should i n c l u d e advice that your counsel has approved the form of a p p l i c a t i o n and has executed c e r t i f i c a t e of counsel u s u a l l y accompanying f i d u c i a r y a p p l i c a t i o n s . Your a t t e n t i o n i s c a l l e d t o conditions 15, 16 and 17 as s e t f o r t h i n Board's Trans 1619 which are prescribed f o r s t a t e i n s t i t u t i o n s e x e r c i s i n g t r u s t powers applying f o r membership, and Board's a t t i t u d e toward c e r t a i n types of investments f o r t r u s t funds as r e f l e c t e d i n these c o n d i t i o n s should be borne i n mind.
@FedFRASER