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Authorized for public release by the FOMC Secretariat on 3/17/2020 CONFIDENTIAL--(F.R.) To Members of the Federal Open Market September 7, 1962 Committee and Presidents of Federal Reserve Banks not presently serving on the Committee. From R. W. Stone Subject: Malon S. Andrus, Inc. I wish to inform the Open Market Committee that effective August 30, 1962, the Trading Desk suspended trading relationships with the dealer firm of Malon S. Andrus, Inc. The reason for this action is that as a result of operat- ing losses the firm's net worth has been reduced to only $62,000, a figure too low to support a primary dealer operation in which one can have complete and unquestioned confidence that all commitments will be met. The firm's net worth at the time trading relationships were established with the Desk in the Spring of 1961 was $288,000. Mr. Andrus, the head of the firm, has been invited to explore with us the possibility of re-establishing trading relationships if his capital position should undergo substantial improvement. FOR FILES Ralph A. Young
@FedFRASER