Full text of Federal Reserve Bank of St. Louis Circulars : Correspondent Relationships Between Member Banks and Securities Dealers

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Octobcr 21, 1935.

CORRESPONDENT RELATIONSHIPS
BETWEEN MEMBER BANKS AND SECURITIES DEALERS

T o A ll M em ber Banks in D istrict N o. 8:

On June 23, 1934, the Board of Governors of the Federal Reserve System
granted a blanket permit until December 1, 1934, under Section 32 of the
Banking Act of 1933, authorizing correspondent relationships between any
member bank or banks, and any dealer or dealers in securities in connection
with underwriting and dealing in those securities excepted from the restric­
tions contained in Section 5136 of the Revised Statutes. (My circular of
June 29, 1934.)
This blanket permit was extended on December 4, 1934, for the period
until December 1, 1935, subject to the terms, conditions and instructions
contained in that perm it; provided, however, that member banks exercising
the privilege granted by said permit as extended are not required to furnish
information concerning operations unless and until the Board shall make
further requirements in this connection. (My circular of December 5, 1934.)
On October 21, 1935, the Board of Governors of the Federal Reserve
System extended until January 1, 1936, the permit extended by it on Decem­
ber 4, 1934, subjec* to the same terms, conditions and instructions. As you
know, the amendments to Section 32 of the Banking Act of 1933, which
become effective January 1, 1936, will eliminate from that section all reference
to correspondent relationships.
Respectfully,
J O H N S. W O O D ,
Federal R eserve A gent.