The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
?R 609
Minutes for
To:
Members of the Board
From:
Office of the Secretary
April 5, 1966
Attached is a copy of the minutes of the
Board of Governors of the Federal Reserve System on
the above date.
It is not proposed to include a statement
with respect to any of the entries in this set of
minutes in the record of policy actions required to
be maintained pursuant to section 10 of the Federal
Reserve Act.
Should you have any question with regard to
the minutes, it will be appreciated if you will advise
the Secretary's Office. Otherwise, please initial
below. If you were present at the meeting, your
initials will indicate approval of the minutes. If
you were not present, your initials will indicate
only that you have seen the minutes.
Chm. Martin
Gov. Robertson
Gov. Shepardson
Gov. Mitchell
Gov. Daane
Gov. Maisel
Gov. Brimmer
Minutes of the Board of Governors of the Federal Reserve
System on Tuesday, April 5, 1966.
The Board met in the Board
Room at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Shepardson
Daane
Maisel
Brimmer
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant to the Board
Solomon, Director, Division of Examinations
Shay, Assistant General Counsel
Sammons, Associate Director, Division of
International Finance
Mr. Leavitt, Assistant Director, Division of
Examinations
Miss Eaton, General Assistant, Office of the
Secretary
Messrs. Egertson, Maguire, and Poundstone of
the Division of Examinations
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Approved items.
The following items, copies of which are
attached to these minutes under the respective numbers indicated, were
L.a.P.21:2"22s1 unanimously after consideration of background material that
had been made available to the Board:
Item No.
Letter to Manufacturers and Traders Trust
Company, Buffalo, New York, approving the
establishment of a branch in the Twin Fair
Plaza.
1
Letter to The Schenectady Trust Company,
Schenectady, New York, approving the establishment of a branch in the County Line
Shopping Center, Town of Colonie.
2
1184
4/5/66
-2Item No.
Letter to Chemical International Banking
Corporation, New York, New York, approving
(1) an amendment to its Articles of Association and (2) acquisition of shares of
Frankfurter Bank, Frankfurt/Main, Germany.
3
Letter to The First State Bank of Hotchkiss,
Hotchkiss, Colorado, approving an investment
in bank premises.
4
ltport on competitive factors.
A report to the Comptroller of
the Currency on the competitive factors involved in the proposed merger
of First National Bank
in Crestline, Crestline, Ohio, into First National
Bank of Mansfield, Mansfield, Ohio, was approved unanimously for transmittal to the Comptroller in a form in which the conclusion was stated
as follows:
While there appears to be only slight competition existing between First National Bank of Mansfield and First National
Bank in Crestline, consummation of the proposed merger would
increase the size of the largest bank operating in the area
involved in this proposal, which bank now holds about 32 per
cent of the area's deposits of individuals, partnerships, and
corporations. In this latter respect, the effect of the transaction on competition is adverse.
The meeting then adjourned.
Secretary's Note: Governor Shepardson
today approved on behalf of the Board
a letter to the Federal Reserve Bank of
Cleveland (attached Item No. 5) approving the appointment of Ronald M. Cohen
as assistant examiner.
Secretary
i1 M5
BOARD OF GOVERNORS
Item No. 1
4/5/66
OF THE
FEDERAL RESERVE SYSTEM
•
•
WASHINGTON, O. C. 20551
*moms orricuka. CORRIESPONOCNCE
TO TUC BOARD
"..44Littst
•• ••*
April 5, 1966
Board of Directors,
Manufacturers and Traders
Trust Company,'
Buffalo, New York.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by Manufacturers and
Traders Trust Company, Buffalo, New York, of a branch
at the southwest corner of the Twin Fair Plaza, 2101
Elmwood Avenue, Buffalo, New York, provided the branch
is established within one year from the date of this
letter.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
(The letter to the Reserve Bank stated that the
Board also had approved a six-month extension
of the period allowed to establish the branch;
and that if an extension should be requested,
the procedure prescribed in the Board's letter
of November 9, 1962 (S-1846), should be followed.)
Tii
BOARD OF GOVERNORS
Item No. 2
4/5/66
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS
orriciAL
CORRESPONDENCE
TO THE BOARD
April 5, 1966
Board of Directors,
The Schenectady Trust Company,
Schenectady, New York.
Gentlemen:
The Board of Governors of the Federal Reserve
System approves the establishment by The Schenectady
Trust Company, Schenectady, New York, of a branch in
the County Line Shopping Center on State Route 7, Town
of Colonie (unincorporated area), Albany County, New
York, provided the branch is established within one
year from the date of this letter.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
(The letter to the Reserve Bank stated that the
Board also had approved a six-month extension
of the period allowed to establish the branch;
and that if an extension should be requested,
the procedure prescribed in the Board's letter
of November 9, 1962 (S-1846), should be followed.)
11 S7
BOARD OF GOVERNORS
Item No. 3
OF THE
4/5/66
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS
orructAL
CORRESPONDENCE
TO THE BOARD
April 5, 1966.
Chemical International
Banking Corporation,
20 Pine Street,
New York, New York.
10015
Gentlemen:
Reference is made to a letter from the Federal Reserve
Bank of New York dated March
22, 1966, enclosing a copy of a resolution adopted by the shareholders amending the Articles of
Association of your Corporation to increase the capital stock to
$4,000,000,
consisting of 40,000 shares of the par value of $100
each. The Board of Governors approves the amendment to Article
SEVENTH of your Articles of Association. Please advise the Board
of Governors when
the capital increase has been effected.
As requested in your letter of February 23, 1966, the
Board of Governors grants consent for Chemical International Banking
Corporation ("CIBC") to purchase and hold 26,000 shares, par value
DM 100 each, of
Frankfurter Bank ("FFB"), Frankfurt/Main, Federal
Republic of Germany, at a cost of approximately US$2,827,500, provided such shares are acquired within one year from the date of this
letter. In this connection, the Board also approves the purchase
and holding of such
shares in excess of 15 per cent of CIBC's capital
and surplus.
Section 211.9(b) of Regulation K, which relates to "liabilities of one borrower", provides, in part:
"Except as the Board may otherwise specify, the total liabilities to a Corporation of any person shall at no time
exceed 50 per cent of the Corporation's capital and surplus,
or 10 per cent thereof if it is engaged in banking. In
this paragraph 'liabilities' includes: any obligations for
money borrowed and shares of stock; . . .
Subject to continuing observation and review, the Board suspends, until further notice,
the provisions of the above-quoted portion of
Section 211.9(b) to the extent that the investment by CIBC in the
stock of FFB would cause "liabilities" to exceed the percentage limitations stated therein.
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
Chemical International
Banking Corporation
-2-
It is noted that CIBC and FFB will each pay a fee of onehalf of I per cent of the purchase price to S. G. Warburg & Company,
London, in recognition of the original introduction.
The foregoing consent is given with the understanding that
the investment now being approved, combined with other foreign loans
and investments of your Corporation, Chemical International Finance,
Ltd., and Chemical Bank New York Trust Company, will not cause the ,
total of such loans and investments to exceed the guidelines established under the voluntary foreign credit restraint effort now in
effect and that due consideration is being given to the priorities
contained therein. The Board considers that compliance with the
priorities expressed in Guideline 4 would require that total nonexport credits to developed countries in Continental Western Europe
not exceed the amount of such loans and investments as of the end of
1965, unless this can be done without inhibiting the bank's ability
to meet all reasonable
requests for priority credits within the overall target.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 4
4/5/66
WASHINGTON, O. C. 20551
AOORE•11 OFFICIAL CORRESPONDENCE
TO THE •OARO
April 5, 1966
Board of Directors,
The First State Bank of Hotchkiss, Colorado,
Hotchkiss, Colorado.
Gentlemen:
Pursuant to the provisions of Section 24A
of the Federal Reserve Act, the Board of Governors
of the Federal Reserve System approves an investment in bank premises of not to exceed $65,000 by
The First State Bank of Hotchkiss, Colorado, Hotchkiss,
Colorado, for the purposes of remodeling banking
quarters.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
1190
BOARD OF GOVERNORS
Item No. 5
4/5/66
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS
OFFICIAL
CORRESPONDENCE
TO TNE BOARD
April 5, 1966
Mr. Harry W. Huning, Vice President,
Federal Reserve Bank of Cleveland,
Cleveland, Ohio. 44101
Dear Mr. Huning:
In accordance with the request contained in
your letter of March 31, 1966, the Board approves the
appointment of Ronald M. Cohen as an assistant examiner
for the Federal Reserve Bank of Cleveland. Please
advise the effective date of the appointment.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
@FedFRASER