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Minutes for
To:
Members of the Board
From:
Office Of the Secretary
December 21, 1962
Attached is a copy of the minutes of the
of the Federal Reserve System on
Governors
of
Board
date.
the above
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.
Cbm. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Sbepardson
Gov. King
Gov. Mitchell
I •
Minutes of the Board of Governors of the Federal Reserve System
on Friday, December 21, 1962.
The available members of the Board met in
the Board Room at 10:00 a.m.
PRESENT:
Mr. Martin, Chairman
Mr. Mills
Mr. Robertson
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Mr. Young, Adviser to the Board and Director,
Division of International Finance
Mr. Cardon, Legislative Counsel
Mr. Koch, Associate Director, Division of
Research and Statistics
Mr. Holland, Adviser, Division of Research
and Statistics
Mr. Brill, Adviser, Division of Research and
Statistics
Mr. Hersey, Adviser, Division of International
Finance
Mr. Sammons, Adviser, Division of International
Finance
Mr. Landry, Assistant to the Secretary
Mr. Solomon, Assistant to the Director,
Division of Research and Statistics
Mr. Eckert, Chief, Banking Section, Division
of Research and Statistics
Mr. Yager, Chief, Government Finance Section,
Division of Research and Statistics
Mr. Axilrod, Senior Economist, Division of
Research and Statistics
Miss Dingle, Senior Economist, Division of
Research and Statistics
Mr. Bernard, Economist, Division of Research
and Statistics
Mr. Goldstein, Economist, Division of International
Finance
Money market review.
Mr. Bernard reported on developments in the
Government securities market, referring in the course of his remarks to
charts distributed before the meeting regarding the financing of dealers'
Positions and their bill holdings, following which Mr. Axilrod commented
•
-2-
12/21/62
on bank reserves, loans and investments, the liquidity of the economy,
and related matters.
Mr. Goldstein then discussed the foreign exchange
markets.
At the conclusion of these reports all members of the staff
with the exception of Messrs. Sherman, Kenyon, Young, Sammons, and
Landry withdrew and the following entered the room:
Hackley, General Counsel
Solomon, Director, Division of Examinations
O'Connell, Assistant General Counsel
Hooff, Assistant General Counsel
Goodman, Assistant Director, Division of
Examinations
Mr. Leavitt, Assistant Director, Division of
Examinations
Miss Hart, Senior Attorney, Legal Division
Mr. Lyon, Review Examiner, Division of Examinations
Mr.
Mr.
Mr.
Mr.
Mr.
The following actions were taken subject to ratification at the
next meeting at which a quorum was present:
Discount rates.
The establishment without change by the Federal
Reserve Banks of New York, Philadelphia, Chicago, and San Francisco on
December 20, 1962, of the rates on discounts and advances in their
existing schedules was approved unanimously, with the understanding that
appropriate advice would be sent to those Banks.
Distributed items.
The following items, copies of which are
attached to these minutes under the respective item numbers indicated,
were approved unanimously:
12/21/62
-3Item No.
Letter to Capitol Dairy Company and "A"-Standard Small
Loan Corporation, both of Chicago, Illinois, granting
determinations exempting them from all holding company
affiliate requirements except those contained in
section 23A of the Federal Reserve Act.
1
Letter to Brookwood, Inc., Tishomingo, Oklahoma, granting a determination exempting it from all holding
company affiliate requirements except those contained
in section 23A of the Federal Reserve Act.
2
Letters to Bankers International Corporation, New York,
New York, granting consent for (1) the purchase of
shares of Societe Generale de Banques au Cameroun,
Yaounde, Cameroun, and (2) the purchase of shares of
Societe Generale de Banques au Congo, Brazzaville,
Republic of the Congo.
3-4
Letter to Bankers International Financing Company, Inc.,
New York, New York, granting consent to the purchase of
shares of Corporacion Financiera Nacional, Medellin,
Colombia.
5
Letter to Sterling State Bank, Mt. Sterling, Ohio,
approving the declaration of a dividend in December
1962.
6
Letter to The Whitehouse State Savings Bank, Whitehouse,
Ohio, approving the establishment of a branch in the
village of Holland.
7
In a discussion preceding approval of Item No. 1, Governor Mills
commented that although the staff recommendation reflected the Board's
general policy in so-called one-bank holding company cases, he continued
to be disturbed about what he regarded as almost the practice of
subterfuge in some of these cases.
By this he referred to the apparent
use of banks as agencies for activities substantially unrelated to the
-4-
12/21/62
banking business, while the organizations controlling the banks claimed
this was not true and that the banks confined themselves to the normal
types of banking business.
Mx. Solomon noted that in this particular
case the question had been raised with the applicants through the
Federal Reserve Bank of Chicago.
In response to this question, the
applicants had stated that, although they intended to vote their stock
of The Lawndale National Bank of Chicago (Capitol Dairy Company owned
all of the stock of "A"-Standard Small Loan Corporation and the latter
owned about 90 per cent of the stock of Lawndale), the acquisition of
the bank shares was for investment purposes only and neither organization
had any plan or intention to engage, directly or indirectly, as a
business in managing or controlling banks, or any present intention to
acquire any substantial percentage of the stock of any other bank.
Thus,
as far as could be ascertained, applicants did not intend to use the bank
for purposes related to the finance company business engaged in by
"A"-Standard Small Loan Corporation and certain subsidiary small loan
companies.
Governor Robertson inquired whether an effort was made to
cover this point in connection with bank examinations, to which
Mr. Solomon replied that this was done in the case of examinations of
State member banks.
In the case of national banks, a review was made of
the reports of examination.
It was noted that duplicate originals of the approved Board letter
Would be prepared, one for Capitol Dairy Company and one for "A"-Standard
-5-
12/21/62
Small Loan Corporation.
It was also noted that "Au-Standard Small
Loan Corporation intended to acquire 5 of a total of 50,000
outstanding shares of the capital stock of Capitol Bank of Chicago, a
new nonmember bank in process of organization, and it was understood
that the Board's letter of transmittal to the Federal Reserve Bank of
Chicago would state that the acquisition of such shares would not be
regarded as cause for rescinding the determinations currently being
made.
Messrs. Young, Hooff, Sammons, Goodman, and Lyon withdrew from
the meeting at this point.
Report on competitive factors (New Haven, Connecticut).
Copies
had been distributed of a draft report to the Comptroller of the
Currency on the competitive factors involved in a proposed merger of
The American Bank and Trust Company and The Second National Bank of New
Haven, both of New Haven, Connecticut.
In discussion, reference was made to certain suggestions that had
been made for modifying the language of the conclusion of the report.
Following indication that the suggested changes were acceptable, the
report was approved unanimously for transmission to the Comptroller of
the Currency in a form containing the following conclusion:
As the applicant banks serve the same city and to some
extent provide alternative banking facilities, the proposed
merger would tend to lessen competition between them even
though their banking offices are not in direct competition
with one another. However, the over-all availability of a
wide range of banking services supplied by other commercial
and savings banks in the city of New Haven and its
metropolitan area would not be altered materially.
12/21/62
-6-
Report on competitive factors (Frederick-Brunswick, Maryland).
There had been distributed a draft of report to the Comptroller of the
Currency regarding the competitive factors involved in a proposed
merger of The Peoples National Bank in Brunswick, Brunswick, Maryland,
into Farmers and Mechanics-Citizens National Bank of Frederick,
Frederick, Maryland.
After discussion, the report was approved unanimously for
transmission to the Comptroller of the Currency in a form containing
the following conclusion:
The nearest offices of the two banks involved in this
proposal are about 15 miles apart, and a fairly moderate
amount of competition exists between them. The Bank of
Brunswick might be adversely affected if the proposed merger
is approved.
This merger, representing Citizens National's fifth
acquisition of a smaller institution since 1953, would
strengthen its already dominant position in the area.
Virginia Commonwealth Corporation (Item No. 8).
There had been
distributed copies of a memorandum from the Legal Division dated
December 20, 1962, regarding application by Virginia Commonwealth
Corporation, Richmond, Virginia, for a determination, pursuant to section
4(c)(6) of the Bank Holding Company Act, that the activities of two nonbanking subsidiaries, Virginia Standard Corporation and State-Wide
Insurance Corporation, Inc., were of the kind described in the section
in question, so as to make it unnecessary for Virginia Commonwealth
to divest itself of these corporations.
The memorandum noted that should
12/21/62
-7-
the Board make the requested determination, Virginia Commonwealth
Corporation would liquidate Virginia Standard Corporation, the insurance
business of which would thereafter be handled by State-Wide Insurance
Corporation, Inc., as an insurance affiliate of Virginia Commonwealth.
Inasmuch as a hearing on such an application was required under the Act,
preliminary arrangements had been made for a hearing at 10:00 a.m. on
January 15, 1963, at the Board's offices, such hearing to be private
unless otherwise ordered.
Attached to the memorandum was a notice of
request and order for hearing thereon in the form proposed for
publication in the Federal Register and for transmission to appropriate
parties.
It was suggested that if the Board approved the order, it
also designate Mr. William R. Ringer of the National Labor Relations
Board as Hearing Examiner to conduct the hearing, Mr. Ringer having been
selected by the Civil Service Commission.
The Notice of Request and Order for Hearing Thereon, a copy of
which is attached as Item No. 8, was approved unanimously and Mr. Ringer
was designated as Hearing Examiner to conduct the hearing.
The meeting then adjourned.
Secretary's Note: At 11:30 a.m. Chairman
Martin and Governors Mills and Robertson
met with Mr. John MacArthur, Chairman of
the Board of Citizens Bank & Trust Company,
Park Ridge, Illinois, at Mr. MacArthur's
request, pursuant to arrangements discussed
at the Board meetings on December 13 and 14,
1962, for discussion of the United Security
-8-
12/21/62
Account plan of the member bank. A memorandum of the meeting has been placed in
the Board's files.
Secretary's Note: Acting in the absence of
Governor Shepardson, Governor Mills today
approved on behalf of the Board memoranda
from appropriate individuals concerned
recommending the following actions relating
to the Board's staff:
Salary increase
Jane C. Charuhas, Training Technician, Division of Examinations,
from $5,045 to $5,375 per annum, effective December 23, 1962.
Outside business activity
Marguerite L. Renucci, Division of Bank Operations, to work on a
part-time basis for the Washington Calculating and Inventory Service.
,C(
Secre ary
Item No. 1
12/21/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADORIEll
amnia'. CORRESPONDENCE
TO THE •DAIRO
December 26, 1962
Mr. D. J. Shankman, Treasurer,
Capitol Dairy Company,
Chicago, Illinois.
Mr. D. J. Shankman, Treasurer,
"An-Standard Small Loan Corporation,
Chicago, Illinois.
Dear Mr. Shankman:
and
This refers to your letters of October 16, 1962,
of
Bank
Reserve
Federal
the
December 7, 1962, submitted through
the
of
rs
Governo
of
Board
Chicago, for determinations by the
Capitol Dairy Company
Federal Reserve System as to the status of
company affiliates.
holding
as
tion
Corpora
and "A".-Standard Small Loan
that
From the information submitted the Board understands
of
selling
s
busines
the
in
engaged
ly
primari
is
Capitol Dairy Company
Is
and distributing milk; that "P-Standard Small Loan Corporation
the
small
in
aries,
subsidi
through
or
y
directl
primarily engaged,
te
loan business; that such Corporation is a holding company affilia
the
by reason of the fact that it owns approximately 9C per cent of
of
outstanding shares of stock of The Lawndale National Bank
holding
Chicago, Illinois; that Capitol Dairy Company is aluo a
outcompany affiliate by reason of the fact that it owns all the
and
Company
standing stock of the Corporation; and that Capitol Dairy
tly,
indirec
"An-Standard Small Loan Corporation do not, directly or
own or control any stock of, or manage or control, any other banking
institution.
In view of these'facts, the Board has determined that
Capitol Dairy Company and "A"-Standard Small Loan Corporation are not
engaged, directly or indirectly, as a business in holding the stock
of, or managing or controlling, banks, banking assooiatims,
Mr. D. J. Shankman
-2-
savings banks, or trust companies within the meaning of section 2(c) of the Banking Act of 1933, as amended; and, accordingly,
they are not deemed to be holding company affiliates except for
the purposes of section 23A of the Federal Reserve Act, and do not
need voting permits from the Board of Governors in order to vote the
bank stock which they own.
If, however, the facts should at any time indicate that
Company and "A"-Standard Small Loan Corporation might
Dairy
Capitol
so engaged, this matter should again be submitted to
be
to
deemed
be
The
Board.
Board reserves the right to rescind these determinathe
determinations of this matter at any time on
make
further
and
tions
the basis of the then existing facts. Should future activities of,
or acquisitions by the Corporations or their subsidiaries, particularly
in bank stocks, even though not constituting control, result in the
Corporations attaining a position whereby the Board may deem desirable
a determination that the Corporations are engaged in the business of
holding bank stocks, or the managing or controlling of banks, the
determinations herein granted may be rescinded.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 2
12/21/62
WASHINGTON 25, D. C.
AC/CIRCUS OFFICIAL CORRESPUNDENCE
TO THE BOARD
December 26, 1962
Mr. Carl R. Landrum, President,
Brookwood, Inc.,
Tishomingo, Oklahoma.
Dear Mr. Landrum:
This refers to the request contained in your letter of
October 19, 1962, submitted through the Federal Reserve Bank of
Kansas City, for a determination by the Board of Governors of the
Federal Reserve System as to the status of Brookwood, Inc., as a
holding company affiliate.
From the information supplied, the Board understands that
Brookwood, Inc., is engaged primarily in conducting cattle ranching
operations; that such Company is a holding company affiliate of
First National Bank of Wynnewood, Wynnewood, Oklahoma, by reason of
the fact that it owns 92 per cent of the outstanding shares of stock
of that bank; and that such Company does not, directly or indirectly,
own or control any stock of, or manage or control, any banking
institution other than First National Bank of Wynnewood.
In view of these facts, the Board has determined that
Brookwood, Inc., is not engaged, directly or indirectly, as a
business in holding the stock of, or managing or controlling, banks,
banking associations, savings banks, or trust companies within the
meaning of section 2(c) of the Banking Act of 1933, as amended; and,
accordingly, the Company is not deemed to be a holding company
affiliate except for the purposes of section 23A of the Federal
Reserve Act, and does not need a voting permit from the Board of
Governors in order to vote the bank stock which it owns.
If, however, the facts should at any time indicate that
Brookwood, Inc., might be deemed to be so engaged, this matter
should again be submitted to the Board. The Board reserves the
r
Mr. Carl R. Landrum
-2-
of
right to rescind this determination and make further determination
this matter at any time on the basis of the then existing facts.
Particularly, should future acquisitions by or activities of
Company result in its attaining a position whereby the Board may
deem desirable a determination that the Company is engaged as a
business in the holding of bank stock, or the managing or controlling
of banks, the determination herein granted may be rescinded.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No. 3
12/21/62
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 210 1962
Bankers International Corporation,
16 Wall Street,
New York15, New York.
Gentlemen:
and on the basis of the
In accordance with the request
November 2, 1962, transinformation furnished in your letter of
of New York, the Board of
mitted through the Federal Reserve Bank
International Corporation
Governors grants consent for Bankers
s, par value CFA Francs
("BIC") to purchase and hold 4,000 share
Banques au Cameroun, Yaounde,
5,000 each, of Societe Generale de
approximately US$81,600, provided
Cameroun ("SGBCA"), at a cost of
from the date of this letter.
such stock is acquired within one year
upon condition that BIG
The Board's consent is granted
SGECA, as promptly as
in
stock
shall dispose of its holdings of
d at any time (1) engage
shoul
practicable, in the event that SGBCA
ibuting securities in the
distr
or
in issuing, underwriting, selling
ess of buying or sellbusin
al
gener
United States; (2) engage in the
the United States
in
s
ditie
commo
ing goods, wares, merchandise, or
t such as is
s
excep
State
d
or transact any business in the Unite
or (3) otheress;
gn
busin
forei
or
incidental to its international
judgment of
the
in
,
r
which
manne
a
wise conduct its operations in
its stock
of
ng
holdi
nued
the
s
conti
the Board of Governors, cause
on 25(a)
Secti
of
sions
the
provi
by BIG to be inappropriate under
.
under
s
of the Federal Reserve Act or regulation there
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth I. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
Item No. 4
12/21/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE DOARD
December 21, 1962
. Bankers International Corporation,
16 Wall Street,
New York 15, New York.
Gentlemen:
on the basis of the
In accordance with the request and
ber 9 and December 4,
Novem
information furnished in your letters of
of New York, the
Bank
ve
1962, transmitted through the Federal Reser
national Corporation
Inter
Bankers
Board of Governors grants consent for
shares, par value CFA Francs 5,000
("BIC") to purchase and hold 4,000
au Congo, Brazzaville, Republic of
each, of Societe Generale de Banques
ximately US81,600, provided such
the Congo ("SGBCO"), at a cost of appro
the date of this letter,
stock is acquired within one year from
that BIC shall
The Boards consent is granted upon condition
practicable,
as
as
,
tly
SGBCO
promp
dispose of its holdings of stock in
ng, undere
in
issui
(1)
engag
any time
in the event that SGBCO should at
s;
d
State
Unite
in
the
ities
writing, selling or distributing secur
wares,
,
goods
g or selling
(2) engage in the general business of buyin
business
any
act
trans
s or
d
merchandise, or commodities in the Unite State
nal
natio
inter
to its
in the United States except such as is incidental
r
manne
a
in
tions
opera
or foreign business; or (3) otherwise conduct its
nued
conti
the
s
cause
which, in the judgment of the Board of Governors,
the provisions of
under
ate
be
ropri
to
inapp
BIG
by
stock
holding of its
ations thereunder.
Section 25(a) of the Federal Reserve Act or regul
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Item No.5
12/21/62
WASHINGTON 25. D. C.
ADORE/II OPIOlAL. 001INCIBPONLIZNOE
TO THE IDAHO
December 21, 1962
Bankers International Financing Company, Inc.,
16 Wall Street,
New York 15, New York.
Gentlemen:
of the informa,
In accordance with your request and on the basis
r
1962, transtion furnished in your letters of November 28 and Decembe 11,
of Governors
Board
the
York,
New
of
Bank
Reserve
mitted through the Federal
Company, Inc. ("BIFC")
grants consent for Bankers International Financing
an Pesos 10
to purchase and hold 700,000 ordinary shares, par value Colombi
, at a
a
("CFN")
Colombi
n,
Medelli
l,
Naciona
era
each, of Corporacion Financi
d
cost of approximately US$700,000, provided such stook is acquire within
letter.
this
one year from the date of
The Board's consent is granted upon condition that BIFC shall
in
dispose of its holdings of stock in CFN, as promptly as practicable,
iting,
,
underwr
in
issuing
engage
(1)
time
any
at
the event that CFN should
selling or distributing securities in the United States; (2) engage in the
general business of buying or selling goods, wares, merchandise, or commodities in the United States or transact any business in the United States
except such as is incidental to its international or foreign business; or
of
(3) otherwise conduct its operations in a manner which, in the judgment
BIFC
by
stock
its
of
holding
ed
the
continu
the Board of Governors, causes
to be inappropriate under the provisions of Section 25(a) of the Federal
Reserve Act or regulations thereunder.
It is understood from your telegram of December 18, 1962, that
CFN does not receive deposits and has no intention of receiving deposits.
BIFC
Accordingly, this consent is granted with the further condition that
at
engage,
CFN
should
CFN
of
shares
of
s
holding
will divest itself of its
s.
busines
of
any time, in a deposit type
Please advise the Board of Governors, through the Federal Reserve
Bank of New York, when the acquisition of stock has been made.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
'
Item No.
6
12/21/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, O. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
December 21, 1962.
Board of Directors,
The Sterling State Bank,
Mt. Sterling, Ohio.
Gentlemen:
from the
The Board of Governors has received
ident
Pres
of
copy
a
land
Cleve
of
Federal Reserve Bank
he
which
in
Webber's letter dated December 10, 1962,
end
divid
n of a
requests permission for the declaratio
1962.
ber
00 in Decem
by The Sterling State Bank of $2,4
ration of this dividecla
the
for
ssion
permi
's
The Board
Paragraph 6, Secof
dend is required by the provisions
Section 5199(b),
and
Act,
ve
tion 9, of the Federal Reser
.
utes
Stat
United States Revised
s, the Board
After consideration of the fact
$2,400 in
of
end
approves the declaration of a divid
rize the
autho
not
December 1962. This letter does
later.
or
1962
in
end
divid
declaration of any other
Very truly yours,
(signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
Item No.
BOARD OF GOVERNORS
OF THE
evrret*n o
Ge
*
,
©OP*:414
.0
0
2
7
12/21/62
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
:Per
1
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
*tr,,-stg.rast
December 21, 1962
Board of Directors,
The Whitehouse State Savings Bank,
Whitehouse, Ohio.
Gentlemen:
The Board of Governors of the Federal Reserve
The
System approves the establishment of a branch by
,
Holland
of
Village
the
in
Bank
Savings
State
Whitehouse
one
Ohio, provided that the branch is established within
to
year from the date of this letter, and that, prior
is
stock
capital
establishment of the branch, the bank's
of
3
ph
by
Paragra
d
require
increased to the amount
Federal
Section 9 of the Federal Reserve Act and related
to
stock
capital
in
e
increas
d
propose
statutes. The
s.
statute
Federal
$150,000 will meet such requirements of
Very truly yours,
(signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
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.)
Item No. 8
12/21/62
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
NOTICE OF REQUEST FOR DETERMINATION
PURSUANT TO SECTDN 4(c)(6) OF
BANK HOLDING COMPANY ACT OF 1956 AND
ORDER FOR HEARING THEREON
been made to the
Notice is hereby given that request has
rve System, pursuant to
Board of Governors of the Federal Rese
Company Act of 1956 [12 U.S.C.
section 4(0)(6) of the Bank Holding
Boards Regulation Y [12 CFR
1843] and section 222.5(b) of the
Corporation, Richmond, Virginia,
222.5(b)]„ by Virginia Commonwealth
rmination that the activities
a bank holding company, for a dete
Corporation and Stateof its subsidiaries Virginia Standard
inia corporations, are .
Wide Insurance Corporation, Inc., Virg
tioned sections of the Act and
of the kind described in the aforemen
unnecessary for the prohibitions of
the Regulation so as to make it
ect to shares in nonbanking organizasection 4 of the Act with resp
the purposes of the Act.
tions to apply in order to carry out
Bank Holding Company
Inasmuch as section 4(0(6) of the
n pursuant thereto be
Act of 1956 requires that any determinatio
hearing and on the basis of
made by the Board after due notice and
the record made at such hearing,
TT IS HEREBY ORDERED,That pursuant to section 4(0)(6)
ance with
of the Bank Holding Company Act of 1956 and in accord
Regulation Y [12 CFR
sections 22205(b) and 222.7(a) of the Board's
Holding Company Act
222.5(b), 22207(a)], promulgated under the Bank
cing
of 1956, a hearing with respect to this matter be held commen
Federal Reserve
on January 15, 1963, at 10 a.m., at the offices of the
er selected by the
Board in Washington, D. C., before a hearing examin
strative
Civil Service Commission, pursuant to section 11 of the Admini
the Rules of
Procedure Act, such hearing to be conducted according to
the Federal
Practice for Formal Hearings of the Board of Governors of
Board
Reserve System (12 CFR Part 263]. The right is reserved to the
or such hearing examiner to designate any other date or place for
to be necessuch hearing or any part thereof which may be determined
The Board's
sary or appropriate for the convenience of the parties.
that "Al]. such
Rules of Practice for Formal Hearings provide, in part,
only by respondents
hearings shall be private and shall be attended
ves of the Board,
and their representatives or counsel, representati
al interest in the
witnesses, and other persons having an offici
n request of one
proceedings; Provided: however, That on the writte
,
or more respondents or counsel for the Board, or on its awn motion
s to
the Board, when not prohibited by law, may permit other person
attend or may order the hearing to be public."
ing
Any person desiring to give testimony in this proceed
through the
should file with the Secretary oftheBo:Td„ directly or
Federal Reserve Bank of Richmond, on or before January
7, 1963, a
petitioner's
written request containing a statement of the nature of the
interest in the proceeding, and a surnarry of the matters concerning
be
which said petitioner wishes to give testimony. Such request will
presented to the designated hearing examiner for his determination.
hearing
Persons submitting timely requests will be notified of the
examinerts decision.
Dated at Washington, D. C., this 21st day af December, 1962.
By order of the Board of Governors.
(Signed) Merritt Sherman
...smampasImosgragosI
Merritt Sherman,
Secretary.
(szAL)
@FedFRASER