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Minutes for
To:
Members of the Board
From:
Office Of the Secretary
May 9,
1963
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.
Chin. Martin
Gov. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
Minutes of the Board of Governors of the Federal Reserve
System on Thursday, May
9, 1963. The Board met in the Board Roam
at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin 1/
Balderston, Vice Chairman
Mills
Robertson
Shepardson
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Mr.
Sherman, Secretary
Kenyon, Assistant Secretary
Fauver, Assistant to the Board
Hackley, General Counsel
Solomon, Director, Division of
Examinations
Johnson, Director, Division of
Personnel Administration
Hexter, Assistant General Counsel
Furth, Adviser, Division of International
Finance
Conkling, Assistant Director, Division
of Bank Operations
Benner, Assistant Director, Division of
Examinations
Leavitt, Assistant Director, Division
of Examinations
Mattras, General Assistant, Office of
the Secretary
Young, Senior Attorney, Legal Division
Doyle, Attorney, Legal Division
Collier, Chief, Current Series Section,
Division of Bank Operations
Poundstone, Review Examiner, Division
of Examinations
Circulated or distributed items.
The following items, copies
Of which are attached to these minutes under the respective item
/1143abers indicated, were approved unanimously:
Item No.
Letter to Continental International Finance
CorPoration, Chicago, Illinois, granting
!!ermission to purchase shares of Corporeion
inanciera de Foment() Industrial y Agropecuario,
"411i, Colombia.
T-7
—
Entered meeting at point indicated in minutes.
1
5/9/63
-2Item No.
Letter to Worthen Bank & Trust Company,
Little Rock, Arkansas, approving the
es
tablishment of a branch at Capitol
Avenue and Ringo Street.
2
Letter to Bank of America National Trust
and Savings Association, San Francisco,
California, authorizing the establishment
of a
branch in Bombay, India.
3
Letter to Mr. Swan, Chairman of the Committee
on Miscellaneous Operations, Conference of
Presidents, indicating that the Board would
not object in principle to the use of
Private carriers to transport new currency
from Washington to the Federal Reserve Banks
and branches.
4
With reference to Item No. 1
it was noted that the Board was
revieving a proposed revision of Regulation K, Corporations Doing Foreign
8anking or Other Foreign Financing under the Federal Reserve Act, which
vould appear to allow the applicant to make investments of this type
Ilithout specific approval.
In line with previous actions in similar
situations, the Board decided to include in the letter to Continental
Taternational Finance Corporation a paragraph that restricted Financiera
tram engaging in the business of receiving or paying out deposits, and it
Iras understood that if the revision of Regulation K were adopted in the
f°rIm proposed, notice would be given to Continental and other Edge Act
financing corporations holding similar authorizations that the condition
no longer applicable.
Report on competitive factors (Toledo, Ohio).
There had been
distributed a draft of report to the Federal Deposit Insurance Corporation
5/9/63
-3-
on the competitive factors involved in the proposed merger of The
State Bank of Toledo Company, Toledo, Ohio, into The Lucas County
Bank, Toledo, Ohio.
The report was approved unanimously for transmission to the
Corporation with the understanding that the conclusion would be revised
slightly to read as follows:
While the proposed merger will eliminate one of the
two competitive banks serving the same nearby city area,
and primarily the same type of customer, alternate sources
of banking services are readily available.
The resulting institution will be the smallest bank
in Toledo and the transaction should not have adverse effects
on any other bank operating in the Toledo area.
Chairman Martin joined the meeting at this point; Messrs.
DoYie and Poundstone withdrew; and Mr. Holland, Adviser, Division of
Research
and Statistics, entered the room.
Additional circulated or distributed items.
The following
additional items, copies of which are attached to these minutes under
the respective item numbers indicated, were approved unanimously:
Item No.
Letter to the Bureau of the Budget reporting
°4 a draft bill "To provide for increased
I',rticipation by the U. S. in the Inter*i.merican Development Bank, & for other purposes."
5
,Morandum from Mr. Noyes, Director of the
1a1on of Research and Statistics, dated
vlaY 7, 1963, regarding a request to provide
eertain data on factors affecting member bank
r'eserves to a committee of the American Bankers
Association.
6
5/9/63
Item No.
Letter to the Federal Reserve Bank of
Philadelphia approving the payment of salaries
to six officers at rates fixed by the Bank's
Board of Directors.
7
Letter to Continental Illinois National Bank
and Trust Company of Chicago, Chicago,
Illinois, authorizing the establishment of
an additional branch in London, England.
8
Messrs. Furth and Young then withdrew and Mr. Dembitz, Associate
Adviser, Division of Research and Statistics, entered the roam.
Extension of Securities Exchange Act (Item No. 9).
There had
been distributed a memorandum from Messrs. Hexter and Dembitz dated
MaY 7) 1963, submitting a proposed reply to a request from the Bureau
°f the Budget for the Board's views on certain provisions of a draft
bill Prepared by the Securities and Exchange Commission that would
ftend the Securities Exchange Act.
The Board's views were requested
011 that portion of the bill that would extend reporting requirements
4nd certain other provisions of the Act to securities traded over the
counter, including bank stocks.
The Board discussed the proposed legislation on April 26 and
4ril 30, 1963, and authorized Messrs. Hexter and Dembitz to attend a
meeting
called by the Budget Bureau for an inter-agency discussion of
the legislation.
According to the memorandum, the inter-agency meeting was
held on April 30 and included representatives from the Federal Deposit
InsUrance Corporation and the Office of the Comptroller of the Currency.
5/9/63
_5_
The Corporation indicated that it had not decided upon any viewpoint
regarding
the proposals to cover over-the-counter securities or the
inclusion of bank stocks in such coverage, but it seemed to feel that
if such legislation were enacted, the Corporation would not be an
aPpropriate agency to administer the program.
The Comptroller's Office
strongly opposed applying the provisions of the Securities Exchange
Act to bank
stocks traded over the counter.
The proposed letter to the Budget Bureau reflected the position
Previously
taken by the Board in favor of extending the provisions of
the Securities Exchange Act to the over-the-counter market of widely-held
st°cks, including bank stocks.
were
It also expressed the view that, if this
done, the provisions should be administered by the Securities and
Exchange Commission, with the understanding that the Commission would
ecInsult with the Federal bank regulatory authorities to avoid duplication
414 to assure that the Commission's activities in this field were consistent
Iiith the objectives of Federal And State authorities directed toward the
sound functioning of the banking system.
Following a review and discussion, there was general agreement
14 Principle to the extension of the Securities Exchange Act to bank
atc3eks traded over the counter.
After agreeing on editorial changes,
1111s1imous approval was given to a letter to the Bureau of the Budget
14 the form attached as Item No.
9.
Messrs. Hexter, Holland, Dembitz, Conkling, and Collier then
.41thdrew.
5/9/63
-6Branch advisory boards and honorary directors (Item No. 10).
There had been distributed a memorandum from the Division of Examinations dated May 1, 1963, in connection with a proposed letter to all
Federal Reserve Banks relating to information that the Board requested
in May 1958 be included in examination reports covering State member
banks on the extent of the practice of appointing persons to honorary,
advisory, or consultative capacities and the titles, duties, responsibilities) and compensation of special directors of such banks.
According
to the memorandum, the latest review indicated that 121 banks had special
d
irectors, most of whom were members of branch advisory boards and former
d
irectors of merged banks, whose knowledge of customers and local
conditions were generally valuable in the conduct of branch operations
841 in producing new business.
Mr. Benner stated that the information called for by the Board's
letter had been provided in the reports since 1958 although on several
°"asions Reserve Bsnks had suggested discontinuance of complete listing
°f all members of branch advisory boards, which was felt to be burdensome
alid appeared to the Banks to serve little or no useful purpose.
There
had been noted no instances of Objectionable practices in making such
appointments, and there had been only a few cases of unusual compensation
to honorary directors, each involving special circumstances.
The
1)ivision of Examinations concluded that no special supervisory problems
had
resulted from the practice of appointing branch advisory boards and
Itrivisory directors and recommended that the Board approve the proposed
5/9/63
-7-
letter that would rescind the request for detailed listing of all
such appointees.
Governor Robertson said that he favored approval of the
Proposed letter at this time, as recommended by the Division of
Examinations.
In reply to a question from Chairman Martin, Mr. Benner stated
that information regarding compensation of branch or honorary directors
/41111d continue to be provided in examination reports in accordance
with the request contained in the Board's letter of June
9, 1961
(S-1796, FRLS #6540.2).
The Board then approved unanimously the proposed letter to the
Federal Reserve Banks.
A copy is attached as Item No. 10.
The meeting then adjourned.
Secretary's Notes: Governor Shepardson
approved on behalf of the Board on
May 7, 1963, the following items:
a
Letter to the Federal Reserve Bank of St. Louis (attached Item No. 11)
PProving the designation of Eugene A. Leonard as special assistant
,
vx
aminer.
Telegram to the Federal Reserve Bank of Dallas (attached Item No. 12)
4Prowing the appointment of James R. Ratliff as assistant examiner.
Governor Shepardson today approved on behalf of
the Board a memorandum from the Division of
Examinations recommending that Karl E. Bakke,
Senior Attorney, Legal Division, be designated
as a Federal Reserve Examiner on a temporary basis
in connection with his participation in a forthcoming examination of a State member bank to be
conducted by examiners from the Federal Reserve
Bank of Richmond.
/1/
A. •
Secretary
";1.. 1
/
1
BOARD OF GOVERNORS
f;
Item No. 1
5/9/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 9, 1963
C4Lrinental International Finance Corporation,
231 South
LaSalle Street,
Chicago 90,
Illinois.
Gentleme
n:
In accordance with the request contained in your letter of March 12,
1963,
conse and on the basis of information furnished, the Board of Governors grants
for Continental International Finance Corporation to purchase and hold
500
N11;02r'0 ordinary shares, par value Pesos 10 each, of Corporacion Financiera de
of anro Industrial y Agropecuario (Financiera-Valle), Cali, Colombia, at a cost
one PProximately US$500,000 (equivalent), provided such stock is acquired within
Year from the date of this letter.
ati-on,,The Board's consent is granted upon condition that Continental InterValle "1 Flnance Corporation shall dispose of its holding of stock of Financierat! as promptly as practicable, in the event that Financiera-Valle should at
in the e (1) engage in issuing, underwriting, selling or distributing securities
gcod, United States; (2) engage in the general business of buying or selling
' wares, merchandise, or commodities in the United States or transact any
bu s11ess in the United States except such as is incidental to its international
or f,
1,
in the
business; or (3) otherwise conduct its operations in a manner which,
stockeciudgment of the Board of Governors, causes the continued holding of its
°Y Continental International Finance Corporation to be inappropriate under
the
Provisions of Section 25(a) of the Federal Reserve Act or regulations thereunder.
ha8n
It is understood that Financiera-Valle does not receive deposits and
with °L intention of receiving deposits. Accordingly, this consent is granted
`fle further condition that Continental International Finance Corporation
Vail divest itself of its holdings of shares of Financiera-Valle should Financierae engage, at any time, in a deposit type of business.
Res
The Board also grants its approval under Section 25(a) of the Federal
e Act and §211.9(d)(2) of Regulation K to the purchase and holding of such
qlaertevs.
Very truly yours,
(signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
Item No. 2
5/9/63
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 9, 1963
Board of Directors,
Worthen Bank & Trust Company,
Little Rock, Arkansas.
Gentlemen:
The Board of Governors of the Federal
hment by
Reserve System approves the establis
Rock,
le
Litt
any,
Worthen Bank & Trust Comp
on the
ow)
wind
s
ler'
(tel
Arkansas, of a branch
Fifth
t
(Wes
ue
Aven
tol
Capi
northeast corner of
nsas,
Arka
,
Rock
le
Litt
et,
Stre
Street) and Ringo
within one
provided the branch is established
er.
lett
this
of
year from the date
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
ed that the
(The letter to the Reserve Bank stat
nsion
exte
month
Board also had approved a sixch;
bran
blish the
of the period allowed to esta
d,
este
requ
ld be
and that if an extension shou
er
lett
d's
the Boar
the procedure prescribed in
owed.)
foll
be
ld
, shou
of November 9, 1962 (S-1846)
17
%.
BOARD OF GOVERNORS
Item No. 3
OF THE
5/9/63
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 9, 1963
Bank of America National Trust
and Savings Association,
San Francisco 20, California.
Gentlemen:
The Board of Governors of the Federal Reserve System
authorizes Bank of America National Trust and Savings Association, San Francisco, California, pursuant to the provisions
of Section 25 of the Federal Reserve Act, to establish a
branch in the City of Bombay, India; and to operate and maintain such branch subject to the provisions of such Section.
Unless the branch is actually established and opened
for business on or before May 1, 1964, all rights granted
hereby shall be deemed to have been abandoned and the authority
hereby granted will automatically terminate on that date.
Please advise the Board of Governors, in writing,
through the Federal Reserve Bank of San Francisco, when the
branch is opened for business, furnishing information as to
the exact location of the branch.
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.)
5
BOARD OF GOVERNORS
Item No.
F THE
4
5/9/63
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ENCE
ADDRESS OFFICIAL CORRESPOND
TO THE BOARD
May
9, 1963
Mr. Eliot J. Swan, Chairman,
Committee on Miscellaneous Operations,
Federal Reserve Bank of San Francisco,
San Francisco 20, California.
Dear Mr, Swan:
r consideration by your
This refers to the question unde
using private carriers,
of
Committee of the possible desirability
transport new currency
to
rather than the Post Office Department,
rve Banks and branches.
Rese
rrem Washington to the various Federal
rmally that neither the
The Board has been advised info
Treasury nor the Post Office Department would be inclined to object
means other than
if the Federal Reserve found it advantageous to use
the Board itregistered mail for the movement of new currency, and
the use of private carriers
Would not object in principle to
for this purpose.
to be no reason why your
Accordingly, there would appear
ntages and disadvantages
Committee should not explore further the adva
0.1 the offer which it is understood has been made by Brinks', Inc.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
•
BOARD OF GOVERNORS
Item No.
OF THE
5
5/9/63
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 9, 1963
Mr. Phillip S. Hughes,
Assistant
Director for
Legislative.Reference,
Bureau of the Budget,
Washington 25, D. C.
Dear Mr.
Hughes:
This is in response to your request of May 7, 1963, for a
port on a Treasury draft bill, "To provide for increased participation 1,
uY the u, s. in the Inter-American Development Bank, & for other
PurPoses.ft
You are advised that the Board interposes no objection to
the Proposed legislation.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
Item No.
MEMORANDUM
6
5/9/63
May 7, 1963.
TO:
PROM:
Board of Governors
SUBJECT:
Guy E. Noyes
Provision of reserve data to
American Bankers Association
Committee
The American Bankers Association has established a "Project
Committee on the Reserve Settlement Periods of Member Banks" to study
Pr
°Pwial for lengthening and staggering the reserve settlement periods
Of member banks.
a
The proposal currently being contemplated is for
teeerye period of one-month's duration, with staggered settlement dates
IlrbIN the banks so that approximately one quarter of the banks would
a
ttle on the monthly basis on each of the first four Wednesdays in any
[(311t11. The avowed purposes of the proposal are to (1) maximize the
effetiveness of monetary policy techniques, chiefly by reducing the
tieed for System open market operations to offset intra-monthly fluctuation
s in other factors affecting reserves and (2) to reduce the operating
134 Nen8 of the member banks.
Studies of these proposals have been carried forward largely by
st4ff members of the American Bankers Association. The Proposal has not
bee„
4 e
ndorsed by any ABA group as yet, but the Project Committee (which
cc)48ists entirely of ex-Federal Reserve System personnel) and the parent
Ilesearch Committee of the ABA both unanimously recommended that further
4" more explicit statistical investigation be undertaken. To accomplish
B4ch further investigation, the ABA has requested that the Board provide
Its Project Committee with daily statistics on the major factors affecting
44e ves over a span of six months.
-2Accordingly, it is recommended that the Board authorize the
forwarding to the ABA of data on the following factors' affecting the
Bui5PlY of reserves on each of the calendar days in the period April 1Se
Ptember 30, 1961: (1) Currency in circulation; (2) Treasury deposits
ith
Federal Reserve Banks; (3) Federal Reserve float; (4) Federal
Reserve holdings of securities; (5) Federal Reserve discounts and
flecu; (6) all other factors, net; (7) total member bank reserves
at
Federal Reserve Banks; (8) vault cash; (9) total reserves held;
(1°) required reserves; and (11) excess reserves.
None of these figures evidencing day-to-day changes are now
a
matter of public record, although of course the Wednesday totals and
dap
tY averages of such figures over the course of each statement week
are
Published in somewhat greater detail than here proposed. There
app
eare to be no harm, however, in releasing the selected daily reserve
atati
sties for some past period for purposes of responsible study.
The Board staff is not inclined to favor this proposal for
ehanging reserve periods, on the basis of its current understanding of
the
Procedures and implications involved. Nonetheless, it is believed
that
ilAre
the provision of the requisite information for this type of
li tigation is in the public interest and serves the purpose of good
bank
relations.
Item No. 7
5/9/63
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 9, 1963
CO
NFIDENTIAL (FR)
Mr. Robert N., Hilkert,
First Vice President,
Federal Reserve Bank
of Philadelphia,
Ph
iladelphia 1, Pennsylvania.
Dear Mr. Hilkert:
The Board of Governors approves the payment of salaries
to the following officers of the Federal Reserve Bank of Philadelphia
!„'" the period June 1 through December 31, 1963, at the rates
Indicated
which are the rates fixed by your Board of Directors as
reported in your letter of April 19.
Name
Joseph M. Case
Warren R. Moll
James P. Giacobello
William L. Ensor
Harold E. Ikeler, Jr.
JaMes A. Agnew, Jr.
Salary
Title
Assistant Vice President
Assistant Vice President
Chief Examining Officer
Examining Officer
Examining Officer
Assistant Cashier
$17,000
14,000
14,000
12,000
12,000
11,000
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
BOARD OF GOVERNORS
Item No.
OF THE
8
5/9/63
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE EIOARD
May 9, 1963
Continental Illinois National Bank
and Trust
Company of Chicago,
231
n South
LaSalle Street,
''Ilicago 90, Illinois.
Ge
ntlemen:
System authorizes
The Board of Governors of the Federal Reserve
Chicago, Chicago,
coritinental
Illinois National Bank and Trust Company of
25 of the Federal Reserve
Act rl°161 pursuant to the provisions of Section
London, England; and
to ! to establish a branch in the West End District of
of such
provisions
°Perate and maintain such branch subject to the
'ections
and opened for business
Unless the branch is actually established
deemed to have
:
%
1 )1" before May 1, 1964, all rights granted hereby shall be
terminate
automatically
0 n abandoned and the authority hereby granted will
4 that
date
writing, through the
Please advise the Board of Governors, in
opened for business,
Reserve Bank of Chicago, when the branch is
branch.
the
of
lShing information as to the exact location
Ped.—
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
The
(
s,
letter to the Reserve Bank stated that the Board also had approved
)(-m0nth extension of the period allowed to establish the branch;
4144
'
14 4,
t_hat if an extension should be requested, the procedure prescribed
"qe Board's letter of November 9, 1962 (S-1846), should be followed.)
Item No.
9
5/9/63
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
May 9, 1963.
Mr. Phillip S. Hughes,
Assistant Director for
Legislative Reference,
Bureau of the Budget,
Washington 25, D.
C.
Dear Mr. Hughes:
This is in response to your Legislative Referral Memorandum
of April 19:1963, requesting the views of the Board regarding certain
Provisions of a draft bill that had been prepared by the Securities
and Exchange Commission. The provisions in question would amend
section 12 of the Securities Exchange Act of 1934 by adding thereto
a new subsection (g).
On May 2, 1963, the Bureau of the Budget transmitted to
tI:le Board a revised draft ("Draft 4/25/63") of the proposed new sec_ 1()11. 12(g). This letter relates to said revised draft rather than
ale draft that was enclosed with the Legislative Referral Memorandum
of April 19, 1963.
The Board is in agreement with the purpose of the proposed
s!ction 12(g), which is to provide for stockholders of corporations
wuose securities are widely distributed, but not registered on an
exchange, information and saieguarth; which the Sec,irities Exchange Act
requires with respect to securities that are so registered.
It is noted that, in contrast with earlier bills, which would
not have applied to stocks of banks, the present bill would cover bank
teicks as well as other stocks. The Board sees no objection to the
Inclusion of bank stocks. While the adding of the proposed requireillents to the present system of bank regulation and supervision would
cessitate careful administration in order to avoid inconsistency,
,
uPlication, unreasonable demands, and undesirable disclosures, the
'50ard believes that the requirements can be administered in such a way
aS to avoid serious problems of this kind.
r
Under the draft bill, the provisions of section 12(g) would
administered
nistered by a banking regulatory authority, in the case of
!
ecurities issued by banks. It would be highly desirable, of course,
at the administration of the proposed reporting requirements and
Pr°xY rules should take into account the special situation of banks,
especially the extent to which banks are already subject to governmental supervision. Nevertheless, the Board does not believe that this
be
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
SAdf;
Mr. Phillip S. Hughes
necessitates that these provisions be administered by an agency other
than the SEC, and efficiency would be promoted if the administration
of these provisions with respect to banks as well as other issuers
were performed by a single agency.
Section 13(b) of the Securities Exchange Act provides that
It
in the case of the reports of any person whose methods of accounting
are prescribed under the provisions of any law of the United States,
or any rule or regulation thereunder, the rules and regulations of the
Commission with respect to reports shall not be inconsistent with the
requirements imposed by such law or rule or regulation in respect of
the same subject matter." Apart from compliance with this provision
of law, it would seem desirable for the SEC, in administering the proPosed provisions with respect to securities of banks, to consult with
the Federal banking regulatory authorities in order to avoid unnecessary duplication and to assure that the Commission's activities in
this field will be consistent with objectives of both Federal and State
authorities directed toward the sound functioning of the banking system.
Assuming that such consultation will take place, the Board considers
that it would be preferable that the SEC be given responsibility for
administering the proposed provisions.
For the foregoing reasons, the Board recommends that the
Proposed new section 12(g) of the Securities Exchange Act be modified
bY deleting the provision (paragraph "(8)") that would vest "all the
Powers, functions and duties of the Commission pursuant to the provisions of this subsection" in one or more of the Federal bank regulatory
authorities, in the case of "any security issued by a bank".
Very truly yours,
I\ y
Merritt Sherman,
Secretary.
.
Item No. 10
5/9/63
BOARD OF GOVERNORS
OF THE
a*
*
*
FEDERAL RESERVE SYSTEM
S-1870
WASHINGTON 25, D. C.
NDIENCIE
ADDRESS OFFICIAL CORRIMPO
TO THE BOARD
4410
May 10, 1963.
bear sir:
1960
In the Board's letters of May 22, 1958, and June 15,
-c
rewere
(1656
46 and S-1746; FRLS #3354), Reserve Bank examiners
(bIrsted to include in reports of examination the names of members of
branch
honorary,
advisory boards and other persons appointed in an
of directors of State
mens°rY, or consultative capacity to boards
moer banks and various other information about such persons.
necessary
In future reports of examination, it will not be
ing comregard
include such information, except that information
d on
reporte
::nsation of branch or honorary "directors" should be
with
nce
accorda
of examination in
thr A of the supplemental report
6,
(S-179
1961
b, request contained in the Board's letter of June 9,
raLS
#6540.2).
to
ry
In view of the close relationship of branch adviso
boards
y of
scrutin
l
carefu
lo
and honorary directors to their banks,
ly
unusual
of
review
14,ns to such persons and their interests, and
comand
ued,
contin
be
m;ueral compensation arrangements, should
_nts should be made on appropriate pages of the report when
cunsidered necessary.
Very truly yours,
Merritt Sherman,
Secretary.
1° THE PRESIDENTS OF ALL FEDERAL RESERVE BANKS
rriC
C.11.4;.•(-1
BOARD OF GOVERNORS
Item No. 11
5/9/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFIDIAL CoRREsPONDENCE
TO THE BOARD
May
7, 1963
AIR MAIL
Mr. 0. 0. Wyrick, Vice President,
Pederal Reserve Bank of St. Louis,
St. Louis 66, Missouri.
N.ar Mr. Wyrick:
In accordance with the request contained in your letter
Of A
Le_ Prll 30, 1963, the Board approves the designation of Eugene A.
Bank
of St. as a special assistant examiner for the Federal Reserve
oz
Louis.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
I 529
AM
TELEGR
SERVICE
LEASED WIRE
BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON
Item No. 12
5/9/63
May 81 1963
SULLIVAN
- DALLAS
Reurlet May 3, 1963, Board approves appointment of James R.
Ratliff as assistant examiner for Federal Reserve Bank of Dallas,
e
ffective today.
(Signed) Elizabeth L. Carmichael
CARMICHAEL
@FedFRASER