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9 Minutes for November 28, 1966 To: Members of the Board From: Office of the Secretary 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 a meeting of the available members of the Board of Governors of the Federal Reserve System on Monday, November 28, 1966. The meeting was held in the Board Room at 10:00 a.m. PRESENT: Mr. Martin, Chairman Mr. Robertson, Vice Chairman Mr. Brimmer Sherman, Secretary Kenyon, Assistant Secretary Holland, Adviser to the Board Fauver, Assistant to the Board Hackley, General Counsel Brill, Director, Division of Research and Statistics Mr. Solomon, Director, Division of Examinations Mr. Leavitt, Assistant Director, Division of Examinations Miss Wolcott, Technical Assistant, Office of the Secretary Supervisory Review Examiner, Egertson, Mr. Division of Examinations Mr. Mr. Mr. Mr. Mr. Mr. The following actions were taken subject to ratification at the next meeting of the Board at which a quorum was present: Approved items. The following items were approved unanimously after consideration of background information that had been made available to the Board. Copies are attached under the respective numbers indicated. Item No. Letter to Wells Fargo Bank, San Francisco, California, granting an extension of time to establish a branch in Fresno. 1 Letter to the Federal Reserve Bank of New York waiving the assessment of a penalty Incurred by Bank of New York, New York, New York, because of a deficiency in its required reserves. 2 11/28/66 -2Item No. 3 Letter to Southern Bank and Trust Company, Richmond, Virginia, granting its request for permission to maintain reduced reserves. Reports on competitive factors. A report to the Comptroller of the Currency on the competitive factors involved in the proposed merger Of The First National Bank of Butler, Butler, New Jersey, into The First National Iron Bank of New Jersey, Morristown, New Jersey, was approved unanimously for transmittal to the Comptroller. The conclusion read as follows: Little competition now exists between The First National Bank of Butler and The National Iron Bank of New Jersey, Morristown. Consummation of the proposal would, however, eliminate potential for more competition between them and increase the already high level of banking concentration in Morris County. The overall competitive effect of the proposal on competition would be significantly adverse. A report to the Comptroller of the Currency on the competitive factors involved in the proposed merger of The First National Bank of Genesee, Genesee, Pennsylvania, into The Grange National Bank of Potter County at Ulysses, Ulysses, Pennsylvania, was approved unanimously for transmittal to the Comptroller. The conclusion stated that the proposed merger would not have adverse competitive effects. With respect to a draft of report to the Federal Deposit Insurance Corporation on the competitive factors involved in the proposed merger of National Bank of Oak Cliff in Dallas, Dallas, Texas, into South Oak Cliff State Bank, also of Dallas, it was agreed that action would be deferred 11/28/66 -3- until the Division of Examinations had attempted to obtain from the Federal Reserve Bank of Dallas certain additional information requested by Governor Robertson. 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 (copy attached as Item No. 4) approving the appointment of Gary N. Fields and Robert T. Glover as examiners. • Item No. 1 11/28/66 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD November 28, 1966 Board of Directors, Wells Fargo Bank, San Francisco, California. Gentlemen: The Board of Governors of the Federal Reserve System extends to November 17, 1967, the time within which Wells Fargo Bank, San Francisco, California, may establish a branch at the intersection of Shaw Avenue and First Street, Fresno, California. Very truly yours, (Signed) Karl E. Bakke Karl E. Bakke, Assistant Secretary. BOARD OF GOVERNORS Item No. 2 11/28/66 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS tiFFICIIAL CORRESPONDENCE TO rHt BOARD November 28, 1966 Mr. A. J. Stanton, Manager, Accounting Department, Federal Reserve Bank of New York, New York, New York. 10045 Dear Mr. Stanton: This refers to your letter of October 31, regarding a ptnalty of $3,258.05 incurred by the Bank of New York on a 3.6 Per cent deficiency in its required reserves for the reserve tomputation period ended October 5, 1966. It is noted that the deficiency resulted from failure of a bookkeeper at the member bank to post to the reserve dtcount $20 million in clearing house debits on the last day of the reserve period, that the error was discovered too late to allow for replenishment of the reserve account, that the penalty tannot be waived under Paragraph E of the Board's instructions, and that the member bank has a good record over a long period of time in maintaining its required reserves. In the circumstances, the Board authorizes your Bank to waive assessment of the penalty of $3,258.05 for the weekly reserve computation period ended October 5, 1966. Very truly yours, (Signed) Merritt Sherman Merritt Sherman, Secretary. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Item No. 3 11/28/66 WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE SOAR° November 28, 1966 Board of Directors, Southern Bank and Trust Company, Richmond, Virginia. 23219. Gentlemen: With reference to your request submitted through the Federal Reserve Bank of Richmond, the Board of Governors, acting under the provisions of Section 19 of the Federal Reserve Act, grants permission to the Southern Bank and Trust Company to maintain the same reserves against deposits as are required to be maintained by nonreserve city banks, effective with the first biweekly reserve computation period beginning after the date of this letter. Your attention is called to the fact that such permission is subject to revocation by the Board of Governors. Very truly yours, (Signed) Kenneth A. Kenyon Kenneth A. Kenyon, Assistant Secretary. /1.356 BOARD OF GOVERNORS Item No. 4 11/28/66 OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D. C. 20551 ADDRESS OFFICIAL CORRESPONDENCE TO THE BOARD November 29, 1966 Mr. Harry W. Huning, Vice President, Federal Reserve Bank of Cleveland, Cleveland, Ohio. 44101 Dear Mr. Huning: In accordance with the requests contained in your letters of November 23, 1966, the Board approves the appointments of Gary N. Fields and Robert T. Glover, at present assistant examiners, as examiners for the Federal Reserve Bank of Cleveland, effective January 1, 1967. Very truly yours, (Signed) Elizabeth L. Carmichael Elizabeth L. Carmichael, Assistant Secretary.
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