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609
Minutes for October 10, 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 the Board of Governors of the Federal Reserve
System on Monday, October 10, 1966.
The Board met in the Board
Room at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman
Robertson, Vice Chairman
Shepardson
Mitchell
Brimmer
Mr.
Mr.
Mr.
Mr.
Mr.
Kenyon, Assistant Secretary
Bakke, Assistant Secretary
Hackley, General Counsel
O'Connell, Assistant General Counsel
Dahl, Assistant Director, Division of
Examinations
Miss Wolcott, Technical Assistant, Office of
the Secretary
Mr. Via, Senior Attorney, Legal Division
Mr. Egertson, Supervisory Review Examiner,
Division of Examinations
Discount rates.
The establishment without change by the
Federal Reserve Banks of Atlanta and Minneapolis on October 5, and by
the Federal Reserve Banks of New York, Philadelphia, Cleveland,
Richmond, Chicago, St. Louis, Kansas City, Dallas, and San Francisco
On October 6, 1966, 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.
Approved items.
The following items were approved unanimously
after consideration of background information that had been made available to the Board.
indicated.
Copies are attached under the respective numbers
10/10/66
-2Item No.
Letter to The Bank of Sussex County, Franklin, New
Jersey, approving the establishment of a branch in
Hampton Township and commenting on the bank's loan
Portfolio and capital position.
1
Letter to The Cleveland Trust Company, Cleveland,
Ohio, approving the establishment of a branch in
North Olmsted.
2
Letter to United California Bank, Los Angeles,
California, approving the establishment of a branch
in La Habra.
3
Letter to Imlay City State Bank, Imlay City,
Michigan, approving an investment in bank premises.
4
Letter to Marine Midland International Corporation,
New York, New York, granting consent to the purchase
of shares of Marine Midland Grace Nominees Limited,
London, England.
5
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 Towanda, Towanda, Pennsylvania,
and The First National Bank of New Albany, New Albany, Pennsylvania,
was approved unanimously for transmittal to the Comptroller.
The
conclusion read as follows:
While the proposed merger of The First National Bank
of Towanda and The First National Bank of New Albany would
eliminate a small amount of competition existing between
the two banks, the overall effect of the proposal on
competition is not considered adverse.
A modification of the conclusion having been agreed upon,
unanimous approval was given to the transmittal to the Comptroller of
V
.
tt
IL, 1
10/10/66
-3-
the Currency of a report on the competitive factors involved in
the
Proposed merger of The Campbell National Bank of La Rue, La Rue, Ohio,
into The National City Bank of Marion, Marion, Ohio.
In the form in
Which approved, the conclusion read as follows:
Consummation of the proposed merger would eliminate
a moderate amount of existing and potential competition
between The Campbell National Bank of La Rue and The
National City Bank of Marion in the area served by the
La Rue bank. The overall competitive effect of the
proposed transaction would be slightly adverse.
Application of Upper Main Line Bank (Items 6 and 7).
There
had been distributed drafts of an order
and statement reflecting the
Board's approval on September 27, 1966, of the application of Upper
Main Line Bank, Paoli, Pennsylvania, to merge with Farmers Bank of
Parkesburg, Parkesburg, Pennsylvania.
(The title of the resulting
bank would be Community Bank and Trust Company.)
The issuance of the order and statement was authorized.
Copies of the documents, as issued, are attached as Items 6 and 7.
Application of Brazil Trust Company (Items 8 and 9).
There
had been distributed drafts of an order and statement reflecting the
Board's approval on September 27, 1966, of the application of The
Brazil Trust Company, Brazil, Indiana, to merge with Farmers and
Merchants Bank,
Clay City, Indiana.
(The title of the resulting bank
Would be First Bank and Trust Company of Clay County, Indiana.)
The issuance of the order and statement was authorized.
°f the documents, as issued, are attached as Items
8 and 9.
Copies
$
10/10/66
-4-
Request of First Virginia Corporation (Item No. 10).
There
had been distributed a memorandum dated October 6, 1966, from the
Legal Division in connection with the request of The First Virginia
Corporation, Arlington, Virginia, for a determination that proposed
additions to the insurance activities of its nonbanking subsidiaries,
First Virginia Life Insurance Agency, Inc., and First General Insurance
Agency, Inc., were of the kind described in section 4(c)(8) (formerly
section 4(c)(6)) of the Bank Holding Company Act so as to make inapplicable the prohibitions of section 4 of the Act with respect to the
retention of shares in nonbanking companies.
Since the Act requires
that such determinations be made on the basis of the record made at a
hearing,
g tentative arrangements had been made for a hearing to be held
at 10:00 a.m. on October 28, 1966, at the Board's offices.
date was subsequently changed to November 1, 1966.)
(Note:
The
The Civil Service
Commission had selected Mr. Philip J. La Macchia as hearing examiner,
and Messrs. Cloth and Via of the Legal Division would serve as Board
counsel.
Attached to the memorandum was a draft of order for hearing.
Issuance of the order was approved unanimously, and Mr. La Macchia
l'as designated
as hearing examiner.
A copy of the order is attached as
Item No. 10.
The meeting then adjourned.
Secretary's Notes: On October 7, 1966,
Governor Shepardson approved on behalf
of the Board the following items:
;rr
10/10/66
-5-
Letter to the Superintendent of Banks of Guatemala (copy attached
as Item No. 11) furnishing certain information regarding the acquisition of shares of Banco de Comercio e Industria de Guatemala, S.A., by
Bank of California International Corporation (now Bank of California
International, New York, New York), a wholly-owned subsidiary of The
Bank of California, National Association, San Francisco, California.
Letter to Dr. Antonio R. Martinez, Bethesda, Maryland, confirming
arrangements for him to conduct a course in Conversational Spanish for
members of the Board's staff as an activity of the Board's Employee
Training and Development Program at a fee of $7 for each session
conducted.
Memorandum from the Office of the Controller dated October 7, 1966,
submitting proposals of the Division of Administrative Services to add
two full-time and five part-time positions to the cafeteria staff and
to convert one position of Supervisor to Assistant Manager.
Memoranda recommending the following actions relating to the Board's
staff:
App..21nLataL
Minnie G. Searcy as Records Clerk, Office of the Secretary, with
basic annual salary at the rate of $4,776, effective the date of entrance
Upon duty.
Salar
increase
Frank P. Herigstad, Assistant Federal Reserve Examiner, Division
°f Examinations, from $7,090 to $7,696 per annum, effective October 9,
1966.
-4°!Axatas.e
of sick leave
William D. Ward, General Mechanic-Operating Engineer, Division of
Ad
4d
ministrative Services, from September 20 through September 30, 1966.
Wilbert G. Cooper, Messenger, Division of Administrative Services,
for military service in the Armed Forces of the United States beginning
October
18, 1966.
10
0/66
Governor Shepardson today approved on
behalf of the Board a memorandum from
the Division of Bank Operations recommending the appointment of Robert G.
Adam as Technical Assistant in that
Division, with basic annual salary at
the rate of $9,851, effective the date
of entrance upon duty.
I
Item No. 1
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OrrICIAL CORRESPONDENCE
TO THE HOARD
October 10, 1966
Board of Directors,
The Bank of Sussex County,
Franklin, New Jersey.
Gentlemen:
System
The Board of Governors of the Federal Reserve
Franklin,
County,
Sussex
of
approves the establishment by The Bank
of
intersection
the
of
New Jersey, of a branch in the vicinity
County,
Sussex
Township,
Hampton
U.S. Route 206 and State Route 94,
year
one
within
New Jersey, provided the branch is established
from the date of this letter.
of 1966
The last examination of your bank in March
a less than
and
loans
indicated a fairly high volume of criticized
are
matters
these
trusts
satisfactory capital position. The Board
been
have
plans
that
understands
receiving your close attention and
$1,000,000.
by
funds
capital
formulated to increase your bank's
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
,The letter to the Reserve Bank stated that the
1°0ard also had approved a six-month extension
(If the period allowed to establish the branch;
attic' that if an extension should be requested,
he procedure prescribed in the Board's letter
°f November 9, 1962 (S-1846), should be followed.)
:379S
Item No. 2
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADORES/
orrtciAL
CORRICSPONOICNCIE
TO THE SOARO
October 10, 1966
Board of Directors,
The Cleveland Trust Company,
Cleveland, Ohio.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment by
The Cleveland Trust Company, Cleveland, Ohio,
of a branch at the southeast corner of the intersection of Lorain and Stearns Roads, North Olmsted,
Cuyahoga County, Ohio, 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.)
799
Item No. 3
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, O. C. 20551
ADDRESS orreciAL CORRESPONDENCE
TO THE BOARD
October 10, 1966
Board of Directors,
United California Bank,
Los Angeles, California.
Gentlemen:
The Board of Governors of the Federal
Reserve System approves the establishment by
United California Bank, Los Angeles, California,
of a branch in the vicinity of the intersection
of Imperial Highway and Beach Boulevard, La Habra,
California, provided the branch is established
within, two years 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.)
Item No. 4
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE
somao
October 10, 1966
Board of Directors,
Imlay City State Bank,
Imlay City, Michigan.
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 $16,000 by
,
Imlay City State Bank, Imlay City, Michigan
g
adjoinin
for the purpose of purchasing property
the bank's main office.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
38M
BOARD OF GOVERNORS
Item No. 5
10/10/66
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, O. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
44"•
1
•1.
4-•,••••
4.RES'
October 10, 1966.
Marine Midland
International Corporation,
120 Broadway,
New York, New York. 10015
Gentlemen:
In accordance with the request contained in your letter
of September 21, 1966, the Board of Governors grants its consent to
the purchase by your Corporation of 100 shares, par value El each, of
Marine Midland Grace Nominees Limited, London, England, at a cost of
a pproximately US$300.
It is understood that the nominee corporation is to be
organized and maintained solely for the purpose of acting as nominee
for the registration of securities of United Kingdom companies acquired
Or held by United States customers of Marine Midland Grace Trust
C°mpany of New York and other member banks of the Marine Midland Corporation; that the corporation's activities will be restricted to the
execution of documents and the transferring of securities in and out
°f the name of the nominee corporation on the instructions of member
Danks' customers for whom they are held; and, that all shares of the
nominee corporation are to be owned by your Corporation, except one
!hare to be registered in the name of Mr. E. Tinsley Ray, Vice Presiuent and Senior Trust Officer of Marine Midland Grace Trust Company
°f New York as British law requires at least two registered shareholders.
Very truly yours,
(Signed) Karl E. Bakke
Karl E. Bakke,
Assistant Secretary.
802
Item No. 6
10/10/66
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
la the Matter of the Application of
ljP ER MAIN LINE RANK
aPproval of merger with
armers Bank of Parkesburg
-
ORDER APPROVING MERGER OF BANKS
There has come before the Board of Governors, pursuant to the
Dank Merger.
Act, as amended (12 U.S.C. 1828(c), Public Law 89-356), an
aPPlication by Upper Hain Line Bank, Paoli, Pennsylvania, a State member
bow,
of the Federal Reserve System, for the Board's prior approval of the
'
Tileqer of that
bank and Farmers Bank of Parkesburg, Parkesburg, Pennsylvania,
4114er the charter of the former and title of Community Bank and Trust
e°mPanY. As an incident to the merger, the sole office of Farmers Bank
Of
arkesburg
would become a branch of the resulting bank.
Notice of
the pr
°posed merger, in form approved by the Board, has been published
PlitSUant to
said Act,
Upon consideration of all relevant material in the light of
the f
actors set forth in said Act, including reports furnished by the
-2-
C°zIptroller of the Currency, the Federal Deposit Insurance Corporation,
and the
Attorney General on the competitive factors involved in the
Proposed merger,
IT IS HEREBY ORDERED, for the reasons set forth in the
s Statement of this date, that said application be and hereby
18
aPProved, provided that said merger shall not be consummated
(4) before the thirtieth calendar day following the date of this Order
(b) later than three months after said date.
Dated at Washington, D. C., this 10th day of October, 1966.
By order of the Board of Governors.
Voting for this action: Chairman Martin, and
Governors Robertson, Shepardson, Mitchell,
Maisel, and Brimmer.
Absent and not voting:
Governor Daane.
(signed)
Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
(sPAL)
Item No. 7
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION BY UPPER MAIN LINE BANK
FOR APPROVAL OF MERGER WITH
FARMERS BANK OF PARKESBURG
STATEMENT
Upper Main Line Bank, Paoli, Pennsylvania ("Main Line Bank"),
ith total deposits of about $24 million, has applied, pursuant to the
1344k Merger Act, as amended (12 U.S.C. 1828(c), Public Law 89-356),
for the
Board's prior approval of the merger of that bank with Farmers
44k of Parkesburg, Parkesburg, Pennsylvania ("Farmers Bank"), which
has
1/
total deposits of about $4 million.
The banks would merge under
the charter of Main Line Bank, which is a member of the Federal Reserve
SYsteal, and the name of Main Line Bank would be changed to Community
Bailk and Trust Company. As an incident to the merger, the sole office
Of
Farmers Bank would become a branch of Main Line Bank, increasing
the humber of its offices to five.
Competition. - The head office of Main Line Bank is in Paoli,
4 co
zmunity with an estimated population of 5,000, which is located in
eilester County about 18 miles west of Philadelphia.
Igures are as of April 5, 1966.
The bank operates
2c'aa branch each in Berwyn and Exton, both within seven miles of its head
ffice, and has received authorization to establish an additional branch
f4It miles northeast of Paoli.
The sole office of Farmers Bank is in
Patkesburg, a community with an estimated population of 3,000, which is
imeated in the western portion of Chester County about 27 miles from
Paoli.
Main Line Bank and Farmers Bank are not competitors, and it
does
nclt appear that significant competition would develop between
thep,
If they did not merge. The nearest offices of the two banks are
21 mi,
'es apart, separated by several offices of other banks.
The merger would have no material effect on banking competition
in th
e area presently served by Main Line Bank.
The bank would continue
tor
aak as the second largest locally headquartered bank in the Paoli
rea
and to be faced with the
competition of numerous other banking
offie
ess including some branches of large Philadelphia-based banks.
"aversion of Farmers Bank into an office of Main Line Bank may
qitata
ate banking competition in the Parkesburg area since Farmers Bank
41111et
es with the Coatesville (six miles to the east) offices of two banks
that
have
deposits of $17 million and $171 million, respectively. Farmers
the
the
to
41so Competes with the sole office of a bank in Atglen (three miles to
14est) that has deposits of about $3 million.
It does not appear that
rrieqer would adversely affect the small bank in Atglen, which tends
dravi
the preponderance of its business from its own community and
-3-
(
Pesently competes to some extent with the branches (two miles west
44d four miles northwest of Atglen) of two much larger Lancasterhead
quartered banks.
The effect of the proposed merger on competition would not be
4IVerse.
Financial and managerial resources and future prospects. - The
banking factors with respect to 'lain Line Bank are satisfactory and
Inuld not be adversely affected by the acquisition of Farmers Bank.
The chief executive officer of Farmers Bank is well past the normal
etiroment age and, although there may be feasible alternative solutions,
the merger would assure the continuance of capable management for the
"ce now operated by Farmers Bank.
Convenience and needs of the communities. - The banking
el41 niance and needs of the communities presently served by 11ain Line
134r1k would not be appreciably affected by the merger. The principal
effee
t would be in Parkesburg, where a small unit bank would be replaced
by,
'
°ranch office of a larger and more progressive institution.
Summary and conclusion. - In the judgement of the Board, the
sed merger would benefit the banking convenience and needs of the
tierk
esburg area, and would not adversely affect banking competition.
Accordingly, the Board concludes that the application should
be
approved.
Oztober10, 1966.
Item No. 8
10/10/66
UNITED STATES OF AMERICA
BEFORE THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM
WASHINGTON, D. C.
la the Matter of the Application of
TI1E BRAZIL TRUST COMPANY
approval of merger with
a rners and Merchants Bank
'
ORDER APPROVING MERGER OF BANKS
There has come before the Board of Governors, pursuant to the
Bank
Merger Act, as amended (12 U.S.C. 1828(c), Public Law 89-356), an
application by The Brazil Trust Company, Brazil, Indiana, a State member
baw
of the Federal Reserve System, for the Board's prior approval of the
rile ger of that bank and Farmers and Merchants Bank, Clay City, Indiana,
"der the charter of the former and title of First Bank and Trust Company
of Clay
County, Indiana.
As an incident to the merger, the sole office
°f Parmers and Merchants Bank would become a branch of the resulting
b°11k.
Notice of the proposed merger, in form approved by the Board, has
been
Published pursuant to said Act.
Upon consideration of all relevant material in the light of
the
fetors set forth in said Act, including reports furnished by the
3808
Comptroller of the Currency, the Federal Deposit Insurance Corporation,
and the Attorney General on the competitive factors involved in the
Proposed
merger,
IT IS HEREBY ORDERED, for the reasons set forth in the
Boardis Statement of this date, that said application be and hereby
18
aPproved, provided that said merger shall not be consummated
(a) before the thirtieth calendar day following the date of this Order
(b) later than three months after said date.
Dated at Washington, D. C., this 10th day of October, 1966.
By order of the Board of Governors.
Voting for this action: Chairman Martin, and
Governors Robertson, Shepardson, Mitchell,
Maisel, and Brimmer.
Absent and not voting:
Governor Daane.
(signed)
Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
(3BAL)
3809
Item No. 9
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
APPLICATION OF THE BRAZIL TRUST COMPANY
FOR APPROVAL OF MERGER WITH
FARMERS AND MERCHANTS BANK
STATEMENT
The Brazil Trust Company, Brazil, Indiana ("Brazil Bank"),
U. total
deposits of about $12 million, has applied, pursuant to
the Bank Merger Act, as amended (12 U.S.C. 1828(c), Public Law 89-356),
for
the Board's prior approval of the merger of that bank with Farmers
and Merchants Bank, Clay City, Indiana ("Clay City Bank"), which has
1/
The banks would merge under the
total deposits of about $5 million.—
charter of Brazil Bank, which is a member of the Federal Reserve
SYatem, and the name of Brazil Bank would be changed to First Bank
44d Trust Company of Clay County, Indiana.
ge
As an incident to the
the sole office of Clay City Bank would become a branch of
trazil
Bank, increasing the number of its offices to three.
Competition. - The offices of both banks are in Clay County.
The head office and drive-in branch of Brazil Bank are in Brazil, a
itY with a 1960 population of about 8,900, which is the county
"
'4111T
4at.
Brazil is about 70 miles southwest of Indianapolis and
P ig
res are as of June 30, 1966.
3810
-2-
aPProximately 16 miles northeast of Terre Haute.
The sole office of
n of
Clay City Bank is in Clay City, a community with a 1960 populatio
about 950.
apart, and
The offices of the two banks are about 13 miles
there are offices of other banks in the intervening area.
Brazil
8ank and Clay City Bank do not compete with one another to any
Irleaningful extent.
Shareholders who own about 34 per cent of the
Clay
Stock of Brazil Bank also own about 37 per cent of the stock of
'would
There is no evidence to indicate that the banks
CitY Bank,
ownership were
be"me significant competitors even if the common
terminated.
County
The relevant market for the resulting bank is Clay
and portions of Vigo, Parke, and Owen Counties.
In this area, 12 banks
°Perate 24 offices which hold total deposits of over $200 million.
cent of
l'0110uing the merger, Brazil Bank would hold less than 10 per
t°tai area deposits.
Brazil Bank is faced with competition from the
Brazil
larger Terre Haute banks, in part because numerous residents of
c°rtmute to work in Terre Haute.
In addition, the largest bank in
Terre Haute recently received approval to establish a branch eight
railes from Brazil.
other
The principal competitor of Brazil Bank, and the only
of
bank in Brazil, is Riddell National Bank, which has total deposits
ab(lut $14 million.
The nearest banking office to Clay City Bank is
lOcated approximately seven miles southeast of Clay City, and is a
3 11
-3-
branch of a bank which has total deposits of about $8 million.
It
(Ices not appear that any banking offices would be adversely affected
bY the merger.
The effect of the proposed merger on competition would not
be adverse.
Financial and managerial resources and future prospects. The banking factors with respect to each of the banks proposing to
rnerge are satisfactory, as they would be with respect to the resulting
bank.
Convenience and needs of the communities. - The residents
f Brazil would benefit to some extent from the increased lending
limit of the resulting bank, and the bank's increased resources would
ecntribute to
its ability to offer other improved services.
However,
the rnajor effect of the merger on banking convenience and needs would
be i
n Clay City where the office of Brazil Bank would provide a more
e'3111Plere range of banking services than is now conveniently available
to the residents of that community.
Summary and conclusion. - In the judgment of the Board, the
110Pbsed merger would not adversely affect banking competition, and
the resulting bank would be able to offer improved services which, in
Particular, would benefit the banking needs and convenience of the Clay
CirY
community.
Accordingly, the Board concludes that the application should
be a
PProved.
October 10, 1966.
r)C,
t,c7
FEDERAL RESERVE SYSTEM
Item No. 10
10/10/66
THE FIRST VIRGINIA CORPORATION
Notice of Request and Order for Hearing
Pursuant to Section 4(c)(8) of the
Bank Holding Company Act of 1956
to the
Notice is hereby given that request has been made
Board of Governors of the Federal Reserve System, pursuant to
section 4(c)(8) of the Bank Holding Company Act of 1956, as amended
by
222.5(b) of
Public Law 89-485 (12 U.S.C. 1843(c)(8)), and section
the Board's Regulation Y (12 CFR 222.5(b)), by The First Virginia
a
Corporation, Arlington, Virginia, a bank holding company, for
determination that the proposed additions to the ineiurance activities
°I
1t8
ce Agency,
nonbanking subsidiaries, First Virginia Life Insuran
Inc. and First General Insurance Agency, Inc., are of the kind
described in the aforementioned sections of the Act and the Regulation
of the
8° as to make it unnecessary for the prohibitions of section 4
ations
ket with respect to the ownership of shares in nonbanking organiz
to apply in order to carry out the purposes of the Act.
s that any
Inasmuch as section 4(c)(8) of the Act require
determination pursuant thereto be made by the Board after due notice
,
and hearing and on the basis of the record made at such hearing
4(c)(8) of
It Is Hereby Ordered, That pursuant to section
the Banking Holding Company Act and in accordance with sections 222.5(b)
and 222
222.5(b), 222.7(a)),
.7(a) of the Board's Regulation Y (12 CFR
with respect
Ptc)raulgated under the Bank Holding Company Act, a hearing
;8 1_,1
to this matter be held commencing on November 1, 1966, at 10 a.m.,
at the offices of the Board of Governors of the Federal Reserve System,
by the Civil
Washington, D. C., before a hearing examiner selected
of the United
Service Commission, pursuant to section 3344 of Title 5
Rules of
States Code, such hearing to be conducted according to the
the Federal
Practice for Formal Hearings of the Board of Governors of
Reserve System (12 CFR Part 263).
The right is reserved to the Board
or such hearing examiner to designate any other date or place for such
necessary
hearing or any part thereof which may be determined to be
or appropriate for the convenience of the parties.
The Board's Rules
Of Practice for Formal Hearings provide, in part, that "All such
by parties and
hearings shall be private and shall be attended only
Board,
their representatives or counsel, representatives of the
interest in the prowitnesses, and other persons having an official
by a party or
ceedings: Provided, however, That, on written request
representatives of the Board, or on the Board's own motion, the Board,
or may
unless prohibited by law, may permit other persons to attend
”
order the hearing to be public.
proceeding
Any person desiring to give testimony in this
through the
should file with the Secretary of the Board, directly or
a, on or before
Federal Reserve Bank of Richmond, Richmond, Virgini
nt of the
October 28v 1966, a written request containing a stateme
and a summary
nature of the petitioner's interest in the proceeding,
of the matters concerning which said petitioner wishes to give
-3_
testimony.
3814
Such request will be presented to the designated hearing
examiner for his determination.
Persons submitting timely request
will be notified of the hearing examiner's decision.
, 1966.
Dated at Washington, D. C., this 10th day of October
By order of the Board of Governors.
(Signed) Kenneth A. Kenyon
Kenneth A. Kenyon,
Assistant Secretary.
(SEAL)
Item No. 11
10/10/66
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
October 7, 1966.
AIR MAIL
Lie. Eduardo Mosquera E.,
Superintendente de Bancos,
Superintendencia de Bancos,
Guatemala, Guatemala, C. A.
Dear Mr. MOsquera:
This will acknowledge your letter of August 25, 1966, asking
to be supplied on a confidential basis with certain information regarding
the acquisition of shares of Banco de Comercio e Industria de Guatemala,
S.A., for the amount of 250,000 quetzales by The Bank of California
°riganization in October 1965.
According to information available to the Board of Governors
the shares that you mention were acquired by Bank of California
International Corporation, San Francisco, California, a wholly-owned
subsidiary of The Bank of California National Association, San Francisco.
The Bank of California International Corporation (Whose name
has subsequently been changed to Bank of California International and
it8 Head Office removed to New York, New York) is a corporation organized
and,
operating pursuant to the provisions of Section 25(a) of the Federal
Reserve Act and, as such, acquisition of shares of the Guatemalan bank
Would not be subject to approval by any authority of the State of
c
balifornia. In view of the provisions of Regulation K, issued by the
ard of Governors under the authority of Section 25(a), the shares of
nco de Comercio e Industria de Guatemala, S.A. were acquired under
the
general consent provisions of Section 211.8(a) of the Regulation
and no
specific approval by the Board of Governors was required.
r!
for
It is hoped that the foregoing information will be sufficient
Your purposes.
Very truly yours,
(Signed) Merritt Sherman
Merritt Sherman,
Secretary.
@FedFRASER