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Minutes for September 12, 1963
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 proposed to place in the record of policy actions
required to be kept under the provisions of section 10 of the
Federal Reserve Act an entry covering the item in this set of
minutes commencing on the page and dealing with the subject
referred to below:
Page 7
Amendments to Regulation Y,
Bank Holding Companies.
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. Mills
Gov. Robertson
Gov. Balderston
Gov. Shepardson
Gov. King
Gov. Mitchell
3129
Minutes of the Board of Governors of the Federal Reserve
System on Thursday, September 12, 1963.
The Board met in the Board
Room at 10:00 a.m.
PRESENT:
Mr.
Mr.
Mr.
Mr.
Mr.
Martin, Chairman 1/
Balderston, Vice Chairman
Robertson
King
Mitchell
Mr. Sherman, Secretary
Mr. Kenyon, Assistant Secretary
Miss Carmichael, Assistant Secretary
Mr. Fauver, Assistant to the Board
Mr. Hackley, General Counsel
Mr. Solomon, Director, Division of Examinations
Mr. O'Connell, Assistant General Counsel
Mr. Koch, Associate Director, Division of
Research and Statistics
Mr. Holland, Adviser, Division of
Research and Statistics
Mr. Conkling, Assistant Director, Division
of Bank Operations
Mr. Goodman, Assistant Director, Division
of Examinations
Mr. Thompson, Assistant Director, Division
of Examinations
Mr. Langham, Assistant Director, Division of
Data Processing
Mr. Bakke, Senior Attorney, Legal Division
Mr. Doyle, Attorney, Legal Division
Mr. Eckert, Chief, Banking Section, Division
of Research and Statistics
Mr. Poundstone, Review Examiner, Division of
Examinations
Letters from Banking and Currency Committee (Item No. 1).
There
had been distributed a memorandum from Mr. Koch dated September 6, 1963,
pertaining
transmitting a draft set of answers to a number of questions
1/ Withdrew from meeting at point indicated in minutes.
3-1;3
-2-
9/12/63
to the
to monetary policy and related fields that had been sent
21, 1963,
individual members of the Board in letters dated August
Committee.
from Chairman Patman of the House Banking and Currency
President.
Similar questions had been sent to each Reserve Bank
e Bank
Chairman Martin noted that a joint reply from the Reserv
be desirable
Presidents had been completed, and he believed it would
Committee as promptly
if the Board's response could be submitted to the
as possible.
such
He suggested that it would seem appropriate to make
members of the Board
changes in the draft set of answers as all of the
might agree upon.
Then, if individual members wished to file demurrers
forth following
with respect to any of the questions, those could be set
the respective answers.
There was general agreement with the procedure
suggested by the Chairman.
received from
Mr. Koch reported that a memorandum had been
the proposed answers.
Governor Mills suggesting a number of changes in
s could be taken account
Mr. Koch said he felt that most of these change
of without difficulty in the replies.
He mentioned especially, however,
response to Question VIII,
Governor Mills' comments regarding the proposed
may have existed
relating to specific occasions when differences of views
between the Board of Governors and the Treasury.
In the draft of reply,
emphasis and judgment
reference was made to the fact that differences in
effects of proposed
would frequently emerge as to the magnitude of the
3131
-3-
9/12/63
actions both within each organization as well as between them, but
no more so than might be expected among any group of technicians and
policy makers.
Governor Mills had expressed the view that the tone
of the answer should not imply that there were not sometimes pronounced differences of views on policy matters among the members
of the Board.
Following discussion of this point, it was suggested that the
reference to differences among members of the Board be deleted since
the Committee's question had not made inquiry on that score.
During discussion of the proposed answers, Governor Robertson
said he favored a joint reply, but he believed it should be broad
enough to accommodate the views of all Board members to the extent
possible.
Having this in mind, he suggested a number of changes in
the answers that would satisfy him and that he thought might be acceptable to the other members of the Board.
At the conclusion of the discussion, during which a number of
additional changes in wording were suggested, it was agreed that the
staff would redraft several of the answers to reflect the views that
had been expressed and that a joint response would be sent to the
Committee after the revisions had been reviewed by members of the
Board.
It was understood that the joint reply would include any
demurring statements that individual Board members might wish to
submit.
3132
-4-
9/12/63
Pursuant to this action a joint response, with no demurring
statements, was sent to the House Banking and Currency Committee later
in the day.
A copy of the transmittal letter is attached as Item No. 1;
a copy of the joint reply to the questions has been placed in the Board's
files.
During the foregoing discussion Chairman Martin withdrew from
the meeting.
Distributed items.
The following items, copies of which are
attached to these minutes under the respective item numbers indicated,
were approved unanimously:
Item No.
Letter to Bankers International Financing Company,
Inc., New York, New York, terminating the general
consent for that company to purchase and hold stock
in generally designated types of organizations in
view of the adoption of a revised Regulation K.
(With similar letters to Chase International Investment Corporation, Chemical International Finance,
Ltd., and Morgan Guaranty International Finance
Corporation, all of New York, New York; and Philadelphia International Investment Corporation,
First Pennsylvania Overseas Finance Corporation,
and The Company for Investing Abroad, all of
Philadelphia, Pennsylvania.)
2
Letter to Chemical International Finance, Ltd., New
York, New York, granting consent to the purchase of
shares of Industrialization Fund of Finland, Helsinki,
Finland.
3
Letter to Manufacturers Hanover International Finance
Corporation, New York, New York, granting consent to the
purchase of shares of Industrialization Fund of Finland,
Helsinki, Finland.
14
3133
9/12/63
-5Item No.
Letter to Morgan Guaranty International Finance
Corporation, New York, New York, granting consent
to the purchase of shares of The Pakistan Industrial
Credit and Investment Corporation Limited, Karachi,
Pakistan.
5
Letter to Chemical International Finance, Ltd., New
York, New York, granting consent to the purchase of
shares of C. A. Venezolana de Desarrollo (Sociedad
Financiera), Caracas, Venezuela.
6
Letter to Manufacturers Hanover International Finance
Corporation, New York, New York, granting consent to
the purchase of shares of C. A. Venezolana de Desarrollo
(Sociedad Financiera), Caracas, Venezuela.
7
Messrs. Koch, Doyle, and Pound-stone then withdrew from the meeting.
Bank holding company application forms.
On July 23, 1962, the
Board tentatively adopted revisions of (1) Form F.R. Y-1, Application
for Prior Approval of Action to Become a Bank Holding Company Pursuant
to Section 3(a)(1) of the Bank Holding Company Act of 1956, and (2)
Form F.R. Y-2, Application for Prior Approval of Acquisition of Bank
Shares Pursuant to Section 3(a)(2) of the Bank Holding Company Act of
1956.
At that time it was understood that notice of their prospective
final adoption would be published in the Federal Register and that copies would be sent to the Federal Reserve Banks and others for comments.
There had been distributed a memorandum from the Division of
Examinations dated July
8, 1963, recommending approval of revised drafts
of the two forms that had been prepared after considering comments and
suggestions received with respect to the drafts published pursuant to
the July 23, 1962, action.
3134
9/12/63
-6A memorandum from the Legal Division dated August 22, 1963,
commenting on certain changes in the proposed forms, recommending
certain further changes therein, and recommending several amendments
to Regulation Y, Bank Holding Companies, had also been distributed.
It
was indicated that the Division of Examinations concurred in the suggestions of the Legal Division with respect to the forms.
Following comments by Mr. Thompson and Mr. Bakke on points
regarding the forms covered in the two memoranda, Governor Mitchell
observed that while he had not had an opportunity to discuss with the
staff the proposed revisions in the forms, he had an impression that
perhaps some vital information that was essential for the understanding
of an application was not being asked for and some information was being
requested for which the Board had no significant need.
Following further comments by Governor Mitchell regarding
Specific types of information that he believed should be requested in
the forms, Governor Balderston raised a question as to the feeling of
the staff with respect to a shorter form that could be supplemented if
additional information was needed.
In this connection, Mr. Solomon
noted that there was a general instruction to the effect that in special
situations the form could be abbreviated.
It was his feeling, however,
that the emphasis should be on the complete form rather than on an
te
abbreviated form; the filing of an abbreviated form might necessita
going back to the applicant later for additional information.
Along
31 3ri
9/12/63
-7-
this line, Mr. O'Connell pointed out that in a case of a simple application there had been no substantial problem in the past in using the
longer form and merely noting that certain parts were not applicable.
After a general discussion, it was suggested that further
consideration of the forms be held over until Governor Mitchell had
had an opportunity to discuss with the staff the questions he had
raised.
There was agreement with this suggestion.
Amendments to Regulation Y (Item No.
8). In the August 22, 1963,
memorandum from the Legal Division that had been distributed, several
amendments to Regulation Y, Bank Holding Companies, had been recommended.
Attached to the memorandum was a draft of notice for publication in the
Federal Register in the event of Board approval of the amendments.
Mr. Bakke referred to the proposed amendments and raised a
question as to whether the Board would wish to take action on them at
this time, with the understanding that the effective date would not be
determined until the bank holding company forms (F.R. Y-1 and F.R. Y-2)
had been approved.
Mr. Bakke then described the proposed amendments to sections 222.4,
222.5, and 222.7 of Regulation Y, noting that their purpose was (1) to
allow the number of copies of applications that must be filed in seeking
the Board's approval of certain transactions referred to in section 3(a)
of the Bank Holding Company Act of 1956 to be controlled by requirements
3136
-8-
9/12/63
set forth in the form of application itself, (2) to eliminate the
requirement that such applications must be filed not less than 60
days prior to the proposed consummation of the transaction and related
references, and (3) to clarify and expand the regulation in certain
respects regarding the Board's procedures applicable to such applications and applications under section 4(c)(6) of the Bank Holding
Company Act.
He stated that the Legal Division would not propose
publishing in the Federal Register a preliminary statement of proposed rule making with respect to the amendments since they were
noncontroversial in nature.
Accordingly, there would be no need to
ask for comments under the Administrative Procedure Act.
Thereupon, the amendments to Regulation Y were approved
unanimously in the form set forth in the notice prepared for publication in the Federal Register, a copy of which is attached as Item No. 8.
It was understood that the effective date would be determined following
Board approval of forms F.R. Y-1 and F.R. Y-2, that the amendments would
then be published in both the Federal Register and the Federal Reserve
Bulletin, and that a covering press release would be issued.
Messrs. O'Connell and Bakke then withdrew from the meeting.
Call report form (Item No. 9).
Mr. Conkling reported that,
Pursuant to the understanding at the Board meeting on August 27, 1963,
the staff was continuing to work with representatives of the Office of
the Comptroller of the Currency and the Federal Deposit Insurance Corporation in an effort to formulate a uniform report of condition for the
, t'3
9/12/63
-9-
December call.
A meeting was scheduled for the week of September 23,
and Mr. Conkling indicated that he would appreciate having any suggestions that members of the Board or staff might have prior to that time.
Mr. Holland then referred to the Board's consideration on
September
9, 1963, of a proposed letter to the Presidents of all Federal
Reserve Banks transmitting forms and instructions for use of State
member banks and their affiliates in submitting reports as of the fall
call date this year.
That letter would state that the national bank
report of condition was being revised and that the revisions, decided
Upon unilaterally, would makP it practically impossible to tabulate
data for Pll member banks.
In the circumstances, the letter would
Indicate that State member banks were being relieved of the burden of
completing the detailed schedule on the back of the form and they should
be informed that for the purpose of this call they would need to complete
only the face side of the report and several related items on the reverse
Side that were required for deposit insurance assessment purposes.
The
Reserve Banks would be advised by the letter that they need not tabulate
reports for this call and that editing could be limited to such editing
as might be necessary to insure substantial accuracy of the publisher's
copy and the items required for assessment purposes.
Mr.
Holland noted that Board action on the proposed letter had
been deferred in view of questions that had been raised by the Division
3138
-10-
9/12/63
of Research and Statistics, particularly as to whether some tabulation
might be made of the data for State member banks and insured nonmember
banks, assuming that the Federal Deposit Insurance Corporation would
continue collecting the information previously called for on the back
of the old uniform condition report form.
Since that time, Mr. Holland
noted, it had been learned that the Corporation was not planning to
collect these data.
It was the view of the Division of Research and
Statistics that collection and tabulation of the data for State member
banks only would not serve a useful purpose.
Accordingly, there
appeared to be no reason for not sending the proposed letter to the
Reserve Banks.
With reference to Mr. Conkling's request for suggestions regarding possible changes in the end-of-year call report form, Governor
Robertson expressed the view that a point had been reached at which the
Board should not be thinking in terms of conceding certain points but
rather along the lines of developing a form that would furnish needed
information.
He believed that the Board's staff should meet with
representatives of the other Federal bank supervisory agencies, as
scheduled, but with a definite idea as to the type of information that
was needed rather than with the thought of giving here and giving there
on the form.
Governor Mitchell said it would be his suggestion to instruct
the staff to bring before the Board a program for providing the needed
3-139
-11-
9/12/63
banking statistics independent of any action the Comptroller might take.
The time had come for the Board to have a definite program of its own,
which he believed should include the Board's own call report once each
year, as well as a sample of banks from which the Board could obtain
selected data to build an all -bank statement.
Negotiations with the
other agencies could be continued, but he considered it important for
the staff to come in soon with a definite independent program for the
Board's consideration.
At the end of the discussion, it was understood that the staff
would proceed along the lines suggested by the comments that had been
made.
The letter to the Federal Reserve Banks regarding procedures
for the fall call report was then approved unanimously.
A copy is
attached as Item No. 9.
The meeting then adjourned.
Secretary's Notes: Acting in the absence of
Governor Shepardson, Governor Robertson today
approved on behalf of the Board the following items:
10)
Letter to the Federal Reserve Bank of Cleveland (attached Item No.
examiner.
approving the appointment of Anthony John DiMare as assistant
Memoranda from appropriate individuals concerned recommending the
following actions relating to the Board's staff:
APpointments
Sally L. Hayes as Clerk-Stenographer, Division of Personnel Administration, with basic annual salary at the rate of $4,110, effective the date
Of entrance upon duty.
3140
-12-
9/12/63
Appointments (continued)
Christine Mason as Clerk-Stenographer, Division of Personnel
Administration, with basic annual salary at the rate of $4,110,
effective the date of entrance upon duty.
Gretchen Donna Walrath as Clerk-Typist, Division of Personnel
Administration, with basic annual salary at the rate of $3,820,
effective the date of entrance upon duty.
Catherine M. Zambri as Clerk-Stenographer, Division of Personnel
Administration, with basic annual salary at the rate of $4,110,
effective the date of entrance upon duty.
Fred L. Robinson as Messenger, Division of Administrative Services,
with basic annual salary at the rate of $3,245, effective the date of
entrance upon duty.
Salary increases
Theodore L. Jones, from $3,560 to $3,770 per annum, with a change
in title from Messenger to Mail Clerk-Messenger, Division of Administrative
Services, effective September 15, 1963.
James H. Newton, from $4,295 to $4,505 per annum, with a change
in title from Messenger to Lead Messenger, Division of Administrative
Services, effective September 15, 1963.
Military leave
Charles E. Evans, Operator, Duplicating Devices, Division of
Administrative Services, for a two-year tour of military duty
beginning September 25, 1963.
Acting in the absence of Governor Shepardson, Governor Robertson today noted on
behalf of the Board a memorandum advising
that application for retirement had been
filed by Benjamin D. Berry, Foreman-Operator,
Division of Administrative Services, effective
at the close of business September 30, 1963.
7
11
kltc,
(TT
retav
Item No. 1
9/12/63
BOARD OF GOVERNORS
OF THE
i
FEDERAL RESERVE SYSTEM
:"T':?
11
.4
:
..1i,...
4..
._4`4'..
.
• 4ALFtest•*
WAS
• ..e
OFFICE OF THE CHAIRMAN
September 12, 1963.
The Honorable Wright Patman,
Chairman,
Committee on Banking and Currency,
House of Representatives,
Washington 20515, D. C.
Dear Mr. Chairman:
On August 21, 1963, you addressed letters to each
of the members of the Board enclosing questions that had been
prepared by Drs. Brunner and Meltzer relating to a study of
several aspects of the effectiveness of monetary policy.
The members of the Board have considered these
s
question and have indicated their substantial agreement
on the answers they would supply. Accordingly, the members of the Board join in submitting the enclosed set of
answers to the eight questions you presented.
Sincerely yours,
(Signed) Wm. McC. Martin, Jr.
Wm. McC. Martin, Jr.
Enclosures
3142
Item No. 2
9/12/63
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 12, 1963.
Bankers International Financing Company, Inc.,
16 Wall Street,
New York 15, New York.
Gentlemen:
Reference is made to the Board's letter of June 21,
1963, extending, without specific date until further notice,
the termination date contained in the Board's letter of May 3,
1962, as extended, granting general consent to Bankers International Financing Company, Inc., to purchase and hold stock
in generally designated types of corporations, subject to the
conditions therein contained.
In view of the adoption of a revised Regulation K,
effective September 1, 1963, which contains in Section 211.8(a)
a General Consent for investment in shares of other corporations
in certain situations, the general consent contained in the
Board's letter of May 3, 1962, is hereby terminated.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
3143
Item No.
BOARD OF GOVERNORS
3
9/12/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFfICIAL CORRESPONDENCE
TO THE BOARD
September 12, 1963
Chemical International Finance, Ltd.,
20 Pine Street,
New York 15, New York.
Gentlemen:
In accordance with the request contained in your
letter of August 1, 1963, transmitted through the Federal
Reserve Bank of New York, and on the basis of information
furnished, the Board of Governors grants consent for Chemical
International Finance, Ltd. to purchase and hold 160 shares
of Series A stock, par value Finnish Markkas 1,000 each, of
Industrialization Fund (Teollistamisrahasto 0y) of Finland,
Helsinki, Finland, at a cost of approximately US$50,000 equivalent, provided such stock is acquired within one year from
the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
3144
Item No.
BOARD OF GOVERNORS
4
9/12/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 12, 1963.
Manufacturers Hanover International
Finance Corporation,
44 Wall Street,
New York 15, New York.
Gentlemen:
In accordance with the request contained in
your letter of August 21, 1963, transmitted through the
Federal Reserve Bank of New York, and on the basis of
information furnished, the Board of Governors grants
consent for Manufacturers Hanover International Finance
Corporation to purchase and hold Series A shares, par
value Finnish Markkas 1,000 each, of Industrialization
Fund (Teollistamisrahasto Oy) of Finland, Helsinki,
Finland, at a cost of approximately US$100,000 (equivalent), provided such stock is acquired within one year
from the date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
3145
Item No.
5
9/12/63
BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25. D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 12, 1963.
Morgan Guaranty International Finance Corporation,
23 Wall Street,
New York 15, New York.
Gentlemen:
letter
In accordance with the request contained in your
Bank
Reserve
Federal
the
of August 15, 1963, transmitted through
Board
the
ed,
furnish
tion
of New York, and on the basis of informa
tional Finance
of Governors grants consent for Morgan Guaranty Interna
par value
shares,
y
ordinar
Corporation to purchase and hold 40,000
ent
Investm
and
Credit
ial
Rupees 10 each, of The Pakistan Industr
mately
approxi
of
cost
a
at
n,
Corporation Limited, Karachi, Pakista
one year from the
US$94,000, provided such stock is acquired within
date of this letter.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
314
BOARD OF GOVERNORS
Item No.
6
9/12/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 12, 1963.
Chemical International Finance, Ltd.,
20 Fine Street,
New York 15, New York,
Gentlemen:
In accordance with the request and on the basis
of information furnished in your letter of August 6, 1963,
transmitted through the Federal Reserve Bank of New York,
the Board of Governors grants its consent for Chemical
International Finance, Ltd., to purchase and hold 5,000
shares, par value Bolivares 100 each, of C. A. Venezolana
de Desarrollo (Sociedad Financiera), Caracas, Venezuela,
at a cost of approximately Bolivares 500,000 (US$108,000
equivalent), provided such stock is acquired within one
year from the date of this letter.
Very truly yours,
(Signed) Elizabeth.L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
f
Item No.
BOARD OF GOVERNORS
7
9/12/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON 25, D. C.
ADDRESS OFFICIAL. CORRESPONDENCE
TO THE HOARD
September 12, 1963.
Manufacturers Hanover International
Finance Corporation,
44 Wall Street,
New York 15, New York.
Gentlemen:
In accordance with the request and on the basis of
information furnished in your application of August 12, 1963,
transmitted through the Federal Reserve Bank of New York, the
Board of Governors grants its consent for Manufacturers Hanover International Finance Corporation ("MHIFC") to purchase
and hold 15,000 shares, par value Bolivares 100 each, of C. A.
Venezolana de Desarrollo (Sociedad Financiera) ("CAVD"),
Caracas, Venezuela, at a cost of approximately Bolivares
1,500,000(US$330,000 equivalent), provided such stock is
acquired within one year from the date of this letter.
The Board also approves the purchase and holding of
shares of CAVD within the terms of the above consent in excess
of 10 per cent of MHIFC's capital and surplus.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
314J-i
Item No. 8
9/12/63
TITLE 12 - BANK3 AND BANKING
Chapter II - Federal Reserve System
al Reserve System
Subchapter A - Board of Governors of the Feder
. [ Rog. Y ]
PART 222 - BARK HOLDING COMPANIES
Applications
1. Effective
paragraphs (d), (e)(1),
and § 222.7 are
(f) and (g) of § 222.4, paragraph (b) of § 222.5,
amended to read as follows:
§ 222.4 - Acquisition of Bank Shares or Assets
n for approval
(d) Submission of applications. - An applicatio
(a)
by the Board of any transaction requiring such approval under paragraph
Of this section shall be filed with the Federal Reserve Bank,3
together
application,
With the number of copies specified in the appropriate form of
Obtainable from the Federal Reserve Bank.
A separate application shall
s of which
be filed with respect to each bank the voting shares or asset
king
are sought to be acquired by an existing bank holding company or norban
subsidiary thereof.
al Reserve Bank
(e) Procedure on applications. - (1) A Feder
receiving an application under this section will retain one copy thereof
and will forward all other copies to the Board.
3
If either the applicant
means the Federal
The term "Federal Reserve Bank," as used herein,
applicant has
Reserve Bank of the Federal Reserve District in which the
its principal office.
3149
Board of Governors
ired
ts of which are sought to be acqu
or the bank the voting shares or asse
the Board will transidt a copy of
Is a national bank or a District Bank,
Currency, and will advise the
the application to the Comptroller of the
of
ate State supervisory authority
Department of Justice and the appropri
the receipt of such application,
bank
If either the applicant or the
to be acquired is a
the voting shares of which are sought
State bank,
ory
application to the bank supervis
the Board will transmit a copy of the
bank is located, and will advise
authority of the State in which such
troller of the Currency of the
the Department of Justice and the Comp
receipt of such application.
******
tions on applications. - (1) In
(f) Hearings or oral presenta
written advice of disapproval of
any case in which the Board receives
of the Currency (if a natiulal
the application from the Comptroller
e supervisory authority (if a
or District bank is involved) or the Stat
may be, within 30 days from the
State bank is involved), as the case
ion 3(b)
by the appropriate authority, sect
date of receipt of the application
ing be held.
Of the act requires that a formal hear
In such cases, the
writing, directing the applicant's
Board will so notify the applicant in
e days
said section 3(b). Within thre
attention to the provisions of the
the
such notice to the applicant,
after the date of the sending of
the
applicant and the Comptroller of
Board will notify in writing the
case
supervisory authority, as the
Currency or the appropriate State
31_50
Board of Governors
encement of the
may be, of the date fixed by the Board for the comm
ing will be held.
hearing and of the place and time at which such hear
ten days nor more than
Any such hearing will be commenced not less than
the applicant notice
thirty days after the date on which the Board sent
or the appropriate
of the disapproval of the Comptroller of the Currency
State superVisory authority.
which a hearing must
(2) Apart from the circumstances under
Board may, in a
be held on an application under this section, the
it determines that such a
particular case, order a formal hearing if
s of the parties or the
Proceeding would be desirable in the interest
public.
ing is not ordered by
(3) In any case in which a formal hear
icant and other properly
the Board, an opportunity may be offered the appl
agencies)to present views orally
interested persons (including Government
tative.
before the Board or its designated represen
(4)
hearings or oral
Unless otherwise ordered by the Board,
ications under this section
Presentations ordered by the Board on appl
Will be public.
(g)
(See also section 262.2(f), Part
262 of this chapter (Rules of
Procedure).]
in which a hearing
Action on applications. - In any case
(f)(2) of this section,
is held in accordance with paragraph M(i) or
hearing, will by order grant or
the Board, after the conclusion of such
record made at such hearing.
deny the application on the basis of the
3151
Board of Governors
-4-
(2) In any case in which an oral presentation is held in
accordance with paragraph (f)(3) of this section, the Board, after
the conclusion of such procending, will by order grant or deny the
record
application on the basis of the record before it, including the
made at the oral presentation.
or deny
(3) In all other cases, the Board will by order grant
the application after receipt of advice that the Comptroller of the
may
Currency or the appropriate State supervisory authority, as the case
received,
be, does not disapprove the application, or, if no such advice is
copy
after the expiration of thirty days from the date of receipt of the
of the application by the Comptroller of the Currency or such State
authority.
[Sae also section 262.2(f), Part
262 of this chapter (Rules of
Procedure).]
222.5. - Interest in Nonbanking Organizations
(b) Shares of financial, fiduciary, or insurance companies.
all the
Any bank holding company which is of the opinion that a company
activities of which are of a financial, fiduciary, or insurance nature
ie so closely related to the business of banking or of managing or
controlling banks, as conducted by such bank holding company or its
banking subsidiaries, as to be a proper incident thereto and as to
make it unnecessawfor the prohibitions of section
4
of the act to apply
in order to carry out the purposes of the act, may request the Board for
Board of Governors
act.
such a determination pursunat to section 4(c)(6) of the
Any such
al Reserve Bank.
request shall be filed in duplicate with the Feder
After
bank holding
receipt of any such request, the Board will notify the
ng on the requested
company of the place and time fixed for a heari
and, after the
determination, as required by the said section 4(c)(6);
record made at the
conclusion of such hearing and on the basis of the
make
hearing, the Board will by order make or decline to
determination.
the requested
on
Unless otherwise ordered by the Board, hearings held
requests under this paragraph will not be public.
§ 222.7 - Hearings and Oral Presentations
referred to
(a) When ordered. - In addition to the proceedings
ntation may be
in § 222.4(f) and § 222.5(b), a hearing or oral prese
to any application
ordered by the Board in its discretion with respect
or upon the
or request under this part, either upon its own motion
such hearing to
request of any party in interest, if the Board deems
be in the interests of the parties or the public.
(b) Procedure. -
Notice of any hearing or oral presentation
ter a reasonable
ordered by the Board will be published in the Federal Regis
time in advance of the date fixed.
Hearings will ordinarily be held before
sions of the
trial examiners appointed in accordance with the provi
accordance with
Administrative Procedure Act, and will be conducted in
l Hearings).
Part 263 of this chapter (Rules of Practice For Forma
Oral
Board of Governors.
presentations will ordinarily he held before the
i.
f:r
Board of Governors
5.a
-6-
(c) Record of proceedings. -
The record in any proceeding
under this part upon which an order of the Board is based shall consist
of the application or request filed with the Beard in connection with such
proceeding; any views and recommendations received by the Board from the
Comptroller of the Currency or the appropriate State supervisory
autnerity pursuant to section 3(h) of the act; the transcript of any
hearing or oral presentation held with respect to such application or
request any exhibits admitted into evidence thereat; any report and
recommendation made by the trial examiner or hearing officer before whom
a hearing was held;
Board
any other document or writing relied upon by the
in making disposition of the matter; any order of the Board issued
in connection with the proceeding; and any statement of reasons issued
by the Board in support of such order.
2a.
The purpose of these amendments is (i) to allow the
number of copies of applications which must be filed in seeking the
Board's approval of certain transactions referred to in section 3(a)
of the Bank Holding Company Act of 1956 (12 U.S.C. 1842) to be controlled
by the requirements set forth in the form of application itself, (ii) to
eliminate the requirement that such applications must be filed not less
than 60 days prior to the proposed consummation of the transaction and
related references, and (iii) to clarify and expand the regulation in
certain respects regarding the Boards procedures applicable to such
applications and applications under section 4(c)(6) of the said act.
315
Board of Governors
b.
-7-
ns
The change regarding the number of copies of applicatio
cation which
to be filed was included in a *proposed revised form of appli
comment, and
was distributed to all existing bank holding companies for
r. So far
no adverse comments have been received regarding this matte
rement,
as concerns elimination of reference to the 60-day filing requi
60 days is
this has been done because as a practical matter more than
and it is therefore
usually required for disposition of an application,
Regulation might be
believed that reference to a 60-day interval in the
misleading.
the
The remaining changes have been made in order that
of the Board's
Regulation may accurately reflect the nature and scope
ny applications which
procedures and practices regarding bank holding compa
have evolved since the Regulation was drafted.
requirements
c. The notice, public procedure, and effective date
Administrative Procedure
described in sections 4(a), (b), and (c) of the
for good cause
Act are not followed in connection with these amendments
dure (Part 262);
found, as stated in § 262.1(e) of the Board's Rules of Proce
ments in question is such
viz, it is not believed that the nature of the amend
as to make such procedures necessary or desirable.
1842.]
[12 U.S.C. 1844. Interprets or applies 12 U.S.C.
By order of the Board.
31.5F
Item No.
BOARD OF GOVERNORS
9
9/12/63
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D. C. 20551
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 16, 1963.
Dear Sir:
The indicated number of copies of the following forms are
being forwarded to your Bank under separate cover for use of State
member banks and their affiliates in submitting reports as of the
next call date. A copy of each form is attached.
Number of
copies
Form FR 105 (Call No. 169), Report of Condition
of State member banks.
Form FR 105e (Revised February 1961), Publisher's
copy of report of condition of State member banks.
Form FR 105e-1 (Revised February 1961), Publisher's
copy of report of condition of State member banks.
Form FR 220 (Revised March 1952), Report of affiliate'
or holding company affiliate.
Form FR 220a (Revised March 1952), Publisher's copy of
report of affiliate or holding company affiliate.
All of the forms are the same as those used on June 29, 1963.
The Office of the Comptroller of the Currency has informed the
Board that the national bank report of condition will be revised; the
revisions are described in an attachment. The Board was not informed
of the proposed revisions until August 19, which did not allow time for
negotiations with the State banking departments with which joint publication arrangements have been developed over the years, or with the
Bureau of the Budget and its Advisory Committee, or to submit the draft
form to the Federal Reserve Banks for comments and suggestions.
-2ally
Substantial differences in form will make it practic
ed
automat
present
under
data
bank
impossible to tabulate all member
for
data
ical
statist
ble
compara
processing techniques or to obtain
be relieved of
this call. In the circumstances, State members may
back of the
the
on
es
schedul
d
the burden of completing the detaile
call, they
this
of
s
purpose
form and should be informed that, for
is to be
which
report,
the
of
need complete and submit only the face
which
form
the
of
reverse
the
published,and the following items on
e D,
Schedul
es:
purpos
ent
assessm
are required for deposit insurance
m
subite
and
(a)
m
subite
tion,"
collec
item 1 "Cash items in process of
F,
e
Schedul
ts;"
deposi
demand
"Total
(b) or (c); Schedule E, item 9
loans;" and
item 2 "Deposits accumulated for payment of personal
e FDI "Other
Schedul
and
ts;"
deposi
item 10 "Total time and savings
"
data for deposit insurance assessments.
tabulate
The Federal Reserve Banks need not key punch or
to that
limited
be
may
editing
and
the reports for this fall call,
cy of
accura
tial
substan
insure
to
necessary on State member reports
Deposit
Federal
the
by
d
require
the publisher's copy and the items
Insurance Corporation for assessment purposes.
commercial banks
The loss of benchmark data for all insured
to edit the
Banks
Reserve
the
for
at the fall call makesit necessary
carefully
more
even
644
FR
form
thly
weekly form FR 416 and the semimon
and
bility
compara
ed
continu
n
than heretofore in order to maintai
bank and semimonthly
consistency in the Board's weekly reporting member
received from
forms
thly
semimon
or
all-bank series. If these weekly
ns, the banks
patter
ng
reporti
in
shifts
national banks should indicate
the past for
in
have
they
as
report
to
involved should be urged either
Reserve Banks may
these two series or to interline the items so that
stocks should
make statistical adjustments; for example: corporate
al funds sold" and
continue to be included in other securities; "Feder
and borrowings,
"Federal funds purchased" should be included in loans
be reported net
respectively; securities and capital accounts should
of valuation reserves; real estate loans should be reported in accordForm
ance with current instruction pamphlets; and total loans on
FR 644 should be reported net of valuation reserves. Tentatively,
assets.
direct lease financing transactions should be included in other
Very truly yours,
\_ A.
Merritt She an,
Secretary.
Enclosures
TO THE PRESIDENTS OF ALL FEDERAL RESERVE RANKS,
Changes in National Bank Report of Condition'Effective For 1963 Fall Call
1.
on the face
Reporting of loans and investment items on a gross basis
a separate secside of the report, with valuation reserves shown in
valuation reserve
tion following "Total liabilities." Three separate
items are listed:
Reserve for loan losses under
Internal Revenue Code
Valuation reserve on securities
Other valuation reserves
ues to be reported
The item of total valuation reserves on loans contin
separately in the loan Schedule A.
Items in Schedule B, Government
net of reserves as
securities, are to be reported gross, instead of
heretofore.
2.
stocks (including $
Omission of present Asset item 5, "Corporate
stock of Federal Reserve Bank)."
It is not known where these stocks
in other assets.
are to be reported by national banks, presumably
3.
purchased," to
New items, "Federal funds sold" and "Federal funds
.
follow the loans and borrowings items, respectively
al
4. New item, "Direct lease financing," to follow the new item "Feder
funds sold."
5.
assets indirectly repreChange of present item, "Investments and other
to "Loans to and investsenting bank premises or other real estate,"
ments in corporations owning bank premises."
6.
followed by preNew item, "Debentures" added under Capital Accounts,
reversal of form FR 105
ferred and common stock in that order, i.e., a
order.
-27.
l funds".following
New subtotal, "Total valuation reserves and capita
valuation reserves and capital accounts.
8.
s pledged or
Deletion under "Memoranda" of the present item, "Asset
assigned to secure liabilities...."
9.
10.
nding."
New memorandum item, "Time certificates of deposit outsta
to change the
Schedule A on the back of the report has been revised
, in whole or in
first line to read, "All loans secured by real estate
part."
315
Item No. 10
9/12/63
BOARD OF GOVERNORS
......
OF THE
•:90f
.FEDERAL RESERVE SYSTEM
* "t•
.
• .,,,O
.%.,..,, ..,
..
:
WASHINGTON 25, D. C.
.
ADDRESS OFFICIAL CORRESPONDENCE
TO THE BOARD
September 12, 1963
Mr. Paul C. Stetzelberger, Vice President,
Federal Reserve Bank of Cleveland,
Cleveland, Ohio.
Dear Hr. Stetzelberger:
In accordance with the request contained in your
5, 1963, the Board approves the appointment
September
letter of
of Anthony John DiMare as an assistant examiner for the Federal
Reserve Bank of Cleveland. Please advise the effective date
of the appointment.
Very truly yours,
(Signed) Elizabeth L. Carmichael
Elizabeth L. Carmichael,
Assistant Secretary.
@FedFRASER