Full text of The Northwestern Banker : December 1, 1969, No. 1196

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Oldest Financial Journal Serving The Central and Western States

No. 1196

Des Moines, Iowa

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Laundry List’’ Concerns Banking Industry

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The “ laundry list” of prohibited
activities contained in the H o u se passed one-bank holding company
bill applies to banks belonging to
a bank holding company system as
well as bank holding companies
and their non-bank subsidiaries,
Washington banking sources be­
lieve.
These sources say the industry
will proceed in the Senate on the
assumption that the holding com­
pany banks are covered by the
b ill’ s prohibitions concerning the
operations of mutual funds and
travel agencies, the general in­
surance business, equipment lea s­
ing, data processing and account­
ing.
In several places of the present
Bank Holding Company Act, they
point out, the term “ subsidiary”
is used to cover bank subsidiaries
as well as non-bank subsidiaries.
In addition, these sources note,
the banking industry must look to
the clear intent of Pep. Benjamin
B. Blackburn (R ., G a.), who intro­
duced the “ laundry lis t” amend­
ment, to prohibit banks in a hold­
ing company system from engaging
in these activities.
Throughout the discussion of
his amendment, Rep. Blackburn
said it would forbid “ banks” from
engaging in these activities.
The “ laundry list” amendment

is of more concern to the banking
industry than any other single pro­
vision in a very restrictive onebank bill (H. R. 6778).
Not only does it place limita­
tions on bank holding companies
and their subsidiaries (both bank
and non-bank), sources noted, but
it could lead to restrictions on the
future growth of the banking indus­
try-in clu d in g banks not affiliated
with a holding company.
As an example, they point to
hearings on the mutual fund re­
form bill (S. 2224 and H. R. 11995),
which would allow banks to enter
the mutual fund business.
The Investment Company Insti­
tute, attempting to kill the bank­
ing provisions, noted that the onebank holding company bill pro­
hibits holding companies, their
bank affiliates and their non-bank
subsidiaries from engaging in the
mutual fund business.
ICI admitted that the legislation
does not apply to banks not affili­
ated with a holding company, but
argued that if holding company
banks are forbidden from entering
the mutual fund business, other
banks should also be prohibited
from operating mutual funds.
In addition, banking sources
point out that the three Federal
banking agencies will find it diffi­
cult. to ignore the sense of Con­

December 1,1969
gress —should the House one-bank
bill be enacted —that banks gener­
ally be prohibited from these acti­
vities.
The Blackburn amendment states
that the prohibited activities are
“ neither necessary, incidental nor
related to carrying on the business
of banking or of managing or con­
trolling banks, and are not in the
public interest to be carried on
by bank holding companies or sub­
sidiaries thereof.”
House Banking Committee Chair­
man WrightPatman (D ., T ex.) stated
on the House floor that the bank­
ing
agencies
and
the courts
“ should take into consideration
this statement of legislative poli­
cy
when considering what is
incident to banking under the
banking la w s.”
FDIC Chairman K. A. Randall
said he would go directly to the
President to veto this restrictive
legislation if a more moderate
version is not worked out in Con­
gress before final passage. He
was addressing the Third District
of the National Association of
Supervisors of State Banks in
Miami when he delivered his criti­
cal analysis of the House-passed
legislation. He said further that
the new FHLBB administration is
trying to achieve a strong savings
and loan industry at the expense
of commercial banks, riding on the
(Continued on Page 4)

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IOWA-DES MOINES

NATIONAL BANK
George Hernagel

IOWA NEWS

Member Federal Deposit Insurance Corporation

has purchased the interest of Hans
Lamsen in the Central Bank here.
Mr. H esse lgesser has assumed the
duties of chairman of the board. Mr.
Lamsen had been serving as vice
president, inactive, at the bank.

ALBERT CITY: Clarence Kindwall,
president of the Albert City Savings
Bank, has sold his controlling inter­
est in the bank to W. O. Hopkins of
Webb, Iowa, and John Hopkins of
DONIPHAN: Stock in the Bank of
Spencer, Iowa.
W. O. Hopkins is president of the Doniphan formerly owned by the
Citizens State Bank of Webb and will late Glen E. Dean has been sold to
continue to operate that bank. John J. H. Oliver, president of the Raven­
Hopkins will become executive vice na Bank. Mr. Dean was president of
president at the Albert City bank. He the Bank of Doniphan from November
has been employed as an assistant 1965 until his death last June. Mrs.
v ice president in the commercial Dean, who has served as bank pres­
ident sin ce the death of her husband,
loan department of the Clay County
will continue to serve for an indefi­
National Bank, Spencer.
nite period.
NEWTON: Controlling interest in the
Newton National Bank has been pur­ HASTINGS: The board of directors of
chased by Robert Isensee, president, the City National Bank has announced
United Home Bank, Mason City, and the following promotions: Carl F.
a group of Mason City investors from Witt, v ice president and cashier; Mel­
W. C. Ilstrup, president.
vin D. Bunde, assistant vice pres­
Mr. Isensee has been elected chair­ ident; Robert L. Shoemaker and Mrs.
man, president and director of the Marie Kilmer, assistant cashiers.
bank. Duane Prill, president, First 0 . J. McDougal, Jr., vice president
State Bank, Britt, also has been at the bank, has been elected to the
elected to the board. Mr. Ilstrup, who board of directors.
has resigned as president, continues
on the board.
TILDEN: Myron K. Osborn, former a s ­
Resigning from the board were sistant cashier at the Tilden Bank,
Dr. R . W. Wood and John Schumann. has been discharged from the Army
MT. PLEASANT: Mrs. Ernie Hayes and has returned to his position at
fell and broke her hip last week when the bank.
she and Mr. Hayes were in Chicago.
MINNESOTA NEWS
She is in room 502 , Passvant Mem­
orial Hospital in Chicago. Mr. Hayes
is director of Henry County Savings, BURNSVILLE: An application has
Mt. Pleasant, and president of H ills­ been filed with the Minnesota Depart­
ment of Commerce for a state bank to
boro Savings Bank.
be located here at the intersection of
NEBRASKANEWS
Highway 13 and Interstate 35 W. Pro­
CENTRAL CITY: Ervin H esselgesser posed name for the bank is the Burns-

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BANK PLANNING
Waterloo. Iowa
ville State Bank. Incorporators named
in the application are John F. Singewald and Richard Temby Todd, both
of Burnsville. The proposed capital
structure of $500,000 consists of
$200,000 commoii capital, $200,000
surplus and $100,000 undivided prof- At
its. No date has been set for hearing
on the application.
A
HUTCHINSON: O fficials of the Citi- >
zens Bank & Trust Company recently
held an open house celebration for
their expanded motor bank facility. V- t
A second teller position has been
added to the facility to speed up ^
service.
MINNEAPOLIS: Virginia Hawarth, a s­
sistant vice president, First Wiscon­
sin National Bank of F on ddu L ac, will
be the guest speaker at the meeting of
the Minnesota Group of the National
A ssociation of Bank-Women, In c., on
Wednesday, December 3, at the Northstar Inn here.
MINNEAPOLIS: Robert H. Jones, 29,
administrative assistant in the na­
tional accounts and correspondent
banking department at the First Na­
tional Bank of Minneapolis, has been
killed in a head-on, two-car collision
near Lake Geneva, Wise. Mr. Jones
was a University of Wisconsin gradu­
ate and had been with the bank sin ce
April, 1968.
NORTH BRANCH: W. C. Holt, vice
president and director of the Merchants
State Bank here, has died at the age
of 71. Mr. H olt’ s son, William, Jr., is
president of the Merchants State Bank.
SLEEPY EYE: Stephen Adams of
Eden Prairie has been elected chair­
man of the board of the First Security
State Bank, succeeding Clark Arnott,
who has resigned to take charge of
his own bank at Ladysmith, Wise.
Charles Haug has been named man­
aging officer at the bank here. He
has been with the bank for 25 years
and has been president the past two
years.

ILLINOIS NEWS

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CHAMPAIGN: Chancy A. Finfrock has
been promoted to senior vice pres­
ident and comptroller at the Bank of
Illinois here. Mr. Finfrock has served
as v ice president, cashier and trust

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FIRST NATIONAL BANK & TRUST COMPANY OF LINCOLN
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officer at the bank sin ce 1959. Kennard J. Kling has been appointed
vice president, installment loan de­
partment. He joined the bank in 1968
and was promoted to assistant vice
president in July of this year. Law­
rence P. Walton, formerly with the
Rock Falls National Bank, Rock
F a lls, 111., and the Southeast National
Bank of Moline, 111., has joined the
bank as v ice president and cashier.
Richard T . Tempelman, formerly of
the First National Bank of Chicago
and the First National of Lansing,
111., has been appointed assistant
cashier, installment loan department.

-H

m

QUINCY: The 500 mark for the num­
ber of banks which are members of
the Bankmark group of banks has
been surpassed with the addition of
five new banks from the Quincy area.
The new banks include the Broadway
National Bank of Quincy, the Illinois
State Bank of Quincy, Mercantile
Trust and Savings Bank, South Side
Bank of Quincy and the State Street
Bank & Trust Company.
The board of directors for Credit
Systems Incorporated, the non-profit
organization which operates Bankmark, has announced that the name
“ Bankmark” would be changed to
“ Master Charge” sometime after the
first of the year.

NORTH DAKOTA NEWS
“ Let’ s Serve North Dakota Agri­
culture” is the theme of the North
Dakota Bankers A ssociation ’ s 8th
annual Agricultural Credit Conference
to be held December 4—5 at the
Gardner Hotel in Fargo. The confer­
ence will get underway Thursday
evening, December 4, with registra­
tion at 5:00, followed by a social
hour, smorgasbord and dance at 6:30
that evening.
Presiding at the morning session s
will be Henry N. N ess, chairman,

NDBA Agricultural Committee, and
v ice president and agricultural repre­
sentative, Fargo National Bank &
Trust. George Schwartz, assistant
cashier, First National Bank & Trust
of Fargo, will preside at the after­
noon sessio n s.
Other speakers and their topics
include: U. S. Agriculture-Expand Ex­
ports or Adjist Resources? —Norbert
A. Dorow, extension agricultural econ ­
omist, North Dakota State University;
Who is E ligible for an FHA Loan? —
N. Paul Rasmussen, North Dakota
state director, Farmers Home Admin­
istration; Are We Serving Agriculture?
(open d iscu ssion ); R esponsibility of
Country Bankers to Agriculture —
Thomas J. Prosser, member of ABA
Agricultural Committee, and president,
National Manufacturers Bank of Neenah, W ise.; Who’ s Going to Be Around
to Pay the L o a n ?—(panel discussion)
Clark Jenkins, v ice president, Mer­
chants National Bank & Trust, Fargo
(moderator).
Guest speaker at the evening ban­
quet w ill be Laurel Loftsgard, pres­
ident of North Dakota State Univer­
sity.

SOUTH DAKOTA NEWS
BUFFALO GAP: Robert Nolan has
been named manager at the Buffalo
Gap office of the Southern Hills Bank
of Edgemont. Mr. Nolan fills the
vacancy created by the resignation of
Lloyd Soske, Jr., and has been em­
ployed for the last five years at the
Blackpipe State Bank in Martin, S .D .

COLORADO NEWS
COLORADO SPRINGS: The Colorado
Bankers A ssociation will hold its
Executive Management Conference
here at the Broadmoor Hotel on
December 4—5.
DENVER: Three promotions have
been approved by the First National
Bank of Denver. Gary C. Winter has
been promoted from assistant cash ­
ier to assistant vice president, head­
ing the recently created cash manage­
ment division at the bank. Robert L.
Bauers has been named assistant
cashier in the bond department, and
Gary L. Potter has been designated
assistant trust officer in the trust
department. The bank also has de­
clared a quarterly dividend o f $1.03
per share, payable December 29 to
stockholders of record December 8.

DENVER:
president
Colorado
named to

Charles E. McDaniel, vice
and cashier of Northeast
National Bank, has been
the bank’ s board of direcA

SHERIDAN: Homer A. Scott has been
elected president of the Bank of
Commerce and chairman of the bank’ s
board of directors, effective January
1. Mr. Scott has been a director at
the bank since 1967 and served as a
director of the Omaha office of

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SHERIDAN: D. C. Brayton has been
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since 1946.

WYOMING NEWS

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grandfather clause date of May 9, ers A ssociation on the one-bank bill
1956. They claim that this date is was particularly disturbing to banking
so unreasonable that there is little representatives in Washington and to
chance that it w ill finally emerge bankers in general —including many
IBA members.
from Congress.
Despite the fact that many IBA
In addition, they point out that the
small, traditional one-bank holding members operate one-bank holding
the
association sent
companies, which for the most part companies,
Christy
Leo
Bob
Armstrong
Kane
Scott
telegrams
to
all
House
members urging
stayed out of the controversy on the
'WE H A V E W H A T YOU W AN T
support for a roll back of the grand­
House sid e, now must become active
in opposing the 1956 grandfather father date to January 1, 1965. It
tri a correspondent bank’
clause and other provisions in the would have forced many small, tradi­
tional one-bank companies to divest
Senate.
And some one-bank holding com ­ acquisitions found not functionally
panies that believed there would be related to banking.
9 T H A N D M A IN . D U B U Q U E , IOW A
Even though this date was not
no legislation this Congress will
M EM BER FDIC » FRS
have to re-evaluate this attitude fo l­ adopted, the telegram served to con ­
fuse many House members on where
lowing the House action, sources
the
banking industry stood on the
tors. He joined Colorado National note.
The stand of the Independent Bank- legislation, sources noted.
Bank in 1931 and transferred to the
Northeast Colorado National in 1967.

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MONTANA NEWS
BUTTE: Two new officers have been
elected at the First Metals Bank &
Trust Company, according to Erwin
P. Frizelle, president. Don G. Tatge
has been named assistant trust o f­
ficer, and Mrs. Juanita M. Periman
has been elected assistant secretary
and assistant treasurer. Mr. Tatge
joined the bank’ s timepay department
in 1966 and was a unit manager in
that department before his promotion.
Mrs. periman, who also joined the
bank in 1966, was a stenographer in
the commercial department.

"Laundry L is t"
(Continued from Page 1)
“ politically potent force of housing”
to achieve new powers.
Washington sources are not com­
pletely discouraged by the harsh

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No. 1196 Northwestern Banker is published five times monthly by the Northwestern Banker Company, 306 Fifteenth Street, Des
Digitized Moines,
for FRASER
Iowa 50309- Subscriptions 50* per copy, $6 per year. Second cla ss postage paid at Des Moines, Iowa. Address all mail
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