« PreviousContinue »
A BILL TO PROVIDE FOR CONTROL AND REGULATION
FOR OTHER PURPOSES
MAY 26, JUNE 2 AND 11, 1947
Printed for the use of the Committee on Banking and Currency
Beasley, Robert S., vice president, Beverly Hills National Bank &
Trust Co., Beverly Hills, Calif
Du Bois, Ben, secretary, Independent Bankers Association, Sauk
Eccles, Marriner S., Board of Governors, Federal Reserve System,
Hollister, R. F., executive manager, Independent Bankers Association
of the Twelfth Federal Reserve District.
Huntington, Ellery C., Jr., president, Morris Plan Corp. of America,
Morris, Arthur J., chairman of the board, Morris Plan Corp. of
Townsend, J. L., assistant general counsel, Federal Reserve System,
Bill, letters, statements, etc., submitted for the record:
American Banker, statement of November 18, 1946, "Forty-four
of Eighty-one Morris Plan Institutions Have Changed Names as
Equity Corp., American General Corp.; Morris Plan Corp. of Amer-
Federal Reserve Bank of Chicago, Detroit branch, letter, June 23,
Federal Reserve System, Board of Governors, letter, June 2, 1947, to
Federal Reserve System, Board of Governors, letter, June 13, 1947.
First National Bank trustees, of Louisville, Ky., submitted state-
Giannini, L. M., letter, June 2, 1947, reply from Hon. Charles W.
Exhibit 1, on file with the committee.
Exhibit 2-E, list of proponents of the Morris Plan
Exhibit 3-N, Morris Plan influence, comparative data_
Exhibit 4-A, letter, May 20, 1947, to consumer Bankers
Exhibit 4-D, argument.
Exhibit 4-F, Morris Plan Corp. of America representation
on boards of directors_
Morris Plan Corp of America, letter, June 17, 1947, with supple-
Morse, Hon. Wayne, letter, June 17, 1947, with enclosed letter from
Satterlee, Warfield & Stephens letter, June 13, 1947-
Suggested amendments to bill S. 829, submitted by Mr. Eccles
Transactions of certain affiliated persons and underwriters, section 17-
Warfield, Ethelbut, statement of, submitted by Hon. Charles W.
Willows Journal, advertisement, April 11, 1947, on, "Do you wish the
Federal Government to take over the business of operating all
PROVIDING FOR CONTROL AND REGULATION OF BANK
MONDAY, MAY 26, 1947
UNITED STATES SENATE,
COMMITTEE On Banking and CURRENCY,
Washington, D. C.
The committee met, pursuant to call, at 10 a. m., in room 301, Senate Office Building, Senator Charles W. Tobey (chairman) presiding.
Present: Senators Tobey (chairman), Buck, Flanders, Cain, Fulbright, Robertson of Virginia, and Sparkman.
The CHAIRMAN. The committee will come to order.
We have additional committee members coming in the near future, but we would like to get started at the time announced as closely as possible for these hearings.
This is a hearing, gentlemen, on S. 829, an act to provide for the control and regulation of bank holding companies.
(S. 829 is as follows:)
[S. 829, 80th Cong., 1st sess.]
A BILL To provide for control and regulation of bank holding companies, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the Bank Holding Company Act of 1947.
SEC. 2. DECLARATION OF POLICY.-It is hereby declared to be the policy of Congress, in accordance with which policy all of the provisions of this Act shall be interpreted, to control the creation and expansion of bank holding companies; to separate their business of managing and controlling banks from unrelated businesses; and generally to maintain competition among banks and to minimize the danger inherent in concentration of economic power through centralized control of banks; to subject the business and affairs of bank holding companies to the same type of examination and regulation as the banks which they control; and otherwise to provide for more effective regulation and supervision of bank holding companies to the end that their influence and control shall be directed toward the continued pursuit of sound policies and the continued maintenance of sound financial conditions by their subsidiary banks.
Before the expiration of five years following the passage of this Act the Board of Governors of the Federal Reserve System shall report to Congress the results of the administration of this Act, stating what, if any, substantial difficulties have been encountered in carrying out the purposes of this Act, and any recommendations as to changes in the law which in the opinion of the Board would be desirable. SEC. 3. DEFINITIONS.-(a) "Bank holding company" means (1) any company which directly or indirectly owns, controls or holds with power to vote 10 per centum or more of the voting shares of each of two or more banks, unless the Board as hereinafter provided by order declares such company not to be a bank holding company; and (2) any company which the Board determines, after notice and opportunity for hearing, directly or indirectly exercises (either alone or pursuant to an arrangement or understanding with one or more other persons) such a controlling influence over the management or policies of two or more banks as to make it necessary or appropriate in the public interest or for the protection of investors or depositors that such company be subject to the obligations, duties and liabilities imposed in this Act upon bank holding companies.