AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT, 1950 BEFORE THE HEARINGS HOUSE OF REPRESENTATIVES Printed for the use of the Committee on Banking and Currency so-60-776 UNITED STATES GOVERNMENT PRINTING OFFICE 68689 WASHINGTON : 1950 COMMITTEE ON BANKING AND CURRENCY BRENT SPENCE, Kentucky, Chairman PAUL BROWN, Georgia JESSE P. WOLCOTT, Michigan WRIGHT PATMAN, Texas RALPH A. GAMBLE, New York A. S. MIKE MONRONEY, Oklahoma FREDERICK C. SMITH, Ohio BROOKS HAYS, Arkansas JOHN C. KUNKEL, Pennsylvania ALBERT RAINS, Alabama HENRY 0. TALLE, Iowa FRANK BUCHANAN, Pennsylvania ROLLA C. MCMILLEN, Illinois ABRAHAM J. MULTER, New York CLARENCE E. KILBURN, New York CHARLES B. DEANE, North Carolina ALBERT M. COLE, Kansas GEORGE D. O'BRIEN, Michigan MERLIN HULL, Wisconsin CHASE GOING WOODHOUSE, Connecticut HARDIE SCOTT, Pennsylvania CLINTON D. MCKINNON, California DONALD W. NICHOLSON, Massachusetts WILLIAM J. HALLAHAN, Clerk JOHN E. BARRIERE, Professional Staff CONTENTS Page 46 103 108 135 131 106 S. 2822. An act to amend the Federal Deposit Insurance Act-- Abbitt, Hon. W. M., a Member of Congress from the State of Virginia- Amberg, Harold V., vice president and general counsel, First National Bank of Chicago, representing the Association of Reserve City Arthur, Harry M., representing the American Bankers Association, and president, the Arthur State Bank, Union, S. C.- Texas Corporation, San Francisco, Calif. ings and Loan League, Mount Vernon, N. Y.. Brumbaugh, D. Emmert, chairman, legislative committee, National Association of Supervisors of State Banks - Cook, H. Earl, Director, Federal Deposit Insurance Corporation - Cocke, C. Francis, chairman, committee on Federal legislation, Ameri- can Bankers Association, and president, First National Exchange Crook, Hon. Thurman C., a Member of Congress from the State of Indiana DuBois, Ben, secretary, Independent Bankers Association - Gormley, R. E., chairman, legislative committee, the Georgia Bankers Association, and vice president, the Georgia Savings Bank & Trust Goss, A. S., master, the National Grange- League zations. Oliver, Fred N., general counsel, the National Association of Mutual Savings Banks, New York, N. Y.. Reichert, R. E., representing the American Bankers Association, and president, Ann Arbor Bank, Ann Arbor, Mich- Louisville, Ky., and chairman, legislative committee, Consumer Bankers Association. Wiggins, A. Lee M., chairman of the board, Bank of Hartsville, Miscellaneous information submitted for the record by- Petersburg Savings & American Trust Co., Petersburg, Va., letter of June 21, 1950, to.--- Federal Deposit Insurance Corporation: Applications for deposit insurance Comparison of interest paid on time and demand deposits, service charges on deposit accounts, and FDIC assessments, 1927–49, Federal Reserve members and all insured banks.. 146 138 147 44 126 73 Page Miscellaneous information by-Continued O'Hara, Hon. Barratt: Cummings, Walter J., chairman of the board, Continental Illinois National Bank & Trust Co., Chicago, Ill., Table I.-Insured commercial banks— Net profit after taxes, with estimated earnings on obligations of United States Government and on loans guaranteed by agencies of United States Govern- Table Íl.-Insured commercial banks—Estimated earnings on loans guaranteed or insured by agencies of United States Gov- Table III.-Insured commercial banks-Gross operating earnings, profits, and estimated earnings on United States Government Table IV.-Federal Reserve Bank—Total earnings, earnings on United States Government securities and paid to United States Table V.-Insured commercial banks, taxes on income and other Table VI.-Insured commercial banks, capital accounts, Decem- Talle, Hon. Henry 0.: Federal Deposit Insurance Corporation, letter of June 12, 1950, to Hon. Henry 0. Talle. George State Bank, George, Iowa, letter of June 6, 1950, to Maple T. Harl, Chairman, Federal Deposit Insurance Corpora- The Independent Bankers Association, letter of May 23, 1950, to Maple T. Harl, Chairman, Federal Deposit Insurance Corpora- 57 AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT, 1950 TUESDAY, JUNE 20, 1950 HOUSE OF REPRESENTATIVES, Washington, D.C. The committee met at 10 a. m., Hon. Brent Spence (chairman) presiding. The CHAIRMAN. The committee will be in order. We have met to consider S. 2822, to amend the Federal Deposit Insurance Act. [S. 2822, 81st Cong., 2d sess.) AN ACT TO amend the Federal Deposit Insurance Act (U. S. C., title 12, sec. 264) Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 12B of the Federal Reserve Act, as amended, is hereby withdrawn as a part of that Act and is made a separate Act to be known as the “Federal Deposit Insurance Act”. SEC. 2. The Federal Deposit Insurance Act is amended to read as follows: "SEC. 1. There is hereby created a Federal Deposit Insurance Corporation (hereinafter referred to as the 'Corporation') which shall insure, as hereinafter provided, the deposits of all banks which are entitled to the benefits of insurance under this Act, and which shall have the powers hereinafter granted. "SEC. 2. The management of the Corporation shall be vested in a Board of Directors consisting of three members, one of whom shall be the Comptroller of the Currency, and two of whom shall be citizens of the United States to be appointed by the President, by and with the advice and consent of the Senate. One of the appointive members shall be the Chairman of the Board of Directors of the Corporation and not more than two of the members of such Board of Directors shall be members of the same political party. Each such appointive member shall hold office for a term of six years. In the event of a vacancy in the office of the Comptroller of the Currency, and pending the appointment of his successor, or during the absence of the Comptroller from Washington, the Acting Comptroller of the Currency shall be a member of the Board of Directors in the place and stead of the Comptroller. In the event of a vacancy in the office of the Chairman of the Board of Directors, and pending the appointment of his successor, the Comptroller of the Currency shall act as Chairman. The members of the Board of Directors shall be ineligible during the time they are in office and for two years thereafter to hold any office, position, or employment in any insured bank, except that this restriction shall not apply to any member who has served the full term for which he was appointed. No member of the Board of Directors shall be an officer or director of any insured bank or Federal Reserve bank or hold stock in any insured bank; and before entering upon his duties as a member of the Board of Directors he shall certify under oath that he has complied with this requirement and such certification shall be filed with the secretary of the Board of Directors. SEC. 3. As used in this Act“(a) The term “State bank' means any bank, banking association, trust company, savings bank, or other banking institution which is engaged in the business of receiving deposits, other than trust funds as herein defined, and which is incorporated under the laws of any State, any Territory of the United States, Puerto Rico, or the Virgin Islands, or which is operating under the Code of Law 1 6 |
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