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AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT, 1950
HOUSE OF REPRESENTATIVES
Printed for the use of the Committee on Banking and Currency
GOVERNMENT PRINTING OFFICE
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
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.-
Corporation, San Francisco, Calif.
ings and Loan League, Mount Vernon, N. Y..
Association of Supervisors of State Banks -
can Bankers Association, and president, First National Exchange
Goss, A. S., master, the National Grange-
Reichert, R. E., representing the American Bankers Association, and
president, Ann Arbor Bank, Ann Arbor, Mich-
Louisville, Ky., and chairman, legislative committee, Consumer
Miscellaneous information submitted for the record by-
Petersburg Savings & American Trust Co., Petersburg, Va.,
letter of June 21, 1950, to.---
Miscellaneous information by-Continued
O'Hara, Hon. Barratt: Cummings, Walter J., chairman of the board,
Continental Illinois National Bank & Trust Co., Chicago, Ill.,
Talle, Hon. Henry 0.:
Federal Deposit Insurance Corporation, letter of June 12, 1950,
to Hon. Henry 0. Talle.
AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT,
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