Revision of the First Draft of the Bank Examinations of Sec. 29
Title
Revision of the First Draft of the Bank Examinations of Sec. 29
Creator
Strong, Benjamin, 1872-1928
Identifier
WWP18881
Date
No date
Source
Benjamin Strong Jr. Papers, New York Federal Reserve Bank
Language
English
Text
FIRST DRAFT.
Section .........
Bank Examinations.
Sec. 29.
That Section 5241 of the National Bank Act Revised Statutes is hereby amended to read as follows: “No association shall be subject to any visitorial powers other than such as are authorized by this title, or are vested in the directors, officers, or employees of the Federal Reserve Board Bank, or are vested in the courts of justice.”The Comptroller of the Currency shall hereafter file a duplicate of every report required by Sections 5211 and 5240 of the National Bank Act, one with the Federal Reserve Board at Washington, and one in the office of the branch of the Federal reserve bank within the district in which the respective banks under examination have their offices.That Tthe Federal Reserve Board shall, at least once in each calendar year, cause an examination of the assets and affairs of every depositing bank, banking association and trust company to be made, and more frequently if the Federal Reserve Board shall consider a special examination necessary, in order to furnish a full and complete knowledge of the condition of any such bank or trust company. The reports of such examinations shall be made in duplicate, one copy thereof filed in the office of the Comptroller of the Currency, and one copy in the office of the branch of the Federal Reserve bank within the district in which such depositing bank or trust company has its office. The person assigned to the making of the examinations herein provided shall have power to call together a quorum of the directors of the institution being examined, who may be required to state under oath the character and circumstances of any asset or liability of such bank or trust company. All examiners, their assistants and clerks, shall be appointed and employed subject to the approval of the Federal Reserve Board, by the Executive Committee of the respective branches, for service within the districts where such branches are located. They shall receive fixed salaries, the amount whereof shall be determined by the Federal Reserve Board and annually reported to Congress. The expense of the examinations herein provided for shall be assessed by the Executive Committee upon the depositing banks, banking associations and trust companies of the respective districts, in proportion to the assets or resources held by such institutions upon the dates of the examinations.Upon request of any depositing bank, banking association or trust company, the Executive Committee of any branch of the Federal reserve bank may arrange for special or periodical examinations of depositing banks and trust companies within its district, the cost and expenses of such examination to be borne by such depositing bank or trust company. All examinations, whether thus regularly provided or specially authorized, shall be so conducted as to inform the Federal reserve bank and its respective branches of the actual condition of the bank or trust company examined, and the lines of credit being extended by such banks and trust companies, and any other information essential to a knowledge of the condition of such bank or trust company, as may be required by the Executive Committee of the respective branches or by the Federal Reserve Board, under special or general regulations of the Board.The Federal Reserve Board shall, at least once each year, order an examination of each branch of the Federal reserve bank and of each sub-branch thereof, and report of such examination shall be made in duplicate, one copy thereof filed in the office of the branch, and one copy in the office of the Federal Reserve Board at Washington, and such examination and report shall be condiucted and made as to disclose the actual condition of the assets and liabilities of such branches, and the amount and character of its reserve, and of the amount, character and maturity of all of its investments and discounted paper.No depositing bank, banking association or trust company, nor any officer, director or employee thereof, shall make any loan or grant any gratuity to any examiner of any such bank or trust company. Any bank officer, director or employee violating this provision shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars, and a further sum equal to the money so loaned or gratuity given. Any examiner accepting a loan or gratuity from any bank examined by him, shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars, and a further sum equal to the money so loaned or gratuity given, and shall forever thereafter be disqualified from holding office as a national bank examiner. No examiner shall perfiorm any other service for compensation while holding such office, nor shall he be an officer or director or stockholder of any bank.
Section .........
Bank Examinations.
Sec. 29.
That Section 5241 of the National Bank Act Revised Statutes is hereby amended to read as follows: “No association shall be subject to any visitorial powers other than such as are authorized by this title, or are vested in the directors, officers, or employees of the Federal Reserve Board Bank, or are vested in the courts of justice.”The Comptroller of the Currency shall hereafter file a duplicate of every report required by Sections 5211 and 5240 of the National Bank Act, one with the Federal Reserve Board at Washington, and one in the office of the branch of the Federal reserve bank within the district in which the respective banks under examination have their offices.That Tthe Federal Reserve Board shall, at least once in each calendar year, cause an examination of the assets and affairs of every depositing bank, banking association and trust company to be made, and more frequently if the Federal Reserve Board shall consider a special examination necessary, in order to furnish a full and complete knowledge of the condition of any such bank or trust company. The reports of such examinations shall be made in duplicate, one copy thereof filed in the office of the Comptroller of the Currency, and one copy in the office of the branch of the Federal Reserve bank within the district in which such depositing bank or trust company has its office. The person assigned to the making of the examinations herein provided shall have power to call together a quorum of the directors of the institution being examined, who may be required to state under oath the character and circumstances of any asset or liability of such bank or trust company. All examiners, their assistants and clerks, shall be appointed and employed subject to the approval of the Federal Reserve Board, by the Executive Committee of the respective branches, for service within the districts where such branches are located. They shall receive fixed salaries, the amount whereof shall be determined by the Federal Reserve Board and annually reported to Congress. The expense of the examinations herein provided for shall be assessed by the Executive Committee upon the depositing banks, banking associations and trust companies of the respective districts, in proportion to the assets or resources held by such institutions upon the dates of the examinations.Upon request of any depositing bank, banking association or trust company, the Executive Committee of any branch of the Federal reserve bank may arrange for special or periodical examinations of depositing banks and trust companies within its district, the cost and expenses of such examination to be borne by such depositing bank or trust company. All examinations, whether thus regularly provided or specially authorized, shall be so conducted as to inform the Federal reserve bank and its respective branches of the actual condition of the bank or trust company examined, and the lines of credit being extended by such banks and trust companies, and any other information essential to a knowledge of the condition of such bank or trust company, as may be required by the Executive Committee of the respective branches or by the Federal Reserve Board, under special or general regulations of the Board.The Federal Reserve Board shall, at least once each year, order an examination of each branch of the Federal reserve bank and of each sub-branch thereof, and report of such examination shall be made in duplicate, one copy thereof filed in the office of the branch, and one copy in the office of the Federal Reserve Board at Washington, and such examination and report shall be condiucted and made as to disclose the actual condition of the assets and liabilities of such branches, and the amount and character of its reserve, and of the amount, character and maturity of all of its investments and discounted paper.No depositing bank, banking association or trust company, nor any officer, director or employee thereof, shall make any loan or grant any gratuity to any examiner of any such bank or trust company. Any bank officer, director or employee violating this provision shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars, and a further sum equal to the money so loaned or gratuity given. Any examiner accepting a loan or gratuity from any bank examined by him, shall be deemed guilty of a misdemeanor, and shall be fined not more than five thousand dollars, and a further sum equal to the money so loaned or gratuity given, and shall forever thereafter be disqualified from holding office as a national bank examiner. No examiner shall perfiorm any other service for compensation while holding such office, nor shall he be an officer or director or stockholder of any bank.
Original Format
Miscellaneous
Files
Collection
Citation
Strong, Benjamin, 1872-1928, “Revision of the First Draft of the Bank Examinations of Sec. 29,” No date, WWP18881, Benjamin Strong Jr. Papers, Woodrow Wilson Presidential Library & Museum, Staunton, Virginia.