Printed for the use of the Committee on Banking and Currency 10-60-776 68689 UNITED STATES WASHINGTON : 1950 HBPI CONTENTS 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, Bentsen, Hon. Lloyd M., Jr., a Member of Congress from the State of Birdzell, L. E., former general counsel, Federal Deposit Insurance Bliss, George L., chairman, legislative committee, United States Sav- Brumbaugh, D. Emmert, chairman, legislative committee, National 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 Bank of Roanoke, Roanoke, Va__ Crook, Hon. Thurman C., a Member of Congress from the State of DuBois, Ben, secretary, Independent Bankers Association Gormley, R. E., chairman, legislative committee, the Georgia Bankers Association, and vice president, the Georgia Savings Bank & Trust Harl, Maple T., Chairman, Federal Deposit Insurance Corporation - Kreutz, Oscar R., executive manager, National Savings and Loan Miller, Russell, counsel, Federal Deposit Insurance Corporation_ Montgomery, Donald, representing the Congress of Industrial Organi- 65 Reichert, R. E., representing the American Bankers Association, and 44 Stout, Richard H., executive vice president, Bank of Louisville, 126 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.. 54 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 II.-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. Ínsured commercial banks, taxes on income and other Talle, Hon. Henry O.: Federal Deposit Insurance Corporation, letter of June 12, 1950, George State Bank, George, Iowa, letter of June 6, 1950, to The Independent Bankers Association, letter of May 23, 1950, to 57 58 57 AMENDMENTS TO FEDERAL DEPOSIT INSURANCE ACT, 1950 TUESDAY, JUNE 20, 1950 HOUSE OF REPRESENTATIVES, COMMITTEE ON BANKING AND CURRENCY, 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 |