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Letters, memorandums, statements, etc.—Continued
Jasper, Ind.: Letter to chairman...
Wyoming Bankers Association: Resolution.
BANK HOLDING LEGISLATION
WEDNESDAY, JUNE 10, 1953
UNITED STATES SENATE,
Washington, D.O. The committee met, pursuant to notice, at 10 a. m., in room 301, Senate Office Building, Senator Homer E. Capehart, chairman, presiding
Present: Senators Capehart, Bricker, Bennett, Bush, Payne, Goldwater, and Lehman.
The CHAIRMAN. The committee will please come to order. The bills we are considering, S. 76 and S. 1118, will be inserted in the record for the information of the committee, together with a sectional analysis of each.
(S. 76 and S. 1118 and the sectional analyses follow :)
[S. 76, 83d Cong., 1st sess. ] A BILL To define bank holding companies, control their future expansion, and to require
the divestment of nonbanking assets
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 1953.”
SEC. 2 DEFINITIONS.—(a) "Bank holding company" means any corporation, business trust, partnership, association, or other similar organization which at any time after April 15, 1953, owns or controls, directly or indirectly, 50 per centum or more of the shares of an insured bank (as defined in section 12B (c) (8) of the Federal Reserve Act) or 50 per centum or more of the shares voted for the election of directors of an insured bank at the preceding election, or controls in any manner the election of a majority of the directors of an insured bank, or for the benefit of whose shareholders or members more than 50 per centum of the shares of an insured bank is held by trustees at any time after April 15, 1953; or a successor to any such organization. Notwithstanding the foregoing, the term "bank holding company" shall not include any mutual savings bank, the Federal Deposit Insurance Corporation, or any corporation all of the stock of which is owned by the United States, or any organization which does not own or control more than 5 per centum of the voting shares of more than two banks and is determined by the Board of Governors of the Federal Reserve System not to be engaged directly or indirectly as a business in managing or controlling one or more banks; and no bank shall be a bank holding company by virtue of the ownership or control of shares in a fiduciary capacity, except where such shares are held for the benefit of all or a majority of the jasons beneficially interested in such bank.
(b) The term "successor" shall include any organization which acquires from a bank holding company stock of an insured bank, when and if the relationship between the organization and the bank holding company is such that the transaction effects no substantial change in the control or beneficial ownership of such stock. The Board of Governors of the Federal Reserve System may, by regulation, further define the term "successor” to the extent necessary to prevent erasion of the purposes of this Act.
SEC. 3. No bank holding company shall, while it owns or controls more than 5 per centum of the shares of any insured bank, acquire any shares of any bank except with the approval of
S. 76 and S. 1118
AND FOR OTHER PURPOSES
JUNE 10, 11, AND 12, 1953
Printed for the use of the Committee on Banking and Currency
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1953
COMMITTEE ON BANKING AND CURRENCY
HOMER E. CAPEHART, Indiana, Chairman JOHN W. BRICKER, Ohio
BURNET R. MAYBANK, South Carolina IRVING M. IVES, New York
J. WILLIAM FULBRIGHT, Arkansas WALLACE F. BENNETT, Utah
A. WILLIS ROBERTSON, Virginia PRESCOTT BUSH, Connecticut
JOHN SPARKMAN, Alabama J. GLENN BEALL, Maryland
J. ALLEN FREAR, JR., Delaware FREDERICK G. PAYNE, Maine
PAUL H. DOUGLAS, Illinois
HERBERT H. LEHMAN, New York