MUTUAL FUND LEGISLATION OF 1967 HEARING BEFORE THE COMMITTEE ON BANKING AND CURRENCY UNITED STATES SENATE NINETIETH CONGRESS FIRST SESSION ON Amendment No. 438 to S. 1659 TO AUTHORIZE FEDERAL RESERVE MEMBER BANKS TO COMMITTEE ON BANKING AND CURRENCY JOHN SPARKMAN, Alabama, Chairman WILLIAM PROXMIRE, Wisconsin WALLACE F. BENNETT, Utah HARRISON A. WILLIAMS, JR., New Jersey JOHN G. TOWER, Texas CONTENTS Page Amendment No. 438 to S. 1659__. 1210 Summary of proposed amendments dealing with bank collective investment funds 1222 Section-by-section analysis 1220 Report from the Federal Reserve System_. 1226 WITNESSES Robert L. Augenblick, president, Investment Co. Institute; accompanied 1230 1296 1279 1228 1266 Dean E. Miller, Deputy Comptroller for Trusts, Office of the Comptroller of the Currency; accompanied by Robert Bloom, Chief Counsel Phil E. Pearce, National Association of Securities Dealers; accompanied by Lloyd J. Derrickson, general counsel and secretary; and W. R. Moulten, director of the Investment Companies Department--. Francis R. Schanck, first vice president, Investment Bankers Association of America; accompanied by W. Bruce McConnel, Jr., chairman of securities committee; Franklin Johnson, chairman of investment committee, and Gordon L. Calvert, executive secretary and general counsel__ 1272 American Life Convention and Life Insurance Association of America, statement of.. 1347 Camp, William B., Comptroller of the Currency, defendant, U.S. District Civil action No. 1083-66, U.S. Court for the District of Columbia, 1232 Supplemental memorandum__ 1257 nvestment Bankers Association of America: Calvert, Gordon L., executive director and general counsel, letter to committee___ 1278 Schanck, Francis R., first vice president, statement of 1272 ational Association of Securities Dealers: Pearce, Phil E., statement of......... Derrickson, Lloyd J., general counsel, letter to committee.. Memorandum to committee___ 1266 1269 1269 IV New York Times, article entitled, "Funds Ask Banks To Help Kill Page 1253 Opinion of Judge McGarragh in Investment Company Institute v. Camp__ 1232 1263 Comparative draft of changes recommended by. First National City Bank, Investment Company Act release No. 4538 Memorandum received by the committee___ U.S. District Court for the District of Columbia, civil action No. 1083–66. 1307 1296 1344 1297 1329 1338 1232 MUTUAL FUND LEGISLATION OF 1967 THURSDAY, NOVEMBER 16, 1967 U.S. SENATE, COMMITTEE ON BANKING AND CURRENCY, Washington, D.C. The committee met at 9 a.m. in room 5302, New Senate Office Building, Thomas J. McIntyre presiding. Present: Senators McIntyre and Williams. Senator MCINTYRE. The Committee on Banking and Currency will come to order. This morning the committee will conduct hearings on amendment No. 438, which I intend to propose to S. 1659. The full committee held hearings on S. 1659 in July and August of this year. At this time I would like to express my own personal appreciation and thanks to the chairman of our committee, Senator Sparkman, for his willingness to authorize this hearing. I would like to state for the benefit of those who may be interested that this amendment represents the work of myself and my own staff and the legislative counsel of the Senate. We have consulted with representatives of various Federal agencies and industry groups, some of which have suggested technical language which was used to a partial extent. It is my feeling, and I speak only for myself on this point, that this amendment represents a substantial compromise among the various parties. I think that it represents a clear move in the public interest. At my request the SEC has prepared a section by section analysis and explanation of this Amendment 438. Without objection the amendments and summary will be placed in the record at this point. Also a letter from the Board of Governors of the Federal Reserve System. (Amendment No. 438, the letter, the analysis of amendments, and summary follows:) 1209 |