Letter of transmittal_

CONTENTS

Part I. Origin of study.

Part II. The Federal Home Loan Bank Board, its functions and back-

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3

3

4

Establishment of Federal Savings and Loan Insurance Corporation_

Development of the home-loan banks...

Development of Federal savings and loan associations..

Development of the Insurance Corporation.

Significant statutory changes___

Association reserves__

Board action to counter inflation.

Part III. Separation of FHLBB and FSLIC.

Scope of study___

Conflict of interest issue_.

Growth of insurance risks.

Participation of FSLIC in growth of insurance risk.

Effect of "separation" insofar as the "conflict of interest" issue

is concerned..

"Promotional" activity by the FHLBB.

Other issues involved in separation.

Protection of the interests of the Corporation and the Treasury.

Increasing the efficiency of present operations__

Reducing operating expenses_

Promoting public confidence..

Part IV. Issues not pertinent to separation___

Federal Home Loan Bank Board responsibility for maintaining sound

credit conditions__

Examination of insured State-chartered institutions..

Supervision of member associations.

Adequacy of reserves of the FSLIC_

Additional issues _ _

Part V. Summary and conclusions____

Appendix:

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Message from the President transmitting Reorganization Plan No. 2.

Reorganization Plan No. 2...

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7

11

11

11

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12

Federal Home Loan Bank of Cincinnati..

National Savings and Loan_League_.

United States Savings and Loan League..

Citizens Committee for the Hoover Report_

Treasury Department____

Federal Deposit Insurance Corporation_

96

Duties and functions of the Federal Home Loan Bank Board.

98

Duties and functions of the Federal Savings and Loan Insurance

Corporation----

107

III

Senate Resolution 291..

House Resolution 541-

Questionnaire_ _ _ _

Replies to questionnaire:

Federal Home Loan Bank Board..

Bureau of the Budget..

Comptroller General