CREDIT UNION BILLS HEARING BEFORE THE SUBCOMMITTEE ON FINANCIAL INSTITUTIONS OF THE COMMITTEE ON BANKING AND CURRENCY UNITED STATES SENATE NINETIETH CONGRESS FIRST SESSION ON S. 714, S. 965, and S. 966 BILLS TO AMEND THE FEDERAL RESERVE ACT AND 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 Gannon, J. Deane, Director of the Bureau of Federal Credit Unions__ Grant, Richard H., vice president, CUNA International, Inc.; accompanied by J. Orrin Shipe, managing director. -- ennings, Lewellyn A., chairman of the board of Riggs National Bank, and chairman of the Federal Legislative Committee of the American Bank- Robertson, J. L., Vice Chairman of the Federal Reserve Board... 22 Independent Bankers Association of America, letter to Senator Proxmire, from Stanley R. Barber, president. Member banks borrowing one or more times during year as percent of Number of member banks borrowing one or more times during year from MISCELLANEOUS BANKING AND CREDIT UNION BILLS TUESDAY, MARCH 14, 1967 U.S. SENATE, COMMITTEE ON BANKING AND CURRENCY, SUBCOMMITTEE ON FINANCIAL INSTITUTIONS, Washington, D.C. The subcommittee met at 10:05 a.m., in room 5302, New Senate Office Building, Senator William Proxmire, chairman of the subcommittee, presiding. Present: Senators Proxmire and Hickenlooper. Senator PROXMIRE. The committee will come to order. We are holding hearings today on three bills: S. 714, loans to certain officers of member banks and Federal credit unions; S. 965, Federal Reserve bank investments in foreign government obligations; and S. 966, eligible paper. These bills are the same as S. 1558, S. 1557, and S. 1559 of the last Congress with the single exception that S. 714 also includes a provision taken from S. 2330 of the last Congress increasing the amounts which Federal credit unions may lend to certain officers. S. 1557, S. 1558, and S. 1559 were reported by the committee and were passed by the Senate without objection during the last Congress. However, they were not acted on in the House. I introduced these three bills this year in accordance with the suggestion of the majority leader that committees renew action on bills which had previously been considered by the committees and the Senate. The Federal Reserve Board has again recommended the same three proposals not including, of course, the Federal credit union proposal-and without objection their letters, together with their draft bills, will be included in the record of the hearings. Favorable reports on all three of my bills have been received from the Treasury Department, and the FDIC has reported favorably on S. 714 and S. 966. These letters will also be included in the record. The other comments which have been received include a letter recommending that loans to executive officers of member banks for the purpose of financing their children's education should be increased to $10,000, not just to $5,000. Copies of these letters will also be inserted in the record. Copies of last year's hearings and the reports on these three bills last year are before us. Copies of last year's hearings and of a memorandum explaining the bills coming before this hearing were sent around to the subcommittee members last night for their information. (The bills and letters appear at the end of the hearing at page 16.) |