staff of the Board's Auditor, and to a review and evaluation of the internal audits of the other activities supervised by the Home Loan Bank Board. Management of Banks The management of each Federal Home Loan Bank is vested in a board of 12 directors, all of whom shall be citizens of the United States and bona fide residents of the Federal Home Loan Bank District in which such Bank is located. Four of such directors are appointed by the Home Loan Bank Board for terms of 4 years and 8 are elected by the member institutions for terms of 2 years. The terms of the appointed directors are arranged to permit the expiration of but one term each year. The terms of half of the elected directors expire annually. Annual elections of directors are conducted by the Home Loan Bank Board in accordance with its prescribed regulations. A list of directors and officers as of December 31, 1953, follows: FEDERAL HOME LOAN BANKS Directors and officers as of December 31, 1953 BOSTON DIRECTORS Kenneth C. M. Sills (public interest). OFFICERS Herbert N. Faulkner, president. Beatrice E. Holland, assistant secre- NEW YORK DIRECTORS George MacDonald1 (public interest). 1 Chairman. 'Vice chairman. Francis V. D. Lloyd (public interest). OFFICERS Nugent Fallon, president. Denton C. Lyon, vice president and secretary. Harold B. Diffenderfer, vice president and treasurer. Joseph F. X. O'Sullivan, assistant secretary. PITTSBURGH DIRECTORS Ernest T. Trigg1 (public interest). Arthur B. Koontz (public interest). Directors and officers as of December 31, 1953-Continued J. Curran Conway, president and sec- L. F. Nolan, assistant treasurer. retary. Ennis M. Oakes, vice president. 1 Chairman. Vice chairman. E. M. Jenness, assistant secretary. E. E. Pearson, assistant secretary. Section 3 FEDERAL SAVINGS AND LOAN INSURANCE CORPORATION Introduction The creation of the Federal Savings and Loan Insurance Corporation in 1934 provided a secondary source of safety for investments in savings and loan associations. The confidence of the public in the insurance principle has not only increased the flow of savings into these institutions, but, equally important, has made additional funds available for financing the Nation's homes. From time to time over the years, changes in the basic law have been made in response to the increasing demand for insurance and to put into effect the adjustments suggested by operating experience. Briefly, the major amendments since the creation of the Corporation have reduced the annual premium payments by insured institutions from one-fourth of 1 percent of share and creditor liabilities to one-eighth of 1 percent in 1935 and to one-twelfth of 1 percent in 1950; have extended the term for the accumulation of a minimum 5 percent insurance reserve by insured institutions from 10 to 20 years; have increased the maximum protection from $5,000 to $10,000 for each investor; have provided that the Corporation may pay insured accounts in cash when an insured association is declared in default and placed in liquidation; have provided for the systematic retirement of the Corporation's capital stock now held by the United States Treasury; and have authorized the Corporation to borrow from the United States Treasury such funds as may be needed for purposes of paying insurance, up to $750,000,000 outstanding at any one time. Insurance Coverage Insured associations are located in every State in the United States, the District of Columbia, Puerto Rico, Alaska, and Hawaii. At the end of 1953, these institutions held 88 percent of the assets of all savings and loan associations in the country. A net increase of 132 in the membership during the year brought the total number of savings associations offering the benefits of insurance to 3,304 at the end of 1953. Federal associations, for which insurance is mandatory, accounted for 1,604 of the total membership and State-chartered institutions that had qualified for insurance numbered 1,700. |