De novo branches established. Key bank of group organized in 1945.. Total additions__. Banking offices in 20 bank holding company groups, 1934–511 Banking offices, Dec. 31, 1933_ Add: Independent banks and branches acquired (with deposits of approximately $836,601,000 at time of acquisition). De novo banks established.. 299 12 209 1 521 Deduct: Independent banks and branches discontinued upon acquisition_ Group banks and branches absorbed by other group banks and the offices discontinued _____ 45 39 Banks and branches sold or liquidated (with deposits of approximately $165,246,000 at time of sale or liquidation)_. 84 Branches discontinued... 41 Total deductions___. 209 Banking offices at Dec. 31, 1951. 2 1, 313 3 312 Net increase 1934 to 1951, inclusive.... 1 This table includes information with respect to 20 of the 31 bank holding company groups included in the table showing banking offices and deposits by States. Information is readily available regarding the 20 groups because they are subject to a degree of regulation under the present bank holding company law, whereas the other 11 are not. 2 Includes 309 banks and 1,004 branches. These banks had deposits of $18,250,115,000 at Dec. 31, 1951, and include not only banks controlled by bank holding companies but also banks which dominate certain of the respective groups or are closely associated with them. Some of the latter banks are comparatively large institutions. 3 This reflects the net expansion of the 20 groups combined. Several of these groups underwent some contraction rather than expansion in the number of banking offices during the 18-year period. Nonbanking organizations in 20 bank holding company groups, Dec. 31, 1950 1 Information as to total assets as of Dec. 31, 1950, is not readily available with respect to 10 companies; in these instances the figures are as of the nearest available dates. No balance sheet is available with respect to one company. 2 Omitting duplications. BILLS TO REGULATE BANK HOLDING COMPANIES, 1941-52 SEVENTY-SEVENTH CONGRESS S. 310. Mr. Glass (by request); January 14, 1941 (Banking and Currency). Bank Holding Company Act of 1941: No company shall own more than 10 percent of the voting shares of an insured bank or control directly or indirectly the policy of an insured bank. No insured bank shall pay a dividend if the Comptroller of the Currency or the Board of Directors of the Federal Deposit Insurance Corporation considers the dividend incompatible with the best interests of such banks or the public. No action. No hearings. No bills. SEVENTY-EIGHTH CONGRESS SEVENTY-NINTH CONGRESS S. 792. Mr. Wagner; March 26, 1945 (Banking and Currency). Provides for the regulation of existing bank holding companies and prohibits the creation of such companies hereafter. Makes it unlawful for a bank holding company (1) after 1 year to engage in any business other than managing or controlling its subsidiary banks (inapplicable to exercise of rights in connection with voting shares of nonbanking companies lawfully acquired, etc.); (2) to become the owner of voting shares of any bank if after such acquisition it would own 10 percent of the outstanding voting shares of each of two banks; (3) to acquire voting shares of any bank, or after 2 years (subject to extension) to retain any voting shares of any bank which it acquired after December 31, 1942 (except when the holding company owned 50 percent of the outstanding voting shares); (4) to acquire voting shares in any nonbanking company or to continue to own such after 2 years (except under certain conditions, as upon request of supervisory Federal or State authority, etc.); (5) to have any uninsured subsidiary bank; (6) to receive loans or extension of credit from, or sell securities or other property to, a subsidiary bank; (7) to pay dividends from any other source than net income; (8) charge unreasonable service fees against its subsidiary banks. Makes it unlawful for a subsidiary bank to consolidate or merge with another bank or arrange to acquire more than 10 percent of the assets of another bank (inapplicable to acquisitions of assets in open market for cash and not as part of a plan to bring about the liquidation, consolidation, or merger of the bank from which the assets are being acquired). Permits a bank holding company, however, to acquire or retain the voting shares of any bank, and permits a subsidiary to consolidate or merge with, or acquire assets of another bank, with official approval. Requires every bank holding company to use all net earnings over 6 percent of the book value of its own shares to accumulate a reserve fund consisting of cash and readily marketable assets in an amount equal to 12 percent of the aggregate par value of all bank shares owned by it. Also requires every such company to register with, and make reports to, the Federal Reserve Board, which shall have regulatory and investigatory powers. Provides for court review of the Board's orders. Regulates loans to bank holding companies and subsidiaries and loans to affiliates of insured banks. Requires reports from and provides for examinations of affiliates and prohibits security affiliates. Provides penalties for violations. Amends pertinent sections of the Federal Reserve Act (38 Stat. 251) and United States Code 12: 61, 161 (repealed), 221a; 26: 14 (a), 26 (d), 102 (D) (c). No action. No hearings. H. R. 2776. Mr. Spence; March 26, 1945 (Banking and Currency). Provides for the regulation of existing bank holding companies and prohibits the creation of such companies hereafter. Makes it unlawful for a bank holding company (1) after 1 year to engage in any business other than managing or controlling its subsidiary banks (inapplicable to exercise of rights in connection with voting shares of nonbanking companies lawfully acquired, etc.); (2) to become the owner of voting shares of any bank if after such acquisition it would own 10 percent of the outstanding voting shares of each of two banks; (3) to acquire voting shares of any bank, or after 2 years (subject to extension) to retain any voting shares of any bank which it acquired after December 31, 1942 (except when the holding company owned 50 percent of the outstanding voting shares); (4) to acquire voting shares in any nonbanking company or to continue to own such after 2 years (except under certain conditions, as upon request of supervisory Federal or State authority, etc.); (5) to have any uninsured subsidiary bank; (6) to receive loans or extension of credit from or sell securities or other property to a subsidiary bank; (7) to pay dividends from any other source than net income; (8) charge unreasonable service fees against its subsidiary banks. Makes it unlawful for a subsidiary bank to consolidate or merge with another bank or arrange to acquire more than 10 percent of the assets of another bank (inapplicable to acquisitions of the assets in open market for cash and not as part of a plan to bring about the liquidation, consolidation, or merger of the bank from which the assets are being acquired). Permits a bank holding company, however, to acquire or retain the voting shares of any bank, and permits a subsidiary to consolidate or merge with or acquire assets of another bank, with official approval. Requires every bank holding company to use all net earnings over 6 percent of the book value of its own shares to accumulate a reserve fund consisting of cash and readily marketable assets in an amount equal to 12 percent of the aggregate par value of all bank shares owned by it. Also requires every such company to register with, and make reports to, the Federal Reserve Board, which shall have regulatory and investigatory powers. Provides for court review of the Board's orders. Regulates loans to bank holding companies and subsidiaries and loans to affiliates of insured banks. Requires reports from and provides for examinations of affiliates and prohibits security affiliates. Provides penalties for violations. Amends pertinent sections of the Federal Reserve Act (38 Stat. 251) and United States Code 12:61, 161 (repealed), 221a; 26:14 (a), 26 (d), 102 (D) (c). No action. No hearings. Mr. Spence; April 30, 1946 (Banking and Currency). Bank Holding Company Act of 1946: Provides for the regulation of bank holding companies. A bank holding company is one which controls 10 percent or more of the voting shares of each of two or more banks (unless found by the Federal Reserve Board not to exercise control which requires regulation under this act), or a company which the Federal Reserve Board determines exercises such control over two or more banks as to require regulation in the public interest. It shall be unlawful for a bank holding company to own voting shares of a nonbanking company or to engage in any business except that of controlling subsidiary banks, after 2 years (except under certain conditions, as upon request of supervisory Federal or State authority, etc.). Requires prior approval of plans made by companies, bank holding companies, and by nonbanking or banking subsidiaries for the acquisition of bank shares or bank assets. Prohibits a bank from making extensions of credit, repurchase agreements, investments, and advances in excess of 10 percent of its capital stock and surplus to a bank holding company of which it is a subsidiary, or to another subsidiary of such bank holding company, or from accepting the obligations of such companies as collateral security for advances to any person, etc. (unless such subsidiary status was created out of bona fide debt to the bank, etc.). The Federal Reserve Board may determine the reasonableness of any service, or other charge obtained by a bank holding company or any of its subsidiaries and may order the discontinuance of all or part of any charge which it finds to be unreasonable. Requires every corporate bank holding company to use all net earnings over 6 percent of the par value of its own shares to accumulate a reserve fund in an amount equal to 12 percent of the aggregate book value of all bank shares owned by it. Noncorporate bank holding companies shall accumulate a fund as required by the Board. Also requires bank holding companies to register with, and make reports to, the Federal Reserve Board, which shall have regulatory and investigatory powers. Provides for court review of the Board's orders. Provides penalties for violations. Amends pertinent sections of the Federal Reserve Act (38 Stat. 251) and United States Code 12:61, 161, 221a; 15:80 a-3, 80 b-2; 26:14 (a) 26 (3), 102 (1) (D) (c). No action. No hearings. EIGHTIETH CONGRESS S. 829. Reported in Senate June 19, 1947. Bank Holding Company Act of 1947: Provides for the regulation of bank holding companies. Defines a bank holding company as one which controls 15 percent or more of the voting shares of each of two or more banks (unless found by the Federal Reserve Board not to exercise control which requires regulation under this act); any bank which directly or indirectly owns, controls, or holds with power to vote 15 percent of the voting shares of one or more other banks or of one bank operating one or more branches; or, a company which the Federal Reserve Board determines exercises such control over two or more banks as to require regulation in the public interest. After 2 years after the effective date of this act, it shall be unlawful for a bank holding company to own voting shares of a nonbanking company or to engage in any business except that of controlling subsidiary banks (except under certain conditions, as upon request of supervisory Federal or State authority, etc.). Plans made by companies, bank holding companies, and by nonbanking or banking subsidiaries for the acquisition of bank shares of bank assets must be approved by the Federal Reserve Board. Prohibits a bank (a) from investing its funds in, or accepting as collateral the capital stock of a bank holding company of which it is a subsidiary, or of another subsidiary of such bank holding company; or (b) from making repurchase agreements, investing its funds in, or accepting as collateral for loans the bonds of such bank holding company or subsidiary thereof, when the amount involved is in excess of 20 percent of the bank's capital stock and surplus. Service charges must be such as are found reasonable by the Federal Reserve Board. Requires every corporate bank holding company to use all net earnings over 6 percent of the book value of its own shares to accumulate a reserve fund in an amount equal to 12 percent of the aggregate book value of all bank shares owned by it. Noncorporate companies shall accumulate a fund as required by the Federal Reserve Board. Also requires bank holding companies to register with, and make reports to, the Federal Reserve Board, which shall have regulatory and investigatory powers. Provides for court review of the Board's orders. Provides penalties for violations. Amends pertinent sections of the Federal Reserve Act and the Internal Revenue Code (38 Stat. 251) and United States Code 12: 61, 161, 221a; 15: 80 a−3, 80 b−2; 26: 14 (a), 26, 27, 102, 112, 113. Reported with amendments (S. Rept. 300), vol. 93, Congressional Record 7285. Hearings, May 26, June 2, 11, 1947. (Senate Banking and Currency Committee.) H. R. 3351. Mr. Wolcott; May 6, 1947 (Banking and Currency). Bank Holding Company Act of 1947: Provides for the regulation of bank holding companies. Defines a bank holding company as one which controls 10 percent or more of the voting shares of each of two or more banks (unless found by the Federal Reserve Board not to exercise control which requires regulation under this act), or a company which the Federal Reserve Board determines exercises such control over two or more banks as to require regulation in the public interest. After 2 years after the effective date of this act, it shall be unlawful for a bank holding company to own voting shares of a nonbanking company or to engage in any business except that of controlling subsidiary banks (except under certain conditions, as upon request of supervisory Federal or State authority, etc.). Plans made by companies, bank holding companies, and by nonbanking or banking subsidiaries for the acquisition of bank shares or bank assets must be approved by the Federal Reserve Board. Prohibits a bank (a) from investing its funds in, or accepting as collateral the capital stock of a bank holding company of which it is a subsidiary, or of another subsidiary of such bank holding company; or (b) from making repurchase agreements, investing its funds in, or accepting as collateral for loans the bonds of such bank holding company or subsidiary thereof, when the amount involved is in excess of 10 percent of the bank's capital stock and surplus. Service charges must be such as are found reasonable by the Federal Reserve Board. Requires every corporate bank holding company to use all net earnings over 6 percent of the par value of its own shares to accumulate a reserve fund in an amount equal to 12 percent of the aggregate book value of all bank shares owned by it. Noncorporate companies shall accumulate a fund as required by the Federal Reserve Board. Also requires bank holding companies to register with, and make reports, to the Federal Reserve Board, which shall have regulatory and investigatory powers. Provides for court review of the Board's orders. Provides penalties for violations. Amends pertinent sections of the Federal Reserve Act (38 Stat. 251), and United States Code 12:61, 161, 221a; 15:80a-3, 80b-2; 26:14, (a), 26 (3), 102 (1) (D) (c). No action. S. 2318. Currency). EIGHTY-FIRST CONGRESS Messrs. Robertson and Maybank; July 22, 1949 (Banking and Bank Holding Company Act of 1949: Provides for the regulation of bank holding companies. Defines a bank holding company as one which controls 15 percent or more of the voting shares of each of two or more banks (unless found by the Federal Reserve Board not to exercise control which requires regulation under this act); any bank which directly or indirectly owns, controls, or holds with power to vote 15 percent of the voting shares of one or more other banks or of one bank operating one or more branches, or, a company which the Federal Reserve Board determines exercises such control over two or more banks as to require regulation in the public interest. Two years after the effective date of this act, it shall be unlawful for a bank holding company to own voting shares of a nonbanking company or to engage in any business except that of controlling subsidiary banks (except under certain conditions, as upon request of supervisory Federal or State authority, etc.). The foregoing prohibitions shall not apply to ownership of less than 5 percent of the securities of an outside company unless by order of the Board, after hearing. Plans made by companies, bank holding companies, and by nonbanking or banking subsidiaries for the acquisition of bank shares, bank assets, or branch banks must be approved by the Federal Reserve Board. Before taking any action under this act the Comptroller of Currency shall obtain a report of recommendation from the superintendent of banks of the State where the bank in question is located. Prohibits a bank (a) from investing its funds in, or accepting as collateral the capital stock of a bank holding company of which it is a subsidiary, or of another subsidiary of such bank holding company; or (b) from making repurchase agreements, investing its funds in, or accepting as collateral for loans the bonds of such bank holding company or subsidiary thereof, when the amount involved is in excess of 20 percent of the bank's capital stock and surplus. Service charges must be such as are found reasonable by the Federal Reserve Board. Requires every corporate bank holding company to use all net earnings over 6 percent of the book value of its own shares to accumulate a reserve fund in an amount equal to 12 percent of the aggregate book value of all bank shares owned by it. Noncorporate companies shall accumulate a fund as required by the Federal Reserve Board. Also requires bank holding companies to register with, and make reports to, the Federal Reserve Board, which shall have regulatory and investigatory powers. Provides for court enforcement of the Board's orders. Provides penalties for violations. Amends pertinent sections of the Federal Reserve Act and the Internal Revenue Code which refer to the basis for tax purposes of the assets forced to be transferred under this act (38 Stat. 251) and United States Code 12:61, 161, 221a; 15:80a-3, 80b-2; 26:14 (a) 26, 27, 102, 112, 113. No action. Hearings, March 1-23, 1950 (Senate Banking and Currency Committee). Bank Holding Company Act of 1949: Provides for the regulation of bank holding companies. Defines a bank holding company as one which controls 15 percent or more of the voting shares of each of two or more banks (unless found by the Federal Reserve Board not to exercise control which requires regulation under this act); any bank which directly or indirectly owns, controls, or holds with power to vote 15 percent of the voting shares of one or more other banks or of one bank operating one or more branches; or, a company which the Federal Reserve Board determines exercises such control over two or more banks as to require regulation in the public interest. Two years after the effective date of this act, it shall be unlawful for a bank holding company to own voting shares of a nonbanking company or to engage in any business except that of controlling subsidiary banks (except under certain conditions, as upon request of supervisory Federal or State authority, etc.). The foregoing prohibitions shall not apply to ownership or less than 5 percent of the securities of an outside company unless by order of the Board, after hearing. Plans made by companies, bank holding companies, and by nonbanking or banking subsidiaries for the acquisition of bank shares, bank assets, or branch banks must be approved by the Federal Reserve Board. Before taking any action under this act the Comptroller of Currency |