A BILL TO AMEND THE SECURITIES ACT OF 1933, JUNE 4 AND 5, 1948 Printed for the use of the Committee on 78425 UNITED STATES WASHINGTON: 1948 194 CONTENTS 114 13, 85, 135 93 Black, Eugene, executive director, International Bank for Reconstruc- Foster, Roger S., solicitor, Division of Trading and Exchanges, Securities, and Exchange Commission Fulton, Wallace H., executive director, National Association of Lynch, Thomas J., acting general counsel, Treasury Department. McConnaughey, Robert K., Commissioner, Securities and Exchange Mooney, Michael E., special counsel, Division of Corporation Finance, Securities and Exchange Commission_. Nurick, Lester, office of general counsel, International Bank- Briefs, reports, statements, etc., submitted for the record by- Federal Reserve System, Board of Governors of, report.. International Bank for Reconstruction and Development: Communication from, to Secretary of the Treasury. Memorandum with regard to legality of bonds for investment by commercial banks, insurance companies, and trustees in certain 72 World Bank Seeks Exemptions from Laws Protecting Investors to Get Wider Market for Its Securities, article from Wall Street III INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SECURITIES FRIDAY, JUNE 4, 1948 HOUSE OF REPRESENTATIVES, COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE, Washington, D. C. The committee met at 10:30 a. m., Hon. Charles A. Wolverton (chairman) presiding. The CHAIRMAN. The committee will come to order. The committee has before it this morning for consideration H. R. 6443, to amend the Securities Act of 1933, the Securities Exchange Act of 1934, and the National Bank Act. (The bill referred to is as follows:) [H. R. 6443, 80th Cong., 2d sess.] A BILL To amend the Securities Act of 1933, the Securities Exchange Act of 1934, and the National Bank Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (a) (2) of section 3 of the Securities Act of 1933, as amended (U. S. C., title 15, sec. 77c), is amended by adding to the end thereof the following: "or any security issued or guaranteed by the International Bank for Reconstruction and Development;". SEC. 2. Paragraph (a) (12) of section 3 of the Securities Exchange Act of 1934, as amended (U. S. C., title 15, sec. 78c), is amended to read as follows: "(12) The term 'exempted security' or 'exempted securities' shall include securities which are direct obligations of or obligations guaranteed as to principal or interest by the United States; such securities issued or guaranteed by corporations in which the United States has a direct or indirect interest as shall be designated for exemption by the Secretary of the Treasury as necessary or appropriate in the public interest or for the protection of investors; securities which are direct obligations of or obligations guaranteed as to principal or interest by a State or any political subdivision thereof or any agency or instrumentality of a State or any political subdivision thereof or any municipal corporate instrumentality of one or more States; securities issued or guaranteed by the International Bank for Reconstruction and Development; and such other securities (which may include, among others, unregistered securities, the market in which is predominantly intrastate) as the Commission may, by such rules and regulations as it deems necessary or appropriate in the public interest or for the protection of investors, either unconditionally or upon specified terms and conditions or for stated periods, exempt from the operation of any one or more provisions of this title which by their terms do not apply to an 'exempted security' or to 'exempted securities'." SEC. 3. Paragraph seventh of section 5136 of the Revised Statutes, as amended (U. S. C., title 12, sec. 24) is amended by adding at the end thereof the following new sentence: "The limitations and restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by or guaranteed as to principal and interest by the International Bank for Reconstruction and Development: Provided, That no association shall hold obligations issued or guaranteed by the said bank as a result of underwriting, dealing, 1 |