Foreign Investment Act of 1975

NIVER

FOREIGN BANK ACT OF 1975

HEARINGS

BEFORE THE

SUBCOMMITTEE ON FINANCIAL INSTITUTIONS

OF THE

COMMITTEE ON

BANKING, HOUSING AND URBAN AFFAIRS
UNITED STATES SENATE

NINETY-FOURTH CONGRESS

SECOND SESSION

S. 958

TO PROVIDE FOR FEDERAL REGULATION OF FOREIGN BANKS
ESTABLISHING, ACQUIRING, OPERATING, OR CONTROLLING
BANKS, BRANCHES, AND AGENCIES IN THE UNITED STATES,
AND FOR OTHER PURPOSES

69-329 O

JANUARY 28, 29, AND 30, 1976

Printed for the use of the Committee on Banking,
Housing and Urban Affairs

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1976

COMMITTEE ON BANKING, HOUSING AND URBAN AFFAIRS

WILLIAM PROXMIRE, Wisconsin, Chairman

WILLIAM PROXMIRE, Wisconsin

JOHN SPARKMAN, Alabama

JOHN TOWER, Texas

EDWARD W. BROOKE, Massachusetts

HARRISON A. WILLIAMS, JR., New Jersey JESSE HELMS, North Carolina
ADLAI E. STEVENSON, Illinois

WILLIAM R. WEBER, Counsel
(II)

George W. Mitchell, Vice Chairman, Federal Reserve Board..

Stephen S. Gardner, Deputy Secretary and Robert Gerard, Deputy

Assistant Secretary, Department of the Treasury--

THURSDAY, JANUARY 29

Thomas M. Rees, Representative in Congress from the State of California

John B. Olin, superintendent of banks, State of Oregon; accompanied by

Richard K. Lignoul, commissioner of banks and trust companies,

State of Illinois; Joseph Ciaccio, deputy commissioner of banks and

trust companies, State of Illinois; and Leonard Lapidus, first deputy

superintendent of banks, State of New York.

Douglas A. Smith, executive vice president, the Bankers' Association for

Foreign Trade; accompanied by Jack R. Jessen, secretary; Thomas L.

Farmer, counsel.

FRIDAY, JANUARY 30

Lord O'Brien of Lothbury, GBE, PC, European Bankers Federation; ac-

companied by Paul Fabre, French Bankers' Association; and Roland

Giddings, Secretary General, British Bankers' Association

Steuart L. Pittman, counsel, Institute of Foreign Bankers, Shaw, Pittman,

Potts & Trowbridge, Washington, D.C.; Paul E. Hollos, president,

Institute of Foreign Bankers and president, American Swiss Credit

Corp., New York City; George R. Bitterly, vice president, Institute of

Foreign Bankers and senior vice president, Bank of Tokyo, Ltd.,

New York City; Mario R. de Luca, vice president Institute of Foreign

Bankers and executive vice president, Banco Di Roma, New York City;

and Eizo Tajima, trustee Institute of Foreign Bankers, and managing

director and agent, Sanwa Bank, Ltd., New York City...

Donald C. Platten, New York Clearing Association, accompanied by

John F. Lee and Richard S. Simmons--

ADDITIONAL STATEMENTS AND DATA

American Banker, reprint of article titled "Nationwide Spread of BHC's:
336 Nonbank Offices of Bank America Corp. in 32 States".

Comptroller of the Currency, comments on S. 958 from James E. Smith.

Conference of State Bank Supervisors:

Article by Ross M. Robertson and Almarin Phillips titled "Optional

Affiliation With the Federal Reserve System for Reserve Purposes

Is Consistent With Effective Monetary Policies"

Letter from John B. Olin, first vice president, answering subsequent

written questions of Senator McIntyre-

European Bankers Federation, response to legislative proposals submitted

on last day of hearing---

Federal Deposit Insurance Corporation, statement of Frank Wille, Chair-

556

Federal Reserve System:

Appendix to statement of Governor Mitchell..

Page

Arthur F. Burns, Chairman, Board of Governors, answers to sub-

sequent questions from:

Legal framework of foreign bank operations in the United States -

Order approving retention of investment in Balfour, Williamson,
Inc., Export Credit and Marketing Corp., and Export Credit Corp.
and disapproving retention of investment in Drake America Corp.
and Drake America Corp. (P.R.) -

Order approving retention of investment in French American Banking

Corp., French American Capital Corp., and Locafrance-U.S. Corp.

and disapproving retention of investment in Indumat Equipment

Corp.

184

203

Order denying acquisition of Information Systems Design, Inc. -

Order denying acquisition of Tokyo Bancorp International (Houston),

Inc.

I. Introduction---

II. General position of IFB.

Golembe Associates, Inc., paper prepared for the Institute of Foreign
Bankers titled "Foreign Banking Activities in the United States and
U.S. Monetary Policy".

H.R. 12103, as introduced by Congressman Thomas M. Rees..

Institute of Foreign Bankers, index to statement:

III. Alleged and proposed discriminations..

541

1. The significance of the competitive advantage issue

varies with the type of foreign bank activities...

2. Regulatory diversity creates differences but not unfair

competition_-_-