HOUSE COMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS HENRY S. REUSS, Wisconsin, Chairman THOMAS L. ASHLEY, Ohio District of Columbia STEPHEN L. NEAL, North Carolina PAUL E. TSONGAS, Massachusetts NORMAN E. D'AMOURS, New Hampshire HERMAN BADILLO, New York EDWARD W. PATTISON, New York JOHN J. CAVANAUGH, Nebraska BRUCE F. VENTO, Minnesota WES WATKINS, Oklahoma J. WILLIAM STANTON, Ohio RICHARD KELLY, Florida CHARLES E. GRASSLEY, Iowa NEWTON I. STEERS, JR., Maryland HAROLD C. HOLLENBECK, New Jersey Bloom, Hon. Robert, First Deputy Comptroller of the Currency Cleveland, King, director, National Bank of Georgia, Atlanta.. Davis, James A., Regional Director, Chicago Region, Federal Deposit Insurance Davis, John E., president, Calhoun First National Bank, Calhoun, Ga............ Guyton, Robert, president, National Bank of Georgia, Atlanta. Pickett, Charles M., Regional Counsel, Dallas Region, Federal Deposit Insur- 945 Tarleton, Donald L., Regional Administrator, Office of the Comptroller of the Currency, Atlanta, Ga.; accompanied by Dennis G. Linder, Counsel, Civil Thompson, Quinton, Regional Director, Dallas Region, Federal Deposit Insur- 945 ADDITIONAL INFORMATION SUBMITTED FOR THE RECORD LaFalce, Hon. John J., Response from the Office of the Comptroller of the Leach, Hon. Jim, Georgia, State of, statute on overdrafts Rousselot, Hon. John H.: 436 975 Correspondence With Witnesses Letter to Robert Bloom, dated September 12 and response dated September 22 632 Letter dated September 12 to National Bank of Georgia and response dated 640 Letter dated September 12 to Donald Tarleton and response dated Septem- 636 Newspaper Articles Submitted St Germain, Chairman Fernand J.: Correspondence With Witnesses Letter to King D. Cleveland, National Bank of Georgia, dated September 20, partial response dated September 30, partial response dated October Letter to James Davis, FDIC, Chicago, dated September 26 and response 1000 St Germain, Chairman Fernand J.:-Continued Letter from Robert Guyton, president, National Bank of Georgia, dated Letter to Y. A. Henderson, Calhoun First National Bank, dated September Inquiries to Correspondent Banks Page 389 439 983 Letter to the Bank of Commerce, New York City, dated September 20 and response of October 25 939 Letter to Chemical Bank, dated September 20 and response of September 28 745 Letter to the Citizens and Southern National Bank, Atlanta, dated September 20 and response dated October 28.. 874 Letter to the Continental Illinois National Bank, Chicago, dated September 20 and response dated October 21...... 809 Letter to the First National Bank of Chicago, dated September 20 and response dated October 25...... 780 Including summary of collateral 786 Letter to the Fulton National Bank, dated September 20 and response dated October 3.. 647 Letter to the United American Bank, Knoxville, dated September 20 and response dated October 5. Letter to the Manufacturers Hanover Trust Co., dated September 20 and response dated September 29.. 777 703 Letter to the United American Bank, Nashville, dated September 20 and response dated November 7 793 Affidavits of Balamut, George B., Esq., Simpson, Thatcher and Bartlett, dated August 8, 1977... 1079 Brougham, Robert, district head, Manufacturers Hanover Trust Co., dated 1216 Dickson, James Hill, Jr., former senior vice president, National Bank of 1291 Gerwin, Thomas, vice president, Manufacturers Hanover Trust Co., dated 1272 Jenkins, Llewellyn, executive vice president, Manufacturers Hanover Trust 1179 Lance, T. Bertram, Director, Office of Management and Budget, dated August 5, 1977... 1008 McKean, Robert J., Jr., partner, Simpson, Thatcher and Bartlett, dated August 1086 1093, TABLES Calhoun First National Bank (Calhoun, Georgia) correspondent bank balances with the Citizens and Southern National Bank.. Calhoun First National Bank (Calhoun, Georgia) correspondent bank balances with various banks 388 397 Loans by the Citizens and Southern National Bank, Atlanta, to T. Bertram 379 National Bank of Georgia correspondent bank balances with the Citizens and 381 National Bank of Georgia correspondent bank balances with the Continental 383 National Bank of Georgia correspondent bank balances with the First National 385 National Bank of Georgia correspondent bank balances with the First National 382 National Bank of Georgia correspondent bank balances with the Manufacturers Hanover Trust Co., (New York) 384 Dates of examination by the Comptroller of the Currency of the National Bank of Georgia and the Calhoun First National Bank.... 395 THE SAFE BANKING ACT OF 1977 TUESDAY, SEPTEMBER 6, 1977 HOUSE OF REPRESENTATIVES, SUBCOMMITTEE ON FINANCIAL INSTITUTIONS AFTERNOON SESSION (3:05 P.M.) Washington, D.C. Chairman ST GERMAIN. The subcommittee will be in order. The following is an excerpt coming from a banking study done by the Federal Reserve Board staff back in 1941 since we are talking about examinations. I think it applies today. Examinations are conducted in the interest of (1) the public, because a sound banking system is essential to the national economy and sound banks make a sound banking system; (2) the individual depositor, the safety of whose money depends on the character of the assets in which the bank's funds are invested and the way in which they are administered; (3) the stockholder, who invests in the banking business in the hope that his money will bring a return as a result of successful banking operations and will not have to be used to absorb losses. I might parenthetically state that applies to minority stockhold ers. (4) The directors, who accept grave responsibility for the direction and supervision of the affairs of the bank and to whom the examiner's report gives an independent view of its condition; and (5) the officers and operating personnel, who may find the examiner's observations helpful in the performance of their duties. Examinations also serve to protect good banks from the competition of banks that without the restraint of examination might be improperly operated and from the effects of failure of such institutions. I read that because of some of the observations made earlier today. That is why we are conducting these hearings and that is why we are interested, because of the importance of the examination and supervision of our banks. TESTIMONY OF KING CLEVELAND, DIRECTOR, NATIONAL BANK OF GEORGIA, ATLANTA, GA.; JOHN E. DAVIS, PRESIDENT, CALHOUN FIRST NATIONAL BANK, CALHOUN, GA.; AND ROBERT GUYTON, PRESIDENT, NATIONAL BANK OF GEORGIA, ATLANTA, GA. Chairman ST GERMAIN. Mr. Guyton, I see you have an opening statement which, without objection, will be inserted into the record at this point. [The opening statement of Mr. Guyton follows:] (375) |