National banking under the Federal Reserve System

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Monograph

Identifikator:: 1757542345

URN:: urn:nbn:de:zbw-retromon-135097

Document type:: Monograph

Title:: National banking under the Federal Reserve System

Place of publication:: New York

Publisher:: The National City Bank of New York

Year of publication:: 1927

Scope:: 154 S.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Investments

Collection:: Economics Books

INVESTMENTS With approval of the Act of February 25, 1925, the legal right of a national bank to engage in the business of buying and selling invest- ment securities, a right previously based on the original grant of authority to discount and negotiate “other evidences of debt” was confirmed, and the investments eligible for national bank operations were defined. The following excerpt from the act governs national bank dealings in investment securities: “***The business of buying and selling investment securities shall hereafter be limited to buying and selling without recourse marketable obligations evidencing indebtedness of any person, copartnership, association, or corpor- ation, in the form of bonds, notes and/or debentures, commonly known as investment securities,’ under such further definition of the term ‘in- vestment securities,” as may by regulation be prescribed by the Comp- troller of the Currency, and the total amount of such investment securities of any one obligor or maker held by such association shall at no time exceed 25 per centum of the amount of the capital stock of such association actually paid in and unimpaired and 25 per centum of its unimpaired surplus fund, but this limitation as to total amount shall not apply to obligations of the United States, or general obligations of any State or of any political subdivision thereof, or obligations issued under authority of the Federal Farm Loan Act.” 65

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