NaT10NAL BANKING UNDER THE FEDERAL RESERVE System 
state institutions are not located in the same city of over 200,000 inhabitants 
as the national bank or Edge Corporation, and do not have resources aggre- 
gating in the case of any one bank more than $5,000,000. 
-Do not prohibit a person from serving at the same time as director, officer, or 
employee of any number of national banks, provided no two of them are 
located in the same city of over 200,000 inhabitants and no one of them has 
resources aggregating over $5,000,000. 
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-Do not prohibit a person who is not a director, officer, or employee of any 
national bank or Edge Corporation from serving at the same time as officer, 
director, or employee of any number of state banks or trust companies, re- 
gardless of their locations and resources. 
7—Do not prohibit a person who is an officer or employee but not a director of a 
state bank from serving as director, officer, or employee of a national bank, 
or Edge Corporation, even though either or both of such banks have resources 
aggregating over $5,000,000, provided both banks are not located in the same 
city of over 200,000 inhabitants. 
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8—Do not prohibit a person who is an officer or employee but not a director of a 
national bank or Edge Corporation from serving at the same time as director, 
officer, or employee of a State bank, even though either or both of such banks 
have resources aggregating over $5,000,000, provided both banks are not 
located in the same city of over 200.000 inhabitants. 
-Do not apply to persons who have obtained the consent or approval of the 
Federal Reserve Board under the provisions of the Kern amendment, section 
25 of the Federal Reserve Act or the Edge Act as hereinafter provided. 
These exceptions are cumulative. 
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Permission of the Federal Reserve Board 
under Kern Amendment 
By the Kern amendment the Clayton Act now authorizes the Federal 
Reserve Board to permit any private banker or any officer, director, 
or employee of any member bank or class A director of a Federal 
Reserve Bank to serve as director, officer, or employee of not more 
than two other banks, banking associations, or trust companies com- 
ing within the prohibitions of the Clayton Act, provided such other 
banks are not in substantial competition with such private banker or 
member bank. 
Substantial competition—If the institutions involved are not in sub- 
stantial competition, the Board is authorized, in its discretion, to 
Oey 
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