NaTioNAL BANKING UNDER THE FEDERAL RESERVE SYSTEM 
EE —————— A A ———— nt cr = me ee ee ya WRT LY el nn NY aE 
Such application shall specify the name and capital of the banking association filing 
it, the powers applied for, and the place or places where the banking or financial 
operations proposed are to be carried on. The Federal Reserve Board shall have power 
to approve or to reject such application in whole or in part if for any reason the granting 
of such application is deemed inexpedient, and shall also have power from time to time 
to increase or decrease the number of places where such banking operations may be 
carried on. 
Every national banking association operating foreign branches shall be required to 
furnish information concerning the condition of such branches to the Comptroller of 
the Currency upon demand, and every member bank investing in the capital stock of 
banks or corporations described above shall be required to furnish information con- 
cerning the condition of such banks or corporations to the Federal Reserve Board 
upon demand, and the Federal Reserve Board may order special examinations of the 
said branches, banks, or corporations at such time or times as it may deem best. 
Before any national bank shall be permitted to purchase stock in any such corpora- 
tion the said corporation shall enter into an agreement or undertaking with the Federal 
Reserve Board to restrict its operations or conduct its business in such manner or 
under such limitations and restrictions as the said board may prescribe for the place 
or places wherein such business is to be conducted. If at any time the Federal Reserve 
Board shall ascertain that the regulations prescribed by it are not being complied 
with, said board is hereby authorized and empowered to institute an investigation of 
the matter and to send for persons and papers, subpoena witnesses, and administer 
oaths in order to satisfy itself as to the actual nature of the transactions referred to. 
Should such investigation result in establishing the failure of the corporation in ques- 
tion, or of the national bank or banks which may be stockholders therein, to comply 
with the regulations laid down by the said Federal Reserve Board, such national 
banks may be required to dispose of stock holdings in the said corporation upon reason- 
able notice. 
Every such national banking association shall conduct the accounts of each foreign 
branch independently of the accounts of other foreign branches established by it and 
of its home office, and shall at the end of each fiscal period transfer to its general ledger 
the profit or loss accrued at each branch as a separate item. 
Any director or other officer, agent, or employee of any member bank may, with the 
approval of the Federal Reserve Board, be a director or other officer, agent, or employee 
of any such bank or corporation above mentioned in the capital stock of which such 
member bank shall have invested as hereinbefore provided, without being subject to 
the provisions of section eight of the Act approved October fifteenth, nineteen hundred 
and fourteen, entitled “An Act to supplement existing laws against unlawful restraints 
and monopolies, and for other purposes.”! 
Banking Corporations Authorized to do Foreign Banking Business 
Added by act of Dec. 2}, 1919 (41 Stat., 878, chap. 18); amended by act approved 
Feb. 27, 1921 (41 Stat., 1145, chap. 73); act approved June 14, 1921 (42 Stat., 28, 
chap. 22). 
1The Clayton Act. 
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