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 aggregating
 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.

5

-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, regardless
 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.

6-8—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.

0

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 coming
 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 substantial
 competition, the Board is authorized, in its discretion, to

Oey

“4 ]