INTERLOCKING BANK DIRECTORATES UNDER THE CLAYTON ACT 
grant, withhold, or revoke such consent; but if they are in substantial 
competition, the Board has no discretion in the matter and must refuse 
such consent. 
When obtained—Inasmuch as the Kern amendment excepts from the 
prohibitions of the Clayton Act only those “who shall first procure the 
consent of the Federal Reserve Board,” it is a violation of the law to 
serve two or more institutions in the prohibited classes before such 
consent has been obtained. Such consent should be obtained, there- 
fore, before becoming an officer, director, or employee of more than 
one bank in the prohibited classes. Such consent may be procured 
before the person applying therefor has been elected as a class A direc- 
tor of a Federal Reserve Bank or as a director of any member bank. 
Approval or disapproval—As soon as an application is acted upon by 
the Board, the applicant will be advised of the action taken. 
If the Board approves the application, a formal certificate of permis- 
sion to serve on the banks involved will be issued to the applicant. 
Rehearing—If the Board decides that the banks are in substantial 
competition and that it cannot approve the application, it will, upon 
petition of the applicant, reconsider its decision and afford him every 
opportunity to present any additional facts or arguments bearing on 
the subject. 
Effect of permits—Permission once granted is continuing until revoked, 
and need not be renewed. 
Revocation—All permits, however, are subject to revocation at any 
time in the discretion of the Federal Reserve Board. The issuance of 
a permit to any person shall have the effect of revoking any or all 
Permits which may have been issued previously to that person. 
Permits under Section 25 of the Federal Reserve Act 
Wir the approval of the Federal Reserve Board, any director, officer, 
or employee of a member bank which has invested in the stock of any 
Corporation principally engaged in international or foreign banking 
or financial operations or banking in a dependency or insular posses- 
Sion of the United States, under the provisions of section 25 of the 
Federal Reserve Act, may serve as director, officer, or employee of any 
Such foreign bank or financial corporation. 
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