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Foreign Operations of U.S. Banks - General (1)
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Foreign Operations of U.S. Banks - General (1)
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Arthur F. Burns Papers
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The original documents are located in Box B49, folder "Foreign Operations of US Banks (1)" of the Arthur F. Burns Papers at the Gerald R. Ford Presidential Library. Copyright Notice The copyright law of the United States (Title 17, United States Code) governs the making of photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections. Works prepared by U.S. Government employees as part of their official duties are in the public domain. The copyrights to materials written by other individuals or organizations are presumed to remain with them. If you think any of the information displayed in the PDF is subject to a valid copyright claim, please contact the Gerald R. Ford Presidential Library. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE: June 14, 1971 TO: CHAIRMAN BURNS FROM: ROBERT C. HOLLAND Attached is a memo from our office chiefly responsible for regulating foreign branches, Mr. Dahl, answering to two questions you raised with me about Nassau Branches: (1) What reasons have banks given for wanting them, and (2) What country's taxes are avoided by having a Nassau Branch? FORD & GERALD LIBRARY BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date June 14, 1971 To Mr. Holland Subject: Nassau branches From Frederick R. Dahl FRN The following may be helpful in responding to the questions which I understand the Chairman has asked you about Nassau branches. Reasons given for Nassau branches A. Banks without foreign branches have stressed three factors: 1. The need for a foreign facility to permit avoidance of the VFCR constraints on the development of their international business. The banks have been generally new to the conduct of an international business, a business which they have sought to develop as a defensive measure against the competitive inroads of the very large banks with well established inter- national facilities. The quotas and other VFCR restrictions limit the potential of these banks to develop that business. Also, some of their corporate customers need access to off- shore funds because of OFDI requirements. 2. Access to Eurodollar borrowings for domestic liquidity pur- poses. This factor was of course far more important during the period of severe domestic monetary restraint than now, but (A banks still cite the potential use of Nassau branches for this purpose. The advantage of having a foreign branch for FORD & LIBRARY 9ERALD -2- this purpose was greatest prior to the Board's Eurodollar regulations, but the structure of those regulations also provided an incentive for using a foreign branch to obtain these funds rather than to borrow directly from a foreign bank. 3. A Nassau branch is inexpensive. Since these banks have a relatively small international busi- ness, they do not believe that the expense of a full-scale foreign branch is warranted for the type and volume of busi- ness to be conducted. A common estimate for startup and overhead expenses of a London branch is $500,000 and, in addition, a substantial staff would have to be recruited. By contrast, fees for a Nassau shell branch are about $10,000 to $15,000 per year. In addition, some banks have cited the attraction of the Bahamas as a tax haven for their foreign customers, particularly from Latin America. That attraction will be enhanced, they believe, if the withholding pro- visions of the Foreign Investors Tax Act come into force. B. Banks with foreign branches in other locations have sought to establish a Nassau branch principally to avoid double taxation of income derived in their London branch. By booking in Nassau loans made to U.S. residents and others, the income of which is considered by the I.R.S. as "U.S. source income," the bank is only liable for U.S. income tax. If the loans were booked in London, the income would also be sub- ject to U.K. income tax. GERALD FORD LIBRARY -3- Besides this tax reason, some of these banks also look to the Nassau branch as a means of obtaining access to tax-haven funds and as a defensive measure against possible losses of deposits if the withholding tax provisions of the Foreign Investors Tax Act come into force. Whose taxes are being avoided in Nassau? The "tax issue" is described in detail in the staff memo- randum of October 22, 1970, as it relates to the banks themselves and as it relates to their foreign customers. As to the banks themselves, a Nassau branch affords no opportunity for them to avoid U.S. taxes. As branches, all their in- come is consolidated with the income of U.S. offices and subject to U.S. taxes. What a Nassau branch permits a bank to do is to reduce its overall tax liabilities by reducing taxes paid to foreign govern- ments. By reducing taxes paid to foreign governments and the credits for such payments against the bank's U.S. tax liability, the amount of taxes paid to the United States may actually be increased. As to the customers of the banks, again there is reason to believe that it is largely foreign taxes that are being avoid. Pro- spectively, if the withholding tax provisions of the Foreign Investors Tax Act come into force, deposits might be shifted from U.S. offices to Nassau to avoid U.S. taxes. That shifting might. also be prompted by fears that information on the depositor's earnings in the United States would be supplied to the depositor's own government. is FURU GERALD LIBRARY FR 468 (Rev. 3-63) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MEMO Date 9-1-71 Time Chairman Burns To: From: Mr. Fry Tel. No. Ext. Please call For your approval Returned your call \ For your information Will call again Note and return Phone me re attached For comments and suggestions See me re attached Preparation of reply MESSAGE: FORDO is GERVID LIBRARY BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date September 2, 1971. To Governor Brimmer Subject: Classification of loans From Edward R. Fry ERt to Japanese trading companies. In response to your question at the Board briefing last Friday, we have inquired about the classification of Japanese trading companies in business loans at several large banks in New York City, Chicago, and San Francisco. These contacts indicate that the largest share of such loans are reflected in banker's acceptances. In addition, some loans to the Japanese companies have been classified in "foreign commercial and industrial loans," and some have been classified in the wholesale trade category. According to the instructions for the weekly report of business loans by industry, "foreign C&I loans are defined as those made to any firm domiciled outside the U.S. or organized under the laws of a foreign country, except branches and agencies thereof located in the U.S." Foreign-owned firms domiciled in the U.S. would be classified inthe appropriate industry category with other domestic borrowers. While some of the banks indicated that some loans were classified as foreign and some as wholesale trade, these informal contacts did not establish whether the banks were correctly classifying according to the domicile rule. Two major banks in New York City had classified about $50 million of loans to Japanese companies as domestic, in the wholesale trade category. These two banks apparently accounted for a large part of the increase in loans to wholesale firms (see attached table). They stated that small amounts also had been reported as foreign C&I loans. A third major New York bank seemed confused about the treatment of such loans, but this bank did identify a large amount of banker's acceptances ($173 million), reported in the week ending August 18, as representing loans to Japanese trading companies. These acceptances, reportedly, were to be on the bank's books for one week. 1/ One major New York bank refused to comment on the composition of its data in the absence of a formal request from the Board. 2/ The net decline in acceptances at New York City banks in the week ending August 25 was only $49 million. Normal data contacts with this national bank are through the bank's controller, and the New York FRB frequently has difficulty in checking data or getting additional information. The bank has recently written Chairman Burns concerning burden of reporting. BERALD FORD, LIBRARY TO: Governor Brimmer -2- Two large banks in Chicago had included a total of $34 million of loans to Japanese trading companies as foreign business loans. It was not determined whether these companies were actually domiciled outside the U.S., consistent with the definition of foreign C&I loans. In San Francisco, most of the increase in business loans was in banker's acceptances. These loans were mainly to foreign companies, mostly Japanese. Also, a small amount of loans to Japanese firms were classified in the wholesale trade category (less than $1 million each for two companies). The San Francisco Reserve Bank commented that most of the increase reported in foreign C&I loans reflected repurchase of a large loan that one bank had previously sold. This was considered unrelated to the large credit extensions to foreign-owned companies and foreign banks. We also received comments that a large amount of Japanese financing was reflected in interbank loans, consistent with your survey last week. Most of this was reported as "loans to foreign banks." The San Francisco Reserve Bank indicated that loans to domestic commercial banks in the Twelfth District more than doubled in the week of August 18, reflecting mainly increases in loans to American agencies of foreign banks. As the table indicates, domestic interbank loans increased somewhat more than usual for this period, but not as much as loans to foreign banks. The distinction between loans to foreign agencies and loans to foreign banks is intended to be on the basis of domicile, as in the case of business firms. However, the instructions for reporting these interbank loans are not clear on this point, so the reported increase in loans to foreign banks could include some misclassification of loans to agencies. In either case, such loans could serve as a further financing source for Japanese companies as lending limits under direct lines were reached. Attachment. cc: Chairman Burns Governor Robertson Governor Mitchell R. FORD Governor Daane Governor Maisel GERALD Governor Sherrill LIBRARY CHANGES IN LOANS AT WEEKLY REPORTING BANKS (In millions of dollars) 1971 Four Weeks of August Aug. 4 Aug. 11 Aug. 18 Aug. 25 1971 1970 1969 1968 1967 Business loans: Foreign business concerns 50 9 221 88 368 11 -58 -- 1 Wholesale trade 19 -18 51 57 109 -25 -37 -28 -58 Bankers' acceptances 33 - 2 454 42 527 202 -102 -40 16 Loans to foreign commercial banks 58 115 701 92 966 -28 -117 30 -13 Loans to domestic commercial banks* 3 18 206 66 293 -23 -44 246 - 4 * Agencies and branches of foreign banks are believed to be classified as domestic commercial banks for purposes of this item; however, reporting instructions are not explicit on this point. Prior to June 1969, loans to banks include Federal funds; subsequent to that date, Federal funds are reported separately. R. FORD GERALD LIBRASA BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM DATE: October 21, 1971 TO: MRS. MALLARDI FROM: ROBERT C. HOLLAND FORD is LIBRARY GERALD The Chairman wants this thing dug out and shown to him because he might want to send it to the President. If you can't find his, you can use mine - or secure an additional one from Sam Pizer's office. Attachment - 10/18/71 memo from Mr. Pizer to Mr. Holland re Survey of banks covering foreign trans- actions since August 15 transmitting report of 10/18/71 and 10/1/71 statement on Survey of United States Commercial Banks Regarding Inter- national Payments Experience Since August 15. Soul Hollaw - Sind cpin, in my name, L Credy, Volcher, McCrailer, Pitasm, Samus, 5/4/172 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date October 18, 1971. To Mr. Holland Subject: Survey of banks covering foreign From Samuel Pizer SIP transactions since August 15. The attached memorandum by Mr. Dooley contains the early results of our recent survey of commercial banks concerning the effect on U.S. foreign trade and payments of the measures taken on August 15. A more detailed report is being prepared. Attachment FORD is LIBRARY 076830 October 18, 1971 The following note summarizes the results from an informal survey conducted by the System on the effects on U.S. international trade and payments of measures taken August 15. The questionnaire (attached) was sent to over 75 commercial banks in the 12 Federal Reserve Districts during the first week in October. Almost all of the respondents indicated that U.S. exports had not been significantly disrupted since August 15. The banks polled reported that foreigners, with the exception of the Japanese, experienced no difficulty in making dollar payments, nor have U.S. exporters had difficulty disposing of foreign currency receipts from exports not paid for in dollars. Some difficulty was reported in covering the dollar-value of future yen receipts by exporters in the San Francisco District, as no forward market for yen was available over the period covered by the poll. This situation has probably improved slightly in the past week since the Bank of Japan has actively attempted to establish a forward market in its currency. A few of the respondents noted that dollar payments by foreigners to U.S. exporters were being delayed, probably in anticipation of further declines in the dollar's exchange value. Reporting banks from all districts, totaling over 3/4 of the respondents, indicated that imports had been either significantly or very significantly disrupted since August 15. Most banks indicated FORD & IBRARY GERALD -2- that the Pacific coast dock strike was a very important cause of import disruption and had tended to make it difficult to separate the effects of the import surcharge and exchange market developments. However, some opinions were widely held. About two-thirds of the banks polled reported that the import surcharge has had a significant impact on imports. A few banks observed that the temporary nature of the measure, rather than the increased cost of imports, had been important in that this feature had generated considerable uncertainty, and had led to a delay in placing import orders. This was particularly troublesome for importers who have to make advanced pricing decision (for example Sears' Christmas catalogue). Another widely reported tendency was for U.S. import contracts which had normally been denominated in dollars to be denominated in foreign currencies. A shift toward yen-denominated contracts was particularly noticed, although a similar but weaker trend was reported for the German mark, sterling, Netherlands guilder and others. Estimates by the reporting banks as to the level of foreign currency- denominated contracts vary over a wide range, with most banks reporting about a three-fold increase in such transactions. Other devices designed to shift exchange risk to U.S. importers included separate contracts which would adjust the amount of dollar payments upwards to compensate for losses in the dollars' exchange value, GERALD FORD LIBRARY -3- and refusal on the part of foreign exporters to accept dollar letters of credit except on a sight basis. These devices were particularly evident in contracts for imports from Japan. U.S. importers also reported difficulties in obtaining yen and French francs in order to make payment for imports. In both these currencies the importer must supply proof that he needs the funds for commercial payments, and at times the red tape involved proved a significant difficulty. U.S. importers reported that forward cover on their future foreign currency payments was not available for yen payments and expensive for other currencies. In addition, many importers who were unfamiliar with forward markets before August 15 had difficulty adjusting to the increased uncertainty, but that in general, forward markets for currencies other than the yen were operating satisfactorily, although cover was more expensive than had generally been the case before August 15. In conclusion it appears that imports have been harder hit than exports since August 15, and, while the effects of exchange uncertainty have not been insignificant, a full appraisal of their impact must wait upon the removal of other disturbances such as the dock strike and the surcharge. GEBALD FORD LIBRARY October 1, 1971. Survey of United States Commercial Banks Regarding International Payments Experience Since August 15 The following questions are designed to discover how the President's actions of August 15, and the actions that have followed in foreign countries, have affected U.S. exports and imports. To expedite the inquiry, at this stage commercial banks are asked to report only on the basis of their present impressions without making special efforts to consult with customers: (1) Have your customers reported, or have you noted, that they have experienced unusual difficulties in effecting export trans- actions since August 15, in obtaining payment, in obtaining new orders, or in executing related foreign exchange transactions. If so, which of the following factors are (significant, moderately significant, insignificant): (a) Difficulty on the part of foreigners (specify country) in making payments to U.S. exporters in dollars. (b) Difficulty on the part of U.S. exporters in disposing of foreign currency proceeds (specify currency). (c) Difficulty in obtaining forward cover for exchange risk when exports are invoiced in foreign currencies (specify currency). (d) Difficulty on the part of foreigners in making payments because of exchange control or other payments regulations established or reinforced abroad (specify country) after August 15. FORD is LIBRARY 076835 -2- (e) Payment delays by foreign importers on U.S. dollar denominated orders. (f) Other (specify). (2) Have your customers reported or have you noted that they have experienced unusual difficulties in effecting import transactions since August 15, either in making payments or deciding to place orders? If so, which of the following factors are significant (very, moderately, insignificant): (a) The import surcharge. (b) An increasing tendency for U.S. imports to be invoiced in foreign currencies. What is your estimate of the proportion invoiced in foreign currencies before August 15, and the proportion now invoiced in foreign currencies, i.e., has the proportion changed significantly? (c) Difficulty in obtaining foreign currencies (specify curren- cies and type of difficulty) to effect current transactions, or diffi- culty on the part of foreign exporters in converting dollars to their own currencies (specify country). (d) Difficulty in covering foreign exchange risks in the forward market (specify currencies). (e) Other (specify). (3) What is your estimate of the proportion of (a) the export and (b) the import business transacted through your bank that has been significantly disrupted by actions taken since August 15? FORD is LIBRARY 076839 -3- (4) Have the difficulties you have identified -- with respect to either export or import transactions -- tended to worsen or improve in the past week or two? (5) Do you have other comments regarding developments in foreign exchange markets since August 15, or on other factors affecting U.S. exports or imports since then, such as changes in terms of financ- ing or payment? FORD : LIBRARY GERALD FR 468 (Rev. 3-63) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MEMO Date 1-27-72 Time To: CHAIRMAN BURNS From: FREDERICK R. DAHL Tel. No. Ext. Please call For your approval Returned your call X For your information Will call again Note and return Phone me re attached For comments and suggestions See me re attached Preparation of reply MESSAGE: FORD is LIBRARY GERVIL CONFIDENTIAL (FR) FORD ASSETS AND LIABILITIES OF SECTION 25 AND 25(a) CORPORATIONS ENGAGED IN FOREIGN BANKING AND FINANCING GERALD LIBRARY As of June 30, 1971 (Amounts in thousands of U.S. dollars) Cash Other & Due U.S. Obligations Bonds Cust. Liab. TOTAL TOTAL From Govt. of other Notes Equities on Fixed Other ASSETS Total (Time Liab. on Other Valuation Reserve Undivided Contingency CAPITAL Section 25(a) Corporations Banks Sec. Govt's etc. (at book value) Loans acceptances Assets Assets LIAB Deposits Deposits) Borrowings acceptances Liab. Loans Sec. Capital Surplus Profits Reserves ACCOUNTS Allied Bank International 176,299 401 5,916 166 140,498 13,856 2,305 4,611 344,052 281,320 155,982 6,592 13,923 3,820 860 27,000 9,525 1,012 37,537 American National Overseas Corp. 2,278 60 3 2,341 2,000 250 91 2,341 Bamerical International Financial Corp. 15 2,074 18,933 3.145 134 24,301 14,092 197 10,000 (331) 343 10,012 Bank of America 1,146,818 18 9,812 43,564 358,013 67,715 4,527 4,811 1,635,278 1,470,647 131,323 1,851 70,060 8,772 7,048 5 34,000 16,000 5,071 21,824 76,895 Bank of America International of Chicago 377 2,098 165 208 2,848 755 400 93 2,000 2,000 Bank of America International of Florida 1,318 8,604 250 122 223 10,517 8,104 7,166 250 163 2,000 2,000 Bank of Boston International 44,556 1,003 10 37,768 494 115 1,047 84,993 70,729 41,893 658 557 1,397 554 5,000 5,000 1,098 11,098 Bank of California International 39,152 543 5,358 1,083 73 25 46,234 40,393 65 1,600 1,304 389 2,000 500 48 2,548 Bank of New York International Corp. 27 1,492 250 490 31 2,290 71 2,000 219 2,219 Bankers International Corp. 1,645 14,205 283 746 16,879 383 97 5,000 10,525 774 100 16,399 Boston Overseas Financial Corp. 56 8,306 1,383 31 9,776 3,312 25 1,014 3,000 2,000 425 5,425 Central Cleveland International Bank 25,656 250 900 4,285 953 37 32,081 26,722 1,040 953 108 17 4,250 31 4,281 Chase Manhattan Int'l Investment Corp. 213 500 627 10,235 5,523 13 1,785 18,896 446 243 150 262 1,100 173 6,000 10,000 765 16,765 Chase Manhattan Int'l Banking Corp. 1,109 5,145 3,363 155 218 9,990 1,773 3,363 48 2,000 3,000 (194) 4,806 Chase Manhattan O'seas Banking Corp. 4,219 3,800 89,941 99 1,084 99,143 47,606 1,320 3,560 11,810 24,211 10,636 46,657 Chemical International Banking Corp. 15 2,964 2,736 18 5,733 242 71 4,000 1,000 420 5,420 Chemical International Finance, Ltd. 51 1,375 6,644 27,761 20 1,078 36,929 28,835 20 738 1,519 5,000 817 5,817 Citizens and Southern International Bank 788 130 7,624 2,869 64 456 11,931 6,243 3,159 2,869 333 92 2,000 200 194 2,394 Citizens Southern International Corp. 38 3,759 31 128 3,956 65 13 2,000 2,000 (122) 3,878 Continental Bank International 1,261,026 150 201 107,465 20,718 103 3,919 1,393,582 1,333,661 28,033 11,000 21,225 4,747 1,520 10,000 8,000 3,429 21,429 Continental International Finance Corp. 122 217 33,427 2,241 20,212 15 56,234 12,968 20,212 3,339 37 500 12,000 12,000 (4,822) 19,178 Crocker International Bank 109,167 21,869 8,810 275 900 141,021 105,211 1,235 8,810 15,477 123 2,000 8,000 1,400 11,400 Crocker International Corp. 1 175 1,199 1,889 33 3,297 894 77 38 2,000 288 2,288 Crocker Int'l Development Corp. 10 2,355 676 3 3,044 31 3,000 13 3,013 Detroit Bank and Trust International 7,071 24,331 1,278 32,680 18,555 18,555 986 192 12,000 947 12,947 The Fidelity International Corp. 6 201 3,969 1,207 2 58 5,443 2,106 21 24 2,500 625 167 3,292 Fidelity International Bank 21,636 2,454 13,261 7,536 104 959 45,950 23,974 38 5.702 7,663 1,423 304 3,000 4,051 (167) 6,884 First Atlanta International Corp. 254 1,016 1,270 1,270 1,270 First Chicago Int'l Banking Corp. 204,512 22,602 6,452 199 363 234,128 214,774 162 1,100 6,456 290 472 5,000 5,000 1,036 11,036 First Chicago Int'l Finance Corp. 15 100 1,980 750 129 2,974 136 2,000 763 75 2,838 First Dallas Int'l Banking Corp. 15 200 1,962 2 2,179 11 20 2,000 148 2,148 First National City Bank (Interamerica) 2,196 2,950 4 48 5,198 3,257 1,926 4 6 2,000 (69) 1,931 First National City Bank (Int'l LA) 384 2,812 2,256 49 31 5,532 1,135 4 248 2,256 34 2,000 (141) 1,859 First National City Bank (Int'l S.F.) 5,772 41,257 631 250 327 48,237 34,697 17,674 581 631 1,340 17 10,000 971 10,971 First National City O'seas Investment Corp. 1,559 48,831 1,699 45 52,134 340 25,000 25,000 1,794 51,794 First Pennsylvania O'seas Finance Corp. 65 606 4,135 49 4,855 400 25 3,750 250 203 227 4,430 Franklin International Corp. 11 5,663 1,095 50 6,819 64 5,500 1,100 155 6,755 Girard International Bank 243,124 709 3,090 1,127 170 45 248,265 243,357 200 1,127 46 3,000 535 3,535 Girard International Investment Corp. 46 1,027 1,656 16 2,745 107 2,000 500 138 2,638 Indiana National Overseas Corp. 199 1,101 700 2,000 2.000 International Bank of Commerce 4,165 9,304 300 230 414 International Bank of Detroit 14,413 5,950 505 3,238 4,429 300 3,785 107 131 13,775 4,665 2,500 500 2,524 458 38 316 25,570 3,496 Irving Interamerican Bank 578 109 38 18,000 4,500 2,923 Irving International Financing Corp. 578 25,423 106 124 30 271 5,180 500 48 9 548 Manufacturers-Detroit International Corp. 5,690 194 184 9 250 1,699 1,455 5,000 497 115 3,713 5,497 13 97 145 2,000 1,000 458 3,458 Manufacturers Hanover Int'l Banking Corp. 2,384 3,797 11 Manufacturers Hanover Int'l Finance Corp. 6,192 937 34 100 11,004 5,000 500 628 30 286 Marine Midland International Corp. 12,327 6,158 1,643 155 8,108 74 251 10,000 1 2,172 129 10,206 12,172 Mellon Bank International 417 706,867 251 268 12 26,765 35,002 5,000 1,750 3,317 946 57 662 Mercantile International Corp. 771,103 734,759 9,263 22,180 1,750 156 134 1,316 3,684 7,880 1,970 2,274 551 5,551 12,124 273 5,000 278 5,278 Morgan Guaranty Int'l Banking Corp. 24 1 17,028 Morgan Guaranty Int'l Finance Corp. 207 17,260 1,060 1,700 236 38 135 14,534 12,000 6,000 1,105 271 (3,916) 15,903 15,189 Nat'l Bank of Commerce of Seattle (Int'l) 33,289 177 86 1,050 2,422 11,000 3,726 718 125 54 (50) National City Cleveland Int'l Corp. 36,694 32,855 150 14,676 718 85 1 6 773 2,000 1,000 30 1 775 3,030 New England Merchant Bank Int'l 2,398 3 467 700 72 15 772 2,880 26 2,000 500 354 2,854 North America International Corp. 5 105 1,550 The Northern Trust Int'l Banking Corp. 1,660 127,307 654 11,677 237 1,300 325 35 57 19 Northwest International Bank 139,951 137,022 1,660 93 237 1,150 35 331 1,112 4,226 2,000 500 101 56 7 84 7,003 131 61 2,657 Philadelphia International Bank 208,182 1,566 147 103 12,453 4,000 1,000 1,392 56 387 222,414 214,983 5,056 Philadelphia International Investment Corp. 263 1,405 606 157 1,231 9,791 4,143 4,000 1,000 263 60 433 15,921 5,263 11,443 71 100 420 3,500 387 3,887 Pittsburgh International Finance Corp. 24 1,736 250 400 26 2,436 Provident International Corp. 57 7 250 20 1,054 3,250 2,000 409 47 2,409 Republic International Corp. 4,658 1,378 720 150 28 538 67 3,250 250 410 17 Seattle-First International Corp. 2,150 3,910 13 200 2,012 2,000 150 40 2,265 2,150 Security Pacific International Bank 566,200 15 17 2,890 26,025 3,450 2,000 233 171 203 598,939 577,771 2,233 1,190 112 3,459 196 114 12.800 3.200 1.287 17.287 Security Pacific International Corp. 13 277 5,725 2 6,017 6,000 17 6,017 Shawmut International Corporation 4 2,285 536 49 2,874 34 2,000 500 340 2,840 Shorehaven Bank International 2 786 26 75 2 2 893 900 (7) 893 Society International Corp. 10 305 75 130 8 528 13 500 15 515 State Street Bank Boston (Int'l) 595 263 6,431 896 32 442 8,659 2,867 245 1,575 1,058 405 98 2,000 500 156 2,656 State Street Bank International 7 55 3,174 3,236 18 3,200 18 3,218 Union International Bank 206 561 1,350 47 2,164 84 2,000 80 2,080 United California Bank International 218,944 280 3,528 20,854 10,260 157 732 254,755 224,313 100 8,000 10,260 744 608 8,000 2,000 830 10,830 United States National Bank Int'l Corp. 2,032 952 113 52 3,149 451 13 2,000 500 185 2,685 United States Trust Co. Int'l Corp. 1,834 344 527 5 2,710 21 2,000 500 189 2,689 United Virginia Bank International 1,137 482 501 2,731 3,332 29 29 8,241 2,078 300 3,332 39 22 2,100 210 144 16 2,470 Virginia Commonwealth International 1,538 855 2 16 2,411 40 5 2,000 25 341 2,366 Wachovia International Investment Corp. 1,360 140 1,401 1,214 38 4,153 196 92 26 2,000 1,250 589 3,839 Wells Fargo Bank International Corp. 204,529 200 200 12,208 21,271 13,206 419 619 252,652 217,392 3,724 2,200 13,206 1,256 371 13,500 3,000 1,727 18,227 TOTALS Section 25(a) Corporations 5,390,167 11,164 2,857 46,333 449,293 1,038,342 194,141 10,207 945 7,174,449 6,035,874 417,606 195,284 197,659 52,559 16,121 7,049 416,710 187,045 47,342 18,806 669,903 Section 25 Corporations Bankers Company of New York 1 240 241 498 (257) 241 First Foreign Investment Corp. 106 115 13 234 5 295 (66) 234 The Gallatin Compnay, Inc. 300 300 100 140 60 300 International Banking Corp. 37 545 1,000 1,582 24 1 1,557 1,558 Virgin Islands National Bank 11,495 12,199 27,797 159 110,833 1,953 2,612 167,048 124,889 94,032 30,000 3,571 1,004 400 4,100 2,843 241 7,584 TOTALS Section 25 Corporations 11,639 12,199 27,797 1,359 111,833 1,953 2,625 169,405 124,913 94,032 30,000 3,571 1,004 1,004 4,535 4,137 241 9,917 GRAND TOTALS Section 25 and 25(a) Corporations 5,401,806 23,363 2,857 74,130 450,652 1,150,175 194,141 12,160 34,570 7,343,854 6,160,787 511,638 225,284 197,659 56,130 17,125 7,049 417,714 191,580 51,479 19,047 679,820 FR 468 (Rev. 3-63) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MEMO Date 2/29/72 Time To: Chairman Burns From: Frederick R. Dahl Tel. No. Ext. Please call For your approval Returned your call For your information Will call again Note and return Phone me re attached For comments and suggestions See me re attached Preparation of reply MESSAGE: FORD & GERALD LIBRARY MEMBER BANKS EDGE AND AGREEMENT CORPORATIONS OVERSEAS BRANCHES AND FOREIGN SUBSIDIARIES* IN OPERATION DECEMBER 31, 1971. Allied Bank International, New York: E/ 1/ Branches: (2) Bahamas: Nassau England: London American Fletcher National Bank and Trust Company, Indianapolis: Branch: Bahamas: Nassau American National Bank and Trust Company of Chicago, Chicago: Branch: England: London Subsidiary: Chicago: American National Overseas Corporation E/ American Security and Trust Company, Washington, D. C.: Branch: Bahamas: Nassau * Includes only foreign-chartered banking organizations. E/ "Edge Corporation" operating under Section 25 (a) of the Federal Reserve Act. A/ "Agreement Corporation" operating pursuant to Section 25 of the Federal Reserve Act. All other footnotes appear on last page. GERALD FORD LIBRARY -2- Bank of America National Trust and Savings Association, San Francisco: Branches: (96) Argentina: Buenos Aires (4) Guatemala: Guatemala City (3) Austria: Vienna Hong Kong: Hong Kong (4) Barbados: Bridgetown Honduras: Comayaguela San Pedro Sula Belgium: Antwerp Tegucigalpa Brussels India: Bombay Bolivia: La Paz Calcutta Santa Cruz Madras Colombia: Barranquilla Indonesia: Djakarta (2) Bogota (2) Cali Ireland: Dublin Medellin Japan: Kobe Dominican Osaka Republic: Salcedo Tokyo Santiago Yokohama Santo Domingo Korea: Seoul Ecuador: Guayaquil Quito (2) Lebanon: Beirut England: Birmingham Malaysia: Kuala Lumpur London (2) Manchester Mariana Islands: Susupe, Saipan France: Lyon Marseille Marshall Paris Islands: Majuro Germany: Duesseldorf Netherlands: Amsterdam Frankfurt Rotterdam Munich Netherlands Greece: Athens Antilles: Willemstad, Curacao Salonica Nicaragua: Managua (2) Guam: Agana Tamuning Okinawa: Koza Naha GERALD FORD LIBRARY -3- Bank of America National Trust and Savings Association, San Francisco: (cont'd.) Pakistan: Karachi Taiwan: Taipei Lahore Thailand: Bangkok Panama: Changuinola Colon Truk Islands: Moen David Panama City (2) Uruguay: Montevideo Paraguay: Asuncion (2) Vietnam: Saigon Peru: Lima U.S. Virgin Islands: Charlotte Amalie, Philippines: Manila St. Thomas Christiansted, Scotland: Edinburgh St. Croix Frederiksted, Singapore: Singapore (4) St. Croix Switzerland: Zurich West Indies: Basseterre, St. Kitts Sandy Point, St. Kitts The Valley, Anguilla " " (Fr.) : Fort-de-France Martinique Subsidiaries: New York: Bank of America San Francisco: Bamerical International Financial Corporation E/ Chicago: Bank of America International of Chicago E/ Miami: Bank of America International of Florida Costa Rica: Bank of America S.A., San Jose Germany: Bankhaus Centrale Credit A.G., Moenchengladbach Italy: Banca d'America e d'Italia, Milan Luxembourg: Bank of America S.A., Luxembourg Morocco: Bank of America (Maroc), Casablanca Nigeria: Bank of America (Nigeria) Ltd., Lagos Spain: Banco Comercial para America, Madrid GERALD LIBRARY GERALD R FORD -4- The Bank of California National Association, San Francisco: Branches: (2) Bahamas: Nassau England: London Subsidiary: New York: Bank of California International E/ The Bank of New York, New York: Branch: England: London Subsidiary: New York: The Bank of New York International Corporation E/ Bank of the Southwest National Association, Houston, Houston: Branch: Bahamas: Nassau Bank of Virginia International, Richmond E/ 8/ Bankers Trust Company, New York: Branches: (4) Bahamas: Nassau France: Paris England: London (2) Subsidiaries: New York: Bankers Company of New York A/ Bankers International Corporation E/ FORD & LIBRARY GERALD England: Bankers Trust International Ltd., London Germany: Bankhaus Carlo Z. Thomsen, Hamburg Deutsche Unionbank, G.m.b.H., Frankfurt Switzerland: Bankers Trust A.G., Zurich -5- Central National Bank of Cleveland, Cleveland: Branch: Bahamas: Nassau Subsidiary: New York: Central Cleveland International Bank E/ The Chase Manhattan Bank, National Association, New York: Branches: (80) Bahamas: Georgetown, Great Exuma Indonesia: Djakarta (2) Marsh Harbour, Great Abaco Nassau (3) Italy: Bari Rock Sound, Eleuthera Milan Rome Bahrain: Manama Japan: Osaka Canal Zone: Balboa Tokyo Dominican Korea: Seoul Republic: Santiago de los Caballeros Santo Domingo (4) Lebanon: Beirut England: London (3) Liberia: Harbel Monrovia France: Lyon Paris Malaysia: Kuala Lumpur Germany: Duesseldorf Netherlands Frankfurt Antilles: Philipsburg, Hamburg St. Maarten Munich Stuttgart Panama Chitre Colon Greece: Athens (2) David Piraeus Panama City (4) Salonica Puerto Rico: Bayamon Guyana: Georgetown Carolina San Juan (5) Hong Kong: Hong Kong (3) FORD is GERALD LIBRARY -6- The Chase Manhattan Bank, National Association, New York: (cont'd.) Singapore: Singapore (3) British Virgin Islands: Road Town, Tortola Thailand: Bangkok West Indies: Bridgetown, Barbados Trinidad: Port-of-Spain (2) St. George's, Grenada (2) San Fernando Castries, St. Lucia Vietnam: Saigon U.S. Virgin Islands: Charlotte Amalie, St. Thomas (3) Estate Thomas, St. Thomas Christiansted, St. Croix (3) Frederiksted, St. Croix Cruz Bay Quarter, St. John Subsidiaries: New York: Chase International Investment Corporation E/ Chase Manhattan Overseas Banking Corporation E/ Los Angeles: Chase Manhattan International Banking Corporation E/ Argentina: Banco Argentino de Comercio, Buenos Aires Austria: Oesterreichische Kommerzialbank, A.G., Vienna Bahamas: The Chase Manhattan Trust Corporation, Ltd., Nassau Belgium: Banque de Commerce S.A., Brussels Brazil: Banco Lar Brasileiro, S.A., Rio de Janeiro Colombia: Banco del Comercio S.A., Bogota Honduras: Banco Atlantida, Tegucigalpa Ireland: Chase and Bank of Ireland (International) Ltd., Dublin Switzerland: Chase Manhattan Bank (Switzerland), Geneva Venezuela: Banco Mercantil y Agricola, Caracas FORDO & LIBRARY -7- Chemical Bank, New York: Branches: (7) Bahamas: Nassau France: Paris Belgium: Brussels Germany: Frankfurt England: London (2) Switzerland: Zurich Subsidiaries: New York: Chemical International Banking Corporation E/ Chemical International Finance, Ltd. E/ The Citizens and Southern National Bank, Savannah: Branch: Bahamas: Nassau Subsidiaries: Atlanta: Citizens and Southern International Corporation E/ Miami: Citizens and Southern International Bank E/ New Orleans: Citizens and Southern International Bank of New Orleans E/ Jamaica: The Jamaica Citizens Bank, Kingston The Jamaica Citizens Trust Co. Ltd., Kingston City National Bank of Detroit, Detroit: Branch: England: London The Cleveland Trust Company, Cleveland: Branch: Bahamas: Nassau FORD is 0ERALD LIBRARY -8- The Connecticut Bank and Trust Company, Hartford: Branch: Bahamas: Nassau Continental Illinois National Bank and Trust Company of Chicago, Chicago: Branches: (10) England: London (2) Greece: Athens France: Paris Japan: Osaka Tokyo Germany: Frankfurt Munich Netherlands: Amsterdam Rotterdam Subsidiaries: Chicago: Continental International Finance E/ Corporation E/ New York: Continental Bank International Austria: Conill Bank A.G., Vienna Belgium: Continental Bank, S.A., Brussels Lebanon: Continental Development Bank S.A.L., Beirut Crocker National Bank, San Francisco: Branch: England: London Subsidiaries: New York: Crocker International Bank E/ San Francisco: Crocker International Corporation E/ Crocker International Development Corporation E/ GERALD R. FORD LIBRARY -9- The Detroit Bank & Trust Company, Detroit: Branch: England: London Subsidiary: Detroit: Detroit Bank & Trust International E/ Branch: Bahamas: Nassau Exchange National Bank of Chicago, Chicago: Branch: Israel: Tel Aviv The Fidelity Bank, Rosemont, Pennsylvania: Branch: Bahamas: Nassau Subsidiaries: New York: Fidelity International Bank E/ Bahamas: American International Bank (Bahamas) Limited, Nassau The Fidelity International Corporation (Bahamas) Limited, Nassau France: Banque Europeenne de Financement, Paris First City National Bank of Houston, Houston: Branch: Bahamas: Nassau First Foreign Investment Corporation, Miami A/ 7/ FORD & GERALD LIBRARY -10- First & Merchants National Bank, Richmond: Branch: Bahamas: Nassau The First National Bank and Trust Company of Tulsa, Tulsa: Branch: Bahamas: Nassau First National Bank in Dallas, Dallas: Branches: (2) Bahamas: Nassau England: London Subsidiary: Dallas: First Dallas International Banking Corporation E/ First National Bank in St. Louis, St. Louis: Branch: Bahamas: Nassau First National Bank of Atlanta, Atlanta: Subsidiaries: E/ Atlanta: First Atlanta International Corporation England: London Interstate Bank Limited, London 2/ FORD i LIBRARY GERALD -11- The First National Bank of Boston, Boston: Branches: (23) Argentina: Avellaneda Brazil: Campinas Buenos Aires (7) Porto Alegre Flores Rio de Janeiro (2) Rosario (3) Sao Paulo (4) Bahamas: Nassau England: London (2) Subsidiaries: Boston: Boston Overseas Financial Corporation E/ New York: Bank of Boston International E/ Branch: Luxembourg Bahamas: Bank of Boston Trust Company (Bahamas) Limited, Nassau The First National Bank of Chicago, Chicago: Branches: (13) Belgium: Brussels Ireland: Dublin England: London Italy: Milan France: Paris Jamaica: Kingston Germany: Duesseldorf Panama: Panama City (2) Frankfurt Singapore: Singapore Greece: Athens Switzerland: Geneva Subsidiaries: Chicago: First Chicago International Finance Corporation E/E/ New York: First Chicago International Banking Corporation England: First Chicago Ltd., London Jamaica: The First National Bank of Chicago (Jamaica) Ltd., Kingston Lebanon: First National Bank of Chicago (Lebanon) S.A.L., Beirut FORD & LIBRARY GERALD -12- First National Bank of Commerce, New Orleans: Branch: Bahamas: Nassau First National Bank of Fort Worth, Fort Worth: Branch: Bahamas: Nassau First National Bank of Memphis, Memphis: Branch: Bahamas: Nassau The First National Bank of Miami, Miami: Branch: Bahamas: Nassau First National Bank of Minneapolis, Minneapolis: Branch: Bahamas: Nassau The First National Bank of Saint Paul, St. Paul: Branch: Bahamas: Nassau FORD is w GERALD -13- First National City Bank, New York: Branches: (237) Abu Dhabi: Abu Dhabi Chile: Concepcion Santiago (6) Argentina: Bahia Blanca Valparaiso (2) Buenos Aires (12) Cordoba (3) Colombia: Barranquilla (2) Lomas de Zamora Bogota (10) Mendoza Bucaramanga Rosario (4) Cali (3) Cartagena (2) Bahamas: Freeport, Grand Bahama Medellin (4) Nassau Pereira Bahrain: Manama (2) Dominican Republic: Santiago de los Barbados: Bridgetown Caballeros (2) Seawell International Santo Domingo (4) Airport Dubai: Dubai (3) Belgium: Brussels Ecuador: Ambato Bolivia: Cochabamba Cuenca La Paz Guayaquil (4) Santa Cruz de la Sierra Quito (6) Brazil: Belo Horizonte El Salvador: San Salvador Brasilia Campinas England: London (2) Curitiba Porto Alegre Fiji Islands: Suva Recife Rio de Janeiro France: Nice Salvador Paris (2) Santos Sao Paulo (2) Germany: Duesseldorf Frankfurt Canal Zone: Balboa Hamburg Munich Cayman Stuttgart Islands: Georgetown, Grand Cayman West Berlin Greece: Athens (2) Piraeus (2) Thessaloniki FORD & LIBRARY 074470 -14- First National City Bank, New York: (cont'd.) Guam: Agana (2) Pakistan: Karachi Lahore Haiti: Port-au-Prince Panama: Aguadulce Hong Kong: Hong Kong (8) Changuinola Colon India: Bombay (3) David Calcutta (2) La Chorrera Delhi La Concepcion Madras (2) Las Tablas Panama City (6) Indonesia: Djakarta (2) Puerto Armuelles Santiago Ireland: Dublin Paraguay: Asuncion (4) Italy: Milan Rome Peru: Callao Lima (6) Jamaica: Kingston (3) Mandeville Philippines: Cebu May Pen Manila (2) Montego Bay Puerto Rico: Arecibo Japan: Nagoya Bayamon Osaka Caguas Tokyo Hato Rey Yokohama Mayaguez (2) Ponce Korea: Seoul San Juan (5) Lebanon: Beirut Qatar: Doha Malaysia: Georgetown Saudi Arabia: Jeddah Kuala Lumpur (2) Riyadh Mexico: Mexico City (5) Sharjah: Sharjah Netherlands: Amsterdam Singapore: Singapore (3) The Hague Rotterdam Switzerland: Geneva Lausanne Netherlands Lugano Antilles: Orangestad, Aruba Zurich Nicaragua: Managua Taiwan: Taipei Northern Ireland: Belfast FORD & LIBRARY GERALD Trinidad: Port-of-Spain (2) San Fernando -15- First National City Bank, New York: (cont'd.) Uruguay: Montevideo (3) Venezuela: Caracas (2) Maracaibo Valencia U.S. Virgin Islands: Charlotte Amalie, St. Thomas (2) Christiansted, St. Croix Frederiksted, St. Croix Sunny Isle, St. Croix Subsidiaries: New York: First National City Overseas Investment Corporation E/ Branch: Bahamas: Nassau International Banking Corporation / Los Angeles: First National City Bank (International-Los Angeles) E/ Miami: First National City Bank (Interamerica) E/ San Francisco: First National City Bank (International-San Francisco) E/ Argentina: Banco Argentino del Atlantico S.A., Mar del Plata Banco de Bahia Blanca, Bahia Blanca Bahamas: First National City Trust Company (Bahamas) Ltd., Nassau Belgium: FNCB (Belgium) S.A., Brussels Canada: International Trust Company, Montreal The Mercantile Bank of Canada, Montreal Honduras: Banco de Honduras, S.A., Tegucigalpa Hong Kong: Far East Bank Ltd., Hong Kong Liberia: Bank of Monrovia, Monrovia Luxembourg: First National City Bank (Luxembourg), S.A. Morocco: First National City Bank (Maghreb), Casablanca South Africa: First National City Bank (South Africa) Limited, Johannesburg United Kingdom: First National City Bank (Channel Islands) Limited, St. Helier, Jersey Zaire: First National City Bank (Zaire) S.A.R.L., Kinshasa FORD is GERALD LIBRARY -16- First Pennsylvania Banking and Trust Company, Bala-Cynwyd, Pennsylvania: Branches: (3) England: London U.S. Virgin Islands: Charlotte Amalie, St. Thomas Christiansted, St. Croix Subsidiaries: Philadelphia: First Pennsylvania Overseas Finance Corporation E/ U.S. Virgin Islands: Virgin Islands National Bank, Charlotte Amalie, St. Thomas A/ (8 branches in the U.S. Virgin Islands) Branches: (4) West Indies: St. John's, Antigua (2) British Virgin Islands: Road Town, Tortola Virgin Gorda First Union National Bank of North Carolina, Charlotte: Branch: Bahamas: Nassau First Wisconsin National Bank of Milwaukee, Milwaukee: Branch: England: London Franklin National Bank, Brooklyn, New York: Branch: Bahamas: Nassau BERALD R. FORD TIBRARY Subsidiary: New York: Franklin International Corporation E/ -17- Girard Trust Bank, Bala-Cynwyd, Pennsylvania: Branch: England: London Subsidiaries: New York: Girard International Bank E/ Philadelphia: Girard International Investment Corporation E/ Harris Trust and Savings Bank, Chicago: Branch: England: London Subsidiary: New York: Harris Bank International Corporation E/ Hartford National Bank and Trust Company, Hartford: Branch: Bahamas: Nassau Houston National Bank, Houston: Branch: Bahamas: Nassau The Huntington National Bank, Columbus: Branch: Bahamas: Nassau FORD & GERALD LIBRARY -18- The Indiana National Bank of Indianapolis, Indianapolis: Branch: Bahamas: Nassau Subsidiaries: Indianapolis: Indiana National Overseas Corp. E/ England: London Interstate Bank Limited, London 2/ Industrial National Bank, Providence: Branch: Bahamas: Nassau Irving Trust Company, New York: Branch: England: London Subsidiary: New York: Irving International Financing Corporation E/ Miami: Irving Interamerican Bank E/ LaSalle National Bank, Chicago: Branch: Bahamas: Nassau The Liberty National Bank and Trust Company, Oklahoma City: Branch: Bahamas: Nassau FORD is GERALD LIBRARY -19- Manufacturers Hanover Trust Company, New York: Branches: (4) England: London (2) Japan: Tokyo Germany: Frankfurt Subsidiaries: New York: The Gallatin Company, Inc. A/ Manufacturers Hanover International Banking Corporation Manufacturers Hanover International Finance Corporation Belgium: Banque d'Escompte et de Travaux, Brussels England: Manufacturers Hanover Ltd., London Manufacturers National Bank of Detroit, Detroit: Branch: Bahamas: Nassau Subsidiary: Detroit: Manufacturers-Detroit International Corporation E/ Marine Midland Bank-New York, New York: Branches: (3) Bahamas: Nassau France: Paris England: London Marine Midland International Corporation, New York E/ 3/ Marine Midland Bank-Western, Buffalo: Branch: FORD is GERALD 1.10 Bahamas: Nassau -20- Marine National Exchange Bank, Milwaukee: Branch: Bahamas: Nassau Marshall & Ilsley Bank, Milwaukee: Branch: Bahamas: Nassau Maryland National Bank, Baltimore: Branch: Bahamas: Nassau Subsidiary: England: London Interstate Bank Limited, London 2/ Mellon National Bank and Trust Company, Pittsburgh: Branch: England: London Subsidiary: New York: Mellon Bank International E/ Mercantile Trust Company National Association, St. Louis: Branch: Bahamas: Nassau Subsidiaries: LIBRARY GERALD ? FORD St. Louis: Mercantile International Corporation E/ England: London Interstate Bank Limited, London 2/ -21- Morgan Guaranty Trust Company of New York, New York: Branches: (11) Bahamas: Nassau Germany: Duesseldorf Frankfurt Belgium: Antwerp Brussels Japan: Tokyo England: London (2) Switzerland: Zurich France: Neuilly sur Seine Paris Subsidiaries: New York: Morgan Guaranty International Banking Corporation Morgan Guaranty International Finance Corporation France: Morgan & Cie. S.A., Paris Italy: Banca Morgan Vonwiller, S.p.A., Milan The National Bank of Commerce of Seattle, Seattle: Branch: England: London Subsidiaries: New York National Bank of Commerce of Seattle (International) E/ Seattle: International Bank of Commerce E/ Branches: (5) Hong Kong (5) National Bank of Detroit, Detroit: Branch: England: London FORD is GERALD LIBRARY Subsidiaries: Detroit: International Bank of Detroit E/ Branch: Bahamas: Nassau England: Western American Bank (Europe) Limited, London 4/ -22- National Bank of North America, New York: Branch: Bahamas: Nassau Subsidiary: New York: North America International Corporation E/ The National City Bank of Cleveland, Cleveland: Branch: Bahamas: Nassau The National Shawmut Bank of Boston, Boston: Branch: Bahamas: Nassau Subsidiary: Boston: Shawmut International Corporation E/ New England Merchants National Bank, Boston: Branch: Bahamas: Nassau Subsidiary: Boston: New England Merchants Bank International E/ New Jersey Bank National Association, Clifton: Branch: Bahamas: Nassau FORD & GERALD LIBRARY -23- North Carolina National Bank, Charlotte: Branch: Bahamas: Nassau The Northern Trust Company, Chicago: Branch: England: London Subsidiary: New York: The Northern Trust International Banking Corporation E/ Northwest International Bank, Minneapolis E/ 5/ Northwestern National Bank of Minneapolis, Minneapolis: Branch: Bahamas: Nassau 01d Kent Bank and Trust Company, Grand Rapids: Branch: Bahamas: Nassau The Philadelphia National Bank, Philadelphia: GERALD R. FORD LIBRARY Branch: Bahamas: Nassau Subsidiaries: E/ New York: Philadelphia International Bank Philadelphia: Philadelphia International Investment Corporation E/ Branch: England: London -24- Pittsburgh National Bank, Pittsburgh: Branch: Bahamas: Nassau Subsidiary: Pittsburgh: Pittsburgh International Finance Corporation E/ Provident National Bank, Bryn-Mawr, Pennsylvania: Branch: Bahamas: Nassau Subsidiary: Philadelphia: Provident International Corporation E/ Republic National Bank of Dallas, Dallas: Branches: (2) Bahamas: Nassau England: London Subsidiary: Dallas: Republic International Company E/ Republic National Bank of New York, New York: Branch: England: London Subsidiary: Bahamas: Republic National Bank of New York (International) Ltd., Nassau GERALD R. FORD LIBRABA -25- Seattle-First National Bank, Seattle: Branch: Bahamas: Nassau Subsidiaries: Seattle: Seattle-First International Corporation E/ Switzerland: Seattle-First National Bank (Switzerland), Zurich Security Pacific National Bank, Los Angeles: Branch: England: London Germany: Frankfurt Subsidiaries: New York: Security Pacific International Bank E/ Los Angeles: Security Pacific Overseas Corp. England: Western American Bank (Europe) Limited, London 4/ Shorehaven Bank International, Boston E/ 9/ Society National Bank of Cleveland, Cleveland: Subsidiary: Cleveland: Society International Corporation E/ State Street Bank and Trust Company, Boston: Branch: Bahamas: Nassau GERALD R. FORD Subsidiaries: New York: State Street Bank International E/ State Street Bank Boston International E/ Germany: State Street Bank, G.m.b.H., Munich -26- Sterling National Bank & Trust Company, New York: Branch: Bahamas: Nassau Texas Commerce Bank National Association, Houston: Branch: Bahamas: Nassau Trust Company of Georgia, Atlanta: Branch: Bahamas: Nassau Union Bank, Los Angeles: Branch: Bahamas: Nassau Subsidiary: Los Angeles: Union International Bank E/ The Union Commerce Bank, Cleveland: Branch: Bahamas: Nassau United Bank of Denver, National Association, Denver: Branch: Bahamas: Nassau FORD is LIBRARY GERALD -27- United California Bank, Los Angeles: Branch: England: London Subsidiaries: New York: United California Bank International E/ Belgium: United California Bank N.V. S.A. , Brussels United States National Bank of Oregon, Portland: Branch: Bahamas: Nassau Subsidiary: Portland: United States National Bank International Corp. E/ United States Trust Company, New York: Subsidiary: E/ New York: United States Trust Company International Corporation United Virginia Bank International, Norfolk E/ 6/ Valley National Bank of Arizona, Phoenix: Branch: Bahamas: Nassau Virginia National Bank, Norfolk: Branch: GERALD FORD Bahamas: Nassau -28- Wachovia Bank and Trust Company, National Association, Winston-Salem: Branch: Bahamas: Nassau Subsidiaries: Winston-Salem: Wachovia International Investment Corporation E/ Cayman Islands: Wacayman Banking Corp., Ltd., Georgetown, Grand Cayman Wacayman Bank and Trust Company Ltd., Georgetown, Grand Cayman Wells Fargo Bank, National Association, San Francisco: Branches: (2) Japan: Tokyo Luxembourg: Luxembourg Subsidiaries: New York: Wells Fargo Bank International E Miami: Wells Fargo Interamerican Bank England: Western American Bank (Europe) Limited, London 4/ Western Pennsylvania National Bank, Pittsburgh: Branch: Bahamas: Nassau FORD is LIBRARY -29- 1/ Affiliate of American Fletcher National Bank and Trust Company, Indianapolis; American Security and Trust Company, Washington, D. C.; Bank of the Southwest National Association, Houston; Fidelity Union Trust Company, Newark; First Hawaiian Bank, Honolulu; First National Bank in St. Louis; First National Bank of Fort Worth; First National Bank of Memphis; The First National Bank of Saint Paul; Hartford National Bank and Trust Company; The Liberty National Bank and Trust Company, Oklahoma City; Michigan National Bank, Lansing; Trust Company of Georgia, Atlanta; United Bank of Denver National Association; United States National Bank of Oregon, Portland; Valley National Bank, Phoenix; Virginia National Bank, Norfolk; Western Pennsylvania National Bank, Pittsburgh. 2/ London Interstate Bank Limited is an affiliate of First National Bank of Atlanta; The Indiana National Bank of Indianapolis; Maryland National Bank, Baltimore; and Mercantile Trust Company National Association, St. Louis. 3/ Subsidiary of Marine Midland Banks, Inc., Buffalo, a bank holding company. 4/ Western American Bank (Europe) Limited is an affiliate of National Bank of Detroit; Security Pacific National Bank, Los Angeles; and Wells Fargo Bank, National Association, San Francisco. 5/ Subsidiary of Northwest Bancorporation, Minneapolis, a bank holding company. 6/ Subsidiary of United Virginia Bankshares Incorporated, Richmond, a bank holding company. 7/ A subsidiary of Southeast Bancorporation, Miami, a bank holding company. 8/ A subsidiary of Virginia Commonwealth Bankshares, Inc., Richmond, a bank holding company. 9/ Subsidiary of South Shore National Bank, Quincy, Massachusetts, and The First New Haven National Bank, New Haven, Connecticut. BERALD FORD LIBRARY 12-31-71 SECTION 25 AND SECTION 25(a) CORPORATIONS Corporations organized and operating under Section 25(a) of the Federal Reserve Act Allied Bank International, Central Cleveland International Bank, New York New York American National Overseas Corporation, Chase International Investment Corporation, Chicago New York Bamerical International Financial Chase Manhattan International Banking Corporation, San Francisco Corporation, Los Angeles Bank of America, Chase Manhattan Overseas Banking New York, Corporation, New York Bank of America International of Chicago, Chemical International Banking Chicago Corporation, New York Bank of America International of Florida, Chemical International Finance, Ltd., Miami New York Bank of Boston International, Citizens and Southern International New York Bank, Miami Bank of California International, Citizens and Southern International New York Bank of New Orleans, New Orleans The Bank of New York International Citizens and Southern International Corporation, New York Corporation, Atlanta Bank of Virginia International, Continental Bank International, Richmond New York Bankers International Corporation, Continental International Finance New York Corporation, Chicago Boston Overseas Financial Corporation, Boston QERALD FORD -2- Crocker International Bank, First National City Overseas Investment New York Corporation, New York Crocker International Corporation, First Pennsylvania Overseas Finance San Francisco Corporation, Philadelphia Crocker International Development Franklin International Corporation, Corporation, San Francisco New York Detroit Bank & Trust International, Girard International Bank, Detroit New York Fidelity International Bank, Girard International Investment New York Corporation, Philadelphia First Atlanta International Harris Bank International Corporation, Corporation, Atlanta New York First Chicago International Banking Indiana National Overseas Corp., Corporation, New York Indianapolis First Chicago International Finance International Bank of Commerce, Corporation, Chicago Seattle First Dallas International Banking International Bank of Detroit, Corporation, Dallas Detroit First National City Bank (Interamerica), Irving Interamerican Bank, Miami Miami First National City Bank (International- Irving International Financing San Francisco), San Francisco Corporation, New York First National City Bank (International- Manufacturers-Detroit International Los Angeles), Los Angeles Corporation, Detroit BERALD R.FORD LIBRARY -3- Manufacturers Hanover International Philadelphia International Bank, Banking Corporation, New York New York Manufacturers Hanover International Philadelphia International Investment Finance Corporation, New York Corporation, Philadelphia Marine Midland International Pittsburgh International Finance Corporation, New York Corporation, Pittsburgh Mellon Bank International, Provident International Corporation, New York Philadelphia Mercantile International Corporation, Republic International Company, St. Louis Dallas Morgan Guaranty International Banking Seattle-First International Corporation, New York Corporation, Seattle Morgan Guaranty International Finance Security Pacific International Bank, Corporation, New York New York National Bank of Commerce of Seattle Security Pacific Overseas Corp., (International), New York Los Angeles New England Merchants Bank Shawmut International Corporation, International, Boston Boston North America International Shorehaven Bank International, Corporation, New York Boston The Northern Trust International Society International Corporation, Banking Corporation, New York Cleveland Northwest International Bank, State Street Bank Boston International, Minneapolis New York FORD & LIBRARY GERALD - -4- State Street Bank International, United Virginia Bank International, New York Norfolk Union International Bank, Wachovia International Investment Los Angeles Corporation, Winston-Salem United California Bank International, Wells Fargo Bank International, New York New York United States National Bank International Wells Fargo Interamerican Bank, Corp., Portland, Oregon Miami United States Trust Company International Corporation, New York Corporations operating under Agreement pursuant to Section 25 of the Federal Reserve Act Bankers Company of New York, New York First Foreign Investment Corporation, Miami The Gallatin Company, Inc., New York International Banking Corporation, New York Virgin Islands National Bank, Charlotte Amalie, St. Thomas is LIBRARY 938470 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date July 20, 1972 From To Frederick General Files R. Dahl Subject: Changes in Overseas Branches of United States Banks and Foreign Banking Corporations during quarter ended June 30, 1972. Overseas Branches Opened Bank of America National Trust and Savings Association, San Francisco Strasbourg, France 4- 4-72 Piraeus, Greece 6-28-72 Panama City, Panama 5-26-72 Central National Bank in Chicago, Chicago Nassau, Bahamas 4-24-72 The Chase Manhattan Bank, National Asso- ciation, New York Santo Domingo, Dominican Republic 5- 8-72 FORD Hong Kong 6-28-72 Aguadulce, Panama 4- 3-72 GERALD Las Tablas, Panama 4- 3-72 Santiago, Panama 4- 5-72 Point-a-Pitre, Guadeloupe, W. I. 4- 8-72 Chemical Bank, New York Tokyo, Japan 4-11-72 Commerce Union Bank, Nashville Nassau, Bahamas 4-10-72 Exchange National Bank of Chicago, Chicago Nassau, Bahamas 5-15-72 First National City Bank, New York Nassau, Bahamas 3-21-72* Bandar Seri Begawan, Brunei 5-11-72 Franklin National Bank, New York London, England 6- 1-72 The Fort Worth National Bank, Fort Worth Nassau, Bahamas 4- 3-72 National Bank of Commerce, Memphis Nassau, Bahamas 6- 1-72 National Newark & Essex Bank, Newark Nassau, Bahamas 5- 1-72 North Carolina National Bank, Charlotte London, England 4- 4-72 The Riggs National Bank of Washington, D. C. Nassau, Bahamas 5-10-72 Security Pacific National Bank, Los Angeles Tokyo, Japan 4- 7-72 Frankfurt, Germany 1- 5-72* Society National Bank of Cleveland, Cleveland Nassau, Bahamas 4-28-72 * not previously listed Overseas Branches Closed -2- First National City Bank, New York Antwerp, Belgium 11-15-71* Brussels, Belgium (2) 11-15-71* Liege, Belgium 11-15-71* Amsterdam, Netherlands 11-19-71* Panama City, Panama 12-20-71* As of June 30, 1972, overseas branches of member banks and foreign banking corporations totaled 620 as follows: State Member Banks American Security and Trust Company, Washington, D. C. 1 The Bank of New York, New York 1 Bankers Trust Company, New York 4 Chemical Bank, New York 9 The Cleveland Trust Company, Cleveland 1 Commerce Union Bank, Nashville 1 The Connecticut Bank and Trust Company, Hartford 1 The Detroit Bank & Trust Company, Detroit 1 The Fidelity Bank, Rosemont, Pennsylvania 1 Fidelity Union Trust Company, Newark 1 First Pennsylvania Banking and Trust Company, Bala-Cynwyd 3 Girard Trust Bank, Bala-Cynwyd, Pennsylvania 1 Harris Trust and Savings Bank, Chicago 1 Irving Trust Company, New York 1 Manufacturers Hanover Trust Company, New York 4 Marine Midland Bank-New York, New York 3 Marine Midland Bank-Western, Buffalo 1 M&I Marshall & Ilsley Bank, Milwaukee 1 Morgan Guaranty Trust Company of New York, New York 12 The Northern Trust Company, Chicago 1 01d Kent Bank and Trust Company, Grand Rapids 1 State Street Bank and Trust Company, Boston 1 Trust Company of Georgia, Atlanta 1 Union Bank, Los Angeles 1 The Union Commerce Bank, Cleveland 1 United California Bank, Los Angeles 1 United Virginia Bank, Richmond 1 56 National Banks American Fletcher National Bank and Trust Company, Indianapolis 1 American National Bank and Trust Company of Chicago, Chicago 1 Bank of America National Trust and Savings Association, San Francisco 100 * not previously listed FORD & GERALD LIBRARY -3- The Bank of California National Association, San Francisco 2 Bank of the Southwest National Association, Houston 1 Central National Bank in Chicago, Chicago 1 Central National Bank of Cleveland, Cleveland 1 The Chase Manhattan Bank National Association, New York 90 The Citizens and Southern National Bank, Savannah 1 City National Bank of Detroit, Detroit 1 Continental Illinois National Bank and Trust Company of Chicago, Chicago 10 Crocker National Bank, San Francisco 1 Exchange National Bank of Chicago, Chicago 2 First & Merchants National Bank, Richmond 1 First City National Bank of Houston, Houston 1 The First National Bank and Trust Company of Tulsa, Tulsa 1 First National Bank in Dallas, Dallas 2 First National Bank in St. Louis, St. Louis 1 First National Bank of Atlanta, Atlanta 1 The First National Bank of Boston, Boston 23 The First National Bank of Chicago, Chicago 13 First National Bank of Commerce, New Orleans 1 First National Bank of Fort Worth, Forth Worth 1 First National Bank of Memphis, Memphis 1 The First National Bank of Miami, Miami 1 First National Bank of Minneapolis, Minneapolis 1 The First National Bank of Saint Paul, St. Paul 1 First National City Bank, New York 228 First Union National Bank of North Carolina, Charlotte 1 First Wisconsin National Bank of Milwaukee, Milwaukee 1 The Fort Worth National Bank, Fort Worth 1 Franklin National Bank, Brooklyn, New York 2 Hartford National Bank and Trust Company, Hartford 1 Houston National Bank, Houston 1 The Huntington National Bank of Columbus, Columbus 1 The Indiana National Bank of Indianapolis, Indianapolis 1 Industrial National Bank, Providence 1 LaSalle National Bank, Chicago 1 The Liberty National Bank and Trust Company, Oklahoma City 1 Manufacturers National Bank of Detroit, Detroit 1 Marine National Exchange Bank, Milwaukee 1 Maryland National Bank, Baltimore 1 Mellon National Bank and Trust Company, Pittsburgh 1 Mercantile Trust Company National Association, St. Louis 1 Merchants National Bank and Trust Company of Indianapolis, Indianapolis 1 National Bank of Commerce, Memphis 1 The National Bank of Commerce of Seattle, Seattle 1 National Bank of Detroit, Detroit 1 National Bank of North America, New York 1 R. FORD GERALD LIBRARY -4- The National City Bank of Cleveland, Cleveland 1 National Newark & Essex Bank, Newark 1 The National Shawmut Bank of Boston, Boston 1 New England Merchants National Bank, Boston 1 New Jersey Bank National Association, Clifton 1 North Carolina National Bank, Charlotte 2 The Omaha National Bank, Omaha 1 Northwestern National Bank of Minneapolis, Minneapolis 1 The Philadelphia National Bank, Philadelphia 1 Pittsburgh National Bank, Pittsburgh 1 Provident National Bank, Bryn-Mawr, Pennsylvania 1 Republic National Bank of Dallas, Dallas 2 Republic National Bank of New York, New York 1 The Riggs National Bank of Washington, D. C. 1 Seattle-First National Bank, Seattle 1 Security Pacific National Bank, Los Angeles 3 Society National Bank of Cleveland, Cleveland 1 Sterling National Bank & Trust Company, New York 1 Texas Commerce Bank National Association, Houston 1 United Bank of Denver, National Association, Denver 1 United States National Bank, San Diego 1 United States National Bank of Oregon, Portland 1 United Virginia Bank/First & Citizens National, Alexandria 1 United Virginia Bank/Seaboard National, Norfolk 1 Valley National Bank of Arizona, Phoenix 1 Virgin Islands National Bank, Charlotte, Amalie, St. Thomas 4 Virginia National Bank, Norfolk 1 Wachovia Bank and Trust Company, National Association, Winston-Salem 1 Wells Fargo Bank, National Association, San Francisco 3 Western Pennsylvania National Bank, Pittsburgh 1 550 606 Section 25(a) Corporations Allied Bank International, New York 2 Bank of America, New York 1 Bank of Boston International, New York 1 Detroit Bank and Trust International, Detroit 1 First National City Overseas Investment Corporation, New York 1 International Bank of Commerce, Seattle 5 International Bank of Detroit, Detroit 1 Philadelphia International Investment Corporation, Philadelphia 1 State Street Bank Boston International, New York 1 14 620 GERALD FORD FR 468 (Rev. 3-63) BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM MEMO Date 12-18-72 Time To: Chairman Burns From: Frederick R. Dahl Tel. No. Ext. Please call For your approval Returned your call For your information Will call again Note and return Phone me re attached For comments and suggestions See me re attached Preparation of reply MESSAGE: Governor Sheehan requested that this be circulated to all Governors. FORD is LIBRARY 07V839 BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM Office Correspondence Date December 13, 1972 To Governor Sheehan Subject: Reply to your query of December 11, 1972, as to total assets of From Frederick R. Dahl all U.S. banks. My memorandum of October 30, 1972, cited total assets of Nassau branches of $9.1 billion as of May 1972, when the assets of all commercial banks in the United States totaled $659.1 billion, with $523.5 belonging to members of the Federal Reserve System. The assets of the Nassau branches thus equaled: 1.38 per cent of the total assets of all U.S. banks 1.74 per cent of the total assets of member banks of the Federal Reserve System. The above figures for total assets of banks are for domestic offices only. Total assets of foreign branches presently run about $70 billion, which, if added to the domestic totals, would provide a measure of the consolidated assets of member banks at domestic and foreign locations. On the basis of that adjust- ment, the assets of the Nassau branches would represent approxi- mately: 1.25 per cent of the total assets of all U.S. banks 1.53 per cent of the total assets of member banks of the Federal Reserve System. FORD & LIBRARY 039470