Page:United States Statutes at Large Volume 48 Part 1.djvu/194

 168 73d CONGRESS. SESS. I. CH. 89. JUNE 16, 1933 . Vol.38,p. 263. SEC. 8. The Federal Reserve Act, as amended, is amended by insert- U.S.C., pp. 277,281. ing between sections 12 and 13 (U .S .C., title 12, sees . 261, 262, and 342), thereof the following new sections : Fe der al Op en Ma r- ket Committee; 11 SEC. 12A. (a) There is hereby created a Federal Open Market created. Co mmitte e (her einaft er re ferred to as the `commi ttee'), whic h Members, shall consist of as many members as there are Federal reserve dis- Selection of. y tricts. Each Federal reserve bank by its board of directors shall Meetings. annually select one member of said committee. The meetings of said committee shall be held at Washington, District of Columbia, at least four times each year, upon the call of the governor of the Federal Reserve Board or at the request of any three members of the committee, and, in the discretion of the Board, may be attended Regulations govern- b y ithe members of the Board. ing open-market opera- (b) No Federal reserve bank shall engage in open-market opera- ti Ante Reservobanks. Lions under section 14 of this Act except in accordance with regu- Adoption of regale- lations adopted by the Federal Reserve Board. The Board shall Lions. consider, adopt, and transmit to the committee and to the several Federal reserve banks regulations relating to the open-market trans- actions of such banks and the relations of the Federal Reserve System with foreign central or other foreign banks. "(c) The time, character, and volume of all purchases and sales of paper described in section 14 of this Act as eligible for open- market operations shall be governed with a view to accommodating commerce and business and with regard to their bearing upon the general credit situation of the country . Filing decision not to "(d) If any Federal reserve bank shall decide not to participate participate in open- market o perations . i n open-market operations recommended and approved as provided in paragraph (b) hereof, it shall file with the chairman of the committee within thirty days a notice of its decision, and transmit a copy thereof to the Federal Reserve Board. " SEC. 12B . (a) There is hereby created a Federal Deposit Insur- ance Corporation (hereinafter referred to as the `Corporation'), whose duty it shall be to purchas e, hol d, and liquida te, as herein after provided, the assets of national banks which have been closed by action of the Comptroller of the Currency, or by vote of their direc- tors, and the assets of State member banks which have been closed by action of the appropriate State authorities, or by vote of their directors ; and to insure, as hereinafter provided, the deposits of all banks which are entitled to the benefits of insurance under this section . "(b) The m anagem ent of the Corpor ation shall be ve sted i n a board of directors consisting of three members, one of whom shall be the Comptroller of the Currency, and two of whom shall be citizens of the United States to be appointed by the President, by and with the advice and consent of the Senate. One of the appoin- tive members shall be the chairman of the board of directors of the Corporation and not more than two of the members of such board of directors shall be mem bers of the s ame political party. Eac h such appointive member shall hold office for a term of six years and shall receive compensation at the rate of $10,000 per annum, payable monthly out of the funds of the Corporat ion, but the C omptroller of the Currency shall not receive additional compensation for his services as such member. " (c) There is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, the sum of $150,000,000, which shall be available for payment by the Secretary of the Treasur y for capital stock of the Corporation i n an equal amount, which shall be subscribed for by him on behalf of the United Post, p . 183 . Vol.38,p.264. U.S. C.,p. 283. Federal Deposit In- sur anc e Corporation ; created . Duty to l iqui date, ate ., closed national and State member banks. Post, pp 279, 969. Ins urance of dep osits . Manag emen t of Cor- poration. Dir ectors, appoint- ment . Terms of office; com- pensation . Appropriation au- thorized, payment for Corporation capital stock . Post, p . 279.