The bank merger legislation approved
May 13, 1960 requires the Board, before acting on a proposed merger
or other absorption, to request a report “on the competitive factors
involved” from the other federal banking agencies and the attorney
general. It seems clear from the act itself and from its legislative
history that such report is intended to be limited to the competitive
factors and that it is not contemplated that the report would contain
any recommendation as to approval or disapproval of the merger. The
Report of the House Banking and Currency Committee makes it clear
that the banking agencies are expected to express an opinion only
with respect to the competitive factors involved. On the floor of
the Senate, Senator Fulbright stated that the attorney general would
not be expected to “consider or report on the various banking factors
involved, nor was he expected to make any recommendation as to the
action the banking agencies should take on the basis of consideration
of all of the factors involved.” Presumably, the same statement applies
to reports from the banking agencies.
In these circumstances, the System, in responding to requests
for reports from the Comptroller of the Currency and the Federal Deposit
Insurance Corporation, will expect to comment only upon the effect
of the proposed merger upon competition and will not make any definite
recommendation as to action by those agencies with respect to proposed
mergers. S-1740; May 23, 1960.
