(2 of 2)
Thus a depositor with $250,000 in a member bank that closed would promptly collect $140.000 from the Federal fund.
The Glass-Steagall bill attempted other reforms. Reserve member banks were to get rid of their stock-selling affiliates within one year. A new requirement called upon private bankers within the same period to cease accepting deposits or get out of the investment business. The Senate bill permitted national banks to have branches in States which allowed State banks to have them. The House bill made no such concession to branch-banking.
Other provisions in one bill or the other: 1) Federal Reserve banks are to withhold credit from member banks which use it for stockmarket speculation; 2) savings and Morris Plan banks are to be admitted to the Reserve system; 3) national bank directorates are to be limited to 25; 4) interest on demand deposits is to cease; 5) officers may not borrow from their own banks.