Clarification of Prior Opinion Regarding Borrowing by Bank Examiners: Memorandum for the General Counsel, Board of Governors, Federal Reserve System [December 20, 1993]   [open pdf - 25KB]

"This responds to your request that we clarify an aspect of an opinion previously issued by this Office respecting 18 U.S.C. § 213, which prohibits a bank examiner from borrowing from any Federal Reserve member bank or other covered entity that he examines, or any person connected therewith. See 'Memorandum Opinion for the Secretary of the Board, Federal Reserve Board', 6 Op. O.L.C. 509 (1982) ('1982 opinion'). Specifically, you have asked us whether footnote 8 from that opinion should be construed to mean that 18 U.S.C. § 213 prohibits bank examiners from receiving loans or credit from affiliates of member banks that they have examined in all cases where such affiliates are under 'common control' with the bank, or where the two entities have a common majority of corporate officers or directors. We conclude that such a construction is not required by the statute, except where the affiliated bank is serving as a conduit or 'front' for the implementation of a loan that is actually being extended due to the direction, instigation, or influence of the member bank or person connected therewith."

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