U.S. BANK REFORMS
A NOTABLE DECISION PROVISION OP CREDITS NEW YORK, Dec. G. The Roosevelt Administration campaign to strengthen the banks’ capital structure through the isuance of new preferred stock gained a notable victory to-day when it was announced that the National City Bank, the second largest iu the nation, will issuo £10,000,000 worth of such securities. All common stock which holders do not subscribe will be purchased by the Reconstruction Finance Corporation.
At the same time, the bank directors recommended that the institution’s capital stock be reduced from £24,800,000 to £15,400,000 by reducing the par value of common stock from £4 to £2 10s a share. The sum of £9,100,000 thus “released” will bo used in writing down or writing oft depreciated assets.
In addition to the National City Bank, the Reconstruction Finance Corporation has authorised the purchase of preferred stock of 11 other New York banks, ranging from £50,000,000 to £4,000,000, aggregating £8,740,000; making a total of £lB,940,000, which the corporation, is, prepared to pump into the local banking structure in an effort to ease credit;.
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Poverty Bay Herald, Volume LX, Issue 18265, 7 December 1933, Page 2
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178U.S. BANK REFORMS Poverty Bay Herald, Volume LX, Issue 18265, 7 December 1933, Page 2
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