292

Reserve Act which called for a member bank to buy and hold stock in 

the district Federal Reserve Bank equal to 6% of its capital and surplus.

Currently, shares held by five of the above named banks comprise 53% 

of the total Federal Reserve Bank of New York stock. An examination of 

the major stockholders of the New York City banks shows clearly that a 

few families, related by blood marriage, or business interests, still 

control the New York City banks which, in turn, hold the controlling 

stock of the Federal Reserve Bank of New York.

It is notable that three of the banks holding Federal Reserve Bank of 

New York stock, in the amount of 270,893 shares, are subsidiaries of 

foreign banks. J. Henry Schroder Bank and Trust is listed by Standard 

and Poors as a subsidiary of Schroders Ltd. of London. The National 

Bank of North America is a subsidiary of the National Westminster Bank, 

one of London’s "Big Five". European American Bank is a subsidiary of 

the European American Bank, Bahamas, LTD. It is interesting to note 

that the directors of the European  American  Bank  &  Trust  include 

Milton F. Rosenthal, president and Chief Operating Officer of the 

international gold company,

179

Engelhard Minerals and Chemical; Hamilton F. Potter, a partner in 

Sullivan and Cromwell (J. Henry Schroder Bank & Trust attorneys); 

Edward H. Tuck, partner of Shearman and Sterling (Citibank’s 

attorneys); F.H. Ulrich and Hans Liebkutsch, managing directors of the 

giant Midland Bank of London, one of the "Big Five"; and Roger Alloo, 

Paul-Emmanuel Janssen, and Maurice Laure of the Societe Generale 

de Banque (Brussels, Belgium). [See Chart III]