And the directors of our great banking institutions, as the ultimate judges of bank credit, exercise today a function no less important to the country’s welfare than that of the judges of our courts, the interstate commerce commissioners, and departmental heads.
SCOPE OF THE PROHIBITION
In the proposals for legislation on this subject, four important questions are presented:
- Shall the principle of prohibiting interlocking directorates in potentially competing corporations be applied to state banking institutions, as well as the national banks?
- Shall it be applied to all kinds of corporations or only to banking institutions?
- Shall the principle of prohibiting corporations from entering into transactions in which the management has a private interest be applied to both directors and officers or be confined in its application to officers only?
- Shall the principle be applied so as to prohibit transactions with another corporation in which one of its directors is interested merely as a stockholder?