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to develop some degree of uniformity in our approach to the crimes against financial institutions and to take advantag : advice available on the subject, we will work with the other agencies and the Department of Justice to promulgate re ake a practicable contribution to our common objective of ing crimes against financial institutions.

au of the Budget has advised that it has no objection to the letter and that enactment of S. 3001 is in accord with the Pr

rely yours,



Washington, D.C., March 25

Jommittee on Banking and Currency,

CHAIRMAN: This is in response to your request for a rep present Congress. S. 3001 is an Administration bill for t Act of 1968 and was referred to in the President's Messag Crime and Law Enforcement.

would require Federal supervisory agencies, defined as mea of the Currency, the Board of Governors of the Federal Federal Deposit Insurance Corporation and the Federal Ho d to promulgate regulations establishing minimum standa stitutions subject to their jurisdiction, with respect to the ins e and operation of security devices and procedures to di urglaries and larcenies and to assist in the identification ar persons who commit such acts. Subsection (b) of section 3 o ire the establishment, by regulation, of time limits withi would have to be effected and the submission of periodi t to the installation, maintenance and operation of the dev Section 4 of the bill would provide a civil penalty of up t tion of the rules.

eral Home Loan Bank Board is concerned about the ind nst financial institutions and, therefore, favors enactmen e of the great diversity in the size, location and physical

This is in response to your letter of February 21, 1968, f the Board of Governors regarding S. 3001, a bill "To res for banks and other financial institutions." In essence the Comptroller of the Currency, the Board of Governors System, the Federal Deposit Insurance Corporation, and n Bank Board to promulgate rules establishing minimum cial institutions under their respective jurisdictions with ion, maintenance, and operation of security devices and rage robberies, burglaries, and larcenies, and (2) to assist d apprehension of persons committing such acts. hat every reasonable effort should be made to thwart the gainst financial institutions. The Board has been particuthis problem and has taken steps to cope with it. For rs have been instructed to discuss the matter with the and, jointly with the Federal Deposit Insurance Corporad a questionnaire as a means of calling the attention of equacies in security controls and protective devices. The inue to emphasize this approach and to provide banks ith literature on the subject, including a brochure prepared ustice.

at appropriate security measures for any individual bank h factors as the incidence of crime in the community in ated, the bank's location within the community, and the s of the bank's quarters. In addition, what a bank might to adopt in the way of security measures is related to the es and the bank's financial resources. Consequently, the ory standards with respect to security devices and proboth workable and equitable would involve considerable ss, the Board believes that it is possible to establish pracards for this purpose.

rd favors the proposed legislation.


E. Our first witness this morning is the distinttorney General of the Department of Justice, the . Vinson, Jr. Mr. Vinson, we are very happy to

fy the gentlemen who are with you for the record.

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ed for this legislation has been dramatically illustı rs in spiraling crime indexes in the area of crimes have brought with me today several charts prepared Sureau of Investigation which document the truly a se in the number of criminal assaults on banks. I pies of the charts for your individual convenience. been distributed.

o. 1 (see p. 81) shows that of all the major types of c or the years 1966 and 1967, including such crimes as ult and auto theft, the major increase has been in r ercent. More specifically, now turning to chart No. the six major forms of robbery, including street robl gest increase has been in the robbery of banks. Robb e increased 154 percent from the level of 1960.

to Chart No. 3 (see p. 82) and translated to number entages, this means that violations of the Federa Statute rose from 1,548 in 1963 to an alltime high of repersents a 4-year increase of more than 60 percent resent robberies of banks, savings and loan associatio edit unions.

o. 4 (see p. 82) presents the most current figures av 6-month period ending in February of this year the tions of the Bank Robbery Statute. This compar tions for the same 6-month period just 1 year ago. is represents a 13.5-percent increase in just 12 mont ressive as these figures are I believe their full impact d only when translated in terms of the injuries and rred during the robberies and in terms of dollars los nillions. In the last 90 days alone, 40 acts of violence o

true that banks are much more vulnerable to ey were even a decade ago.

recent years there has been a large shift in 5, which has led to an enormous proliferation of enters and a correspondingly large increase in the nks to serve suburban customers.

se branches are far more exposed to robbery and r, downtown banking establishments which are ranches usually have less police protection, they eas; they can easily be "cased" with little risk tion, and moreover, escape routes from branch ays or freeways are much better. There is concongestion for the bank robber to worry about in the downtown areas.

he modern design of branch banks which often phasis upon convenience, more emphasis upon ty. Banks of stone and mortar have given way to low counters near exits provide easy access to w branches are established in plain store facilien been established in trailers.

third factor in the increase in bank robberies is ogy on the part of burglars. Within the last year device known as the burning bar has been innumber of bank burglaries. Its components can on the open market for as little as $6.33. You owing the simple construction of a burning bar , p. 83). The FBI Laboratory has examined this at there is no known material currently being ure of safes and vaults which can withstand its rough 6 inches of tempered steel in about 15

e equipment in thousands of training programs and in daily contacts with individual banks and ssociations and local law enforcement groups are co ng educational campaigns to alert bankers to the dan lessly face.

tunately, many bankers view security measures with r indifference. They feel that their insurance will r any losses occasioned by robberies or burglaries and quipment is therefore an unnecessary expense. This s, however, the fact that the rise in bank crimes incr premiums which, in turn, can increase the cost of se tomers. More seriously, it also ignores the fact that i cy can replace the lives or well-being of bank employ and law enforcement officers killed or assaulted d

heless, a Nebraska banker recently advised the FBI ot pay to keep a light bulb burning at night over his had insurance. A Kansas banker, commenting foll Isaid that he had considered the installation of a side the vault, but that the cost of $70 was prohibit g night his bank was burglarized and damages to erty were estimated at $7,000.

gainst this background, it is our firm judgment tha e only effective means of insuring that financial ins ll protective equipment.

is, of course, a very broad range of such equipment ava airman, if I may, I would like to submit my entire s ecord and highlight the balance.

or PROXMIRE. Without objection, it is so ordered. prepared statement of Mr. Vinson may be found at p

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