The chairman of the House Banking Committee, in a letter to Federal Reserve Board chaiman Arthur Burns, has accused the Fed of favoring suburban over downtown locations for bank facilities to the detriment of the nation's cities.
Rep. Henry S. Reuss (D-Wis.), who chairs the Banking Committee's Subcommittee on Cities, complained that Fed guidelines resulted in the placement of the new Miami branch of the Atlanta Federal Reserve bank in the suburbs. Reuss said the decision was made against the recommendations of the local branch manager and the Atlanta bank.
Reuss said the March 1977 location guidelines "are a retreat from the board's prior sensitivity to the advantages fo central city locations for financial institutions." He said the guidelines are "clearly contrary to the administration's encouraging central city economic development."
Reuss said a Fed estimate that the suburbs site would cost more than $7 contains "so great a probably margin million less than the downtown site of error" as to make it unreliable.
A spokesman for Burns said the Fed chairman has received the letter and will respond to it in due course. The spokesman for Burns said the Fed chairman has received the letter and will respond to it in due course. The spokesman said the downtown sit under initial consideration for the Miami branch was unsuitable which is why the suburban sit was chosen. He noted, howere, that the Fed is inspecting downtown Baltimore sites for a new branch there.