Sponsored by Sen. John W. Kern

John W. Kern

John Worth Kern was a Democratic United States Senator from Indiana. While the title was not official, he is considered to be the first Senate Majority leader , while serving concurrently as Chairman of the Senate Democratic Caucus.Born in Alto, Indiana, Kern studied law at the University of...

 (D) of Indiana

Indiana

Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...

, the Kern Amendment amended the Clayton Anti-Trust Act of 1914 by forbidding a Director, officer, or employee of any Reserve Bank

Reserve Bank

Reserve Bank can amongst other things be:*Reserve Bank of Australia*Reserve Bank of Fiji*Reserve Bank of India*Reserve Bank of New Zealand*South African Reserve Bank*Federal Reserve Bank *Reserve Bank of Vietnam...

 having resources in excess of $5,000,000 acting in any similar capacity in another bank; however, it allowed an officer of a FED member bank, with the consent of the Federal Reserve Board, to hold a similar post in two other banks provided they were not in substantial competition with the member bank. In essence, the amendment lessened the prohibition against interlocking directorates dictated by the Clayton Act originally scheduled to go into effect on Oct. 15th, 1916.