Foreign Bondholders Protective Council, inc.

Under Title II of the Securities Act of 1933, a provision was made for the creation of a Corporation of Foreign Security Holders, to be effective when the President of the United States "finds that its taking effect is in the public interest, and by proclamation so declares." It was contemplated that the activities of the new corporation would be similar to those of the British Corporation of Foreign Bondholders which has an official status in negotiating with foreign issuers. President Franklin D. Roosevelt decided that it was not in the public interest to set up a corporation, provided that an adequate private organization could be created instead. To that end, the Secretaries of State and Treasury and the Chairman of the Federal Trade Commission requested in 1933 the formation of the Foreign Bondholders Protective Council, Inc., to negotiate with foreign governments on behalf of American holders of defaulted foreign bonds. The Council was a private, nonprofit public service organization. It did not act as agent, nor did it enter into any kind of agreement with a bondholder.