The legislation currently under discussion by the Joint Subcommittee can be traced back to 1976 as originating in HB 796 of the 1976 Session of the General Assembly. HB 796 was the result of recommendations made to the State Corporation Commission by Carter Golembe Associates, a consulting firm hired by the Commission to make recommendations to the Commission on bow Virginia's laws regulating financial institutions might be updated in the public interest. Delegate Ralph L. Axselle, Jr. was asked to serve as patron of the original bill and also of its successor, HB 1285 of the 1977 Session. While HB 796 was passed by the 1976 Session of the General Assembly, as Chapter 658 of the 1976 Acts of Assembly, many controversial items had been amended out of the bill during the legislative process (Le-branching provisions, regulation of financial institution holding companies, etc.).

The purpose of HB 1285 of the 1977 Session was to enact several of the controversial items removed from HB 796 during the legislative process and to enact several other conforming amendments and refinements to the original bill. HB 1285 passed the House in 1977 but the Senate felt they needed more study of the legislation and as a result, Senator William E. Fears, Chairman of the Senate Commerce and Labor Committee, appointed Senators Peter K. Babalas, Edward E. Holland, Madison E. Marye and Nathan H. Miller to serve as a Subcommittee to study HB 1285 and report back to the full Committee at the 1978 Session of the General Assembly.

The House Corporations, Insurance and Banking Committee was asked to appoint a like number of Delegates to form a Joint Subcommittee to study the issues contained in HB 1285. Delegate Robert R. Gwathmey, III, Chairman of the Committee, appointed Delegates A. L. Philpott, Richard M. Bagley, George H. Heilig, and Alexander B. McMurtrie, Jr.

Also serving as ex officio members of the Subcommittee representing the banking industry in Virginia were:

John B. Bernhardt, from the Virginia National Bank of Norfolk;

Frederick Deane, Jr., from the Bank of Virginia Company of Richmond;

James M. Dooley, from the Hanover National Bank of Ashland;

Harry B. Grymes, from the Virginia Capitol Bank of Richmond;

C. A. Jewell, from the 1st City Bank of Newport News;

Randolph W. McElroy, from the First and Merchants National Bank of Richmond;

Douglas D. Monroe, Jr., from the Chesapeake National Bank of Kilmarnock;

Lawrence N. Smith, from United Virginia Bank of Norfolk;

S. B. Spencer, from the 1st National Bank of Farmville;

Joe W. West, from the Covington National Bank.

L. Willis Robertson, Jr. and Hugh P. Fisher, III of the Division of Legislative Services served as staff to the Joint Subcommittee.