,,ii #aac? ,,congress #a/ ,session ,s4 #abhb ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,july #aa1 #bjac ,ms4 ,w>r5 7= h]self1 ,mr4 ,mc,cain1 ,ms4 ,cantwell1 & ,mr4 ,k+7 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ,a ,,bill ,to r$uce risks to ! f9ancial sy/em by limit+ banks' ability to engage 9 c]ta9 risky activities & limit+ conflicts ( int]e/1 to re9/ate c]ta9 ,glass-,/eagall ,act protections t 7 repeal$ by ! ,gramm-,lea*-,bliley ,act1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! #ba/ ,c5tury ,glass-,/eagall ,act ( #bjac4 #b4 ,f9d+s & purpose 7a7 ,f9d+s ,congress f9ds t-- 7#a7 9 response to a f9ancial crisis & ! ensu+ ,great ,depression1 ,congress enact$ ! ,bank+ ,act ( #aicc1 kn[n z ! ,glass-,/eagall ,act1 to prohibit comm]cial banks f (f]+ inve/m5t bank+ & insurance s]vices2 7#b7 a s]ies ( d]egulatory decisions by ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em & ! ,(fice ( ! ,comptroll] ( ! ,curr5cy1 9 addition to decisions by ,f$]al c\rts1 p]mitt$ comm]cial banks to engage 9 an increas+ numb] ( risky f9ancial activities t _h previ\sly be5 re/rict$ "u ! ,glass-,/eagall ,act1 & also va/ly exp&$ ! mean+ ( ! bus9ess ( bank+ & closely relat$ activities 9 bank+ law2 7#c7 9 #aiii1 ,congress enact$ ! ,gramm-,lea*-,bliley ,act1 :i* repeal$ ! ,glass-,/eagall ,act sep>ation betwe5 comm]cial & inve/m5t bank+ & all[$ = complex cross-subsidies & int]connections betwe5 comm]cial & inve/m5t banks2 7#d7 =m] ,kansas ,city ,f$]al ,res]ve ,presid5t ,?omas ,ho5ig obs]v$ t ) ! elim9ation ( ,glass-,/eagall1 ! l>ge/ in/itutions ) ! greate/ ability to lev]age _! balance %eets increas$ _! risk pr(ile by gett+ into trad+1 m>ket mak+1 & h$ge fund activities1 add+ ev] great] complexity to _! balance %eets42 7#e7 ! ,f9ancial ,crisis ,inquiry ,report issu$ by ! ,f9ancial ,crisis ,inquiry ,commission conclud$ t1 9 ! ye>s betwe5 ! passage ( ,gramm-,lea* ,bliley & ! global f9ancial crisis1 regulation & sup]vision ( traditional bank+ _h be5 weak5$ significantly1 all[+ comm]cial banks & ?rifts to op]ate ) few] con/ra9ts & to engage 9 a wid] range ( f9ancial activities1 includ+ activities 9 ! %ad[ bank+ sy/em44 ,! ,commission also conclud$ t t8 d]egulation made ! f9ancial sy/em especially vuln]able to ! f9ancial crisis & exac]bat$ its effects42 7#f7 a report by ! ,f9ancial ,/ability ,ov]sight ,c\ncil pursuant to section #abc ( ! ,dodd-,frank ,wall ,/reet ,re=m & ,consum] ,protection ,act /ates t increas$ complexity & div]sity ( f9ancial activities at f9ancial in/itutions may %ift in/itutions t[>ds m risk-tak+1 increase ! level ( int]connect$ness among f9ancial firms1 & !re=e may increase sy/emic default risk4 ,^! pot5tial co/s may be exac]bat$ 9 cases :]e ! m>ket p]ceives div]se & complex f9ancial in/itutions z #8too big to fail1' :i* may lead to excessive risk tak+ & conc]ns ab\t moral haz>d42 7#g7 ! ,s5ate ,p]man5t ,subcommittee on ,inve/igations report1 ,wall ,/reet & ! ,f9ancial ,crisis3 ,anatomy ( a ,f9ancial ,collapse1 /ates t repeal ( ,glass-,/eagall made x m difficult = regulators to di/+ui% betwe5 activities int5d$ to b5efit cu/om]s v]sus ! f9ancial in/itution itself4 ,! exp&$ set ( f9ancial s]vices inve/m5t banks 7 all[$ to (f] also contribut$ to ! multiple & significant conflicts ( int]e/ t arose betwe5 "s inve/m5t banks & _! cli5ts dur+ ! f9ancial crisis42 7#h7 ! ,s5ate ,p]man5t ,subcommittee on ,inve/igations report1 ,j,p,morgan ,*ase ,:ale ,trades3 ,a ,case ,hi/ory ( ,d]ivatives ,risks & ,abuses1 describes h[ trad]s at ,j,p,morgan ,*ase made risky bets us+ excess deposits t 7 p>tly insur$ by ! ,f$]al ,gov]nm5t2 7#i7 9 ,europe1 ! ,vick]s ,indep5d5t ,commission on ,bank+ 7= ! ,unit$ ,k+dom7 & ! ,liikan5 ,report 7= ! ,euro area7 h bo? f\nd t !re is no inh]5t reason to bundle retail bank+ ) inve/m5t bank+ or o!r =ms ( relatively high risk securities trad+1 & ,european c\ntries are set on a pa? ( sep>at+ v>i\s activities t are curr5tly bundl$ toge!r 9 ! bus9ess ( bank+2 7#aj7 private sector actors pref] hav+ access to und]pric$ public sector insurance1 :e!r explicit 7= insur$ deposits7 or implicit 7= too big to fail f9ancial in/itutions71 to subsidize dang]\s levels ( risk-tak+1 :i*1 f a broad] social p]spective1 is n an advantage\s arrangem5t2 & 7#aa7 ! f9ancial crisis1 & ! regulatory response to ! crisis1 has l$ to m m]g]s betwe5 f9ancial in/itutions1 creat+ great] f9ancial sector consolidation & increas+ ! dom9ance ( a few l>ge1 complex f9ancial in/itutions t are g5]ally consid]$ to be too big to fail1 & !re=e are p]ceiv$ by ! m>kets z hav+ an implicit gu>antee f ! ,f$]al ,gov]nm5t to bail !m out 9 ! ev5t ( _! failure4 7b7 ,purpose ,! purposes ( ?is ,act are-- 7#a7 to r$uce risks to ! f9ancial sy/em by limit+ banks' ability to engage 9 activities o!r ?an socially valuable core bank+ activities2 7#b7 to protect taxpay]s & r$uce moral haz>d by remov+ explicit & implicit gov]nm5t gu>antees = high-risk activities outside ( ! core bus9ess ( bank+2 & 7#c7 to elim9ate conflicts ( int]e/ t arise f banks engag+ 9 activities f :i* _! pr(its are e>n$ at ! exp5se ( _! cu/om]s or cli5ts4 #c4 ,safe & s\nd bank+ 7a7 ,insur$ depository in/itutions ,section #ah7s7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7s77 is am5d$ by add+ at ! end ! foll[+3 7#f7 ,limitations on bank+ affiliations 7,a7 ,prohibition on affiliations ) nondepository entities ,an insur$ depository in/itution may n-- 7i7 be or become an affiliate ( any insurance company1 securities entity1 or swaps entity2 7ii7 be 9 common own]%ip or control ) any insurance company1 securities entity1 or swaps entity2 or 7iii7 engage 9 any activity t w\ld cause ! insur$ depository in/itution to qualify z an insurance company1 securities entity1 or swaps entity4 7,b7 ,individuals eligible to s]ve on bo>ds ( depository in/itutions 7i7 ,9 g5]al ,an individual :o is an (fic]1 director1 p>tn]1 or employee ( any securities entity1 insurance company1 or swaps entity may n s]ve at ! same "t z an (fic]1 director1 employee1 or o!r in/itution-affiliat$ p>ty ( any insur$ depository in/itution4 7ii7 ,exception ,clause 7i7 does n apply ) respect to s]vice by any individual :i* is o!rwise prohibit$ "u clause 7i71 if ! appropriate ,f$]al bank+ ag5cy det]m9es1 by regulation ) respect to a limit$ numb] ( cases1 t s]vice by su* an individual z an (fic]1 director1 employee1 or o!r in/itution-affiliat$ p>ty ( an insur$ depository in/itution w\ld n unduly influ5ce ! inve/m5t policies ( ! depository in/itution or ! advice t ! in/itution provides to cu/om]s4 7iii7 ,t]m9ation ( s]vice ,subject to a det]m9ation "u clause 7i71 any individual describ$ 9 clause 7i7 :o1 z ( ! date ( enactm5t ( ! #ba/ ,c5tury ,glass-,/eagall ,act ( #bjac1 is s]v+ z an (fic]1 director1 employee1 or o!r in/itution-affiliat$ p>ty ( any insur$ depository in/itution %all t]m9ate su* s]vice z soon z is practicable aft] su* date ( enactm5t1 & 9 no ev5t1 lat] ?an ! end ( ! #fj-;day p]iod beg9n+ on t date ( enactm5t4 7,c7 ,t]m9ation ( exi/+ affiliations & activities 7i7 ,ord]ly t]m9ation ( exi/+ affiliations & activities ,any affiliation1 common own]%ip or control1 or activity ( an insur$ depository in/itution ) any securities entity1 insurance company1 or swaps entity1 or any o!r p]son1 z ( ! date ( enactm5t ( ! #ba/ ,c5tury ,glass-,/eagall ,act ( #bjac1 :i* is prohibit$ "u subp>agraph 7,a7 %all be t]m9at$ z soon z is practicable1 & 9 no ev5t lat] ?an ! end ( ! #e-ye> p]iod beg9n+ on t date ( enactm5t4 7ii7 ,e>ly t]m9ation ,! appropriate ,f$]al bank+ ag5cy1 aft] opportunity = he>+1 at any "t1 may ord] t]m9ation ( an affiliation1 common own]%ip or control1 or activity prohibit$ by clause 7i7 be=e ! end ( ! #e-ye> p]iod describ$ 9 clause 7i71 if ! ag5cy det]m9es t-- 7,i7 su* action is necess>y to prev5t undue conc5tration ( res\rces1 decreas$ or unfair competition1 conflicts ( int]e/1 or uns\nd bank+ practices2 & 7,,ii7 is 9 ! public int]e/4 7iii7 ,ext5sion ,subject to a det]m9ation "u clause 7ii71 an appropriate ,f$]al bank+ ag5cy may ext5d ! #e-ye> p]iod describ$ 9 clause 7i7 z to any p>ticul> insur$ depository in/itution = n m ?an an additional #f mon?s at a "t1 if-- 7,i7 ! ag5cy c]tifies t su* ext5sion w\ld promote ! public int]e/ & w\ld n pose a significant ?reat to ! /ability ( ! bank+ sy/em or f9ancial m>kets 9 ! ,unit$ ,/ates2 & 7,,ii7 su* ext5sion1 9 ! aggregate1 does n exce$ #a ye> = any "o insur$ depository in/itution4 7iv7 ,requirem5ts = entities receiv+ an ext5sion ,^u receipt ( an ext5sion "u clause 7iii71 ! insur$ depository in/itution %all notify its %>ehold]s & ! g5]al public t x has fail$ to comply ) ! requirem5ts ( clause 7i74 7,d7 ,def9itions ,= purposes ( ?is p>agraph1 ! foll[+ def9itions %all apply3 7i7 ,insurance company ,! t]m insurance company has ! same mean+ z 9 section #b7q7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda7q774 7ii7 ,securities entity ,except z provid$ 9 clause 7iii71 ! t]m securities entity-- 7,i7 includes any entity engag$ 9-- 7aa7 ! issue1 flotation1 und]writ+1 public sale1 or di/ribution ( /ocks1 bonds1 deb5tures1 notes1 or o!r securities2 7bb7 m>ket mak+2 7cc7 activities ( a brok] or deal]1 z ^? t]ms are def9$ 9 section #c7;a7 ( ! ,securities ,ex*ange ,act ( #aicd2 7dd7 activities ( a futures commission m]*ant2 7ee7 activities ( an inve/m5t advis] or inve/m5t company1 z ^? t]ms are def9$ 9 ! ,inve/m5t ,advis]s ,act ( #aidj & ! ,inve/m5t ,company ,act ( #aidj1 respectively2 or 7ff7 h$ge fund or private equity inve/m5ts 9 ! securities ( ei!r privately or publicly held companies2 & 7,,ii7 does n include a bank t1 pursuant to its au?oriz$ tru/ & fiduci>y activities1 pur*ases & sells inve/m5ts = ! acc\nt ( its cu/om]s or provides f9ancial or inve/m5t advice to its cu/om]s4 7iii7 ,swaps entity ,! t]m swaps entity means any swap deal]1 security-bas$ swap deal]1 major swap p>ticipant1 or major security-bas$ swap p>ticipant1 t is regi/]$ "u-- 7,i7 ! ,commodity ,ex*ange ,act 7#g ,u4,s4,c4 #a et seq472 or 7,,ii7 ! ,securities ,ex*ange ,act ( #aicd 7#ae ,u4,s4,c4 #gh;a et seq474 7iv7 ,insur$ depository in/itution ,! t]m insur$ depository in/itution-- 7,i7 has ! same mean+ z 9 section #c7;c77#b72 & 7,,ii7 does n include a sav+s association controll$ by a sav+s & loan hold+ company1 z describ$ 9 section #aj7;c77#i77;,c7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7c77#i77;,c774 4 7b7 ,limitation on bank+ activities ,section #ba ( ! ,bank+ ,act ( #aicc 7#ab ,u4,s4,c4 #cgh7 is am5d$ by add+ at ! end ! foll[+3 7c7 ,bus9ess ( receiv+ deposits ,= purposes ( ?is section1 ! t]m bus9ess ( receiv+ deposits includes ! e/abli%m5t & ma9t5ance ( any transaction acc\nt 7z def9$ 9 section #ai7;b77#a77;,c7 ( ! ,f$]al ,res]ve ,act74 4 7c7 ,p]mitt$ activities ( national banks ,section #bd 7,sev5?7 ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates 7#ab ,u4,s4,c4 #bd 7,sev5?77 is am5d$ to read z foll[s3 ,sev5?4 7,a7 ,to ex]cise by its bo>d ( directors or duly au?oriz$ (fic]s or ag5ts1 subject to law1 all su* p[]s z are necess>y to c>ry on ! bus9ess ( bank+4 7,b7 ,z us$ 9 ?is p>agraph1 ! t]m bus9ess ( bank+ %all be limit$ to ! foll[+ core bank+ s]vices3 7i7 ,receiv+ deposits ,a national bank+ association may engage 9 ! bus9ess ( receiv+ deposits4 7ii7 ,ext5sions ( cr$it ,a national bank+ association may-- 7,i7 ext5d cr$it to individuals1 bus9esses1 n = pr(it organizations1 & o!r entities2 7,,ii7 disc\nt & negotiate promissory notes1 drafts1 bills ( ex*ange1 & o!r evid5ces ( debt2 & 7,,iii7 loan money on p]sonal security4 7iii7 ,paym5t sy/ems ,a national bank+ association may p>ticipate 9 paym5t sy/ems1 def9$ z in/rum5ts1 bank+ proc$ures1 & int]bank funds transf] sy/ems t ensure ! circulation ( money4 7iv7 ,co9 & bullion ,a national bank+ association may buy1 sell1 & ex*ange co9 & bullion4 7v7 ,inve/m5ts 9 securities 7,i7 ,9 g5]al ,a national bank+ association may inve/ 9 inve/m5t securities1 def9$ z m>ketable obligations evid5c+ indebt$ness ( any p]son1 cop>tn]%ip1 association1 or corporation 9 ! =m ( bonds1 notes1 or deb5tures 7commonly kn[n z inve/m5t securities71 obligations ( ! ,f$]al ,gov]nm5t1 or any ,/ate or subdivision !re(1 "u su* fur!r def9ition ( ! t]m inve/m5t securities z ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,deposit ,insurance ,corporation1 & ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em may jo9tly prescribe1 by regulation4 7,,ii7 ,limitations ,! bus9ess ( deal+ 9 securities & /ock by ! association %all be limit$ to pur*as+ & sell+ su* securities & /ock )\t rec\rse1 solely ^u ! ord]1 & = ! acc\nt (1 cu/om]s1 & 9 no case = its own acc\nt1 & ! association %all n und]write any issue ( securities or /ock4 ,! association may pur*ase = its own acc\nt inve/m5t securities "u su* limitations & re/rictions z ! ,comptroll] ( ! ,curr5cy1 ! ,f$]al ,deposit ,insurance ,corporation1 & ! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em may jo9tly prescribe1 by regulation4 ,9 no ev5t %all ! total am\nt ( ! inve/m5t securities ( any "o obligor or mak]1 held by ! association = its own acc\nt1 exce$ at any "t #aj p]c5t ( its capital /ock actually paid 9 & unimpair$ & #aj p]c5t ( its unimpair$ surplus fund1 except t su* limitation %all n require any association to dispose ( any securities lawfully held by x on ,augu/ #bc1 #aice4 7,c7 ,prohibition aga9/ transactions involv+ /ructur$ or syn!tic products ,a national bank+ association %all n inve/ 9 a /ructur$ or syn!tic product1 a f9ancial in/rum5t 9 :i* a return is calculat$ bas$ on ! value (1 or by ref]5ce to ! p]=mance (1 a security1 commodity1 swap1 o!r asset1 or an entity1 or any index or basket compos$ ( securities1 commodities1 swaps1 o!r assets1 or entities1 o!r ?an cu/om>ily det]m9$ int]e/ rates1 or o!rwise engage 9 ! bus9ess ( receiv+ deposits or ext5d+ cr$it = transactions involv+ /ructur$ or syn!tic products4 4 7d7 ,p]mitt$ ,activities ( ,f$]al ,sav+s ,associations 7#a7 ,9 g5]al ,section #e7;c77#a7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfd7;c77#a77 is am5d$-- 7,a7 by /rik+ subp>agraph 7,q72 & 7,b7 by r$esignat+ subp>agraphs 7,r7 ?r\gh 7,u7 z subp>agraphs 7,q7 ?r\gh 7,t71 respectively4 7#b7 ,con=m+ am5dm5t ,section #aj7;c77#i77;,a7 ( ! ,home ,own]s' ,loan ,act 7#ab ,u4,s4,c4 #adfg;a7c77#i77;,a77 is am5d$ by /rik+ p]mitt$-- & all t foll[s ?r\gh clause 7ii7 & ins]t+ p]mitt$ "u p>agraph 7#a77;,c7 or 7#b744 7e7 ,closely relat$ activities ,section #d7;c7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7;c77 is am5d$-- 7#a7 9 p>agraph 7#h71 by /rik+ _h be5 det]m9$ & all t foll[s ?r\gh ! end & ins]t+ ! foll[+3 8are s closely relat$ to bank+ s z to be a prop] incid5t !reto1 z provid$ "u ?is p>agraph or any rule or regulation issu$ by ! ,bo>d "u ?is p>agraph1 provid$ t ! foll[+ %all n be consid]$ closely relat$ = purposes ( ?is p>agraph3 7,a7 ,s]v+ z an inve/m5t advisor 7z def9$ 9 section #b7;a77#bj7 ( ! ,inve/m5t ,company ,act ( #aidj 7#ae ,u4,s4,c4 #hj;a-#b7;a77#bj777 to an inve/m5t company regi/]$ "u t ,act1 includ+ sponsor+1 organiz+1 & manag+ a clos$-end inve/m5t company4 7,b7 ,ag5cy transactional s]vices = cu/om] inve/m5ts1 except t ?is subp>agraph may n be con/ru$ z prohibit+ pur*ases & sales ( inve/m5ts = ! acc\nt ( cu/om]s conduct$ by a bank 7or subsidi>y !re(7 pursuant to ! bank's tru/ & fiduci>y p[]s4 7,c7 ,inve/m5t transactions z pr9cipal1 except = activities specifically all[$ by p>agraph 7#ad74 7,d7 ,managem5t consult+ & c\nsel+ activities4 2 7#b7 9 p>agraph 7#ac71 by /rik+ or at ! end2 7#c7 by r$esignat+ p>agraph 7#ad7 z p>agraph 7#ae72 & 7#d7 by ins]t+ aft] p>agraph 7#ac7 ! foll[+3 7#ad7 pur*as+1 z an end us]1 any swap1 to ! ext5t t-- 7,a7 ! pur*ase ( any su* swap occurs contemporane\sly ) ! und]ly+ h$g$ item or h$g$ transaction2 7,b7 !re is =mal docum5tation id5tify+ ! h$g+ relation%ip ) p>ticul>ity at ! inception ( ! h$ge2 & 7,c7 ! swap is be+ us$ to h$ge aga9/ exposure to-- 7i7 *anges 9 ! value ( an individual recogniz$ asset or liability or an id5tifi$ portion !re( t is attributable to a p>ticul> risk2 7ii7 *anges 9 int]e/ rates2 or 7iii7 *anges 9 ! value ( curr5cy2 or 4 7f7 ,prohibit$ activities ,section #d7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7;a77 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ or at ! end2 7#b7 9 p>agraph 7#b71 by /rik+ ! p]iod at ! end & ins]t+ 2 or2 & 7#c7 by ins]t+ be=e ! undesignat$ matt] foll[+ p>agraph 7#b71 ! foll[+3 7#c7 ) ! exception ( ! activities p]mitt$ "u subsection 7c71 engage 9 ! bus9ess ( a securities entity or a swaps entity1 z ^? t]ms are def9$ 9 section #ah7s77#f77;,d7 ( ! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahbh7s77#f77;,d771 includ+1 )\t limitation1 deal+ or mak+ m>kets 9 securities1 repur*ase agreem5ts1 ex*ange trad$ & ov]-!-c\nt] swaps1 z def9$ by ! ,commodity ,futures ,trad+ ,commission & ! ,securities & ,ex*ange ,commission1 or /ructur$ or syn!tic products1 z def9$ 9 section #bd 7,sev5?7 ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates 7#ab ,u4,s4,c4 #bd 7,sev5?771 or any o!r ov]-!-c\nt] securities1 swaps1 contracts1 or any o!r agreem5t t d]ives its value f1 or takes on ! =m (1 su* securities1 d]ivatives1 or contracts2 7#d7 engage 9 propriet>y trad+1 z provid$ by section #ac1 or any rule or regulation "u t section2 7#e7 own1 sponsor1 or inve/ 9 a h$ge fund1 or private equity fund1 or any o!r fund1 z provid$ by section #ac1 or any rule or regulation "u t section1 or any o!r fund :i* exhibits ! *>act]i/ics ( a fund t takes on propriet>y trad+ activities or positions2 7#f7 hold ineligible securities or d]ivatives2 7#g7 engage 9 m>ket-mak+2 or 7#h7 engage 9 prime brok]age activities4 4 7g7 ,anti-,evasion 7#a7 ,9 g5]al ,any attempt to /ructure any contract1 inve/m5t1 in/rum5t1 or product 9 su* a mann] t ! purpose or effect ( su* contract1 inve/m5t1 in/rum5t1 or product is to evade or attempt to evade ! prohibitions describ$ 9 section #ah7s77#f7 ( ! ,f$]al ,deposit ,insurance ,act1 section #ba7;c7 ( ! ,bank+ ,act ( #aicc1 p>agraph 7,sev5?7 ( section #bd ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates1 section #e7;c77#a7 ( ! ,home ,own]s' ,loan ,act1 or section #d7;a7 ( ! ,bank ,hold+ ,company ,act ( #aief1 z add$ or am5d$ by ?is section1 %all be consid]$ a violation ( ! ,f$]al ,deposit ,insurance ,act1 ! ,bank+ ,act ( #aicc1 section #bd ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates1 ! ,home ,own]s' ,loan ,act1 & ! ,bank ,hold+ ,company ,act ( #aief1 respectively4 7#b7 ,t]m9ation 7,a7 ,9 g5]al ,not)/&+ any o!r provision ( law1 if a ,f$]al ag5cy has reasonable cause to believe t an insur$ depository in/itution1 securities entity1 swaps entity1 insurance company1 bank hold+ company1 or o!r entity ov] :i* t ag5cy has regulatory au?ority has made an inve/m5t or engag$ 9 an activity 9 a mann] t functions z an evasion ( ! prohibitions describ$ 9 p>agraph 7#a7 7includ+ ?r\gh an abuse ( any p]mitt$ activity7 or o!rwise violates su* prohibitions1 ! ag5cy %all-- 7i7 ord]1 aft] due notice & opportunity = he>+1 ! entity to t]m9ate ! activity &1 z relevant1 dispose ( ! inve/m5t2 7ii7 ord]1 aft] ! proc$ures describ$ 9 clause 7i71 ! entity to pay a p5alty equal to #aj p]c5t ( ! entity's net pr(its1 av]ag$ ov] ! previ\s #c ye>s1 into ! ,unit$ ,/ates ,treasury2 & 7iii7 initiate proce$+s describ$ 9 #ab ,u4,s4,c4 #ahah7;e7 = individuals involv$ 9 evad+ ! prohibitions describ$ 9 p>agraph 7#a74 7,b7 ,con/ruction ,no?+ 9 ?is p>agraph %all be con/ru$ to limit ! inh]5t au?ority ( any ,f$]al ag5cy or ,/ate regulatory au?ority to fur!r re/rict any inve/m5ts or activities "u o!rwise applicable provisions ( law4 7#c7 ,report+ requirem5t ,ea* ye>1 ea* ,f$]al ag5cy hav+ regulatory au?ority ov] any entity describ$ 9 p>agraph 7#b77;,a7 %all issue a report to ! ,committee on ,bank+1 ,h\s+1 & ,urban ,affairs ( ! ,s5ate & ! ,committee on ,f9ancial ,s]vices ( ! ,h\se ( ,repres5tatives1 & %all make su* report available to ! public4 ,! report %all id5tify ! numb] & "* ( any activities t took place 9 ! prec$+ ye> t function z an evasion ( ! prohibitions describ$ 9 p>agraph 7#a71 ! names ( ! p>ticul> entities engag$ 9 ^? activities1 & ! actions ( ! ag5cy tak5 "u p>agraph 7#b74 7h7 ,atte/ation ,section #d ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc71 z am5d$ by section #c7;a77#a7 ( ?is ,act1 is am5d$ by add+ at ! end ! foll[+3 7k7 ,atte/ation ,executives ( any bank hold+ company or its affiliate %all atte/ 9 writ+1 "u p5alty ( p]jury1 t ! bank hold+ company or affiliate is n engag$ 9 any activity t is prohibit$ "u subsection 7a71 except to ! ext5t t su* activity is p]mitt$ "u subsection 7c74 4 #d4 ,repeal ( ,gramm-,lea*-,bliley ,act provisions 7a7 ,t]m9ation ( f9ancial hold+ company designation 7#a7 ,9 g5]al ,section #d ( ! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahdc7 is am5d$ by /rik+ subsections 7k71 7l71 7m71 7n71 & 7o74 7#b7 ,transition 7,a7 ,ord]ly t]m9ation ( exi/+ affiliation ,9 ! case ( a bank hold+ company :i*1 pursuant to ! am5dm5ts made by p>agraph 7#a71 is no long] au?oriz$ to control or be affiliat$ ) any entity t 0 p]missible = a f9ancial hold+ company on ! day be=e ! date ( enactm5t ( ?is ,act1 any affiliation1 own]%ip or control1 or activity by ! bank hold+ company :i* is n p]mitt$ = a bank hold+ company %all be t]m9at$ z soon z is practicable1 & 9 no ev5t lat] ?an ! end ( ! #e-ye> p]iod beg9n+ on ! date ( enactm5t ( ?is ,act4 7,b7 ,e>ly t]m9ation ,! ,bo>d ( ,gov]nors ( ! ,f$]al ,res]ve ,sy/em 79 ?is section ref]r$ to z ! ,bo>d71 aft] opportunity = he>+1 at any "t1 may t]m9ate an affiliation prohibit$ by subp>agraph 7,a7 be=e ! end ( ! #e-ye> p]iod describ$ 9 subp>agraph 7,a71 if ! ,bo>d det]m9es t su* action-- 7i7 is necess>y to prev5t undue conc5tration ( res\rces1 decreas$ or unfair competition1 conflicts ( int]e/1 or uns\nd bank+ practices2 & 7ii7 is 9 ! public int]e/4 7,c7 ,ext5sion ,subject to a det]m9ation "u subp>agraph 7,b71 ! ,bo>d may ext5d ! #e-ye> p]iod describ$ 9 subp>agraph 7,a71 z to any p>ticul> bank hold+ company1 = n m ?an an additional #f mon?s at a "t1 if-- 7i7 ! ,bo>d c]tifies t su* ext5sion w\ld promote ! public int]e/ & w\ld n pose a significant risk to ! /ability ( ! bank+ sy/em or f9ancial m>kets ( ! ,unit$ ,/ates2 & 7ii7 su* ext5sion1 9 ! aggregate1 does n exce$ #a ye> = any "o bank hold+ company4 7,d7 ,requirem5ts = entities receiv+ an ext5sion ,^u receipt ( an ext5sion "u subp>agraph 7,c71 ! bank hold+ company %all notify its %>ehold]s & ! g5]al public t x has fail$ to comply ) ! requirem5ts ( subp>agraph 7,a74 7#c7 ,te*nical & con=m+ am5dm5ts 7,a7 ,bank hold+ company act ( #aief ,! ,bank ,hold+ ,company ,act ( #aief 7#ab ,u4,s4,c4 #ahda et seq47 is am5d$-- 7i7 9 section #b 7#ab ,u4,s4,c4 #ahda7-- 7,i7 by /rik+ subsection 7p72 & 7,,ii7 by r$esignat+ subsection 7q7 z subsection 7p72 7ii7 9 section #e7;c7 7#ab ,u4,s4,c4 #ahdd7;c771 by /rik+ p>agraphs 7#c71 7#d71 & 7#e72 & 7iii7 9 section #e 7#ab ,u4,s4,c4 #ahdd71 by /rik+ subsection 7g74 7#d7 ,,fdia ,! ,f$]al ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahaa et seq47 is am5d$-- 7,a7 by /rik+ sections #de & #df 7#ab ,u4,s4,c4 #ahcav1 #ahcaw72 & 7,b7 by r$esignat+ sections #dg ?r\gh #ej z sections #de ?r\gh #dh1 respectively4 7#e7 ,gramm-lea*-bliley ,subtitle ,b ( title ,i ( ! ,gramm-,lea*-,bliley ,act is am5d$ by /rik+ section #aae 7#ab ,u4,s4,c4 #ahbj;a74 7b7 ,f9ancial subsidi>ies ( national banks disall[$ 7#a7 ,9 g5]al ,section #eacf;,a ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates 7#ab ,u4,s4,c4 #bd;a7 is repeal$4 7#b7 ,transition 7,a7 ,ord]ly t]m9ation ( exi/+ affiliation ,9 ! case ( a national bank :i*1 pursuant to ! am5dm5t made by p>agraph 7#a71 is no long] au?oriz$ to control or be affiliat$ ) a f9ancial subsidi>y z ( ! date ( enactm5t ( ?is ,act1 su* affiliation1 own]%ip or control1 or activity %all be t]m9at$ z soon z is practicable1 & 9 no ev5t lat] ?an ! end ( ! #e-ye> p]iod beg9n+ on ! date ( enactm5t ( ?is ,act4 7,b7 ,e>ly t]m9ation ,! ,comptroll] ( ! ,curr5cy 79 ?is section ref]r$ to z ! ,comptroll]71 aft] opportunity = he>+1 at any "t1 may t]m9ate an affiliation prohibit$ by subp>agraph 7,a7 be=e ! end ( ! #e-ye> p]iod describ$ 9 subp>agraph 7,a71 if ! ,comptroll] det]m9es1 hav+ due reg>d = ! purposes ( ?is ,act1 t-- 7i7 su* action is necess>y to prev5t undue conc5tration ( res\rces1 decreas$ or unfair competition1 conflicts ( int]e/1 or uns\nd bank+ practices2 & 7ii7 is 9 ! public int]e/4 7,c7 ,ext5sion ,subject to a det]m9ation "u subp>agraph 7,b71 ! ,comptroll] may ext5d ! #e-ye> p]iod describ$ 9 subp>agraph 7,a7 z to any p>ticul> national bank = n m ?an an additional #f mon?s1 if-- 7i7 ! ,comptroll] c]tifies t su* ext5sion w\ld promote ! public int]e/ & w\ld n pose a significant risk to ! /ability ( ! bank+ sy/em or f9ancial m>kets ( ! ,unit$ ,/ates2 & 7ii7 su* ext5sion1 9 ! aggregate1 does n exce$ #a ye> = any s+le national bank4 7,d7 ,requirem5ts = entities receiv+ an ext5sion ,^u receipt ( an ext5sion "u subp>agraph 7,c71 ! national bank %all notify its %>ehold]s & ! g5]al public t x has fail$ to comply ) ! requirem5ts describ$ 9 subp>agraph 7,a74 7#c7 ,te*nical & con=m+ am5dm5t ,! #bj? undesignat$ p>agraph ( section #i ( ! ,f$]al ,res]ve ,act 7#ab ,u4,s4,c4 #cce7 is am5d$ by /rik+ ! la/ s5t5ce4 7#d7 ,cl]ical am5dm5t ,! table ( sections = *apt] "o ( title ,,lxii ( ! ,revis$ ,/atutes ( ! ,unit$ ,/ates is am5d$ by /rik+ ! item relat+ to section #eacf;,a4 7c7 ,repeal ( provision relat+ to =eign banks fil+ z f9ancial hold+ companies ,section #h7;c7 ( ! ,int]national ,bank+ ,act ( #aigh 7#ab ,u4,s4,c4 #cajf7;c77 is am5d$ by /rik+ p>agraph 7#c74 #e4 ,repeal ( bankruptcy provisions ,title #aa1 ,unit$ ,/ates ,code1 is am5d$ by /rik+ sections #eee1 #eei1 #efj1 #efa1 & #efb4