,,ii  #aacth ,,congress  #ast ,session  
,s4 #ihe  ,,in ,,the ,,senate ,,of ,,the
 ,,united ,,states  ,may #af1 #bjac ,mr4
 ,harkin introduced the following bill2 
which was read twice and referred to the
 ,committee on ,banking1 ,housing1 and  
,urban ,affairs  ,a ,,bill  ,to repeal  
certain provisions of the               
,gramm-,leach-,bliley ,act and revive   
the separation between commercial       
banking and the securities business1 in 
the manner provided in the ,banking ,act
 of #aicc1 the so-called                
,glass-,steagall ,act1 and for other    
purposes4  #a4 ,short title ,this ,act  
may be cited as the ,return to ,prudent 
,banking ,act of #bjac4  #b4            
,glass-,steagall revived  7a7 ,wall     
between commercial banks and securities 
activities reestablished ,section #ah of
 the ,federal ,deposit ,insurance ,act  
7#ab ,u4,s4,c4 #ahbh71 as amended by    
section #fae7;a7 of the ,dodd-,frank    
,wall ,street ,reform and ,consumer     
,protection ,act1 is amended by adding  

at the end the following new subsection3
  7aa7 ,limitations on security         
affiliations  7#a7 ,prohibition on      
affiliation between insured depository  
institutions and investment banks or    
securities firms ,an insured depository 
institution may not be or become an     
affiliate of any broker or dealer1 any  
investment adviser1 any investment      
company1 or any other person engaged    
principally in the issue1 flotation1    
underwriting1 public sale1 or           
distribution at wholesale or retail or  
through syndicate participation of      
stocks1 bonds1 debentures1 notes1 or    
other securities4  7#b7 ,prohibition on 
officers1 directors and employees of    
securities firms service on boards of   
depository institutions  7,a7 ,in       
general ,an individual who is an        
officer1 director1 partner1 or employee 
of any broker or dealer1 any investment 
adviser1 any investment company1 or any 
other person engaged principally in the 
issue1 flotation1 underwriting1 public  

sale1 or distribution at wholesale or   
retail or through syndicate             
participation of stocks1 bonds1         
debentures1 notes1 or other securities  
may not serve at the same time as an    
officer1 director1 employee1 or other   
institution-affiliated party of any     
insured depository institution4  7,b7   
,exception ,subparagraph 7,a7 shall not 
apply with respect to service by any    
individual which is otherwise prohibited
 under such subparagraph if the         
appropriate ,federal banking agency     
determines1 by regulation with respect  
to a limited number of cases1 that      
service by such individual as an        
officer1 director1 employee1 or other   
institution-affiliated party of any     
insured depository institution would not
 unduly influence the investment        
policies of the depository institution  
or the advice the institution provides  
to customers4  7,c7 ,termination of     
service ,subject to a determination     
under subparagraph 7,b71 any individual 

described in subparagraph 7,a7 who1 as  
of the date of enactment of the ,return 
to ,prudent ,banking ,act of #bjac1 is  
serving as an officer1 director1        
employee1 or other                      
institution-affiliated party of any     
insured depository institution shall    
terminate such service as soon as       
practicable after such date of enactment
 and no later than the end of the       
#fj-;day period beginning on such date4 
7#c7 ,termination of existing           
affiliation  7,a7 ,orderly wind-down of 
existing affiliation ,any affiliation of
 an insured depository institution with 
any broker or dealer1 any investment    
adviser1 any investment company1 or any 
other person1 as of the date of         
enactment of the ,return to ,prudent    
,banking ,act of #bjac1 which is        
prohibited under paragraph 7#a7 shall be
 terminated as soon as practicable and  
in any event no later than the end of   
the #b-year period beginning on such    
date of enactment4  7,b7 ,early         

termination ,the appropriate ,federal   
banking agency1 after opportunity for   
hearing1 may terminate1 at any time1 the
 authority conferred by the preceding   
subparagraph to continue any affiliation
 subject to such subparagraph until the 
end of the period referred to in such   
subparagraph if the agency determines1  
having due regard for the purposes of   
this subsection and the ,return to      
,prudent ,banking ,act of #bjac1 that   
such action is necessary to prevent     
undue concentration of resources1       
decreased or unfair competition1        
conflicts of interest1 or unsound       
banking practices and is in the public  
interest4  7,c7 ,extension ,subject to a
 determination under subparagraph 7,b71 
an appropriate ,federal banking agency  
may extend the #b-year period referred  
to in subparagraph 7,a7 from time to    
time as to any particular insured       
depository institution for not more than
 #f months at a time1 if1 in the        
judgment of the agency1 such an         

extension would not be detrimental to   
the public interest1 but no such        
extensions shall in the aggregate exceed
 #a year4  7#d7 ,definitions ,for       
purposes of this subsection--  7,a7 the 
terms broker and dealer have the same   
meanings as in section #c7;a7 of the    
,securities ,exchange ,act of #aicd 7#ae
 ,u4,s4,c4 #gh;c7a772 and  7,b7 the     
terms investment adviser and investment 
company have the same meanings as in    
section #bjb of the ,investment         
,advisers ,act of #aidj 7#ae ,u4,s4,c4  
#hj;b-#b7 and section #c of the         
,investment ,company ,act of #aidj 7#ae 
,u4,s4,c4 #hj;a-#c71 respectively4  4   
7b7 ,prohibition on banking activities  
by securities firms clarified ,section  
#ba of the ,banking ,act of #aicc 7#ab  
,u4,s4,c4 #cgh7 is amended by adding at 
the end the following new subsection3   
7c7 ,business of receiving deposits ,for
 purposes of this section1 the term     
business of receiving deposits includes 
the establishment and maintenance of any

 transaction account 7as defined in     
section #ai7;b77#a77;,c7 of the ,federal
 ,reserve ,act74  4  7c7 ,continued     
applicability of ,,ici vs4 ,camp  7#a7  
,in general ,the ,congress ratifies the 
interpretation of the paragraph         
designated the ,seventh of section #eacf
 of the ,revised ,statutes of the       
,united ,states 7#ab ,u4,s4,c4 #bd1 as  
amended by section #af of the ,banking  
,act of #aicc and subsequent amendments7
 and section #ba of the ,banking ,act of
 #aicc 7#ab ,u4,s4,c4 #cgh7 by the      
,supreme ,court of the ,united ,states  
in the case of ,investment ,company     
,institute v4 ,camp 7#dja ,u4,s4 #fag et
 seq4 7#aiga77 with regard to the       
permissible activities of banks and     
securities firms1 except to the extent  
expressly prescribed otherwise by this  
section4  7#b7 ,applicability of        
reasoning ,the reasoning of the ,supreme
 ,court of the ,united ,states in the   
case referred to in paragraph 7#a7 with 
respect to sections #bj and #cb of the  

,banking ,act of #aicc 7as in effect    
prior to the date of enactment of the   
,gramm-,leach-,bliley ,act7 shall       
continue to apply to subsection 7aa7 of 
section #ah of the ,federal ,deposit    
,insurance ,act 7as added by subsection 
7a7 of this section7 except to the      
extent the scope and application of such
 subsection as enacted exceed the scope 
and application of such sections #bj and
 #cb4  7#c7 ,limitation on agency       
interpretation or judicial construction 
,no appropriate ,federal banking agency1
 as defined in section #c of the        
,federal ,deposit ,insurance ,act1 by   
regulation1 order1 interpretation1 or   
other action1 and no court within the   
,united ,states may construe the        
paragraph designated the ,seventh of    
section #eacf of the ,revised ,statutes 
of the ,united ,states 7#ab ,u4,s4,c4   
#bd1 as amended by section #af of the   
,banking ,act of #aicc and subsequent   
amendments71 section #ba of the ,banking
 ,act of #aicc1 or section #ah7;aa7 of  

the ,federal ,deposit ,insurance ,act   
more narrowly than the reasoning of the 
,supreme ,court of the ,united ,states  
in the case of ,investment ,company     
,institute v4 ,camp 7#dja ,u4,s4 #fag et
 seq4 7#aiga77 as to the construction   
and the purposes of such provisions4    
#c4 ,repeal of ,gramm-,leach-,bliley    
,act provisions  7a7 ,financial holding 
company  7#a7 ,in general ,section #d of
 the ,bank ,holding ,company ,act of    
#aief 7#ab ,u4,s4,c4 #ahdc7 is amended  
by striking subsections 7k71 7l71 7m71  
7n71 and 7o74  7#b7 ,transition  7,a7   
,orderly wind-down of existing          
affiliation ,in the case of a bank      
holding company which1 pursuant to the  
amendments made by paragraph 7#a71 is no
 longer authorized to control or be     
affiliated with any entity that was     
permissible for a financial holding     
company as of the date of enactment of  
this ,act1 any affiliation by the bank  
holding company which is not permitted  
for a bank holding company shall be     

terminated as soon as is practicable1   
and in no event later than the end of   
the #b-year period beginning on that    
date of enactment4  7,b7 ,early         
termination ,the ,board of ,governors of
 the ,federal ,reserve ,system 7in this 
,act referred to as the ,board71 after  
opportunity for hearing1 may terminate1 
at any time1 the authority conferred by 
subparagraph 7,a7 to continue any       
affiliation subject to such subparagraph
 until the end of the period referred to
 in such subparagraph1 if the ,board    
determines1 having due regard to the    
purposes of this ,act1 that such action 
is necessary to prevent undue           
concentration of resources1 decreased or
 unfair competition1 conflicts of       
interest1 or unsound banking practices1 
and is in the public interest4  7,c7    
,extension ,subject to a determination  
under subparagraph 7,b71 the ,board may 
extend the #b-year period referred to in
 subparagraph 7,a7 from time to time as 
to any particular bank holding company  

for not more than #f months at a time1  
if1 in the judgment of the ,board1 such 
an extension would not be detrimental to
 the public interest1 except that no    
such extensions shall in the aggregate  
exceed #a year4  7#c7 ,technical and    
conforming amendments  7,a7 ,bank       
,holding ,company ,act of #aief ,the    
,bank ,holding ,company ,act of #aief   
7#ab ,u4,s4,c4 #ahda et seq47 is        
amended--  7i7 in section #b 7#ab       
,u4,s4,c4 #ahda7--  7,i7 by striking    
subsection 7p72 and  7,,ii7 by          
redesignating subsection 7q7 as         
subsection 7p72  7ii7 in section #e 7#ab
 ,u4,s4,c4 #ahdd7--  7,i7 in subsection 
7c7--  7aa7 in paragraph 7#b71 by       
striking subparagraph 7,e72 and  7bb7 by
 striking paragraphs 7#c71 7#d71 and    
7#e72 and  7,,ii7 by striking subsection
 7g72 and  7iii7 by striking section    
#aj;,a 7#ab ,u4,s4,c4 #ahdh;a74  7,b7   
,federal ,deposit ,insurance ,act ,the  
,federal ,deposit ,insurance ,act 7#ab  
,u4,s4,c4 #ahaa et seq47 is amended by  

striking section #de 7#ab ,u4,s4,c4     
#ahcav7 and inserting the following3    
#de4 ,repealed  4  7,c7                 
,gramm-,leach-,bliley ,act ,subtitle ,b 
of title ,i of the ,gramm-,leach-,bliley
 ,act is amended--  7i7 by striking     
section #aad 7#ab ,u4,s4,c4 #ahbh;a7 and
 inserting the following3  #ad4         
,repealed  2  and  7ii7 by striking     
section #aae 7#ab ,u4,s4,c4 #ahbj;a7 and
 inserting the following3  #ae4         
,repealed  4  7b7 ,financial            
subsidiaries repealed  7#a7 ,in general 
,section #eacf;,a of the ,revised       
,statutes of the ,united ,states 7#ab   
,u4,s4,c4 #bd;a7 is amended to read as  
follows3  #eacf;,a4 ,repealed  4  7#b7  
,transition  7,a7 ,orderly wind-down of 
existing affiliation ,in the case of a  
national bank which1 pursuant to the    
amendments made by paragraph 7#a71 is no
 longer authorized to control or be     
affiliated with a financial subsidiary  
as of the date of enactment of this     
,act1 such affiliation shall be         

terminated as soon as is practicable1   
and in no event later than the end of   
the #b-year period beginning on that    
date of enactment4  7,b7 ,early         
termination ,the ,comptroller of the    
,currency1 after opportunity for        
hearing1 may terminate1 at any time1 the
 authority conferred by subparagraph    
7,a7 to continue any affiliation subject
 to such subparagraph until the end of  
the period referred to in such          
subparagraph1 if the ,comptroller       
determines1 having due regard for the   
purposes of this ,act1 that such action 
is necessary to prevent undue           
concentration of resources1 decreased or
 unfair competition1 conflicts of       
interest1 or unsound banking practices1 
and is in the public interest4  7,c7    
,extension ,subject to a determination  
under subparagraph 7,b71 the            
,comptroller of the ,currency may extend
 the #b-year period referred to in      
subparagraph 7,a7 from time to time as  
to any particular national bank for not 

more than #f months at a time1 if1 in   
the judgment of the ,comptroller1 such  
an extension would not be detrimental to
 the public interest1 except that no    
such extensions shall in the aggregate  
exceed #a year4  7#c7 ,technical and    
conforming amendments  7,a7 ,federal    
,reserve ,act ,the #bjth undesignated   
paragraph of section #i of the ,federal 
,reserve ,act 7#ab ,u4,s4,c4 #cce7 is   
amended by striking the last sentence4  
7,b7 ,federal ,deposit ,insurance ,act  
,the ,federal ,deposit ,insurance ,act  
7#ab ,u4,s4,c4 #ahaa et seq47 is amended
 by striking section #df 7#ab ,u4,s4,c4 
#ahcaw7 and inserting the following3    
#df4 ,repealed  4  7,c7 ,clerical       
amendment ,the table of sections for    
chapter one of title ,,lxii of the      
,revised ,statutes of the ,united       
,states is amended by striking the item 
relating to section #eacf;,a4  7c7      
,definition of broker ,section          
#c7;a77#d77;,b7 of the ,securities      
,exchange ,act of #aicd 7#ae ,u4,s4,c4  

#gh;c7a77#d77;,b77 is amended--  7#a7 by
 striking clauses 7i71 7iii71 7v71      
7vii71 7x71 and 7xi72 and  7#b7 by      
redesignating clauses 7ii71 7iv71 7vi71 
7viii71 and 7ix7 as clauses 7i71 7ii71  
7iii71 7iv71 and 7v71 respectively4  7d7
 ,definition of dealer ,section         
#c7;a77#e77;,c7 of the ,securities      
,exchange ,act of #aicd 7#ae ,u4,s4,c4  
#gh;c7a77#e77;,c77 is amended--  7#a7 by
 striking clauses 7i7 and 7iii72 and    
7#b7 by redesignating clauses 7ii7 and  
7iv7 as clauses 7i7 and 7ii71           
respectively4  7e7 ,definition of       
identified banking product ,section     
#bjf7;a7 of the ,gramm-,leach-,bliley   
,act 7#ae ,u4,s4,c4 #gh;c note7 is      
amended--  7#a7 in paragraph 7#d71 by   
inserting and after the semicolon at the
 end2  7#b7 in paragraph 7#e77;,b77ii71 
by striking 2 or and inserting a period2
 and  7#c7 by striking paragraph 7#f7   
and all that follows through the end of 
the subsection4  7f7 ,definition of     
activities closely related to banking   

7#a7 ,in general ,section #d7;c77#h7 of 
the ,bank ,holding ,company ,act of     
#aief 7#ab ,u4,s4,c4 #ahdc7;c77#h77 is  
amended by striking the day before the  
date of the enactment of the            
,gramm-,leach-,bliley ,act and inserting
 ,january #a1 #aigj4  7#b7 ,provision   
allowing for exceptions after report to 
,congress ,section #d7;j7 of the ,bank  
,holding ,company ,act of #aief 7#ab    
,u4,s4,c4 #ahdc7;j77 is amended to read 
as follows3  7j7 ,approval for certain  
post-#aigj subsection 7c77#h7 activities
  7#a7 ,in general ,notwithstanding the 
limitation of the ,january #a1 #aigj1   
approval deadline in subsection 7c77#h71
 the ,board may determine an activity to
 be so closely related to banking as to 
be a proper incident thereto for        
purposes of such subsection1 subject to 
the requirements of this subsection and 
such terms and conditions as the ,board 
may require4  7#b7 ,general standards   
,in making any determination under      
paragraph 7#a71 the ,board shall        

consider whether performance of the     
activity by a bank holding company or a 
subsidiary of such company can          
reasonably be expected to result in a   
violation of section #ah7;aa7 of the    
,federal ,deposit ,insurance ,act1      
section #ba of the ,banking ,act of     
#aicc1 or the spirit of section #b7;c7  
of the ,return to ,prudent ,banking ,act
 of #bjac1 and other possible adverse   
effects1 such as undue concentration of 
resources1 decreased or unfair          
competition1 conflicts of interests1 or 
unsound banking practices4  7#c7 ,report
 and wait ,no determination of the      
,board under paragraph 7#a7 may take    
effect before the end of the #ahj-;day  
period beginning on the date by which   
notice of the determination has been    
submitted to both ,houses of the        
,congress together with a detailed      
explanation of the activities to which  
the determination relates and the basis 
for the determination1 unless before the
 end of such period1 such activities    

have been approved by an ,act of        
,congress4  4  7g7 ,repeal of provision 
relating to foreign banks filing as     
financial holding companies ,section    
#h7;c7 of the ,international ,banking   
,act of #aigh 7#ab ,u4,s4,c4 #cajf7;c77 
is amended by striking paragraph 7#c74  
#d4 ,reports to ,congress  7a7 ,reports 
required ,each time the ,board of       
,governors of the ,federal ,reserve     
,system1 the ,comptroller of the        
,currency1 or another appropriate       
,federal banking agency 7as defined in  
section #c of the ,federal ,deposit     
,insurance ,act7 makes a determination  
or an extension under subparagraph 7,b7 
or 7,c7 of paragraph 7#b7 or 7#c7 of    
section #ah7;aa7 of the ,federal        
,deposit ,insurance ,act 7as added by   
section #b7;a77 or subparagraph 7,b7 or 
7,c7 of subsection 7a77#b7 or 7b77#b7 of
 section #c of this ,act1 as the case   
may be1 the ,board1 ,comptroller1 or    
agency shall promptly submit a report of
 such determination or extension to the 

,congress4  7b7 ,contents ,each report  
submitted to ,congress under subsection 
7a7 shall contain a detailed description
 of the basis for the determination or  
extension4