,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #gjdf  ,,in ,,the ,,house ,,of  
,,representatives  ,may #bh1 #bjbj,mr4  
,casten of ,illinois introduced the     
following bill2 which was referred to   
the ,committee on ,financial ,services  
,a ,,bill  ,to amend the ,bank ,holding 
,company ,act of #aief to place certain 
limitations on commodity ownership and  
to repeal the merchant banking          
authority1 and for other purposes4  #a4 
,limitations on commodity ownership and 
repeal of the merchant banking authority
  7a7 ,in general ,section #d of the    
,bank ,holding ,company ,act of #aief   
7#ab ,u4,s4,c4 #ahdc7 is amended-- 7#a7 
in subsection 7k7-- 7,a7 in paragraph   
7#a71 by striking 7by regulation or     
order7 and inserting 1 by regulation2   
7,b7 in paragraph 7#b7-- 7i7 in the     
heading1 by striking secretary of the   
treasury and inserting ,secretary of the
 ,treasury and the ,federal ,deposit    
,insurance ,corporation2 and  7ii7 by   
adding at the end the following3  7,c7  

,joint determination with the ,federal  
,deposit ,insurance ,corporation ,for   
purposes of paragraph 7#a71 the ,board  
may only make a determination that an   
activity is complementary to a financial
 activity and does not pose a           
substantial risk to the safety or       
soundness of depository institutions or 
the financial system generally1 if such 
determination is made jointly1 by rule1 
with the ,federal ,deposit ,insurance   
,corporation4  2  7,c7 in paragraph     
7#d7-- 7i7 by striking subparagraph     
7,h72 and  7ii7 by redesignating        
subparagraph 7,i7 as subparagraph 7,h72 
and  7,d7 by striking paragraph 7#g72   
7#b7 in subsection 7l7-- 7,a7 in        
paragraph 7#a71 by striking subsection  
7k71 7n71 or 7o7 each place such term   
appears and inserting subsection 7k7 or 
7n72 and  7,b7 in paragraph 7#b77;,b71  
by striking subparagraph 7,h7 or 7,i7   
and inserting subparagraph 7,h72  7#c7  
in subsection 7m77#a77;,a71 by striking 
subsection 7k71 7n71 or 7o7 and         

inserting subsection 7k7 or 7n72  7#d7  
in subsection 7n77#e71 by striking      
subparagraph 7,h7 or 7,i7 each place    
such term appears and inserting         
subparagraph 7,h72 and  7#e7 by striking
 subsection 7o74  7b7 ,conforming       
amendment ,section #c7;a77#d77;,b77vi7  
of the ,securities ,exchange ,act of    
#aicd 7#ae ,u4,s4,c4                    
#gh;c7a77#d77;,b77vi77 is amended by    
striking other than and all that follows
 through the end and inserting other    
than a registered broker or dealer44    
7c7 ,rulemaking ,the ,board of          
,governors of the ,federal ,reserve     
,system shall-- 7#a7 issue rules to     
carry out the amendments made by this   
section2 and  7#b7 provide for an       
appropriate transition period before    
persons are required to comply with the 
amendments made by this section1        
including allowing for the divestment of
 shares1 assets1 and ownership interests
 affected by such amendments4  #b4      
,finalization of proposed financial     

holding company rule  7a7 ,in general   
,the proposed financial holding company 
rule of the ,board of ,governors of the 
,federal ,reserve ,system shall have the
 force and effect of law4  7b7          
,definition ,in this section1 the term  
proposed financial holding company rule 
means the proposed rule of the ,board of
 ,governors of the ,federal ,reserve    
,system titled ,regulations ,q and ,y2  
,risk-,based ,capital and ,other        
,regulatory ,requirements for           
,activities of ,financial ,holding      
,companies ,related to ,physical        
,commodities and ,risk-,based ,capital  
,requirements for ,merchant ,banking    
,investments 7#ha ,fed4 ,reg4 #fgbbj2   
published ,september #cj1 #bjaf74