[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2940 Introduced in House (IH)]





105th CONGRESS
  1st Session
                                H. R. 2940

To enhance competition and consumer choice in the delivery of financial 
                         products and services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            November 8, 1997

Mr. Dreier (for himself and Mrs. Myrick) introduced the following bill; 
which was referred to the Committee on Banking and Financial Services, 
   and in addition to the Committee on Commerce, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To enhance competition and consumer choice in the delivery of financial 
                         products and services.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Financial Services Competitive 
Enhancement Act''.

SEC. 2. ANTI-AFFILIATION PROVISIONS OF ``GLASS-STEAGALL ACT'' REPEALED.

    (a) Section 20 Repealed.--Section 20 of the Banking Act of 1933 (12 
U.S.C. 377) is repealed.
    (b) Section 32 Repealed.--Section 32 of the Banking Act of 1933 (12 
U.S.C. 78) is repealed.

SEC. 3. FINANCIAL ACTIVITIES.

    Section 4(c)(8) of the Bank Holding Company Act of 1956 (12 U.S.C. 
1843(c)(8)) is amended to read as follows:
            ``(8) shares of any company the activities of which the 
        Board has determined (by regulation or order) to be financial 
        in nature or incidental to such financial activities and--
                    ``(A) effective 90 days after the date of the 
                enactment of the Financial Services Competitive 
                Equality Act, it shall be financial in nature to 
                provide insurance as principal, agent, or broker in any 
                State, in full compliance with the laws and regulations 
                of such State that uniformly apply to each type of 
                insurance license or authorization in such State, 
                except that in no event shall the company, the bank 
                holding company, or any affiliate of the company or 
                bank holding company be subject to any State law or 
                regulation that restricts a bank from having an 
                affiliate, agent, or employee in such State licensed to 
                provide insurance as principal, agent, or broker; and
                    ``(B) the Board shall prescribe regulations 
                concerning insurance affiliations that provide 
                equivalent treatment for all stock and mutual insurance 
                companies that control or are otherwise affiliated with 
                a bank and fully accommodate and are consistent with 
                State law;''.

SEC. 4. INSURANCE COMPANY INVESTMENTS.

    Section 4 of the Bank Holding Company Act of 1956 (12 U.S.C. 1843) 
is amended by adding at the end the following new subsection:
    ``(k) Insurance Company Investments.--Notwithstanding subsection 
(a), a bank holding company may directly or indirectly acquire or 
control, whether as principal, on behalf of 1 or more entities 
(including any subsidiary of the holding company which is not a 
depository institution or subsidiary of a depository institution) or 
otherwise, shares, assets, or ownership interests (including without 
limitation debt or equity securities, partnership interests, trust 
certificates or other instruments representing ownership) of a company 
or other entity, whether or not constituting control of such company or 
entity, engaged in any activity not authorized pursuant to this section 
if--
            ``(1) the shares, assets, or ownership interests are not 
        acquired or held by a depository institution or a subsidiary of 
        a depository institution;
            ``(2) such shares, assets, or ownership interests are 
        acquired and held by an insurance company that is predominantly 
        engaged in underwriting life, accident and health, or property 
        and casualty insurance (other than credit-related insurance);
            ``(3) such shares, assets, or ownership interests represent 
        an investment made in the ordinary course of business of such 
        insurance company in accordance with relevant State law 
        governing such investments; and
            ``(4) during the period such shares, assets, or ownership 
        interests are held, the bank holding company does not directly 
        or indirectly participate in the day-to-day management or 
        operation of the company or entity except insofar as necessary 
        to achieve the objectives of paragraph (3).''.
                                 <all>