[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 2886 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 2886

   To prohibit certain affiliations (between commercial banking and 
         investment banking companies), and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           December 16, 2009

Ms. Cantwell (for herself, Mr. McCain, and Mr. Feingold) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To prohibit certain affiliations (between commercial banking and 
         investment banking companies), and for other purposes.

    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 ``Banking Integrity Act of 2009''.

SEC. 2. RESTORING LIMITATIONS ON FINANCIAL INSTITUTION AFFILIATIONS.

    (a) Limitation on Affiliation.--The Banking Act of 1933 (12 U.S.C. 
221a et seq.) is amended by inserting before section 21 the following:
    ``Sec. 20.  Beginning 1 year after the date of enactment of the 
Banking Integrity Act of 2009 , no member bank may be affiliated, in 
any manner described in section 2(b), with any corporation, 
association, business trust, or other similar organization that is 
engaged principally in the issue, flotation, underwriting, public sale, 
or distribution at wholesale or retail or through syndicate 
participation stocks, bonds, debenture, notes, or other securities, 
except that nothing in this section shall apply to any such 
organization which shall have been placed in formal liquidation and 
which shall transact no business, except such as may be incidental to 
the liquidation of its affairs.''.
    (b) Limitation on Compensation.--The Banking Act of 1933 (12 U.S.C. 
221 et seq.) is amended by inserting after section 31 the following:
    ``Sec. 32.  Beginning 1 year after the date of enactment of the 
Banking Integrity Act of 2009, no officer, director, or employee of any 
corporation or unincorporated association, no partner or employee of 
any partnership, and no individual, primarily engaged in the issue, 
flotation, underwriting, public sale, or distribution, at wholesale or 
retail, or through syndicate participation, of stocks, bonds, or other 
similar securities, shall serve simultaneously as an officer, director, 
or employee of any member bank, except in limited classes of cases in 
which the Board of Governors of the Federal Reserve System may allow 
such service by general regulations when, in the judgment of the Board 
of Governors, it would not unduly influence the investment policies of 
such member bank or the advice given to customers by the member bank 
regarding investments.''.

SEC. 3. PROHIBITING DEPOSITORY INSTITUTIONS FROM ENGAGING IN INSURANCE-
              RELATED ACTIVITIES.

    (a) In General.--Beginning 1 year after the date of enactment of 
this Act, and notwithstanding any other provision of law, in no case 
may a depository institution engage in the business of insurance or any 
insurance-related activity.
    (b) Definition.--As used in this section, the term ``business of 
insurance'' means the writing of insurance or the reinsuring of risks 
by an insurer, including all acts necessary to such writing or 
reinsuring and the activities relating to the writing of insurance or 
the reinsuring of risks conducted by persons who act as, or are, 
officers, directors, agents, or employees of insurers or who are other 
persons authorized to act on behalf of such persons.
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