[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1282 Introduced in Senate (IS)]
113th CONGRESS
1st Session
S. 1282
To reduce risks to the financial system by limiting banks' ability to
engage in certain risky activities and limiting conflicts of interest,
to reinstate certain Glass-Steagall Act protections that were repealed
by the Gramm-Leach-Bliley Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 11, 2013
Ms. Warren (for herself, Mr. McCain, Ms. Cantwell, and Mr. King)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To reduce risks to the financial system by limiting banks' ability to
engage in certain risky activities and limiting conflicts of interest,
to reinstate certain Glass-Steagall Act protections that were repealed
by the Gramm-Leach-Bliley Act, 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 ``21st Century Glass-Steagall Act of
2013''.
SEC. 2. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) in response to a financial crisis and the ensuing Great
Depression, Congress enacted the Banking Act of 1933, known as
the ``Glass-Steagall Act'', to prohibit commercial banks from
offering investment banking and insurance services;
(2) a series of deregulatory decisions by the Board of
Governors of the Federal Reserve System and the Office of the
Comptroller of the Currency, in addition to decisions by
Federal courts, permitted commercial banks to engage in an
increasing number of risky financial activities that had
previously been restricted under the Glass-Steagall Act, and
also vastly expanded the meaning of the ``business of banking''
and ``closely related activities'' in banking law;
(3) in 1999, Congress enacted the ``Gramm-Leach-Bliley
Act'', which repealed the Glass-Steagall Act separation between
commercial and investment banking and allowed for complex
cross-subsidies and interconnections between commercial and
investment banks;
(4) former Kansas City Federal Reserve President Thomas
Hoenig observed that ``with the elimination of Glass-Steagall,
the largest institutions with the greatest ability to leverage
their balance sheets increased their risk profile by getting
into trading, market making, and hedge fund activities, adding
ever greater complexity to their balance sheets.'';
(5) the Financial Crisis Inquiry Report issued by the
Financial Crisis Inquiry Commission concluded that, in the
years between the passage of Gramm-Leach Bliley and the global
financial crisis, ``regulation and supervision of traditional
banking had been weakened significantly, allowing commercial
banks and thrifts to operate with fewer constraints and to
engage in a wider range of financial activities, including
activities in the shadow banking system.''. The Commission also
concluded that ``[t]his deregulation made the financial system
especially vulnerable to the financial crisis and exacerbated
its effects.'';
(6) a report by the Financial Stability Oversight Council
pursuant to section 123 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act states that increased complexity
and diversity of financial activities at financial institutions
may ``shift institutions towards more risk-taking, increase the
level of interconnectedness among financial firms, and
therefore may increase systemic default risk. These potential
costs may be exacerbated in cases where the market perceives
diverse and complex financial institutions as `too big to
fail,' which may lead to excessive risk taking and concerns
about moral hazard.'';
(7) the Senate Permanent Subcommittee on Investigations
report, ``Wall Street and the Financial Crisis: Anatomy of a
Financial Collapse'', states that repeal of Glass-Steagall
``made it more difficult for regulators to distinguish between
activities intended to benefit customers versus the financial
institution itself. The expanded set of financial services
investment banks were allowed to offer also contributed to the
multiple and significant conflicts of interest that arose
between some investment banks and their clients during the
financial crisis.'';
(8) the Senate Permanent Subcommittee on Investigations
report, ``JPMorgan Chase Whale Trades: A Case History of
Derivatives Risks and Abuses'', describes how traders at
JPMorgan Chase made risky bets using excess deposits that were
partly insured by the Federal Government;
(9) in Europe, the Vickers Independent Commission on
Banking (for the United Kingdom) and the Liikanen Report (for
the Euro area) have both found that there is no inherent reason
to bundle ``retail banking'' with ``investment banking'' or
other forms of relatively high risk securities trading, and
European countries are set on a path of separating various
activities that are currently bundled together in the business
of banking;
(10) private sector actors prefer having access to
underpriced public sector insurance, whether explicit (for
insured deposits) or implicit (for ``too big to fail''
financial institutions), to subsidize dangerous levels of risk-
taking, which, from a broader social perspective, is not an
advantageous arrangement; and
(11) the financial crisis, and the regulatory response to
the crisis, has led to more mergers between financial
institutions, creating greater financial sector consolidation
and increasing the dominance of a few large, complex financial
institutions that are generally considered to be ``too big to
fail'', and therefore are perceived by the markets as having an
implicit guarantee from the Federal Government to bail them out
in the event of their failure.
(b) Purpose.--The purposes of this Act are--
(1) to reduce risks to the financial system by limiting
banks' ability to engage in activities other than socially
valuable core banking activities;
(2) to protect taxpayers and reduce moral hazard by
removing explicit and implicit government guarantees for high-
risk activities outside of the core business of banking; and
(3) to eliminate conflicts of interest that arise from
banks engaging in activities from which their profits are
earned at the expense of their customers or clients.
SEC. 3. SAFE AND SOUND BANKING.
(a) Insured Depository Institutions.--Section 18(s) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(s)) is amended by adding at the
end the following:
``(6) Limitations on banking affiliations.--
``(A) Prohibition on affiliations with
nondepository entities.--An insured depository
institution may not--
``(i) be or become an affiliate of any
insurance company, securities entity, or swaps
entity;
``(ii) be in common ownership or control
with any insurance company, securities entity,
or swaps entity; or
``(iii) engage in any activity that would
cause the insured depository institution to
qualify as an insurance company, securities
entity, or swaps entity.
``(B) Individuals eligible to serve on boards of
depository institutions.--
``(i) In general.--An individual who is an
officer, director, partner, or employee of any
securities entity, insurance company, or swaps
entity may not serve at the same time as an
officer, director, employee, or other
institution-affiliated party of any insured
depository institution.
``(ii) Exception.--Clause (i) does not
apply with respect to service by any individual
which is otherwise prohibited under clause (i),
if the appropriate Federal banking agency
determines, by regulation with respect to a
limited number of cases, that service by such
an individual as an officer, director,
employee, or other institution-affiliated party
of an insured depository institution would not
unduly influence the investment policies of the
depository institution or the advice that the
institution provides to customers.
``(iii) Termination of service.--Subject to
a determination under clause (i), any
individual described in clause (i) who, as of
the date of enactment of the 21st Century
Glass-Steagall Act of 2013, is serving as an
officer, director, employee, or other
institution-affiliated party of any insured
depository institution shall terminate such
service as soon as is practicable after such
date of enactment, and in no event, later than
the end of the 60-day period beginning on that
date of enactment.
``(C) Termination of existing affiliations and
activities.--
``(i) Orderly termination of existing
affiliations and activities.--Any affiliation,
common ownership or control, or activity of an
insured depository institution with any
securities entity, insurance company, or swaps
entity, or any other person, as of the date of
enactment of the 21st Century Glass-Steagall
Act of 2013, which is prohibited under
subparagraph (A) shall be terminated as soon as
is practicable, and in no event later than the
end of the 5-year period beginning on that date
of enactment.
``(ii) Early termination.--The appropriate
Federal banking agency, after opportunity for
hearing, at any time, may order termination of
an affiliation, common ownership or control, or
activity prohibited by clause (i) before the
end of the 5-year period described in clause
(i), if the agency determines that--
``(I) such action is necessary to
prevent undue concentration of
resources, decreased or unfair
competition, conflicts of interest, or
unsound banking practices; and
``(II) is in the public interest.
``(iii) Extension.--Subject to a
determination under clause (ii), an appropriate
Federal banking agency may extend the 5-year
period described in clause (i) as to any
particular insured depository institution for
not more than an additional 6 months at a time,
if--
``(I) the agency certifies that
such extension would promote the public
interest and would not pose a
significant threat to the stability of
the banking system or financial markets
in the United States; and
``(II) such extension, in the
aggregate, does not exceed 1 year for
any one insured depository institution.
``(iv) Requirements for entities receiving
an extension.--Upon receipt of an extension
under clause (iii), the insured depository
institution shall notify its shareholders and
the general public that it has failed to comply
with the requirements of clause (i).
``(D) Definitions.--For purposes of this paragraph,
the following definitions shall apply:
``(i) Insurance company.--The term
`insurance company' has the same meaning as in
section 2(q) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(q)).
``(ii) Securities entity.--Except as
provided in clause (iii), the term `securities
entity'--
``(I) includes any entity engaged
in--
``(aa) the issue,
flotation, underwriting, public
sale, or distribution of
stocks, bonds, debentures,
notes, or other securities;
``(bb) market making;
``(cc) activities of a
broker or dealer, as those
terms are defined in section
3(a) of the Securities Exchange
Act of 1934;
``(dd) activities of a
futures commission merchant;
``(ee) activities of an
investment adviser or
investment company, as those
terms are defined in the
Investment Advisers Act of 1940
and the Investment Company Act
of 1940, respectively; or
``(ff) hedge fund or
private equity investments in
the securities of either
privately or publicly held
companies; and
``(II) does not include a bank
that, pursuant to its authorized trust
and fiduciary activities, purchases and
sells investments for the account of
its customers or provides financial or
investment advice to its customers.
``(iii) Swaps entity.--The term `swaps
entity' means any swap dealer, security-based
swap dealer, major swap participant, or major
security-based swap participant, that is
registered under--
``(I) the Commodity Exchange Act (7
U.S.C. 1 et seq.); or
``(II) the Securities Exchange Act
of 1934 (15 U.S.C. 78a et seq.).
``(iv) Insured depository institution.--The
term `insured depository institution'--
``(I) has the same meaning as in
section 3(c)(2); and
``(II) does not include a savings
association controlled by a savings and
loan holding company, as described in
section 10(c)(9)(C) of the Home Owners'
Loan Act (12 U.S.C. 1467a(c)(9)(C)).''.
(b) Limitation on Banking Activities.--Section 21 of the Banking
Act of 1933 (12 U.S.C. 378) is amended by adding at the end the
following:
``(c) Business of Receiving Deposits.--For purposes of this
section, the term `business of receiving deposits' includes the
establishment and maintenance of any transaction account (as defined in
section 19(b)(1)(C) of the Federal Reserve Act).''.
(c) Permitted Activities of National Banks.--Section 24 (Seventh)
of the Revised Statutes of the United States (12 U.S.C. 24 (Seventh))
is amended to read as follows:
``Seventh. (A) To exercise by its board of directors or
duly authorized officers or agents, subject to law, all such
powers as are necessary to carry on the business of banking.
``(B) As used in this paragraph, the term `business of
banking' shall be limited to the following core banking
services:
``(i) Receiving deposits.--A national banking
association may engage in the business of receiving
deposits.
``(ii) Extensions of credit.--A national banking
association may--
``(I) extend credit to individuals,
businesses, not for profit organizations, and
other entities;
``(II) discount and negotiate promissory
notes, drafts, bills of exchange, and other
evidences of debt; and
``(III) loan money on personal security.
``(iii) Payment systems.--A national banking
association may participate in payment systems, defined
as instruments, banking procedures, and interbank funds
transfer systems that ensure the circulation of money.
``(iv) Coin and bullion.--A national banking
association may buy, sell, and exchange coin and
bullion.
``(v) Investments in securities.--
``(I) In general.--A national banking
association may invest in investment
securities, defined as marketable obligations
evidencing indebtedness of any person,
copartnership, association, or corporation in
the form of bonds, notes, or debentures
(commonly known as `investment securities'),
obligations of the Federal Government, or any
State or subdivision thereof, under such
further definition of the term `investment
securities' as the Comptroller of the Currency,
the Federal Deposit Insurance Corporation, and
the Board of Governors of the Federal Reserve
System may jointly prescribe, by regulation.
``(II) Limitations.--The business of
dealing in securities and stock by the
association shall be limited to purchasing and
selling such securities and stock without
recourse, solely upon the order, and for the
account of, customers, and in no case for its
own account, and the association shall not
underwrite any issue of securities or stock.
The association may purchase for its own
account investment securities under such
limitations and restrictions as the Comptroller
of the Currency, the Federal Deposit Insurance
Corporation, and the Board of Governors of the
Federal Reserve System may jointly prescribe,
by regulation. In no event shall the total
amount of the investment securities of any one
obligor or maker, held by the association for
its own account, exceed at any time 10 percent
of its capital stock actually paid in and
unimpaired and 10 percent of its unimpaired
surplus fund, except that such limitation shall
not require any association to dispose of any
securities lawfully held by it on August 23,
1935.
``(C) Prohibition against transactions involving structured
or synthetic products.--A national banking association shall
not invest in a structured or synthetic product, a financial
instrument in which a return is calculated based on the value
of, or by reference to the performance of, a security,
commodity, swap, other asset, or an entity, or any index or
basket composed of securities, commodities, swaps, other
assets, or entities, other than customarily determined interest
rates, or otherwise engage in the business of receiving
deposits or extending credit for transactions involving
structured or synthetic products.''.
(d) Permitted Activities of Federal Savings Associations.--
(1) In general.--Section 5(c)(1) of the Home Owners' Loan
Act (12 U.S.C. 1464(c)(1)) is amended--
(A) by striking subparagraph (Q); and
(B) by redesignating subparagraphs (R) through (U)
as subparagraphs (Q) through (T), respectively.
(2) Conforming amendment.--Section 10(c)(9)(A) of the Home
Owners' Loan Act (12 U.S.C. 1467a(c)(9)(A)) is amended by
striking ``permitted--'' and all that follows through clause
(ii) and inserting ``permitted under paragraph (1)(C) or
(2).''.
(e) Closely Related Activities.--Section 4(c) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(c)) is amended--
(1) in paragraph (8), by striking ``had been determined''
and all that follows through the end and inserting the
following: ``are so closely related to banking so as to be a
proper incident thereto, as provided under this paragraph or
any rule or regulation issued by the Board under this
paragraph, provided that the following shall not be considered
closely related for purposes of this paragraph:
``(A) Serving as an investment advisor (as defined
in section 2(a)(20) of the Investment Company Act of
1940 (15 U.S.C. 80a-2(a)(20))) to an investment company
registered under that Act, including sponsoring,
organizing, and managing a closed-end investment
company.
``(B) Agency transactional services for customer
investments, except that this subparagraph may not be
construed as prohibiting purchases and sales of
investments for the account of customers conducted by a
bank (or subsidiary thereof) pursuant to the bank's
trust and fiduciary powers.
``(C) Investment transactions as principal, except
for activities specifically allowed by paragraph (14).
``(D) Management consulting and counseling
activities.'';
(2) in paragraph (13), by striking ``or'' at the end;
(3) by redesignating paragraph (14) as paragraph (15); and
(4) by inserting after paragraph (13) the following:
``(14) purchasing, as an end user, any swap, to the extent
that--
``(A) the purchase of any such swap occurs
contemporaneously with the underlying hedged item or
hedged transaction;
``(B) there is formal documentation identifying the
hedging relationship with particularity at the
inception of the hedge; and
``(C) the swap is being used to hedge against
exposure to--
``(i) changes in the value of an individual
recognized asset or liability or an identified
portion thereof that is attributable to a
particular risk;
``(ii) changes in interest rates; or
``(iii) changes in the value of currency;
or''.
(f) Prohibited Activities.--Section 4(a) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1843(a)) is amended--
(1) in paragraph (1), by striking ``or'' at the end;
(2) in paragraph (2), by striking the period at the end and
inserting ``; or''; and
(3) by inserting before the undesignated matter following
paragraph (2), the following:
``(3) with the exception of the activities permitted under
subsection (c), engage in the business of a `securities entity'
or a `swaps entity', as those terms are defined in section
18(s)(6)(D) of the Federal Deposit Insurance Act (12 U.S.C.
1828(s)(6)(D)), including, without limitation, dealing or
making markets in securities, repurchase agreements, exchange
traded and over-the-counter swaps, as defined by the Commodity
Futures Trading Commission and the Securities and Exchange
Commission, or structured or synthetic products, as defined in
section 24 (Seventh) of the Revised Statutes of the United
States (12 U.S.C. 24 (Seventh)), or any other over-the-counter
securities, swaps, contracts, or any other agreement that
derives its value from, or takes on the form of, such
securities, derivatives, or contracts;
``(4) engage in proprietary trading, as provided by section
13, or any rule or regulation under that section;
``(5) own, sponsor, or invest in a hedge fund, or private
equity fund, or any other fund, as provided by section 13, or
any rule or regulation under that section, or any other fund
which exhibits the characteristics of a fund that takes on
proprietary trading activities or positions;
``(6) hold ineligible securities or derivatives;
``(7) engage in market-making; or
``(8) engage in prime brokerage activities.''.
(g) Anti-Evasion.--
(1) In general.--Any attempt to structure any contract,
investment, instrument, or product in such a manner that the
purpose or effect of such contract, investment, instrument, or
product is to evade or attempt to evade the prohibitions
described in section 18(s)(6) of the Federal Deposit Insurance
Act, section 21(c) of the Banking Act of 1933, paragraph
(Seventh) of section 24 of the Revised Statutes of the United
States, section 5(c)(1) of the Home Owners' Loan Act, or
section 4(a) of the Bank Holding Company Act of 1956, as added
or amended by this section, shall be considered a violation of
the Federal Deposit Insurance Act, the Banking Act of 1933,
section 24 of the Revised Statutes of the United States, the
Home Owners' Loan Act, and the Bank Holding Company Act of
1956, respectively.
(2) Termination.--
(A) In general.--Notwithstanding any other
provision of law, if a Federal agency has reasonable
cause to believe that an insured depository
institution, securities entity, swaps entity, insurance
company, bank holding company, or other entity over
which that agency has regulatory authority has made an
investment or engaged in an activity in a manner that
functions as an evasion of the prohibitions described
in paragraph (1) (including through an abuse of any
permitted activity) or otherwise violates such
prohibitions, the agency shall--
(i) order, after due notice and opportunity
for hearing, the entity to terminate the
activity and, as relevant, dispose of the
investment;
(ii) order, after the procedures described
in clause (i), the entity to pay a penalty
equal to 10 percent of the entity's net
profits, averaged over the previous 3 years,
into the United States Treasury; and
(iii) initiate proceedings described in 12
U.S.C. 1818(e) for individuals involved in
evading the prohibitions described in paragraph
(1).
(B) Construction.--Nothing in this paragraph shall
be construed to limit the inherent authority of any
Federal agency or State regulatory authority to further
restrict any investments or activities under otherwise
applicable provisions of law.
(3) Reporting requirement.--Each year, each Federal agency
having regulatory authority over any entity described in
paragraph (2)(A) shall issue a report to the Committee on
Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives, and shall make such report available to the
public. The report shall identify the number and character of
any activities that took place in the preceding year that
function as an evasion of the prohibitions described in
paragraph (1), the names of the particular entities engaged in
those activities, and the actions of the agency taken under
paragraph (2).
(h) Attestation.--Section 4 of the Bank Holding Company Act of 1956
(12 U.S.C. 1843), as amended by section 3(a)(1) of this Act, is amended
by adding at the end the following:
``(k) Attestation.--Executives of any bank holding company or its
affiliate shall attest in writing, under penalty of perjury, that the
bank holding company or affiliate is not engaged in any activity that
is prohibited under subsection (a), except to the extent that such
activity is permitted under subsection (c).''.
SEC. 4. REPEAL OF GRAMM-LEACH-BLILEY ACT PROVISIONS.
(a) Termination of Financial Holding Company Designation.--
(1) In general.--Section 4 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843) is amended by striking subsections
(k), (l), (m), (n), and (o).
(2) Transition.--
(A) Orderly termination of existing affiliation.--
In the case of a bank holding company which, pursuant
to the amendments made by paragraph (1), is no longer
authorized to control or be affiliated with any entity
that was permissible for a financial holding company on
the day before the date of enactment of this Act, any
affiliation, ownership or control, or activity by the
bank holding company which is not permitted for a bank
holding company shall be terminated as soon as is
practicable, and in no event later than the end of the
5-year period beginning on the date of enactment of
this Act.
(B) Early termination.--The Board of Governors of
the Federal Reserve System (in this section referred to
as the ``Board''), after opportunity for hearing, at
any time, may terminate an affiliation prohibited by
subparagraph (A) before the end of the 5-year period
described in subparagraph (A), if the Board determines
that such action--
(i) is necessary to prevent undue
concentration of resources, decreased or unfair
competition, conflicts of interest, or unsound
banking practices; and
(ii) is in the public interest.
(C) Extension.--Subject to a determination under
subparagraph (B), the Board may extend the 5-year
period described in subparagraph (A), as to any
particular bank holding company, for not more than an
additional 6 months at a time, if--
(i) the Board certifies that such extension
would promote the public interest and would not
pose a significant risk to the stability of the
banking system or financial markets of the
United States; and
(ii) such extension, in the aggregate, does
not exceed 1 year for any one bank holding
company.
(D) Requirements for entities receiving an
extension.--Upon receipt of an extension under
subparagraph (C), the bank holding company shall notify
its shareholders and the general public that it has
failed to comply with the requirements of subparagraph
(A).
(3) Technical and conforming amendments.--
(A) Bank holding company act of 1956.--The Bank
Holding Company Act of 1956 (12 U.S.C. 1841 et seq.) is
amended--
(i) in section 2 (12 U.S.C. 1841)--
(I) by striking subsection (p); and
(II) by redesignating subsection
(q) as subsection (p);
(ii) in section 5(c) (12 U.S.C. 1844(c)),
by striking paragraphs (3), (4), and (5); and
(iii) in section 5 (12 U.S.C. 1844), by
striking subsection (g).
(4) FDIA.--The Federal Deposit Insurance Act (12 U.S.C.
1811 et seq.) is amended--
(A) by striking sections 45 and 46 (12 U.S.C.
1831v, 1831w); and
(B) by redesignating sections 47 through 50 as
sections 45 through 48, respectively.
(5) Gramm-leach-bliley.--Subtitle B of title I of the
Gramm-Leach-Bliley Act is amended by striking section 115 (12
U.S.C. 1820a).
(b) Financial Subsidiaries of National Banks Disallowed.--
(1) In general.--Section 5136A of the Revised Statutes of
the United States (12 U.S.C. 24a) is repealed.
(2) Transition.--
(A) Orderly termination of existing affiliation.--
In the case of a national bank which, pursuant to the
amendment made by paragraph (1), is no longer
authorized to control or be affiliated with a financial
subsidiary as of the date of enactment of this Act,
such affiliation, ownership or control, or activity
shall be terminated as soon as is practicable, and in
no event later than the end of the 5-year period
beginning on the date of enactment of this Act.
(B) Early termination.--The Comptroller of the
Currency (in this section referred to as the
``Comptroller''), after opportunity for hearing, at any
time, may terminate an affiliation prohibited by
subparagraph (A) before the end of the 5-year period
described in subparagraph (A), if the Comptroller
determines, having due regard for the purposes of this
Act, that--
(i) such action is necessary to prevent
undue concentration of resources, decreased or
unfair competition, conflicts of interest, or
unsound banking practices; and
(ii) is in the public interest.
(C) Extension.--Subject to a determination under
subparagraph (B), the Comptroller may extend the 5-year
period described in subparagraph (A) as to any
particular national bank for not more than an
additional 6 months, if--
(i) the Comptroller certifies that such
extension would promote the public interest and
would not pose a significant risk to the
stability of the banking system or financial
markets of the United States; and
(ii) such extension, in the aggregate, does
not exceed 1 year for any single national bank.
(D) Requirements for entities receiving an
extension.--Upon receipt of an extension under
subparagraph (C), the national bank shall notify its
shareholders and the general public that it has failed
to comply with the requirements described in
subparagraph (A).
(3) Technical and conforming amendment.--The 20th
undesignated paragraph of section 9 of the Federal Reserve Act
(12 U.S.C. 335) is amended by striking the last sentence.
(4) 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 5136A.
(c) Repeal of Provision Relating to Foreign Banks Filing as
Financial Holding Companies.--Section 8(c) of the International Banking
Act of 1978 (12 U.S.C. 3106(c)) is amended by striking paragraph (3).
SEC. 5. REPEAL OF BANKRUPTCY PROVISIONS.
Title 11, United States Code, is amended by striking sections 555,
559, 560, 561, and 562.
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