[Congressional Record Volume 152, Number 123 (Wednesday, September 27, 2006)]
[House]
[Pages H7573-H7588]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FINANCIAL SERVICES REGULATORY RELIEF ACT OF 2006
Mr. OXLEY. Mr. Speaker, I move to suspend the rules and pass the
Senate bill (S. 2856) to provide regulatory relief and improve
productivity for insured depository institutions, and for other
purposes, as amended.
The Clerk read as follows:
S. 2856
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Financial
Services Regulatory Relief Act of 2006''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--BROKER RELIEF
Sec. 101. [Rulemaking] Joint rulemaking required for revised definition
of broker in the Securities Exchange Act of 1934.
TITLE II--MONETARY POLICY PROVISIONS
Sec. 201. Authorization for the Federal reserve to pay interest on
reserves.
Sec. 202. Increased flexibility for the Federal Reserve Board to
establish reserve requirements.
Sec. 203. Effective date.
TITLE III--NATIONAL BANK PROVISIONS
Sec. 301. Voting in shareholder elections.
Sec. 302. Simplifying dividend calculations for national banks.
Sec. 303. Repeal of obsolete limitation on removal authority of the
Comptroller of the Currency.
Sec. 304. Repeal of obsolete provision in the Revised Statutes.
Sec. 305. Enhancing the authority for banks to make community
development investments.
TITLE IV--SAVINGS ASSOCIATION PROVISIONS
Sec. 401. Parity for savings associations under the Securities Exchange
Act of 1934 and the Investment Advisers Act of 1940.
Sec. 402. Repeal of overlapping rules governing purchased mortgage
servicing rights.
Sec. 403. Clarifying citizenship of Federal savings associations for
Federal court jurisdiction.
Sec. 404. Repeal of limitation on loans to one borrower.
TITLE V--CREDIT UNION PROVISIONS
Sec. 501. Leases of land on Federal facilities for credit unions.
Sec. 502. Increase in general 12-year limitation of term of Federal
credit union loans to 15 years.
Sec. 503. Check cashing and money transfer services offered within the
field of membership.
Sec. 504. Clarification of definition of net worth under certain
circumstances for purposes of prompt corrective action.
Sec. 505. Amendments relating to nonfederally insured credit unions.
TITLE VI--DEPOSITORY INSTITUTION PROVISIONS
Sec. 601. Reporting requirements relating to insider lending.
Sec. 602. Investments by insured savings associations in bank service
companies authorized.
Sec. 603. Authorization for member bank to use pass-through reserve
accounts.
Sec. 604. Streamlining reports of condition.
Sec. 605. Expansion of eligibility for 18-month examination schedule
for community banks.
Sec. 606. Streamlining depository institution merger application
requirements.
Sec. 607. Nonwaiver of privileges.
Sec. 608. Clarification of application requirements for optional
conversion for Federal savings associations.
Sec. 609. Exemption from disclosure of privacy policy for accounting
firms.
Sec. 610. Inflation adjustment for the small depository institution
exception under the Depository Institution Management
Interlocks Act.
Sec. 611. Modification to cross marketing restrictions.
TITLE VII--BANKING AGENCY PROVISIONS
Sec. 701. Statute of limitations for judicial review of appointment of
a receiver for depository institutions.
Sec. 702. Enhancing the safety and soundness of insured depository
institutions.
Sec. 703. Cross guarantee authority.
Sec. 704. Golden parachute authority and nonbank holding companies.
Sec. 705. Amendments relating to change in bank control.
Sec. 706. Amendment to provide the Federal Reserve Board with
discretion concerning the imputation of control of shares
of a company by trustees.
Sec. 707. Interagency data sharing.
Sec. 708. Clarification of extent of suspension, removal, and
prohibition authority of Federal banking agencies in
cases of certain crimes by institution-affiliated
parties.
Sec. 709. Protection of confidential information received by Federal
banking regulators from foreign banking supervisors.
Sec. 710. Prohibition on participation by convicted individuals.
Sec. 711. Coordination of State examination authority.
Sec. 712. Deputy Director; succession authority for Director of the
Office of Thrift Supervision.
Sec. 713. Office of Thrift Supervision representation on Basel
Committee on Banking Supervision.
Sec. 714. Federal Financial Institutions Examination Council.
Sec. 715. Technical amendments relating to insured institutions.
Sec. 716. Clarification of enforcement authority.
[[Page H7574]]
Sec. 717. Federal banking agency authority to enforce deposit insurance
conditions.
Sec. 718. Receiver or conservator consent requirement.
Sec. 719. Acquisition of FICO scores.
Sec. 720. Elimination of criminal indictments against receiverships.
Sec. 721. Resolution of deposit insurance disputes.
Sec. 722. Recordkeeping.
Sec. 723. Preservation of records.
Sec. 724. Technical amendments to information sharing provision in the
Federal Deposit Insurance Act.
Sec. 725. Technical and conforming amendments relating to banks
operating under the Code of Law for the District of
Columbia.
Sec. 726. Technical corrections to the Federal Credit Union Act.
Sec. 727. Repeal of obsolete provisions of the Bank Holding Company Act
of 1956.
Sec. 728. Development of model privacy forms.
TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
Sec. 801. Exception for certain bad check enforcement programs.
Sec. 802. Other amendments.
TITLE IX--CASH MANAGEMENT MODERNIZATION
Sec. 901. Collateral modernization.
TITLE X--STUDIES AND REPORTS
Sec. 1001. Study and report by the Comptroller General on the currency
transaction report filing system.
Sec. 1002. Study and report on institution diversity and consolidation.
TITLE I--BROKER RELIEF
SEC. 101. JOINT RULEMAKING REQUIRED FOR REVISED DEFINITION OF
BROKER IN THE SECURITIES EXCHANGE ACT OF 1934.
(a) Final Rules Required.--
(1) Amendment to securities exchange act.--Section 3(a)(4)
of the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(4))
is amended by adding at the end the following:
``(F) [Rulemaking] Joint rulemaking required.--The
Commission and the Board of Governors of the Federal Reserve
System shall [, by rule,] jointly adopt a single set of rules
or regulations to implement the exceptions in subparagraph
(B).''.
(2) Timing.--Not later than 180 days after the date of the
enactment of this Act, the Securities and Exchange Commission
(in this section referred to as the ``Commission'') [shall
issue proposed rules] and the Board of Governors of the
Federal Reserve System (hereafter in this section referred to
as the ``Board'') shall jointly issue a proposed single set
of rules or regulations to define the term ``broker'' in
accordance with section 3(a)(4) of the Securities Exchange
Act of 1934, as amended by this subsection.
(3) Rulemaking supersedes previous rulemaking.--A final
[rule issued] single set of rules or regulations jointly
adopted in accordance with this section shall supersede any
other proposed or final rule issued by the Commission on or
after the date of enactment of section 201 of the Gramm-
Leach-Bliley Act with regard to the exceptions to the
definition of a broker under section 3(a)(4)(B) of the
Securities Exchange Act of 1934 [, on or after the date of
enactment of section 201 of the Gramm-Leach-Bliley Act]. No
such other rule, whether or not issued in final form, shall
have any force or effect on or after that date of enactment.
(b) Consultation.--Prior to [issuing the final rule]
jointly adopting the single set of final rules or regulations
required by this section, the Commission and the Board shall
consult with and seek the concurrence of the Federal banking
agencies concerning the content of such rulemaking in
implementing section 3(a)(4)(B) of the Securities Exchange
Act of 1934, as amended by this section and section 201 of
the Gramm-Leach-Bliley Act.
[(c) Agency Objections to Commission Rule.--
(1) Filing of petition for review.--
(A) In general.--Any Federal banking agency may obtain
review of any final rule issued under this section in the
United States Court of Appeals for the District of Columbia
Circuit by filing in such court, not later than 60 days after
the date of publication of the final rule, a written petition
requesting that the rule be set aside.
(B) Expedited process.--Any proceeding to challenge such a
rule commenced under subparagraph (A) shall be expedited by
the Court of Appeals.
(2) Transmittal of petition and record.--
(A) Submission to clerk.--A copy of a petition described in
paragraph (1) shall be transmitted as soon as possible by the
Clerk of the Court to an officer or employee of the
Commission designated for that purpose.
(B) Filing of petition.--Upon receipt of a petition under
subparagraph (A), the Commission shall file with the court
the rule under review and any documents referred to therein,
and any other relevant materials prescribed by the court.
(3) Exclusive jurisdiction.--On the date of the filing of a
petition under paragraph (1), the court has jurisdiction,
which becomes exclusive on the filing of the materials set
forth in paragraph (2), to affirm and enforce or to set aside
the rule at issue.
(4) Standard of review.--The court shall determine to
affirm and enforce or set aside a rule of the Commission
under this subsection, based on the determination of the
court as to whether the rule is consistent with the purposes
and language of section 3(a)(4)(B) of the Securities Exchange
Act of 1934, as amended by section 201 of the Gramm-Leach-
Bliley Act, and appropriate in light of the history, purpose,
and extent of the rule under the Federal securities laws and
the Federal banking laws, giving deference neither to the
views of the Commission nor of the Federal banking agencies.
(5) Judicial stay.--The filing of a petition by a Federal
banking agency under paragraph (1) shall operate as a
judicial stay, until the date on which the determination of
the court is final (including any appeal of such
determination).]
[d] (c) Definition.--For purposes of this section, the term
``Federal banking agencies'' means [the Board of Governors of
the Federal Reserve System,] the Office of the Comptroller of
the Currency, the Office of Thrift Supervision, and the
Federal Deposit Insurance Corporation.
TITLE II--MONETARY POLICY PROVISIONS
SEC. 201. AUTHORIZATION FOR THE FEDERAL RESERVE TO PAY
INTEREST ON RESERVES.
(a) In General.--Section 19(b) of the Federal Reserve Act
(12 U.S.C. 461(b)) is amended by adding at the end the
following:
``(12) Earnings on balances.--
``(A) In general.--Balances maintained at a Federal Reserve
bank by or on behalf of a depository institution may receive
earnings to be paid by the Federal Reserve bank at least once
each calendar quarter, at a rate or rates not to exceed the
general level of short-term interest rates.
``(B) Regulations relating to payments and distributions.--
The Board may prescribe regulations concerning--
``(i) the payment of earnings in accordance with this
paragraph;
``(ii) the distribution of such earnings to the depository
institutions which maintain balances at such banks, or on
whose behalf such balances are maintained; and
``(iii) the responsibilities of depository institutions,
Federal Home Loan Banks, and the National Credit Union
Administration Central Liquidity Facility with respect to the
crediting and distribution of earnings attributable to
balances maintained, in accordance with subsection (c)(1)(A),
in a Federal Reserve bank by any such entity on behalf of
depository institutions.
``(C) Depository institutions defined.--For purposes of
this paragraph, the term `depository institution', in
addition to the institutions described in paragraph (1)(A),
includes any trust company, corporation organized under
section 25A or having an agreement with the Board under
section 25, or any branch or agency of a foreign bank (as
defined in section 1(b) of the International Banking Act of
1978).''.
(b) Conforming Amendment.--Section 19 of the Federal
Reserve Act (12 U.S.C. 461) is amended--
(1) in subsection (b)(4)--
(A) by striking subparagraph (C); and
(B) by redesignating subparagraphs (D) and (E) as
subparagraphs (C) and (D), respectively; and
(2) in subsection (c)(1)(A), by striking ``subsection
(b)(4)(C)'' and inserting ``subsection (b)''.
SEC. 202. INCREASED FLEXIBILITY FOR THE FEDERAL RESERVE BOARD
TO ESTABLISH RESERVE REQUIREMENTS.
Section 19(b)(2)(A) of the Federal Reserve Act (12 U.S.C.
461(b)(2)(A)) is amended--
(1) in clause (i), by striking ``the ratio of 3 per
centum'' and inserting ``a ratio of not greater than 3
percent (and which may be zero)''; and
(2) in clause (ii), by striking ``and not less than 8 per
centum,'' and inserting ``(and which may be zero)''.
SEC. 203. EFFECTIVE DATE.
The amendments made by this title shall take effect October
1, 2011.
TITLE III--NATIONAL BANK PROVISIONS
SEC. 301. VOTING IN SHAREHOLDER ELECTIONS.
Section 5144 of the Revised Statutes of the United States
(12 U.S.C. 61) is amended--
(1) by striking ``or to cumulate'' and inserting ``or, if
so provided by the articles of association of the national
bank, to cumulate''; and
(2) by striking the comma after ``his shares shall equal''.
SEC. 302. SIMPLIFYING DIVIDEND CALCULATIONS FOR NATIONAL
BANKS.
(a) In General.--Section 5199 of the Revised Statutes of
the United States (12 U.S.C. 60) is amended to read as
follows:
``SEC. 5199. NATIONAL BANK DIVIDENDS.
``(a) In General.--Subject to subsection (b), the directors
of any national bank may declare a dividend of so much of the
undivided profits of the bank as the directors judge to be
expedient.
``(b) Approval Required Under Certain Circumstances.--A
national bank may not declare and pay dividends in any year
in excess of an amount equal to the sum of the total of the
net income of the bank for that year and the retained net
income of the bank for the preceding 2 years, minus the sum
of any transfers required by the Comptroller of the Currency
and any transfers required to be made to a fund for the
retirement of any preferred stock, unless the Comptroller of
the Currency approves the declaration and payment of
dividends in excess of such amount.''.
(b) Clerical Amendment.--The table of sections for chapter
three of title LXII of the
[[Page H7575]]
Revised Statutes of the United States is amended by striking
the item relating to section 5199 and inserting the
following:
``5199. National bank dividends.''.
SEC. 303. REPEAL OF OBSOLETE LIMITATION ON REMOVAL AUTHORITY
OF THE COMPTROLLER OF THE CURRENCY.
Section 8(e)(4) of the Federal Deposit Insurance Act (12
U.S.C. 1818(e)(4)) is amended by striking the 5th sentence.
SEC. 304. REPEAL OF OBSOLETE PROVISION IN THE REVISED
STATUTES.
Section 5143 of the Revised Statutes of the United States
(12 U.S.C. 59) is amended to read as follows:
``SEC. 5143. REDUCTION OF CAPITAL.
``(a) In General.--Subject to the approval of the
Comptroller of the Currency, a national banking association
may, by a vote of shareholders owning, in the aggregate, two-
thirds of its capital stock, reduce its capital.
``(b) Shareholder Distributions Authorized.--As part of its
capital reduction plan approved in accordance with subsection
(a), and with the affirmative vote of shareholders owning at
least two thirds of the shares of each class of its stock
outstanding (each voting as a class), a national banking
association may distribute cash or other assets to its
shareholders.''.
SEC. 305. ENHANCING THE AUTHORITY FOR BANKS TO MAKE COMMUNITY
DEVELOPMENT INVESTMENTS.
(a) National Banks.--The paragraph designated as the
``Eleventh.'' of section 5136 of the Revised Statutes of the
United States (12 U.S.C. 24) is amended to read as follows:
``Eleventh. To make investments directly or indirectly,
each of which promotes the public welfare by benefiting
primarily low- and moderate-income communities or families
(such as by providing housing, services, or jobs). An
association shall not make any such investment if the
investment would expose the association to unlimited
liability. The Comptroller of the Currency shall limit an
association's investments in any 1 project and an
association's aggregate investments under this paragraph. An
association's aggregate investments under this paragraph
shall not exceed an amount equal to the sum of 5 percent of
the association's capital stock actually paid in and
unimpaired and 5 percent of the association's unimpaired
surplus fund, unless the Comptroller determines by order that
the higher amount will pose no significant risk to the
affected deposit insurance fund, and the association is
adequately capitalized. In no case shall an association's
aggregate investments under this paragraph exceed an amount
equal to the sum of 15 percent of the association's capital
stock actually paid in and unimpaired and 15 percent of the
association's unimpaired surplus fund. The foregoing
standards and limitations apply to investments under this
paragraph made by a national bank directly and by its
subsidiaries.''.
(b) Conforming Amendments for State Member Banks.--The 23rd
undesignated paragraph of section 9 of the Federal Reserve
Act (12 U.S.C. 338a) is amended to read as follows:
``(23) A State member bank may make investments directly or
indirectly, each of which promotes the public welfare by
benefiting primarily low- and moderate-income communities or
families (such as by providing housing, services, or jobs),
to the extent permissible under State law. A State member
bank shall not make any such investment if the investment
would expose the State member bank to unlimited liability.
The Board shall limit a State member bank's investment in any
1 project and a State member bank's aggregate investments
under this paragraph. The aggregate amount of investments of
any State member bank under this paragraph may not exceed an
amount equal to the sum of 5 percent of the State member
bank's capital stock actually paid in and unimpaired and 5
percent of the State member bank's unimpaired surplus, unless
the Board determines, by order, that a higher amount will
pose no significant risk to the affected deposit insurance
fund; and the State member bank is adequately capitalized. In
no case shall the aggregate amount of investments of any
State member bank under this paragraph exceed an amount equal
to the sum of 15 percent of the State member bank's capital
stock actually paid in and unimpaired and 15 percent of the
State member bank's unimpaired surplus. The foregoing
standards and limitations apply to investments under this
paragraph made by a State member bank directly and by its
subsidiaries.''.
TITLE IV--SAVINGS ASSOCIATION PROVISIONS
SEC. 401. PARITY FOR SAVINGS ASSOCIATIONS UNDER THE
SECURITIES EXCHANGE ACT OF 1934 AND THE
INVESTMENT ADVISERS ACT OF 1940.
(a) Securities Exchange Act of 1934.--
(1) Definition of bank.--Section 3(a)(6) of the Securities
Exchange Act of 1934 (15 U.S.C. 78c(a)(6)) is amended--
(A) in subparagraph (A), by inserting ``or a Federal
savings association, as defined in section 2(5) of the Home
Owners' Loan Act'' after ``a banking institution organized
under the laws of the United States''; and
(B) in subparagraph (C)--
(i) by inserting ``or savings association, as defined in
section 2(4) of the Home Owners' Loan Act'' after ``banking
institution''; and
(ii) by inserting ``or savings associations'' after
``having supervision over banks''.
(2) Inclusion of ots under the definition of appropriate
regulatory agency for certain purposes.--Section 3(a)(34) of
the Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(34)) is
amended--
(A) in subparagraph (A)--
(i) in clause (ii), by striking ``(i) or (iii)'' and
inserting ``(i), (iii), or (iv)'';
(ii) in clause (iii), by striking ``and'' at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
``(iv) the Director of the Office of Thrift Supervision, in
the case of a savings association (as defined in section 3(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))),
the deposits of which are insured by the Federal Deposit
Insurance Corporation, a subsidiary or a department or
division of any such savings association, or a savings and
loan holding company; and'';
(B) in subparagraph (B)--
(i) in clause (ii), by striking ``(i) or (iii)'' and
inserting ``(i), (iii), or (iv)'';
(ii) in clause (iii), by striking ``and'' at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
``(iv) the Director of the Office of Thrift Supervision, in
the case of a savings association (as defined in section 3(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))),
the deposits of which are insured by the Federal Deposit
Insurance Corporation, or a subsidiary of any such savings
association, or a savings and loan holding company; and'';
(C) in subparagraph (C)--
(i) in clause (ii), by striking ``(i) or (iii)'' and
inserting ``(i), (iii), or (iv)'';
(ii) in clause (iii), by striking ``and'' at the end;
(iii) by redesignating clause (iv) as clause (v); and
(iv) by inserting after clause (iii) the following:
``(iv) the Director of the Office of Thrift Supervision, in
the case of a savings association (as defined in section 3(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))),
the deposits of which are insured by the Federal Deposit
Insurance Corporation, a savings and loan holding company, or
a subsidiary of a savings and loan holding company when the
appropriate regulatory agency for such clearing agency is not
the Commission; and'';
(D) in subparagraph (D)--
(i) in clause (ii), by striking ``and'' at the end;
(ii) by redesignating clause (iii) as clause (iv); and
(iii) by inserting after clause (ii) the following:
``(iii) the Director of the Office of Thrift Supervision,
in the case of a savings association (as defined in section
3(b) of the Federal Deposit Insurance Act (12 U.S.C.
1813(b))) the deposits of which are insured by the Federal
Deposit Insurance Corporation; and'';
(E) in subparagraph (F)--
(i) by redesignating clauses (ii), (iii), and (iv) as
clauses (iii), (iv), and (v), respectively; and
(ii) by inserting after clause (i) the following:
``(ii) the Director of the Office of Thrift Supervision, in
the case of a savings association (as defined in section 3(b)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(b))),
the deposits of which are insured by the Federal Deposit
Insurance Corporation; and'';
(F) by moving subparagraph (H) and inserting such
subparagraph immediately after subparagraph (G); and
(G) by adding at the end of the undesignated matter at the
end the following: ``As used in this paragraph, the term
`savings and loan holding company' has the same meaning as in
section 10(a) of the Home Owners' Loan Act (12 U.S.C.
1467a(a)).''.
(3) Conforming exemption to reporting requirement.--Section
23(b)(1) of the Securities Exchange Act of 1934 (15 U.S.C.
78w(b)(1)) is amended by inserting ``other than the Office of
Thrift Supervision,'' before ``shall each''.
(b) Investment Advisers Act of 1940.--
(1) Definition of bank.--Section 202(a)(2) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)(2)) is
amended--
(A) in subparagraph (A), by inserting ``or a Federal
savings association, as defined in section 2(5) of the Home
Owners' Loan Act'' after ``a banking institution organized
under the laws of the United States''; and
(B) in subparagraph (C)--
(i) by inserting ``, savings association, as defined in
section 2(4) of the Home Owners' Loan Act,'' after ``banking
institution''; and
(ii) by inserting ``or savings associations'' after
``having supervision over banks''.
(2) Conforming amendments.--Section 210A of the Investment
Advisers Act of 1940 (15 U.S.C. 80b-10a) is amended in each
of subsections (a)(1)(A)(i), (a)(1)(B), (a)(2), and (b), by
striking ``bank holding company'' each place that term
appears and inserting ``bank holding company or savings and
loan holding company''.
(c) Conforming Amendment to the Investment Company Act of
1940.--Section 10(c) of the Investment Company Act of 1940
(15 U.S.C. 80a-10(c)) is amended by inserting after ``1956)''
the following: ``or any one savings and loan holding company,
together with its affiliates and subsidiaries (as such terms
are defined in section 10 of the Home Owners' Loan Act),''.
SEC. 402. REPEAL OF OVERLAPPING RULES GOVERNING PURCHASED
MORTGAGE SERVICING RIGHTS.
Section 5(t) of the Home Owners' Loan Act (12 U.S.C.
1464(t)) is amended--
(1) by striking paragraph (4) and inserting the following:
[[Page H7576]]
``(4) [Repealed].''; and
(2) in paragraph (9)(A), by striking ``intangible assets,
plus'' and all that follows through the period at the end and
inserting ``intangible assets.''.
SEC. 403. CLARIFYING CITIZENSHIP OF FEDERAL SAVINGS
ASSOCIATIONS FOR FEDERAL COURT JURISDICTION.
Section 5 of the Home Owners' Loan Act (12 U.S.C. 1464) is
amended by adding at the end the following:
``(x) Home State Citizenship.--In determining whether a
Federal court has diversity jurisdiction over a case in which
a Federal savings association is a party, the Federal savings
association shall be considered to be a citizen only of the
State in which such savings association has its home
office.''.
SEC. 404. REPEAL OF LIMITATION ON LOANS TO ONE BORROWER.
Section 5(u)(2)(A) of the Home Owners' Loan Act (12 U.S.C.
1464(u)(2)(A)) is amended--
(1) in clause (i)--
(A) by striking ``for any'' and inserting ``For any''; and
(B) by striking ``; or'' and inserting a period; and
(2) in clause (ii)--
(A) by striking ``to develop domestic'' and inserting ``To
develop domestic'';
(B) by striking subclause (I); and
(C) by redesignating subclauses (II) through (V) as
subclauses (I) through (IV), respectively.
TITLE V--CREDIT UNION PROVISIONS
SEC. 501. LEASES OF LAND ON FEDERAL FACILITIES FOR CREDIT
UNIONS.
(a) In General.--Section 124 of the Federal Credit Union
Act (12 U.S.C. 1770) is amended--
(1) by striking ``Upon application by any credit union''
and inserting ``Notwithstanding any other provision of law,
upon application by any credit union'';
(2) by inserting ``on lands reserved for the use of, and
under the exclusive or concurrent jurisdiction of, the United
States or'' after ``officer or agency of the United States
charged with the allotment of space'';
(3) by inserting ``lease land or'' after ``such officer or
agency may in his or its discretion''; and
(4) by inserting ``or the facility built on the lease
land'' after ``credit union to be served by the allotment of
space''.
(b) Clerical Amendment.--The section heading for section
124 of the Federal Credit Union Act (12 U.S.C. 1770) is
amended by inserting ``OR FEDERAL LAND'' after ``BUILDINGS''.
SEC. 502. INCREASE IN GENERAL 12-YEAR LIMITATION OF TERM OF
FEDERAL CREDIT UNION LOANS TO 15 YEARS.
Section 107(5) of the Federal Credit Union Act (12 U.S.C.
1757(5)) is amended in the matter preceding subparagraph (A),
by striking ``to make loans, the maturities of which shall
not exceed twelve years'' and inserting ``to make loans, the
maturities of which shall not exceed 15 years,''.
SEC. 503. CHECK CASHING AND MONEY TRANSFER SERVICES OFFERED
WITHIN THE FIELD OF MEMBERSHIP.
Section 107(12) of the Federal Credit Union Act (12 U.S.C.
1757(12)) is amended to read as follows:
``(12) in accordance with regulations prescribed by the
Board--
``(A) to sell, to persons in the field of membership,
negotiable checks (including travelers checks), money orders,
and other similar money transfer instruments (including
international and domestic electronic fund transfers); and
``(B) to cash checks and money orders and receive
international and domestic electronic fund transfers for
persons in the field of membership for a fee;''.
SEC. 504. CLARIFICATION OF DEFINITION OF NET WORTH UNDER
CERTAIN CIRCUMSTANCES FOR PURPOSES OF PROMPT
CORRECTIVE ACTION.
Section 216(o)(2)(A) of the Federal Credit Union Act (12
U.S.C. 1790d(o)(2)(A)) is amended--
(1) by inserting ``the'' before ``retained earnings
balance''; and
(2) by inserting ``, together with any amounts that were
previously retained earnings of any other credit union with
which the credit union has combined'' before the semicolon at
the end.
SEC. 505. AMENDMENTS RELATING TO NONFEDERALLY INSURED CREDIT
UNIONS.
(a) In General.--Subsection (a) of section 43 of the
Federal Deposit Insurance Act (12 U.S.C. 1831t(a)) is amended
by adding at the end the following new paragraph:
``(3) Enforcement by appropriate state supervisor.--Any
appropriate State supervisor of a private deposit insurer,
and any appropriate State supervisor of a depository
institution which receives deposits that are insured by a
private deposit insurer, may examine and enforce compliance
with this subsection under the applicable regulatory
authority of such supervisor.''.
(b) Amendment Relating to Disclosures Required, Periodic
Statements, and Account Records.--Section 43(b)(1) of the
Federal Deposit Insurance Act (12 U.S.C. 1831t(b)(1)) is
amended by striking ``or similar instrument evidencing a
deposit'' and inserting ``or share certificate.''.
(c) Amendments Relating to Disclosures Required,
Advertising, Premises.--Section 43(b)(2) of the Federal
Deposit Insurance Act (12 U.S.C. 1831t(b)(2)) is amended to
read as follows:
``(2) Advertising; premises.--
``(A) In general.--Include clearly and conspicuously in all
advertising, except as provided in subparagraph (B); and at
each station or window where deposits are normally received,
its principal place of business and all its branches where it
accepts deposits or opens accounts (excluding automated
teller machines or point of sale terminals), and on its main
Internet page, a notice that the institution is not federally
insured.
``(B) Exceptions.--The following need not include a notice
that the institution is not federally insured:
``(i) Any sign, document, or other item that contains the
name of the depository institution, its logo, or its contact
information, but only if the sign, document, or item does not
include any information about the institution's products or
services or information otherwise promoting the institution.
``(ii) Small utilitarian items that do not mention deposit
products or insurance if inclusion of the notice would be
impractical.''.
(d) Amendments Relating to Acknowledgment of Disclosure.--
Section 43(b)(3) of the Federal Deposit Insurance Act (12
U.S.C. 1831t(b)(3)) is amended to read as follows:
``(3) Acknowledgment of disclosure.--
``(A) New depositors obtained other than through a
conversion or merger.--With respect to any depositor who was
not a depositor at the depository institution before the
effective date of the Financial Services Regulatory Relief
Act of 2006, and who is not a depositor as described in
subparagraph (B), receive any deposit for the account of such
depositor only if the depositor has signed a written
acknowledgement that--
``(i) the institution is not federally insured; and
``(ii) if the institution fails, the Federal Government
does not guarantee that the depositor will get back the
depositor's money.
``(B) New depositors obtained through a conversion or
merger.--With respect to a depositor at a federally insured
depository institution that converts to, or merges into, a
depository institution lacking federal insurance after the
effective date of the Financial Services Regulatory Relief
Act of 2006, receive any deposit for the account of such
depositor only if--
``(i) the depositor has signed a written acknowledgement
described in subparagraph (A); or
``(ii) the institution makes an attempt, as described in
subparagraph (D) and sent by mail no later than 45 days after
the effective date of the conversion or merger, to obtain the
acknowledgment.
``(C) Current depositors.--Receive any deposit after the
effective date of the Financial Services Regulatory Relief
Act of 2006 for the account of any depositor who was a
depositor on that date only if--
``(i) the depositor has signed a written acknowledgement
described in subparagraph (A); or
``(ii) the institution has complied with the provisions of
subparagraph (E) which are applicable as of the date of the
deposit.
``(D) Alternative provision of notice to new depositors
obtained through a conversion or merger.--
``(i) In general.--Transmit to each depositor who has not
signed a written acknowledgement described in subparagraph
(A)--
``(I) a conspicuous card containing the information
described in clauses (i) and (ii) of subparagraph (A), and a
line for the signature of the depositor; and
``(II) accompanying materials requesting the depositor to
sign the card, and return the signed card to the institution.
``(E) Alternative provision of notice to current
depositors.--
``(i) In general.--Transmit to each depositor who was a
depositor before the effective date of the Financial Services
Regulatory Relief Act of 2006, and has not signed a written
acknowledgement described in subparagraph (A)--
``(I) a conspicuous card containing the information
described in clauses (i) and (ii) of subparagraph (A), and a
line for the signature of the depositor; and
``(II) accompanying materials requesting the depositor to
sign the card, and return the signed card to the institution.
``(ii) Manner and timing of notice.--
``(I) First notice.--Make the transmission described in
clause (i) via mail not later than three months after the
effective date of the Financial Services Regulatory Relief
Act of 2006.
``(II) Second notice.--Make a second transmission described
in clause (i) via mail not less than 30 days and not more
than three months after a transmission to the depositor in
accordance with subclause (I), if the institution has not, by
the date of such mailing, received from the depositor a card
referred to in clause (i) which has been signed by the
depositor.''.
(e) Amendments Relating to Manner and Content of
Disclosure.--Section 43(c) of the Federal Deposit Insurance
Act (12 U.S.C. 1831t(c)) is amended to read as follows:
``(c) Manner and Content of Disclosure.--To ensure that
current and prospective customers understand the risks
involved in foregoing Federal deposit insurance, the Federal
Trade Commission, by regulation or order, shall prescribe the
manner and content of disclosure required under this section,
which shall be presented in such format and in such type size
and manner as to be simple and easy to understand.''.
(f) Repeal of Provision Prohibiting Nondepository
Institutions from Accepting Deposits.--Section 43 of the
Federal Deposit Insurance Act (12 U.S.C. 1831t) is amended--
(1) by striking subsection (e); and
(2) by redesignating subsections (f) and (g) as subsections
(e) and (f), respectively.
(g) Repeal of FTC Authority to Enforce Independent Audit
Requirement; Concurrent State Enforcement.--Subsection (f)
(as
[[Page H7577]]
so redesignated by subsection (e) of this section) of section
43 of the Federal Deposit Insurance Act (12 U.S.C. 1831t) is
amended to read as follows:
``(f) Enforcement.--
``(1) Limited ftc enforcement authority.--Compliance with
the requirements of subsections (b), (c) and (e), and any
regulation prescribed or order issued under any such
subsection, shall be enforced under the Federal Trade
Commission Act by the Federal Trade Commission.
``(2) Broad state enforcement authority.--
``(A) In general.--Subject to subparagraph (C), an
appropriate State supervisor of a depository institution
lacking Federal deposit insurance may examine and enforce
compliance with the requirements of this section, and any
regulation prescribed under this section.
``(B) State powers.--For purposes of bringing any action to
enforce compliance with this section, no provision of this
section shall be construed as preventing an appropriate State
supervisor of a depository institution lacking Federal
deposit insurance from exercising any powers conferred on
such official by the laws of such State.
``(C) Limitation on state action while federal action
pending.--If the Federal Trade Commission has instituted an
enforcement action for a violation of this section, no
appropriate State supervisor may, during the pendency of such
action, bring an action under this section against any
defendant named in the complaint of the Commission for any
violation of this section that is alleged in that
complaint.''.
TITLE VI--DEPOSITORY INSTITUTION PROVISIONS
SEC. 601. REPORTING REQUIREMENTS RELATING TO INSIDER LENDING.
(a) Reporting Requirements Regarding Loans to Executive
Officers of Member Banks.--Section 22(g) of the Federal
Reserve Act (12 U.S.C. 375a) is amended--
(1) by striking paragraphs (6) and (9); and
(2) by redesignating paragraphs (7), (8), and (10) as
paragraphs (6), (7), and (8), respectively.
(b) Reporting Requirements Regarding Loans From
Correspondent Banks to Executive Officers and Shareholders of
Insured Banks.--Section 106(b)(2) of the Bank Holding Company
Act Amendments of 1970 (12 U.S.C. 1972(2)) is amended--
(1) by striking subparagraph (G); and
(2) by redesignating subparagraphs (H) and (I) as
subparagraphs (G) and (H), respectively.
SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK
SERVICE COMPANIES AUTHORIZED.
(a) In General.--Sections 2 and 3 of the Bank Service
Company Act (12 U.S.C. 1862, 1863) are each amended by
striking ``insured bank'' each place that term appears and
inserting ``insured depository institution''.
(b) Technical and Conforming Amendments.--
(1) Bank service company act definitions.--Section 1(b) of
the Bank Service Company Act (12 U.S.C. 1861(b)) is amended--
(A) in paragraph (4)--
(i) by inserting ``, except when such term appears in
connection with the term `insured depository institution',''
after ``means''; and
(ii) by striking ``Federal Home Loan Bank Board'' and
inserting ``Director of the Office of Thrift Supervision'';
(B) by striking paragraph (5) and inserting the following:
``(5) Insured depository institution.--The term `insured
depository institution' has the same meaning as in section
3(c) of the Federal Deposit Insurance Act;'';
(C) by striking ``and'' at the end of paragraph (7);
(D) by striking the period at the end of paragraph (8) and
inserting ``; and'';
(E) by adding at the end the following:
``(9) the terms `State depository institution', `Federal
depository institution', `State savings association' and
`Federal savings association' have the same meanings as in
section 3 of the Federal Deposit Insurance Act.'';
(F) in paragraph (2), in subparagraphs (A)(ii) and (B)(ii),
by striking ``insured banks'' each place that term appears
and inserting ``insured depository institutions''; and
(G) in paragraph (8)--
(i) by striking ``insured bank'' and inserting ``insured
depository institution'';
(ii) by striking ``insured banks'' each place that term
appears and inserting ``insured depository institutions'';
and
(iii) by striking ``the bank's'' and inserting ``the
depository institution's''.
(2) Amount of investment.--Section 2 of the Bank Service
Company Act (12 U.S.C. 1862) is amended by inserting ``or
savings associations, other than the limitation on the amount
of investment by a Federal savings association contained in
section 5(c)(4)(B) of the Home Owners' Loan Act'' after
``relating to banks''.
(3) Location of services.--Section 4 of the Bank Service
Company Act (12 U.S.C. 1864) is amended--
(A) in subsection (b), by inserting ``as permissible under
subsection (c), (d), or (e) or'' after ``Except'';
(B) in subsection (c), by inserting ``or State savings
association'' after ``State bank'' each place that term
appears;
(C) in subsection (d), by inserting ``or Federal savings
association'' after ``national bank'' each place that term
appears;
(D) by striking subsection (e) and inserting the following:
``(e) Performance Where State Bank and National Bank Are
Shareholders or Members.--A bank service company may
perform--
``(1) only those services that each depository institution
shareholder or member is otherwise authorized to perform
under any applicable Federal or State law; and
``(2) such services only at locations in a State in which
each such shareholder or member is authorized to perform such
services.''; and
(E) in subsection (f), by inserting ``or savings
associations'' after ``location of banks''.
(4) Prior approval of investments.--Section 5 of the Bank
Service Company Act (12 U.S.C. 1865) is amended--
(A) in subsection (a)--
(i) by striking ``insured bank'' and inserting ``insured
depository institution''; and
(ii) by striking ``bank's''; and
(iii) by inserting before the period ``for the insured
depository institution'';
(B) in subsection (b)--
(i) by striking ``insured bank'' and inserting ``insured
depository institution'';
(ii) by inserting ``authorized only'' after ``performs any
service''; and
(iii) by inserting ``authorized only'' after ``perform any
activity''; and
(C) in subsection (c)--
(i) by striking ``the bank or banks'' and inserting ``any
insured depository institution''; and
(ii) by striking ``capability of the bank'' and inserting
``capability of the insured depository institution''.
(5) Regulation and examination.--Section 7 of the Bank
Service Company Act (12 U.S.C. 1867) is amended--
(A) in subsection (b), by striking ``insured bank'' and
inserting ``insured depository institution''; and
(B) in subsection (c)--
(i) by striking ``a bank'' each place that term appears and
inserting ``a depository institution''; and
(ii) by striking ``the bank'' each place that term appears
and inserting ``the depository institution''.
SEC. 603. AUTHORIZATION FOR MEMBER BANK TO USE PASS-THROUGH
RESERVE ACCOUNTS.
Section 19(c)(1)(B) of the Federal Reserve Act (12 U.S.C.
461(c)(1)(B)) is amended by striking ``which is not a member
bank''.
SEC. 604. STREAMLINING REPORTS OF CONDITION.
Section 7(a) of the Federal Deposit Insurance Act (12
U.S.C. 1817(a)) is amended by adding at the end the
following:
``(11) Streamlining reports of condition.--
``(A) Review of information and schedules.--Before the end
of the 1-year period beginning on the date of enactment of
the Financial Services Regulatory Relief Act of 2006 and
before the end of each 5-year period thereafter, each Federal
banking agency shall, in conjunction with the other relevant
Federal banking agencies, review the information and
schedules that are required to be filed by an insured
depository institution in a report of condition required
under paragraph (3).
``(B) Reduction or elimination of information found to be
unnecessary.--After completing the review required by
subparagraph (A), a Federal banking agency, in conjunction
with the other relevant Federal banking agencies, shall
reduce or eliminate any requirement to file information or
schedules under paragraph (3) (other than information or
schedules that are otherwise required by law) if the agency
determines that the continued collection of such
information or schedules is no longer necessary or
appropriate.''.
SEC. 605. EXPANSION OF ELIGIBILITY FOR 18-MONTH EXAMINATION
SCHEDULE FOR COMMUNITY BANKS.
Section 10(d)(4)(A) of the Federal Deposit Insurance Act
(12 U.S.C. 1820(d)(4)(A)) is amended by striking
``$250,000,000'' and inserting ``$500,000,000''.
SEC. 606. STREAMLINING DEPOSITORY INSTITUTION MERGER
APPLICATION REQUIREMENTS.
(a) In General.--Section 18(c)(4) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(c)(4)) is amended to read as
follows:
``(4) Reports on competitive factors.--
``(A) Request for report.--In the interests of uniform
standards and subject to subparagraph (B), before acting on
any application for approval of a merger transaction, the
responsible agency shall--
``(i) request a report on the competitive factors involved
from the Attorney General of the United States; and
``(ii) provide a copy of the request to the Corporation
(when the Corporation is not the responsible agency).
``(B) Furnishing of report.--The report requested under
subparagraph (A) shall be furnished by the Attorney General
to the responsible agency--
``(i) not later than 30 calendar days after the date on
which the Attorney General received the request; or
``(ii) not later than 10 calendar days after such date, if
the requesting agency advises the Attorney General that an
emergency exists requiring expeditious action.
``(C) Exceptions.--A responsible agency may not be required
to request a report under subparagraph (A) if--
``(i) the responsible agency finds that it must act
immediately in order to prevent the probable failure of 1 of
the insured depository institutions involved in the merger
transaction; or
[[Page H7578]]
``(ii) the merger transaction involves solely an insured
depository institution and 1 or more of the affiliates of
such depository institution.''.
(b) Technical and Conforming Amendments.--Section 18(c)(6)
of the Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6))
is amended--
(1) in the second sentence, by striking ``banks or savings
associations involved and reports on the competitive factors
have'' and inserting ``insured depository institutions
involved, or if the proposed merger transaction is solely
between an insured depository institution and 1 or more of
its affiliates, and the report on the competitive factors
has''; and
(2) by striking the penultimate sentence and inserting the
following: ``If the agency has advised the Attorney General
under paragraph (4)(B)(ii) of the existence of an emergency
requiring expeditious action and has requested a report on
the competitive factors within 10 days, the transaction may
not be consummated before the fifth calendar day after the
date of approval by the agency.''.
SEC. 607. NONWAIVER OF PRIVILEGES.
(a) Insured Depository Institutions.--Section 18 of the
Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by
adding at the end the following:
``(x) Privileges Not Affected by Disclosure to Banking
Agency or Supervisor.--
``(1) In general.--The submission by any person of any
information to any Federal banking agency, State bank
supervisor, or foreign banking authority for any purpose in
the course of any supervisory or regulatory process of such
agency, supervisor, or authority shall not be construed as
waiving, destroying, or otherwise affecting any privilege
such person may claim with respect to such information under
Federal or State law as to any person or entity other than
such agency, supervisor, or authority.
``(2) Rule of construction.--No provision of paragraph (1)
may be construed as implying or establishing that--
``(A) any person waives any privilege applicable to
information that is submitted or transferred under any
circumstance to which paragraph (1) does not apply; or
``(B) any person would waive any privilege applicable to
any information by submitting the information to any Federal
banking agency, State bank supervisor, or foreign banking
authority, but for this subsection.''
(b) Insured Credit Unions.--Section 205 of the Federal
Credit Union Act (12 U.S.C.1785) is amended by adding at the
end the following:
``(j) Privileges Not Affected by Disclosure to Banking
Agency or Supervisor.--
``(1) In general.--The submission by any person of any
information to the Administration, any State credit union
supervisor, or foreign banking authority for any purpose in
the course of any supervisory or regulatory process of such
Board, supervisor, or authority shall not be construed as
waiving, destroying, or otherwise affecting any privilege
such person may claim with respect to such information under
Federal or State law as to any person or entity other than
such Board, supervisor, or authority.
``(2) Rule of construction.--No provision of paragraph (1)
may be construed as implying or establishing that--
``(A) any person waives any privilege applicable to
information that is submitted or transferred under any
circumstance to which paragraph (1) does not apply; or
``(B) any person would waive any privilege applicable to
any information by submitting the information to the
Administration, any State credit union supervisor, or foreign
banking authority, but for this subsection.''.
SEC. 608. CLARIFICATION OF APPLICATION REQUIREMENTS FOR
OPTIONAL CONVERSION FOR FEDERAL SAVINGS
ASSOCIATIONS.
(a) Home Owners' Loan Act.--Section 5(i)(5) of the Home
Owners' Loan Act (12 U.S.C. 1464(i)(5)) is amended to read as
follows:
``(5) Conversion to national or state bank.--
``(A) In general.--Any Federal savings association
chartered and in operation before the date of enactment of
the Gramm-Leach-Bliley Act, with branches in operation before
such date of enactment in 1 or more States, may convert, at
its option, with the approval of the Comptroller of the
Currency for each national bank, and with the approval of the
appropriate State bank supervisor and the appropriate Federal
banking agency for each State bank, into 1 or more national
or State banks, each of which may encompass 1 or more of the
branches of the Federal savings association in operation
before such date of enactment in 1 or more States subject to
subparagraph (B).
``(B) Conditions of conversion.--The authority in
subparagraph (A) shall apply only if each resulting national
or State bank--
``(i) will meet all financial, management, and capital
requirements applicable to the resulting national or State
bank; and
``(ii) if more than 1 national or State bank results from a
conversion under this subparagraph, has received approval
from the Federal Deposit Insurance Corporation under section
5(a) of the Federal Deposit Insurance Act.
``(C) No merger application under fdia required.--No
application under section 18(c) of the Federal Deposit
Insurance Act shall be required for a conversion under this
paragraph.
``(D) Definitions.--For purposes of this paragraph, the
terms `State bank' and `State bank supervisor' have the same
meanings as in section 3 of the Federal Deposit Insurance
Act.''.
(b) Federal Deposit Insurance Act.--Section 4(c) of the
Federal Deposit Insurance Act (12 U.S.C. 1814(c)) is
amended--
(1) by inserting ``of this Act and section 5(i)(5) of the
Home Owners' Loan Act'' after ``Subject to section 5(d)'';
and
(2) in paragraph (2), after ``insured State,'' by inserting
``or Federal''.
SEC. 609. EXEMPTION FROM DISCLOSURE OF PRIVACY POLICY FOR
ACCOUNTANTS.
(a) In General.--Section 503 of the Gramm-Leach-Bliley Act
(15 U.S.C. 6803) is amended by adding at the end the
following:
``(d) Exemption for Certified Public Accountants.--
``(1) In general.--The disclosure requirements of
subsection (a) do not apply to any person, to the extent that
the person is--
``(A) a certified public accountant;
``(B) certified or licensed for such purpose by a State;
and
``(C) subject to any provision of law, rule, or regulation
issued by a legislative or regulatory body of the State,
including rules of professional conduct or ethics, that
prohibits disclosure of nonpublic personal information
without the knowing and expressed consent of the consumer.
``(2) Limitation.--Nothing in this subsection shall be
construed to exempt or otherwise exclude any financial
institution that is affiliated or becomes affiliated with a
certified public accountant described in paragraph (1) from
any provision of this section.
``(3) Definitions.--For purposes of this subsection, the
term `State' means any State or territory of the United
States, the District of Columbia, Puerto Rico, Guam, American
Samoa, the Trust Territory of the Pacific Islands, the Virgin
Islands, or the Northern Mariana Islands.''.
(b) Clerical Amendments.--Section 503 of the Gramm-Leach-
Bliley Act (15 U.S.C. 6803) is amended--
(1) by redesignating subsection (b) as subsection (c); and
(2) in subsection (a), by striking ``Such disclosures'' and
inserting the following:
``(b) Regulations.--Disclosures required by subsection
(a)''.
SEC. 610. INFLATION ADJUSTMENT FOR THE SMALL DEPOSITORY
INSTITUTION EXCEPTION UNDER THE DEPOSITORY
INSTITUTION MANAGEMENT INTERLOCKS ACT.
Section 203(1) of the Depository Institution Management
Interlocks Act (12 U.S.C. 3202(1)) is amended by striking
``$20,000,000'' and inserting ``$50,000,000''.
SEC. 611. MODIFICATION TO CROSS MARKETING RESTRICTIONS.
Section 4(n)(5)(B) of the Bank Holding Company Act of 1956
(12 U.S.C. 1843(n)(5)(B)) is amended by striking ``subsection
(k)(4)(I)'' and inserting ``subparagraph (H) or (I) of
subsection (k)(4)''.
TITLE VII--BANKING AGENCY PROVISIONS
SEC. 701. STATUTE OF LIMITATIONS FOR JUDICIAL REVIEW OF
APPOINTMENT OF A RECEIVER FOR DEPOSITORY
INSTITUTIONS.
(a) National Banks.--Section 2 of the National Bank
Receivership Act (12 U.S.C. 191) is amended--
(1) by amending the section heading to read as follows:
``SEC. 2. APPOINTMENT OF RECEIVER FOR A NATIONAL BANK.
``(a) In General.--The Comptroller of the Currency''; and
(2) by adding at the end the following:
``(b) Judicial Review.--If the Comptroller of the Currency
appoints a receiver under subsection (a), the national bank
may, within 30 days thereafter, bring an action in the United
States district court for the judicial district in which the
home office of such bank is located, or in the United States
District Court for the District of Columbia, for an order
requiring the Comptroller of the Currency to remove the
receiver, and the court shall, upon the merits, dismiss such
action or direct the Comptroller of the Currency to remove
the receiver.''.
(b) Insured Depository Institutions.--Section 11(c)(7) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(c)(7)) is
amended to read as follows:
``(7) Judicial review.--If the Corporation is appointed
(including the appointment of the Corporation as receiver by
the Board of Directors) as conservator or receiver of a
depository institution under paragraph (4), (9), or (10), the
depository institution may, not later than 30 days
thereafter, bring an action in the United States district
court for the judicial district in which the home office of
such depository institution is located, or in the United
States District Court for the District of Columbia, for an
order requiring the Corporation to be removed as the
conservator or receiver (regardless of how such appointment
was made), and the court shall, upon the merits, dismiss such
action or direct the Corporation to be removed as the
conservator or receiver.''.
(c) Effective Date.--The amendments made by subsections (a)
and (b) shall apply with respect to conservators or receivers
appointed on or after the date of enactment of this Act.
SEC. 702. ENHANCING THE SAFETY AND SOUNDNESS OF INSURED
DEPOSITORY INSTITUTIONS.
(a) Clarification Relating to the Enforceability of
Agreements and Conditions.--The Federal Deposit Insurance Act
[[Page H7579]]
(12 U.S.C. 1811 et seq.) is amended by adding at the end the
following:
``SEC. [49] 50. ENFORCEMENT OF AGREEMENTS.
``(a) In General.--Notwithstanding clause (i) or (ii) of
section 8(b)(6)(A) or section 38(e)(2)(E)(i), the appropriate
Federal banking agency for a depository institution may
enforce, under section 8, the terms of--
``(1) any condition imposed in writing by the agency on the
depository institution or an institution-affiliated party in
connection with any action on any application, notice, or
other request concerning the depository institution; or
``(2) any written agreement entered into between the agency
and the depository institution or an institution-affiliated
party.
``(b) Receiverships and Conservatorships.--After the
appointment of the Corporation as the receiver or conservator
for a depository institution, the Corporation may enforce any
condition or agreement described in paragraph (1) or (2) of
subsection (a) imposed on or entered into with such
institution or institution-affiliated party through an action
brought in an appropriate United States district court.''.
(b) Protection of Capital of Insured Depository
Institutions.--Section 18(u)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(u)(1)) is amended--
(1) by striking subparagraph (B);
(2) by redesignating subparagraph (C) as subparagraph (B);
and
(3) in subparagraph (A), by adding ``and'' at the end.
(c) Conforming Amendments.--Section 8(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1818(b)) is amended--
(1) in paragraph (3), by striking ``This subsection and
subsections (c) through (s) and subsection (u) of this
section'' and inserting ``This subsection, subsections (c)
through (s) and subsection (u) of this section, and section
[49] 50 of this Act''; and
(2) in paragraph (4), by striking ``This subsection and
subsections (c) through (s) and subsection (u) of this
section'' and inserting ``This subsection, subsections (c)
through (s) and subsection (u) of this section, and section
[49] 50 of this Act''.
SEC. 703. CROSS GUARANTEE AUTHORITY.
Section 5(e)(9)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1815(e)(9)(A)) is amended to read as follows:
``(A) such institutions are controlled by the same company;
or''.
SEC. 704. GOLDEN PARACHUTE AUTHORITY AND NONBANK HOLDING
COMPANIES.
Section 18(k) of the Federal Deposit Insurance Act (12
U.S.C. 1828(k)) is amended--
(1) in paragraph (2)(A), by striking ``or depository
institution holding company'' and inserting ``or covered
company'';
(2) in paragraph (2), by striking subparagraph (B), and
inserting the following:
``(B) Whether there is a reasonable basis to believe that
the institution-affiliated party is substantially responsible
for--
``(i) the insolvency of the depository institution or
covered company;
``(ii) the appointment of a conservator or receiver for the
depository institution; or
``(iii) the troubled condition of the depository
institution (as defined in the regulations prescribed
pursuant to section 32(f)).'';
(3) in paragraph (2)(F), by striking ``depository
institution holding company'' and inserting ``covered
company,'';
(4) in paragraph (3) in the matter preceding subparagraph
(A), by striking ``depository institution holding company''
and inserting ``covered company'';
(5) in paragraph (3)(A), by striking ``holding company''
and inserting ``covered company'';
(6) in paragraph (4)(A)--
(A) by striking ``depository institution holding company''
each place that term appears and inserting ``covered
company''; and
(B) by striking ``holding company'' each place that term
appears (other than in connection with the term referred to
in subparagraph (A)) and inserting ``covered company'';
(7) in paragraph (5)(A), by striking ``depository
institution holding company'' and inserting ``covered
company'';
(8) in paragraph (5), by adding at the end the following:
``(D) Covered company.--The term `covered company' means
any depository institution holding company (including any
company required to file a report under section 4(f)(6) of
the Bank Holding Company Act of 1956), or any other company
that controls an insured depository institution.''; and
(9) in paragraph (6)--
(A) by striking ``depository institution holding company''
and inserting ``covered company,''; and
(B) by striking ``or holding company'' and inserting ``or
covered company''.
SEC. 705. AMENDMENTS RELATING TO CHANGE IN BANK CONTROL.
Section 7(j) of the Federal Deposit Insurance Act (12
U.S.C. 1817(j)) is amended--
(1) in paragraph (1)(D)--
(A) by striking ``is needed to investigate'' and inserting
``is needed--
``(i) to investigate'';
(B) by striking ``United States Code.'' and inserting
``United States Code; or''; and
(C) by adding at the end the following:
``(ii) to analyze the safety and soundness of any plans or
proposals described in paragraph (6)(E) or the future
prospects of the institution.''; and
(2) in paragraph (7)(C), by striking ``the financial
condition of any acquiring person'' and inserting ``either
the financial condition of any acquiring person or the future
prospects of the institution''.
SEC. 706. AMENDMENT TO PROVIDE THE FEDERAL RESERVE BOARD WITH
DISCRETION CONCERNING THE IMPUTATION OF CONTROL
OF SHARES OF A COMPANY BY TRUSTEES.
Section 2(g)(2) of the Bank Holding Company Act of 1956 (12
U.S.C. 1841(g)(2)) is amended by inserting before the period
at the end ``, unless the Board determines that such
treatment is not appropriate in light of the facts and
circumstances of the case and the purposes of this Act''.
SEC. 707. INTERAGENCY DATA SHARING.
(a) Federal Banking Agencies.--Section 7(a)(2) of the
Federal Deposit Insurance Act (12 U.S.C. 1817(a)(2)) is
amended by adding at the end the following:
``(C) Data sharing with other agencies and persons.--In
addition to reports of examination, reports of condition, and
other reports required to be regularly provided to the
Corporation (with respect to all insured depository
institutions, including a depository institution for which
the Corporation has been appointed conservator or receiver)
or an appropriate State bank supervisor (with respect to a
State depository institution) under subparagraph (A) or (B),
a Federal banking agency may, in the discretion of the
agency, furnish any report of examination or other
confidential supervisory information concerning any
depository institution or other entity examined by such
agency under authority of any Federal law, to--
``(i) any other Federal or State agency or authority with
supervisory or regulatory authority over the depository
institution or other entity;
``(ii) any officer, director, or receiver of such
depository institution or entity; and
``(iii) any other person that the Federal banking agency
determines to be appropriate.''.
(b) National Credit Union Administration.--Section 202(a)
of the Federal Credit Union Act (12 U.S.C. 1782(a)) is
amended by adding at the end the following:
``(8) Data sharing with other agencies and persons.--In
addition to reports of examination, reports of condition, and
other reports required to be regularly provided to the Board
(with respect to all insured credit unions, including a
credit union for which the Corporation has been appointed
conservator or liquidating agent) or an appropriate State
commission, board, or authority having supervision of a
State-chartered credit union, the Board may, in the
discretion of the Board, furnish any report of examination or
other confidential supervisory information concerning any
credit union or other entity examined by the Board under
authority of any Federal law, to--
``(A) any other Federal or State agency or authority with
supervisory or regulatory authority over the credit union or
other entity;
``(B) any officer, director, or receiver of such credit
union or entity; and
``(C) any other person that the Board determines to be
appropriate.''.
SEC. 708. CLARIFICATION OF EXTENT OF SUSPENSION, REMOVAL, AND
PROHIBITION AUTHORITY OF FEDERAL BANKING
AGENCIES IN CASES OF CERTAIN CRIMES BY
INSTITUTION-AFFILIATED PARTIES.
(a) Insured Depository Institutions.--
(1) In general.--Section 8(g)(1) of the Federal Deposit
Insurance Act (12 U.S.C. 1818(g)(1)) is amended--
(A) in subparagraph (A)--
(i) by striking ``is charged in any information,
indictment, or complaint, with the commission of or
participation in'' and inserting ``is the subject of any
information, indictment, or complaint, involving the
commission of or participation in'';
(ii) by striking ``may pose a threat to the interests of
the depository institution's depositors or may threaten to
impair public confidence in the depository institution,'' and
insert ``posed, poses, or may pose a threat to the interests
of the depositors of, or threatened, threatens, or may
threaten to impair public confidence in, any relevant
depository institution (as defined in subparagraph (E)),'';
and
(iii) by striking ``affairs of the depository institution''
and inserting ``affairs of any depository institution'';
(B) in subparagraph (B)(i), by striking ``the depository
institution'' and inserting ``any depository institution that
the subject of the notice is affiliated with at the time the
notice is issued'';
(C) in subparagraph (C)(i)--
(i) by striking ``may pose a threat to the interests of the
depository institution's depositors or may threaten to impair
public confidence in the depository institution,'' and insert
``posed, poses, or may pose a threat to the interests of the
depositors of, or threatened, threatens, or may threaten to
impair public confidence in, any relevant depository
institution (as defined in subparagraph (E)),''; and
(ii) by striking ``affairs of the depository institution''
and inserting ``affairs of any depository institution'';
(D) in subparagraph (C)(ii), by striking ``affairs of the
depository institution'' and inserting ``affairs of any
depository institution'';
(E) in subparagraph (D)(i), by striking ``the depository
institution'' and inserting ``any depository institution that
the subject of the order is affiliated with at the time the
order is issued''; and
(F) by adding at the end the following:
``(E) Relevant depository institution.--For purposes of
this subsection, the term
[[Page H7580]]
`relevant depository institution' means any depository
institution of which the party is or was an institution-
affiliated party at the time at which--
``(i) the information, indictment, or complaint described
in subparagraph (A) was issued; or
``(ii) the notice is issued under subparagraph (A) or the
order is issued under subparagraph (C)(i).''.
(2) Clerical amendment.--The subsection heading for section
8(g) of the Federal Deposit Insurance Act (12 U.S.C. 1818(g))
is amended to read as follows:
``(g) Suspension, Removal, and Prohibition From
Participation Orders in the Case of Certain Criminal
Offenses.--''.
(b) Insured Credit Unions.--
(1) In general.--Section 206(i)(1) of the Federal Credit
Union Act (12 U.S.C. 1786(i)(1)) is amended--
(A) in subparagraph (A), by striking ``the credit union''
each place that term appears and inserting ``any credit
union'';
(B) in subparagraph (B)(i), by inserting ``of which the
subject of the order is, or most recently was, an
institution-affiliated party'' before the period at the end;
(C) in subparagraph (C)--
(i) by striking ``the credit union'' each place such term
appears and inserting ``any credit union''; and
(ii) by striking ``the credit union's'' and inserting ``any
credit union's'';
(D) in subparagraph (D)(i), by striking ``upon such credit
union'' and inserting ``upon the credit union of which the
subject of the order is, or most recently was, an
institution-affiliated party''; and
(E) by adding at the end the following:
``(E) Continuation of authority.--The Board may issue an
order under this paragraph with respect to an individual who
is an institution-affiliated party at a credit union at the
time of an offense described in subparagraph (A) without
regard to--
``(i) whether such individual is an institution-affiliated
party at any credit union at the time the order is considered
or issued by the Board; or
``(ii) whether the credit union at which the individual was
an institution-affiliated party at the time of the offense
remains in existence at the time the order is considered or
issued by the Board.''.
(2) Clerical amendment.--Section 206(i) of the Federal
Credit Union Act (12 U.S.C. 1786(i)) is amended by striking
``(i)'' at the beginning and inserting the following:
``(i) Suspension, Removal, and Prohibition From
Participation Orders in the Case of Certain Criminal
Offenses.--''.
SEC. 709. PROTECTION OF CONFIDENTIAL INFORMATION RECEIVED BY
FEDERAL BANKING REGULATORS FROM FOREIGN BANKING
SUPERVISORS.
Section 15 of the International Banking Act of 1978 (12
U.S.C. 3109) is amended by adding at the end the following:
``(c) Confidential Information Received From Foreign
Supervisors.--
``(1) In general.--Except as provided in paragraph (3), a
Federal banking agency may not be compelled to disclose
information received from aforeign regulatory or supervisory
authority if--
``(A) the Federal banking agency determines that the
foreign regulatory or supervisory authority has, in good
faith, determined and represented in writing to such Federal
banking agency that public disclosure of the information
would violate the laws applicable to that foreign regulatory
or supervisory authority; and
``(B) the relevant Federal banking agency obtained such
information pursuant to--
``(i) such procedures as the Federal banking agency may
establish for use in connection with the administration and
enforcement of Federal banking laws; or
``(ii) a memorandum of understanding or other similar
arrangement between the Federal banking agency and the
foreign regulatory or supervisory authority.
``(2) Treatment under title 5, united states code.--For
purposes of section 552 of title 5, United States Code, this
subsection shall be treated as a statute described in
subsection (b)(3)(B) of such section.
``(3) Savings provision.--No provision of this section
shall be construed as--
``(A) authorizing any Federal banking agency to withhold
any information from any duly authorized committee of the
House of Representatives or the Senate; or
``(B) preventing any Federal banking agency from complying
with an order of a court of the United States in an action
commenced by the United States or such agency.
``(4) Federal banking agency defined.--For purposes of this
subsection, the term `Federal banking agency' means the
Board, the Comptroller of the Currency, the Federal Deposit
Insurance Corporation, and the Director of the Office of
Thrift Supervision.''.
[SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED
INDIVIDUALS.
[(a) Extension of Automatic Prohibition.--Section 19 of the
Federal Deposit Insurance Act (12 U.S.C. 1829) is amended by
adding at the end the following:
[``(d) Bank Holding Companies.--Subsections (a) and (b)
shall apply to any company (other than a foreign bank) that
is a bank holding company and any organization organized and
operated under section 25A of the Federal Reserve Act or
operating under section 25 of the Federal Reserve Act, as if
such bank holding company or organization were an insured
depository institution, except that such subsections shall be
applied for purposes of this subsection by substituting
`Board of Governors of the Federal Reserve System' for
`Corporation' each place that term appears in such
subsections.
[``(e) Savings and Loan Holding Companies.--Subsections (a)
and (b) shall apply to any savings and loan holding company
and any subsidiary (other than a savings association) of a
savings and loan holding company as if such savings and loan
holding company or subsidiary were an insured depository
institution, except that subsections shall be applied for
purposes of this subsection by substituting `Director of the
Office of Thrift Supervision' for `Corporation' each place
that term appears in such subsections.''.
[(b) Enhanced Discretion To Remove Convicted Individuals.--
Section 8(e)(2)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1818(e)(2)(A)) is amended--
[(1) by striking ``or'' at the end of clause (ii);
[(2) by striking the comma at the end of clause (iii) and
inserting ``; or''; and
[(3) by adding at the end the following:
[``(iv) an institution-affiliated party of a subsidiary
(other than a bank) of a bank holding company has been
convicted of any criminal offense involving dishonesty or a
breach of trust, or a criminal violation of section 1956,
1957, or 1960 of title 18 United States Code, or has agreed
to enter into a pretrial diversion or similar program in
connection with a prosecution for such an offense,''.]
SEC. 710. PROHIBITION ON PARTICIPATION BY CONVICTED
INDIVIDUALS.
(a) Extension of Automatic Prohibition.--Section 19 of the
Federal Deposit Insurance Act (12 U.S.C. 1829) is amended by
adding at the end the following new subsections:
``(d) Bank Holding Companies.--
``(1) In general.--Subsections (a) and (b) shall apply to
any company (other than a foreign bank) that is a bank
holding company and any organization organized and operated
under section 25A of the Federal Reserve Act or operating
under section 25 of the Federal Reserve Act, as if such bank
holding company or organization were an insured depository
institution, except that such subsections shall be applied
for purposes of this subsection by substituting `Board of
Governors of the Federal Reserve System' for `Corporation'
each place that term appears in such subsections.
``(2) Authority of board.--The Board of Governors of the
Federal Reserve System may provide exemptions, by regulation
or order, from the application of paragraph (1) if the
exemption is consistent with the purposes of this subsection.
``(e) Savings and Loan Holding Companies.--
``(1) In general.--Subsections (a) and (b) shall apply to
any savings and loan holding company as if such savings and
loan holding company were an insured depository institution,
except that such subsections shall be applied for purposes of
this subsection by substituting `Director of the Office of
Thrift Supervision' for `Corporation' each place that term
appears in such subsections.
``(2) Authority of director.--The Director of the Office of
Thrift Supervision may provide exemptions, by regulation or
order, from the application of paragraph (1) if the exemption
is consistent with the purposes of this subsection.''.
(b) Enhanced Discretion to Remove Convicted Individuals.--
Section 8(e)(2)(A) of the Federal Deposit Insurance Act (12
U.S.C. 1818(e)(2)(A)) is amended--
(1) by striking ``or'' at the end of clause (ii);
(2) by striking the comma at the end of clause (iii) and
inserting ``; or''; and
``(3) by adding at the end the following new clause:
``(iv) an institution-affiliated party of a subsidiary
(other than a bank) of a bank holding company or of a
subsidiary (other than a savings association) of a savings
and loan holding company has been convicted of any criminal
offense involving dishonesty or a breach of trust or a
criminal offense under section 1956, 1957, or 1960 of title
18, United States Code, or has agreed to enter into a
pretrial diversion or similar program in connection with a
prosecution for such an offense,''.
SEC. 711. COORDINATION OF STATE EXAMINATION AUTHORITY.
Section 10(h) of the Federal Deposit Insurance Act (12
U.S.C. 1820(h)) is amended to read as follows:
``(h) Coordination of Examination Authority.--
``(1) State bank supervisors of home and host states.--
``(A) Home state of bank.--The appropriate State bank
supervisor of the home State of an insured State bank has
authority to examine and supervise the bank.
``(B) Host state branches.--The State bank supervisor of
the home State of an insured State bank and any State bank
supervisor of an appropriate host State shall exercise its
respective authority to supervise and examine the branches of
the bank in a host State in accordance with the terms of any
applicable cooperative agreement between the home State bank
supervisor and the State bank supervisor of the relevant host
State.
``(C) Supervisory fees.--Except as expressly provided in a
cooperative agreement between the State bank supervisors of
the home State and any host State of an insured State bank,
only the State bank supervisor of the home State of an
insured State bank may levy or charge State supervisory fees
on the bank.
``(2) Host state examination.--
``(A) In general.--With respect to a branch operated in a
host State by an out-of-State
[[Page H7581]]
insured State bank that resulted from an interstate merger
transaction approved under section 44, or that was
established in such State pursuant to section 5155(g) of the
Revised Statutes of the United States, the third undesignated
paragraph of section 9 of the Federal Reserve Act or section
18(d)(4) of this Act, the appropriate State bank supervisor
of such host State may--
``(i) with written notice to the State bank supervisor of
the bank's home State and subject to the terms of any
applicable cooperative agreement with the State bank
supervisor of such home State, examine such branch for the
purpose of determining compliance with host State laws that
are applicable pursuant to section 24(j), including those
that govern community reinvestment, fair lending, and
consumer protection; and
``(ii) if expressly permitted under and subject to the
terms of a cooperative agreement with the State bank
supervisor of the bank's home State or if such out-of-State
insured State bank has been determined to be in a troubled
condition by either the State bank supervisor of the bank's
home State or the bank's appropriate Federal banking agency,
participate in the examination of the bank by the State bank
supervisor of the bank's home State to ascertain that the
activities of the branch in such host State are not conducted
in an unsafe or unsound manner.
``(B) Notice of determination.--
``(i) In general.--The State bank supervisor of the home
State of an insured State bank shall notify the State bank
supervisor of each host State of the bank if there has been a
final determination that the bank is in a troubled condition.
``(ii) Timing of notice.--The State bank supervisor of the
home State of an insured State bank shall provide notice
under clause (i) as soon as is reasonably possible, but in
all cases not later than 15 business days after the date on
which the State bank supervisor has made such final
determination or has received written notification of such
final determination.
``(3) Host state enforcement.--If the State bank supervisor
of a host State determines that a branch of an out-of-State
insured State bank is violating any law of the host State
that is applicable to such branch pursuant to section 24(j),
including a law that governs community reinvestment, fair
lending, or consumer protection, the State bank supervisor of
the host State or, to the extent authorized by the law of the
host State, a host State law enforcement officer may, with
written notice to the State bank supervisor of the bank's
home State and subject to the terms of any applicable
cooperative agreement with the State bank supervisor of the
bank's home State, undertake such enforcement actions and
proceedings as would be permitted under the law of the host
State as if the branch were a bank chartered by that host
State.
``(4) Cooperative agreement.--
``(A) In general.--The State bank supervisors from 2 or
more States may enter into cooperative agreements to
facilitate State regulatory supervision of State banks,
including cooperative agreements relating to the coordination
of examinations and joint participation in examinations.
``(B) Definition.--For purposes of this subsection, the
term `cooperative agreement' means a written agreement that
is signed by the home State bank supervisor and the host
State bank supervisor to facilitate State regulatory
supervision of State banks, and includes nationwide or multi-
State cooperative agreements and cooperative agreements
solely between the home State and host State.
``(C) Rule of construction.--Except for State bank
supervisors, no provision of this subsection relating to such
cooperative agreements shall be construed as limiting in any
way the authority of home State and host State law
enforcement officers, regulatory supervisors, or other
officials that have not signed such cooperative agreements to
enforce host State laws that are applicable to a branch of an
out-of-State insured State bank located in the host State
pursuant to section 24(j).
``(5) Federal regulatory authority.--No provision of this
subsection shall be construed as limiting in any way the
authority of any Federal banking agency.
``(6) State taxation authority not affected.--No provision
of this subsection shall be construed as affecting the
authority of any State or political subdivision of any State
to adopt, apply, or administer any tax or method of taxation
to any bank, bank holding company, or foreign bank, or any
affiliate of any bank, bank holding company, or foreign bank,
to the extent that such tax or tax method is otherwise
permissible by or under the Constitution of the United States
or other Federal law.
``(7) Definitions.--For purpose of this section, the
following definitions shall apply:
``(A) Host state, home state, out-of-State bank.--The terms
`host State', `home State', and `out-of-State bank' have the
same meanings as in section 44(g).
``(B) State supervisory fees.--The term `State supervisory
fees' means assessments, examination fees, branch fees,
license fees, and all other fees that are levied or charged
by a State bank supervisor directly upon an insured State
bank or upon branches of an insured State bank.
``(C) Troubled condition.--Solely for purposes of paragraph
(2)(B), an insured State bank has been determined to be in
`troubled condition' if the bank--
``(i) has a composite rating, as determined in its most
recent report of examination, of 4 or 5 under the Uniform
Financial Institutions Ratings System;
``(ii) is subject to a proceeding initiated by the
Corporation for termination or suspension of deposit
insurance; or
``(iii) is subject to a proceeding initiated by the State
bank supervisor of the bank's home State to vacate, revoke,
or terminate the charter of the bank, or to liquidate the
bank, or to appoint a receiver for the bank.
``(D) Final determination.--For purposes of paragraph
(2)(B), the term `final determination' means the transmittal
of a report of examination to the bank or transmittal of
official notice of proceedings to the bank.''.
SEC. 712. DEPUTY DIRECTOR; SUCCESSION AUTHORITY FOR DIRECTOR
OF THE OFFICE OF THRIFT SUPERVISION.
(a) Establishment of Position of Deputy Director.--Section
3(c)(5) of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(5))
is amended to read as follows:
``(5) Deputy director.--
``(A) In general.--The Secretary of the Treasury shall
appoint a Deputy Director, and may appoint not more than 3
additional Deputy Directors of the Office.
``(B) First deputy director.--If the Secretary of the
Treasury appoints more than 1 Deputy Director of the Office,
the Secretary shall designate one such appointee as the First
Deputy Director.
``(C) Duties.--Each Deputy Director appointed under this
paragraph shall take an oath of office and perform such
duties as the Director shall direct.
``(D) Compensation and benefits.--The Director shall fix
the compensation and benefits for each Deputy Director in
accordance with this Act.''.
(b) Service of Deputy Director as Acting Director.--Section
3(c)(3) of the Home Owners' Loan Act (12 U.S.C. 1462a(c)(3))
is amended--
(1) by striking ``VACANCY.--A vacancy in the position of
Director'' and inserting ``VACANCY.--
``(A) In general.--A vacancy in the position of Director'';
and
(2) by adding at the end the following:
``(B) Acting director.--
``(i) In general.--In the event of a vacancy in the
position of Director or during the absence or disability of
the Director, the Deputy Director shall serve as Acting
Director.
``(ii) Succession in case of 2 or more deputy directors.--
If there are 2 or more Deputy Directors serving at the time a
vacancy in the position of Director occurs or the absence or
disability of the Director commences, the First Deputy
Director shall serve as Acting Director under clause (i)
followed by such other Deputy Directors under any order of
succession the Director may establish.
``(iii) Authority of acting director.--Any Deputy Director,
while serving as Acting Director under this subparagraph,
shall be vested with all authority, duties, and privileges of
the Director under this Act and any other provision of
Federal law.''.
SEC. 713. OFFICE OF THRIFT SUPERVISION REPRESENTATION ON
BASEL COMMITTEE ON BANKING SUPERVISION.
(a) In General.--Section 912 of the International Lending
Supervision Act of 1983 (12 U.S.C. 3911) is amended--
(1) in the section heading, by inserting at the end the
following: ``AND THE OFFICE OF THRIFT SUPERVISION'';
(2) by striking ``As one of the three'' and inserting the
following:
``(a) In General.--As one of the 4''; and
(3) by adding at the end the following:
``(b) As one of the 4 Federal bank regulatory and
supervisory agencies, the Office of Thrift Supervision shall
be given equal representation with the Board of Governors of
the Federal Reserve System, the Office of the Comptroller of
the Currency, and the Federal Deposit Insurance Corporation
on the Committee on Banking Regulations and Supervisory
Practices of the Group of Ten Countries and Switzerland.''.
(b) Conforming Amendments.--Section 910(a) of the
International Lending Supervision Act of 1983 (12 U.S.C.
3909(a)) is amended--
(1) in paragraph (2), by striking ``insured bank'' and
inserting ``insured depository institution''; and
(2) in paragraph (3), by striking ``an `insured bank', as
such term is used in section 3(h)'' and inserting ``an
`insured depository institution', as such term is defined in
section 3(c)(2)''.
SEC. 714. FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL.
(a) Council Membership.--Section 1004(a) of the Federal
Financial Institutions Examination Council Act of 1978 (12
U.S.C. 3303(a)) is amended--
(1) in paragraph (4), by striking ``Thrift'' and all that
follows through the end of the paragraph and inserting
``Thrift Supervision,'';
(2) in paragraph (5) by striking the period at the end and
inserting ``, and''; and
(3) by adding at the end the following:
``(6) the Chairman of the State Liaison Committee.''.
(b) Chairperson of Liaison Committee.--Section 1007 of the
Federal Financial Institutions Examination Council Act of
1978 (12 U.S.C. 3306) is amended by adding at the end the
following: ``Members of the Liaison Committee shall elect a
chairperson from among the members serving on the
committee.''.
[[Page H7582]]
SEC. 715. TECHNICAL AMENDMENTS RELATING TO INSURED
INSTITUTIONS.
(a) Technical Amendment to the Federal Deposit Insurance
Act.--Section 8(i)(3) of the Federal Deposit Insurance Act
(12 U.S.C. 1818(i)(3)) is amended by inserting ``or order''
after ``notice'' each place that term appears.
(b) Technical Amendment to the Federal Credit Union Act.--
Section 206(k)(3) of the Federal Credit Union Act (12 U.S.C.
1786(k)(3)) is amended by inserting ``or order'' after
``notice'' each place that term appears.
SEC. 716. CLARIFICATION OF ENFORCEMENT AUTHORITY.
(a) Actions on Applications, Notices, and Other Requests;
Clarification That Change in Control Conditions Are
Enforceable.--Section 8 of the Federal Deposit Insurance Act
(12 U.S.C. 1818) is amended--
(1) in subsection (b)(1), in the first sentence, by
striking ``the granting of any application or other request
by the depository institution'' and inserting ``any action on
any application, notice, or other request by the depository
institution or institution-affiliated party,'';
(2) in subsection (e)(1)(A)(i)(III), by striking ``the
grant of any application or other request by such depository
institution'' and inserting ``any action on any application,
notice, or request by such depository institution or
institution-affiliated party''; and
(3) in subsection (i)(2)(A)(iii), by striking ``the grant
of any application or other request by such depository
institution'' and inserting ``any action on any application,
notice, or other request by the depository institution or
institution-affiliated party''.
(b) Clarification That Change in Control Conditions Are
Enforceable.--Section 206 of the Federal Credit Union Act (12
U.S.C. 1786) is amended--
(1) in subsection (b)(1), in the first sentence, by
striking ``the granting of any application or other request
by the credit union'' and inserting ``any action on any
application, notice, or other request by the credit union or
institution-affiliated party,'';
(2) in subsection (g)(1)(A)(i)(III), by striking ``the
grant of any application or other request by such credit
union'' and inserting ``any action on any application,
notice, or request by such credit union or institution-
affiliated party''; and
(3) in subsection (k)(2)(A)(iii), by striking ``the grant
of any application or other request by such credit union''
and inserting ``any action on any application, notice, or
other request by the credit union or institution-affiliated
party''.
SEC. 717. FEDERAL BANKING AGENCY AUTHORITY TO ENFORCE DEPOSIT
INSURANCE CONDITIONS.
Section 8 of the Federal Deposit Insurance Act (12 U.S.C.
1818) is amended--
(1) in subsection (b)(1), in the 1st sentence--
(A) by striking ``in writing by the agency'' and inserting
``in writing by a Federal banking agency''; and
(B) by striking ``the agency may issue and serve'' and
inserting ``the appropriate Federal banking agency for the
depository institution may issue and serve'';
(2) in subsection (e)(1)--
(A) in subparagraph (A)(i)(III), by striking ``in writing
by the appropriate Federal banking agency'' and inserting
``in writing by a Federal banking agency''; and
(B) in the undesignated matter at the end, by striking
``the agency may serve upon such party'' and inserting ``the
appropriate Federal banking agency for the depository
institution may serve upon such party''; and
(3) in subsection (i)(2)(A)(iii), by striking ``in writing
by the appropriate Federal banking agency'' and inserting
``in writing by a Federal banking agency''.
SEC. 718. RECEIVER OR CONSERVATOR CONSENT REQUIREMENT.
(a) Insured Depository Institutions.--Section 11(e)(13) of
the Federal Deposit Insurance Act (12 U.S.C. 1821(e)(13)) is
amended by adding at the end the following:
``(C) Consent requirement.--
``(i) In general.--Except as otherwise provided by this
section or section 15, no person may exercise any right or
power to terminate, accelerate, or declare a default under
any contract to which the depository institution is a party,
or to obtain possession of or exercise control over any
property of the institution or affect any contractual rights
of the institution, without the consent of the conservator or
receiver, as appropriate, during the 45-day period beginning
on the date of the appointment of the conservator, or during
the 90-day period beginning on the date of the appointment of
the receiver, as applicable.
``(ii) Certain exceptions.--No provision of this
subparagraph shall apply to a director or officer liability
insurance contract or a depository institution bond, to the
rights of parties to certain qualified financial contracts
pursuant to paragraph (8), or to the rights of parties to
netting contracts pursuant to subtitle A of title IV of the
Federal Deposit Insurance Corporation Improvement Act of 1991
(12 U.S.C. 4401 et seq.), or shall be construed as permitting
the conservator or receiver to fail to comply with otherwise
enforceable provisions of such contract.
``(iii) Rule of construction.--Nothing in this subparagraph
shall be construed to limit or otherwise affect the
applicability of title 11, United States Code.''.
(b) Insured Credit Unions.--Section 207(c)(12) of the
Federal Credit Union Act (12 U.S.C. 1787(c)(12)) is amended
by adding the following:
``(C) Consent requirement.--
``(i) In general.--Except as otherwise provided by this
section, no person may exercise any right or power to
terminate, accelerate, or declare a default under any
contract to which the credit union is a party, or to obtain
possession of or exercise control over any property of the
credit union or affect any contractual rights of the credit
union, without the consent of the conservator or liquidating
agent, as appropriate, during the 45-day period beginning on
the date of the appointment of the conservator, or during the
90-day period beginning on the date of the appointment of the
liquidating agent, as applicable.
``(ii) Certain exceptions.--No provision of this
subparagraph shall apply to a director or officer liability
insurance contract or a credit union bond, or to the rights
of parties to certain qualified financial contracts pursuant
to paragraph (8), or shall be construed as permitting the
conservator or liquidating agent to fail to comply with
otherwise enforceable provisions of such contract.
``(iii) Rule of construction.--Nothing in this subparagraph
shall be construed to limit or otherwise affect the
applicability of title 11, United States Code.''.
SEC. 719. ACQUISITION OF FICO SCORES.
Section 604(a) of the Fair Credit Reporting Act (15 U.S.C.
1681b(a)) is amended by adding at the end the following:
``(6) To the Federal Deposit Insurance Corporation or the
National Credit Union Administration as part of its
preparation for its appointment or as part of its exercise of
powers, as conservator, receiver, or liquidating agent for an
insured depository institution or insured credit union under
the Federal Deposit Insurance Act or the Federal Credit Union
Act, or other applicable Federal or State law, or in
connection with the resolution or liquidation of a failed or
failing insured depository institution or insured credit
union, as applicable.''.
SEC. 720. ELIMINATION OF CRIMINAL INDICTMENTS AGAINST
RECEIVERSHIPS.
(a) Insured Depository Institutions.--Section 15(b) of the
Federal Deposit Insurance Act (12 U.S.C. 1825(b)) is amended
by inserting immediately after paragraph (3) the following:
``(4) Exemption from criminal prosecution.--The Corporation
shall be exempt from all prosecution by the United States or
any State, county, municipality, or local authority for any
criminal offense arising under Federal, State, county,
municipal, or local law, which was allegedly committed by the
institution, or persons acting on behalf of the institution,
prior to the appointment of the Corporation as receiver.''.
(b) Insured Credit Unions.--Section 207(b)(2) of the
Federal Credit Union Act (12 U.S.C. 1787(b)(2)) is amended by
adding at the end the following:
``(K) Exemption from criminal prosecution.--The
Administration shall be exempt from all prosecution by the
United States or any State, county, municipality, or local
authority for any criminal offense arising under Federal,
State, county, municipal, or local law, which was allegedly
committed by a credit union, or persons acting on behalf of a
credit union, prior to the appointment of the Administration
as liquidating agent.''.
SEC. 721. RESOLUTION OF DEPOSIT INSURANCE DISPUTES.
(a) Insured Depository Institutions.--Section 11(f) of the
Federal Deposit Insurance Act (12 U.S.C. 1821(f)) is amended
by striking paragraphs (3) through (5) and inserting the
following:
``(3) Resolution of disputes.--A determination by the
Corporation regarding any claim for insurance coverage shall
be treated as a final determination for purposes of this
section. In its discretion, the Corporation may promulgate
regulations prescribing procedures for resolving any disputed
claim relating to any insured deposit or any determination of
insurance coverage with respect to any deposit.
``(4) Review of corporation determination.--A final
determination made by the Corporation regarding any claim for
insurance coverage shall be a final agency action reviewable
in accordance with chapter 7 of title 5, United States Code,
by the United States district court for the Federal judicial
district where the principal place of business of the
depository institution is located.
``(5) Statute of limitations.--Any request for review of a
final determination by the Corporation regarding any claim
for insurance coverage shall be filed with the appropriate
United States district court not later than 60 days after the
date on which such determination is issued.''.
(b) Insured Credit Unions.--Section 207(d) of the Federal
Credit Union Act (12 U.S.C. 1787(d)) is amended by striking
paragraphs (3) through (5) and inserting the following:
``(3) Resolution of disputes.--A determination by the
Administration regarding any claim for insurance coverage
shall be treated as a final determination for purposes of
this section. In its discretion, the Board may promulgate
regulations prescribing procedures for resolving any disputed
claim relating to any insured deposit or any determination of
insurance coverage with respect to any deposit. A final
determination made by the Board regarding any claim for
insurance coverage shall be a final agency action reviewable
in accordance with chapter 7 of title 5, United States Code,
by the United States district court for the Federal judicial
district where the principal place of business of the credit
union is located.
[[Page H7583]]
``(4) Statute of limitations.--Any request for review of a
final determination by the Board regarding any claim for
insurance coverage shall be filed with the appropriate United
States district court not later than 60 days after the date
on which such determination is issued.''.
SEC. 722. RECORDKEEPING.
(a) Insured Depository Institutions.--Section 11(d)(15)(D)
of the Federal Deposit Insurance Act (12 U.S.C.
1821(d)(15)(D)) is amended--
(1) by striking ``After the end of the 6-year period'' and
inserting the following:
``(i) In general.--Except as provided in clause (ii), after
the end of the 6-year period''; and
(2) by adding at the end the following:
``(ii) Old records.--Notwithstanding clause (i), the
Corporation may destroy records of an insured depository
institution which are at least 10 years old as of the date on
which the Corporation is appointed as the receiver of such
depository institution in accordance with clause (i) at any
time after such appointment is final, without regard to the
6-year period of limitation contained in clause (i).''.
(b) Insured Credit Unions.--Section 207(b)(15)(D) of the
Federal Credit Union Act (12 U.S.C. 1787(b)(15)(D)) is
amended--
(1) by striking ``After the end of the 6-year period'' and
inserting the following:
``(i) In general.--Except as provided in clause (ii), after
the end of the 6-year period''; and
(2) by adding at the end the following:
``(ii) Old records.--Notwithstanding clause (i) the Board
may destroy records of an insured credit union which are at
least 10 years old as of the date on which the Board is
appointed as liquidating agent of such credit union in
accordance with clause (i) at any time after such appointment
is final, without regard to the 6-year period of limitation
contained in clause (i).''.
SEC. 723. PRESERVATION OF RECORDS.
(a) Insured Depository Institutions.--Section 10(f) of the
Federal Deposit Insurance Act (12 U.S.C. 1820(f)) is amended
to read as follows:
``(f) Preservation of Agency Records.--
``(1) In general.--A Federal banking agency may cause any
and all records, papers, or documents kept by the agency or
in the possession or custody of the agency to be--
``(A) photographed or microphotographed or otherwise
reproduced upon film; or
``(B) preserved in any electronic medium or format which is
capable of--
``(i) being read or scanned by computer; and
``(ii) being reproduced from such electronic medium or
format by printing any other form of reproduction of
electronically stored data.
``(2) Treatment as original records.--Any photographs,
microphotographs, or photographic film or copies thereof
described in paragraph (1)(A) or reproduction of
electronically stored data described in paragraph (1)(B)
shall be deemed to be an original record for all purposes,
including introduction in evidence in all State and Federal
courts or administrative agencies, and shall be admissible to
prove any act, transaction, occurrence, or event therein
recorded.
``(3) Authority of the federal banking agencies.--Any
photographs, microphotographs, or photographic film or copies
thereof described in paragraph (1)(A) or reproduction of
electronically stored data described in paragraph (1)(B)
shall be preserved in such manner as the Federal banking
agency shall prescribe, and the original records, papers, or
documents may be destroyed or otherwise disposed of as the
Federal banking agency may direct.''.
(b) Insured Credit Unions.--Section 206(s) of the Federal
Credit Union Act (12 U.S.C. 1786(s)) is amended by adding at
the end the following:
``(9) Preservation of records.--
``(A) In general.--The Board may cause any and all records,
papers, or documents kept by the Administration or in the
possession or custody of the Administration to be--
``(i) photographed or microphotographed or otherwise
reproduced upon film; or
``(ii) preserved in any electronic medium or format which
is capable of--
``(I) being read or scanned by computer; and
``(II) being reproduced from such electronic medium or
format by printing or any other form of reproduction of
electronically stored data.
``(B) Treatment as original records.--Any photographs,
micrographs, or photographic film or copies thereof described
in subparagraph (A)(i) or reproduction of electronically
stored data described in subparagraph (A)(ii) shall be deemed
to be an original record for all purposes, including
introduction in evidence in all State and Federal courts or
administrative agencies, and shall be admissible to prove any
act, transaction, occurrence, or event therein recorded.
``(C) Authority of the administration.--Any photographs,
microphotographs, or photographic film or copies thereof
described in subparagraph (A)(i) or reproduction of
electronically stored data described in subparagraph (A)(ii)
shall be preserved in such manner as the Administration shall
prescribe, and the original records, papers, or documents may
be destroyed or otherwise disposed of as the Administration
may direct.''.
SEC. 724. TECHNICAL AMENDMENTS TO INFORMATION SHARING
PROVISION IN THE FEDERAL DEPOSIT INSURANCE ACT.
Section 11(t) of the Federal Deposit Insurance Act (12
U.S.C. 1821(t)) is amended--
(1) in paragraph (1), by inserting ``, in any capacity,''
after ``A covered agency''; and
(2) in paragraph (2)(A)--
(A) in clause (i), by striking ``appropriate'';
(B) by striking clause (ii); and
(C) by redesignating clauses (iii) through (vi) as clauses
(ii) through (v), respectively.
SEC. 725. TECHNICAL AND CONFORMING AMENDMENTS RELATING TO
BANKS OPERATING UNDER THE CODE OF LAW FOR THE
DISTRICT OF COLUMBIA.
(a) Federal Reserve Act.--The Federal Reserve Act (12
U.S.C. 221 et seq.) is amended--
(1) in the second undesignated paragraph of the first
section (12 U.S.C. 221), by adding at the end the following:
``For purposes of this Act, a State bank includes any bank
which is operating under the Code of Law for the District of
Columbia.''; and
(2) in the first sentence of the first undesignated
paragraph of section 9 (12 U.S.C. 321), by striking
``incorporated by special law of any State, or'' and
inserting ``incorporated by special law of any State,
operating under the Code of Law for the District of Columbia,
or''.
(b) Bank Conservation Act.--Section 202 of the Bank
Conservation Act (12 U.S.C. 202) is amended--
(1) by striking ``means (1) any national'' and inserting
``means any national''; and
(2) by striking ``, and (2) any bank or trust company
located in the District of Columbia and operating under the
supervision of the Comptroller of the Currency''.
(c) Depository Institution Deregulation and Monetary
Control Act of 1980.--Part C of title VII of the Depository
Institution Deregulation and Monetary Control Act of 1980 (12
U.S.C. 216 et seq.) is amended--
(1) in paragraph (1) of section 731 (12 U.S.C. 216(1)), by
striking ``and closed banks in the District of Columbia'';
and
(2) in paragraph (2) of section 732 (12 U.S.C. 216a(2)), by
striking ``or closed banks in the District of Columbia''.
(d) Federal Deposit Insurance Act.--Section 3(a)(2)(B) of
the Federal Deposit Insurance Act (12 U.S.C. 1813(a)(2)(B))
is amended by striking ``(except a national bank)''.
(e) National Bank Consolidation and Merger Act.--Section
7(1) of the National Bank Consolidation and Merger Act (12
U.S.C. 215b(1)) is amended by striking ``(except a national
banking association located in the District of Columbia)''.
(f) Act of August 17, 1950.--Section 1(a) of the Act
entitled ``An Act to provide for the conversion of national
banking associations into and their merger or consolidation
with State banks, and for other purposes'' and approved
August 17, 1950 (12 U.S.C. 214(a)) is amended by striking
``(except a national banking association)''.
(g) Federal Trade Commission Act.--Section 18(f)(2) of the
Federal Trade Commission Act (15 U.S.C. 57a(f)(2)) is
amended--
(1) in subparagraph (A), by striking ``, banks operating
under the code of law for the District of Columbia,''; and
(2) in subparagraph (B), by striking ``and banks operating
under the code of law for the District of Columbia''.
SEC. 726. TECHNICAL CORRECTIONS TO THE FEDERAL CREDIT UNION
ACT.
The Federal Credit Union Act (12 U.S.C. 1751 et seq.) is
amended as follows:
(1) In section 101(3), strike ``and'' after the semicolon.
(2) In section 101(5), strike the terms ``account account''
and ``account accounts'' each place any such term appears and
insert ``account''.
(3) In section 107(5)(E), strike the period at the end and
insert a semicolon.
(4) In each of paragraphs (6) and (7) of section 107,
strike the period at the end and insert a semicolon.
(5) In section 107(7)(D), strike ``the Federal Savings and
Loan Insurance Corporation or''.
(6) In section 107(7)(E), strike ``the Federal Home Loan
Bank Board,'' and insert ``the Federal Housing Finance
Board,''.
(7) In section 107(9), strike ``subchapter III'' and insert
``title III''.
(8) In section 107(13), strike ``and'' after the semicolon
at the end.
(9) In section 109(c)(2)(A)(i), strike ``(12 U.S.C.
4703(16))''.
(10) In section 120(h), strike ``the Act approved July 30,
1947 (6 U.S.C., secs. 6-13),'' and insert ``chapter 93 of
title 31, United States Code,''.
(11) In section 201(b)(5), strike ``section 116 of''.
(12) In section 202(h)(3), strike ``section 207(c)(1)'' and
insert ``section 207(k)(1)''.
(13) In section 204(b), strike ``such others powers'' and
insert ``such other powers''.
(14) In section 206(e)(3)(D), strike ``and'' after the
semicolon at the end.
(15) In section 206(f)(1), strike ``subsection (e)(3)(B)''
and insert ``subsection (e)(3)''.
(16) In section 206(g)(7)(D), strike ``and subsection
(1)''.
(17) In section 206(t)(2)(B), insert ``regulations'' after
``as defined in''.
(18) In section 206(t)(2)(C), strike ``material affect''
and insert ``material effect''.
(19) In section 206(t)(4)(A)(ii)(II), strike ``or'' after
the semicolon at the end.
(20) In section 206A(a)(2)(A), strike ``regulator agency''
and insert ``regulatory agency''.
(21) In section 207(c)(5)(B)(i)(I), insert ``and'' after
the semicolon at the end.
[[Page H7584]]
(22) In the heading for subparagraph (A) of section
207(d)(3), strike ``to'' and insert ``with''.
(23) In section 207(f)(3)(A), strike ``category or
claimants'' and insert ``category of claimants''.
(24) In section 209(a)(8), strike the period at the end and
insert a semicolon.
(25) In section 216(n), insert ``any action'' before ``that
is required''.
(26) In section 304(b)(3), strike ``the affairs or such
credit union'' and insert ``the affairs of such credit
union''.
(27) In section 310, strike ``section 102(e)'' and insert
``section 102(d)''.
SEC. 727. REPEAL OF OBSOLETE PROVISIONS OF THE BANK HOLDING
COMPANY ACT OF 1956.
(a) In General.--Section 2 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1841) is amended--
(1) in subsection (c)(2), by striking subparagraphs (I) and
(J); and
(2) by striking subsection (m) and inserting the following:
``(m) [Repealed]''.
(b) Technical and Conforming Amendments.--Paragraphs (1)
and (2) of section 4(h) of the Bank Holding Company Act of
1956 (12 U.S.C. 1843(h)) are each amended by striking ``(G),
(H), (I), or (J) of section 2(c)(2)'' and inserting ``(G), or
(H) of section 2(c)(2)''.
SEC. 728. DEVELOPMENT OF MODEL PRIVACY FORM.
Section 503 of the Gramm-Leach-Bliley Act (15 U.S.C. 6803),
as amended by section 609, is amended by adding at the end
the following:
``(e) Model Forms.--
``(1) In general.--The agencies referred to in section
504(a)(1) shall jointly develop a model form which may be
used, at the option of the financial institution, for the
provision of disclosures under this section.
``(2) Format.--A model form developed under paragraph (1)
shall--
``(A) be comprehensible to consumers, with a clear format
and design;
``(B) provide for clear and conspicuous disclosures;
``(C) enable consumers easily to identify the sharing
practices of a financial institution and to compare privacy
practices among financial institutions; and
``(D) be succinct, and use an easily readable type font.
``(3) Timing.--A model form required to be developed by
this subsection shall be issued in proposed form for public
comment not later than 180 days after the date of enactment
of this subsection.
``(4) Safe harbor.--Any financial institution that elects
to provide the model form developed by the agencies under
this subsection shall be deemed to be in compliance with the
disclosures required under this section.''.
TITLE VIII--FAIR DEBT COLLECTION PRACTICES ACT AMENDMENTS
SEC. 801. EXCEPTION FOR CERTAIN BAD CHECK ENFORCEMENT
PROGRAMS.
(a) In General.--The Fair Debt Collection Practices Act (15
U.S.C. 1692 et seq.) is amended--
(1) by redesignating section 818 as section 819; and
(2) by inserting after section 817 the following:
``Sec. 818. Exception for certain bad check enforcement
programs operated by private entities
``(a) In General.--
``(1) Treatment of certain private entities.--Subject to
paragraph (2), a private entity shall be excluded from the
definition of a debt collector, pursuant to the exception
provided in section 803(6), with respect to the operation by
the entity of a program described in paragraph (2)(A) under a
contract described in paragraph (2)(B).
``(2) Conditions of applicability.--Paragraph (1) shall
apply if--
``(A) a State or district attorney establishes, within the
jurisdiction of such State or district attorney and with
respect to alleged bad check violations that do not involve a
check described in subsection (b), a pretrial diversion
program for alleged bad check offenders who agree to
participate voluntarily in such program to avoid criminal
prosecution;
``(B) a private entity, that is subject to an
administrative support services contract with a State or
district attorney and operates under the direction,
supervision, and control of such State or district attorney,
operates the pretrial diversion program described in
subparagraph (A); and
``(C) in the course of performing duties delegated to it by
a State or district attorney under the contract, the private
entity referred to in subparagraph (B)--
``(i) complies with the penal laws of the State;
``(ii) conforms with the terms of the contract and
directives of the State or district attorney;
``(iii) does not exercise independent prosecutorial
discretion;
``(iv) contacts any alleged offender referred to in
subparagraph (A) for purposes of participating in a program
referred to in such paragraph--
``(I) only as a result of any determination by the State or
district attorney that probable cause of a bad check
violation under State penal law exists, and that contact with
the alleged offender for purposes of participation in the
program is appropriate; and
``(II) the alleged offender has failed to pay the bad check
after demand for payment, pursuant to State law, is made for
payment of the check amount;
``(v) includes as part of an initial written communication
with an alleged offender a clear and conspicuous statement
that--
``(I) the alleged offender may dispute the validity of any
alleged bad check violation;
``(II) where the alleged offender knows, or has reasonable
cause to believe, that the alleged bad check violation is the
result of theft or forgery of the check, identity theft, or
other fraud that is not the result of the conduct of the
alleged offender, the alleged offender may file a crime
report with the appropriate law enforcement agency; and
``(III) if the alleged offender notifies the private entity
or the district attorney in writing, not later than 30 days
after being contacted for the first time pursuant to clause
(iv), that there is a dispute pursuant to this subsection,
before further restitution efforts are pursued, the district
attorney or an employee of the district attorney authorized
to make such a determination makes a determination that there
is probable cause to believe that a crime has been committed;
and
``(vi) charges only fees in connection with services under
the contract that have been authorized by the contract with
the State or district attorney.
``(b) Certain Checks Excluded.--A check is described in
this subsection if the check involves, or is subsequently
found to involve--
``(1) a postdated check presented in connection with a
payday loan, or other similar transaction, where the payee of
the check knew that the issuer had insufficient funds at the
time the check was made, drawn, or delivered;
``(2) a stop payment order where the issuer acted in good
faith and with reasonable cause in stopping payment on the
check;
``(3) a check dishonored because of an adjustment to the
issuer's account by the financial institution holding such
account without providing notice to the person at the time
the check was made, drawn, or delivered;
``(4) a check for partial payment of a debt where the payee
had previously accepted partial payment for such debt;
``(5) a check issued by a person who was not competent, or
was not of legal age, to enter into a legal contractual
obligation at the time the check was made, drawn, or
delivered; or
``(6) a check issued to pay an obligation arising from a
transaction that was illegal in the jurisdiction of the State
or district attorney at the time the check was made, drawn,
or delivered.
``(c) Definitions.--For purposes of this section, the
following definitions shall apply:
``(1) State or district attorney.--The term `State or
district attorney' means the chief elected or appointed
prosecuting attorney in a district, county (as defined in
section 2 of title 1, United States Code), municipality, or
comparable jurisdiction, including State attorneys general
who act as chief elected or appointed prosecuting attorneys
in a district, county (as so defined), municipality or
comparable jurisdiction, who may be referred to by a variety
of titles such as district attorneys, prosecuting attorneys,
commonwealth's attorneys, solicitors, county attorneys, and
state's attorneys, and who are responsible for the
prosecution of State crimes and violations of jurisdiction-
specific local ordinances.
``(2) Check.--The term `check' has the same meaning as in
section 3(6) of the Check Clearing for the 21st Century Act.
``(3) Bad check violation.--The term `bad check violation'
means a violation of the applicable State criminal law
relating to the writing of dishonored checks.''.
(b) Clerical Amendment.--The table of sections for the Fair
Debt Collection Practices Act (15 U.S.C. 1692 et seq.) is
amended--
(1) by redesignating the item relating to section 818 as
section 819; and
(2) by inserting after the item relating to section 817 the
following new item:
``818. Exception for certain bad check enforcement programs operated by
private entities.''.
SEC. 802. OTHER AMENDMENTS.
(a) Legal Pleadings.--Section 809 of the Fair Debt
Collection Practices Act (15 U.S.C. 1692g) is amended by
adding at the end the following new subsection:
``(d) Legal Pleadings.--A communication in the form of a
formal pleading in a civil action shall not be treated as an
initial communication for purposes of subsection (a).''.
(b) Notice Provisions.--Section 809 of the Fair Debt
Collection Practices Act (15 U.S.C. 1692g) is amended by
adding after subsection (d) (as added by subsection (a) of
this section) the following new subsection:
``(e) Notice Provisions.--The sending or delivery of any
form or notice which does not relate to the collection of a
debt and is expressly required by the Internal Revenue Code
of 1986, title V of Gramm-Leach-Bliley Act, or any provision
of Federal or State law relating to notice of data security
breach or privacy, or any regulation prescribed under any
such provision of law, shall not be treated as an initial
communication in connection with debt collection for purposes
of this section.''.
(c) Establishment of Right to Collect Within the First 30
Days.--Section 809(b) of the Fair Debt Collection Practices
Act (15 U.S.C. 1692g(b)) is amended by adding at the end the
following new sentences: ``Collection activities and
communications that do not otherwise violate this title may
continue during the 30-day
[[Page H7585]]
period referred to in subsection (a) unless the consumer has
notified the debt collector in writing that the debt, or any
portion of the debt, is disputed or that the consumer
requests the name and address of the original creditor. Any
collection activities and communication during the 30-day
period may not overshadow or be inconsistent with the
disclosure of the consumer's right to dispute the debt or
request the name and address of the original creditor.''.
TITLE IX--CASH MANAGEMENT MODERNIZATION
SEC. 901. COLLATERAL MODERNIZATION.
(a) In General.--Section 9301(2) of title 31, United States
Code, is amended to read as follows:
``(2) `eligible obligation' means any security designated
as acceptable in lieu of a surety bond by the Secretary of
the Treasury.''.
(b) Use of Eligible Obligations Instead of Surety Bonds.--
Section 9303(a)(2) of title 31, United States Code, is
amended to read as follows:
``(2) as determined by the Secretary of the Treasury, have
a market value that is equal to or greater than the amount of
the required surety bond; and''.
(c) Technical Amendments.--Section 9303 of title 31, United
States Code, is amended--
(1) in the section heading, by striking ``Government
obligations'' and inserting ``eligible obligations'';
(2) in subsection (f), by striking ``Government
obligations'' and inserting ``eligible obligations'';
(3) by striking ``a Government obligation'' each place that
term appears and inserting ``an eligible obligation''; and
(4) by striking ``Government obligation'' each place that
term appears and inserting ``eligible obligation''.
TITLE X--STUDIES AND REPORTS
SEC. 1001. STUDY AND REPORT BY THE COMPTROLLER GENERAL ON THE
CURRENCY TRANSACTION REPORT FILING SYSTEM.
(a) In General.--The Comptroller General of the United
States shall conduct a study on the volume of currency
transaction reports filed with the Secretary of the Treasury
under section 5313(a) of title 31, United States Code.
(b) Purpose.--The purpose of the study required under
subsection (a) shall be--
(1) to evaluate, on the basis of actual filing data,
patterns of currency transaction reports filed by depository
institutions of all sizes and locations; and
(2) to identify whether and the extent to which the filing
rules for currency transaction reports described in section
5313(a) of title 31, United States Code--
(A) are burdensome; and
(B) can or should be modified to reduce such burdens
without harming the usefulness of such filing rules to
Federal, State, and local anti-terrorism, law enforcement,
and regulatory operations.
(c) Period Covered.--The study required under subsection
(a) shall cover the period beginning at least 3 calendar
years prior to the date of enactment of this section.
(d) Content.--The study required under subsection (a) shall
include a detailed evaluation of--
(1) the extent to which depository institutions are
availing themselves of the exemption system for the filing of
currency transaction reports set forth in section 103.22(d)
of title 31, Code of Federal Regulations, as in effect during
the study period (in this section referred to as the
``exemption system''), including specifically, for the study
period--
(A) the number of currency transaction reports filed (out
of the total annual numbers) involving companies that are
listed on the New York Stock Exchange or the NASDAQ National
Market;
(B) the number of currency transaction reports filed by the
100 largest depository institutions in the United States by
asset size, and thereafter in tiers of 100, by asset size;
(C) the number of currency transaction reports filed by the
200 smallest depository institutions in the United States,
including the number of such currency transaction reports
involving companies listed on the New York Stock Exchange or
the NASDAQ National Market; and
(D) the number of currency transaction reports that would
have been filed during the filing period if the exemption
system had been used by all depository institutions in the
United States;
(2) what types of depository institutions are using the
exemption system, and the extent to which such exemption
system is used;
(3) difficulties that limit the willingness or ability of
depository institutions to reduce their currency transaction
reports reporting burden by making use of the exemption
system, including considerations of cost, especially in the
case of small depository institutions;
(4) the extent to which bank examination difficulties have
limited the use of the exemption system, especially with
respect to--
(A) the exemption of privately-held companies permitted
under such exemption system; and
(B) whether, on a sample basis, the reaction of bank
examiners to implementation of such exemption system is
justified or inhibits use of such exemption system without an
offsetting compliance benefit;
(5) ways to improve the use of the exemption system by
depository institutions, including making such exemption
system mandatory in order to reduce the volume of currency
transaction reports unnecessarily filed; and
(6) the usefulness of currency transaction reports filed to
law enforcement agencies, taking into account--
(A) advances in information technology;
(B) the impact, including possible loss of investigative
data, that various changes in the exemption system would have
on the usefulness of such currency transaction reports; and
(C) changes that could be made to the exemption system
without affecting the usefulness of currency transaction
reports.
(e) Assistance.--The Secretary of the Treasury shall
provide such information processing and other assistance,
including from the Commissioner of the Internal Revenue
Service and the Director of the Financial Crimes Enforcement
Network, to the Comptroller General in analyzing currency
transaction report filings for the study period described in
subsection (c), as is necessary to provide the information
required by subsection (a).
(f) Views.--The study required under subsection (a) shall,
if appropriate, include a discussion of the views of a
representative sample of Federal, State, and local law
enforcement and regulatory officials and officials of
depository institutions of all sizes.
(g) Recommendations.--The study required under subsection
(a) shall, if appropriate, include recommendations for
changes to the exemption system that would reflect a
reduction in unnecessary cost to depository institutions,
assuming reasonably full implementation of such exemption
system, without reducing the usefulness of the currency
transaction report filing system to anti-terrorism, law
enforcement, and regulatory operations.
(h) Report.--Not later than 15 months after the date of
enactment of this section, the Comptroller General shall
submit a report on the study required under subsection (a) to
the Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the House
of Representatives.
SEC. 1002. STUDY AND REPORT ON INSTITUTION DIVERSITY AND
CONSOLIDATION.
(a) Study.--The Comptroller General of the United States
shall conduct a study regarding--
(1) the vast diversity in the size and complexity of
institutions in the banking and financial services sector,
including the differences in capital, market share,
geographical limitations, product offerings, and general
activities;
(2) the differences in powers among the depository
institution charters, including--
(A) identification of the historical trends in the
evolution of depository institution charters;
(B) an analysis of the impact of charter differences to the
overall safety and soundness of the banking industry, and the
effectiveness of the applicable depository institution
regulator; and
(C) an analysis of the impact that the availability of
options for depository institution charters on the
development of the banking industry;
(3) the impact that differences of size and overall
complexity among financial institutions makes with respect to
regulatory oversight, efficiency, safety and soundness, and
charter options for financial institutions; and
(4) the aggregate cost and breakdown associated with
regulatory compliance for banks, savings associations, credit
unions, or any other financial institution, including
potential disproportionate impact that the cost of compliance
may pose on smaller institutions, given the percentage of
personnel that the institution must dedicate solely to
compliance.
(b) Considerations.--In conducting the study under
subsection (a), the Comptroller General shall consider the
efficacy and efficiency of the consolidation of financial
regulators, as well as charter simplification and
homogenization.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Comptroller General of the United
States shall submit 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 on the
results of the study required by this section.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Ohio (Mr. Oxley) and the gentleman from Massachusetts (Mr. Frank) each
will control 20 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. OXLEY. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
on this legislation and to insert extraneous material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. OXLEY. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, today the House will consider regulatory relief
legislation for the financial services industry and its regulatory
agencies.
The Financial Services Committee has been working on this legislation
[[Page H7586]]
for 5 years now, and I am pleased to announce that we have reached
agreement with the Senate on this important legislation. The bill
before us today should be taken up by the Senate later this week and on
the President's desk shortly thereafter.
On March 8, 2006, the House began the effort in this Congress by
passing H.R. 3505, the Financial Services Regulatory Relief Act of
2005, by a vote of 415-2. On May 25, 2006, the Senate passed its
version of this legislation, S. 2856, by voice vote.
S. 2856 includes only about one-half of H.R. 3505's provisions and
five sections that were not part of the bill coming from the House. Two
of the five provisions added by the Senate were contained in H.R. 1224,
which passed the House on May 24, 2005, by a 424-1 vote. These
provisions authorize the Fed to pay interest on reserve balances and
giving the Fed greater flexibility to set the ratio of reserve deposits
a depository institution must maintain against transaction accounts.
The other provision added by the Senate in S. 2856, one, allows the
Treasury Department to determine the types of securities that may be
pledged in lieu of security bonds; two, requires the Government
Accountability Office to study and report to Congress on currency
transaction reports filed with the Treasury Department and on the costs
of regulatory compliance.
{time} 1745
And, three, direct the SEC and banking agencies to jointly issue
regulations implementing a section of the Graham-Leach-Bliley Act.
Today, I am recommending that the House accept the Senate version of
this legislation with six amendments that have been agreed to by the
minority in this Chamber and by both sides of the aisle in the Senate.
Two amendments make acceptable changes to sections concerning a
prohibition on employment of convicted individuals in banking
organizations and regarding consumer notices under the Fair Debt
Collection Practices Act.
A third amendment mandates that the SEC and the Fed jointly adopt
rules concerning banks' brokerage activities exempt from SEC oversight
in accordance with the intent of the Graham-Leach-Bliley Act and
deletes the provision in the Senate bill which would have permitted the
Federal banking regulators to seek an expedited judicial review of any
SEC rule making in this area.
The fourth amendment concerns a budget offset related to the payment
of interest on Fed reserve balances.
The fifth increases the amount of unimpaired capital and surplus that
a national bank may invest to promote the public welfare.
Finally, the sixth amendment updates the Federal Deposit Insurance
Act to provide clarity and certainty for depository institutions
lacking Federal deposit insurance as it relates to disclosure and
advertising.
Mr. Speaker, the financial services industry is laboring under an
enormous regulatory burden. While many of the regulations are necessary
to protect consumers and meet other worthy public policy objectives, a
number are clearly burdensome. For this reason, shortly after I assumed
the chairmanship of the committee, I asked the financial regulators and
industry trade groups to give us their best advice on how we could ease
regulatory requirements faced by insurer depositors. The goal was to
free depository institutions from such regulations so they can better
serve their customers and communities.
It was clear then, as it is now, that there also needs to be a
counterbalance to the significant compliance responsibilities placed on
depository institutions by the USA PATRIOT Act, as well as other
Government efforts to counter terrorist financing.
Excessive regulation affects all sectors of the financial services
industry but presents the greatest burden for smaller institutions. For
small banks that continue to serve their historic role as a financial
lifeline for local communities, they must be free to operate in a
regulatory environment that does not unduly constrain them.
The bill contains a broad range of constructive provisions that,
taken as a whole, will allow banks, thrifts and credit unions to devote
more resources to the business of providing financial services and less
to compliance with outdated and unneeded regulations.
I want to congratulate Mr. Hensarling and Mr. Moore, who introduced
the bill last year, and Mr. Bachus, the chairman of the Financial
Institutions Subcommittee, which held numerous hearings on this
important issue.
Mrs. Capito also deserves recognition for her longstanding support of
regulatory relief legislation and actually sponsoring the first
legislation in the last Congress before she moved to the Rules
Committee.
Mr. Speaker, the financial services industry spends a great deal of
money every year complying with outdated and ineffective regulation.
That is money that could instead be loaned for new homes, new cars, and
new projects, fueling job growth in local communities. The sooner we
enact this legislation, the sooner we will provide needed relief to
depository institutions and increased financial opportunities for both
consumers and businesses.
Mr. Speaker, I urge Members to support passage of S. 2856, as
amended.
Mr. Speaker, I reserve the balance of my time.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield myself such time as
I may consume.
Mr. Speaker, I concur with the description given by my colleague from
Ohio.
I am a liberal. I believe that regulation is important if we are
going to have the kind of society that preserves the quality of life.
And, as a believer in regulation, I feel obligated to make sure that we
do not have more regulation than is required and that we should not
have inefficient regulation.
I was very pleased to participate in this bipartisan effort to strip
away unneeded regulation and to reform regulation that has a role to
make sure that it does the job right.
I regret the fact that our colleagues in the Senate did not fully
accept what we offered, but this is a compromise. We want to get
something done. This represents our best effort to send them something
that they will accept, and I am glad to do that.
Mr. Speaker, at this point, I would like to engage the Chairman in a
colloquy or two.
Mr. Chairman, in this bill, the amendment to section 305 seems to
change the community development investment standard for banks. Will
this invalidate or otherwise affect any investments or written
commitments that banks may have made under the law that is now in
effect?
Mr. OXLEY. Mr. Speaker, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentleman from Ohio.
Mr. OXLEY. Mr. Speaker, I appreciate the ranking member's concern. I
want to assure you that this amendment is prospective only and applies
only to new investments made by banks and not to investments or written
commitments already in place.
There is nothing in this amendment that is intended to require banks
that have made investments that comply with the law that was in effect
prior to the enactment of the Financial Services Regulatory Relief Act
of 2006 to undo or divest themselves of these investments or renege on
their written commitments to invest in community development.
Mr. FRANK of Massachusetts. Thank you.
I would point out that here we are working closely with those who are
in the business of making loans for affordable housing. Those are the
ones who have particularly been interested in these kind of changes. We
were glad to do it.
Let me also note, Mr. Chairman, that section 405 of the original
bill, which is now section 702, which leads me to wonder why we ever
mentioned section 405 in the first place, but we are now talking about
section 702. It was included at the request of the regulatory agencies
to clarify that written conditions and applications and written
agreements with institution-affiliated parties are enforceable in order
to protect the safety and soundness of insured depository institutions.
Institution-affiliated parties, a wonderful phrase that trips off the
tongue, institution-affiliated parties can include bank directors,
officers and principal shareholders. Some concerns have been expressed
that the regulatory agencies may use this language inappropriately to
require personal guarantees from bank directors and officers.
[[Page H7587]]
Mr. Chairman, would you clarify what section 702 is intended to do?
Mr. OXLEY. Mr. Speaker, before I do, I want to make clear that we,
and it is pretty obvious that we have not rehearsed this in advance.
Mr. FRANK of Massachusetts. My spontaneity is always rehearsed, Mr.
Chairman.
Mr. OXLEY. Yes. I thank the gentleman for giving me an opportunity to
do so.
In adopting this provision, it is our intention that the regulatory
agencies utilize section 702 with care and precision. Specifically, it
is not intended to be used routinely in corporate applications, notices
or requests to impose financial or other conditions on bank directors
or officers that contain a personal guarantee against loss by the
institution.
For example, it is not intended to be used by the regulatory agencies
to routinely require directors or officers of insured depository
institutions to enter into capital maintenance agreements with the
agencies as a condition of granting a charter or providing deposit
insurance.
It is also not intended to be used by the regulators to routinely
require bank directors or officers to maintain the capital of a
troubled insured depository institution without the directors or
officers agreement.
While we believe it is important that banking agencies are able to
enforce agreements that protect the deposit insurance fund, we also
believe that our national banking policies should encourage the
participation of highly qualified people on the boards of those
institutions.
It would be counterproductive to create an environment where the
threat of personal liability may cause bank directors to resign or keep
well-qualified people from becoming directors in the first place. We
will continue to monitor closely how this provision is applied by the
regulatory agencies to ensure that this does not happen.
Mr. FRANK of Massachusetts. Mr. Speaker, I thank the chairman. He is
the chairman. That is why he has to say more than me.
But I would like to add that it is my understanding that the
regulatory agencies, specifically the Officer in Control of the
Currency, the Federal Deposit Insurance Corporation and the Office of
Thrift Supervision, agree with the interpretation the gentleman has
just given, as does the Senate.
Mr. OXLEY. Yes, that is my understanding as well.
I will insert into the Record a letter dated August 5, 2006, from the
OCC, FDIC, the Fed, and OTS. This letter clarifies the regulators'
intentions for the provision. It also reaffirms their intent to enforce
the language precisely and to not routinely impose financial or other
conditions on bank directors or officers that contain a personal
guarantee against loss by the institution seeking to change a charter
or providing deposit insurance.
I believe this addresses concerns raised by the gentleman from
Massachusetts, and the committee will continue our oversight role in
implementation of this provision.
Office of the Comptroller
of the Currency,
August 7, 2006.
Hon. Mike Crapo,
U.S. Senate,
Washington, DC.
Dear Senator Crapo: This responds to your letter dated July
28, 2006, concerning section 102 of S. 2856, ``The Financial
Services Regulatory Relief Act of 2006.''
We agree completely that banking policies should welcome
the participation of qualified individuals on the boards of
directors of insured depository institutions. We believe that
enactment of this section would be fully consistent with that
goal and that the provision should be implemented in that
spirit, if enacted.
Section 102 is intended to enable the appropriate Federal
banking agency to enforce conditions imposed in writing in
connection with any action on an application, notice or other
request, and written agreements between a Federal banking
agency and a depository institution or an institution-
affiliated party, in accordance with the terms of the
condition or agreement, without the necessity of showing
unjust enrichment or reckless disregard for the law,
applicable regulations, or prior order of the appropriate
Federal banking agency. The language is intended to address
the effect of court decisions in a few cases that questioned
the authority of the banking agencies to enforce such
conditions or agreements without first establishing that the
institution-affiliated party was unjustly enriched or engaged
in reckless disregard for the law or previous agency orders.
It is our intention to utilize this provision with care and
precision. Specifically, we do not intend to use it routinely
in connection with corporate applications, notices or
requests to impose financial or other conditions on bank
directors or officers that contain a personal guarantee
against loss by the institution. In particular, it is not our
intention to use it routinely to require directors or
officers of insured depository institutions to enter into
capital maintenance agreements with the agencies as a
condition of granting a charter or providing deposit
insurance. Nor is it our intention to use it routinely to
require bank directors or officers to maintain the capital of
a troubled insured depository institution without the
director's or officer's agreement.
We hope this addresses your concerns.
Sincerely,
John C. Dugan, Comptroller of the Currency; John M.
Reich, Director, Office of Thrift Supervision; Ben S.
Bernanke, Chairman Board of Governors of the Federal
Reserve System; Sheila C. Bair, Chairman, Federal
Deposit Insurance Corporation.
Mr. FRANK of Massachusetts. Mr. Speaker, I yield back the balance of
my time.
Mr. OXLEY. Mr. Speaker, I yield such time as he may consume to the
gentleman from Texas (Mr. Hensarling).
(Mr. HENSARLING asked and was given permission to revise and extend
his remarks.)
Mr. HENSARLING. Mr. Speaker, I have had many opportunities to speak
extensively in subcommittee, committee, and on this House floor for the
need that we have for regulatory relief for financial institutions, so
I will refrain from doing that today.
Prior to coming to Congress, I was in private business. They teach
you in private business that once you conclude a deal, quit talking.
We seem to have finally concluded a deal with the other body.
However, I am no longer in business, I am in Congress, so I cannot
quite take the whole of the advice. So, instead of quitting talking, I
will at least attempt to be brief.
As the chairman noted, people long before me have worked on this
piece of legislation; and it appears that it will soon culminate in
success.
I certainly want to thank Chairman Oxley for his leadership on the
committee. I want to thank his trusting need to carry this legislation.
I want to thank him for creating a place in Congress where good things
can be done for America on a bipartisan basis; and, unfortunately, Mr.
Speaker, there are not that many places where that is done.
I want to thank Subcommittee Chairman Bachus, the gentleman from
Alabama, for his counsel and help in moving this important piece of
legislation through his subcommittee.
I want to thank the gentleman from Massachusetts, the ranking member,
for his help, his counsel, his reaching out to work on a bipartisan
basis; and, finally, the gentleman from Kansas (Mr. Moore). We worked
together to bring this to the floor.
Mr. Speaker, I also want to thank several members of my own
legislative staff. I am now, unfortunately, on my third legislative
assistant working on this staff. Two of them prefer the rigors of
graduate school to trying to see this particular piece of legislation
to fruition. But I do want to thank Gerry O'Shea, Jamie Notman, and now
Steven Sepp for their invaluable work, as well as the full committee
staff of the Financial Services Committee for all they have done.
Mr. Speaker, it has been noted, not only is this an important piece
of legislation, I do want to celebrate it, but I first want to get out
of the way some of my disappointments. I am disappointed that the other
body did not see the wisdom in BSA relief that was included in our
version of this bill. Hopefully, one day they will see the overlapping
problems we have with the suspicious activity reports, the cash
transaction reports, know your customer. Vital programs, but one that
creates a large burden for our financial institutions.
I am sorry that the other body did not see the wisdom in doing
something about the Graham-Leach-Bliley privacy notifications, where
financial institutions have already notified their customers and do not
change their policy.
Finally, regardless of the merits as a stand-alone issue on the stale
reserves at the Fed, I am also disappointed that the other body has
really created a challenge on the budgetary side in including that
provision in the title.
[[Page H7588]]
Notwithstanding that, I feel a little bit like somebody who helped
bring a child into the world, raised the child, sent them to the big
city, and I am having trouble recognizing them, but, at the end of the
day, Mr. Speaker, I know that that is still my child. And so I
enthusiastically urge the adoption of S. 2856 by this body.
We must from time to time weed the garden. We have an obligation to
make sure that every regulation does not exist in perpetuity. Markets
change, people change, conditions change.
We are one of the richest, freest nations on the face of the planet,
and part of the reason is because of capitalism. You cannot have
capitalism without capital. One of the main responsibilities our
committee has is to ensure that we have a vibrant capital market; and
certainly our credit unions, our community banks that serve our smaller
institutions, inner city, play a very vital role in those capital
markets. They have been burdened.
For example, over the last decade, we have lost almost a third of our
community banks. And when you speak to people at these financial
institutions, there are a number of reasons for the mergers, for the
consolidations, but many of them will tell you that the cost of the
Federal regulatory burden is the number one reason why so many of them
have gone out of business.
{time} 1800
They play such a vital role in our rural communities.
So, Mr. Speaker, it is just incumbent upon us because excessive
regulation, redundant regulation, costly regulation, not only does it
harm these financial institutions, but at the end of the day, it makes
the accessibility and the cost of credit more difficult. It means that
average Americans, maybe they will not have that opportunity to buy
that first home, to make that first down payment; maybe they will not
have the opportunity to buy that second car that is necessary for a
spouse to take a second job; maybe they will not have that opportunity
to send a child to the college they want to send them to; maybe they
will not have that opportunity to start a new small business, to create
jobs and hope and opportunity.
But, Mr. Speaker, we are making great strides today, and because of
that, I know that we will help these American families help realize
their version of the American Dream with a little bit of reason in
weeding this regulatory garden and making sure that they can have
better lives.
So, again, I appreciate the opportunity that the chairman has given
me and certainly his leadership will be severely missed but never
forgotten.
Mr. OXLEY. Mr. Speaker, I am pleased to yield 1 minute to the
gentleman from New Jersey (Mr. Garrett).
Mr. GARRETT of New Jersey. Mr. Speaker, I come to the floor tonight
just to be brief on two points: first to thank the chairman for his
outstanding leadership in the Financial Services Committee over the
years in general and specifically tonight with regard to your work on
regulatory relief; and also to the gentleman from Texas who just spoke
for all of his work to bring this to fruition as we have tonight.
The underlying bill here goes, as has been pointed out, to reduce the
overall burden on financial institutions in general and make some
technical corrections that need to be made. One of the points I want to
touch upon is how it impacts on the Federal Debt Collectors Practices
Act. In the underlying bill, there were two provisions that I had back
in the 108th Congress that I am pleased have been included in the
legislation here today.
The first of these provisions clarifies that a formal pleading in any
civil action will not be considered communications now as defined by
the FDCPA, and the second provision now clarifies the right of a
collector to pursue an account during the first 30 days, so long as the
debt collector's pursuits do not overshadow or otherwise confuse the
consumer debtors.
By doing these two things, what we are doing is removing ambiguities
in the FDCPA, and that increases compliance with the act and improves
protections and overall helps consumers.
Additionally, the debt collection industry will be helped as well. It
does that by improving guidance to them as an industry so that they can
better conform to business practices to the letter of the law,
additionally by curbing waste and time and money in the system, and
finally, by avoiding litigation, all in the end good to the consumer,
good to the industry, good for the American public.
I thank the gentleman from Texas and the chairman as well for getting
it all done.
Mr. OXLEY. Mr. Speaker, I have no further speakers, just to wrap up
and say this has been a concerted effort. It has taken 5 years. While I
guess all of us are frustrated in one way or another with the other
body at times and this bill particularly, at the end of the day we did
a good job and got what we could, and we will save some other things
for a later day.
But Jeb Hensarling and all of the folks who worked on this
legislation, I want to thank them for their cooperation.
Mr. Speaker, I yield back the balance of my time.
The SPEAKER pro tempore (Mr. Poe). The question is on the motion
offered by the gentleman from Ohio (Mr. Oxley) that the House suspend
the rules and pass the Senate bill, S. 2856, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of
those present have voted in the affirmative.
Mr. OXLEY. Mr. Speaker, on that I demand the yeas and nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the
Chair's prior announcement, further proceedings on this question will
be postponed.
____________________