[Congressional Record Volume 164, Number 39 (Tuesday, March 6, 2018)]
[Senate]
[Pages S1390-S1394]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 2069. Ms. WARREN (for herself and Ms. Cantwell) submitted an
amendment intended to be proposed by her to the bill S. 2155, to
promote economic growth, provide tailored regulatory relief, and
enhance consumer protections, and for other purposes; which was ordered
to lie on the table; as follows:
At the end add the following:
TITLE VI--MISCELLANEOUS
SEC. 601. SHORT TITLE.
This title may be cited as the ``21st Century Glass-
Steagall Act of 2017''.
SEC. 602. FINDINGS AND PURPOSE.
(a) Findings.--Congress finds that--
(1) in response to a financial crisis and the ensuing Great
Depression, Congress enacted the Banking Act of 1933, known
as the ``Glass-Steagall Act'', to prohibit commercial banks
from offering investment banking and insurance services;
(2) a series of deregulatory decisions by the Board of
Governors of the Federal Reserve
[[Page S1391]]
System and the Office of the Comptroller of the Currency, in
addition to decisions by Federal courts, permitted commercial
banks to engage in an increasing number of risky financial
activities that had previously been restricted under the
Glass-Steagall Act, and also vastly expanded the meaning of
the ``business of banking'' and ``closely related
activities'' in banking law;
(3) in 1999, Congress enacted the ``Gramm-Leach-Bliley
Act'', which repealed the Glass-Steagall Act separation
between commercial and investment banking and allowed for
complex cross-subsidies and interconnections between
commercial and investment banks;
(4) former Kansas City Federal Reserve President Thomas
Hoenig observed that ``with the elimination of Glass-
Steagall, the largest institutions with the greatest ability
to leverage their balance sheets increased their risk profile
by getting into trading, market making, and hedge fund
activities, adding ever greater complexity to their balance
sheets.'';
(5) the Financial Crisis Inquiry Report issued by the
Financial Crisis Inquiry Commission concluded that, in the
years between the passage of the Gramm-Leach Bliley Act and
the global financial crisis, ``regulation and supervision of
traditional banking had been weakened significantly, allowing
commercial banks and thrifts to operate with fewer
constraints and to engage in a wider range of financial
activities, including activities in the shadow banking
system.''. The Commission also concluded that ``[t]his
deregulation made the financial system especially vulnerable
to the financial crisis and exacerbated its effects.'';
(6) a report by the Financial Stability Oversight Council
pursuant to section 123 of the Dodd-Frank Wall Street Reform
and Consumer Protection Act (12 U.S.C. 5333) states that
increased complexity and diversity of financial activities at
financial institutions may ``shift institutions towards more
risk-taking, increase the level of interconnectedness among
financial firms, and therefore may increase systemic default
risk. These potential costs may be exacerbated in cases where
the market perceives diverse and complex financial
institutions as `too big to fail,' which may lead to
excessive risk taking and concerns about moral hazard.'';
(7) the Senate Permanent Subcommittee on Investigations
report, ``Wall Street and the Financial Crisis: Anatomy of a
Financial Collapse'', states that repeal of the Glass-
Steagall Act ``made it more difficult for regulators to
distinguish between activities intended to benefit customers
versus the financial institution itself. The expanded set of
financial services investment banks were allowed to offer
also contributed to the multiple and significant conflicts of
interest that arose between some investment banks and their
clients during the financial crisis.'';
(8) the Senate Permanent Subcommittee on Investigations
report, ``JPMorgan Chase Whale Trades: A Case History of
Derivatives Risks and Abuses'', describes how traders at
JPMorgan Chase made risky bets using excess deposits that
were partly insured by the Federal Government;
(9) in Europe, the Vickers Independent Commission on
Banking (for the United Kingdom) and the Liikanen Report (for
the Euro area) have both found that there is no inherent
reason to bundle ``retail banking'' with ``investment
banking'' or other forms of relatively high risk securities
trading, and European countries are set on a path of
separating various activities that are currently bundled
together in the business of banking;
(10) private sector actors prefer having access to
underpriced public sector insurance, whether explicit (for
insured deposits) or implicit (for ``too big to fail''
financial institutions), to subsidize dangerous levels of
risk-taking, which, from a broader social perspective, is not
an advantageous arrangement; and
(11) the financial crisis, and the regulatory response to
the crisis, has led to more mergers between financial
institutions, creating greater financial sector consolidation
and increasing the dominance of a few large, complex
financial institutions that are generally considered to be
``too big to fail'', and therefore are perceived by the
markets as having an implicit guarantee from the Federal
Government to bail them out in the event of their failure.
(b) Purposes.--The purposes of this title are--
(1) to reduce risks to the financial system by limiting the
ability of banks to engage in activities other than socially
valuable core banking activities;
(2) to protect taxpayers and reduce moral hazard by
removing explicit and implicit government guarantees for
high-risk activities outside of the core business of banking;
and
(3) to eliminate any conflict of interest that arises from
banks engaging in activities from which their profits are
earned at the expense of their customers or clients.
SEC. 603. DEFINITIONS.
In this title--
(1) the term ``bank holding company'' has the meaning given
the term in section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841); and
(2) the terms ``insurance company'', ``insured depository
institution'', ``securities entity'', and ``swaps entity''
have the meanings given those terms in section 18(s)(6)(D) of
the Federal Deposit Insurance Act, as added by section 604(a)
of this title.
SEC. 604. SAFE AND SOUND BANKING.
(a) Insured Depository Institutions.--Section 18(s) of the
Federal Deposit Insurance Act (12 U.S.C. 1828(s)) is amended
by adding at the end the following:
``(6) Limitations on banking affiliations.--
``(A) Prohibition on affiliations with nondepository
entities.--An insured depository institution may not--
``(i) be or become an affiliate of any insurance company,
securities entity, or swaps entity;
``(ii) be in common ownership or control with any insurance
company, securities entity, or swaps entity; or
``(iii) engage in any activity that would cause the insured
depository institution to qualify as an insurance company,
securities entity, or swaps entity.
``(B) Individuals eligible to serve on boards of depository
institutions.--
``(i) In general.--An individual who is an officer,
director, partner, or employee of any securities entity,
insurance company, or swaps entity may not serve at the same
time as an officer, director, employee, or other institution-
affiliated party of any insured depository institution.
``(ii) Exception.--Clause (i) shall not apply with respect
to service by any individual which is otherwise prohibited
under clause (i), if the appropriate Federal banking agency
determines, by regulation with respect to a limited number of
cases, that service by such an individual as an officer,
director, employee, or other institution-affiliated party of
an insured depository institution would not unduly
influence--
``(I) the investment policies of the depository
institution; or
``(II) the advice that the institution provides to
customers.
``(iii) Termination of service.--Subject to a determination
under clause (i), any individual described in clause (i) who,
as of the date of enactment of the 21st Century Glass-
Steagall Act of 2017, is serving as an officer, director,
employee, or other institution-affiliated party of any
insured depository institution shall terminate such service
as soon as is practicable after such date of enactment, and
in no event, later than the end of the 60-day period
beginning on that date of enactment.
``(C) Termination of existing affiliations and
activities.--
``(i) Orderly termination of existing affiliations and
activities.--Any affiliation, common ownership or control, or
activity of an insured depository institution with any
securities entity, insurance company, swaps entity, or any
other person, as of the date of enactment of the 21st Century
Glass-Steagall Act of 2017, which is prohibited under
subparagraph (A) shall be terminated as soon as is
practicable, and in no event later than the end of the 5-year
period beginning on that date of enactment.
``(ii) Early termination.--The appropriate Federal banking
agency, at any time after opportunity for hearing, may order
termination of an affiliation, common ownership or control,
or activity prohibited by clause (i) before the end of the 5-
year period described in clause (i), if the agency determines
that such action--
``(I) is necessary to prevent undue concentration of
resources, decreased or unfair competition, conflicts of
interest, or unsound banking practices; and
``(II) is in the public interest.
``(iii) Extension.--Subject to a determination under clause
(ii), an appropriate Federal banking agency may extend the 5-
year period described in clause (i) as to any particular
insured depository institution for not more than an
additional 6 months at a time, if--
``(I) the agency certifies that such extension would
promote the public interest and would not pose a significant
threat to the stability of the banking system or financial
markets in the United States; and
``(II) such extension, in the aggregate, does not exceed 1
year for any single insured depository institution.
``(iv) Requirements for entities receiving an extension.--
Upon receipt of an extension under clause (iii), the insured
depository institution shall notify shareholders of the
insured depository institution and the general public that it
has failed to comply with the requirements of clause (i).
``(D) Definitions.--For purposes of this paragraph, the
following definitions shall apply:
``(i) Insurance company.--The term `insurance company' has
the meaning given the term in section 2(q) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841(q)).
``(ii) Insured depository institution.--The term `insured
depository institution'--
``(I) has the meaning given the term in section 3(c)(2);
and
``(II) does not include a savings association controlled by
a savings and loan holding company, as described in section
10(c)(9)(C) of the Home Owners' Loan Act (12 U.S.C.
1467a(c)(9)(C)).
``(iii) Securities entity.--The term `securities entity'--
``(I) includes any entity engaged in--
``(aa) the issue, flotation, underwriting, public sale, or
distribution of stocks, bonds, debentures, notes, or other
securities;
``(bb) market making;
``(cc) activities of a broker or dealer, as those terms are
defined in section 3(a) of the
[[Page S1392]]
Securities Exchange Act of 1934 (15 U.S.C. 78c(a));
``(dd) activities of a futures commission merchant;
``(ee) activities of an investment adviser or investment
company, as those terms are defined in section 202(a) of the
Investment Advisers Act of 1940 (15 U.S.C. 80b-2(a)) and
section 3(a)(1) of the Investment Company Act of 1940 (15
U.S.C. 80a-3(a)(1)), respectively; or
``(ff) hedge fund or private equity investments in the
securities of either privately or publicly held companies;
and
``(II) does not include a bank that, pursuant to its
authorized trust and fiduciary activities--
``(aa) purchases and sells investments for the account of
its customers; or
``(bb) provides financial or investment advice to its
customers.
``(iv) Swaps entity.--The term `swaps entity' means any
swap dealer, security-based swap dealer, major swap
participant, or major security-based swap participant, that
is registered under--
``(I) the Commodity Exchange Act (7 U.S.C. 1 et seq.); or
``(II) the Securities Exchange Act of 1934 (15 U.S.C. 78a
et seq.).''.
(b) Limitation on Banking Activities.--Section 21 of the
Banking Act of 1933 (12 U.S.C. 378) is amended by adding at
the end the following:
``(c) Business of Receiving Deposits.--For purposes of this
section, the term `business of receiving deposits' includes
the establishment and maintenance of any transaction account
(as defined in section 19(b)(1)(C) of the Federal Reserve Act
(12 U.S.C. 461(b)(1)(C))).''.
(c) Permitted Activities of National Banks.--The paragraph
designated as ``Seventh'' of section 24 of the Revised
Statutes (12 U.S.C. 24) is amended to read as follows:
``Seventh. (A) To exercise by its board of directors or
duly authorized officers or agents, subject to law, all such
powers as are necessary to carry on the business of banking.
``(B) As used in this paragraph, the term `business of
banking' shall be limited to the following core banking
services:
``(i) Receiving deposits.--A national banking association
may engage in the business of receiving deposits.
``(ii) Extensions of credit.--A national banking
association may--
``(I) extend credit to individuals, businesses, not for
profit organizations, and other entities;
``(II) discount and negotiate promissory notes, drafts,
bills of exchange, and other evidences of debt; and
``(III) loan money on personal security.
``(iii) Payment systems.--A national banking association
may participate in payment systems, defined as instruments,
banking procedures, and interbank funds transfer systems that
ensure the circulation of money.
``(iv) Coin and bullion.--A national banking association
may buy, sell, and exchange coin and bullion.
``(v) Investments in securities.--
``(I) In general.--A national banking association may
invest in investment securities, defined as marketable
obligations evidencing indebtedness of any person,
copartnership, association, or corporation in the form of
bonds, notes, or debentures (commonly known as `investment
securities'), obligations of the Federal Government, or any
State or subdivision thereof, and includes the definition of
`investment securities', as may be jointly prescribed by
regulation by--
``(aa) the Comptroller of the Currency;
``(bb) the Federal Deposit Insurance Corporation; and
``(cc) the Board of Governors of the Federal Reserve
System.
``(II) Limitations.--The business of dealing in securities
and stock by the association shall be limited to--
``(aa) purchasing and selling such securities and stock
without recourse, solely upon the order, and for the account
of, customers, and in no case for its own account, and the
association shall not underwrite any issue of securities or
stock; and
``(bb) purchasing for its own account investment securities
under such limitations and restrictions as the Comptroller of
the Currency, the Federal Deposit Insurance Corporation, and
the Board of Governors of the Federal Reserve System may
jointly prescribe, by regulation.
``(III) Prohibition on amount of investment.--In no event
shall the total amount of the investment securities of any
single obligor or maker, held by the association for its own
account, exceed 10 percent of its capital stock actually paid
in and unimpaired and 10 percent of its unimpaired surplus
fund, except that such limitation shall not require any
association to dispose of any securities lawfully held by it
on August 23, 1935.
``(C) Prohibition against transactions involving structured
or synthetic products.--A national banking association may
not--
``(i) invest in a structured or synthetic product, a
financial instrument in which a return is calculated based on
the value of, or by reference to the performance of, a
security, commodity, swap, other asset, or an entity, or any
index or basket composed of securities, commodities, swaps,
other assets, or entities, other than customarily determined
interest rates; or
``(ii) otherwise engage in the business of receiving
deposits or extending credit for transactions involving
structured or synthetic products.''.
(d) Permitted Activities of Federal Savings Associations.--
Section 5(c)(1) of the Home Owners' Loan Act (12 U.S.C.
1464(c)(1)) is amended--
(1) by striking subparagraph (Q); and
(2) by redesignating subparagraphs (R) through (U) as
subparagraphs (Q) through (T), respectively.
(e) Closely Related Activities.--Section 4(c) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1843(c)) is amended--
(1) in paragraph (8), by striking ``had been determined''
and all that follows through the end and inserting the
following: ``are so closely related to banking so as to be a
proper incident thereto, as provided under this paragraph or
any rule or regulation issued by the Board under this
paragraph, provided that for purposes of this paragraph,
closely related shall not be considered to include--
``(A) serving as an investment adviser (as defined in
section 2(a) of the Investment Company Act of 1940 (15 U.S.C.
80a-2(a))) to an investment company registered under that
Act, including sponsoring, organizing, and managing a closed-
end investment company;
``(B) agency transactional services for customer
investments, except that this subparagraph may not be
construed as prohibiting purchases and sales of investments
for the account of customers conducted by a bank (or
subsidiary thereof) pursuant to the bank's trust and
fiduciary powers;
``(C) investment transactions as principal, except for
activities specifically allowed by paragraph (14); and
``(D) management consulting and counseling activities;'';
(2) in paragraph (13), by striking ``or'' at the end;
(3) by redesignating paragraph (14) as paragraph (15); and
(4) by inserting after paragraph (13) the following:
``(14) purchasing, as an end user, any swap, to the extent
that--
``(A) the purchase of any such swap occurs
contemporaneously with the underlying hedged item or hedged
transaction;
``(B) there is formal documentation identifying the hedging
relationship with particularity at the inception of the
hedge; and
``(C) the swap is being used to hedge against exposure to--
``(i) changes in the value of an individual recognized
asset or liability or an identified portion thereof that is
attributable to a particular risk;
``(ii) changes in interest rates; or
``(iii) changes in the value of currency; or''.
(f) Prohibited Activities.--Section 4(a) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1843(a)) is amended--
(1) in paragraph (1), by striking ``, or'' and inserting a
semicolon;
(2) in paragraph (2), by striking the ``requirements of
this Act.'' and inserting ``requirements of this Act; or'';
and
(3) by inserting before the undesignated matter following
paragraph (2) the following:
``(3) with the exception of the activities permitted under
subsection (c), engage in the business of a `securities
entity' or a `swaps entity', as those terms are defined in
section 18(s)(6)(D) of the Federal Deposit Insurance Act (12
U.S.C. 1828(s)(6)(D)), including dealing or making markets in
securities, repurchase agreements, exchange traded and over-
the-counter swaps, as defined by the Commodity Futures
Trading Commission and the Securities and Exchange
Commission, or structured or synthetic products, as defined
in the paragraph designated as `Seventh' of section 24 of the
Revised Statutes (12 U.S.C. 24), or any other over-the-
counter securities, swaps, contracts, or any other agreement
that derives its value from, or takes on the form of, such
securities, derivatives, or contracts;
``(4) engage in proprietary trading, as provided by section
13, or any rule or regulation under that section;
``(5) own, sponsor, or invest in a hedge fund, or private
equity fund, or any other fund, as provided by section 13, or
any rule or regulation under that section, or any other fund
that exhibits the characteristics of a fund that takes on
proprietary trading activities or positions;
``(6) hold ineligible securities or derivatives;
``(7) engage in market-making; or
``(8) engage in prime brokerage activities.''.
(g) Anti-Evasion.--
(1) In general.--Any attempt to structure any contract,
investment, instrument, or product in such a manner that the
purpose or effect of such contract, investment, instrument,
or product is to evade or attempt to evade the prohibitions
described in section 18(s)(6) of the Federal Deposit
Insurance Act (12 U.S.C. 1828(s)(6)), section 21(c) of the
Banking Act of 1933 (12 U.S.C. 378(c)), the paragraph
designated as ``Seventh'' of section 24 of the Revised
Statutes (12 U.S.C. 24), section 5(c)(1) of the Home Owners'
Loan Act (12 U.S.C. 1464(c)(1)), or section 4(a) of the Bank
Holding Company Act of 1956 (12 U.S.C. 1843(a)), as added or
amended by this section, shall be considered a violation of
the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.),
the Banking Act of 1933 (Public Law 73-66; 48 Stat. 162),
section 24 of the Revised Statutes (12 U.S.C. 24), the Home
Owners' Loan Act (12 U.S.C. 1461 et seq.), and the Bank
Holding Company Act of 1956 (12 U.S.C. 1841 et seq.),
respectively.
(2) Termination.--
(A) In general.--Notwithstanding any other provision of
law, if a Federal agency
[[Page S1393]]
has reasonable cause to believe that an insured depository
institution, securities entity, swaps entity, insurance
company, bank holding company, or other entity over which
that Federal agency has regulatory authority has made an
investment or engaged in an activity in a manner that
functions as an evasion of the prohibitions described in
paragraph (1) (including through an abuse of any permitted
activity) or otherwise violates such prohibitions, the
Federal agency shall--
(i) order, after due notice and opportunity for hearing,
the entity to terminate the activity and, as relevant,
dispose of the investment;
(ii) order, after the procedures described in clause (i),
the entity to pay a penalty equal to 10 percent of the
entity's net profits, averaged over the previous 3 years,
into the Treasury of the United States; and
(iii) initiate proceedings described in section 8(e) of the
Federal Deposit Insurance Act (12 U.S.C. 1818(e)) for
individuals involved in evading the prohibitions described in
paragraph (1).
(B) Construction.--Nothing in this paragraph shall be
construed to limit the inherent authority of any Federal
agency or State regulatory authority to further restrict any
investments or activities under otherwise applicable
provisions of law.
(3) Reporting requirement.--
(A) In general.--Not later than 1 year after the date of
enactment of this Act, and every year thereafter, each
Federal agency having regulatory authority over any entity
described in paragraph (2)(A) shall submit to the Committee
on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of
Representatives and make available to the public a report,
which shall identify--
(i) the number and character of any activities that took
place in the preceding year that function as an evasion of
the prohibitions described in paragraph (1);
(ii) the names of the particular entities engaged in those
activities; and
(iii) the actions of the Federal agency taken under
paragraph (2).
(h) Attestation.--Section 4 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843), as amended by section 604(a)(1) of
this title, is amended by adding at the end the following:
``(k) Attestation.--Executives of any bank holding company
or its affiliate shall attest in writing, under penalty of
perjury, that the bank holding company or affiliate is not
engaged in any activity that is prohibited under subsection
(a), except to the extent that such activity is permitted
under subsection (c).''.
SEC. 605. REPEAL OF GRAMM-LEACH-BLILEY ACT PROVISIONS.
(a) Termination of Financial Holding Company Designation.--
(1) In general.--Section 4 of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843) is amended by striking subsections
(k), (l), (m), (n), and (o).
(2) Transition.--
(A) Orderly termination of existing affiliation.--In the
case of a bank holding company which, pursuant to the
amendments made by paragraph (1), is no longer authorized to
control or be affiliated with any entity that was permissible
for a financial holding company on the day before the date of
enactment of this Act, any affiliation, ownership or control,
or activity by the bank holding company that is not permitted
for a bank holding company shall be terminated as soon as is
practicable, and in no event later than the end of the 5-year
period beginning on the date of enactment of this Act.
(B) Early termination.--The Board of Governors of the
Federal Reserve System (in this section referred to as the
``Board''), after opportunity for hearing, at any time, may
terminate an affiliation prohibited by subparagraph (A)
before the end of the 5-year period described in subparagraph
(A) if the Board determines that such action--
(i) is necessary to prevent undue concentration of
resources, decreased or unfair competition, conflicts of
interest, or unsound banking practices; and
(ii) is in the public interest.
(C) Extension.--Subject to a determination under
subparagraph (B), the Board may extend the 5-year period
described in subparagraph (A), as to any particular bank
holding company, for not more than an additional 6 months at
a time, if--
(i) the Board certifies that such extension would promote
the public interest and would not pose a significant risk to
the stability of the banking system or financial markets of
the United States; and
(ii) such extension, in the aggregate, does not exceed 1
year for any single bank holding company.
(D) Requirements for entities receiving an extension.--Upon
receipt of an extension under subparagraph (C), a bank
holding company shall notify the shareholders of the bank
holding company and the general public that the bank holding
company has failed to comply with the requirements of
subparagraph (A).
(b) Financial Subsidiaries of National Banks Disallowed.--
(1) In general.--Section 5136A of the Revised Statutes (12
U.S.C. 24a) is repealed.
(2) Transition.--
(A) Orderly termination of existing affiliation.--In the
case of a national bank which, pursuant to the amendment made
by paragraph (1), is no longer authorized to control or be
affiliated with a financial subsidiary as of the date of
enactment of this Act, such affiliation, ownership or
control, or activity shall be terminated as soon as is
practicable, and in no event later than the end of the 5-year
period beginning on the date of enactment of this Act.
(B) Early termination.--The Comptroller of the Currency (in
this section referred to as the ``Comptroller''), after
opportunity for hearing, at any time, may terminate an
affiliation prohibited by subparagraph (A) before the end of
the 5-year period described in subparagraph (A) if the
Comptroller determines, having due regard for the purposes of
this title, that such action--
(i) is necessary to prevent undue concentration of
resources, decreased or unfair competition, conflicts of
interest, or unsound banking practices; and
(ii) is in the public interest.
(C) Extension.--Subject to a determination under
subparagraph (B), the Comptroller may extend the 5-year
period described in subparagraph (A) as to any particular
national bank for not more than an additional 6 months at a
time, if--
(i) the Comptroller certifies that such extension would
promote the public interest and would not pose a significant
risk to the stability of the banking system or financial
markets of the United States; and
(ii) such extension, in the aggregate, does not exceed 1
year for any single national bank.
(D) Requirements for entities receiving an extension.--Upon
receipt of an extension under subparagraph (C), a national
bank shall notify the shareholders of the national bank and
the general public that the national bank has failed to
comply with the requirements described in subparagraph (A).
(3) Clerical amendment.--The table of sections for chapter
one of title LXII of the Revised Statutes is amended by
striking the item relating to section 5136A.
(c) Repeal of Provision Relating to Foreign Banks Filing as
Financial Holding Companies.--Section 8(c) of the
International Banking Act of 1978 (12 U.S.C. 3106(c)) is
amended by striking paragraph (3).
SEC. 606. REPEAL OF BANKRUPTCY PROVISIONS.
Title 11, United States Code, is amended by repealing
sections 555, 559, 560, and 562.
SEC. 607. TECHNICAL AND CONFORMING AMENDMENTS.
(a) Bank Holding Company Act of 1956.--The Bank Holding
Company Act of 1956 (12 U.S.C. 1841 et seq.) is amended--
(1) in section 2 (12 U.S.C. 1841)--
(A) by striking subsection (p); and
(B) by redesignating subsection (q) as subsection (p); and
(2) in section 5 (12 U.S.C. 1844)--
(A) in subsection (a), by striking the last sentence;
(B) in subsection (c), by striking paragraphs (3), (4), and
(5); and
(C) by striking subsection (g).
(b) Bank Holding Company Act Amendments of 1970.--Section
106(a) of the Bank Holding Company Act Amendments of 1970 (12
U.S.C. 1971(a)) is amended by striking the last sentence.
(c) Clayton Act.--Section 7A(c) of the Clayton Act (15
U.S.C. 18a(c)) is amended--
(1) in paragraph (7), by striking ``, except that'' and all
that follows and inserting a semicolon; and
(2) in paragraph (8), by striking ``, except that'' and all
that follows and inserting a semicolon.
(d) Commodity Exchange Act.--The Commodity Exchange Act (7
U.S.C. 1 et seq.) is amended--
(1) in section 1a(21)(G) (7 U.S.C. 1a(21)(G)), by striking
``(as defined in section 2 of the Bank Holding Company Act of
1956)'';
(2) in section 2(c)(2)(B)(i)(II)(dd) (7 U.S.C.
2(c)(2)(B)(i)(II)(dd)), by striking ``(as defined in section
2 of the Bank Holding Company Act of 1956)''; and
(3) in section 2(h)(7)(C)(i)(VIII) (7 U.S.C.
2(h)(7)(C)(i)(VIII)), by striking ``, as defined in section
4(k) of the Bank Holding Company Act of 1956''.
(e) Community Reinvestment Act of 1977.--Section 804 of the
Community Reinvestment Act of 1977 (12 U.S.C. 2903) is
amended--
(1) by striking subsection (c); and
(2) by redesignating subsection (d) as subsection (c).
(f) Dodd-Frank Wall Street Reform and Consumer Protection
Act.--Section 201(a)(11)(B) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5381(a)(11)(B))
is amended by striking ``for purposes of section 4(k) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1843(k))'' each
place that term appears.
(g) Federal Deposit Insurance Act.--The Federal Deposit
Insurance Act (12 U.S.C. 1811 et seq.) is amended--
(1) in section 8(b)(3) (12 U.S.C. 1818(b)(3)), by striking
``section 50'' and inserting ``section 48'';
(2) in section 18(u)(1)(B) (12 U.S.C. 1828(u)(1)(B)), by
striking ``or section 45 of this Act'';
(3) by striking sections 45 and 46 (12 U.S.C. 1831v and
1831w); and
(4) by redesignating sections 47 through 50 as sections 45
through 48, respectively.
(h) Federal Reserve Act.--The Federal Reserve Act (12
U.S.C. 221 et seq.) is amended--
(1) in the 20th undesignated paragraph of section 9 (12
U.S.C. 335), by striking the last sentence; and
(2) in section 23A (12 U.S.C. 371c)--
[[Page S1394]]
(A) in subsection (b)(11), by striking ``subparagraph (H)
or (I) of section 4(k)(4) of the Bank Holding Company Act of
1956 or'';
(B) by striking subsection (e); and
(C) by redesignating subsection (f) as subsection (e).
(i) Financial Stability Act of 2010.--The Financial
Stability Act of 2010 (12 U.S.C. 5301 et seq.) is amended--
(1) in section 113(c)(5) (12 U.S.C. 5323(c)(5)), by
striking ``(as defined in section 4(k) of the Bank Holding
Company Act of 1956)'';
(2) in section 163 (12 U.S.C. 5363)--
(A) by striking subsection (b); and
(B) in subsection (a), by striking ``(a)'' and all that
follows through ``For purposes'' and inserting ``For
purposes'';
(3) in section 167(b) (12 U.S.C. 5367(b)), by striking
``under section 4(k) of the Bank Holding Company Act of
1956'' each place that term appears; and
(4) in section 171(b) (12 U.S.C. 5371(b))--
(A) by striking paragraph (3); and
(B) by redesignating paragraphs (4) through (7) as
paragraphs (3) through (6), respectively.
(j) Gramm-Leach-Bliley Act.--The Gramm-Leach-Bliley Act
(Public Law 106-102; 113 Stat. 1338) is amended--
(1) by striking section 115 (12 U.S.C. 1820a);
(2) in section 307(f) (15 U.S.C. 6715(f)), by amending
paragraph (2) to read as follows:
``(2) Board.--The term `Board' has the meaning given the
term in section 2 of the Bank Holding Company Act of 1956 (12
U.S.C. 1841).'';
(3) in section 505(c) (15 U.S.C. 6805(c))--
(A) by striking ``section 47(g)(2)(B)(iii) of the Federal
Deposit Insurance Act'' and inserting ``section
45(g)(2)(B)(iii) of the Federal Deposit Insurance Act''; and
(B) by striking ``section 47(a)'' and inserting ``section
45(a)''; and
(4) in section 509(3)(A) (15 U.S.C. 6809(3)(A)), by
striking ``as described in section 4(k) of the Bank Holding
Company Act of 1956''.
(k) Home Owners' Loan Act.--Section 10(c) of the Home
Owners' Loan Act (12 U.S.C. 1467a(c)) is amended--
(1) in paragraph (2), by striking subparagraph (H); and
(2) in paragraph (9)(A), by striking ``permitted'' and all
that follows and inserting ``permitted under paragraph (1)(C)
or (2) of this subsection.''.
(l) Internal Revenue Code.--Section 864(f)(4)(C)(ii) of the
Internal Revenue Code of 1986 is amended by striking
``(within the meaning of section 2(p) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841(p))''.
(m) Payment, Clearing, and Settlement Supervision Act of
2010.--Section 803(5)(A) of the Payment, Clearing, and
Settlement Supervision Act of 2010 (12 U.S.C. 5462(5)(A)) is
amended--
(1) in clause (viii), by adding ``and'' at the end;
(2) in clause (ix), by striking ``; and'' and inserting a
period; and
(3) by striking clause (x).
(n) Securities Exchange Act of 1934.--The Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) is amended--
(1) in section 3(a)(4)(B)(vi)(II) (15 U.S.C.
78c(a)(4)(B)(vi)(II)), by striking ``other than'' and all
that follows and inserting ``other than a registered broker
or dealer.''; and
(2) in section 3C(g)(3)(A) (15 U.S.C. 78c-3(g)(3)(A))--
(A) in clause (vi), by adding ``and'' at the end;
(B) in clause (vii), by striking the semicolon and
inserting a period; and
(C) by striking clause (viii).
(o) Title 11.--Title 11, United States Code, is amended--
(1) in section 101--
(A) in paragraph (25)(E), by striking ``, measured in
accordance with section 562'';
(B) in paragraph (47)(A)(v), by striking ``, measured in
accordance with section 562 of this title''; and
(C) in paragraph (53B)(A)(vi), by striking ``, measured in
accordance with section 562'';
(2) in section 103(a), by striking ``555 through 557, and
559 through 562'' and inserting ``556, 557, and 561'';
(3) in section 362(b)--
(A) in paragraph (6), by striking ``555 or'' each place
that term appears;
(B) in paragraph (7), by striking ``(as defined in section
559)'' each place that term appears;
(C) in paragraph (17), by striking ``(as defined in section
560)'' each place that term appears; and
(D) in paragraph (27), by striking ``(as defined in section
555, 556, 559, or 560)'' each place that term appears and
inserting ``(as defined in section 556)'';
(4) in section 502(g)--
(A) by striking ``(1)'' before ``A claim''; and
(B) by striking paragraph (2);
(5) in section 553--
(A) in subsection (a)--
(i) in paragraph (2)(B)(ii), by striking ``555, 556, 559,
560, or 561'' and inserting ``556 or 561''; and
(ii) in paragraph (3)(C), by striking ``555, 556, 559, 560,
or 561'' and inserting ``556 or 561''; and
(B) in subsection (b)(1), by striking ``555, 556, 559, 560,
561'' and inserting ``556, 561'';
(6) in section 561(b)(1), by striking ``555, 556, 559, or
560'' and inserting ``556'';
(7) in section 741(7)(A)(xi), by striking ``, measured in
accordance with section 562'';
(8) in section 761(4)(J), by striking ``, measured in
accordance with section 562''; and
(9) in section 901(a), by striking ``555, 556, 557, 559,
560, 561, 562'' and inserting ``556, 557, 561''.
______