Text: H.R.1505 — 102nd Congress (1991-1992)All Information (Except Text)

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S 713 IS/HR 1505 IH
102d CONGRESS
1st Session
H.R. 1505
To reform the Federal deposit insurance system, to improve the supervision
and regulation of federally insured depository institutions, to reform the
financial services industry as to the activities in which that industry may
engage, to consolidate the regulatory structure for depository institutions,
to recapitalize the Bank Insurance Fund and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
March 20, 1991
Mr. GONZALEZ (for himself and Mr. WYLIE) (both by request) introduced the
following bill; which was referred jointly to the Committees on Banking,
Finance and Urban Affairs, Energy and Commerce, and Ways and Means
A BILL
To reform the Federal deposit insurance system, to improve the supervision
and regulation of federally insured depository institutions, to reform the
financial services industry as to the activities in which that industry may
engage, to consolidate the regulatory structure for depository institutions,
to recapitalize the Bank Insurance Fund and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
  (a) SHORT TITLE- This Act may be cited as the `Financial Institutions
  Safety and Consumer Choice Act of 1991'.
  (b) TABLE OF CONTENTS-
TITLE I--FEDERAL DEPOSIT INSURANCE REFORM
Subtitle A--Federal Deposit Insurance Reform
Sec. 101. Deposit and pass-through insurance.
Sec. 102. Deposit solicitation restricted.
Sec. 103. Least-cost resolution.
Sec. 104. Risk-based assessments.
Sec. 105. Restrictions on federally insured State bank activities.
Sec. 106. Examinations.
Sec. 107. Market value and other disclosure.
Sec. 108. Capital standards and interest rate risk.
Sec. 109. Requirements to expense deposit with National Credit Union Share
Insurance Fund.
Subtitle B--Reinsurance Demonstration Project
Sec. 116. Reinsurance demonstration project.
TITLE II--FINANCIAL SERVICES MODERNIZATION
Subtitle A--Financial Services Holding Companies
Sec. 201. Financial services holding companies.
Sec. 202. Acquisition of banks.
Sec. 203. Interests in nonbanking organizations.
Sec. 204. Diversified holding companies.
Sec. 205. Administration.
Sec. 206. Reservation of rights to States; pre-emption of anti-affiliation
provisions.
Sec. 207. Penalties.
Sec. 208. Conforming amendments to judicial review provision.
Sec. 209. Antitrust review.
Sec. 210. Technical amendment.
Sec. 211. Effective date.
Sec. 212. Application of the limitations on tying arrangements and insider
lending to financial services holding and diversified holding companies.
Sec. 213. Provisions exempting financial services holding companies from
the savings and loan holding company act.
Subtitle B--Financial Activities of National Banks
Sec. 221. Amendments to the Banking Act of 1933.
Sec. 222. Insurance activities of national banks.
Sec. 223. Amendments to sections 23A and 23B of the Federal Reserve Act.
Sec. 224. Customer disclosure.
Sec. 225. Bankers' banks.
Subtitle C--Non-banking Activities of Foreign Banks in the United States
Sec. 231. Amendments to the International Banking Act of 1987.
Subtitle D--Amendments to the Securities Acts
Sec. 241. Amendments to the Securities Act of 1933.
Sec. 242. Amendments to the Securities Exchange Act of 1934.
Sec. 243. Amendments to the Investment Company Act of 1940.
Sec. 244. Removal of the exclusion from the definition of investment adviser
for banks that advise investment companies.
Sec. 245. Treatment of bank common trust funds.
Sec. 246. Securities and Exchange Commission study of bank insurance pooled
investment vehicles.
Sec. 247. Effective date.
Subtitle E--Prompt Corrective Action
Sec. 251. Prompt corrective action.
Subtitle F--Nationwide Banking and Branching
Sec. 261. Nationwide banking.
Sec. 262. Interstate branching by national banks.
Sec. 263. Interstate consolidation or merger of national banks or State
banks with national banks.
Sec. 264. Interstate branching by State banks.
Sec. 265. Interstate branching and banking by foreign banks.
Sec. 266. Interstate acquisitions by savings and loan holding companies.
Sec. 267. Effective dates.
TITLE III--REGULATORY RESTRUCTURING
Subtitle A--Office of Depository Institutions Supervision
Sec. 301. Establishment of the Office of Depository Institutions Supervision.
Sec. 302. Definitions.
Sec. 303. Director of the Office of Depository Institutions Supervision.
Sec. 304. Authority of the Director.
Sec. 305. Personnel.
Sec. 306. Regulations and orders.
Sec. 307. Funding.
Subtitle B--Interim Provisions; Transfer of Functions, Personnel, and Property
Sec. 311. Interim provisions for the Office of Depository Institutions
Supervision.
Sec. 312. Office of Thrift Supervision abolished.
Sec. 313. Office of Comptroller of the Currency abolished.
Subtitle C--Regulatory and Supervisory Responsibility
Sec. 321. Transfer of powers and duties.
Sec. 322. Appropriate Federal banking agency.
Sec. 323. Examinations.
Sec. 324. Conforming amendments.
Sec. 325. Appointment of a receiver.
Subtitle D--Transfer of Federal Deposit Insurance Corporation Authority
Sec. 331. Amendments to the Federal Deposit Insurance Act.
Sec. 332. Amendments to the Federal Reserve Act.
Sec. 333. Savings provisions.
Sec. 334. Transfer of personnel and property.
Subtitle E--Litigation Authority
Sec. 341. Litigation authority.
Subtitle F--Reorganization of Boards of Directors
Sec. 351. Federal Deposit Insurance Corporation Board of Directors.
Sec. 352. National Credit Union Administration Board of Directors.
Subtitle G--Savings Provisions for the Transfer of Authority From the Board
of Governors of the Federal Reserve System to the Director
Sec. 361. Savings Provisions.
TITLE IV--BANK INSURANCE FUND RECAPITALIZATION
Subtitle A--Federal Deposit Insurance Corporation Borrowing
Sec. 401. Federal Deposit Insurance Corporation borrowing.
Sec. 402. Amendments to the Federal Reserve Act.
Subtitle B--Federal Deposit Insurance Corporation Assessments
Sec. 411. Maximum aggregate assessment.
Sec. 412. Bank insurance fund borrowing assessment.
TITLE V--MISCELLANEOUS PROVISIONS
Subtitle A--Payment System Risk Reduction
Sec. 501. Findings and purpose.
Sec. 502. Definitions.
Sec. 503. Bilateral netting.
Sec. 504. Clearing organization netting.
Sec. 505. Preemption.
Subtitle B--Right to Financial Privacy Act of 1978
Sec. 511. Amendments to the Right to Financial Privacy Act of 1978.
Subtitle C--Reduction in Regulatory Burden
Sec. 521. Home Mortgage Disclosure Act.
Sec. 522. Regulatory burden study.
Sec. 523. Fair housing reporting.
Subtitle D--Expedited Funds Availability
Sec. 531. Amendment to the Expedited Funds Availability Act.
Subtitle E--Final Settlement Payment Procedure
Sec. 541. Final Settlement Payment Procedure.
TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS
Subtitle A--Severability; Transition References
Sec. 601. Severability.
Sec. 602. Transition references.
Subtitle B--Technical and Conforming Amendments
Sec. 611. Amendment to Acts codified in title 2, United States Code.
Sec. 612. Amendments to title 5, United States Code.
Sec. 613. Amendment to Act codified in title 7, United States Code.
Sec. 614. Amendments to title 11, United States Code.
Sec. 615. Amendments to Acts codified in title 12, United States Code.
Sec. 616. Amendments to Acts codified in title 15, United States Code.
Sec. 617. Amendment to Act codified in title 16, United States Code.
Sec. 618. Amendments to title 18, United States Code.
Sec. 619. Amendment to Act codified in title 22, United States Code.
Sec. 620. Amendment to Act codified in title 25, United States Code.
Sec. 621. Amendments to the Internal Revenue Code of 1986.
Sec. 622. Amendments to title 28, United States Code.
Sec. 623. Amendments to title 31, United States Code.
Sec. 624. Amendments to Acts codified in title 42, United States Code.
Sec. 625. Amendments to title 44, United States Code.
Sec. 626. Amendment to title 46, United States Code.
Sec. 627. Amendments to Public Law 101-647.
Subtitle C--Repeal of Obsolete Provisions of Law
Sec. 631. Repeal of obsolete provisions of law.
Subtitle D--Effective Date
Sec. 641. Effective date.
SEC. 2. PURPOSES.
  The purposes of this Act are:
  (1) To return deposit insurance coverage to its original purposes of
  protecting small depositors and promoting financial stability.
  (2) To strengthen the role of capital in insured depository institutions.
  (3) To enhance the supervision of insured depository institutions.
  (4) To restrict risky activities of insured depository institutions.
  (5) To permit nationwide banking and branching.
  (6) To authorize the establishment of financial services holding companies
  to permit companies owning depository institutions to engage in other
  financial activities with appropriate safeguards.
  (7) To promote consumer convenience by permitting banking organizations
  a broader range of financial products.
  (8) To simplify the regulatory structure for depository institutions by
  establishing a consolidated regulatory agency, the Office of Depository
  Institutions Supervision.
  (9) To recapitalize the Bank Insurance Fund.
TITLE I--FEDERAL DEPOSIT INSURANCE REFORM
Subtitle A--Federal Deposit Insurance Reform
SEC. 101. DEPOSIT AND PASS-THROUGH INSURANCE.
  (a) Definitions Relating to Insured Deposits-
  (1) Section 3(m) of the Federal Deposit Insurance Act (12 U.S.C. 1813(m))
  is amended--
  (A) by amending paragraph (1) to read as follows:
  `(1) Subject to the provisions of paragraphs (2) and (3) of this subsection,
  the term `insured deposit' means the net amount due to any depositor for
  deposits in an insured depository institution less any part thereof which
  is in excess of $100,000 as such net amount is determined in accordance
  with section 11(a) of this Act.'; and
  (B) by inserting after paragraph (2) the following new paragraph:
  `(3) The term `insured deposit' shall not include--
  `(A) funds obtained or accepted, directly or indirectly, by or through
  any deposit broker, as defined in subsection (y) of this section, for
  deposit into one or more deposit accounts; provided, however, that this
  subparagraph shall not apply to any insured depository institution for
  which the Federal Deposit Insurance Corporation or the Resolution Trust
  Corporation has been appointed as conservator or the appropriate Federal
  banking agency has appointed a conservator and such conservator has
  determined that the acceptance of such funds--
  `(i) is not an unsafe or unsound practice; and
  `(ii) either--
  `(I) is necessary to enable the institution to meet the demands of its
  depositors or pay its obligations in the ordinary course of business; or
  `(II) is consistent with the conservator's fiduciary duty to minimize the
  losses of the institution; and
  `(B) A depository institution investment contract or similar contract
  entered into between an insured depository institution and an employee
  benefit plan as defined in section 3(3) of the Employee Retirement Income
  Security Act (29 U.S.C. 1002), including a plan described in section 401(d)
  of the Internal Revenue Code of 1986 (26 U.S.C. 401(d)), which contract
  is nontransferable and provides for the deposit of funds over an extended
  period of time at a specified rate of interest whether or not the funds
  can be withdrawn without penalty prior to maturity.'.
  (2) Section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813) is
  amended by inserting after subsection (x) the following new subsection:
  `(y)(1) DEPOSIT BROKER- The term `deposit broker' means--
  `(A) any person engaged in the business of placing deposits, or facilitating
  the placement of deposits, of third parties with insured depository
  institutions or the business of placing deposits with insured depository
  institutions for the purpose of selling interests in those deposits to
  third parties; or
  `(B) an agent or  trustee who establishes a deposit account to facilitate
  a business arrangement with an insured depository institution to use the
  proceeds of the account to fund a prearranged loan.
  `(2) EXCLUSIONS- The term `deposit broker' does not include--
  `(A) an insured depository institution with respect to funds placed with
  that depository institution or any other insured depository institution;
  `(B) an employee, as defined in section 29(b), of an insured depository
  institution, with respect to funds placed with the employing depository
  institution;
  `(C) a trust department of an insured depository institution, if the trust
  in question has not been established for the primary purpose of placing
  funds with insured depository institutions;
  `(D) the trustee of a pension or other employee benefit plan with respect
  to funds of the plan;
  `(E) a person acting as a plan administrator or an investment adviser in
  connection with a pension plan or other employee benefit plan provided
  that such person is performing managerial functions with respect to the plan;
  `(F) the trustee of a testamentary account;
  `(G) the trustee of an irrevocable trust (other than one described
  in paragraph (1)(B)), as long as the trust in question has not been
  established for the primary purpose of placing funds with insured depository
  institutions;
  `(H) a trustee or custodian of a pension or profit sharing plan qualified
  under section 401(d) or 403(a) of the Internal Revenue Code of 1986; or
  `(I) an agent or nominee whose primary purpose is not the placement of
  funds with depository institutions.'
  (b) INSURANCE OF DEPOSITS-
  (1) INSURED AMOUNTS PAYABLE- Section 11(a)(1) of the Federal Deposit
  Insurance Act (12 U.S.C. 1821(a)(1)) is amended to read as follows:
  `(a)(1)(A) The Corporation shall insure the deposits of all insured
  depository institutions as provided in this Act. The maximum amount of the
  insured deposit of any depositor shall be $100,000 per insured depository
  institution as determined in accordance with this Act.
  `(B) All deposits shall be registered under the taxpayer identification
  number or employer identification number of each depositor. For the purpose
  of aggregating and attributing deposits the Corporation may consider
  additional information contained in the records of the insured depository
  institution or made available by the depositor.
  `(C) For the purpose of determining the amount due to any depositor under
  subparagraph (A), the Corporation shall aggregate the amounts of all deposits
  in the insured depository institution which are maintained by a depositor or
  by others for the benefit of the depositor. The amount due to a depositor
  is the lesser of the amount calculated hereunder, or $100,000. For the
  purpose of aggregating amounts due to a depositor, the following shall apply:
  `(i) Deposits registered under the same taxpayer identification number
  or employer identification number of one depositor shall be attributed to
  that depositor.
  `(ii) Deposits registered under the taxpayer identification number
  or employer identification number of more than one depositor shall be
  attributed equally, unless otherwise specified in the deposit account
  records, among those depositors.
  `(iii) Deposits consisting of a revocable trust or similar account shall
  be attributed to the settlor or grantor of the deposit account.
  `(iv) Deposits maintained by an individual or entity (including an insured
  depository institution) acting as an agent, custodian, nominee, conservator
  or in a similar capacity on behalf of a principal (other than an insured
  depository institution) shall be attributed to such principal.
  `(v) Such other attribution to a depositor as the Board of Directors
  determines by regulation not to be unduly burdensome and costly to calculate;
  provided that the depositor has control over the deposit account and that
  such attribution would be consistent with the insurance purposes of this Act.
  `(D) For the purpose of determining the amount of insurance due under
  subparagraph (A), the Corporation shall not provide deposit insurance
  coverage on a pro-rata or pass-through basis to a participant in or
  beneficiary of an employee benefit plan, as defined in section 3(3) of
  the Employee Retirement Income Security Act (29 U.S.C. 1002), including a
  plan described in section 401(d) of the Internal Revenue Code of 1986 (26
  U.S.C. 401), other than a participant in or beneficiary of an individual
  account plan, as defined in section 3(34) of the Employee Retirement Income
  Security Act (29 U.S.C. 1033) or a plan described in section 401(d) of the
  Internal Revenue Code of 1986 (26 U.S.C. 401(d)), under which participants
  and beneficiaries have the right to direct the investment of assets held
  in individual accounts maintained on their behalf.
  `(E) Notwithstanding subparagraph (C)(iv), the Corporation shall provide
  separate deposit insurance coverage on a pro-rata or pass-through basis if--
  `(i) the deposit account is maintained for a business purpose.
  `(ii) the principal or beneficiary does not have any control over where
  the funds are deposited;
  `(iii) the deposit account is not maintained for investment purposes; and
  `(iv) the deposit account is not maintained principally for the purpose
  of increasing insurance  coverage.
  `(F) The Board of Directors may adopt such regulations as may be necessary
  to implement this subsection and subsection (i)(3) and to clarify the
  insurance coverage thereunder.'.
  (2) CERTAIN RETIREMENT ACCOUNTS- Section 11(a)(3) of the Federal Deposit
  Insurance Act (12 U.S.C. 1821(a)(3)) is amended to read as follows:
  `(3)(A) Notwithstanding paragraph (1)(C) relating to the amount of deposit
  insurance available for the account of any one depositor, deposits in
  an insured depository institution made in connection with an individual
  retirement account, as described in section 408 of the Internal Revenue
  Code of 1986, and an individual account plan defined in section 3(34)
  of the Employee Retirement Income Security Act (29 U.S.C. 1033), or plan
  described in section 401(d) of the Internal Revenue Code of 1986, under which
  participants and beneficiaries have the right to direct the investment of
  assets held in individual accounts maintained on their behalf by the plan,
  shall be aggregated and insured in an amount not to exceed $100,000 per
  participant per insured depository institution.
  `(B) For purposes of subparagraph (A), the amount aggregated for insurance
  coverage hereunder shall consist of the present vested and ascertainable
  interest of each participant under the plan, excluding any remainder
  interest created by, or as a result of, the plan.'.
  (3) CERTAIN TRUST FUNDS- Section 7(i) of the Federal Deposit Insurance Act
  (12 U.S.C. 1817(i)) is amended to read as follows:
  `(i) INSURANCE OF TRUST FUNDS- Trust funds held on deposit by an insured
  depository institution as trustee pursuant to irrevocable trusts,
  established pursuant to statute or written trust agreements, shall be
  insured in an amount not to exceed $100,000 for each trust estate. When
  such trust funds are deposited by the fiduciary depository institution in
  another insured depository institution, such trust funds shall be similarly
  insured to the fiduciary depository institution according to the trust
  estates represented. The Board of Directors may adopt such regulations as
  may be necessary to clarify the insurance coverage under this subsection
  and to prescribe the manner of reporting and depositing such trust funds.'.
  (4) REGULATIONS- For the purpose of promulgating regulations, during
  the one-year period beginning on the date of enactment of this Act,
  the Board of Directors shall review the capacities and rights in which
  deposit accounts are maintained and for which deposit insurance coverage
  is provided by the Corporation. At the end of such period, the Board of
  Directors may promulgate regulations, to be effective not earlier than two
  years after the date of enactment of this Act, that provide for separate
  insurance coverage for the different capacities and rights in which deposit
  accounts are maintained if a determination is made by the Board of Directors
  that such separate insurance coverage is consistent with the purpose of
  protecting small depositors and limiting the undue expansion of deposit
  insurance coverage and is consistent with the insurance provisions of the
  Federal Deposit Insurance Act.
  (c) EFFECTIVE DATE- The amendments made by subsections (a) and (b) shall be
  effective two years after the date of enactment of this Act. Such amendments
  shall not apply to any time deposit that was entered into before the date
  of enactment of this Act and that matures more than two years after the
  date of enactment of this Act. Such amendments shall apply, however, to
  any renewal or rollover of a time deposit that occurs more than two years
  after the date of enactment of this Act.
  (d) FEASIBILITY STUDY-
  (1) IN GENERAL- The Federal Deposit Insurance Corporation, in conjunction
  with such consultants and technical experts as the Corporation determines to
  be appropriate, shall conduct a study of the feasibility of implementing a
  system of deposit insurance based on systemwide limitations on coverage for
  each depositor. The study shall include detailed, technical analysis of the
  costs and benefits associated with the least expensive way to implement the
  system. As part of the study, the Corporation shall investigate, review,
  and evaluate--
  (A) the data systems that would be required to implement the system;
  (B) the reporting burdens of such a system on individual depository
  institutions;
  (C) the interface with existing data processing systems maintained by
  depository institutions; and
  (D) the use of a selective audit of depositors for compliance after the
  resolution of a failed depository institution.
  (2) SURVEY- As part of the feasibility study, the Board of Governors
  of the Federal Reserve System shall conduct, in conjunction with other
  Federal departments and agencies as necessary, a survey of the ownership of
  deposits held by individuals including the dollar amount of deposits held,
  the type of deposit accounts held, and the type of financial institutions
  in which the deposit accounts are held. The results of the survey shall be
  provided to the Federal Deposit Insurance Corporation not later than one
  year from the date of enactment of this Act for analysis and inclusion in
  the feasibility study.
  (3) REPORT TO CONGRESS- Not later than 18 months after the date of
  enactment of this Act, the Federal Deposit Insurance Corporation shall
  submit to the Congress a report containing a detailed statement of findings
  made and conclusions drawn from the study conducted under this section,
  including such recommendations for administrative and legislative action
  as the Corporation determines to be appropriate.
  (e) CONFORMING AMENDMENTS-
  (1) Section 11(a)(2) of the Federal Deposit Insurance Act (12
  U.S.C. 1821(a)(2)) is amended by inserting after subparagraph (B) the
  following new subparagraph:
  `(C) Each officer, employee, or agent of the United States, of any State
  of the United States, of the District of Columbia, of any Territory of the
  United States, of Puerto Rico, of Guam, of American Samoa, of the Trust
  Territory of the Pacific Islands, of the Virgin Islands, of the Northern
  Mariana Islands, of any county, or any municipality, or of any political
  subdivision thereof, herein called `public unit', having official custody
  of public funds and lawfully depositing the same in an insured depository
  institution shall, for the purpose of determining the amount of insured
  deposits, be deemed a depositor in such custodial capacity separate and
  distinct from any other officer, employee, or agent of the same or any
  public unit having official custody of public funds and lawfully depositing
  the same in an insured depository institution in a custodial capacity.'.
  (2) Section 12(c) of the Federal Deposit Insurance Act (12 U.S.C. 1822(c))
  is amended by inserting `as provided in section 1821(a)(1)(B) or' after
  `Except'.
SEC. 102. DEPOSIT SOLICITATION RESTRICTED.
  (a) IN GENERAL- Section 29 of the Federal Deposit Insurance Act (12
  U.S.C. 1831f) is amended to read as follows:
`SEC. 29. DEPOSIT SOLICITATION RESTRICTED.
  `(a) IN GENERAL- No insured depository institution which does not meet
  the applicable minimum capital requirements, or employee of any such
  institution, shall engage, directly or indirectly, in the solicitation of
  deposits by offering rates of interest (with respect to such deposits)
  which are significantly higher than the prevailing rates of interest
  on deposits offered by other insured depository institutions in such
  institution's normal market areas.
  `(b) EMPLOYEE- For purposes of this subsection, the term `employee' means
  any employee--
  `(1) who is employed on a full-time or part-time basis by the insured
  depository institution;
  `(2) whose compensation is primarily in the form of a salary;
  `(3) who does not share such employee's compensation with a deposit
  broker; and
  `(4) whose office space or place of business is used exclusively for
  the benefit of the insured depository institution which employs such
  individual.'.
  (b) EFFECTIVE DATE- The amendment made by subsection (a) shall become
  effective on the date of enactment of this Act.
SEC. 103. LEAST-COST RESOLUTION.
  (a) Section 13(c)(4) of the Federal Deposit Insurance Act (12
  U.S.C. 1823(c)(4)) is amended--
  (1) by amending subparagraph (A) to read as follows:
  `(A)(i) With respect to any insured depository institution, the Corporation
  shall provide assistance or make payments only in such amounts as are
  necessary to satisfy the Corporation's obligations to that institution's
  insured depositors at the least cost to the affected deposit insurance
  fund whether by insured deposit payout, insured deposit transfer, or such
  other least-cost method as determined by the Corporation in accordance
  with subparagraph (B).
  `(ii) Notwithstanding clause (i), the Corporation shall provide assistance or
  make payments to satisfy, in whole or in part, the institution's liability
  to its uninsured depositors if such assistance or payments would constitute
  the least-cost method of resolving the depository institution.';
  (2) by redesignating subparagraph (B) as subparagraph (D) and inserting
  after subparagraph (A) the following new subparagraphs:
  `(B) In making determinations under subparagraph (A), the Corporation shall--
  `(i) evaluate alternatives on a present value basis, using a realistic
  discount rate; document that evaluation; retain that documentation for
  not less than five years; and treat the Federal tax revenues that the
  Government would forgo as the result of a proposed transaction, to the
  extent reasonably ascertainable, as if they were revenues forgone by the
  affected deposit insurance fund, and
  `(ii) determine and compare the costs of assistance or liquidation as
  of the date on which the Corporation makes the determination to provide
  assistance under this Act,
except that the Corporation shall not consider the impact of such a transaction
on the financial system.
  `(C) Upon a joint determination by the Board of Governors of the Federal
  Reserve System and the Secretary of the Treasury that the Corporation
  would be unable to resolve an insured depository institution in accordance
  with subparagraph (A) without causing a severe adverse impact upon the
  financial system, the Board of Governors of the Federal Reserve System
  and the Secretary of the Treasury, in consultation with the Corporation
  and the Director of the Office of Management and Budget, shall direct the
  Corporation to provide assistance or make payments to an insured depository
  institution to satisfy the institution's liability to its depositors or
  take such other action as determined to be necessary to lessen the risk
  posed by such depository institution.'.
  (b) Section 11 of the Federal Deposit Insurance Act (12 U.S.C. 1821)
  is amended--
  (1) in subsection (i)(3)(A), by striking `The Corporation may' and inserting
  instead `Subject to section 13(c)(4) of this Act, the Corporation may';
  (2) in subsection (m)(1), by striking `As soon as possible' and inserting
  instead `Subject to section 13(c)(4) of this Act, as soon as possible'; and
  (3) in subsection (n)(1)(A), by striking `When 1 or more' and inserting
  instead `Subject to section 13(c)(4) of this Act, when 1 or more'.
  (c) Section 13(c) or the Federal Deposit Insurance Act (12 U.S.C. 1823(c))
  is amended--
  (1) in paragraph (1)--
  (A) by striking `The Corporation is authorized in its sole discretion
  and' and inserting instead `Subject to paragraph (4), the Corporation
  is authorized';
  (B) in subparagraph (A), by inserting `or' after the semicolon;
  (C) in subparagraph (B), by striking `; or' and inserting instead a
  period; and
  (D) by striking subparagraph (C);
  (2) in paragraph (2)--
  (A) in subparagraph (A), by striking `In order to' and inserting instead
  `Subject to paragraph (4), in order to';
  (B) in subparagraph (B)(i), by inserting `or' after the semicolon;
  (C) in subparagraph (B)(ii), by striking `; or' and inserting instead a
  period; and
  (D) by striking subparagraph (B)(iii).
  (d) Section 13(i)(7) of the Federal Deposit Insurance Act (12
  U.S.C. 1823(i)(7)) is amended to read as follows:
  `(7) The assistance provided to a qualified depository institution pursuant
  to this subsection must result in the least-cost to the affected deposit
  insurance fund as provided in subsection (C)(4).'.
  (e) Section 13(k)(1)(A)(i) of the Federal Deposit Insurance Act (12
  U.S.C. 1823(k)(1)(A)(i)) is amended by striking `determining that severe'
  and all that follows through `Corporation' the second time it appears
  and inserting instead `a determination made in accordance with subsection
  (c)(4)(C)(i), the Corporation'.
  (f) EFFECTIVE DATE- The amendments made by this section shall become
  effective three years after the date of enactment of this Act.
SEC. 104. RISK-BASED ASSESSMENTS.
  (a) ASSESSMENT RATES-
  (1) Section 7(b)(1)(C)(i) of the Federal Deposit Insurance Act (12
  U.S.C. 1817(b)(1)(C)(i)) is amended by striking `the greater of 0.15
  percent or'.
  (2) Section 7(b)(1)(D)(i) of the Federal Deposit Insurance Act (12
  U.S.C. 1817(b)(1)(D)(i)) is amended by striking `the greater of 0.15
  percent or'.
  (b) RISK-BASED ASSESSMENTS- Section 7(b) of the Federal Deposit Insurance Act
  (12 U.S.C. 1817(b)) is amended by redesignating paragraph (9) as paragraph
  (10), and by inserting after paragraph (8) the following new paragraph (9):
  `(9) RISK-BASED ASSESSMENTS-
  `(A) IN GENERAL- Subject to paragraph (1), the Board of Directors shall,
  by regulation, establish a risk-based assessment system for insured
  depository institutions.
  `(B) RISK-BASED ASSESSMENT SYSTEM DEFINED- For purposes of this paragraph,
  the term `risk-based assessment system' means a system relating insured
  depository institutions' assessment rates to the risk those institutions
  pose to the affected deposit insurance fund.
  `(C) PROVISIONS APPLICABLE TO ESTABLISHMENT OF SYSTEM- In establishing
  an assessment system under subparagraph (A), assessment rates shall be
  established based upon categories of risk. In determining the categories
  of risk, the Board of Directors--
  `(i) shall use the ratio of capital to risk-weighted assets for the insured
  depository institutions; and
  `(ii) may use the following criteria--
  `(I) the activities conducted by insured depository institutions;
  `(II) the assets and liabilities of insured depository institutions; and
  `(III) such circumstances, conditions, activities or other risk factors that
  the Board of Directors determines may appropriately be taken into account.'.
  (c) PROMULGATION OF REGULATIONS- Not later than eighteen months after the
  date of enactment of this Act, the Board of Directors of the Federal Deposit
  Insurance Corporation shall promulgate the regulations required by section
  7(b)(9) of the Federal Deposit Insurance Act. Such regulations shall become
  effective not later than two years after the date of enactment of this Act.
SEC. 105. RESTRICTIONS ON FEDERALLY INSURED STATE BANK ACTIVITIES.
  (a) The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended
  by inserting after section 23 the following new section:
`SEC. 24. ACTIVITIES OF FEDERALLY INSURED STATE BANKS.
  `(a) IN GENERAL- Beginning one year after the date of enactment of the
  Financial Institutions Safety and Consumer Choice Act of 1991, an insured
  State bank may not engage as principal in any type of activity that is
  not permissible for a national bank unless--
  `(1) the Federal Deposit Insurance Corporation has determined that the
  activity would pose no significant risk to the affected deposit insurance
  fund; and
  `(2) the State bank is, and continues to be, in compliance with minimum
  capital standards prescribed by the appropriate Federal banking agency.
  `(b) EQUITY INVESTMENTS BY STATE BANKS-
  `(1) IN GENERAL- A State bank may not directly or indirectly acquire
  or retain any equity investment of a type that is not permissible for a
  national bank.
  `(2) EXCEPTION FOR CERTAIN SUBSIDIARIES- Paragraph (1) shall not prohibit a
  State bank from acquiring or retaining an equity investment in a subsidiary
  of which the State bank is a majority owner.
  `(3) TRANSITION RULE-
  `(A) IN GENERAL- The Federal Deposit Insurance Corporation shall require
  any State bank to divest any equity investment the retention of which is
  not permissible under this subsection as quickly as can be prudently done,
  and in any event not later than five years from the date of enactment of
  the Financial Institutions Safety and Consumer Choice Act of 1991.
  `(B) TREATMENT OF NONCOMPLIANCE DURING DIVESTMENT- With respect to any
  equity investment held by any State bank on the date of enactment of the
  Financial Institutions Safety and Consumer Choice Act of 1991, the bank shall
  be deemed not to be in violation of the prohibition in this subsection on
  retaining such investment so long as the bank complies with the applicable
  requirements established by the Corporation for divesting such investments.
  `(c) SUBSIDIARIES OF FEDERALLY INSURED STATE BANKS-
  `(1) IN GENERAL- Beginning one year after the date of enactment of the
  Financial Institutions Safety and Consumer Choice Act of 1991, a subsidiary
  of an insured State bank may not engage as principal in any type of activity
  that is not permissible for a subsidiary of a national bank unless--
  `(A) the Federal Deposit Insurance Corporation has determined that the
  activity would pose no significant risk to the affected deposit insurance
  fund; and
  `(B) the bank is, and continues to be, in compliance with minimum capital
  standards prescribed by the appropriate Federal banking agency.
  `(2) Notwithstanding paragraph (1), no subsidiary of an insured State bank
  may engage in securities or insurance underwriting except to the extent
  such activities are permissible for national banks.
  `(d) DETERMINATIONS- The Federal Deposit Insurance Corporation shall make
  determinations under this section by regulation and order.
  `(e) DEFINITIONS-
  `(1) ACTIVITY DEFINED- For purposes of this section, the term `activity'
  includes acquiring or retaining any investment.
  `(2) STATE BANK DEFINED- The term `State bank' has the same meaning as
  provided in section 3(a)(2) of the Federal Deposit Insurance Act (12
  U.S.C. 1813(a)(2)).
  `(f) OTHER AUTHORITY NOT AFFECTED- This section shall not be construed as
  limiting the authority of the Board of Governors of the Federal Reserve
  System, the Office of Depository Institutions Supervision, or any State
  authority to impose more stringent restrictions.'.
  (b) Section 9 of the Federal Reserve Act (12 U.S.C. 330) is amended by
  inserting `the Board of Governors of the Federal Reserve System is authorized
  to restrict the activities of State banks and their subsidiaries consistent
  with section 24 of the Federal Deposit Insurance Act: Provided further,'
  after `Provided, however,'.
SEC. 106. EXAMINATIONS.
  (a) FEDERAL RESERVE SYSTEM-
  (1) Section 11(a) of the Federal Reserve Act (12 U.S.C. 248(a)) is amended--
  (A) by redesignating paragraph (2) as paragraph (3), and by inserting
  after paragraph (1) the following new paragraph:
  `(2) To conduct annual on-site examinations of each bank, and each branch
  of a foreign bank for which the Board of Governors of the Federal Reserve
  System is the appropriate Federal banking agency, except that banks and
  branches that have total assets of less than $1,000,000,000 as of December
  31 of the year preceding an examination and that are in compliance with
  required capital standards shall be examined on-site at least once during
  the following 18-month period.'; and
  (B) in paragraph (3) (as redesignated), by striking clauses (i) through
  (iv) and inserting instead: `appropriate Federal banking agency, the
  National Credit Union Administration Board in the case of insured credit
  unions, and such State officer or agency as the Board may designate in
  the case of State banks, savings associations and credit unions that are
  not federally insured.'.
  (2) Section 9 of the Federal Reserve Act (12 U.S.C. 338) is amended in
  the twenty-third paragraph--
  (A) by striking the first sentence and inserting instead: `In connection
  with examinations required by section 11(a)(2) of this Act, for which
  the Board of Governors of the Federal Reserve System is the appropriate
  Federal banking agency, examiners selected or approved by the Board of
  Governors of the Federal Reserve System shall examine the affairs of any
  affiliate, other than those examined pursuant to the Financial Services
  Holding Company Act of 1991, in the same manner and to the same extent
  as affiliates are examined by the Director of the Office of Depository
  Institutions Supervision pursuant to section 323 (d) and (g)(2) of the
  Financial Institutions Safety and Consumer Choice Act of 1991.';
  (B) in the second sentence by--
  (i) striking `of any State member bank'; and
  (ii) striking `such bank' the first time it appears and inserting instead
  `the bank affiliated with such affiliate'; and
  (C) in the third sentence, by striking `State member'.
  (b) EFFECTIVE DATE- The amendments made by subsection (a) shall become
  effective on January 1, 1993.
SEC. 107. MARKET VALUE AND OTHER DISCLOSURE.
  (a) MARKET VALUE DISCLOSURE- Not later than one year after the date of
  enactment of this Act, the appropriate Federal banking agencies and the
  Securities and Exchange Commission, jointly, shall develop a method for
  banks to provide for the supplemental disclosure of the fair market value
  of assets and liabilities, to the extent feasible and practicable, in
  financial statements and reports required to be filed with the appropriate
  Federal banking agencies and the Securities and Exchange Commission.
  (b) AUDIT REPORTS- Section 7(a) of the Federal Deposit Insurance Act (12
  U.S.C. 1817(a)) is amended by inserting after paragraph (8) the following
  new paragraph:
  `(9) INDEPENDENT AUDITOR REPORTS-
  `(A) Each insured bank shall provide to the appropriate Federal banking
  agency copies of audit reports and any qualifications to such reports,
  management letters and any other reports within 15 days of receipt from
  the bank's independent auditors.
  `(B) Each insured bank shall provide written notification to the appropriate
  Federal banking agency of the resignation or dismissal of its independent
  auditor and the engagement of a new independent auditor including a
  statement of the reasons for such change within 15 calendar days of the
  occurrence of the event.'.
SEC. 108. CAPITAL STANDARDS AND INTEREST RATE RISK.
  The appropriate Federal banking agencies shall develop a system to monitor
  interest rate risk and to adjust risk-based capital standards to reflect
  interest rate risk. In order to implement this system, the appropriate
  Federal banking agencies shall promulgate regulations within one year
  after the date of enactment of this Act, to be effective no later than
  two years after the date of enactment of this Act.
SEC. 109. REQUIREMENTS TO EXPENSE DEPOSIT WITH NATIONAL CREDIT UNION SHARE
INSURANCE FUND.
  (a) Section 201(b)(8) of the Federal Credit Union Act (12 U.S.C. 1781(b)(8))
  is amended to read as follows:
  `(8) to make an initial capitalization payment to the Fund in an amount,
  as determined by the Board, equaling the current equity ratio of the
  Fund times the total insurable shares of the applicant credit union, and
  to pay the annual capitalization adjustment and any premiums imposed by
  the Board pursuant to this Act: Provided, That the initial capitalization
  payment shall be expensed as prescribed by the Board, over a period not to
  exceed twelve years, in an amount of not less than one-twelfth each year:
  Provided, however, That amounts expensed in excess of one-twelfth each
  year shall be credited to amounts due in future years; and'.
  (b) Section 202 of the Federal Credit Union Act (12 U.S.C. 1782) is amended--
  (1) in subsection (b)(1), by striking all that appears after `preceding
  insurance year' and inserting instead `, the amount of its capitalization
  adjustment due to the Fund for that year, the amount of its insurance
  premium, if any, due for that year, and such other information as the
  Board shall prescribe.'; and
  (2) by amending subsection (c) to read as follows:
  `(c)(1) CAPITALIZATION ADJUSTMENT- Each insured credit union shall pay to the
  National Credit Union Share Insurance Fund, in accordance with procedures
  established by the Board, a capitalization adjustment equalling 1 percent
  of any increase in the credit union's insured shares over the course of the
  previous insurance year. Any insured credit union experiencing a decline
  in its insured shares over the course of the previous insurance year shall
  receive a refund in an amount equaling 1 percent of the decline.
  `(2) PREMIUM- In addition to the capitalization adjustment specified in
  paragraph (1), each insured credit union shall pay an annual insurance
  premium, in accordance with procedures established by the Board, in such
  amount as shall be necessary to maintain Fund equity at its minimum level
  of 1.25 percent: Provided, That the premium shall be determined as the same
  percentage of insured shares for all insured credit unions: Provided further,
  That in any year in which the Fund's equity level experiences a substantial
  decline, as determined by the Board, to a level below 1.25 percent, the
  Board shall have the discretion to allow the replenishment of the Fund to
  its minimum level of 1.25 percent over a period longer than one year.
  `(3) REBATE- In the event Fund equity exceeds its normal operating level
  and any loans to the Fund from the Federal Government and the interest
  thereon have been repaid at the end of a given insurance year, the Board
  shall provide a rebate for that insurance year to all insured credit
  unions in an amount sufficient to reduce the equity in the Fund to its
  normal operating level: Provided, That the rebate shall be determined as
  the same percentage of insured shares for all insured credit unions.';
  (3) in subsections (d), (e), and (f), by striking `deposit' each time it
  appears and inserting instead `capitalization payment or adjustment';
  (4) in subsection (g)--
  (A) by striking `deposits' and inserting instead `capitalization payment
  and adjustments';
  (B) by striking `payment of any deposit or adjustment thereof' and inserting
  instead `making of any capitalization payment or adjustment'; and
  (C) by striking `deposit' the last time it appears and inserting instead
  `capitalization payment';
  (5) in subsection (h), by amending paragraph (2) to read as follows:
  `(2) the term `normal operating level', when applied to the Fund, means
  an amount of Fund equity, based on market value accounting, equal to 1.3
  percent of the aggregate amount of insured shares in all insured credit
  unions, or such other level, not less than 1.25 percent and not more than
  1.5 percent, as the Board shall establish; and'; and
  (6) by adding at the end thereof the following new subsection:
  `(i) Over a twelve-year transition period beginning one year after the
  date of enactment of the Financial Institutions Safety and Consumer Choice
  Act of 1991, insured credit unions shall expense the one percent deposit
  maintained with the Board pursuant to the Deficit Reduction Act of 1984
  (Public Law 98-369); Provided, That the deposit, as calculated on the date
  of enactment of the Financial Institutions Safety and Consumer Choice Act
  of 1991, shall be expensed, as prescribed by the Board, over a period not
  to exceed twelve years, in an amount of not less than one-twelfth each
  year: Provided, however, That amounts expensed in excess of one-twelfth
  each year shall be credited to amounts due in future years.'.
  (c) Section 203(b) of the Federal Credit Union Act (12 U.S.C. 1783(b))
  is amended by striking `deposits' and inserting instead `capitalization
  payments or adjustments'.
Subtitle C--Reinsurance Demonstration Project
SEC. 116. REINSURANCE DEMONSTRATION PROJECT.
  (a) DEMONSTRATION PROJECT-
  (1) PURPOSE- The Federal Deposit Insurance Corporation, in consultation with
  the Secretary of the Treasury, shall establish a reinsurance demonstration
  project to determine the feasibility of developing a private reinsurance
  system.
  (2) PROJECT DEFINED- The demonstration project is to consist of a sample of
  private reinsurers and insured depository institutions that would simulate
  the activities required for actual reinsurance. These activities should
  include but are not limited to: establishing the pricing structure for
  risk-based premiums, formulating insurance contracts, and identifying and
  obtaining the information necessary to evaluate and monitor the risks in
  the subject insured depository institutions. If deemed appropriate by the
  Corporation, the project may engage in actual reinsurance transactions.
  (3) COMMITTEE ESTABLISHED- There is hereby established a Reinsurance
  Demonstration Project Committee comprised of the Chairperson of the
  Board of Directors of the Federal Deposit Insurance Corporation and a
  representative of each of the private reinsurers and insured depository
  institutions participating in the demonstration project. The committee
  shall analyze and review the results of the demonstration project and
  report to Congress as required by subsection (b).
  (b) REPORT TO CONGRESS- Not later than one year after the date of enactment
  of this Act, the Federal Deposit Insurance Corporation shall submit to the
  Congress a report on the results of the demonstration project required
  by subsection (a). The report shall include the conclusions reached
  regarding the feasibility of a private reinsurance system; whether public
  policy goals can be satisfied by such a system; and any recommendations
  for administrative and legislative action that may be necessary for the
  establishment of such a system. The report also shall include a separate
  statement of the views of the private participants regarding whether
  private reinsurers are sufficiently interested, and have the capacity to
  participate, in such a system.
TITLE II--FINANCIAL SERVICES MODERNIZATION
Subtitle A--Financial Services Holding Companies
SEC. 201. FINANCIAL SERVICES HOLDING COMPANIES.
  (a) DEFINITIONS MODIFIED- Section 2 of the Bank Holding Company Act (12
  U.S.C. 1841) is amended--
  (1) by amending subsection (a)(1) to read as follows:
  `(a)(1)(A) The term `financial services holding company' means any company
  (other than a diversified holding company) which has control over any bank.
  `(B) The term `diversified holding company' means any company (other than
  a bank or a foreign bank) which has control over a bank only through a
  financial services holding company and which engages in activities or
  controls any company engaged in activities that are not permissible for
  a financial services holding company or any subsidiary thereof under
  this Act.';
  (2) in the second sentence of subsection (a)(5)(A), by inserting a period
  after `thereto' and striking the balance of the sentence;
  (3) by amending subsection (f) to read as follows:
  `(f)(1) The term `appropriate Federal banking agency' shall have the same
  meaning as set forth in section 3(q) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(q)); and
  `(2) the term `Board' means the Board of Governors of the Federal Reserve
  System.';
  (4) by inserting after subsection (m) the following new subsections:
  `(n) SECURITIES AFFILIATE- The term `securities affiliate' means any company
  that is controlled by a financial services holding company and that is
  engaged in the United States in activities pursuant to section 4(c)(15).
  `(o) INSURANCE AFFILIATE- The term `insurance affiliate' means any company
  that is controlled by a financial services holding company and that is
  engaged in the United States in activities pursuant to section 4(c)(16).
  `(p) FOREIGN BANK- The term `foreign bank' has the same meaning as in
  section 1(b)(7) of the International Banking Act of 1978 (12 U.S.C. 3101(7)).
  `(q) INSURED DEPOSITORY INSTITUTIONS- The term `insured depository
  institution' means any insured bank as defined in section 3(h) of the Federal
  Deposit Insurance Act (12 U.S.C. 1813(h)) and any insured institution.
  `(r) ZONE 1 AND ZONE 2- The terms `Zone 1' and `Zone 2' have the same
  meaning as in section 35 of the Federal Deposit Insurance Act.
  `(s) ZONE 1 FINANCIAL SERVICES HOLDING COMPANY- The term `Zone 1 financial
  services holding company' means any financial services holding company
  that qualifies as a Zone 1 financial services holding company pursuant to
  section 35(d)(2) of the Federal Deposit Insurance Act.
  `(t) FUNCTIONAL REGULATOR- The term `functional regulator' means a Federal
  or State agency that has supervisory authority concerning the activities of
  a company (other than an insured depository institution) that are of concern
  to the appropriate Federal banking agency for purposes of section 6(c)(2).'.
  `(u) NEW FINANCIAL ACTIVITY- The term `new financial activity' means any
  activity authorized pursuant to sections 4(c)(8), 4(c)(15), or 4(c)(16)
  other than any activity that, prior to the date of enactment of the Financial
  Services Safety and Consumer Choice Act of 1991, the Board had determined,
  by any order or regulation that continued to be in effect on December 31,
  1992, to be closely related to banking and a proper incident thereto.
  `(v) QUALIFIED FINANCIAL ACTIVITY- The term `qualified financial activity'
  means any activity authorized pursuant to sections 4(c)(8), 4(c)(15),
  or 4(c)(16).
  `(w) FINANCIAL AFFILIATE- The term `financial affiliate' means any
  company that is controlled by a financial services holding company that
  is engaged in the United States in qualified financial activities and any
  other company that is controlled by a diversified holding company that
  is engaged in activities authorized to be engaged in by a subsidiary of a
  financial services holding company pursuant to sections 4(c)(8), 4(c)(15),
  or 4(c)(16).'.
  (b) CONFORMING AMENDMENTS- Section 2 of the Bank Holding Act of 1956
  (12 U.S.C. 1841), as amended by subsection (a), is further amended--
  (1) in subsection (c)(2)(J), by striking `Federal Savings and Loan Insurance
  Corporation insurance to Federal Deposit Insurance Corporation insurance'
  and inserting instead `Savings Association Insurance Fund to Bank Insurance
  Fund';
  (2) in subsection (h)(5), by striking `bank' the first time it appears
  and inserting `insured depository institution';
  (3) by striking `bank holding company' wherever it appears except in
  subsection (b) and inserting instead--
  (A) in subsections (a)(5)(A), (a)(5)(B), (a)(5)(C), (a)(5)(D), (d),
  and (g)(1), `financial services holding company and diversified holding
  company'; and
  (B) in all other instances, `financial services holding company'; and
  (4) by striking `Board' wherever it appears except in subsection (f)
  and inserting instead `appropriate Federal banking agency'.
SEC. 202. ACQUISITION OF BANKS.
  (a) AMENDMENTS TO APPLICATION PROCESS- Section 3 of the Bank Holding
  Company Act of 1956 (12 U.S.C. 1842) is amended--
  (1) in subsection (a)--
  (A) by amending paragraph (3) to read as follows:
  `(3) for any financial services holding company to acquire ownership or
  control of any voting shares of any insured depository institution or
  financial services holding company, for any diversified holding company
  to acquire ownership or control of any voting shares of any financial
  services holding company, or for a company to acquire ownership or control
  of a diversified holding company if, after such acquisition, such company
  will own or control more than 5 per centum of the voting shares of such
  institution or company;';
  (B) by inserting before `Notwithstanding the foregoing' the following
  new sentence: `It shall be unlawful for any insured depository institution
  (other than a foreign bank operating an insured branch as defined in section
  3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) to become
  a financial services holding company or a diversified holding company.';
  (C) by adding at the end thereof the following new sentence: `Notwithstanding
  paragraph (1), any company that was a bank holding company under the Bank
  Holding Company Act of 1956 on December 31, 1992, shall be a financial
  services holding company as of January 1, 1993 without further approval
  by the appropriate Federal banking agency.'; and
  (D)(i) in subparagraph (A), by striking `or' at the end thereof;
  (ii) in subparagraph (B), by striking the first period and inserting instead
  `; or'; and
  (iii) by inserting after `; or', as added by clause (ii), the following:
  `(C) the acquisition by a company of control of a bank in a reorganization
  in which a person or group of persons exchange their shares of the bank for
  shares of a newly formed financial services holding company and receive after
  the reorganization substantially the same proportional share interest in the
  holding company as they held in the bank except for changes in shareholders'
  interests resulting from the exercise of dissenting shareholders' rights
  under State or Federal law if--
  `(i) immediately following the acquisition, the bank meets the requirements
  for Zone 1 or Zone 2;
  `(ii) the holding company does not engage in any activities other than those
  of managing and controlling banks as a result of the reorganization; and
  `(iii) the company provides 30 days prior notification to the appropriate
  Federal banking agency.';
  (2) in subsection (b)--
  (A) by amending the first sentence to read as follows: `Upon receiving
  from a company any application for approval under this section to acquire
  any interest in an insured depository institution, the appropriate Federal
  banking agency shall give notice to the other appropriate Federal banking
  agency, if any, for such bank and, if the institution is State-chartered,
  to the appropriate supervisory authority of the interested State in order
  to provide for the submission of the views and recommendations of the other
  appropriate Federal banking agency and the State supervisory authority,
  as appropriate.';
  (B) by striking the term `Comptroller of the Currency' wherever it appears
  and inserting instead `the other appropriate Federal banking agency'; and
  (C) in the third sentence, by striking `disapproves' and inserting instead
  `recommends disapproval of';
  (3) in subsection (c)--
  (A) by striking `, or' at the end of paragraph (1) and inserting instead
  a semicolon;
  (B) by striking the period at the end of paragraph (2) and inserting instead
  `; or'; and
  (C) by inserting after paragraph (2) the following new paragraph:
  `(3) any acquisition or merger or consolidation if the appropriate Federal
  banking agency determines that the insured depository institution to be
  acquired or any other insured depository institution controlled by the
  company involved in the proposal is engaging in any unsafe and unsound
  practice or, following the transaction, will be in an unsafe and unsound
  condition.';
  (4)(A) by redesignating subsections (d) through (g) as subsections (f)
  through (i), respectively; and
  (B) by inserting after subsection (c) the following new subsections:
  `(d) EXPEDITED PROCEDURES FOR ACQUISITION OF ADDITIONAL BANKS BY ZONE 1
  `FINANCIAL SERVICES HOLDING COMPANIES-
  `(1) PROCEDURES-
  `(A) Upon receiving from a Zone 1 financial services holding company
  a complete application for approval under this section to acquire an
  insured depository institution, the appropriate Federal banking agency
  shall notify the other appropriate Federal banking agency, if any, and
  the appropriate supervisory authority of an interested State as provided
  for in subsection (b). Notwithstanding subsection (b)(1), the views and
  recommendations of the other appropriate Federal banking agency and the
  appropriate supervisory authority of an interested State, as appropriate,
  shall be submitted within 21 days of the date on which notice is given to
  them by the appropriate Federal banking agency.
  `(B) The appropriate Federal banking agency must approve or disapprove
  the application within 45 days after the date of receipt of such application.
  `(C) In the event of the failure of the appropriate Federal banking agency
  to act on any such application within 45 days after it has been received,
  the application shall be deemed to have been approved.
  `(D) If the appropriate Federal banking agency has found that an emergency
  exists requiring expeditious action, or that it must act immediately to
  prevent probable failure, or if the appropriate Federal banking agency
  receives a certification described in section 13(f)(8)(D) of the Federal
  Deposit Insurance Act (12 U.S.C. 1823(f)(8)(D)) from the other appropriate
  Federal banking agency or State chartering authority that a bank is in
  danger of closing, the appropriate Federal banking agency may waive or
  shorten the 45-day notice period with respect to any application for an
  acquisition received pursuant to this subsection.
  `(2) EXTENSION OF TIME FOR NOTICE AND HEARING- The 45-day period may be
  extended if the other appropriate Federal banking agency or the State
  supervisory authority recommends disapproval of an application subject
  to subparagraph (1) in writing based on its consideration of the factors
  listed in paragraphs (1), (2), or (3) of subsection (c). In the event
  that the other appropriate Federal banking agency or the State Supervisory
  authority recommends disapproval, the appropriate Federal banking agency
  shall follow the review period and procedures for notice and hearing
  contained in subsection (b)(1).
  `(3) GROUNDS FOR DISAPPROVAL- An application under this subsection shall
  be disapproved only--
  `(A) pursuant to subsections (c)(1), (c)(2) or (c)(3);
  `(B) if the financial services holding company does not qualify as, or
  would not continue to qualify as, a Zone 1 financial services holding
  company after consummation of the transaction; or
  `(C) if the appropriate Federal banking agency determines that the
  transaction would not be consistent with the convenience and needs of the
  community to be served.
  `(e) ACQUISITION INVOLVING DIVERSIFIED HOLDING COMPANIES- The appropriate
  Federal banking agency shall not permit any acquisition or merger or
  consolidation of a financial services holding company involving a diversified
  holding company or a company that seeks to become a diversified holding
  company unless any financial services holding company controlled by the
  diversified holding company is and remains in Zone 1, and any financial
  services holding company to be acquired, will be, upon consummation of the
  transaction, a Zone 1 financial services holding company. An application
  involving a proposal that meets the requirement of this subsection shall be
  reviewed in accordance with the procedures and standards under subsection
  (d).'.
  (b) CONFORMING AMENDMENTS- Section 3 of the Bank Holding Company Act of 1956
  (12 U.S.C. 1842), as amended by subsection (a), is further amended--
  (1) by striking `bank holding company' wherever it appears (except in the
  last sentence of subsection (a) as added by this section or as it appears
  in the reference to the `Bank Holding Company Act Amendments of 1970')
  and inserting instead--
  (A) in subsections (a)(1), (a)(2), (a)(4), (a)(5), and (d), and in
  provision (a)(A), `financial services holding company or diversified
  holding company'; and
  (B) in all other instances, `financial services holding company';
  (2)(A) by striking `Board' wherever it appears and inserting instead
  `appropriate Federal banking agency'; and
  (B) in subsection (a), by striking `Board's judgment' and inserting instead
  `judgment of the appropriate Federal banking agency'; and
  (3)(A) in subsection (a)(2), by striking `causes a bank' and inserting
  instead `causes an insured depository institution';
  (B) in subsection (a)(4)--
  (i) by striking `other than a bank' and inserting instead `other than an
  insured depository institution'; and
  (ii) by striking `assets of a bank' and inserting instead `assets of an
  insured depository institution';
  (C) in provision (a)(A), by striking `acquired by a bank' and inserting
  instead `acquired by an insured depository institution'; and
  (D) in provision (a)(B), by striking `in a bank' and inserting instead
  `in an insured depository institution'.
SEC. 203. INTERESTS IN NONBANKING ORGANIZATIONS.
  (a) INTERESTS IN NONBANKING ORGANIZATIONS- Section 4 of the Bank Holding
  Company Act of 1956 (12 U.S.C. 1843) is amended--
  (1) in subsection (a), by deleting the last two sentences;
  (2) in subsection (a)(2)--
  (A) by striking `, or in the case of a company which has been' and all that
  follows through `December 31, 1980' and inserting instead `or in the case
  of a company that becomes a financial services holding company as a result
  of enactment of the Financial Institutions Safety and Consumer Choice Act
  of 1991, on January 1, 1993';
  (B) in subparagraph (A)--
  (i) by striking `of banking or'; and
  (ii) by inserting at the end thereof the following: `, in the case of a
  foreign bank, the business of banking, where otherwise permitted through
  a branch or agency, as those terms are defined in section 1(b) of the
  International Banking Act of 1987 (12 U.S.C. 3101);';
  (C) in subparagraph (B), by striking `those permitted under' and all that
  follows through `under such paragraph' and inserting instead the following:
  `those permitted under subsection (c)(8)(A)(i) subject to all the conditions
  specified in such subsection or in any order or regulation issued by the
  appropriate Federal banking agency under such subsection; and
  `(C) those permitted under subsection (c)(16) provided that the financial
  services holding company is a company exclusively owned in a mutual form by
  holders of contracts of insurance issued by such financial services holding
  company, or is a company organized as a reciprocal inter-insurance exchange';
  (D) in the second sentence, by inserting a period after `practices' and
  striking the remainder of the sentence; and
  (E) by deleting the last sentence.
(3) in subsection (c)--
  (A) in paragraph (8)--
  (i) by redesignating clauses (i) and (ii) in each of subparagraphs (C),
  (D), and (E) as subclauses (I) and (II); respectively;
  (ii) by redesignating subparagraphs (B) through (G) as clauses (ii) through
  (vii), respectively;
  (iii) by redesignating subparagraph (A) as subparagraph (B)(i);
  (iv) in subparagraph (B)(vii) (as redesignated), by striking `subparagraph
  (A), (B), or (C)' and inserting instead `clauses (i), (ii), or (iii)';
  (v) by striking `shares of any company' and all that follows through
  `'provide' and inserting instead the following:
  `(A) shares of any company the activities of which the appropriate Federal
  banking agency, after due notice and opportunity for comment, has determined
  (by order or regulation) with the concurrence of the other appropriate
  Federal banking agency to be of a financial nature.
  `(i) Any activity that the Board of Governors of the Federal Reserve System
  has determined (by order or regulation that is effective on December 31,
  1992) to be closely related to banking and a proper incident thereto shall
  be deemed to be of a financial nature for purposes of this paragraph.
  `(ii) Any company that was a bank holding company on December 31,
  1992 and that, on January 1, 1993, becomes a financial services holding
  company as a result of the enactment of the Financial Institutions Safety
  and Consumer Choice Act of 1991, may without further approval under this
  paragraph retain shares of any company engaged in any activity described in
  clause (i) and continue to engage in any activity described in clause (i),
  provided that such company lawfully acquired the company or commenced the
  activity pursuant to approval that was granted by the Board of Governors
  of the Federal Reserve System prior to January 1, 1993, and was still in
  effect on December 31, 1992.
  `(iii) Notwithstanding clause (ii), no financial services holding company
  may pursuant to this paragraph engage in, or acquire or retain the shares
  of any company engaged in, underwriting and dealing in securities that a
  national bank may not underwrite or deal in under section 5136 of the Revised
  Statutes (12 U.S.C. 24 (Seventh)), except that a financial services holding
  company that received approval of the Board of Governors of the Federal
  Reserve System to underwrite and deal in such securities may continue
  to do so pursuant to this section subject to all the same conditions and
  limitations as required by the Board of Governors of the Federal Reserve
  System on the date of enactment of the Financial Institutions Safety and
  Consumer Choice Act of 1991 for a period of time not to exceed three years
  from the date of enactment of that Act.
  `(iv) Real estate investment, management, or development and the purchase
  and sale of real estate as principal or broker shall not be deemed to be
  of a financial nature except to the extent authorized pursuant to clause (i).
  `(v) Activities described in paragraph (16) shall not be deemed to be of
  a financial nature, except providing';
  (vi) by striking `except' as it appears immediately before subparagraph (B)
  (as redesignated); and
  (vii) by striking the last five sentences;
  (B) in paragraph (13), by striking `or' at the end thereof;
  (C) by inserting after paragraph (14) the following new paragraphs:
  `(15)(A) shares of any company engaged in any of the following activities
  subject to the provisions of subsection (1):
  `(i) underwriting, distributing, or dealing in securities;
  `(ii) organizing, sponsoring, controlling, or distributing the shares of
  any registered investment company pursuant to the Investment Company Act
  of 1940 (15 U.S.C. 80a-1 et seq.);
  `(iii) securities brokerage, private placement, or investment advisory
  activities; or
  `(iv) other securities activities permitted for brokers or dealers registered
  under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) or for
  investment advisers registered under the Investment Advisers Act of 1940
  (15 U.S.C. 80b-1 et seq.).
  `(B) ACTIVITIES PERMITTED FOR BANK AFFILIATES- A financial services holding
  company that acquires control of a securities affiliate under this paragraph
  shall not, after one year from the date of that acquisition, permit a bank
  or an insured depository institution that it controls to engage, directly
  or indirectly, in the United States in activities described in subparagraph
  (A) except to the extent that these activities are specifically authorized
  by statute for a national bank (other than underwriting and dealing in
  obligations issued by a State or political subdivision as permitted by law)
  or by a regulation or order promulgated by the Office of the Comptroller of
  the Currency pursuant to that statute before the date of enactment of the
  Financial Institutional Safety and Consumer Choice Act of 1991: Provided,
  however, That a financial services holding company acquiring control of a
  securities affiliate under this paragraph shall not permit, after one year
  from the date of that acquisition, an insured depository institution it
  controls to underwrite or deal in obligations issued by a State of political
  subdivision and shall permit these activities to be conducted only by a
  securities affiliate and not by an affiliate pursuant to subsection (c)(15).
  `(C) For purposes of this paragraph, a branch or agency of a foreign
  bank or a commercial lending company controlled by a foreign bank (as
  the terms `agency', `branch', `commercial lending company', and `foreign
  bank' are defined in section 1 of the International Banking Act of 1978
  (12 U.S.C. 3101)), shall be considered a bank.
  `(16)(A) Shares of any company that provides insurance as principal, agent,
  or broker subject to the provisions of subsection (l).
  `(B) A financial services holding company that acquires control of an
  insurance affiliate may not permit an insured depository institution it
  controls or a subsidiary thereof to provide insurance--
  `(i) as principal; or
  `(ii) as agent or broker, including insurance in which an affiliate acts
  as principal, agent or broker, unless the laws of the State in which the
  bank is located permit banks chartered by the State to provide insurance
  as agent or broker in that State and is permitted for national banks.
  `(C) Nothing in subparagraph (B) shall be construed to limit the ability
  of a financial services holding company to sell insurance pursuant to
  subsection (8).
  `(D) For purposes of this paragraph, a branch or agency of a foreign bank
  (as the terms `branch' and `agency' are defined in section 1(b) of the
  International Banking Act of 1978 (12 U.S.C. 3101)) shall be considered
  an insured depository institution.'; and
  (D) in subsection (c), by striking the last two sentences; and
  (4) by striking subsection (i) and inserting instead the following new
  subsections:
  `(i) NOTICE PROCEDURES FOR NONBANKING ACTIVITIES-
  `(1) GENERAL NOTICE PROCEDURE-
  `(A) NOTICE REQUIREMENT- No financial services holding company may engage
  in activities or acquire or retain ownership or control of the shares of
  a company engaged in qualified financial activities without providing the
  appropriate Federal banking agency with at least 45 days prior written
  notice of the proposed transaction or expansion.
  `(B) CONTENTS OF NOTICE- The notice submitted to the appropriate Federal
  banking agency shall contain such information as the appropriate Federal
  banking agency shall prescribe by regulation or by specific request in
  connection with a particular notice. The appropriate Federal banking agency
  may only require such information as may be relevant to the nature and scope
  of the proposed transaction and to the appropriate Federal banking agency's
  evaluation of the criteria provided for in paragraph (2) and subsection
  (j), as appropriate.
  `(C) PROCEDURE FOR AGENCY ACTION- A notice filed under this subsection shall
  be deemed to be approved by the appropriate Federal banking agency unless,
  prior to the expiration of 45 days from the receipt of a complete notice,
  the appropriate Federal banking agency issues an order setting forth the
  reasons for disapproval. The appropriate Federal banking agency may extend
  the 45-day period for an additional 30 days.
  `(D) EXPEDITED PROCEDURES FOR ZONE 1 FINANCIAL SERVICES HOLDING COMPANIES-
  `(i) COMMENCEMENT OF PERMISSIBLE NONBANKING ACTIVITIES- Notwithstanding
  subparagraph (A), any Zone 1 financial services holding company may commence
  through a subsidiary (other than a depository institution), any activity
  authorized by subsections (c)(15) and (c)(16) of section 4 of the Financial
  Services Holding Company Act of 1991 (12 U.S.C. 1843) or that has been
  determined by regulation by the appropriate Federal banking agency under
  section 4(c)(8) of such Act to be permissible for such a financial services
  holding company or subsidiary. The financial services holding company shall
  provide the appropriate Federal banking agency with written notice of the
  commencement of such activity not later than 30 days following such action.
  `(ii) ACQUISITIONS- Notwithstanding subparagraphs (B) and (C), a notice
  filed under this subsection by a Zone 1 financial services holding company
  that will qualify as a Zone 1 financial services holding company both before
  and after the proposed transaction shall be deemed to be approved unless
  prior to the expiration of 30 days after the receipt of a complete notice,
  the appropriate Federal banking agency issues an order setting forth the
  reasons for disapproval.
  `(E) Any proposal may proceed prior to the expiration of the disapproval
  period if the appropriate Federal banking agency issues a written notice
  of approval. The appropriate Federal banking agency may provide for no
  notice under this paragraph or notice for a shorter period of time with
  respect to particular activities or transactions.
  `(F) In the case of any proposal to engage in, or acquire or retain
  ownership or control of shares of any company engaged in, any activity
  pursuant to subsection (c)(8) that has not been previously approved by
  order or regulation, the appropriate Federal banking agency may extend
  the notice period under this subsection for an additional 90 days.
  `(2)(A) GENERAL STANDARDS FOR REVIEW- In connection with a notice under
  this subsection, the appropriate Federal banking agency may consider the
  following criteria--
  `(i) the managerial resources of the companies involved;
  `(ii) the adequacy of their financial resources, including their capital,
  giving consideration to the financial resources and capital of others
  engaged in similar activities;
  `(iii) any material adverse effect on the safety and soundness or financial
  condition of an affiliated depository institution; and
  `(iv) whether, in the case of notice for approval involving activities
  under subsection (c)(8), performance of the activity by a financial services
  holding company or a subsidiary of such company can reasonably be expected
  to produce benefits to the public, such as greater convenience, increased
  competition, or gains in efficiency, that outweigh possible adverse effects,
  such as undue concentration of resources, decreased or unfair competition,
  conflicts of interests, or unsound banking practices.
  `(B) REQUIREMENTS FOR DISAPPROVAL- The appropriate Federal banking agency
  shall not approve any proposed transaction under this subsection if the
  appropriate Federal banking agency determines that any insured depository
  institution controlled by the financial services holding company is engaging
  in any unsafe and unsound practice or is in an unsafe and unsound condition.
  `(C) STANDARDS FOR ZONE 1 FINANCIAL SERVICES HOLDING COMPANY- A notice
  filed under this section by a Zone 1 financial services holding company
  or any subsidiary (other than an insured depository institution of such
  company) may be disapproved only pursuant to subparagraph (B) or if the
  appropriate Federal banking agency determines that the financial services
  holding company is not a Zone 1 financial services holding company.
  `(j) ADDITIONAL CAPITAL REQUIREMENTS FOR NEW FINANCIAL ACTIVITIES- The
  appropriate Federal banking agency shall disapprove a notice to engage in,
  or acquire or retain the shares of a company engaged in, a new financial
  activity unless the company filing the notice is a Zone 1 financial services
  holding company, or the appropriate Federal banking agency finds that--
  `(1) the capital of each insured bank controlled by the company is above
  the mean capital level of the range for insured banks in Zone 2; and,
  `(2) the financial services holding company is making substantial progress
  toward qualifying as a Zone 1 financial services holding company.
  `(k) MAINTENANCE OF HIGHER CAPITAL- Any financial services holding company
  that--
  `(1) engages, directly or indirectly, in any new financial activity,
  or controls any company engaged in any such activity, and
  `(2) fails to qualify as a Zone 1 financial services holding company within
  the time period specified by the appropriate Federal banking agency,
shall be subject to the provisions of section 35(d)(6) of the Federal Deposit
Insurance Act.
  `(l) LIMITATIONS ON ACTIVITIES OF FINANCIAL SERVICES HOLDING COMPANIES-
  `(1) DISCLOSURE- A securities affiliate, an insurance affiliate, or an
  affiliate engaged in securities or insurance activities authorized pursuant
  to subsection (c)(8) shall each--
  `(A) prominently disclose in writing to its customers that such affiliates
  are not insured depository institutions and are separate from any affiliated
  depository insured institution;
  `(B) prominently disclose in writing to its customers that securities or
  insurance products sold, offered, or recommended by such affiliates are not
  deposits, are not insured by the Federal Deposit Insurance Corporation,
  are not guaranteed by any affiliated insured depository institutions,
  and are not otherwise obligations of such insured depository institutions
  unless such is the case; and
  `(C) obtain in acknowledgement of receipt of the disclosures including
  the date of receipt and the customer's name, address, and account number.
  `(2) REGULATIONS-
  `(A) The Securities and Exchange Commission is authorized to adopt
  regulations in consultation with the appropriate Federal banking agencies
  pursuant to this subsection regarding disclosures by securities affiliates
  and affiliates engaged in securities activities pursuant to subsection
  (c)(8);
  `(B) The appropriate Federal banking agencies are authorized to adopt
  regulations pursuant to this subsection regarding disclosures by insurance
  affiliates or by any affiliates engaged in activities pursuant to subsection
  (c)(8) (other than securities activities).
  `(3) DISCLOSURE OF CUSTOMER INFORMATION- The appropriate Federal banking
  agency is authorized to issue regulations limiting disclosures of
  nonpublic customer information between an insured depository institution
  and affiliates thereof, including an evaluation of the creditworthiness
  of an issuer or other customer of that insured depository institution or
  subsidiary thereof or financial, securities, or insurance affiliate.
  `(4) AUTHORITY TO IMPOSE ADDITIONAL SAFEGUARDS- The appropriate Federal
  banking agency may by regulation or order adopt limitations or restrictions
  on the extension of credit or other similar financial support, the
  purchase or sale of assets, or the issuance of guarantees, letters of
  credit, or other credit facilities to or for the benefit of an affiliate
  engaged in any new financial activity or to customers of such affiliate
  by an affiliate that is an insured depository institution controlled by
  the financial services holding company. Such restrictions and limitations
  shall be adopted as the agency deems appropriate to address potential
  adverse effects, including unfair competition, conflicts of interest, and
  unsafe banking practices. Transactions or similar arrangements between an
  insured depository institution and the customers of an affiliate engaged
  in such activities that are both controlled by the same financial services
  holding company shall not be used to evade any restrictions or limitations
  imposed under this paragraph.
  `(m) EXCEPTION FOR CERTAIN NONBANKING INVESTMENTS-
  `(1) IN GENERAL- Notwithstanding subsection (a), a financial services
  holding company may own or control shares of any company engaged in
  activities not authorized pursuant to this section if--
  `(A) the shares were acquired before January 1, 1993, and the aggregate
  investment in all such shares does not exceed 5 per centum of the financial
  services holding company's capital and surplus on a consolidated basis; or
  `(B) the shares are acquired and held by a securities affiliate as part of a
  bona fide underwriting or investment banking activity if such shares are held
  only for such period of time as will permit the sale thereof on a reasonable
  basis consistent with the nature of such investment banking activity.
  `(2) LIMITATIONS- The limitations in section 5(c) shall apply to the
  companies described in paragraphs (1)(A) and (1)(B).
  `(3) DIVESTITURE IN CASE OF LOSS OF EXEMPTION-
  `(A) If any financial services holding company loses the exemption provided
  in paragraph (1)(A), such company shall divest ownership and control of
  all of the shares of such company within 180 days after the loss of such
  exemption.
  `(B) If any financial services holding company loses the exemption provided
  in paragraph (1)(B) the financial services holding company shall divest
  ownership and control of such shares within 15 days of the loss of the
  exemption'.'
  (b) CONFORMING AMENDMENTS- Section 4 of the Bank Holding Company Act
  (12 U.S.C. 1843), as amended by this section, is further amended--
  (1) by striking `bank holding company' wherever it appears except in
  subsections (c)(1), (c)(8)(A)(ii), and (c)(8)(B)(vii) and inserting instead
  `financial services holding company';
  (2) by striking `Board' wherever it appears except in subsections
  (c)(8)(A)(ii), (c)(8)(B)(iv), (c)(8)(B)(vii) and (c)(13) and inserting
  instead `appropriate Federal banking agency';
  (3) in subsection (c)(1)(A), by striking `banking subsidiary' and inserting
  instead `insured depository institution';
  (4) in subsections (c)(1)(C) and (c)(1)(D), by striking `banking
  subsidiaries' wherever it appears and inserting instead `insured depository
  institution'; and
  (5) in subsection (c)(4), by striking `acquired by a bank' and inserting
  instead `acquired by an insured depository institution'.
SEC. 204. DIVERSIFIED HOLDING COMPANIES.
  Section 5 of the Bank Holding Company Act of 1956 (12 U.S.C. 1844) is
  amended to read as follows:
`SEC. 5. DIVERSIFIED HOLDING COMPANIES.
  `(a) CAPITAL REQUIREMENTS FOR ACQUISITION OF FINANCIAL SERVICES HOLDING
  COMPANIES- No diversified holding company may acquire control of a financial
  services holding company unless, after the acquisition, such company is
  a Zone 1 financial services holding company.
  `(b) NOTICE PROVISION FOR DIVERSIFIED HOLDING COMPANIES- A diversified
  holding company that acquires the shares of a financial affiliate, shall
  file notice with the appropriate Federal banking agency 30 days after the
  commencement of such activity or the acquisition of such shares.
  `(c) LIMITATIONS ON DIVERSIFIED HOLDING COMPANIES AND THEIR AFFILIATES-
  `(1) Except in the case of a foreign bank, no financial services holding
  company or any of its subsidiaries shall--
  `(A) extend credit in any manner to an affiliated diversified holding
  company or any of its affiliates not otherwise under the control of a
  financial services holding company;
  `(B) purchase for its own account financial assets or any securities of
  an affiliated diversified holding company or any of its affiliates not
  otherwise under the control of a financial services holding company;
  `(C) issue a guarantee, acceptance or letter of credit, including an
  endorsement or standby letter of credit, to an affiliated diversified
  holding company or any of its affiliates not otherwise under the control
  of a financial services holding company; or
  `(D) extend credit to any customer of the diversified holding company or
  any of its affiliates except on an arms-length basis in compliance with
  section 23B of the Federal Reserve Act (12 U.S.C. 371c-1).
  `(2) To the extent that activities are not prohibited under paragraph
  (1), the restrictions and limitations issued by the appropriate Federal
  banking agencies pursuant to section 4(1) shall apply to diversified holding
  companies and their financial affiliates that are not otherwise controlled
  by an affiliated financial services holding company in the same manner and
  to the same extent as if the diversified holding company were a financial
  services holding company.
  `(3) A diversified holding company and any of its affiliates that are engaged
  in the purchase and sale of real property, as principal, agent or broker,
  may not market such service jointly with any affiliated insured depository
  institution unless such insured depository institution is permitted under
  State law to engage in such purchase or sale of property.
  `(4) A diversified holding company that either directly or through an
  affiliate (not otherwise under the control of an affiliated financial
  services holding company) provides insurance as principal, agent or
  broker, may not permit an affiliated insured depository institution or
  a subsidiary thereof to provide insurance as agent or broker, including
  insurance in which the diversified holding company or such affiliate acts
  as principal, agent or broker, unless the laws of the State in which the
  insured depository institution is located permit depository institutions
  chartered by such State to provide insurance as agent or broker in that
  State and as permitted for national banks.
  `(5) In the case of a foreign bank that is a financial services holding
  company, the appropriate Federal banking agency shall apply the restrictions
  in paragraph (1) to the United States affiliates of such foreign bank and
  the foreign bank in the same manner and to the same extent as they apply
  to domestic financial services holding companies and their affiliates.'.
SEC. 205. ADMINISTRATION.
  The Bank Holding Company Act of 1956, is amended by inserting after section
  5 the following new section:
`SEC. 6. ADMINISTRATION.
  `(a) REGISTRATION OF FINANCIAL SERVICES HOLDING COMPANY- Within 180
  days after becoming a financial services holding company, each financial
  services holding company shall register with the appropriate Federal banking
  agency on forms prescribed by the appropriate Federal banking agency, which
  shall include such information with respect to the financial condition and
  operations, management, and inter-company relationships of the financial
  services holding company and its subsidiaries, and related matters, as
  the appropriate Federal banking agency may deem necessary or appropriate
  to carry out the purposes of this Act. The appropriate Federal banking
  agency may, in its discretion, extend the time within which a financial
  services holding company shall register and file the requisite information.
  `(b) REGULATIONS AND ORDERS-
  `(1)(A) Except as provided in subparagraph (B), the appropriate Federal
  banking agency is authorized to issue such regulations and orders as may
  be necessary to enable it to administer and carry out the purposes of
  this Act and prevent evasions thereof: Provided, however, That any capital
  requirements for diversified holding companies or financial services holding
  companies shall only be imposed pursuant to subsection (e) of this section
  or section 35 of the Federal Deposit Insurance Act.
  `(B) Any capital requirements for diversified holding companies or financial
  services holding companies shall be imposed only pursuant to subsection
  (c) or section 35 of the Federal Deposit Insurance Act.
  `(2) NOTICE AND OBJECTION-
  `(A) The appropriate Federal banking agencies shall jointly propose and
  issue regulations for the purpose of implementing this Act. Such regulations
  shall be adopted and published as final before January 1, 1993.
  `(B) Following issuance of the regulations described in subparagraph (A),
  the appropriate Federal banking agencies shall provide at least 60 days
  notice to each other with respect to the proposed adoption, modification,
  or rescission of any rule, interpretation, or policy statement relating
  to diversified or financial services holding companies and their nonbank
  affiliates.
  `(C)(i) The reviewing appropriate Federal banking agency may, within 60
  days, submit comments or written objection to the proposing appropriate
  Federal banking agency.
  `(ii) The proposing appropriate Federal banking agency may not proceed to
  adopt, modify, or rescind any such rule, interpretation, or policy statement
  if such agency receives written objection from the reviewing appropriate
  Federal banking agency within 60 days after providing notice to such agency
  and such objection is not subsequently withdrawn by the reviewing agency.
  `(c) RECORDS, REPORTS AND EXAMINATIONS-
  `(1) RECORDS AND REPORTS-
  `(A) RECORDS RELATING TO DIVERSIFIED HOLDING COMPANIES- A financial services
  holding company shall obtain such information and make and keep such
  records as the appropriate Federal banking agency may prescribe concerning
  the financial services holding company's policies and procedures for
  monitoring and controlling financial and operational risks to its insured
  depository institution subsidiaries from the activities of the diversified
  holding company or its financial affiliates that are not controlled by
  the financial services holding company. Such records shall describe the
  activities conducted by the diversified holding company and such financial
  affiliates that are likely to have a material impact on the financial or
  operational condition of the insured depository institution subsidiaries
  of the financial services holding company, and the customary sources of
  capital and funding of such activities.
  `(B) REPORTS OF FINANCIAL SERVICES HOLDING COMPANY AND DEPOSITORY
  INSTITUTIONS- The appropriate Federal banking agency from time to time may
  require the financial services holding company and its insured depository
  institution subsidiaries to file reports under oath to keep it informed as to
  whether the provisions of this Act and such regulations and orders issued
  thereunder have been complied with. With regard to insured depository
  institutions controlled by a financial services holding company, the
  appropriate Federal banking agency shall consult with and, to the extent
  possible, use reports obtained by, the other appropriate Federal banking
  agency for such institutions.
  `(C) REPORTS OF FINANCIAL SERVICES HOLDING COMPANIES AND AFFILIATES- The
  appropriate Federal banking agency may require a financial services holding
  company, and any affiliate it controls, to file reports if such agency
  reasonably believes that the activities or financial condition of such
  holding company or affiliate is likely to have a material impact on the
  financial or operational condition of any insured depository institution
  subsidiary (and a subsidiary thereof) of the financial services holding
  company. The appropriate Federal banking agency shall consult with and,
  to the extent possible, use reports obtained by, the functional regulator
  of the financial services holding company or affiliate to obtain the
  necessary information.
  `(D) REPORTS OF DIVERSIFIED HOLDING COMPANIES AND FINANCIAL AFFILIATES-
  The appropriate Federal banking agency may require a diversified holding
  company and any financial affiliate not controlled by a financial services
  holding company to file reports if such agency reasonably believes
  that the activities or financial condition of such diversified holding
  company or financial affiliate is likely to have a material impact on the
  financial or operational condition of the insured depository institution
  subsidiaries (and subsidiaries thereof) of the financial services holding
  company. The appropriate Federal banking agency shall consult with and,
  to the extent possible, use reports obtained by, the functional regulator
  of the diversified holding company or financial affiliate to obtain the
  necessary information.
  `(E) RECIPROCAL ACCESS- The functional regulator of a diversified holding
  company or a financial affiliate may have access on a reciprocal basis
  to reports, other than examination reports, obtained by the appropriate
  Federal banking agency under this subsection with respect to an affiliated
  insured depository institution or financial services holding company, if the
  functional regulator reasonably believes that the activities or financial
  condition of such institution or financial services holding company is
  likely to have a material impact on the financial or operational condition
  of the financial affiliate. The other appropriate Federal banking agency of
  an insured depository institution may have access on a reciprocal basis to
  reports, other than examination reports, obtained by the appropriate Federal
  banking agency under this subsection with respect to any affiliate of the
  insured depository institution, if the other appropriate Federal banking
  agency reasonably believes that the activities or financial condition
  of such affiliate or company is likely to have a material impact on the
  insured depository institution.
  `(F) RESTRICTION ON DISCLOSURE- Any reports obtained from another agency
  or regulator under this subsection shall not be disclosed to the public by
  the recipient agency or regulator and shall not be disclosed to any other
  governmental agency or to the Congress except as otherwise permitted
  by law. Reports obtained from another agency or regulator under this
  subsection may be used only to carry out the purposes of this subsection
  or as otherwise permitted by law.
  `(2) EXAMINATIONS-
  `(A) FINANCIAL SERVICES HOLDING COMPANIES AND DEPOSITORY INSTITUTIONS- The
  appropriate Federal banking agency may make on-site examinations of each
  financial services holding company, its insured depository institution
  subsidiaries (and subsidiaries thereof) and, subject to subparagraphs
  (B) through (E), any of its other affiliates. Where appropriate, the
  appropriate Federal banking agency shall consult with, and to the extent
  possible, use the report of examination made by the other appropriate
  Federal banking agency or the appropriate State bank supervisory authority.
  `(B) FINANCIAL SERVICES HOLDING COMPANIES AND AFFILIATES- The appropriate
  Federal banking agency may examine the financial services holding company
  and any affiliate it controls--
  `(i) to determine whether such holding company or affiliate is engaged
  in a particular transaction that would violate, directly or indirectly,
  the restrictions prescribed in sections 4(1) and 5(c);
  `(ii) to determine compliance with sections 35(f) and 35(g) of the Federal
  Deposit Insurance Act, as applicable; or
  `(iii) if the agency reasonably believes that such holding company or
  affiliate is engaged in a particular transaction or course of conduct
  that directly or indirectly may constitute a material risk to any insured
  depository institution subsidiary (or a subsidiary thereof).
The appropriate Federal banking agency shall consult with and, to the extent
possible, use the report of examinations made by the functional regulator,
if any, of an affiliate to obtain the necessary information. If such reports
do not contain the necessary information, the appropriate Federal banking
agency shall request the functional regulator to conduct an examination
to obtain such information. In the event the functional regulator does not
conduct an examination within a reasonable period of time, the appropriate
Federal banking agency may conduct the examination, but shall notify the
functional regulator before doing so.
  `(C) DIVERSIFIED HOLDING COMPANIES AND FINANCIAL AFFILIATES- The appropriate
  Federal banking agency may examine the diversified holding company and any
  financial affiliate not controlled by a financial services holding company--
  `(i) to determine whether such holding company or affiliate is engaged
  in a particular transaction that would violate, directly or indirectly,
  the restrictions prescribed in sections 4(l) and 5(c);
  `(ii) to determine compliance with sections 35(f) and 35(g) of the Federal
  Deposit Insurance Act, as applicable; or
  `(iii) if the agency reasonably believes that such holding company or
  affiliate is engaged in a particular transaction or course of conduct
  that directly or indirectly may constitute a material risk to any insured
  depository institution subsidiary (or a subsidiary thereof).
The appropriate Federal banking agency shall consult with and, to the extent
possible, use the report of examinations made by the functional regulator,
if any, of the diversified holding company or financial affiliate to obtain
the necessary information. If such reports do not contain the necessary
information, the appropriate Federal banking agency shall request the
functional regulator to conduct an examination to obtain such information. In
the event the functional regulator does not conduct an examination within a
reasonable period of time, the appropriate Federal banking agency may conduct
the examination, but shall notify the functional regulator before doing so.
  `(D) RECIPROCAL EXAMINATION OF INSURED DEPOSITORY INSTITUTION AFFILIATES
  CONTROLLED BY FINANCIAL SERVICES HOLDING COMPANIES- The functional
  regulator for a financial affiliate may examine an insured depository
  institution affiliate if the regulator reasonably believes that such
  institution is engaged in a particular transaction or course of conduct
  that directly or indirectly may constitute a material risk to the financial
  affiliate. The functional regulator shall consult with, and, to the extent
  possible, use the report of examinations made by, the appropriate Federal
  banking agency to obtain the necessary information. If such report does
  not contain the necessary information, the functional regulator shall
  request the appropriate Federal banking agency to conduct an examination
  to obtain such information. In the event the appropriate Federal banking
  agency does not conduct an examination within a reasonable period of time,
  the functional regulator may conduct the examination and shall notify the
  appropriate Federal banking agency before doing so.
  `(E) NONFINANCIAL AFFILIATES OF A DIVERSIFIED HOLDING COMPANY- The
  appropriate Federal banking agency may examine any of the nonfinancial
  affiliates of a diversified holding company in order to determine whether
  such affiliate is engaged in a particular transaction that would violate,
  directly or indirectly, the restrictions prescribed in section 5(c).
  `(F) COST OF EXAMINATIONS- The cost of examinations of a diversified holding
  company and any affiliate of a diversified holding company not controlled
  by a financial services holding company shall be assessed against, and
  paid by, the diversified holding company or the affiliate, whichever is
  the subject of the examination. The cost of examinations of a financial
  services holding company and its subsidiaries shall be assessed against,
  and paid by, the financial services holding company.
  `(d) TRANSFER OF RECORDS- No agency or department transferring records
  as provided by this section shall be deemed to have waived any privilege
  applicable to those records under law.
  `(e) REPORT TO THE CONGRESS; RECOMMENDATIONS- Each appropriate Federal
  banking agency shall include in its annual report to the Congress, the
  results of the administration of this Act, stating what, if any, substantial
  difficulties have been encountered in carrying out the purposes of this Act,
  and any recommendations as to changes in the law which in the opinion of
  the appropriate Federal banking agency would be desirable.
  `(f) CEASE AND DESIST AUTHORITY; TERMINATION OF ACTIVITIES OR OWNERSHIP
  OR CONTROL OF NONBANK SUBSIDIARIES CONSTITUTING SERIOUS RISK-
  `(1) In addition to any other authority of the appropriate Federal banking
  agency, the appropriate Federal banking agency may take any action described
  in paragraph (2) if it has reasonable cause to believe that--
  `(A) any financial affiliate of an insured depository institution, or
  any other affiliate controlled by a financial services holding company,
  is engaged in activities in such a manner as to constitute a serious risk
  to the financial safety, soundness, or stability of such insured depository
  institution; or
  `(B) the diversified holding company, the financial services holding
  company controlled by the diversified holding company, or any affiliate
  is in significant danger of default and either poses a significant risk to
  the liquidity or solvency of an affiliated insured depository institution
  or is likely to cause a significant dissipation of its assets or earnings.
  `(2) Subject to paragraph (1), the appropriate Federal banking agency--
  `(A) may institute cease and desist proceedings or issue a temporary order
  requiring the diversified holding company or financial services holding
  company controlled by the diversified holding company or affiliate thereof
  engaged in qualified financial activities to cease and desist from such
  activity and take affirmative action to prevent significant dissipation
  of assets or earnings, of an insured depository institution as prescribed
  in section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818);
  `(B) may institute cease and desist proceedings or issue a temporary order
  requiring a financial services holding company described in paragraph
  (1)(B) to increase its capital; and
  `(C) in the event the diversified holding company or the financial
  services holding company controlled by the diversified holding company
  or the affiliate thereof does not comply with the order issued pursuant
  to subparagraph (A) or (B), may order the diversified holding company or
  such financial services holding company or any such affiliate, after due
  notice and opportunity for hearing and after considering the views of the
  insured depository institution's associated Federal banking agency and
  the appropriate State authority in the case of a State-insured depository
  institution, to terminate (within 120 days, or such longer period as the
  appropriate Federal banking agency may direct in unusual circumstances)
  its ownership or control of any such affiliate either by sale to any
  third party or by distribution of the shares of the affiliate to the
  shareholders of the diversified holding company or financial services
  holding company. Such distribution shall be pro rata with respect to all
  of the shareholders of the distributing diversified holding company or
  financial services holding company, and such holding company shall not
  make any charge to its shareholders arising out of such a distribution.
  `(3) The appropriate Federal banking agency may in its discretion apply
  to the United States district court within the jurisdiction of which the
  principal office of the holding company is located, for the enforcement of
  any effective and outstanding order issued under this section, and such
  court shall have jurisdiction and power to order and require compliance
  therewith, but except as provided in section 9 of this Act, no court
  shall have jurisdiction to effect by injunction or otherwise the issuance
  or enforcement of any notice or order under this section, or to review,
  modify, suspend, terminate, or set aside any such notice or order.
  `(g)(1) In the course of or in connection with an application, examination,
  investigation or other proceeding under this Act, the appropriate Federal
  banking agency, or any member or designated representative thereof, including
  any person designated to conduct any hearing under this Act, shall have the
  power to administer oaths and affirmations, to take or cause to be taken
  depositions, and to issue, revoke, quash, or modify subpoenas including
  witness subpoenas and subpoenas duces tecum; and the appropriate Federal
  banking agency is empowered to make rules and regulations to effectuate
  the purposes of this subsection.
  `(2) The attendance of witnesses and the production of documents provided
  for in this subsection may be required from any place in any State or in any
  territory or other place subject to the jurisdiction of the United States at
  any designated place where such proceeding is being conducted. A subpoena
  issued under this section may be served upon any person who is not found
  within the territorial jurisdiction of any court in the United States in
  such manner as the Federal Rules of Civil Procedure prescribe for service
  of process in a foreign country, except that a subpoena to be served on a
  person who is not to be found in the United States may be issued only on
  the prior approval of the appropriate Federal banking agency. Any party to
  proceedings under this Act may apply to the United States District Court
  for the District of Columbia, or the United States district court for the
  judicial district or the United States court in any territory in which
  such proceeding is being conducted or where the witness resides or carries
  on business, for the enforcement of any subpoena or subpoena duces tecum
  issued pursuant to this subsection, and such court shall have jurisdiction
  and power to order and require compliance therewith. Witnesses subpoenaed
  under this subsection shall be paid the same fees and mileage that are
  paid witnesses in the district courts of the United States.
  `(3) Any service required under this subsection in any State or in any
  territory or other place subject to the jurisdiction of the United States may
  be made by registered mail, or in such other manner reasonably calculated
  to give actual notice as the appropriate Federal banking agency may by
  regulation or otherwise provide, and all process in any such case may be
  served in the judicial district wherein such person is an inhabitant or
  transacts business or wherever such person may be found. Any court having
  jurisdiction of any proceeding instituted under this subsection may allow
  to any such party such reasonable expenses and attorneys' fees as it deems
  just and proper.
  `(4) Any person who willfully fails or refuses to attend and testify or
  to answer any lawful inquiry or to produce books, papers, correspondence,
  memoranda, contracts, agreements, or other records in obedience to the
  subpoena of the appropriate Federal banking agency shall be guilty of a
  misdemeanor and, upon conviction, shall be subject to a fine of not more than
  $1,000 or to imprisonment for a term of not more than one year or both.'.
SEC. 206. RESERVATION OF RIGHTS TO STATES; PRE-EMPTION OF ANTI-AFFILIATION
PROVISIONS.
  Section 7 of the Bank Holding Company Act of 1956 (12 U.S.C. 1846) is
  amended to read as follows:
`SEC. 7. RESERVATION OF RIGHTS TO STATES; ANTI-AFFILIATION PROVISIONS.
  `(a) No provision of this Act shall be construed as preventing any State from
  exercising such powers and jurisdiction which it now has or may hereafter
  have with respect to companies, banks, diversified holding companies,
  financial services holding companies, and subsidiaries thereof.
  `(b)(1) Notwithstanding subsection (a), no provision of law of any State,
  including, without limitation, any provision relating to the business of
  insurance, banking (including any law relating to savings associations as
  that term is defined in section 3 of the Federal Deposit Insurance Act
  (12 U.S.C. 1813), real estate, securities, finance, retail or other law
  regulating the provisions of financial or other services, shall prevent or
  impede or shall be interpreted or applied by any administrative, executive,
  or judicial authority with the purpose or effect of preventing or impeding--
  `(A) any insured depository institution, any affiliate thereof or any
  representative of any such institution or affiliate thereof from being
  acquired, owned or controlled by, or from being affiliated in any manner
  with, any company which is or becomes a financial services holding company
  or with any affiliate of such company because of the types of activities
  engaged in directly or indirectly by such insured depository institution
  or any affiliate thereof, or by any representative of any such institution
  or affiliate thereof or because of the types of activities engaged in
  directly or indirectly by any such company or affiliate thereof, or by
  any representative of any such company or affiliate thereof;
  `(B) any company which is or becomes a financial services holding company or
  affiliate thereof, or any representative of any such company or affiliate
  thereof, from acquiring, owning, or controlling or being affiliated in any
  way with any insured depository institution or affiliate thereof because of
  the types of activities engaged in directly or indirectly by any such company
  or affiliate thereof, or any representative of any such company or affiliate
  thereof, or because of the types of activities engaged in directly or
  indirectly by any such insured depository institution or affiliate thereof,
  or by any representative of such institution or affiliate thereof; or
  `(C) any insured depository institution or any affiliate thereof, or any
  representative of any such institution or affiliate thereof, from offering
  or marketing products or services of any affiliated financial services
  holding company or affiliate thereof or from having its products or services
  offered or marketed by any affiliate thereof, or by any representative of
  such company or affiliate--
  `(i) except as provided in sections 4(c)(16)(B) and 5(c)(3) and 5(c)(4); and
  `(ii) except with regard to offering and marketing insurance pursuant to
  section 4(c)(8).
Nothing in this subparagraph shall exempt any company which is or becomes
a financial services holding company or an affiliate thereof, or any
representative of any such company or affiliate, from complying with, or shall
annul, alter, or affect the application of, the laws of any State relating
to the examination, supervision, or regulation of providers of financial
services or the protection of consumers, except to the extent that the intent,
purpose or effect of those laws is inconsistent with this subsection or with
the purposes of this Act and then only to the extent of the inconsistency.
  `(2) For purposes of this subsection, an insured depository institution
  includes a branch, agency, or commercial lending company subsidiary of a
  foreign bank, as those terms are defined in section 1(b) of the International
  Banking Act of 1978 (12 U.S.C. 3101).'.
SEC. 207. PENALTIES.
  Section 8 of the Bank Holding Company Act of 1956 (12 U.S.C. 1847)
  is amended--
  (1) by striking `the Board' wherever it appears and inserting instead
  `an appropriate Federal banking agency';
  (2) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company';
  (3) in subsection (a)(2), by striking `profit significantly' and inserting
  instead `obtain anything of value';
  (4) in section (a), by striking `Every officer, director, agent' and all
  that follows in the undesignated last paragraph;
  (5) in subsection (b)(1), by striking `forfeit and'; and
  (6) in paragraphs (1) through (4) of subsection (d), by inserting `civil'
  before `penalty'.
SEC. 208. CONFORMING AMENDMENTS TO JUDICIAL REVIEW PROVISION.
  Section 9 of the Bank Holding Company Act of 1956 (12 U.S.C. 1848)
  is amended--
  (1) by striking `the Board' wherever it appears and inserting instead
  `an appropriate Federal banking agency'; and
  (2) by striking `Board's order' and inserting instead `order of an
  appropriate Federal banking agency'.
SEC. 209. ANTITRUST REVIEW.
  (a) ANTITRUST REVIEW- Section 11(b)(1) of the Bank Holding Company Act
  (12 U.S.C. 1849(b)(1)) is amended by inserting `, except that such period
  may be eliminated or reduced with the concurrence of the Attorney General'
  before the period at the end of the third sentence.
  (b) CONFORMING AMENDMENTS- Section 11 of the Bank Holding Company Act of
  1956 (12 U.S.C. 1849) is further amended--
  (1) by striking `Board' wherever it appears and inserting instead
  `appropriate Federal banking agency';
  (2) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company'; and
  (3) in subsection (b)(1)--
  (A) by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision';
  (B) by striking `Board's approval' and inserting instead `approval of the
  appropriate Federal banking agency'; and
  (C) by striking `failure of a bank' and inserting instead `failure of an
  insured depository institution'.
  (c) AMENDMENT TO THE FEDERAL DEPOSIT INSURANCE ACT- Section 18(c)(6) of the
  Federal Deposit Insurance Act (12 U.S.C. 1828(c)(6)) is amended by inserting
  `, except that such period may be eliminated or reduced with the concurrence
  of the Attorney General' before the period at the end of the third sentence.
SEC. 210. TECHNICAL AMENDMENT.
  Section 1 of the Bank Holding Company Act of 1956 (12 U.S.C. 1841 note)
  is amended by striking `Bank Holding Company Act of 1956' and inserting
  instead `Financial Services Holding Company Act of 1991'.
SEC. 211. EFFECTIVE DATE.
  Sections 201 through 210 shall become effective on January 1, 1993, except
  that section 4(c)(8)(A)(ii) of the Bank Holding Company Act of 1956, as
  added by section 203(a)(3) of this title, shall be effective on the date
  of enactment of this Act.
SEC. 212. APPLICATION OF THE LIMITATIONS ON TYING ARRANGEMENTS AND INSIDER
LENDING TO FINANCIAL SERVICES HOLDING AND DIVERSIFIED HOLDING COMPANIES.
  (a) DEFINITIONS- Section 106(a) of the Bank Holding Company Act Amendments
  of 1970 (12 U.S.C. 1971) is amended by deleting `bank holding company'
  and inserting instead `financial services holding company and diversified
  holding company'.
  (b) CERTAIN TYING ARRANGEMENTS PROHIBITED- Section 106(b) of the Bank
  Holding Company Act Amendments of 1970 (12 U.S.C. 1972(b)) is amended--
  (1) by redesignating paragraph (2) as paragraph (3); and
  (2) by inserting after paragraph (1) the following:
  `(2)(A) A financial services holding company and any subsidiary (other than
  a bank) of such holding company and a diversified holding company and any
  subsidiary (other than a bank) of such holding company shall not in any
  manner extend credit, lease, or sell property of any kind, or furnish any
  service or fix or vary the consideration for any of the foregoing, on the
  condition or requirement that the customer shall obtain credit, property
  or service from an affiliated bank except as provided in subparagraph (B).
  `(B) A financial services holding company and any subsidiary (other than
  a bank) of such holding company and a diversified holding company and
  any subsidiary (other than a bank) of such holding company may vary the
  consideration--
  `(i) for any extension of credit, lease or sale of property of any kind,
  or the furnishing of any service on the condition or requirement that the
  customer shall obtain some credit, property, or service from an affiliated
  bank provided that the products or services offered to and obtained by the
  customer are also separately available to such customer on substantially
  the same terms, including interest rate, collateral, and cost, as those
  prevailing at the time for comparable transactions that are not subject
  to such conditions or requirements; or
  `(ii) for any loan, discount, deposit, or trust service on the condition
  or requirement that the customer shall obtain a loan, discount, deposit
  or trust service from an affiliated bank provided that such products or
  services described in this subparagraph are also separately available to
  such customer.
  `(C) The Board may adopt such regulations to carry out the purposes
  of this paragraph which may include such restrictions or limitations
  regarding subparagraph (B) as it deems necessary or appropriate in the
  public interest.'.
  (c) INSIDER LOANS- Sections 22(h)(6) (C) and (D) of the Federal Reserve Act
  (12 U.S.C. 375b(6) (C) and (D)) are each amended--
  (1) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company and diversified holding
  company'; and
  (2) by striking `Bank Holding Company Act of 1956' wherever it appears
  and inserting instead `Financial Services Holding Company Act of 1991'.
SEC. 213. PROVISIONS EXEMPTING FINANCIAL SERVICES HOLDING COMPANIES FROM
THE SAVINGS AND LOAN HOLDING COMPANY ACT.
  Section 10(a) of the Home Owners' Loan Act (12 U.S.C. 1467a(a)) is amended--
  (1) in paragraph (1), by amending subparagraph (D) to read as follows:
  `(D) SAVINGS AND LOAN HOLDING COMPANY-
  `(i) Except as provided in clause (ii), the term `savings and loan holding
  company' means any company which directly or indirectly controls a savings
  association or controls any other company which is a savings and loan
  holding company.
  `(ii) No company which is a financial services holding company or a
  diversified holding company registered under and subject to the provisions
  of the Financial Services Holding Company Act of 1991, other than a company
  described in section 4(f) of such Act (12 U.S.C. 1843(f)), and no company
  controlled by such company, shall be deemed to be a savings and loan
  holding company.'; and
  (2) by inserting after paragraph (4) the following new paragraph:
  `(5) EXEMPTION FOR FINANCIAL SERVICES HOLDING COMPANIES AND DIVERSIFIED
  HOLDING COMPANIES- The provisions of this section shall not apply to any
  company that is a financial services holding company or a diversified holding
  company registered under, and subject to, the provisions of the Financial
  Services Holding Company Act of 1991, other than companies described in
  section 4(f) of such Act (12 U.S.C. 1843(f)), or to any company directly or
  indirectly controlled by such company (other than a savings association).'.
Subtitle B--Financial Activities of National Banks
SEC. 221. AMENDMENTS TO THE BANKING ACT OF 1933.
  (a) Paragraph Seventh of section 5136 of the Revised Statutes (12 U.S.C. 24
  (Seventh)) is amended by adding at the end thereof the following: `If an
  association is not an affiliate of a securities affiliate (as the terms
  `affiliate' and `securities affiliate' are defined in section 2 of the
  Financial Services Holding Company Act of 1991 (12 U.S.C. 1841)), the
  limitations and restrictions contained in this paragraph as to dealing in,
  underwriting, and purchasing securities for its own account shall not
  apply to the distribution of securities issued by investment companies
  (as defined in section 3 of the Investment Company Act of 1940 (15
  U.S.C. 80a-3)): Provided, That, notwithstanding any other provision of law
  (including this section), an association shall not in the United States,
  pursuant to any express or incidental power, underwrite, distribute, or sell
  interests in a pool of assets originated or purchased by the association
  or its affiliate, and an association shall not continue to engage in such
  activity pursuant to any order issued by the Comptroller of the Currency:
  Provided further, That no association shall sponsor, organize or control
  an investment company registered under the Investment Company Act of 1940:
  Provided further, That no association shall engage in the United States
  in any securities activity except to the extent that such activity is
  specifically authorized by statute, or authorized by regulation, order,
  or interpretation issued by the Office of the Comptroller of the Currency
  or its successor pursuant to that statute, on the date of enactment of the
  Financial Institutions Safety and Consumer Choice Act of 1991, provided that
  this shall not authorize the underwriting or distributing by an association
  of securities backed by or representing an interest in mortgages or other
  assets originated or purchased by the association or its affiliate.'.
  (b) Section 20 (12 U.S.C. 377) and section 32 (12 U.S.C. 78) of the Banking
  Act of 1933 are repealed.
SEC. 222. INSURANCE ACTIVITIES OF NATIONAL BANKS.
  (a)(1) In addition to the powers vested by law in national banking
  associations, any such association located in a place that has a population
  not exceeding 5,000 (as shown by the preceding decennial census) may
  sell insurance so long as such insurance activities are confined to that
  place, and the insurance is sold only to residents of the State in which
  the association is located or to natural persons employed in that State:
  Provided, That no such association shall in any case assume or guarantee the
  payment of any premium on insurance policies issued through its agency by
  its principal: Provided further, That the association shall not guarantee
  the truth of any statement made in any application made for such insurance.
  (2) For purposes of this subsection, the term `residents of that State'
  includes--
  (A) companies incorporated in, or organized under the laws of, the State;
  (B) companies licensed to do business in the State; and
  (C) companies having an office in the State.
  (b) Notwithstanding the limitations in subsection (a), a national banking
  association organized under the laws of the United States may act as agent
  in soliciting and selling insurance and collecting premiums in one or
  more States in which such association or any of its branches is located
  to the extent to which such activities are permitted by such States for
  banks located in those States.
  (c) Chapter 461 of the Act of September 7, 1916 (39 Stat. 753; 12 U.S.C. 92
  note), as amended, is further amended by striking `That in addition to
  the powers now vested by law in national banking associations' and all
  that follows through `filing his application for insurance.'.
SEC. 223. AMENDMENTS TO SECTIONS 23A AND 23B OF THE FEDERAL RESERVE ACT.
  (a) Section 23A of the Federal Reserve Act (12 U.S.C. 371c) is amended--
  (1) in subsection (a)--
  (i) in paragraph (2), by striking the period at the end thereof and inserting
  instead `: Provided, however, That notwithstanding the foregoing, a loan
  or extension of credit shall not be deemed to be made to any affiliate if--
  `(A) the member bank approves such loan or extension of credit in accordance
  with substantially the same standards, procedures, and terms that it has
  applied to similar loans or extensions of credit the proceeds of which
  are not transferred to or for the benefit of an affiliate; and
  `(B) such loan or extension of credit is not made for purposes of evading
  any of the requirements of this section.'; and
  (ii) by inserting at the end thereof the following new paragraph:
  `(5) No financial services holding company shall permit an insured depository
  institution that it controls to engage in any covered transaction if such
  covered transaction exceeds 5 per centum of the capital stock and surplus of
  the insured depository institution unless 5 days prior notice is provided to
  the appropriate Federal banking agency for the financial services holding
  company and for the insured depository institution, if different.';
  (2) in subsection (b)(1)(D), by amending clause (ii) to read as follows:
  `(ii) any investment company, commodity pool, or other company engaged in
  substantially the same activities as an investment company or commodity
  pool with respect to which a member bank or any affiliate is an investment
  advisor as defined in section 2(a)(20) of the Investment Company Act of 1940
  (15 U.S.C. 80a-2(a)(20)), commodity trading advisor as defined in section
  2(a)(1)(A) of the Commodity Exchange Act (7 U.S.C. 2(a)(1)(A)), or performs
  substantially equivalent activities which are substantially equivalent to
  those of an investment advisor or commodity trading advisor; and';
  (3) in subsection (b)(2)(A), by inserting `and of which the member bank
  owns at least 80 per centum of the voting stock' after `member bank';
  (4) in subsection (b)(5), by inserting `principally engaged in deposit
  taking or lending activities' after `trust company';
  (5) in subsection (b)(7)--
  (A) in subparagraph (D), by striking `or' at the end thereof;
  (B) in subparagraph (E)--
  (i) by inserting `to, or' after `standby letter of credit,'; and
  (ii) by striking `or' at the end thereof; and (C) by inserting after
  subparagraph (E) the following new subparagraphs:
  `(F) the assumption by a member bank of a liability of any affiliate
  whether directly or through the transfer of such liability to the member
  bank of any affiliate;
  `(G) a loan or extension of credit to any company, or the issuance of or
  participation in a standby letter of credit, asset purchase agreement,
  indemnification, guarantee, insurance or other facility with any company,
  the purpose of which is to enhance the marketability of securities or
  other obligations or assets, other than those securities that a member
  bank may underwrite pursuant to section 5136 of the Revised Statutes (12
  U.S.C. 24 (Seventh)), that are underwritten or distributed by the affiliate,
  unless there is substantial participation by other lenders in such loan,
  extension of credit, letter of credit, agreement, indemnification, guarantee,
  insurance or other facility; or
  `(H) any other financial arrangement that is determined by the Board by
  regulation to be substantially equivalent to a transaction described in
  this paragraph;';
  (6) in subsection (c)(1)--
  (A) by inserting `to, or' after `letter of credit issued'; and
  (B) by striking `at the time of the transaction';
  (7) in subsection (c)(4)--
  (A) by inserting `the member bank or' after `issued by'; and
  (B) by inserting `to, or' after `letter of credit'; and
  (8) in subsection (d)(5), by inserting `provided that the company provides
  services solely to affiliated member banks' before the semicolon;
  (b) Section 23B(a)(2)(E) of the Federal Reserve Act (12
  U.S.C. 371c-1(a)(2)(E)) is amended--
  (1) in clause (i), by striking `, or' and inserting instead a semicolon;
  (2) in clause (ii), by striking the period and inserting instead `; or'; and
  (3) by inserting at the end thereof the following new clause:
  `(iii) if the third party is a customer of an affiliate (as defined
  in section 2 of the Financial Services Holding Company Act of 1991 (12
  U.S.C. 1841) unless--
  `(I) the member bank approves such transaction in accordance with
  substantially the same standards, procedures, and terms that it has
  applied to similar transactions with persons who are not customers of an
  affiliate; and
  `(II) such transaction or series of transactions is not made for the
  purpose of evading any of the requirements of this section.'.
  (c) Section 23B(b)(2) of the Federal Reserve Act (12 U.S.C. 371c-1(b)(2))
  is amended by inserting `officers, directors, or employees of' after
  `of the bank or'.
SEC. 224. CUSTOMER DISCLOSURE.
  Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended
  by adding at the end thereof the following new subsection:
  `(o) CUSTOMER DISCLOSURE REGARDING SECURITIES, INSURANCE AND OTHER
  NONBANKING PRODUCTS-
  `(1) PRODUCTS OFFERED, RECOMMENDED OR SOLD BY DEPOSITORY INSTITUTIONS-
  An insured depository institution shall prominently disclose in writing to
  its customers pursuant to regulations adopted by the appropriate Federal
  banking agencies, that securities or insurance products offered, recommended,
  or sold by the insured depository institution are not deposits, are not
  insured by the Federal Deposit Insurance Corporation, are not guaranteed
  by the insured depository institution or an affiliated insured depository
  institution, and are not otherwise an obligation of an insured depository
  institution unless such is the case.
  `(2) PRODUCTS OFFERED, RECOMMENDED OR SOLD ON BANK PREMISES OR THROUGH JOINT
  MARKETING ACTIVITIES- An insured depository institution shall not permit
  securities or insurance products to be offered, recommended, or sold on bank
  premises, or to bank customers as part of joint marketing activities with
  another entity; unless the entity prominently discloses in writing that it
  is not an insured institution and is separate from the insured depository
  institution in addition to the disclosures required in paragraph (1).
  `(3) CUSTOMER ACKNOWLEDGEMENT OF DISCLOSURES- No insured depository
  institution shall permit the sale of securities or insurance products to
  be consummated unless an acknowledgement of receipt of the disclosures
  described in paragraphs (1) and (2) including the date of receipt and the
  customer's name, address and account number is obtained from the customer.
  `(4) REGULATIONS- The appropriate Federal banking agencies may adopt
  regulations implementing this subsection and applying these provisions to
  nonbank products sold in a similar manner.'.
SEC. 225. BANKERS' BANKS.
  (a) Section 5136(Seventh) of the Revised Statutes (12 U.S.C. 24(Seventh)), as
  amended by section 221(a), is further amended by inserting `or their holding
  companies' after `providing services for other depository institutions'.
  (b) Section 5169(b)(1) of the Revised Statutes (12 U.S.C. 27(b)(1)) is
  amended by inserting `or their holding companies' after `other depository
  institutions' the second time it appears.
Subtitle C--Non-Banking Activities of Foreign Banks in the United States
SEC. 231. AMENDMENTS TO THE INTERNATIONAL BANKING ACT OF 1978.
  (a) Section 8 of the International Banking Act of 1978 (12 U.S.C. 3106)
  is amended--
  (1) by amending subsection (a) to read as follows:
  `(a)(1)(A) Except as otherwise provided in this section, any foreign bank--
  `(i) that maintains a branch or agency in the United States, or
  `(ii) that directly or indirectly owns or controls a commercial lending
  company organized under State law,
shall be subject to the provisions of the Financial Services Holding Company
Act of 1991 (12 U.S.C. 1841 et seq.) and to sections 105 and 106 of the Bank
Holding Company Act Amendments of 1970 (12 U.S.C. 1850, 1971 et seq.) in
the same manner and to the same extent as a financial services holding company.
  `(B) Any company that directly or indirectly owns or controls a foreign
  bank described in subparagraph (A) shall be subject to the provisions
  of the Financial Services Holding Company Act of 1991 (12 U.S.C. 1841 et
  seq.) in the same manner and to the same extent as a company that owns or
  controls a financial services holding company.
  `(C)(i) Notwithstanding subparagraphs (A) and (B), no foreign bank or
  company described in this subsection shall, by reason of this subsection
  alone, be deemed to be a financial services holding company or a company
  that controls a financial services holding company for purposes of section
  3 of the Financial Services Holding Company Act of 1991 (12 U.S.C. 1842).
  `(ii) Notwithstanding clause (i), a foreign bank or company described in
  this subsection that seeks to acquire, directly or indirectly, more than
  five percent of the shares of an insured depository institution (as defined
  in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) other
  than a foreign bank, must obtain the prior approval of such acquisition by
  the appropriate Federal banking agency under section 3 of the Financial
  Services Holding Company Act of 1991 (12 U.S.C. 1842) as if the foreign
  bank or company were a financial services holding company or a company
  that owns or controls a financial services holding company.
  `(2) Except as provided in paragraph (3), after January 1, 1993, no foreign
  bank or company referred to in paragraph (1) shall, directly or indirectly,
  maintain in the United States a branch, an agency, an insured depository
  institution, or a commercial lending company, if such foreign bank or
  company also directly or indirectly engages in the United Sates in--
  `(A) any activity authorized under section 4(c)(8) of the Financial
  Services Holding Company Act of 1991 (12 U.S.C. 1843(c)(8)) after the date
  of enactment of that Act, other than any activity that, prior to the date
  of enactment of that Act, had been determined by the Board to be closely
  related to banking and a proper incident thereto by an order or regulation
  that was valid on the date of enactment of that Act, or
  `(B) any activity authorized under section 4(c)(15) or 4(c)(16) of such Act
  (12 U.S.C. 1843(c)(15) or (c)(16)).
  `(3) A foreign bank or company subject to the prohibition in paragraph
  (2) may engage in banking in the United States indirectly through direct
  or indirect subsidiaries of a single financial services holding company
  organized under the laws of a State or the District of Columbia, provided
  that all activities of the foreign bank or company in the United States
  conducted under the authority of the Financial Services Holding Company Act
  of 1991 (12 U.S.C. 1841 et seq.), other than those authorized by sections
  2(h) or 4(c)(9) of such Act, are carried out directly or indirectly by
  that financial services holding company.'; and
  (2) in subsection (c)(1)--
  (A) by striking the second sentence and inserting instead `Notwithstanding
  the preceding sentence, no foreign bank or other company referred to in
  this subsection may retain, pursuant to this subsection, the ownership or
  control of any company engaged in the business of underwriting, distributing
  or otherwise buying or selling stocks, bonds, and other securities in the
  United States after three years from the date of enactment of the Financial
  Institutions Safety and Consumer Choice Act of 1991.';
  (B) in the third sentence, by striking `Except in the case of affiliates
  described in the preceding sentence, nothing' and inserting instead
  `Nothing';
  (C) in the fifth sentence, by striking `the term `domestically-controlled
  affiliate covered in 1978' and all that follows in such sentence and
  inserting instead a period; and
  (D) by striking the sixth sentence.
  (b) The amendments made by subsection (a) shall become effective on January
  1, 1993.
Subtitle D--Amendments to the Securities Acts
SEC. 241. AMENDMENTS TO THE SECURITIES ACT OF 1933.
  (a) BANK-ISSUED SECURITIES- Section 3(a)(2) of the Securities Act of 1933
  (15 U.S.C. 77c(a)(2)), is amended--
  (1) by striking out `or any security issued or guaranteed by any bank;' and
  (2) by striking `a security issued or guaranteed by a bank shall not include
  any interest or participation in any collective trust fund maintained by
  a bank'.
  (b) SAVINGS ASSOCIATION-ISSUED SECURITIES- Section 3(a)(5) of the Securities
  Act of 1933 (15 U.S.C. 77c(a)(5)) is amended to read as follows:
  `(5) Any security issued by--
  `(A) a farmer's cooperative organization exempt from tax under section
  521 of the Internal Revenue Code of 1986 (26 U.S.C. 521);
  `(B) a corporation described in section 501(c) (16) of such Code and exempt
  from tax under section 501(a) of such Code;
  `(C) a corporation described in section 501(c)(2) of such Code and organized
  for the exclusive purpose of holding title to property, collecting income
  therefrom, and turning over the entire amount thereof, less expenses,
  to an organization or corporation described in subparagraph (A) or (C); or
  `(D) a savings and loan association of Federal savings bank issued or
  exchanged in connection with a transaction pursuant to which a savings and
  loan association or Federal savings bank converts from the mutual stock form
  of ownership under section 5 of the Home Owners' Loan Act (12 U.S.C. 1464)
  or section 402 of the National Housing Act (12 U.S.C. 1725(j)).'.
  (c) TREATMENT OF CERTAIN BANK AND SAVINGS ASSOCIATION INSTRUMENTS- Section
  3 of the Securities Act of 1933 (15 U.S.C. 77c) is amended by adding at
  the end thereof the following new subsection:
  `(d)(1) Except as hereinafter expressly provided, in those circumstances
  in which an interest in any of the following is otherwise deemed to be a
  `security' within the meaning of section 2, the provisions of this Act
  shall not apply to--
  `(A) a deposit account, savings account, certificate of deposit, or other
  deposit instrument issued by a bank or savings association,
  `(B) a share account issued by a savings association if such account is
  insured by the Federal Deposit Insurance Corporation,
  `(C) a banker's acceptance,
   `(D) a letter of credit issued by a bank or savings association, or
   `(E) a debit account at a bank or savings association arising from a
   credit card or other similar arrangement,
except that this paragraph shall not exempt from the provisions of this Act
any participation in such an interest, account, certificate, instrument,
acceptance, or letter of credit, other than a participation that is a direct
obligation of a bank or savings association.
   `(2) For purposes of this subsection, the term `deposit' means the unpaid
   balance of money or its equivalent received or held by a bank or savings
   association in the usual course of business--
   `(A) for which it has given or is obligated to give credit, either
   conditionally or unconditionally, to a commercial, checking, savings,
   time, or thrift account;
   `(B) which is evidenced by its certificate of deposit, a check or draft
   drawn against a deposit account and certified by a bank or savings
   association, a letter of credit or a traveler's check, or by any other
   similar instrument on which the bank is liable;
   `(C) which consists of nonpooled assets of individual trust funds received
   or held by such bank or savings association whether held in the trust
   department or deposited in any other department of such bank or savings
   association;
   `(D) which is received or held by a bank or savings association for
   a special or specific non-investment purpose, including, without being
   limited to, escrow funds, funds held in security for any obligation
   due to the bank or savings association or others (including funds held
   as dealers' reserves) or for securities loaned by the bank or savings
   association, funds deposited by a debtor to meet maturing subscriptions
   to United States Government securities, funds held to meet its acceptances
   or letters of credit, and withheld taxes; or
   `(E) which is insured by the Federal Deposit Insurance Corporation, is
   subject to deposit reserve requirements adopted by the Board of Governors
   of the Federal Reserve System, or is regulated by the Office of Depository
   Institution Supervision or Board of Governors of the Federal Reserve
   System as a deposit.'.
   `(3) For purposes of this subsection, the term `savings association' shall
   have the meaning given in section 3 of the Federal Deposit Insurance Act,
   as amended (12 U.S.C. 1813).'.
   (d) EXEMPTION OF CERTAIN HOLDING COMPANY FORMATIONS FROM REGISTRATION
   UNDER THE SECURITIES ACT OF 1933- Section 4 of the Securities Act of 1933
   (15 U.S.C. 77d) is amended by adding at the end thereof the following
   new paragraph:
   `(7) transactions involving offers or sales of equity securities, in
   connection with the acquisition, under section 3(a) of the Financial
   Services Holding Company Act of 1991 (12 U.S.C. 1842(a)), of a bank by
   a financial services holding company, or a financial services holding
   company by a diversified holding company if--
   `(A) the acquisition occurs solely as part of a reorganization in which
   a person or group of persons--
   `(i) exchanges shares of a bank for shares of a newly formed financial
   services holding company, or shares of a financial services holding
   company for shares of a newly formed diversified holding company; and
   `(ii) receives, after such reorganization, substantially the same
   proportional share interests in the newly formed financial services holding
   company as they held in the bank or financial services holding company, as
   the case may be, except for changes in shareholders' interests resulting
   from the exercise of dissenting shareholders' rights under State or
   Federal law; and
   `(B) the newly formed company has substantially the same assets as its
   predecessor.'.
   (e) TECHNICAL AMENDMENTS-
   (1) Section 12(2) of the Securities Act of 1933 (15 U.S.C. 771(2)) is
   amended by inserting `or subsection (d)' after `subsection (a)'.
   (2) Section 304(a) (4) of the Trust Indenture Act of 1939 (15 U.S.C. 77ddd
   (a)(4)) is amended by inserting `or by section 3(d)' after `section 3(a)'.
SEC. 242. AMENDMENTS TO THE SECURITIES EXCHANGE ACT OF 1934.
   (a) REGULATION OF BANK BROKER ACTIVITIES- Section 3 (a)(4) of the Securities
   Exchange Act of 1934 (15 U.S.C. 78c(a)(4)) is amended to read as follows:
   `(4) Broker-
   `(A) IN GENERAL- The term `broker' means any person engaged in the business
   of effecting transactions in securities for the account of others.
   `(B) EXCLUSION OF BANKS- Such term does not include a bank unless
   the bank publicly solicits such business or is compensated for such
   business by the payment of commissions or similar remuneration based
   on effecting transactions in securities, excluding fees calculated as
   a percentage of assets under management (hereinafter referred to as
   `incentive compensation').
   `(C) BANK ACTIVITIES- A bank shall not be deemed to be a broker because
   it engages in one or more of the following activities:
  `(i) Enters into contractual or other arrangements with a broker or dealer
  registered under this Act pursuant to which the broker or dealer will
  offer brokerage services on or off the premises of the bank if--
  `(I) such broker or dealer is clearly identified as the person performing
  the brokerage services;
  `(II) bank employees perform only clerical or ministerial functions
  in connection with brokerage transactions unless such employees are
  qualified as registered representatives pursuant to the requirements of
  a self-regulatory organization;
  `(III) bank employees do not receive incentive compensation for any brokerage
  activities unless such employees are qualified as registered representatives
  pursuant to the requirements of a self-regulatory organization; and
  `(IV) such services are provided by the broker or dealer on a basis in
  which all customers are fully disclosed.
  `(ii) Engages in trust activities (including effecting transactions in
  the course of such trust activities) permissible for national banks under
  section 1 of Public Law 87-722 (12 U.S.C. 92a) or for State banks under
  relevant State trust statutes or law (excluding securities safekeeping,
  self-directed individual retirement accounts, or managed agency or other
  functionally equivalent accounts of a bank) unless the bank--
  `(I) publicly solicits brokerage business other than by advertising, in
  conjunction with advertising its other trust activities, that it effects
  transactions in securities; and
  `(II) receives incentive compensation.
  `(iii) Effects transactions in exempted securities, other than municipal
  securities, or in commercial paper, bankers' acceptances, or commercial
  bills.
  `(iv) Effects transactions in municipal securities and does not have a
  securities affiliate as provided in section 4(c)(15) of the Financial
  Services Holding Company Act of 1991 (12 U.S.C. 1843(c)(15)).
  `(v) Effects transactions as part of any bonus, profit-sharing, pension,
  retirement, thrift, savings, incentive, stock purchase, stock ownership,
  stock appreciation, stock option, dividend reinvestment, or similar plan
  for employees or shareholders of an issuer or its subsidiaries.
  `(vi) Effects transactions as part of a program for the investment or
  reinvestment of bank deposit funds into any no-load open-end investment
  company registered pursuant to the Investment Company Act of 1940 (15
  U.S.C. 80a-1 et seq.) that attempts to maintain a constant net asset value
  per share and has an investment policy calling for investment of at least
  80 percent of its assets in debt securities maturing in l3 months or less.
  `(vii) Effects transactions for the account of any affiliate of the bank,
  as the term `affiliate' is defined in section 2 of the Banking Act of
  1933 (12 U.S.C. 221a), treating all banks as member banks for purposes of
  such definition.
  `(viii) Effects sales--
  `(I) as part of a primary offering of securities by an issuer, not involving
  a public offering, pursuant to section 3(b), 4(2), or 4(6) of the Securities
  Act of 1933 and the rules and regulations thereunder; and
  `(II) exclusively to: a bank as defined in section 3(a)(2) of the Securities
  Act of 1933 whether acting in its individual or fiduciary capacity; an
  insurance company as defined in section 2(13) of the Securities Act of 1933;
  an investment company registered under the Investment Company Act of 1940
  or a business development company as defined in section 2(a)(48) of that
  Act; a Small Business Investment Company licensed by the Small Business
  Administration; an insured institution, as defined in section 401 of the
  National Housing Act; an employee benefit plan within the meaning of title 1
  of the Employee Retirement Security Act of 1974, if the investment decision
  is made by a plan fiduciary, as defined in Section 3(21) of such Act, that
  is a bank as defined in section 3(a)(2) of the Securities Act of 1933, or
  an insurance company as defined in section 2(17) of the Investment Company
  Act of 1940, or an investment adviser registered under the Investment
  Advisers Act of 1940, or if the employee benefit plan has total assets
  in excess of $5,000,000; an employee benefit plan as defined in section
  3 of the Employee Retirement Income Security Act of 1974, established
  and maintained by a State, its political subdivisions, or any agency or
  instrumentality of a State or its political subdivisions exclusively for
  the benefit of its employees or their beneficiaries that is governed by
  fiduciary principles comparable to those contained in such Act, if (i)
  the plan has total assets in excess of $25,000,000, and (ii) investment
  decisions for the plan are made by a plan fiduciary, as defined in Section
  3(21) of such Act, that is a bank as defined in section 3(a)(2) of the
  Securities Act of 1933, an insurance company as defined in section 2(17)
  of the Investment Company Act of l940, or an investment adviser registered
  under the Investment Advisers Act of 1940; a corporation with total assets in
  excess of $50,000,000 and net worth in excess of $5,000,000, as reflected on
  financial statements prepared in accordance with general accepted accounting
  principles; an organization described in section 501(c)(3) of the Internal
  Revenue Code with total assets in excess of $5,000,000; a foreign bank,
  broker, dealer, insurance company, or government or government agency;
  or a natural person with a net worth exceeding $5,000,000. The dollar
  limitations in this clause shall be adjusted annually after December 31,
  1991, by the annual percentage increase in the Consumer Price Index for
  Urban Wage Earners and Clerical Workers published monthly by the Bureau
  of Labor Statistics.
  `(ix) Effects fewer than 1,000 transactions per year in securities other
  than transactions described in clauses (i) through (viii), if the bank
  does not have a subsidiary or affiliate registered as a broker or dealer
  under this Act.'.
  (b) REGULATION OF BANK DEALER ACTIVITIES- Section 3(a)(5) of the Securities
  Exchange Act of 1934 (15 U.S.C. 78c(a)(5)) is amended to read as follows:
  `(5)(A) The term `dealer' means any person engaged in the business of buying
  and selling securities for his own account through a broker or otherwise.
  `(B) Such term does not include--
  `(i) any person insofar as that person buys or sells securities for his
  own account, either individually or in some fiduciary capacity, but not
  as a part of a regular business; or
  `(ii) any bank insofar as the bank--
  `(I) buys and sells commercial paper, bankers' acceptances, or commercial
  bills, or exempted securities other than municipal securities;
  `(II) buys and sells municipal securities and does not have a securities
  affiliate as provided in section 4(c)(15) of the Financial Services Holding
  Company Act of 1991; or
  `(III) buys and sells securities for investment purposes for the bank
  or for accounts for which the bank, acting as a trustee or fiduciary,
  is authorized to determine the securities to be purchased or sold.'.
  (c) POWER TO EXEMPT FROM THE DEFINITIONS OF BROKER OR DEALER- Section
  3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c) is amended by
  inserting after subsection (d) the following new subsection:
  `(e) The Commission, by rule, regulation, or order, upon its own motion or
  upon application, may conditionally or unconditionally exempt any person
  or class of persons from the definitions of `broker' or `dealer', if the
  Commission finds that such exemption is consistent with the public interest,
  the protection of investors, and the purposes of this Act.'.
  (d) REQUIREMENT THAT BANKS FALLING WITHIN THE DEFINITIONS OF BROKER OR
  DEALER PLACE THEIR SECURITIES ACTIVITIES IN A SEPARATE CORPORATE ENTITY-
  Section 15(a) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(a))
  is amended to read as follows:
  `(a)(1) It shall be unlawful for any broker or dealer that is either a
  person other than a natural person or a natural person not associated with
  a broker or dealer that is a person other than a natural person (other
  than such a broker or dealer whose business is exclusively intrastate and
  who does not make use of any facility of a national securities exchange)
  to make use of the mails or any means or instrumentality of interstate
  commerce to effect any transactions in, or to induce or attempt to induce
  the purchase or sale of, any security (other than an exempted security or
  commercial paper, bankers' acceptances, or commercial bills) unless such
  broker or dealer is registered in accordance with subsection (b).
  `(2) It shall be unlawful for any bank to act as a broker or dealer,
  except in the course of an exclusively intrastate business. This section
  shall not preclude a subsidiary of a bank or an affiliate of a financial
  services holding company other than a bank, as those terms are defined
  in the Financial Services Holding Company Act of 1991 (12 U.S.C. 1841 et
  seq.), that is registered in accordance with subsection (b) from acting
  as a broker or dealer to any extent otherwise permissible by law.
  `(3) The Commission, by rule or order, as it deems consistent with the
  public interest and the protection of investors, may conditionally or
  unconditionally exempt from paragraphs (1) and (2) any broker or dealer
  or class of brokers or dealers specified in such rule or order.'.
  (e) REGULATION OF TRANSACTIONS IN CERTAIN SECURITIES ON BANK PREMISES-
  Section 15 of the Securities and Exchange Act of 1934 (15 U.S.C. 78o)
  is amended by inserting after subsection (e) the following new subsection:
  `(f)(1) No bank may permit any evidence of indebtedness of, or ownership
  interest in, any affiliate of such bank to be sold or offered for sale to
  the general public in any part of any office (other than an office which
  is not located within any State) of such bank which is commonly accessible
  to the general public for the purpose of accepting deposits.
  `(2) No bank may permit any evidence of indebtedness of, or ownership
  interest in, such bank to be sold or offered for sale to the general public
  in any part of any office (other than an office which is not located within
  any State) of such bank which is commonly accessible to the general public
  for the purpose of accepting deposits.
  `(3) EXCEPTIONS-
  `(A) REGISTERED BROKERS AND DEALERS- This subsection shall not apply
  to transactions in shares of investment companies registered under the
  Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.) that are affiliated
  with the bank by or through a broker or dealer registered under this Act,
  if sales by or through such broker or dealer are subject to sales practice
  standards of a self-regulatory organization, provided the transactions--
  `(i) are consistent with the purposes of this subsection; and
  `(ii) are in the public interest.
  `(B) DEPOSITS, CERTAIN MEANS OF PAYMENT TO THIRD PARTIES AND CERTAIN OTHER
  INSTRUMENTS- This subsection shall not apply to any evidence of indebtedness
  or ownership interest which--
  `(i) is a deposit in an insured depository institution; or
  `(ii) constitutes a means of payment to a third party, such as a traveler's
  check, cashier's check, teller's check or money order.'.
  (f) SECURITIES EXCHANGE ACT ADMINISTRATION TRANSFER-  Section 12(i) of
  the Securities Exchange Act of 1934 (15 U.S.C. 781(i)) is repealed.
SEC. 243. AMENDMENTS TO THE INVESTMENT COMPANY ACT OF 1940.
  (a) CUSTODY OF INVESTMENT COMPANY ASSETS BY AFFILIATE BANKS-
  (1) MANAGEMENT COMPANIES- Section 17(f) of the Investment Company Act of
  1940 (15 U.S.C. 80a-17(f)) is amended by striking `trusts' the first place
  it appears and inserting instead `trusts, but where any such bank or an
  affiliated person thereof is an affiliated person, promoter, sponsor, or
  organizer of, or principal underwriter for, such registered company, only
  in accordance with such rules and regulations or orders as the Commission
  may from time to time prescribe for the protection of investors, after
  consulting in writing with the appropriate Federal banking agency as defined
  in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)),'.
  (2) UNIT INVESTMENT TRUSTS- Section 26(a)(1) of the Investment Company Act of
  1940 (15 U.S.C. 80a-26(a)(1)) is amended by inserting `not affiliated with
  such underwriter or depositor, or where such bank is so affiliated, only in
  accordance with such rules and regulations or orders as the Commission may
  from time to time prescribe for the protection of investors after consulting
  in writing with the appropriate Federal banking agency as defined in section
  3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)),' after `bank'.
  (b) INDEPENDENT DIRECTORS-
  (1) INTERESTED PERSONS- Section 2(a)(19)(A)(v) of the Investment Company
  Act of 1940 (15 U.S.C. 80a-2(a)(19)(A)(v)) is amended by striking `1934 or
  any affiliated person of such a broker or dealer' and inserting instead
  `1934 or any person that, at any time during the preceding 6 months,
  has acted as custodian or transfer agent or has executed any portfolio
  transactions for, engaged in any principal transactions with, or loaned
  money to, the investment company, or any other investment company having
  the same investment adviser, principal underwriter, sponsor, or promoter,
  or any affiliated person of such a broker, dealer, or person'.
  (2) AFFILIATION OF DIRECTORS- Section 10(c) of the Investment Company Act
  of 1940 (15 U.S.C. 80a-10(c)) is amended by striking `bank, except' and
  inserting instead `bank and its subsidiaries or any financial services
  holding company and its affiliates and subsidiaries, as those terms
  are defined in the Financial Services Holding Company Act of 1991 (12
  U.S.C. 1842 et seq.),'.
  (c) ADDITIONAL SEC RULEMAKING AUTHORITY REGARDING BANK AFFILIATED MUTUAL
  FUNDS- Section 38 of the Investment Company Act of 1940 (15 U.S.C. 80a-37)
  is amended by inserting after subsection (c) the following new subsection:
  `(d) The Commission shall have the authority to promulgate such rules
  regarding loans, purchases or sales of assets, and other transactions
  involving a bank, an affiliated person, and an affiliated registered
  investment company.'.
  (d) ADDITIONAL DISCLOSURE AUTHORITY- Section 36(a) of the Investment
  Company Act of 1940 (15 U.S.C. 80a-35(a)) is amended to read as follows:
  `(a) It shall be unlawful for any person, in issuing or selling any security
  of which a registered investment company is the issuer, to represent or
  imply in any manner whatsoever that such security or company has been
  guaranteed, sponsored, recommended, or approved by the United States or
  any agency or officer thereof or has been insured by the Federal Deposit
  Insurance Corporation or is guaranteed by or is otherwise an obligation of
  any bank or insured institution. If a financial services holding company,
  bank, or separately identifiable division or department of a bank, or any
  affiliate or subsidiary thereof, is an investment adviser, organizer,
  sponsor, promoter, principal underwriter, or an affiliated person of a
  registered investment company, or a bank or an affiliated person of a bank
  if offering or selling securities of a registered investment company, or the
  name of an investment company is that of, or similar to that of, a bank,
  pursuant to regulations adopted by the Commission, after consultation in
  writing with the appropriate federal banking agency as defined in section
  3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), any person in
  issuing or selling securities of such investment company may be required
  to disclose prominently that the investment company and any security
  issued by it are not insured by the Federal Deposit Insurance Corporation,
  are not guaranteed by an affiliated bank or insured institution, and are
  not otherwise an obligation of such a bank or insured institution. The
  Commission may determine by order as provided for in subsection (d),
  after consultation with the appropriate Federal banking agency (as defined
  in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)))
  that use of a name similar to that of a bank is deceptive and misleading. In
  that event, use of such name shall be unlawful as provided in subsection
  (d) and the Commission shall have the authority to take such actions as
  provided in that subsection.'.
  (e) DEFINITION OF BROKER- Section 2(a)(6) of the Investment Company Act
  of 1940 (15 U.S.C. 80a-2(a)(6)) is amended to read as follows:
  `(6) `Broker' has the same meaning as in the Securities Exchange Act of
  1934, but does not include any person solely by reason of the fact that
  such person is an underwriter for one or more investment companies.'.
  (f) DEFINITION OF DEALER- Section 2(a)(11) of the Investment Company Act
  of 1940 (15 U.S.C. 80a-2(a)(11) is amended to read as follows:
  `(11) `Dealer' has the same meaning as in the Securities Exchange Act of
  1934, but does not include an insurance company or investment company.'.
SEC. 244. REMOVAL OF THE EXCLUSION FROM THE DEFINITION OF INVESTMENT ADVISER
FOR BANKS THAT ADVISE INVESTMENT COMPANIES.
  (a) Section 202(a)(11) of the Investment Advisers Act of 1940 (15
  U.S.C. 80b-2(a)(11)) is amended--
  (1) in subparagraph (A), by striking `investment company' and inserting
  instead `investment company, except that the term `investment adviser'
  includes any bank or financial services holding company to the extent
  such bank acts as an investment adviser to a registered investment company
  unless the bank performs such services through a separately identifiable
  department or division of the bank, in which case the department or division
  and not the bank shall be deemed to be the investment adviser'; and
  (2) by adding at the end thereof the following: `For purposes of this
  paragraph, a separately identifiable department or division of a bank
  shall mean a unit that--
  `(A) is under the direct supervision of an officer or officers designated by
  appropriate Federal banking agency or directors of the bank as responsible
  for the day-to-day conduct of the bank's investment adviser activities
  for one or more investment companies, including the supervision of all
  bank employees engaged in the performance of such activities; and
  `(B) there are separately maintained in or extractable from such unit's
  own facilities or the facilities of the bank, all of the records relating
  to such investment adviser activities and such records are so maintained
  or otherwise accessible as to permit independent examination thereof and
  enforcement of the Act and rules and regulations thereunder.'.
  (b) DEFINITION OF BROKER- Section 202(a)(3) of the Investment Advisers
  Act of 1940 (15 U.S.C. 80b-2(a)(3)) is amended to read as follows:
  `(3) `Broker' has the same meaning as in the Securities Exchange Act
  of 1934.'.
  (c) DEFINITION OF DEALER- Section 202(a)(7) of the Investment Advisers
  Act of 1940 (15 U.S.C. 80b-2(a)(7)) is amended to read as follows:
  `(7) `Dealer' has the same meaning as in the Securities Exchange Act of
  1934, but does not include an insurance company or investment company.'.
  (d) NOTIFICATION AND CONSULTATION- The Investment Advisers Act of 1940
  (15 U.S.C. 80b-1 et seq.) is amended by inserting after section 210 the
  following new section:
`SEC. 210A. NOTIFICATION AND CONSULTATION.
  `(a) IN GENERAL- The Commission, prior to the examination of, the entry
  of an order of investigation of, or the commencement of any disciplinary
  or law enforcement proceedings against, any financial services holding
  company, bank, or department or division of a bank that is a registered
  investment adviser shall give notice to the appropriate Federal banking
  agency as defined in section 3(q) of the Federal Deposit Insurance Act (12
  U.S.C. 1813(q)), of the identity of such financial service holding company,
  bank, department or division and the nature of the proposed actions and
  shall consult in writing with such appropriate Federal banking agency
  concerning any such proposed action, unless the protection of investors
  requires immediate action by the Commission and prior notice or consultation
  is not practical under the circumstances, in which case notice shall be
  given and the appropriate Federal banking agency shall be notified and
  consulted as promptly as possible thereafter.
  `(b) EXAMINATION RESULTS- The Commission and the appropriate Federal banking
  agency shall exchange the results of any examination of any financial
  services holding company, bank, department or division of a bank that is
  a registered investment adviser concerning activities subject to this Act.
  `(c) EFFECT ON OTHER AUTHORITY- Nothing herein shall limit in any respect
  the authority of the appropriate Federal banking agency with respect to
  such financial services holding company, bank, or department or division
  under any provision of law.'.
SEC. 245. TREATMENT OF BANK COMMON TRUST FUNDS.
  (a) SECURITIES ACT OF 1933- Section 3(a)(2) of the Securities Act of 1933 (15
  U.S.C. 77c(a)(2)) is amended by striking `or any interest or participation
  in any common trust fund or similar fund maintained by a bank exclusively
  for the collective investment and reinvestment of assets contributed
  thereto by a bank in its capacity as trustee, executor, administrator,
  or guardian' and inserting instead `or any interest or participation in
  any common trust fund or similar fund excepted from the definition of the
  term `investment company' by section 3(c)(3) of the Investment Company Act
  (15 U.S.C. 80a-3(c)(3))'.
  (b) SECURITIES EXCHANGE ACT OF 1934- Section 3(a)(12)(A)(iii) of the
  Securities Exchange Act of 1934 (15 U.S.C. 78c(a)(l2)(A)(iii)) is amended
  to read as follows:
  `(iii) any interest or participation in any common trust fund or similar
  fund excepted from the definition of the term `investment company' by
  section 3(c)(3) of the Investment Company Act.'.
  (c) INVESTMENT COMPANY ACT OF 1940- Section 3(c)(3) of the Investment
  Company Act of 1940 (15 U.S.C. 80a-3(c)(3)) is amended by deleting the
  period at the end thereof and inserting the following:
`so long as--
  `(A) such fund is employed by the bank solely as an aid to the administration
  of trust, estates, and other accounts created and maintained for a
  fiduciary purpose;
  `(B) except in connection with generic advertising of the bank's fiduciary
  services, interests in such fund are not--
  `(i) advertised; or
  `(ii) offered for sale to the general public; and
  `(C) a fund is not charged any fees or expenses which, when added to any
  other compensation charged by the bank to a participant account, exceeds
  the total amount of compensation which would have been charged to such
  participant account if no assets of such participant account had been
  invested in interests in the fund, except that any reasonable and necessary
  expenses related to the prudent operation of the fund, as determined by
  the Office of Depository Institutions Supervision shall be permitted to
  be charged directly to the fund.'.
  (d) TAX EFFECT- Section 584 of the Internal Revenue Code of 1986 (26
  U.S.C. 584) is amended by inserting after subsection (g) the following
  new subsection:
  `(h) CONVERSION, MERGERS, OR REORGANIZATION OF COMMON TRUST FUNDS-
  Notwithstanding any other provision of the Internal Revenue Code, any
  transfer of all or substantially all of the assets of a common trust fund
  taxable under this section to a registered investment company taxable
  under subchapter M shall not result in a gain or loss to the participants
  in such common trust fund where the transfer is a result of a merger,
  conversion, reorganization, transfer, or other similar transaction or
  series of transactions.'.
SEC. 246. SECURITIES AND EXCHANGE COMMISSION STUDY OF BANK AND INSURANCE
POOLED INVESTMENT VEHICLES.
  (a) IN GENERAL- The Securities and Exchange Commission, in consultation
  with the Secretary of Labor, shall examine--
  (1) the appropriate treatment of bank collective investment funds and
  separate accounts under the securities laws and the Employee Retirement
  Income Security Act (29 U.S.C. 1001 et seq.); and
  (2) the appropriate treatment of common trust funds under the securities
  laws.
  (b) REPORT- Not later than six months after the date of enactment of this
  Act, the Securities and Exchange Commission shall transmit to the Congress
  a final report which shall contain a detailed statement of findings
  and conclusions, including recommendations for such administrative and
  legislative action as the Commission deems advisable.
SEC. 247. EFFECTIVE DATE.
  This subtitle shall become effective on January 1, 1993, except that
  section 246 shall become effective on the date of enactment of this Act.
Subtitle E--Prompt Corrective Action
SEC. 251. PROMPT CORRECTIVE ACTION.
  (a) SYSTEM OF PROMPT CORRECTIVE ACTION- The Federal Deposit Insurance
  Act (12 U.S.C. 1811 et seq.) is amended by adding at the end thereof the
  following new section:
`SEC. 35. PROMPT CORRECTIVE ACTION.
  `(a) DEFINITIONS-
  `(1) BANKING LAWS DEFINED- For the purposes of this section, the term
  `banking laws' means this Act, the National Bank Act, the Federal Reserve
  Act, the Financial Services Holding Company Act of 1991, the Change in
  Bank Control Act, the Bank Merger Act, the International Banking Act of
  1978, any other law codified in title 12 of the United States Code that
  is applicable to or affects insured banks or persons that own or control
  insured banks, and any regulations promulgated thereunder.
  `(2) CAPITAL DISTRIBUTION DEFINED- For purposes of this section, the term
  `capital distribution' means--
  `(A) A dividend or other distribution in cash or in kind made with respect
  to any shares or other ownership interest of any insured bank, except a
  dividend consisting only of shares of the bank or any amount paid on the
  deposits of a mutual savings bank that is determined by the appropriate
  Federal banking agency not to constitute a dividend;
  `(B) A payment made by an insured bank to repurchase, redeem, retire,
  or otherwise acquire any of its shares, including any extension of credit
  made to finance an affiliated company's acquisition of such shares; or
  `(C) A transaction that the appropriate Federal banking agency determines
  by order or regulation to be in substance the distribution of capital.
  `(3) COMPANY DEFINED- The term `company' shall have the same meaning as
  provided in section 2(b) of the Financial Services Holding Company Act of
  1991 (12 U.S.C. 1841(b)).
  `(4) COMPENSATION DEFINED- The term `compensation' means any payment of
  money or provision of any other thing of current or potential value in
  connection with employment.
  `(5) DIVERSIFIED HOLDING COMPANY DEFINED- The term `diversified holding
  company' shall have the same meaning as provided in section 2(a)(2) of
  the Financial Services Holding Company Act of 1991 (12 U.S.C. 1841(a)(2)).
  `(6) EXECUTIVE OFFICER DEFINED- The term `executive officer' shall have
  the same meaning as provided in section 22(h) of the Federal Reserve Act
  (12 U.S.C. 375b).
  `(7) FINANCIAL SERVICES HOLDING COMPANY DEFINED- The terms `financial
  services holding company' and `financial affiliate' shall have the same
  meaning as provided in section 2 of the Financial Services Holding Company
  Act of 1991 (12 U.S.C. 1841).
  `(8) NEW FINANCIAL ACTIVITY DEFINED- The term `new financial activity'
  means any activity authorized pursuant to subsection (c)(8), (c)(15),
  or (c)(16) of section 4 of the Financial Services Holding Company Act of
  1991 (12 U.S.C. 1843) other than any activity that, prior to the date of
  enactment of the Financial Institutions Safety and Consumer Choice Act of
  1991, the Board of Governors of the Federal Reserve System had determined,
  by any order or regulation that continued to be in effect on December 31,
  1992, to be closely related to banking and a proper incident thereto.
  `(9) QUALIFIED FINANCIAL ACTIVITY DEFINED- The term `qualified financial
  activity' means any activity authorized pursuant to subsection (c)(8),
  (c)(15), or (c)(16) of section 4 of the Financial Services Holding Company
  Act of 1991 (12 U.S.C. 1843).
  `(b) CLASSIFICATION ACCORDING TO CAPITAL SUFFICIENCY-
  `(1) RELEVANT CAPITAL MEASURES-
  `(A) IN GENERAL- Unless otherwise provided pursuant to subparagraph (B),
  relevant capital measures for purposes of this section shall include--
  `(i) a risk-based capital ratio; and
  `(ii) a leverage limit.
  `(B) OTHER CAPITAL MEASURES- The appropriate Federal banking agency may,
  by regulation or guideline, establish any additional relevant capital
  measure or measures that are consistent with the purposes of this section,
  and may determine to eliminate any relevant capital measure established in
  subparagraph (A) upon a finding, after notice and opportunity for comment,
  that the measure is no longer an appropriate means for carrying out the
  purposes of this section.
  `(2) CONTENT OF RELEVANT CAPITAL MEASURES-
  `(A) RISK-BASED CAPITAL RATIO- The risk-based capital ratio shall be the
  risk-based capital standard adopted by the appropriate Federal banking
  agency.
  `(B) LEVERAGE LIMIT- The leverage limit shall be the leverage limit adopted
  by the appropriate Federal banking agency.
  `(3) DEFINITIONS RELATING TO RELEVANT CAPITAL MEASURES- For purposes of
  this section `total assets' and `Tier 1 capital' shall have the meaning
  given those terms by the appropriate Federal banking agencies in the
  risk-based capital standards adopted by such agencies.
  `(4) DEFINITION OF CAPITAL ZONES- Unless otherwise reclassified pursuant
  to paragraph (7), for purposes of this section--
  `(A) ZONE 1- Zone 1 includes any insured bank that--
  `(i)(I) maintains a risk-based capital ratio that is significantly in excess
  of the required minimum ratio and Tier 1 capital that is significantly in
  excess of the required minimum for Tier 1 capital; or
  `(II) meets the required minimum risk-based capital ratio and maintains
  Tier 1 capital that is substantially in excess of the required minimum
  for Tier 1 capital; and
  `(ii) maintains capital that meets or exceeds the required minimum ratio
  for each other relevant capital measure.
  `(B) ZONE 2- Zone 2 includes any insured bank that--
  `(i) maintains capital in an amount that meets or exceeds the required
  minimum ratio for each relevant capital measure; and
  `(ii) is not within Zone 1.
  `(C) ZONE 3- Zone 3 includes any insured bank--
  `(i) that maintains capital that is below the required minimum ratio for
  any relevant capital measure; and
  `(ii) that is not within Zone 4 or Zone 5.
  `(D) ZONE 4- Zone 4 includes any insured bank--
  `(i) that maintains capital that is significantly below the required minimum
  ratio for any relevant capital measure, but that exceeds the applicable
  critical capital level; or
  `(ii) that is otherwise classified within Zone 4 under the provisions of
  this section.
  `(E) ZONE 5- Zone 5 includes any insured bank that maintains capital at
  or below the applicable critical capital level.
  `(5) REQUIRED MINIMUM RATIO- For purposes of this section, the required
  minimum ratio shall be the minimum acceptable capital level adopted by
  the appropriate Federal banking agency by regulation or guideline for each
  relevant capital measure.
  `(6) CRITICAL CAPITAL LEVEL-
  `(A) IN GENERAL- The critical capital level shall be a level of capital
  that will, as a general matter, permit resolution of an insured bank's
  problems without significant financial loss to the Bank Insurance Fund. The
  critical capital level shall equal or exceed a ratio of Tier 1 capital to
  total assets of 1.5 percent.
  `(B) SEPARATE CRITICAL CAPITAL LEVELS- Consistent with subparagraph (A),
  separate critical capital levels may be established by the appropriate
  Federal banking agencies for different classes of insured banks according
  to size, activities, condition of assets, local economic conditions,
  or any other relevant factor consistent with the purposes of this section.
  `(7) RECLASSIFICATION- Notwithstanding paragraph (1), any insured bank
  that otherwise falls within Zone 1 or Zone 2 shall be deemed to be within
  Zone 3 if the appropriate Federal banking agency determines that the bank
  is in an unsafe and unsound condition. Any such bank, and any other bank
  within Zone 3 which the appropriate Federal banking agency determines to
  be in an unsafe and unsound condition, may be reclassified to Zone 4 by
  the appropriate Federal banking agency.
  `(c) REGULATIONS AND OTHER AUTHORITY-
  `(1) IN GENERAL- Each appropriate Federal banking agency, in consultation
  with the other appropriate Federal banking agency, shall promulgate
  regulations and take such other actions as are necessary to implement the
  provisions of this section. Each appropriate Federal banking agency is
  authorized to issue orders and take such other actions as are necessary
  or appropriate to carry out the purposes of this section.
  `(2) CAPITAL ZONES- Consistent with the purposes of this section,
  each appropriate Federal banking agency shall by regulation specify the
  applicable minimum capital ratios for each relevant capital measure in
  each capital zone established by this section.
  `(3) CRITICAL CAPITAL LEVEL- Consistent with subsection (b)(6), each
  appropriate Federal banking agency shall by regulation specify the critical
  capital level for each relevant capital measure consistent with the purposes
  and provisions of this section.
  `(4) CONSULTATION- In promulgating the regulations described in paragraphs
  (2) and (3), each appropriate Federal banking agency shall consult with
  the Corporation.
  `(d) PROVISIONS APPLICABLE TO BANKS AND COMPANIES WITHIN ZONE 1-
  `(1) EXPANSION BY ZONE 1 BANKS-
  `(A) IN GENERAL- Notwithstanding any other provision of the banking laws,
  any insured bank that qualifies under subparagraph (B) may--
  `(i) DE NOVO BRANCHES- Subject to the notice requirement of paragraph (3)(A),
  establish and maintain a new branch office at any location permitted under
  the banking laws, so long as the branch office is not the first branch
  office of the bank in a given State and the bank has an outstanding or
  satisfactory record of meeting community credit needs as determined pursuant
  to section 807 of the Community Reinvestment Act of 1977 (12 U.S.C. 2906);
  `(ii) COMMENCEMENT OF PERMISSIBLE ACTIVITIES DE NOVO- Subject to the notice
  requirement of paragraph (3)(A), commence, either directly or through
  a subsidiary, any activity that has been determined by the appropriate
  Federal banking agency under the banking laws to be permissible for such
  insured bank or such subsidiary; and
  `(iii) MERGERS AND ACQUISITIONS BY BANKS-  Subject to any applicable notice,
  application, and approval requirement of the banking laws as modified by
  paragraph (3)(B)--
  `(I) merge or consolidate with any other insured bank, acquire directly
  or indirectly the assets of any other insured bank, or assume liability
  directly or indirectly to pay any deposits made in any other insured bank; or
  `(II) acquire, directly or indirectly, the assets (other than assets acquired
  in the ordinary course of business), or all of the voting shares or control,
  of any company (other than an insured bank) that is engaged solely in
  activities that have been determined by regulation by the appropriate Federal
  banking agency under the banking laws to be permissible for an insured bank.
  `(B) QUALIFYING BANKS- An insured bank qualifies under this subparagraph
  if, both prior to and following consummation of the transaction or other
  expansion--
  `(i) the insured bank is within Zone 1; and
  `(ii) in the event the insured bank is controlled by a financial services
  holding company, the company qualifies as a Zone 1 financial services
  holding company as described in paragraph (2).
  `(2) FINANCIAL SERVICES HOLDING COMPANIES WITHIN ZONE 1-
  `(A) A financial services holding company qualifies as a Zone 1 financial
  services holding company if insured depository institutions representing
  at least 80 percent of the assets of all insured depository institutions
  controlled by the company are within Zone 1, and the balance of the insured
  depository institutions controlled by the company are within Zone 2.
  `(B) For purposes of subparagraph (A), an insured depository institution
  other than an insured bank shall be deemed to be within Zone 1 if, based
  upon the risk-based capital rule and leverage limit applicable to the
  institution, it meets the capital ratios adopted by the appropriate Federal
  banking agency of the financial services holding company for purposes of
  subsection (b)(4)(A).
  `(3) PROCEDURES AND STANDARDS FOR REVIEW-
  `(A) SUBSEQUENT NOTICE FOR CERTAIN ACTIONS- For actions described in
  paragraphs (1)(A)(i) and (1)(A)(ii), the insured bank shall provide the
  appropriate Federal banking agency with written notice no later than 30
  days following such action.
  `(B) LIMITATION ON REVIEW PERIOD FOR PROPOSED TRANSACTIONS- Notwithstanding
  any other provision of the banking laws, the appropriate Federal banking
  agency shall make a decision to approve or disapprove any proposed
  transaction described in paragraph (1)(A)(iii) no later than 45 days after
  the date of receipt of the completed notice or application.
  `(C) REVIEW STANDARDS- The appropriate Federal banking agency may disapprove
  any proposed transaction described in subsection (c)(1)(A)(iii) involving
  an insured bank within Zone 1 only--
  `(i) pursuant to section 18(c)(5) (A) or (B); or
  `(ii) if the appropriate Federal banking agency determines--
  `(I) that the insured bank or any other insured bank controlled by the
  same financial services holding company is engaging in an unsafe and
  unsound practice or will be in an unsafe and unsound condition following
  the transaction; or
  `(II) that the proposed transaction is inconsistent with the convenience
  and needs of the community to be served.
  `(D) FORM OF NOTICES- Each appropriate Federal banking agency shall by
  regulation establish the form and content of the notice required under
  subparagraph (A).
  `(4) EFFECT OF NOTICE UNDER THIS SUBSECTION-
  `(A) SUBSEQUENT NOTICE- Any notice required under paragraph (3)(A) shall
  supersede any other notice or application requirement under the banking
  laws imposed on the insured bank in connection with the proposed transaction
  or other expansion.
  `(B) OTHER REQUIREMENTS CONTINUE TO APPLY TO ACTIVITY- Except as provided
  in this subsection, nothing in this subsection shall relieve any insured
  bank or any subsidiary thereof from the provisions of any law or regulation
  applicable to that institution or subsidiary.
  `(5) RESTRICTIONS ON EXPANSION RESULTING IN RECLASSIFICATION BELOW ZONE 2-
  `(A) The appropriate Federal banking agency shall not approve or permit any
  investment, expansion, acquisition, or other proposal subject to review under
  any provision of the banking laws that would result in reclassification of
  an insured bank from Zone 1 to Zone 3 or 4, unless the agency finds that
  the transaction substantially improves the financial condition of an insured
  bank involved in the transaction or is consistent with a capital restoration
  plan approved by the agency and meets the other standards required to be
  reviewed by the agency in considering such proposals under the banking laws.
  `(B) The appropriate Federal banking agency shall not approve or permit
  any investment, expansion, acquisition, or other proposal subject to review
  under any provision of the banking laws that would result in reclassification
  of an insured bank to Zone 5.
  `(6) LOSS OF ZONE 1 STATUS AFTER EXPANSION-
  `(A) CAPITAL MUST BE PROMPTLY RESTORED- Any financial services holding
  company that--
  `(i) engages, directly or indirectly, in any new financial activity,
  directly or indirectly controls any company engaged in any new financial
  activity, or is controlled by a diversified holding company, and
  `(ii) does not continue to qualify under subsection (d)(2), or does not
  qualify under such subsection within such time period as is specified by
  the appropriate Federal banking agency pursuant to section 4(k) of the
  Financial Services Holding Company Act of 1991 (12 U.S.C. 1843(k)),
must either restore the capital of insured banks controlled by such financial
services holding company to at least the levels required for the company to
requalify under subsection (d)(2) or take the actions required in subparagraph
(B). A financial services holding company shall be given a period of at
least 45 days within which to restore such capital.
  `(B) REQUIRED ACTIONS- Any financial services holding company that does
  not requalify under subsection (d)(2) within the applicable period under
  subparagraph (A) must--
  `(i) immediately post a bond in an amount equal to the amount necessary
  to restore the capital of the insured depository institutions controlled
  by such company to at least the level required to permit the company
  to requalify under subsection (d)(2) as of the date the bond is posted,
  which bond shall be subject to forfeiture as necessary to reimburse the
  Corporation for any funds expended for resolution of the insured depository
  institutions controlled by such company; and
  `(ii)(I) within the time period provided in subsection (i), submit to the
  appropriate Federal banking agency and, after its acceptance, implement
  a capital plan that meets the requirements of such subsection and will
  restore the relevant capital measures to the level necessary to requalify
  under subsection (d)(2); or
  `(II) within one year from the date the company originally failed to meet
  the requirements of subsection (d)(2)--
  `(aa) divest any interest in any insured depository institution; or
  `(bb) terminate all direct or indirect new financial activities and divest
  any interest in any company engaged in any such activity.
  `(C) If the financial services holding company does not complete the actions
  required by either clause (i) or (ii) of subparagraph (B), the appropriate
  Federal banking agency may appoint a conservator for any insured depository
  institution controlled by such company that maintains capital below the
  level necessary for the company to requalify under subsection (d)(2).
  `(D) ALTERATION OF COMPLIANCE PERIOD-
  `(i) EXTENSION OF COMPLIANCE PERIOD- The appropriate Federal banking
  agency may extend the period provided in subparagraph (B)(ii)(II) for up to
  one year if the agency finds that the financial services holding company
  has taken significant steps toward restoring the capital of the insured
  depository institutions controlled by that company to at least the levels
  required for the company to requalify under subsection (d)(2).
  `(ii) SHORTENING OF COMPLIANCE PERIOD FOR FAILURE TO MAINTAIN CAPITAL
  IN ZONE 1- The appropriate Federal banking agency may, by regulation,
  establish shorter divestiture and termination periods under subparagraph
  (B)(ii)(II) applicable to any financial services holding company that
  fails to continue to qualify under subsection (d)(2) after having once
  fallen out of qualification from subsection (d)(2).
  `(E) APPLICABILITY TO DIVERSIFIED HOLDING COMPANIES- If a financial
  services holding company to which this paragraph applies is controlled
  by a diversified holding company, and the financial services holding
  company does not complete the actions under either subparagraph (A) or (B)
  (other than clause (ii)(II)(bb) of subparagraph (B)), then the diversified
  holding company must, within the same time period specified in subparagraph
  (B)(ii)(II), divest any interest in the financial services holding company
  or terminate all direct or indirect activities not permitted for a financial
  services holding company.
  `(e) MANDATORY SUPERVISORY ACTIONS APPLICABLE TO INSURED BANKS WITHIN ZONE 2-
  `(1) RESTRICTIONS ON EXPANSION-
  `(A) EXPANSION RESULTING IN RECLASSIFICATION-
  `(i) The appropriate Federal banking agency shall not approve or permit
  any investment, expansion, acquisition, or other proposal subject to
  review under the banking laws that would result in reclassification of an
  insured bank to Zone 3 or 4, unless the agency finds that the transaction
  substantially improves the financial condition of an insured bank involved in
  the transaction or is consistent with a capital restoration plan approved
  by the agency and meets the other standards required to be reviewed by
  the agency in considering such proposals under the banking laws.
  `(ii) The appropriate Federal banking agency shall not approve or permit
  any investment, expansion, acquisition, or other proposal subject to review
  under the banking laws that would result in reclassification to Zone 5.
  `(B) UNSAFE AND UNSOUND PRACTICES OR CONDITION- The appropriate Federal
  banking agency shall not approve any investment, expansion, acquisition,
  or other proposal involving an insured bank within Zone 2 or a financial
  services holding company which controls an insured bank within Zone 2 if
  the appropriate Federal banking agency determines that the insured bank
  involved in the investment, expansion, acquisition, or other proposal, or
  any other insured bank controlled by the same financial services holding
  company is engaging in an unsafe and unsound practice or is in an unsafe
  and unsound condition.
  `(2) CAPITAL DISTRIBUTIONS-
  `(A) LIMITATION- No insured bank within Zone 2 shall make any capital
  distribution that would cause the bank to be reclassified within Zone 4
  or Zone 5. An insured bank within Zone 2 may make a capital distribution
  that would cause the bank to be reclassified within Zone 3, if the bank
  provides the appropriate Federal banking agency with 30 days written notice
  of such distribution and the agency has not issued a notice of disapproval.
  `(B) STANDARDS FOR DISAPPROVAL- The appropriate Federal banking agency
  shall not disapprove payment of a capital distribution by an insured bank
  under this subparagraph unless the appropriate Federal banking agency
  determines that the capital distribution will not enhance the bank's
  ability to restore its capital to Zone 2 or otherwise determines that the
  distribution is not in the public interest.
  `(3) EXCEPTIONS TO MANDATORY SUPERVISORY ACTIONS- The appropriate Federal
  banking agency may modify, defer, or remove any mandatory supervisory
  action applicable under this section to an insured bank within Zone 2
  or a company that controls an insured bank within Zone 2 if the agency
  determines in writing that such action is in the public interest.
  `(f) PROVISIONS APPLICABLE TO INSTITUTIONS WITHIN ZONE 3-
  `(1) MANDATORY SUPERVISORY ACTIONS- In addition to the supervisory actions
  applicable under Zones 1 and 2, the following mandatory supervisory actions
  shall apply with respect to any insured bank within Zone 3:
  `(A) CAPITAL RESTORATION PLAN- Every insured bank within Zone 3 shall,
  within the time period provided in subsection (i), submit to the appropriate
  Federal banking agency and, after its acceptance, implement a capital
  plan that meets the requirements of subsection (i) and will restore the
  relevant capital measures of the bank to at least the levels required for
  classification within Zone 2.
  `(B) RESTRICTION ON CAPITAL DISTRIBUTIONS.
  `(i) PRIOR AGENCY APPROVAL REQUIRED- No insured bank within Zone 3 shall
  make any capital distribution, or pay any management fee to a person or
  affiliate controlling such bank, that would cause the bank to be reclassified
  within Zone 4 or Zone 5. No insured bank within Zone 3 shall make any other
  capital distribution or pay any other such management fee unless the bank
  receives the prior approval of the appropriate Federal banking agency.
  `(ii) STANDARDS FOR APPROVAL- The appropriate Federal banking agency
  may approve payment of a capital distribution or management fee by an
  insured bank within Zone 3 only if the agency determines that the capital
  distribution will enhance the ability of the bank promptly to restore its
  capital to Zone 2 or is otherwise in the public interest.
  `(C) RESTRICTION ON EXPANSION- The appropriate Federal banking agency
  shall not approve or permit any investment, expansion, acquisition or other
  similar action subject to review under the banking laws by an insured bank
  within Zone 3, by a financial services holding company that controls an
  insured bank within Zone 3, or by any affiliate of the insured bank unless
  the agency finds that the transaction furthers achievement of the capital
  restoration plan approved by the agency for the insured bank and meets the
  other standards required to be reviewed by the agency in considering such
  proposals under the banking laws.
  `(D) EFFECT ON FINANCIAL SERVICES AND DIVERSIFIED HOLDING COMPANIES- Any
  financial services holding company and any diversified holding company
  that controls an insured bank within Zone 3 shall, after 45 days after
  the latest of the date on which the bank becomes a Zone 3 bank, the
  date on which the financial services holding company acquires the bank,
  or the effective date of this provision, become subject to the following
  requirements and shall remain subject to such requirements until such time
  as the capital of the bank is restored to at least Zone 2 or the company
  divests any interest in the bank:
  `(i) CONSOLIDATED CAPITAL REQUIREMENTS- The financial services holding
  company and diversified holding company shall maintain capital, for each
  relevant capital measure, on a consolidated basis, at least equal to the
  required minimum capital ratio applicable to the principal bank subsidiary
  of the financial services holding company as defined in section 3(q)(2).
  `(ii) RESTRICTION ON CAPITAL DISTRIBUTION- The diversified holding
  company may make a capital distribution only with the prior approval of
  the appropriate Federal banking agency.
  `(iii) OTHER PROVISIONS OF THIS SECTION- The financial services holding
  company (and any affiliate it controls) and each financial affiliate
  controlled by the diversified holding company shall be subject to the
  mandatory supervisory actions of this paragraph as if the company were an
  insured bank within Zone 3.
  `(E) RECLASSIFICATION OF ZONE 3 INSTITUTIONS TO ZONE 4- Without being
  relieved of any of the requirements applicable to insured banks within
  Zone 3, an insured bank within Zone 3 shall immediately be reclassified
  as within Zone 4, and shall be subject to all of the provisions applicable
  to insured banks within Zone 4, if--
  `(i) the bank does not submit the capital restoration plan required in
  subparagraph (A) within the time required by the appropriate Federal
  banking agency; or
  `(ii) the appropriate Federal banking agency is not satisfied that the
  bank is making every effort in good faith to fulfill completely the capital
  plan within the schedule approved by the agency.
  `(2) EXCEPTIONS TO MANDATORY SUPERVISORY ACTIONS- The appropriate Federal
  banking agency may modify, defer, or remove any mandatory supervisory
  action applicable under this section to an insured bank within Zone 3
  or a company that controls an insured bank within Zone 3 if the agency
  determines in writing that such action is in the public interest.
  `(3) DISCRETIONARY SUPERVISORY ACTIONS- Without limiting in any way
  the existing authority of any appropriate Federal banking agency, the
  appropriate Federal banking agency may, at any time, based upon a finding
  that the insured bank is within Zone 3--
  `(A) RESTRICT GROWTH- Restrict or eliminate growth of the bank's assets,
  or require contraction of the assets of the bank.
  `(B) RESTRICT DISTRIBUTIONS- Restrict the insured bank and any company
  that controls the insured bank from making any capital distribution.
  `(C) LIMIT INCREASE IN LIABILITIES--Limit any increase in, or order the
  reduction of, any liabilities of the bank.
  `(D) REQUIRE ISSUANCE OF NEW CAPITAL- Require the bank to issue new capital
  in any form and in any amount sufficient to restore the bank to at least
  the capital levels required for Zone 2.
  `(E) RESTRICT ACTIVITIES- Require the bank to terminate, reduce or alter
  any activity, if the agency determines that the activity creates excessive
  risk to the bank.
  `(F) DISMISS DIRECTORS OR CHIEF OFFICERS-
  `(i) For cause, require the bank to dismiss from office at the bank
  any or all of the following persons if the person accepted employment,
  accepted a new position, or renewed any contract for employment in the
  same position at the insured bank following enactment of the Financial
  Institutions Safety and Consumer Choice Act of 1991 and the person has
  been employed in that position at the insured bank for at least 180 days--
  `(I) any member of the institution's board of directors;
  `(II) the chief executive officer;
  `(III) the chief financial officer; or
  `(IV) any other executive officer.
  `(ii) Dismissal under clause (i) shall not be construed as removal under
  section 8 of this Act.
  `(G) LIMIT EXECUTIVE COMPENSATION- Require the bank to reduce or eliminate
  any or all of the following for any executive officer who accepted
  employment, accepted a new position, or renewed any contract for employment
  as an executive officer at the bank following enactment of the Financial
  Institutions Safety and Consumer Choice Act of 1991--
  `(i) any bonus;
  `(ii) any compensation at a rate exceeding that officer's average rate of
  compensation during the previous 12 calendar months; and
  `(iii) any payment that is or would be due under any employment severance
  contract.
  `(H) REQUIRE NEW ELECTION OF DIRECTORS- Require a new election of the
  board of directors of the bank and designate such individuals as the agency
  deems appropriate to serve on the board of directors.
  `(I) REQUIRE DIVESTITURE, LIQUIDATION OR CLOSURE OF AFFILIATE- The
  appropriate Federal banking agency may require any insured bank in Zone
  3 or any company that controls an insured bank in Zone 3 to divest any
  affiliate (other than an insured bank) if the appropriate Federal banking
  agency determines that the affiliate is in danger of default and poses
  significant risk to the liquidity or solvency of the bank or is likely to
  cause a significant dissipation of its assets or earnings.
  `(4) NOTICE TO THE CORPORATION- The appropriate Federal banking agency
  shall give the Corporation prompt notice of any action under this subsection.
  `(g) PROVISIONS APPLICABLE TO INSTITUTIONS WITHIN ZONE 4-
  `(1) MANDATORY SUPERVISORY ACTIONS- In addition to the supervisory actions
  applicable under Zone 1, and the mandatory supervisory sections under
  Zones 2 and 3, the following mandatory supervisory actions shall apply
  with respect to any insured bank within Zone 4:
  `(A) CAPITAL RESTORATION PLAN- Unless an insured bank within Zone 4 has
  submitted a capital restoration plan acceptable to the appropriate Federal
  banking agency pursuant to subsection (f), it shall, within the time provided
  under subsection (i), submit to the appropriate Federal banking agency and,
  after its acceptance, implement a capital plan that meets the requirements
  of subsection (i) and will restore the relevant capital measures of the
  institution to at least the levels required for classification within Zone 2.
  `(B) PROHIBITION ON CAPITAL DISTRIBUTIONS- No insured bank within Zone 4
  shall make any capital distribution or pay any management fee to a person
  or affiliate controlling such bank.
  `(C) PROHIBITION ON EXPANSION- No insured bank within Zone 4, or financial
  services holding company controlling any insured bank within Zone 4, shall,
  directly or indirectly--
  `(i) acquire any interest in any insured depository institution or any
  company that is not an insured depository institution;
  `(ii) establish or acquire additional branch offices in any State; or
  `(iii) engage in any new activity.
  `(D) EFFECT ON FINANCIAL SERVICES AND DIVERSIFIED HOLDING COMPANIES- Any
  financial services holding company and any diversified holding company
  that controls  an insured bank within Zone 4 shall, until such time as the
  relevant capital measures of the insured bank are restored to at least the
  levels required for classification within Zone 2 or the company divests any
  interest in the bank, be subject to the requirements of clauses (i) and (ii)
  of subsection (f)(1)(D) and to the mandatory supervisory actions of this
  paragraph as if the company were an insured bank within the relevant zone.
  `(E) LIMITATION ON ASSET GROWTH-
  `(i) An insured bank within Zone 4 shall not increase its total assets,
  except as permitted under clause (ii).
  `(ii) Notwithstanding clause (i), the appropriate Federal banking agency
  may permit a bank within Zone 4 to increase its total assets by an amount
  not exceeding the amount of net interest credited to the bank's deposit
  liabilities, if--
  `(I) the agency has accepted the bank's capital restoration plan;
  `(II) any increase in assets is accompanied by an increase in capital in
  an amount not less than the increase in assets multiplied by the respective
  relevant capital measures for Zone 2 banks; and
  `(III) the bank's capital levels increase at a rate sufficient to enable the
  bank to satisfy the bank's capital restoration plan within a reasonable time.
  `(F) LIMITATION ON COMPENSATION- An insured bank within Zone 4 may not pay
  to any executive officer who accepted employment, accepted a new position,
  or renewed any contract for employment as an executive officer at the
  insured bank following enactment of the Financial Institutions Safety and
  Consumer Choice Act of 1991--
  `(i) any bonus; or
  `(ii) any compensation at a rate exceeding that officer's average rate of
  compensation during the previous 12 calendar months.
  `(2) EXCEPTIONS TO MANDATORY SUPERVISORY ACTIONS- The appropriate Federal
  banking agency may modify, defer, or remove any mandatory supervisory action
  authorized by this section from an insured bank within Zone 4 or a company
  that controls an insured bank within Zone 4 if the agency determines in
  writing that such action is in the public interest.
  `(3) DISCRETIONARY SUPERVISORY ACTIONS- Without limiting in any way the
  existing authority of any appropriate Federal banking agency, the appropriate
  Federal banking agency may, at any time, take any of the following actions
  based upon a finding that the insured bank is within Zone 4--
  `(A) DISCRETIONARY SUPERVISORY ACTIONS PERMITTED UNDER ZONE 2 OR ZONE 3-
  Take any discretionary supervisory action authorized under subsection
  (f)(3) in connection with an insured bank within Zone 4 or a company that
  controls an insured bank within Zone 4.
  `(B) RESTRICT INTERAFFILIATE TRANSACTIONS- Restrict or eliminate any
  transaction between the insured bank and any affiliate.
  `(C) REQUIRE DIVESTITURE OR LIQUIDATION OF AFFILIATE- Require the bank or
  any company that controls the bank to divest any affiliate that is not an
  insured bank, if the appropriate Federal banking agency determines that
  the affiliate is in danger of default.
  `(D) LIMIT EXECUTIVE COMPENSATION- Require the bank to reduce or eliminate
  any compensation to any executive officer who accepted employment,
  accepted a new position, or renewed any contract for employment as an
  executive officer at the insured bank following enactment of the Financial
  Institutions Safety and Consumer Choice Act of 1991 if the appropriate
  Federal banking agency determines the compensation to be excessive.
  `(E) REQUIRE DIVESTITURE OF BANK- Require any company that controls a bank
  within Zone 4 to divest the bank, if the appropriate Federal banking agency
  determines that such divestiture would improve the financial condition
  and future prospects of the bank.
  `(F) DISMISS DIRECTORS OR CHIEF OFFICERS-
  `(i) Require the insured bank to dismiss from office at the bank any or all
  of the following persons if the person accepted employment, accepted a new
  position, or renewed any contract for employment in the same position at the
  bank following enactment of the Financial Institutions Safety and Consumer
  Choice Act of 1991 and the person has been employed in that position at
  the bank for at least 180 days--
  `(I) any member of the bank's board of directors;
  `(II) the chief executive officer;
  `(III) the chief financial officer; or
  `(IV) any other executive officer.
  `(ii) Dismissal under clause (i) shall not be construed as removal under
  section 8 of this Act.
  `(G) CONSERVATORSHIP- Appoint a conservator for the bank.
  `(4) NOTICE TO THE CORPORATION- The appropriate Federal banking agency
  shall give the Corporation prompt notice of any action under this subsection.
  `(h) PROVISIONS APPLICABLE TO BANKS WITHIN ZONE 5-
  `(1) MANDATORY SUPERVISORY ACTIONS- The appropriate Federal banking agency
  shall, not later than 30 days after determining that an insured bank is
  within Zone 5--
  `(A) require the sale or merger of the insured bank; or
  `(B) appoint a conservator or receiver for the bank and any such
  conservator or receiver shall have full authority, in its sole discretion,
  to liquidate or sell the insured bank, to take any actions authorized
  under subsections (f) and (g) not inconsistent with the powers of the
  conservator or receiver, and to take any other actions authorized pursuant
  to the provisions applicable to conservators and receivers, respectively,
  under the banking laws.
  `(2) EXCEPTIONS TO MANDATORY SUPERVISORY ACTIONS- The appropriate Federal
  banking agency may modify, defer, or remove any mandatory supervisory
  action applicable under this section to an insured bank within Zone 5
  or a company that controls an insured bank within Zone 5 if the agency
  determines in writing, with the concurrence of the Corporation, that such
  action is in the public interest.
  `(i) CAPITAL RESTORATION PLANS-
  `(1) CONTENTS OF PLAN- A capital restoration plan submitted under this
  section shall be a feasible plan for promptly restoring the levels of capital
  for all relevant capital measures of the insured bank to at least the levels
  required by the subsection pursuant to which the capital restoration plan
  is ordered. A capital restoration plan must--
  `(A) specify the levels of capital the bank will achieve and maintain;
  `(B) describe the steps the bank will take to restore each of the relevant
  capital measures for the bank to the required levels;
  `(C) establish a schedule for promptly completing the capital restoration
  plan;
  `(D) specify the types and levels of activities in which the bank will
  engage during the pendency of the capital restoration plan;
  `(E) explain the steps that the bank will take to comply with any mandatory
  and discretionary requirements imposed under the banking laws; and
  `(F) be acceptable to the appropriate Federal banking agency.
  `(2) DEADLINES FOR SUBMISSION OF CAPITAL RESTORATION PLAN- Each appropriate
  Federal banking agency shall by regulation establish deadlines that provide
  insured banks a reasonable period of time to submit a capital restoration
  plan acceptable to the agency. Unless the agency shall determine that a
  greater amount of time is necessary, the time allowed by regulation should
  be no greater than 30 days.
  `(3) AGENCY REVIEW OF CAPITAL RESTORATION PLANS- The appropriate Federal
  banking agency shall review and act on a capital restoration plan not
  later than 30 days after the plan is submitted, except that such period
  may be extended by the appropriate Federal banking agency.
  `(j) Judicial Review of Agency Action-
  `(1) JURISDICTION-
  `(A) FILING OF PETITION- A person aggrieved by an action of an appropriate
  Federal banking agency under this section may obtain review of that action
  by filing, within ten days after receiving notice of the agency action,
  a written petition requesting that the action of the agency be modified,
  terminated or set aside.
  `(B) PLACE FOR FILING- A petition filed pursuant to this subsection shall
  be filed in the United States Court of Appeals for the District of Columbia
  Circuit or the United States Court of Appeals for the circuit in which the
  concerned bank maintains its home office. For purposes of this subparagraph,
  the `concerned bank' shall mean the bank whose classification within a
  particular zone is the basis for the agency action of which the person
  aggrieved complains.
  `(C) PERSON AGGRIEVED DEFINED- A person aggrieved by the action of an
  appropriate Federal banking agency under this section shall mean--
  `(i) the company ordered to make a divestiture or terminate activities,
  with respect to an order under this section directing a company to divest
  an insured bank or other company or to terminate activities pursuant to
  this section;
  `(ii) the insured bank or company that is the subject of a mandatory or
  discretionary supervisory action and any company that controls such a
  bank, with respect to a mandatory or discretionary supervisory action
  taken under this section for banks within Zone 3, Zone 4 or Zone 5;
  `(iii) the person dismissed, with respect to an order under this section
  for the dismissal of a director, chief executive officer, chief financial
  officer or other executive officer; and
  `(iv) the person whose compensation, bonus or severance payment has been
  reduced or eliminated, with respect to an order under this section reducing
  or eliminating such payments due an executive officer.
  `(2) SCOPE OF REVIEW-
  `(A) IN GENERAL- Except as provided in subparagraph (B), action taken by an
  appropriate Federal banking agency under this section shall be modified,
  terminated, or set aside only if the court finds on the record on which
  the agency acted that the agency's action was arbitrary, capricious,
  an abuse of discretion, or otherwise not in accordance with law.
  `(B) ALTERNATE REVIEW OF CERTAIN AGENCY ACTIONS- Notwithstanding
  the provisions of this subsection, a person aggrieved by an order
  of an appropriate Federal banking agency placing an insured bank into
  conservatorship or receivership may pursue any judicial review of such an
  order that is otherwise available under the banking laws.
  `(3) UNAVAILABILITY OF INJUNCTIVE RELIEF- The commencement of proceedings
  for judicial review pursuant to this subsection shall not operate as a
  stay of any action taken by the appropriate Federal banking agency. No
  court shall have jurisdiction to stay, enjoin or otherwise delay agency
  action taken under this section pending judicial review of that action.
  `(4) EXPEDITED REVIEW- Petitions complaining of agency action under this
  section shall be given expedited review by the United States Circuit Courts
  of Appeals.
  `(5) WITHDRAWAL OF JURISDICTION- Except as provided in this subsection,
  no court shall have jurisdiction to affect by injunction or otherwise the
  issuance or effectiveness of any action of the appropriate Federal banking
  agency under this section or to review, modify, suspend, terminate, or
  set aside such agency action.'.
  (b) ENFORCEMENT- Revision of Enforcement Provisions. Section 8(i) of the
  Federal Deposit Insurance Act is amended--
  (1) in the first sentence of paragraph (1), by inserting `or under section
  35' after `section'; and
  (2) in paragraph (2)(A)(ii), by inserting `, or final order under section
  35' after `section'.
  (c) JURISDICTION-
  (1) AMENDMENTS TO TITLE 28, UNITED STATES CODE- Chapter 91 of title 28 of
  the United States Code is amended--
  (A) by adding at the end the following new section:
`SEC. 1510. JURISDICTION FOR CERTAIN CLAIMS AGAINST APPROPRIATE FEDERAL
BANKING AGENCIES.
  `The United States Claims Court shall have exclusive jurisdiction to render
  judgment upon any claim for damages against the United States by any person
  who has petitioned for judicial review of an action of an appropriate Federal
  banking agency pursuant to section 35 of the Federal Deposit Insurance Act,
  where such action has been, at the conclusion of judicial review proceedings,
  modified, terminated or set aside by a court of competent jurisdiction. The
  claim shall be limited to actual damages caused by the agency action that
  has been modified, terminated or set aside, and shall be filed within 10
  days of the final order granting the relief sought in the petition.'; and
  (B) in the table of sections, by inserting after the item relating to
  section l509 the following new item:
`1510. Jurisdiction for certain claims against appropriate Federal banking
agencies.'.
  (2) WITHDRAWAL OF JURISDICTION- Except as provided in section 1510 of
  title 28, United States Code, no court shall have jurisdiction to hear
  a claim for damages for agency action under section 35 of the Federal
  Deposit Insurance Act.
  (d) ADDITIONAL GROUNDS FOR APPOINTMENT OF FDIC AS CONSERVATOR OR RECEIVER
  FOR STATE BANK- Section 11(c)(5) of the Federal Deposit Insurance Act (12
  U.S.C. 1821(c)(5)) is amended by adding at the end thereof the following
  new subparagraphs:
  `(I) For appointment of the Corporation as a receiver, classification of
  the institution as a Zone 5 institution by the appropriate Federal banking
  agency pursuant to section 35 of this Act.
  `(J) For appointment of the Corporation as a conservator, classification
  of the institution as a Zone 4 or Zone 5 institution by the appropriate
  Federal banking agency pursuant to section 35 of this Act.'.
  (e) ADDITIONAL GROUND FOR APPOINTING CONSERVATOR FOR NATIONAL BANKS-
  Section 203(a) of the Bank Conservation Act (12 U.S.C. 203(a)) is amended--
  (1) by inserting `or was' after `there is' in paragraph (5);
  (2) by striking `or' at the end of paragraph (7);
  (3) by striking the period at the end of paragraph (8) and inserting instead
  `; or'; and
  (4) by adding at the end the following new paragraph:
  `(9) the bank is classified as a Zone 4 or Zone 5 institution by the
  appropriate Federal banking agency pursuant to section 35 of the Federal
  Deposit Insurance Act.'.
  (f) APPOINTMENT OF CONSERVATORS AND RECEIVERS BY THE BOARD OF GOVERNORS-
  Section 9 of the Federal Reserve Act (12 U.S.C. 321 et seq.) is amended
  by adding at the end the following new paragraph--
  `(24) APPOINTMENT OF CONSERVATOR OR RECEIVER-
  `(A) The Board of Governors of the Federal Reserve System may appoint
  a receiver for an insured State bank (except a District bank chartered
  by the Director of the Office of Depository Institutions Supervision) in
  the same manner and to the same extent that the Director of the Office of
  Depository Institutions Supervision may appoint a receiver for a national
  banking association pursuant to the first section of the Act of June 30,
  1876 (12 U.S.C. 191).
  `(B) The Board of Governors of the Federal Reserve System may appoint a
  conservator for an insured State bank (except a District bank chartered
  by the Director of the Office of Depository Institutions Supervision) in
  the same manner and to the same extent that the Director of the Office of
  Depository Institutions Supervision may appoint a conservator for a national
  banking association pursuant to section 203 of the Bank Conservation Act
  (12 U.S.C. 203).'.
  (g) APPOINTMENT OF CONSERVATORS AND RECEIVERS FOR DISTRICT BANKS-
  Section 5(d)(2)(C) of the Home Owners' Loan Act (12 U.S.C. 1464(d)(2)(C))
  is amended--
  (1) by inserting `a District bank chartered by the Director' after `State
  savings association';
  (2) by striking `or' at the end of clause (v);
  (3) in clause (vi)--
  (A) by inserting `or was' after `there is'; and
  (B) by striking the period and inserting instead `; or'; and
  (4) by inserting after clause (vi) the following new clause:
  `(vii) in the case of a District bank chartered by the Director--
  `(I) for appointment of a receiver, classification of the bank as a Zone 5
  institution by the Director pursuant to section 35 of the Federal Deposit
  Insurance Act; or
  `(II) for appointment of a conservator, classification of the bank as a
  Zone 4 or a Zone 5 institution by the Director pursuant to section 35 of
  the Federal Deposit Insurance Act.'.
  (h) APPOINTMENT OF CONSERVATORS AND RECEIVERS FOR INSURED STATE BANKS-
  Section 11(c) of the Federal Deposit Insurance Act (12 U.S.C. 1821(c))
  is amended by inserting after paragraph (9) the following new paragraph:
  `(10) The Board of Governors of the Federal Reserve System (the `Board')
  shall appoint the Corporation as receiver for any insured State bank (other
  than a District bank chartered by the Office of Depository Institutions
  Supervision) that the Board classifies as within Zone 5 and for which the
  Board determines to appoint a receiver authorized by section 35(h).'.
  (i) EFFECTIVE DATE- The amendments made by this section shall become
  effective three years after the date of enactment of this Act, except that
  such amendments shall become effective January 1, 1993, with respect to
  financial services holding companies with bank subsidiaries meeting the
  requirements of Zone 1 or 2 as described in section 35 of the Federal
  Deposit Insurance Act that wish to engage in any new financial activity.
Subtitle F--Nationwide Banking and Branching
SEC. 261. NATIONWIDE BANKING.
  (a) Section 3(f) of the Financial Services Holding Company Act (12
  U.S.C. 1842(f)), as redesignated by section 202(a)(4), is amended to read
  as follows:
  `(f) Interstate Acquisitions-
  `(1) IN GENERAL- The appropriate Federal banking agency may approve
  an application under this section for a diversified holding company,
  financial services holding company, or foreign bank to acquire, directly
  or indirectly, any voting shares of, interest in, or all or substantially
  all of, the assets of any additional insured depository institution or
  financial services holding company located in any State.
  `(2) STATE LAWS- Any acquisition described in paragraph (1) that has been
  approved under this section may be consummated notwithstanding any State
  law that would prohibit or otherwise limit such acquisition on the basis of--
  `(A) the location or size of the acquiring diversified holding company or
  financial services holding company or foreign bank or any subsidiary of
  such company or foreign bank;
  `(B) the number of insured depository institution subsidiaries of such
  diversified holding company or financial services holding company or
  foreign bank; or
  `(C) any factor that has the effect, directly or indirectly, of prohibiting
  or limiting the acquisition of shares or control of an insured depository
  institution or financial services holding company located in that State by
  an out-of-State diversified holding company or financial services holding
  company or foreign bank without such factor having a similar effect on such
  acquisitions by financial services holding companies located in that State.'.
  (b) The amendment made by this section shall become effective three years
  after the date of enactment of this Act.
SEC. 262. INTERSTATE BRANCHING BY NATIONAL BANKS.
  (a) LOCATION OF BRANCHES- Section 5155(c) of the Revised Statutes (12
  U.S.C. 36(c)) is amended--
  (1) by striking `and' at the end of paragraph (1);
  (2) in paragraph (2), by striking the first period and inserting instead
  `; and';
  (3) by inserting after `; and' as added by paragraph (2) the following
  new paragraph:
  `(3) at an initial location within any State in which a financial services
  holding company having the same home State as such association could acquire
  a bank pursuant to section 3 of the Financial Services Holding Company
  Act of 1991 (12 U.S.C. 1842) or at an initial location within any State in
  which a State bank chartered in the home State of such association could
  establish a branch, and, thereafter, at any point within those States to
  the extent permitted in paragraph (1) and paragraph (2) for associations
  situated in those States.'; and
  (4) by inserting at the end thereof the following new sentence: `A State,
  other than the State in which the principal office of a national banking
  association is a host State, may require any national banking association
  establishing a branch within the host State to comply with such filing
  requirements as are otherwise imposed on a corporation that is incorporated
  in another State and seeks to engage in business in the host State.'.
  (b) DEFINITIONS- Section 5155 of the Revised Statutes (12 U.S.C. 36)
  is further amended--
  (1) by amending subsection (f) to read as follows:
  `(f) The term `branch' as used in this section shall mean any office,
  agency, or other place of business located in any State or Territory of
  the United States or in the District of Columbia at which deposits are
  received, checks paid, or money lent.'; and
  (2) by inserting after subsection (h) the following new subsections:
  `(i) For purposes of this section, the term `home State' shall mean--
  `(1) in the case of a national banking association, the State in which
  the principal place of business of such association is located; and
  `(2) in the case of a financial services holding company, the State in which
  the total deposits of all bank subsidiaries of such company are largest.
  `(j) For purposes of this section, the term `State' shall include the
  District of Columbia.
  `(k) For purposes of this section, the term `host State' is the State in
  which a bank establishes or maintains a branch other than the State in
  which the bank is located.'.
SEC. 263. INTERSTATE CONSOLIDATION OR MERGER OF NATIONAL BANKS OR STATE
BANKS WITH NATIONAL BANKS.
  (a) CONSOLIDATION OF NATIONAL BANKS OR STATE BANKS WITH NATIONAL BANKS-
  Section 1 of the Act of November 7, 1918 (12 U.S.C. 215) is amended by
  inserting `or in any other State' after `located in the same State'.
  (b) MERGER OF NATIONAL BANKS OR STATE BANKS WITH NATIONAL BANKS- Section 2(a)
  of the Act of November 7, 19l8 (12 U.S.C. 215a(a)) is amended by inserting
  `or in any other State' after `located within the same State'.
  (c) DEFINITIONS- Section 3(4) of the Act of November 7, 1918 (12
  U.S.C. 215b(4)) is amended by striking `, located within the same State,'.
  (d) RETENTION OF BRANCHES FOLLOWING MERGER OR CONSOLIDATION WITH NATIONAL
  BANKS- Section 5155(b)(2) of the Revised Statutes (12 U.S.C. 36(b)(2))
  is amended to read as follows:
  `(2)(A) A national bank resulting from the consolidation of a national
  bank under whose charter the consolidation is effected with another bank
  or banks may retain and operate as a branch any office which, immediately
  prior to such consolidation, was in operation as a main office or branch
  of any bank participating in the consolidation if the appropriate Federal
  banking agency approves its continued operation after the consolidation.
  `(B) The appropriate Federal banking agency may not grant approval
  under subparagraph (A) for retention of a main office branch of any bank
  participating in the consolidation if a State bank (in a situation identical
  to that of the resulting national bank) resulting from the consolidation
  into a State bank of another bank or banks would be prohibited by the
  law of such State from retaining and operating as a branch an identically
  situated branch of the State bank immediately prior to the consolidation.'.
SEC. 264. INTERSTATE BRANCHING BY STATE BANKS.
  Section 18(d) of the Federal Deposit Insurance Act (12 U.S.C. 1828(d))
  is amended by inserting after paragraph (2) the following new paragraphs:
  `(3) STATE LAW- Except as otherwise provided in this subsection, no State
  may prohibit any insured bank chartered by another State, and engaged in
  a banking business in another State from establishing and maintaining one
  or more branches within the State. A host State may require any insured
  bank chartered by another State that wishes to establish a branch within
  the host State to comply with such filing requirements as are otherwise
  imposed on a corporation that is incorporated in another State and seeks
  to engage in business in the host State.
  `(4)(A) LOCATION OF BRANCHES- Any insured State bank may, if authorized by
  the law of the State in which the bank is chartered, establish and maintain:
  `(i) a branch at an initial location within any other State or States
  in which a financial services holding company, whose principal place
  of operations is the same State in which the insured bank is chartered,
  could acquire an additional bank pursuant to section 3 of the Financial
  Services Holding Company Act of 1991 (12 U.S.C. 1842); and
  `(ii) additional branches at locations within any State in which the bank
  has established an initial branch pursuant to clause (i) to the extent
  permitted for insured State banks located in such State as if the initial
  branch of the out-of-State insured bank were a State bank chartered in
  such State with its head office at the location of the initial branch.
  `(B) For purposes of this paragraph, `principal place of operations'
  means the State in which the total deposits of all bank subsidiaries of
  such company are largest.
  `(5) RESERVATION OF CERTAIN RIGHTS TO STATES- Nothing in this subsection
  shall limit in any way the right of a State to determine the authority of
  State banks chartered in that State to establish and maintain branches,
  or to supervise, regulate, and examine State banks chartered by that State.
  `(6) ACTIVITIES OF BRANCHES- An insured State bank that establishes a branch
  or branches pursuant to paragraph (4) may not conduct any activity at such
  branch that is not permissible for a bank chartered by the host State.
  `(7) COORDINATION OF EXAMINATION AUTHORITY-
  `(A) A host State bank supervisory or regulatory authority may examine
  branches established in the host State by banks chartered by another State
  for the purpose of determining compliance with the host State law regarding
  permissible activities and to ensure that the activities of the branch
  are conducted in a manner not inconsistent with sound banking principles
  and do not constitute a serious risk to the safety and sound operation of
  the branch.
  `(B) In the event that a host State bank authority as described above
  determines that there is a violation of host State law concerning the
  activities being conducted by the branch or that the branch is being operated
  in a manner not consistent with sound banking principles or in an unsafe
  and unsound manner, such host State bank authority may undertake such
  enforcement actions or proceedings as would be permitted under host State
  law as if the branch were deemed to be a bank chartered by that host State.
  `(C) The State bank authorities from one or more States are authorized to
  enter into cooperative agreements to facilitate State regulatory supervision
  of State-chartered banks including cooperative agreements relating to the
  coordination of examinations and joint participation in examinations as long
  as the participation in the examination of the branch of an out-of-State bank
  by a host State bank authority is limited as described in subparagraph (B).
  `(8) For purposes of this subsection a `host State' is the State in which
  a bank establishes or maintains a branch other than the State in which
  the bank is chartered and engaging in banking business.'.
SEC. 265. INTERSTATE BRANCHING AND BANKING BY FOREIGN BANKS.
  (a) Section 4(a) of the International Banking Act of 1978 (12 U.S.C. 3102(a))
  is amended to read as follows:
  `(a) ESTABLISHMENT AND OPERATION OF FEDERAL BRANCHES AND AGENCIES-
  `(1) A foreign bank which engages directly in a banking business outside
  the United States may, with the approval of the Director, establish and
  operate a Federal branch or Federal agency at an initial location in
  the United States in any State in which it is not operating a branch or
  agency pursuant to State law; provided that during the three-year period
  beginning on the date of the enactment of the Financial Institutions Safety
  and Consumer Choice Act of 1991, the Director may only authorize such
  establishment of a branch or agency by a foreign bank, as the case may be,
  if such establishment is not prohibited by the law of the relevant State.
  `(2) A foreign bank which engages directly in a banking business outside
  the United States may establish and operate additional Federal branches
  or Federal agencies in any State in accordance with the provisions of
  subsection (h).'.
  (b) Section 4(h) of the International Banking Act of 1978 (12 U.S.C. 3102(h))
  is amended--
  (1) by striking the phrase `in the State in which such branch or agency
  is located'; and
  (2) by adding at the end the following sentence: `For purposes of section
  36(c) of the National Bank Act (12 U.S.C. 36(c)), the home State of a
  foreign bank shall be its home State as determined under section 5.'.
  (c) Section 5 of the International Banking Act of 1978 (12 U.S.C. 3103)
  is amended to read as follows:
  `(a) Limitations-
   `(1) No foreign bank may establish and operate a State branch in any State
   outside its home State unless a financial services holding company whose
   principal place of operation under section 3 of the Financial Services
   Holding Company Act of 1991 (12 U.S.C. 1842) is the same as the home
   State of the foreign bank would be permitted to acquire a bank in such
   other State.
  `(2) No foreign bank may directly or indirectly establish and operate
  a State branch, State agency, or commercial lending company subsidiary
  outside of the foreign bank's home State unless its establishment and
  operation is approved by the Board and the bank regulatory authority of
  the State in which the new branch is to be located.
  `(3) No foreign bank may directly or indirectly acquire more than five
  percent of the voting shares of, or all or substantially all of the assets
  of, a financial services holding company or bank located outside of the
  foreign bank's home State without the approval of the appropriate Federal
  banking agency under section 3 of the Financial Services Holding Company Act
  of 1991 (12 U.S.C. 1842) as if the foreign bank were a financial services
  holding company located in the foreign bank's home State.
  `(4) Notwithstanding paragraph (2), effective three years after the date
  of enactment of the Financial Institutions Safety and Consumer Choice Act
  of 1991, no State shall prohibit a foreign bank having a State branch or
  State agency licensed by another State and engaged in a banking business in
  that other State, from establishing and maintaining one or more branches
  or agencies of that foreign bank within the State after approval from the
  bank regulatory authority of such other State and the Board. Establishment,
  operation and supervision of any such branches or agencies shall be in
  accordance with the provisions applicable to an interstate branch of
  a State bank under section 18(d) of the Federal Deposit Insurance Act
  (12 U.S.C. 1828(d)) as if the branch in such other State were an insured
  State bank located in such other State.
  `(5) Notwithstanding paragraph (1) and section 4(h), a foreign bank
  may, with the approval of the Director, establish and operate a Federal
  branch or Federal agency, or with the approval of the Board and the bank
  regulatory authority of the State, a State branch or State agency, in any
  State outside of its home State if--
  `(A) establishment and operation of a branch or agency is expressly
  permitted by the State in which it is to be established; and
  `(B) in the case of a Federal or State branch, the branch receives only
  such deposits as would be permissible for a corporation organized under
  section 25(a) of the Federal Reserve Act (12 U.S.C. 611 et seq.).'.
  (d) Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105)
  is amended by inserting after subsection (d) the following new subsection:
  `(e)(1) It shall be unlawful for any foreign bank to establish a State
  branch or State agency, or in the case of a foreign bank that is not subject
  to the provisions of the Financial Services Holding Company Act of 1991,
  to establish or acquire control of a commercial lending company in the
  United States, without obtaining the approval of the Board.
  `(2) In acting on any application under paragraph (1), the Board may take
  into account the effects of the proposal on competition in the domestic
  and foreign commerce of the United States, the financial prospects of the
  branch or agency and the applicant foreign bank, including whether such
  foreign bank engages directly in a banking business outside the United
  States, and the convenience and needs of the community to be served.'.
SEC. 266. INTERSTATE ACQUISITIONS BY SAVINGS AND LOAN HOLDING COMPANIES.
  Section 10(e)(3) of the Home Owners' Loan Act (12 U.S.C. 1467a(e)(3))
  is amended to read as follows:
  `(3) INTERSTATE ACQUISITIONS-
  `(A) IN GENERAL- The appropriate Federal banking agency may approve an
  application under this subsection for a savings and loan holding company or
  a foreign bank to acquire, directly or indirectly, any voting shares of,
  interest in, or all or substantially all the assets of, any additional
  savings association located in any State.
  `(B) STATE LAWS- Any acquisition described in subparagraph (A) that has
  been approved under this section may be consummated notwithstanding any
  State law that would prohibit or otherwise limit such acquisition on the
  basis of the location or size of the acquiring company or foreign bank
  or any subsidiary of such company or foreign bank, the number of insured
  depository institution subsidiaries of such company or foreign bank, or any
  other factor that has the effect directly or indirectly of prohibiting or
  limiting the acquisition of shares or control of a savings association or
  savings and loan holding company located in that State by an out-of-State
  savings and loan holding company or foreign bank without having a similar
  effect on such acquisitions by savings and loan holding companies located
  in that State.
  `(C) DEFINITIONS- For purposes of this paragraph--
  `(i) the term `State' includes the District of Columbia; and
  `(ii) the term `foreign bank' has the same meaning as in section 1(b)(7)
  of the International Banking Act (12 U.S.C. 3101(7)).'.
SEC. 267. EFFECTIVE DATES.
  Except as provided in section 261(b), the provisions of this subtitle
  shall be effective upon enactment of this Act.
TITLE III--REGULATORY RESTRUCTURING
Subtitle A--Office of Depository Institutions Supervision
SEC. 301. ESTABLISHMENT OF THE OFFICE OF DEPOSITORY INSTITUTIONS SUPERVISION.
  Effective January 1, 1992, there shall be established in the Department
  of the Treasury the Office of Depository Institutions Supervision which
  shall be a bureau within the Department.
SEC. 302. DEFINITIONS.
  As used in this title--
  (1) the term `Director' means the Director of the Office of Depository
  Institutions Supervision;
  (2) the term `Office' means the Office of Depository Institutions
  Supervision; and
  (3) the term `Secretary' means the Secretary of the Treasury.
SEC. 303. DIRECTOR OF THE OFFICE OF DEPOSITORY INSTITUTIONS SUPERVISION.
  (a) IN GENERAL- The Office shall have a Director who shall be the head of
  the Office.
  (b) APPOINTMENT- The Director shall be appointed by the President, by and
  with the advice and consent of the Senate, from among individuals who are
  citizens of the United States.
  (c) TERM- The Director shall be appointed for a term of five years unless
  sooner removed by the President.
  (d) VACANCY- A vacancy in the position of Director which occurs before
  expiration of the term for which a Director was appointed shall be filled
  in the manner established in subsection (b), and the Director appointed
  to fill such vacancy shall be appointed only for the remainder of said term.
  (e) SERVICE AFTER END OF TERM- An individual may serve as Director after
  the expiration of the term for which appointed until a successor Director
  has been appointed.
  (f) ACTING DIRECTOR-
  (1) Subject to subsection (d)--
  (A) the Director may designate who shall act as Director if the Director
  dies, resigns, or is sick or absent; and
  (B) in the event that the Director fails to make such a designation,
  or is unable to make such a designation due to death or disability, the
  Secretary shall designate who shall act as Director if the Director dies,
  resigns, or is sick or absent.
  (2) An Acting Director designated under paragraph (1) shall possess the
  power to perform the duties vested in the Director.
  (g) DEPUTY DIRECTORS- The Secretary shall appoint two Deputy Directors. Each
  Deputy Director shall perform such duties as the Director may require.
  (h) EFFECTIVE DATES-
  (1) Subsections (a) through (f) shall become effective January 1, 1992;
  (2) Subsection (g) shall become effective January 1, 1993.
SEC. 304. AUTHORITY OF THE DIRECTOR.
  (a) EXCLUSIVE AUTHORITY OF THE DIRECTOR- The Director shall have the
  authority, without any prior review or approval by the Secretary, to make
  such determinations and to take such actions as are deemed necessary with
  respect to a specific institution or entity for which the Director is the
  appropriate Federal banking agency, as defined in section 3(q)(1) of the
  Federal Deposit Insurance Act (12 U.S.C. 1813(q)(1)), regarding--
  (1) a grant or denial of a charter or other application;
  (2) an examination;
  (3) a decision to appoint a conservator or receiver for a depository
  institution; and
  (4) a final decision in a contested administrative enforcement proceeding.
Nothing in this subsection shall be construed to prohibit the Director from
consulting with the Secretary on any matter.
  (b) AUTHORITY OF THE SECRETARY- All other authority vested in the Director
  shall be exercised by the Director subject to the review and approval of
  the Secretary.
  (c) DELEGATION OF AUTHORITY- The Director may delegate to any employee,
  representative or agent of the Office any authority of the Director.
  (d) EFFECTIVE DATES-
  (1) Subsection (a) shall become effective January 1, 1993.
  (2) Subsections (b) and (c) shall become effective January 1, 1992.
SEC. 305. PERSONNEL.
  (a) APPOINTMENT- The Director shall fix the number of, and appoint and
  direct, all employees of the Office except as provided in section 303(g).
  (b) COMPENSATION AND BENEFITS-
  (1) COMPENSATION- The Director shall fix the compensation of employees of
  the Office without regard to the provisions of laws (other than this title)
  applicable to officers and employees of the United States.
  (2) ADDITIONAL BENEFITS- The Director may provide additional benefits
  to employees of the Office if the same type of benefits are then being
  provided by the Board of Governors of the Federal Reserve System or the
  Federal Deposit Insurance Corporation or, if not then being provided,
  could be provided by such an agency under applicable provisions of law,
  rule, or regulation.
  (3) COMPARABILITY- In setting and adjusting the compensation and benefits
  for employees of the Office, the Director shall consult with, and may
  seek to maintain comparability with, the Board of Governors of the Federal
  Reserve System and the Federal Deposit Insurance Corporation.
  (c) EFFECTIVE DATE- This section shall become effective January 1, 1993.
SEC. 306. REGULATIONS AND ORDERS.
  The Director may prescribe such regulations and issue such orders as the
  Director may determine to be necessary or appropriate for carrying out
  any law within the Director's jurisdiction.
SEC. 307. FUNDING.
  (a) AUTHORITY TO IMPOSE AND COLLECT ASSESSMENTS, FEES, AND OTHER CHARGES-
  The Director shall have the authority to impose and collect assessments,
  fees, and other charges on any institution or entity (including subsidiaries
  and affiliates thereof) for which the Director is the appropriate Federal
  banking agency, as defined in section 3(q)(1) of the Federal Deposit
  Insurance Act (12 U.S.C. 1813(q)(1)), as necessary or appropriate to carry
  out the responsibilities of the Office. Such assessments, fees, and other
  charges shall be set to meet the full cost to the Federal Government of
  the services provided by the Office.
  (b) USE OF FUNDS- The Director is authorized to use the funds obtained
  through assessments, fees, and other charges imposed pursuant to this title
  to pay the full cost to the Federal Government of the services provided
  by the Office.
  (c) EFFECTIVE DATES- This section shall become effective January 1, 1993.
Subtitle B--Interim Provisions; Transfer of Functions, Personnel, and Property
SEC. 311. INTERIM PROVISIONS FOR THE OFFICE OF DEPOSITORY INSTITUTIONS
SUPERVISION.
  (a) INTERIM AUTHORITY OF THE DIRECTOR- Prior to the date upon which the
  functions of the Office of the Comptroller of the Currency and the Office
  of Thrift Supervision are transferred to the Director pursuant to this Act,
  the Director shall--
  (1) consult and cooperate with the Director of the Office of Thrift
  Supervision and the Comptroller of the  Currency to facilitate the orderly
  transfer of functions to the Office;
  (2) pursuant to section 6(b)(2)(A) of the Financial Services Holding Company
  Act of 1991 (12 U.S.C. 1845(b)(2)(A)), jointly issue regulations with the
  Board of  Governors of the Federal Reserve System to be effective on  January
  1, 1993, to implement the Financial Services Holding Company Act of 1991; and
  (3) take such actions as may be necessary to provide for the establishment
  of the Office and for the orderly implementation of this title.
  (b) INTERIM STAFF- Prior to the date upon which the Office of the Comptroller
  of the Currency and the Office of Thrift Supervision are abolished, each
  such Office shall detail to the Office such personnel as the Secretary
  deems appropriate to assist the Director in carrying out his duties.
  (c) INTERIM ADMINISTRATIVE SERVICES- The Secretary is authorized to provide
  all administrative services necessary to support the Office prior to the
  date upon which the Office of the Comptroller of the Currency and the
  Office of Thrift Supervision are abolished, and obtain reimbursement for
  the cost of such services pursuant to subsection (d).
  (d) INTERIM FUNDING- Prior to the date upon which the Office of the
  Comptroller of the Currency and the Office of Thrift Supervision are
  abolished, each such Office shall pay to the Secretary one-half of the total
  amount determined by the Secretary to be necessary to fund all direct and
  indirect salary and administrative expenses of the Office, including the
  salary of the Director, through January 1, 1993, from the funds obtained by
  such Offices through assessments, fees, and other charges which they are
  authorized to impose by law. The Secretary may credit to an appropriation
  and spend amounts received pursuant to this subsection.
  (e) INTERIM AUTHORITY OF THE SECRETARY- The Secretary is authorized to
  perform the functions of the Director under this section until the Director
  is appointed.
  (f) EFFECTIVE DATE- This section shall become effective January 1, 1992.
SEC. 312. OFFICE OF THRIFT SUPERVISION ABOLISHED.
  (a) OFFICE OF THRIFT SUPERVISION ABOLISHED- Effective January 1, 1993,
  the Office of Thrift Supervision and the position of Director of the Office
  of Thrift Supervision are abolished.
  (b) Disposition of Affairs-
  (1) IN GENERAL- In winding up the affairs of the Office of Thrift
  Supervision, the Director of the Office of Thrift Supervision shall consult
  and cooperate with the Director of the Office and the Comptroller of the
  Currency to facilitate the orderly transfer of functions to the Office. Any
  matter not resolved pursuant to such consultation and cooperation shall
  be resolved by the Secretary.
  (2) CONTINUING AUTHORITY OF DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION-
  Except as provided in paragraph (1) and section 311, nothing in this title
  shall affect the authority vested in the Director of the Office of Thrift
  Supervision before the date of enactment of this Act which is necessary
  to carry out the duties of his position until the date upon which the
  position of Director of the Office of Thrift Supervision is abolished.
  (3) CONTINUATION OF AGENCY SERVICES- Any agency, department, or other
  instrumentality of the United States, or any successor thereto, which was
  providing support services to the Office of Thrift Supervision on the day
  before the date the Office of Thrift Supervision is abolished shall--
  (A) continue to provide such services on a reimbursable basis, in accordance
  with the terms of the arrangement pursuant to which such services were
  provided until modified or terminated in accordance with such terms,
  except that effective January 1, 1993, the Office shall substitute for
  the Office of Thrift Supervision as a party to the arrangement; and
  (B) consult with the Director to coordinate and facilitate a prompt and
  reasonable transition.
  (c) Savings Provisions-
  (1) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED- No provision
  of this title shall affect the validity of any right, duty, or obligation
  of the United States, the Office of Thrift Supervision, or any person,
  which existed on the day before the date upon which the Office of Thrift
  Supervision is abolished.
  (2) CONTINUATION OF SUITS- No action or other proceeding commenced by or
  against the Office of Thrift Supervision shall abate by reason of enactment
  of this Act, except that, effective January 1, 1993, the Director shall
  be substituted as a party to any such action or proceeding.
  (3) Continuation of administrative rules-
  (A) All orders, resolutions, determinations, regulations, interpretative
  rules, other interpretations, guidelines, procedures and other advisory
  material which--
  (1) have been issued, made, prescribed, or permitted to become effective
  by the Office of Thrift Supervision, and
  (2) are in effect on December 31, 1992, or become effective thereafter,
shall continue in effect according to the terms of such orders, resolutions,
determinations, regulations, interpretative rules, other interpretations,
guidelines, procedures or other advisory material; shall be administered by the
Director; and shall be enforceable by or against the Director until modified,
terminated, set aside, or superseded in accordance with applicable law by
the Director, by any court of competent jurisdiction, or by operation of law.
  (B) No provision of this Act or of any prior Act or agreement, other
  than agreements entered into after August 9, 1989, shall modify or limit
  any minimum level of capital established under section 5(s) of the Home
  Owners' Loan Act (12 U.S.C. 1464(s)) or any capital standard prescribed
  or maintained under section 5(t) of such Act (12 U.S.C. 1464(t)).
  (4) STATUS OF ADMINISTRATIVE RULES-
  (A) Any proposed regulation or rule of the Office of Thrift Supervision
  which has not been published as a final regulation by the date that the
  Office of Thrift Supervision is abolished shall be deemed to be a proposed
  regulation or rule of the Office.
  (B) Any final or interim rule published by the Office of Thrift Supervision
  prior to January 1, 1993, but which shall not become effective prior to
  such date, shall become effective according to its terms.
  (5) APPLICATION- The provisions of this subsection shall apply except as
  otherwise expressly provided in this Act.
  (d) Transfer of Employees-
  (1) IN GENERAL- All employees of the Office of Thrift Supervision on the
  day before that Office is abolished by this Act shall be transferred to
  the Office.
  (2) RIGHTS OF TRANSFERRED EMPLOYEES- All employees transferred pursuant
  to paragraph (1) shall be entitled to the following rights:
  (A) TRANSFER OF FUNCTION- Notwithstanding any other provision of law,
  section 3503 of title 5, United States Code, shall be applicable to each
  such transfer.
  (B) TRANSFERRED POSITION- Each transferred employee shall be guaranteed a
  position with the same status and tenure as that held on the day immediately
  preceding the transfer. Each such employee holding a permanent position
  shall not be involuntarily separated or reduced in grade for 1 year after
  the date of transfer, except for cause. Nothing in this section shall be
  construed to limit the right of the Director to terminate an appointment to
  a position excepted from the competitive service because of its confidential
  policy-making, policy-determining, or policy-advocating character.
  (C) COMPENSATION- Each employee transferred under this section shall be
  entitled to receive, during the one-year period immediately following
  the transfer, the same total compensation which such employee received
  immediately preceding the transfer. This paragraph shall only apply to a
  transferred employee while such employee remains with the Office.
  (D) Benefits-
  (i) Each employee transferred under this section may retain for 1 year after
  the date such transfer occurs, membership in any employee benefit program
  of the Office of Thrift Supervision, other than a retirement program but
  including insurance, to which such employee belongs on the day immediately
  preceding the transfer if--
  (I) the employee does not elect to give up the benefit or membership in
  the program; and
  (II) the benefit or program is continued by the Director.
  (ii) The difference in the costs between the benefits which would have
  been provided by the Office of Thrift Supervision and those provided by
  this section shall be paid by the Office.
  (iii) If any employee elects to give up membership in a health or life
  insurance program or the health or life insurance program is not continued by
  the Director, such employee may elect to participate in the Office's health
  or life insurance program notwithstanding health conditions pre-existing
  at the time of election or enrollment and without regard to any other
  regularly scheduled open season. Such election shall be made within 120
  days of the transfer or discontinuation of the program.
  (3) REORGANIZATION OF THE OFFICE OF DEPOSITORY INSTITUTIONS SUPERVISION-
  If the Director determines, not less than one year nor more than three
  years after the date the functions of the Director of the Office of Thrift
  Supervision are transferred to the Office, that a reorganization of the
  combined work force is required, that reorganization shall be deemed a
  `major reorganization' for purposes of affording affected employees
  retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United
  States Code. The provisions of chapter 35 of title 5, United States Code,
  shall govern any reduction in force resulting from such a reorganization.
  (4) EQUITABLE TREATMENT- The Director may take such action as is necessary
  to ensure that employees transferring under this section continue to receive
  credit such employees received, if any, under the Financial Institutions
  Reform, Recovery, and Enforcement Act of 1989 for prior service with a
  Federal entity or instrumentality, or with a Federal Home Loan Bank or
  joint office of the Banks, with respect to the transferring employees'
  retirement accounts and the transferring employees' accrued leave or
  vacation time, in recognition of the transferring employees' service.
  (e) TRANSFER OF PROPERTY- Effective January 1, 1993, all property of the
  Office of Thrift Supervision shall be transferred to the Office.
SEC. 313. OFFICE OF THE COMPTROLLER OF THE CURRENCY ABOLISHED.
  (a) OFFICE OF THE COMPTROLLER OF THE CURRENCY ABOLISHED- Effective January
  1, 1993, the Office of the Comptroller of the Currency and the position
  of the Comptroller of the Currency are abolished.
  (b) Disposition of Affairs.
  (1) IN GENERAL- In winding up the affairs of the Office of the Comptroller
  of the Currency, the Comptroller of the Currency shall consult and cooperate
  with the Director of the Office of Depository Institutions Supervision and
  the Director of the Office of Thrift Supervision to facilitate the orderly
  transfer of functions to the Office. Any matter not resolved pursuant to
  such consultation and cooperation shall be resolved by the Secretary.
  (2) CONTINUING AUTHORITY OF THE COMPTROLLER OF THE CURRENCY- Except as
  provided in paragraph (1) and section 311, nothing in this Act shall affect
  the authority vested in the Comptroller of the Currency before the date
  of enactment of this Act which is necessary to carry out the duties of his
  position until the date upon which the position of Comptroller is abolished.
  (3) CONTINUATION OF AGENCY SERVICES- Any agency, department, or other
  instrumentality of the United States, or any successor thereto, which
  was providing support services to the Office of the Comptroller of the
  Currency on the day before the date the Office of the Comptroller of the
  Currency is abolished shall--
  (A) continue to provide such services, on a reimbursable basis, in accordance
  with the terms of the arrangement pursuant to which such services were
  provided until modified or terminated in accordance with such terms, except
  that effective January 1, 1993, the Office shall substitute for the Office
  of the Comptroller of the Currency as a party to the arrangement; and
  (B) consult with the Director to coordinate and facilitate a prompt and
  reasonable transition.
  (c) Savings Provisions-
  (1) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED- No provision of
  this title shall affect the validity of any right, duty, or obligation of
  the United States, the Office of the Comptroller of the Currency, or any
  person, which existed on the day before the date upon which the Office of
  the Comptroller of the Currency is abolished by this title.
  (2) CONTINUATION OF SUITS- No action or other proceeding commenced by or
  against the Comptroller of the Currency or the Office of the Comptroller
  of the Currency shall abate by reason of enactment of this Act, except
  that effective January 1, 1993, the Director shall be substituted as a
  party to any such action or proceeding.
  (3) CONTINUATION OF ADMINISTRATIVE RULES- All orders, resolutions,
  determinations, regulations, interpretative rules, other interpretations,
  guidelines, procedures and other advisory material which--
  (A) have been issued, made, prescribed, or permitted to become effective
  by the Comptroller of the Currency; and
  (B) are in effect on December 31, 1992, or become effective thereafter,
shall continue in effect according to the terms of such orders, resolutions,
determinations, regulations, interpretative rules, guidelines, procedures
or other advisory material; shall be administered by the Director; and
shall be enforceable by or against the Director until modified, terminated,
set aside, or superseded in accordance with applicable law by the Director,
by any court of competent jurisdiction, or by operation of law.
  (4) Status of administrative rules-
  (A) Any proposed regulation or rule of the Comptroller of the Currency
  which has not been published as a final regulation by the date that the
  Office of the Comptroller of the Currency is abolished shall be deemed to
  be a proposed regulation or rule of the Office.
  (B) Any final or interim rule published by the Comptroller of the Currency
  prior to January 1, 1993, but which shall not become effective prior to
  such date, shall become effective according to its terms.
  (5) APPLICATION- The provisions of this subsection shall apply except as
  otherwise expressly provided in this Act.
  (d) Transfer of employees-
  (1) IN GENERAL- All employees of the Office of the Comptroller of the
  Currency on the day before that Office is abolished by this Act shall be
  transferred to the Office.
  (2) RIGHTS OF TRANSFERRED EMPLOYEES- All employees transferred pursuant
  to paragraph (1) shall be entitled to the following rights:
  (A) TRANSFER OF FUNCTION- Notwithstanding any other provision of law,
  section 3503 of title 5, United States Code, shall be applicable to each
  such transfer.
  (B) TRANSFERRED POSITION- Each transferred employee shall be guaranteed a
  position with the same status and tenure as that held on the day immediately
  preceding the transfer. Each such employee holding a permanent position
  shall not be involuntarily separated or reduced in grade for one year after
  the date of transfer, except for cause. Nothing in this section shall be
  construed to limit the right of the Director to terminate an appointment to
  a position excepted from the competitive service because of its confidential
  policy-making, policy-determining, or policy-advocating character.
  (C) COMPENSATION- Each employee transferred under this section shall be
  entitled to receive, during the one-year period immediately following the
  transfer, the same total compensation that employee received immediately
  preceding the transfer. This paragraph shall only apply to a transferred
  employee while such employee remains with the Office.
  (D) BENEFITS-
  (i) Each employee transferred under this section may retain for one year
  after the date such transfer occurs, membership in any employee benefit
  program of the Office of the Comptroller of the Currency, other than a
  retirement program but including insurance, to which such employee belongs
  on the day immediately preceding the transfer if--
  (I) the employee does not elect to give up the benefit or membership in
  the program; and
  (II) the benefit or program is continued by the Director.
  (ii) The difference in the costs between the benefits which would have
  been provided by the Office of the Comptroller of the Currency and those
  provided by this section shall be paid by the Office.
  (iii) If any employee elects to give up membership in a health or life
  insurance program or the health or life insurance program is not continued by
  the Director, such employee may elect to participate in the Office's health
  or life insurance programs notwithstanding health conditions pre-existing
  at the time of election or enrollment and without regard to any other
  regularly scheduled open season. Such election shall be made within 120
  days of the transfer or discontinuation of the program.
  (3) REORGANIZATION OF THE OFFICE OF DEPOSITORY INSTITUTIONS SUPERVISION-
  If the Director determines, not less than one year nor more than three
  years after the date the functions of the Comptroller of the Currency are
  transferred to the Office, that a reorganization of the combined work force
  is required, that reorganization shall be deemed a `major reorganization'
  for purposes of affording affected employees retirement under section
  8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code. The provisions
  of chapter 35 of title 5, United States Code, shall govern any reduction
  in force resulting from such a reorganization.
  (e) TRANSFER OF PROPERTY- Effective January 1, 1993, all property of the
  Office of the Comptroller of the Currency shall be transferred to the Office.
Subtitle C--Regulatory and Supervisory Responsibility
SEC. 321. TRANSFER OF POWERS AND DUTIES.
  (a) DIRECTOR OF THE OFFICE OF THRIFT SUPERVISION- Effective January 1, 1993,
  all powers and duties which were vested in the Director of the Office of
  Thrift Supervision on December 31, 1992, are transferred to the Director,
  except as otherwise provided in this Act.
  (b) COMPTROLLER OF THE CURRENCY- Effective January 1, 1993, all powers and
  duties which were vested in the Comptroller of the Currency on December
  31, 1992, are transferred to the Director, except as otherwise provided
  in this Act.
SEC. 322. APPROPRIATE FEDERAL BANKING AGENCY.
  (a) Section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q))
  is amended to read as follows--
  `(q)(1) APPROPRIATE FEDERAL BANKING AGENCY- The term `appropriate Federal
  banking agency' means--
  `(A) the Director of the Office of Depository Institutions Supervision in
  the case of --
  `(i) any national banking association and any subsidiary of a national
  banking association other than a subsidiary chartered or regulated by the
  Board of Governors of the Federal Reserve System under sections 25 or 25(a)
  of the Federal Reserve Act (12 U.S.C. 601 et seq. and 611 et seq.);
  `(ii) any District bank chartered by the Director;
  `(iii) any Federal branch or Federal agency of a foreign bank;
  `(iv) any savings association and any subsidiary of a savings association;
  `(v) any savings and loan holding company;
  `(vi) any financial services holding company, the principal bank subsidiary
  of which is a national banking association, a District bank chartered by
  the Director, or a savings association; and
  `(vii) any diversified holding company that controls any financial
  services holding company, the principal bank subsidiary of which is a
  national banking association, a District bank chartered by the Director,
  or a savings association;
  `(B) the Board of Governors of the Federal Reserve System in the case of--
  `(i) any State member or State nonmember insured bank (except a District
  bank chartered by the Director) and any subsidiary of any such State bank;
  `(ii) any State branch or State agency of a foreign bank;
  `(iii) any subsidiary or branch of a depository institution established
  or operated pursuant to section 25 or 25(a) of the Federal Reserve Act
  (12 U.S.C. 601 et seq. and 611 et seq.);
  `(iv) any commercial lending company;
  `(v) supervisory or regulatory proceedings arising from the authority given
  to the Board of Governors under section 7(b) (1) of the International
  Banking Act of 1978 (12 U.S.C. 3105(b) (1)), including such proceedings
  under the Depository Institutions Supervisory Act;
  `(vi) any branch or agency of a foreign bank with respect to any provision
  of the Federal Reserve Act which is made applicable under the International
  Banking Act of 1978 (12 U.S.C. 3101 et seq.);
  `(vii) any financial services holding company, the principal bank
  subsidiary of which is a State member or State nonmember insured bank
  (except a District bank chartered by the Director); and
  `(viii) any diversified holding company that controls any financial services
  holding company, the principal bank subsidiary of which is a State member
  or State nonmember insured bank (except a District bank chartered by
  the Director);
  `(C) for a foreign bank that is not a financial services holding company,
  the appropriate Federal banking agency shall be the same as the appropriate
  Federal banking agency for the branch, agency, or commercial lending
  company controlled or operated by such foreign bank that has the greatest
  dollar amount of assets on average for the last day of each quarter of
  the preceding calendar year. Any foreign bank that is not a financial
  services holding company shall be evaluated by the appropriate Federa1
  banking agency in accordance with paragraphs (3) through (6).
  `(2) PRINCIPAL BANK SUBSIDIARY- The term `principal bank subsidiary' means--
  `(A) the single subsidiary depository institution of a financial services
  holding company that has the greatest dollar amount of assets on average
  for the last day of each quarter of the preceding calendar year; and
  `(B) in the case of a foreign bank that is a financial services holding
  company, the single depository institution, branch, agency, or commercial
  lending company controlled or operated by a foreign bank in the United
  States that has the greatest dollar amount of assets on average for the last
  day of each quarter of the preceding calendar year. Paragraphs (3) through
  (6) shall apply to a foreign bank and its principal bank subsidiary in the
  same manner and to the same extent as they apply to a domestic financial
  services holding company and its principal bank subsidiary.
  `(3) MULTIPLE BANK SUBSIDIARIES- In any case in which there are two or
  more subsidiary depository institutions of a financial services holding
  company that have substantially equal dollar amounts of assets and such
  depository institutions are not regulated by the same appropriate Federal
  banking agency, then the principal bank subsidiary shall be the depository
  institution with the greatest dollar amount of deposits on average for
  the last day of each quarter of the preceding calendar year.
  `(4) CALCULATION- All determinations regarding equity capital or assets,
  as appropriate, shall be made based upon those amounts on the last day of
  each of the four quarters over the preceding calendar year.
  `(5) EVALUATION- The appropriate Federal banking agency shall evaluate
  the principal bank subsidiary as defined in paragraphs (2) and (3) every
  five years for the purpose of determining whether a transfer to the other
  appropriate Federal banking agency is necessary. The first evaluation
  shall occur by April 30, 1998.
  `(6) TRANSFER- In any case in which the appropriate Federal banking
  agency has changed after evaluation, notice shall be given to the new
  appropriate Federal banking agency within thirty days after evaluation. A
  copy of the examination reports and any other reports required to be filed
  by the financial services holding company pursuant to section 6 of the
  Financial Services Holding Company Act of 1991 (12 U.S.C. 1845) for the
  prior two years shall be provided to the new appropriate Federal banking
  agency when notice is provided to such agency. Regulation and supervision
  of the financial services holding company shall be transferred to the new
  appropriate Federal banking agency no later than ninty days after notice
  has been provided.'.
  (b) EFFECTIVE DATE- The amendments made by subsection (a) shall become
  effective on January 1, 1993.
SEC. 323. EXAMINATIONS.
  (a) IN GENERAL- The Director has the power to conduct examinations of
  the affairs of each institution or entity for which the Director is the
  appropriate Federal banking agency, as defined in section 3(q)(1) of
  the Federal Deposit Insurance Act (12 U.S.C. 1813(q)(1)), and such other
  institution or entity over which the Director has examination authority
  pursuant to the Financial Services Holding Company Act of 1991.
  (b) ANNUAL EXAMINATIONS REQUIRED- At least once during every twelve-month
  period, the Director shall conduct an on-site examination of each depository
  institution and branch of a foreign bank for which the Director is the
  appropriate Federal banking agency, except annual examinations shall not
  be required for--
  (1) any depository institution or foreign bank branch for which a conservator
  or receiver has been appointed; and
  (2) any depository institution or foreign bank branch that has total assets
  of less than $1,000,000,000 as of December 31 of the year preceding a
  scheduled examination, and that is in compliance with the capital standards
  prescribed by the Director. Such depository institution shall be examined
  on-site at least once during the following eighteen-month period.
  (c) SPECIAL EXAMINATIONS- In addition to the examinations authorized or
  required under subsections (a) and (b), the Director may make any special
  examination of such institution or entity which the Director determines
  to be necessary.
  (d) EXAMINATION OF AFFILIATES- The Director may examine any affiliate
  (as defined in section 2 of the Banking Act of 1933 (12 U.S.C. 221a)) of
  a depository institution, and any other affiliate except those examined
  pursuant to the Financial Services Holding Company Act of 1991 (12
  U.S.C. 1841 et seq.), as may be necessary to disclose fully--
  (1) the relationship between the depository institution and its affiliate;
  and
  (2) the effect of such relationship on the depository institution.
  (e) ASSESSMENT IN CASE OF AFFILIATE'S REFUSAL TO PAY-
  (1) IN GENERAL- Subject to paragraph (2), if any affiliate of any depository
  institution, other than an affiliate examined pursuant to the Financial
  Services Holding Company Act of 1991--
  (A) refuses to pay any assessment, or
  (B) fails to pay any assessment before the end of the sixty-day period
  beginning on the date of the assessment,
the Director may assess such cost against, and collect such cost from,
such depository institution.
  (2) AFFILIATE OF MORE THAN ONE DEPOSITORY INSTITUTION- If any affiliate
  referred to in paragraph (1) is an affiliate of more than one depository
  institution, the assessment with respect to the affiliate may be assessed
  against, and collected from, any affiliated depository institution in such
  proportions as the Director may prescribe.
  (f) CIVIL MONEY PENALTIES FOR AFFILIATE'S REFUSAL TO COOPERATE-
  (1) PENALTY IMPOSED- If any affiliate of any depository institution referred
  to in subsection (e)--
  (A) refuses to permit any examiner appointed by the Director to make an
  examination, or
  (B) refuses to provide any information required to be disclosed in the
  course of examination,
the depository institution shall pay a civil penalty of not more than $5,000
for each day that such refusal continues.
  (2) ASSESSMENT AND COLLECTION- Any penalty imposed under paragraph (1)
  shall be assessed and collected by the Director in the manner provided in
  section 8(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)).
  (g) POWER AND DUTY OF EXAMINERS- Each examiner appointed by the Director
  shall have power to conduct--
  (1) a thorough examination and prepare a full report of condition of any
  depository institution for which the Director is the appropriate Federal
  banking agency, and
  (2) an examination pursuant to subsection (d) and prepare a full report
  of the findings.
  (h) ADMINISTRATION OF OATHS AND ACCESS TO RECORDS- In connection with
  examinations of depository institutions and their affiliates, the examiner
  shall--
  (1) have access to and power to administer oaths and examine any of the
  officers, directors, employees, or agents thereof under oath; and
  (2) be given prompt and complete access to all relevant books, records or
  documents of any type.
  (i) PUBLICATION OF REPORTS- The Director is authorized to publish the
  report of his examination of any national bank or affiliate which, within
  one hundred and twenty days after notification, fails to comply, to the
  satisfaction of the Director, with the recommendations or suggestions made
  in such examination. The national bank or affiliate shall be given ninety
  days notice prior to such publication.
  (j) LIMITATION ON VISITORIAL POWERS-
  (1) No depository institution chartered under Federal law shall be subject
  to any visitorial powers except as authorized by Federal law, vested in the
  courts of justice or such as shall be, or have been, exercised or directed
  by Congress or by either House thereof or by any committee of Congress or
  of either House duly authorized.
  (2) Notwithstanding paragraph (1), lawfully authorized State auditors
  and examiners may, at reasonable times and upon reasonable notice to a
  depository institution chartered under Federal law, review its records
  solely to ensure compliance with applicable State unclaimed property
  or escheat laws upon reasonable cause to believe that the depository
  institution has failed to comply with such laws.
  (k) The provisions of subsections (a) through (j) shall become effective
  on January 1, 1993.
SEC. 324. CONFORMING AMENDMENTS.
  (a) Section 5240 of the Revised Statutes, as amended (12 U.S.C. 481 through
  485) is revised to read as follows--
  `(a) In addition to the examinations made and conducted by the Director
  of the Office of Depository Institutions, every Federal reserve bank may,
  with the approval of the Federal reserve agent or the Board of Governors
  of the Federal Reserve System, provide for special examination of member
  banks within its district. The expense of such examinations may, in the
  discretion of the Board of Governors of the Federal Reserve System, be
  assessed against the banks examined, and, when so assessed, shall be paid
  by the banks examined. Such examination shall be so conducted as to inform
  the Federal reserve bank of the condition of its member banks and of the
  lines of credit which are being extended by them. Every Federal reserve
  bank shall at all times furnish to the Board of Governors of the Federal
  Reserve System such information as may be demanded concerning the condition
  of any member bank within the district of the said Federal reserve bank.
  `(b) The Board of Governors of the Federal Reserve System shall, at least
  once each year, order an examination of each Federal reserve bank, and
  upon joint application of ten member banks the Board of Governors of the
  Federal Reserve System shall order a special examination and report of
  the condition of any Federal reserve bank.'.
  (b) The Home Owners' Loan Act (12 U.S.C. 1461 et seq.) is amended--
  (1) in section 4(d)(1)(B) (12 U.S.C. 1463(d)(1)(B))--
  (A) by striking clauses (i) and (ii); and
  (B) by redesignating clauses (iii) through (vii) as clauses (i) through
  (v), respectively;
  (2) in section 10(b)(4) (12 U.S.C. 1467a(b)(4)), by striking the first
  two sentences; and
  (3) by repealing section 13 (12 U.S.C. 1486b).
  (c) The amendments made by subsections (a) and (b) shall become effective
  on January 1, 1993.
SEC. 325. APPOINTMENT OF A RECEIVER.
  (a) Section 1 of the Act of June 30, 1876 (12 U.S.C. 191), is amended to
  read as follows:
  `(1) GENERAL GROUNDS FOR APPOINTMENT OF A RECEIVER- A receiver may
  be appointed by the Director of the Office of Depository Institutions
  Supervision for any national banking association whenever the Director of
  the Office of Depository Institutions Supervision determines that one or
  more of the following circumstances exist:
  `(A) Whenever any national banking association shall be dissolved, and
  its rights, privileges, and franchises declared forfeited, as prescribed
  in section 5239 of the Revised Statutes, or whenever any creditor of any
  national banking association shall have obtained a judgment against it in
  any court of record, and made application, accompanied by a certificate
  from the clerk of the court stating that such judgment has been rendered
  and has remained unpaid for thirty days, or whenever the Director of the
  Office of Depository Institutions Supervision shall become satisfied of
  the insolvency of a national banking association;
  `(B) the bank is not likely to be able to meet the demands of its depositors
  or pay its obligations in the normal course of business;
  `(C) the bank is in an unsafe or unsound condition to transact business,
  including having substantially insufficient capital or otherwise;
  `(D)(i) the bank has incurred or is likely to incur losses that will
  deplete all or substantially all of its capital; and
  `(ii) there is no reasonable prospect for the bank's capital to be
  replenished without Federal assistance;
  `(E) there is or was a violation of laws, rules, or regulations, or any
  unsafe or unsound practice or condition which is likely to cause insolvency
  or substantial dissipation of assets or earnings, or is likely to weaken
  the bank's condition or otherwise seriously prejudice the interests of
  its depositors;
  `(F) there is concealment of books, papers, records, or assets of the bank,
  or refusal to submit books, papers, records, or affairs of the bank for
  inspection to any examiner or to any lawful agent of the Director of the
  Office of Depository Institutions Supervision;
  `(G) there is a willful or continuing violation of an order enforceable
  against the bank under section 18(i) of the Federal Deposit Insurance Act
  (12 U.S.C. 1818(i));
  `(H) the bank's board of directors consists of fewer than 5 members; or
  `(I) the national banking association is classified as a Zone 5 institution
  by the Director of the Office of Depository Institutions Supervision
  pursuant to section 35 of the Federal Deposit Insurance Act.'.
  (b) EFFECTIVE DATE- The amendments made by subsection (a) shall become
  effective on January 1, 1993.
Subtitle D--Transfer of Federal Deposit Insurance Corporation Authority
SEC. 331. AMENDMENTS TO THE FEDERAL DEPOSIT INSURANCE ACT.
  (a) INSURED DEPOSITORY INSTITUTION- Section 3(c)(3) of the Federal Deposit
  Insurance Act (12 U.S.C. 1813(c)(3)) is amended by striking `any uninsured'
  and inserting instead `any insured or uninsured'.
  (b) APPLICATION FOR INSURANCE- Section 5 of the Federal Deposit Insurance
  Act (12 U.S.C. 1815) is amended--
  (1) in subsection (a), by amending paragraph (1) to read as follows:
  `(1) National and State Nonmember Banks; State Savings Associations and
  State Savings Banks-
  `(A) Any national nonmember bank which is engaged in the business
  of receiving deposits, other than trust funds as herein defined, upon
  application by the bank and certification by the Director of the Office of
  Depository Institutions Supervision in the manner prescribed in subsection
  (b) of section 4 of this Act, any State nonmember bank, State savings
  association, and State savings bank, upon application to and examination
  by the Corporation and approval by the Board of Directors, may become an
  insured depository institution.
  `(B) Before approving the application of any such State nonmember bank,
  State savings association, and State savings bank, the Board of Directors
  shall give consideration to the factors enumerated in section 6 of this Act,
  and shall determine, upon the basis of a thorough examination of such bank or
  savings association, that its assets in excess of its capital requirements
  are adequate to enable it to meet all of its liabilities to depositors
  and other creditors as shown by the books of the bank or savings association.
  `(C) In the case of an application by a State savings association, the
  Board of Directors shall obtain the views of the Director of the Office
  of Depository Institutions Supervision. In the case of an application by
  a State nonmember bank or State savings bank, the Board of Directors shall
  obtain the views of the Board of Governors of the Federal Reserve System.
  `(D) The Corporation shall notify the Director of the Office of Depository
  Institutions Supervision or the Board of Governors of the Federal Reserve
  System, as appropriate, of its determination with respect to any such
  application.
  `(E) Before approving the application of any industrial bank or similar
  financial institution, the Board of Directors shall determine that it is
  chartered and operating under laws providing for examination, supervision,
  and liquidation substantially comparable to those applicable to banks
  operating in the same State.'; and
  (2) in subsection (b), by inserting `shall obtain the views of the
  Board of Governors of the Federal Reserve System and' before `shall give
  consideration'.
  (c) REPORTS OF CONDITION- Section 7(a)(1) of the Federal Deposit Insurance
  Act (12 U.S.C. 1817(a)(1)) is amended by striking the terms `Corporation'
  and `Board of Directors' wherever they appear and inserting instead `Board
  of Governors of the Federal Reserve System'.
  (d) ENFORCEMENT PROCEEDINGS- Section 8(b)(3) of the Federal Deposit
  Insurance Act (12 U.S.C. 1818(b)(3)) is amended to read as follows:
  `(3) This subsection and subsections (c) through (s) and subsection (u)
  of this section shall apply--
  `(A) to any financial services holding company, and to any subsidiary
  (other than a bank) of a financial services holding company, as those
  terms are defined in the Financial Services Holding Company Act of 1991
  (12 U.S.C. 1841 et seq.)--
  `(i) in the same manner as they apply to a State member or State nonmember
  insured bank, in the case of a financial services holding company, the
  principal bank subsidiary of which is a State member or State nonmember
  insured bank (except a District bank chartered by the Director); or
  `(ii) in the same manner as they apply to a national banking association,
  in the case of a financial services holding company, the principal bank
  subsidiary of which is a national banking association, a District bank
  chartered by the Director or a savings association; and
  `(B) to any organization organized and operated under section 25(a) of the
  Federal Reserve Act (12 U.S.C. 611 et seq.) or operating under section 25
  of the Federal Reserve Act (12 U.S.C. 601 et seq.), in the same manner as
  they apply to a State member insured depository institution.'.
  (e) EXAMINATIONS- Section 10(b)(2) of the Federal Deposit Insurance Act
  (12 U.S.C. 1820(b)(2)) is amended--
  (1) by striking subparagraph (A); and
  (2) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and
  (B), respectively.
  (f) AMENDMENTS TO SECTION 18 OF THE FEDERAL DEPOSIT INSURANCE ACT- Section
  18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended--
  (1) in subsection (c)--
  (A) by striking `responsible agency' wherever it appears and inserting
  instead `appropriate Federal banking agency';
  (B) by striking `responsible agencies' wherever it appears and inserting
  instead `appropriate Federal banking agencies';
  (C) by striking `the other two banking agencies referred to in this
  subsection' wherever it appears and inserting instead `the other appropriate
  Federal banking agency';
  (D) by striking `the other two banking agencies' wherever it appears and
  inserting instead `the other appropriate Federal banking agency'; and
  (E) in paragraph (2), by striking `written approval' and all that appears
  thereafter and inserting instead `written approval of the appropriate Federal
  banking agency for the acquiring, assuming, or resulting institution.';
  (2) in subsection (d), by striking `Corporation' wherever it appears and
  inserting instead `Board of Governors of the Federal Reserve System';
  (3) in subsection (g)--
  (A) by striking `Board of Directors' wherever it appears and inserting
  instead `Board of Governors of the Federal Reserve System'; and
  (B) in paragraph (1)--
  (i) in the first sentence, by striking `, or by regulation of the Board
  of Governors of the Federal Reserve System';
  (ii) in the second sentence, by striking `Board of Governors of the
  Federal Reserve System and Director of the Office of Thrift Supervision'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (iii) in the fifth sentence, by striking ', except that the term `member
  bank', as used in such section 2(b), shall be deemed to refer to an insured
  nonmember bank';
  (4) in subsection (i)--
  (A) in paragraph (1)--
  (i) by striking `(except a District bank)' and inserting instead `(except
  a District bank chartered by the Director of the Office of Depository
  Institutions Supervision)';
  (ii) by striking `Corporation' and inserting instead `Board of Governors
  of the Federal Reserve System'; and
  (B) in paragraph (2), by striking `written consent' and all that appears
  thereafter in such paragraph and inserting instead `written consent of
  the appropriate Federal banking agency for the acquiring, assuming or
  resulting institution.';
  (5) by repealing subsection (j); and
  (6) in subsection (l)--
  (A) by striking the terms `Corporation' and `Board of Directors' wherever
  they appear and inserting instead `Board of Governors of the Federal
  Reserve System'; and
  (B) by striking `subsection (j) of this section' and inserting instead
  `sections 23A (12 U.S.C. 371c et seq.), 23B (12 U.S.C. 371c-1 et seq.),
  and 22(h) (12 U.S.C. 375b et seq.) of the Federal Reserve Act, as amended'.
  (g) PARTICIPATION BY STATE NONMEMBER INSURED BANKS IN LOTTERIES AND RELATED
  ACTIVITIES- Section 20 of the Federal Deposit Insurance Act (12 U.S.C. 1829a)
  is repealed.
  (h) EFFECTIVE DATE- The amendments made by subsections (a) through (g)
  shall become effective on January 1, 1993.
SEC. 332. AMENDMENTS TO THE FEDERAL RESERVE ACT.
  (a) The Federal Reserve Act is amended--
  (1) in section 1 (12 U.S.C. 221), by inserting at the end of the second
  undesignated paragraph the following:
  `The term `insured State bank' shall mean a bank for which the Board of
  Governors of the Federal Reserve System is the appropriate Federal banking
  agency under the Federal Deposit Insurance Act. The term `insured nonmember
  bank' shall mean an insured State bank that has not become a member of
  one of the reserve banks created under this Act.';
  (2) in section 9A (12 U.S.C. 339), by striking `State member bank' wherever
  it appears and inserting instead `insured State bank';
  (3) in section 22(h) (12 U.S.C. 375b), by inserting `or insured nonmember
  bank' after `member bank' wherever it appears;
  (4) in section 23A (12 U.S.C. 371c), by inserting after subsection (e)
  the following new subsection:
  `(f) APPLICABILITY TO INSURED NONMEMBER BANKS- The provisions of this
  section shall apply to an insured nonmember bank and any subsidiary thereof
  in the same manner and to the same extent as such section applies to a
  member bank and any subsidiary thereof.';
  (5) in section 23B (12 U.S.C. 371c-1), by inserting after subsection (e)
  the following new subsection:
  `(f) APPLICABILITY TO INSURED NONMEMBER BANKS- The provisions of this
  section shall apply to an insured nonmember bank and any subsidiary thereof
  in the same manner and to the same extent as such section applies to a
  member bank and any subsidiary thereof.'; and
  (6) in section 29 (12 U.S.C. 504)--
  (A) by inserting `and any subsidiary thereof' after `member bank' wherever
  it appears; and
  (B) by inserting `and any insured nonmember bank and subsidiary thereof,
  and any institution-affiliated party with respect to such insured nonmember
  bank, which violates any provision of section 22(h), 23A, or 23B of this
  Act, or any regulation issued pursuant thereto,' before `shall forfeit'.
  (b) EFFECTIVE DATE- The amendments made by subsection (a) shall become
  effective on January 1, 1993.
SEC. 333. SAVINGS PROVISIONS.
  (a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED- No provision of
  this Act shall affect the validity of any right, duty, or obligation of the
  United States, the Federal Deposit Insurance Corporation, or any person,
  which existed on December 31, 1992.
  (b) CONTINUATION OF SUITS- No action or other proceeding commenced by or
  against the Federal Deposit Insurance Corporation or the Board of Directors
  of the Federal Deposit Insurance Corporation with respect to any power or
  duty of the Corporation that is transferred by this Act to the Board of
  Governors of the Federal Reserve System shall abate by reason of enactment
  of this Act, except that effective January 1, 1993, the Board of Governors
  of the Federal Reserve System shall be substituted as a party to any such
  action or proceeding.
  (c) CONTINUATION OF ORDERS, RESOLUTIONS, AND REGULATIONS- All orders,
  resolutions, determinations, regulations, interpretative rules, other
  interpretations, guidelines, procedures and other advisory material which--
  (1) have been issued, made, prescribed, or permitted to become effective
  by the Federal Deposit Insurance Corporation with respect to any power or
  duty of the Corporation that is transferred by this Act to the Board of
  Governors of the Federal Reserve System, and
  (2) are in effect on December 31, 1992, or become effective thereafter,
shall continue in effect according to the terms of such orders, resolutions,
determinations, regulations, interpretative rules, other interpretations,
guidelines, procedures or other advisory material; shall be administered
by the Board of Governors of the Federal Reserve System; and shall be
enforceable by or against the Board of Governors of the Federal Reserve
System until modified, terminated, set aside, or superseded in accordance
with applicable law by the Board of Governors of the Federal Reserve System,
by a court of competent jurisdiction, or by operation of law.
  (d) STATUS OF ADMINISTRATIVE RULES-
  (1) Any proposed regulation or rule of the Federal Deposit Insurance
  Corporation with respect to any power or duty of the Corporation that is
  transferred to the Board of Governors of the Federal Reserve System which
  has not been published as a final regulation by January 1, 1993, shall be
  deemed to be a proposed regulation or rule of the Board of Governors of
  the Federal Reserve System.
  (2) Any final or interim rule published by the Corporation prior to January
  1, 1993, but which shall not become effective prior to such date, shall
  become effective according to its terms.
  (e) APPLICATION- The provisions of this section shall apply except as
  otherwise expressly provided in this Act.
SEC. 334. TRANSFER OF PERSONNEL AND PROPERTY.
  (a) EMPLOYEES TRANSFERRED- The Chairman of the board of the Federal
  Deposit Insurance Corporation and the Chairman of the Board of Governors
  of the Federal Reserve System shall jointly determine the employees of the
  Federal Deposit Insurance Corporation necessary to perform or support the
  functions or activities which are transferred from the Federal Deposit
  Insurance Corporation to the Board of Governors of the Federal Reserve
  System by this Act, and such employees shall be transferred to the Board
  of Governors of the Federal Reserve System in accordance with this section.
  (b) RIGHTS OF TRANSFERRED EMPLOYEES- All employees identified for transfer
  under subsection (a) shall be entitled to the following rights:
  (1) Each employee so identified shall be transferred to the Board of
  Governors of the Federal Reserve System for employment no later than January
  1, 1993. Notwithstanding any other provision of law, section 3503 of title
  5, United States Code, shall be applicable to each such transfer.
  (2) Each transferred employee shall be guaranteed a position with the Board
  of Governors of the Federal Reserve System with comparable creditable
  service, and with pay no lower than the pay to which such employee was
  entitled on the day immediately preceding the transfer. Each such employee
  holding a permanent position shall not be involuntarily separated or
  reduced in grade or compensation for one year after the date of transfer,
  except for cause.
  (3) If the Board of Governors of the Federal Reserve System determines after
  December 31, 1993, but before December 31, 1995, that a reorganization of
  the combined work force is required, that reorganization shall be deemed
  a `major reorganization' for purposes of affording affected employees'
  retirement under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United
  States Code, or under any other retirement plan for Government employees
  to which such employees may belong.
  (4) Any transferred employee accepting employment with the Board of
  Governors of the Federal Reserve System as a result of such transfer may
  retain for one year after the date such transfer occurs membership in any
  employee benefit program of the Federal Deposit Insurance Corporation,
  other than a retirement program but including insurance, to which that
  employee belongs on the day immediately preceding the transfer if--
  (A) the employee does not elect to give up the benefit or membership in
  the program; and
  (B) the benefit or program is continued by the Board of Governors of the
  Federal Reserve System. The excess of the costs of the benefits provided by
  this section over the costs of benefits which would have been provided by
  the Board of Governors of the Federal Reserve System shall be paid by the
  Federal Deposit Insurance Corporation. If any transferred employee elects
  to give up membership in a health insurance program of the Federal Deposit
  Insurance Corporation or the health insurance program is not continued by the
  Federal Deposit Insurance Corporation, such employee may elect to participate
  in a health insurance program offered by the Board of Governors of the
  Federal Reserve System within one year after the date of such transfer.
  (5) Except as provided in paragraph (6), any transferred employee accepting
  employment with the Board of Governors of the Federal Reserve System shall
  remain in any retirement plan established by chapter 83 of title 5, United
  States Code, or the retirement plan established by chapter 84 of title 5,
  United States Code, to which the employee belongs immediately preceding
  the transfer if--
  (A) the employee does not elect to give up membership in the program; and
  (B) the program is continued.
After their transfer, the Board of Governors of the Federal Reserve System will
make all contributions to such program concerning such transferred employees
that would have been made by the Federal Deposit Insurance Corporation if the
employee had remained an employee of the Federal Deposit Insurance Corporation.
  (6) Any transferred employee accepting employment with the Board of Governors
  of the Federal Reserve System who, immediately prior to such transfer,
  is an employee within the meaning of section 8401(11) of title 5, United
  States Code, may elect to remain in the Federal Employees' Retirement System
  established under chapter 84 of title 5, United States Code, in accordance
  with paragraph (5), or may elect, within one year after the date of transfer,
  to transfer to the retirement program offered by the Board of Governors
  of the Federal Reserve System generally to employees whose service with
  the Board commenced after December 31, 1983. Any transferring employee
  making such an election shall forego all benefits under the retirement
  programs established under subchapters I, II, IV, V, and VI of chapter
  84 of title 5, United States Code, but shall receive benefits under the
  program offered by the Board of Governors of the Federal Reserve System as
  though such employee had enrolled in the Board of Governors of the Federal
  Reserve System's retirement program on the same date that such employee
  enrolled in the retirement programs established under such subchapters.
  (7) All transferring employees shall be placed in positions at the Board
  of Governors of the Federal Reserve System comparable to the positions
  from which such employees were transferred.
  (8) The Board of Governors of the Federal Reserve System shall take such
  action as is necessary on a case-by-case basis so that employees transferring
  under this section receive equitable treatment regarding credit for prior
  service with a Federal entity or instrumentality, with respect to the
  transferred employees' retirement accounts, and accrued leave or vacation
  time, in recognition of the transferring employees' service.
  (9) Transferring employees shall receive notice of their position assignments
  not later than one hundred and twenty days after the effective date of
  their transfer.
  (10) Except as specifically set forth herein, transferred employees shall
  have the same rights and entitlements as other similarly situated employees
  of the Board of Governors of the Federal Reserve System pursuant to sections
  10 and 11(l) of the Federal Reserve Act (12 U.S.C. 244 and 248(l)).
  (c) TRANSFER OF PROPERTY- Not later than January 1, 1993, the Chairman of
  the Board of the Federal Deposit Insurance Corporation and the Chairman of
  the Board of Governors of the Federal Reserve System shall jointly determine
  the property of the Federal Deposit Insurance Corporation used to perform
  the functions and activities transferred from the Federal Deposit Insurance
  Corporation to the Board of Governors of the Federal Reserve System by
  this Act, and such property shall then be transferred promptly to the
  Board of Governors of the Federal Reserve System. The Board of Governors
  of the Federal Reserve System may hold such property and acquire any such
  other property as is necessary to perform the transferred functions and
  activities or related functions or activities with respect to State member
  banks or financial services holding companies.
  (d) CONTINUATION OF AGENCY SERVICES- Any agency, department, or other
  instrumentality of the United States, or any successor to any such agency,
  department or instrumentality, which was providing support services to the
  Federal Deposit Insurance Corporation immediately before the date of any
  transfer of functions to the Board of Governors of the Federal Reserve System
  under this section in connection with such transferred functions shall--
  (1) continue to provide such service, on a reimbursable basis, in accordance
  with the terms of the arrangement pursuant to which such services were
  provided until modified or terminated in accordance with such terms except
  that the Board of Governors of the Federal Reserve System shall substitute
  for the Board of Directors of the Federal Deposit Insurance Corporation
  as a party to the arrangement; and
  (2) consult with the Board of Governors of the Federal Reserve System to
  coordinate and facilitate a prompt and reasonable transition.
  (e) CONFORMING AMENDMENTS TO THE FEDERAL RESERVE ACT-
  (1) Section 10(3) of the Federal Reserve Act, as amended (12 U.S.C. 243),
  is amended--
  (A) by striking `site or building in the District of Columbia' and inserting
  instead `such sites or buildings'; and
  (B) by striking the terms `any sites' and `building' wherever they appear
  and inserting instead `building or buildings'.
  (2) Section 10(9) of the Federal Reserve Act, as amended (12 U.S.C. 522),
  is repealed.
Subtitle E--Litigation Authority
SEC. 341. LITIGATION AUTHORITY.
  (a) Notwithstanding any other provision of this Act, the Director, the Board
  of Governors of the Federal Reserve System, the Federal Deposit Insurance
  Corporation, and the National Credit Union Administration may employ
  attorneys to conduct litigation brought by or against their respective
  agencies, officers, or employees, in matters affecting such agencies, but
  such litigation may be conducted only with the prior consent of the Attorney
  General, and subject to the Attorney General's direction and control.
  (b) Section 5(d)(1)(A) of the Home Owners' Loan Act (12 U.S.C. 1464(d)(1)(A))
  is amended by striking the second sentence.
  (c) Subsections (a) and (b) shall become effective on January 1, 1993.
Subtitle F--Reorganization of Boards of Directors
SEC. 351. FEDERAL DEPOSIT INSURANCE CORPORATION BOARD OF DIRECTORS.
  (a) REORGANIZATION- Section 2 of the Federal Deposit Insurance Act (12
  U.S.C. 1812) is amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (2) by striking `Director of the Office of Thrift Supervision' wherever
  it appears and inserting instead `Chairman of the Board of Governors of
  the Federal Reserve System'; and
  (3) in subsection (a), by striking paragraph (2).
  (b) CONFORMING AMENDMENT TO THE FEDERAL RESERVE ACT- Section 11(k) of the
  Federal Reserve Act (12 U.S.C. 248(k)) is amended by adding at the end
  thereof the following: `The Chairman may delegate the authority of the
  Chairman to serve as a member of the Board of Directors of the Federal
  Deposit Insurance Corporation to any member or employee of the Board or
  to any officer of a Federal Reserve bank.'.
  (c) EFFECTIVE DATE- The amendments made by this subsection shall become
  effective January 1, 1993.
SEC. 352. REORGANIZATION OF NATIONAL CREDIT UNION ADMINISTRATION BOARD
OF DIRECTORS.
  (a) Section 102(b) of the Federal Credit Union Act (12 U.S.C. 1752a(b))
  is amended--
  (1) in the first sentence--
  (A) by inserting `two of whom shall be independent members' after
  `members,'; and
  (B) by inserting `, and one of whom shall be the Director of the Office
  of Depository Institutions Supervision' after `Senate';
  (2) in the second sentence, by inserting `independent' before `members'; and
  (3) by striking the third sentence.
  (b) The amendments made by subsection (a) shall become effective January
  1, 1993.
Subtitle G--Savings Provisions for the Transfer of Authority from the Board
of Governors of the Federal Reserve System to the Director
SEC. 361. SAVINGS PROVISIONS.
  (a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS NOT AFFECTED- No provision of
  this title shall affect the validity of any right, duty, or obligation of
  the United States, the Board of Governors of the Federal Reserve System,
  or any person, which existed on December 31, 1992.
  (b) CONTINUATION OF SUITS- No action or other proceeding commenced by or
  against the Board of Governors of the Federal Reserve System with respect to
  any authority transferred from the Board to the Director pursuant to this
  Act shall abate by reason of enactment of this Act, except that, effective
  January 1, 1993, the Director shall be substituted, as appropriate, as a
  party to any such action or proceeding.
  (c) CONTINUATION OF ORDERS, RESOLUTIONS, DETERMINATIONS, AND REGULATIONS- All
  orders, resolutions, determinations, regulations, interpretative rules, other
  interpretations, guidelines, procedures and other advisory material which--
  (1) have been issued, made, prescribed, or permitted to become effective
  by the Board of Governors of the Federal Reserve System with respect to any
  function transferred from the Board to the Director pursuant to this Act; and
  (2) are in effect on December 31, 1992, or become effective thereafter.
shall continue in effect according to the terms of such orders, resolutions,
determinations, regulations, interpretative rules, other interpretations,
guidelines, procedures or other advisory material; shall be administered by
the appropriate Federal banking agency; and shall be enforceable by or against
the appropriate Federal banking agency until modified, terminated, set aside,
or superseded in accordance with applicable law by the appropriate Federal
banking agency, by any court of competent jurisdiction, or by operation of law.
  (d) STATUS OF ADMINISTRATIVE RULES-
  (1) Any proposed regulation or rule of the Board of Governors of the Federal
  Reserve System relating to any function transferred from the Board to the
  Director pursuant to this Act, which has not been published as a final
  regulation by the date that the supervisory and regulatory authority of
  the Board of Governors of the Federal Reserve System is transferred to the
  Director pursuant to this Act, shall be deemed to be a proposed regulation
  of the appropriate Federal banking agency.
  (2) Any final or interim rule that would be transferred pursuant to paragraph
  (1) if it were effective prior to January 1, 1993, but which will become
  effective subsequent to such date, shall become effective according to
  its terms.
  (e) APPLICATION- The provisions of this section shall apply except as
  otherwise expressly provided in this Act.
TITLE IV--BANK INSURANCE FUND RECAPITALIZATION
Subtitle A--Federal Deposit Insurance Corporation Borrowing
SEC. 401. FEDERAL DEPOSIT INSURANCE CORPORATION BORROWING.
  Section 15 of the Federal Deposit Insurance Act (12 U.S.C. 1825) is amended--
  (1) by inserting after subsection (d) the following new subsection:
  `(e) CORPORATION BORROWINGS-
  `(1) AUTHORITY- The Corporation shall have the authority to borrow funds
  from any Federal Reserve bank, provided that the Corporation shall have
  no more than $25,000,000,000 in borrowings outstanding at any one time
  from all Federal Reserve banks.
  `(2) LIMITATIONS- Any borrowing undertaken by the Corporation pursuant to
  paragraph (1) shall be undertaken only for the following purposes:
  `(A) to maintain or improve the liquidity of the Bank Insurance Fund; or
  `(B) to provide financial assistance with respect to any insured depository
  institution, or receivership or conservatorship of an insured depository
  institution, pursuant to section 11 or section 13.'; and
  (2) by amending subsection (c)(6) to read as follows:
  `(6) Exceptions-
  `(A) With the prior approval of the Secretary of the Treasury, the
  Corporation may issue or incur up to $5,000,000,000 in the aggregate of
  additional liabilities in excess of the limitations of paragraph (5). The
  amount which the Corporation may borrow from the Secretary of the Treasury
  under section 14 shall be reduced by the amount of additional liabilities
  issued or incurred pursuant to this paragraph.
  `(B) Obligations issued and funds received by the Corporation pursuant
  to section 15(e) shall not be subject to, and shall not be counted in
  calculating compliance with, the limitations of paragraph (5).
  `(C) In calculating compliance with the limitations of paragraph (5), an
  amount equal to $5,000,000,000 less the amount of outstanding borrowing
  by the Corporation from the Secretary of the Treasury under section 14,
  or otherwise borrowed under subparagraph (A) included in net worth.'.
SEC. 402. AMENDMENT TO THE FEDERAL RESERVE ACT.
  Section 13 of the Federal Reserve Act (12 U.S.C. 342-347d) is amended by
  adding at the end thereof the following: `Subject to such restrictions,
  limitations and regulations as the Board of Governors of the Federal
  Reserve System shall prescribe, any Federal Reserve bank is authorized
  to make advances to the Federal Deposit Insurance Corporation, upon its
  request. Such advances shall bear interest at the current market yield
  on outstanding marketable obligations of the United States of comparable
  maturities, as of the date of advance.'.
Subtitle B--Federal Deposit Insurance Corporation Assessments
SEC. 411. MAXIMUM AGGREGATE ASSESSMENT.
  Section 7(b)(1)(C) of the Federal Deposit Insurance Act (12
  U.S.C. 1817(b)(1)(C)) is amended--
  (1) by amending clause (iii) to read as follows:
  `(iii) MAXIMUM AGGREGATE ASSESSMENT- Notwithstanding clause (i), the
  maximum aggregate assessment charged to the members of the Bank Insurance
  Fund for any semiannual period, shall not exceed 0.15 percent of aggregate
  assessment base for such semiannual period.'; and
  (2) by inserting after clause (iii) the following:
  `The Corporation shall have the authority to make such estimates and
  projections as may be appropriate for the purpose of computing assessment
  rates and aggregate assessment target amounts, and such estimates and
  projections shall not be subject to review by any court, nor shall any
  court have authority to stay or enjoin the Corporation from collecting
  assessments so computed. No action seeking repayment of an assessment
  collected by the Corporation may be brought later than sixty days after
  the date on which such assessment is due.'.
SEC. 412. BANK INSURANCE FUND BORROWING ASSESSMENT.
  Section 7(b)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)(1))
  is further amended by inserting after subparagraph (F) the following new
  subparagraph:
  `(G) DEDICATION OF BANK INSURANCE FUND ASSESSMENTS FOR THE REPAYMENT OF
  BANK INSURANCE FUND BORROWING FROM THE FEDERAL RESERVE BANK- Subject to
  the provisions of this paragraph, if the Corporation has borrowed funds
  from a Federal Reserve bank as authorized by section 15(e), and so long
  as any such borrowing remains out- standing, the Board of Directors is
  authorized and directed--
  `(i) to determine the amount of semiannual Bank Insurance Fund assessments
  received by the Corporation necessary to pay interest and principal on
  such borrowings pursuant to their terms; and
  `(ii) to take whatever actions are necessary to dedicate that portion
  of the semiannual assessments received, determined pursuant to clause
  (i), to pay interest and principal on such borrowings pursuant to their
  terms. The amounts so dedicated shall not be available for any purpose
  other than payment of interest and principal of such borrowings.'.
TITLE V--MISCELLANEOUS PROVISIONS
Subtitle A--Payment System Risk Reduction
SEC. 501. FINDINGS AND PURPOSE.
  The Congress finds that--
  (1) many financial institutions engage daily in thousands of transactions
  with other financial institutions directly and through clearing
  organizations;
  (2) the efficient processing of such transactions is essential to a smoothly
  functioning economy;
  (3) such transactions can be processed most efficiently if, consistent
  with applicable contractual terms, obligations among financial institutions
  are netted;
  (4) such netting procedures would reduce the systemic risk within the
  banking system and financial markets; and
  (5) the effectiveness of such netting procedures can be assured only
  if they are recognized as valid and legally binding in the event of the
  closing of a financial institution participating in the netting procedures.
SEC. 502. DEFINITIONS.
  For purposes of this subtitle--
  (1) `Broker/dealer' means a company that is registered or licensed under
  Federal or State law to engage in the business of brokering, underwriting,
  or dealing in securities in the United States.
  (2) `Clearing organization' means a clearing house, clearing association,
  clearing corporation or a similar organization that provides clearing or
  settlement services for its members and in which all members other than
  the clearing organization itself are financial institutions.
  (3) `Covered clearing obligation' means an obligation of a member of a
  clearing organization to make payment to another member of that clearing
  organization.
  (4) `Covered contractual payment entitlement' means--
  (A) an entitlement of a financial institution to receive a payment,
  subject to a netting contract from another financial institution; and
  (B) an entitlement of a member of a clearing organization to receive
  payment, subject to a netting contract, from another member of that clearing
  organization of a covered clearing obligation.
  (5) `Covered contractual payment obligation' means--
  (A) an obligation of a financial institution to make payment, subject to
  a netting contract to another financial institution; and
  (B) a covered clearing obligation.
  (6) `Depository institution' means--
  (A) a depository institution as defined in Section 19(b)(1)(A)(i)-(vi)
  of the Federal Reserve Act (12 U.S.C. 461(b)(1)(A)(i)-(vi));
  (B) a branch or agency as defined in Section 1(b) of the International
  Banking Act of 1978 (12 U.S.C. 3101(b));
  (C) a corporation chartered under Section 25(a) of the Federal Reserve Act
  (12 U.S.C. 611 et seq.); or
  (D) a corporation having an agreement or undertaking with the Board of
  Governors of the Federal Reserve System under section 25 of the Federal
  Reserve Act (12 U.S.C. 601 et seq.).
  (7) `Failed financial institution' means a financial institution that
  fails to satisfy a covered contractual payment obligation when due,
  that has commenced or had commenced against it insolvency, liquidation,
  reorganization, receivership (including the appointment of a receiver),
  conservatorship or similar proceedings, or that has generally ceased to
  meet its obligations when due.
  (8) `Failed member' means any member that fails to satisfy a covered
  clearing obligation when due, that has commenced or had commenced against
  it insolvency, liquidation, reorganization, receivership (including the
  appointment of a receiver), conservatorship or similar proceedings, or
  that has generally ceased to meet its obligations when due.
  (9) `Financial institution' means a broker/dealer, a depository institution,
  or a futures commission merchant, or any other institution as determined
  by the Board of Governors of the Federal Reserve System.
  (10) `Futures commission merchant' means a company that is registered or
  licensed under Federal or State law to engage in the business of selling
  futures and options in commodities.
  (11) `Members' means a member of or participant in a clearing organization
  and includes the clearing organization.
  (12) `Net entitlement' means the amount by which a financial institution's
  covered contractual payment entitlements exceeds its covered contractual
  payment obligations after netting under a netting contract.
  (13) `Net obligation' means the amount by which a financial institution's
  covered contractual payment obligations exceed its covered contractual
  payment entitlements after netting under a netting contract.
  (14) `Netting contract' means a contract or agreement, including the rules
  of a clearing organization, between two or more financial institutions
  that is governed by the laws of the United States or any subdivision
  thereof or any State thereof and provides that covered contractual payment
  obligations between and among financial institutions shall be netted and
  set off against each other.
SEC. 503. BILATERAL NETTING.
  (a) Notwithstanding any other provision of law, the covered contractual
  payment obligations and the covered contractual payment entitlements between
  any two financial institutions shall be netted in accordance with, and
  subject to the conditions of, the terms of any applicable netting contract.
  (b) The only obligation, if any, of a financial institution to make
  payment with respect to covered contractual payment obligations to another
  financial institution shall be equal to its net obligation to such other
  financial institution (and no such obligation shall exist if there is no
  net obligation).
  (c) The only right, if any, of a financial institution to receive payments
  with respect to covered contractual payment entitlements from another
  financial institution shall be equal to its net entitlement with respect
  to such other financial institution (and no such right shall exist if
  there is no net entitlement).
  (d) The net entitlement of any failed financial institution, if any,
  shall be paid to the failed financial institution in accordance with,
  and subject to the conditions of, the applicable netting contract. The
  provisions of this section shall be given effect notwithstanding that a
  financial institution is a failed financial institution.
SEC. 504. CLEARING ORGANIZATION NETTING.
  (a) Notwithstanding any other provision of law, the covered contractual
  payment obligations and covered contractual payment entitlements of a
  member of a clearing organization to and from all other members of the
  clearing organization shall be netted in accordance with and subject to
  the conditions of any applicable netting contract.
  (b) The net entitlement of any failed member, if any, shall be paid
  to the failed member in accordance with, and subject to the conditions
  of, the applicable netting contract. Such failed member shall have no
  recognizable claim against any member of such clearing organization for
  any amount based on such covered contractual payment entitlements other
  than its net entitlement.
SEC. 505. PREEMPTION.
  No stay, injunction, avoidance, moratorium, or similar proceeding or order,
  whether issued or granted by a court, administrative agency, or otherwise,
  shall limit or delay application of the netting in accordance with sections
  503 and 504.
Subtitle B--Right to Financial Privacy Act Amendments
SEC. 511. AMENDMENTS TO THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978.
  The Right to Financial Privacy Act of 1978 is amended--
  (1) in section 1112(f)(2) (12 U.S.C. 3412(f)(2))--
  (A) by inserting `for civil actions under section 951 of the Financial
  Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833a),
  or for forfeiture under sections 981 or 982 of title 18, United States Code'
  after `purposes'; and
  (B) by inserting at the end thereof `No agency or department so transferring
  such records shall be deemed to have waived any privilege applicable to
  those records under law.'; and
  (2) in section 1113(l) (12 U.S.C. 3413(1)), by inserting at the end thereof
  `No supervisory agency so transferring such record shall be deemed to have
  waived any privilege applicable to that record under law.'.
Subtitle C--Reduction in Regulatory Burden
SEC. 521. HOME MORTGAGE DISCLOSURE ACT.
  The Home Mortgage Disclosure Act is amended--
  (1) in section 304 (12 U.S.C. 2803), by striking subsection (i); and
  (2) in section 309 (12 U.S.C. 2808)--
  (A) by striking $10,000,000' and inserting instead `$50,000,000'; and
  (B) by inserting at the end thereof the following new sentence: `The
  amount of total assets in the preceding sentence shall be adjusted yearly
  on January 1 by the annual percentage change in the Consumer Price Index
  reported for the previous June 1.'.
SEC. 522. REGULATORY BURDEN STUDY.
  (a) IN GENERAL- The Secretary of the Treasury, and the head of each
  appropriate Federal banking agency (as defined in section 3(q) of the Federal
  Deposit Insurance Act (12 U.S.C. 1813(q)) shall each conduct a review of
  all laws primarily under their respective jurisdictions and all regulations
  prescribed by them (except with respect to the Internal Revenue Code of 1986,
  and all regulations, rules and orders issued thereunder) with respect to
  such laws to determine whether such laws and regulations adversely affect
  the capital position and profitability of insured depository institutions.
  (b) ADDITIONAL REVIEW REQUIRED- The review required by subsection (a)
  shall include an evaluation to determine whether such laws and regulations
  impose duplicative paperwork and compliance requirements.
  (c) REPORT REQUIRED- Not later than one year after the date of enactment of
  this Act, the Secretary of the Treasury, and the head of each appropriate
  Federal banking agency shall each submit a report to the Congress
  containing--
  (1) a description of the laws and regulations that should be revised,
  simplified, repealed or rescinded in order to enhance the capitalization
  and profitability of insured depositary institutions without adversely
  affecting safety and soundness and consumer protection;
  (2) to the extent practicable, a cost/benefit analysis of such laws and
  regulations, including those pertaining to corporate applications and
  filings and other reporting and recordkeeping requirements;
  (3) an analysis of the cost impact and effect on safety and soundness of
  reducing the number of items to be reported on reports of condition of
  depository institutions with assets of under $50,000,000; and
  (4) an evaluation of the appropriateness of `sunsetting' recordkeeping
  and reporting requirements not directly related to safety and soundness.
SEC. 523. FAIR HOUSING REPORTING.
  Effective one year after the date of enactment of this Act, no appropriate
  Federal banking agency shall require any institution for which it is the
  appropriate Federal banking agency (as defined in section 3(q) of the
  Federal Deposit Insurance Act (12 U.S.C. 1813(q)) to prepare, file, or
  maintain any form for the purpose of collection, analysis, or maintenance of
  appropriate data to further the purposes of, or to fulfill the requirements
  of, the Fair Housing Act (42 U.S.C. 3601 et seq.), other than a form for
  data collection, analysis, or maintenance prescribed pursuant to the Home
  Mortgage Disclosure Act (12 U.S.C. 2801 et seq.).
Subtitle D--Expedited Funds Availability
SEC. 531. AMENDMENT OF THE EXPEDITED FUNDS AVAILABILITY ACT.
  Section 604(f)(2) of the Expedited Funds Availability Act (12
  U.S.C. 4003(f)(2)) is amended by inserting after subparagraph (C) the
  following new subparagraph:
  `(D) After a depository institution has provided notice as required under
  subparagraphs (A), (B) and (C), no further notice shall be required until
  the earlier of one year after notice has been provided or such other time
  as the exception for which the notice was provided ceases to apply.'.
Subtitle E--Final Settlement Payment Procedure
SEC. 541. FINAL SETTLEMENT PAYMENT PROCEDURE.
  Section 11(d) of the Federal Deposit Insurance Act (12 U.S.C. 1821(d))
  is amended by redesignating paragraphs (4) through (16) as paragraphs (5)
  through (17), respectively, and inserting after paragraph (3) the following
  new paragraph:
  `(4) FINAL SETTLEMENT PAYMENT PROCEDURE-
  `(A) IN GENERAL- In the handling of receiverships of insured institutions,
  to maintain essential liquidity and to prevent financial disruption,
  the Corporation may, after the declaration of an insured institution's
  insolvency, settle all uninsured and unsecured claims on the receivership
  with a final settlement payment which shall constitute full payment and
  disposition of the Corporation's obligations to such claimants.
  `(B) FINAL SETTLEMENT PAYMENT- A `final settlement payment' is the amount
  equal to the product of the final settlement payment rate and the amount
  of the uninsured and unsecured claim on the receivership.
  `(C) FINAL SETTLEMENT PAYMENT RATE- The `final settlement payment rate'
  shall be--
  `(i) a percentage rate reflecting an average of the Corporation's
  receivership recovery experience, determined by the Corporation in such
  a way that over such time period as the Corporation may deem appropriate,
  the Corporation in total will receive no more or less than it would have
  received in total as a general creditor standing in the place of insured
  depositors in each specific receivership; and
  `(ii) determined and announced annually by the Corporation.
  `(D) CORPORATION AUTHORITY- The Corporation may undertake such supervisory
  actions and promulgate such regulations as may be necessary to assure that
  the requirements of this section can be implemented with respect to each
  insured institution in the event of its insolvency.'.
TITLE VI--TECHNICAL AND CONFORMING AMENDMENTS
Subtitle A--Severability; Transition References
SEC. 601. SEVERABILITY.
  If any provision of this Act, or application thereof to any person
  or circumstances, is held invalid, the remainder of the Act, and the
  application of any remaining provision to other persons or circumstances,
  shall not be affected thereby.
SEC. 602. TRANSITION REFERENCES.
  Effective on the date of enactment of this Act, and until January 1,
  1993, any reference to a financial services holding company or to the
  Financial Services Holding Company Act of 1991 in any amendment made by,
  or provision of, this Act that becomes effective prior to such date shall
  be deemed to include a reference to a bank holding company and the Bank
  Holding Company Act of 1956, respectively.
Subtitle B--Technical and Conforming Amendments
SEC. 611. AMENDMENT TO ACTS CODIFIED IN TITLE 2, UNITED STATES CODE.
  (a) THE FEDERAL ELECTION CAMPAIGN ACT OF 1971- The Federal Election Campaign
  Act of 1971 is amended effective on the date of enactment of this Act--
  (1) in section 301(8)(B)(vii) (2 U.S.C. 431(8)(B)(vii)), by striking',
  Federal Savings and Loan Insurance Corporation,'; and
  (2) in section 302(h)(1) (2 U.S.C. 432(h)(1)), by striking `, the Federal
  Savings and Loan Insurance Corporation,'.
  (b) THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985- The
  Balanced Budget and Emergency Deficit Control Act of 1985 is amended--
  (1) in section 255(g)(1)(A) (2 U.S.C. 905(g)(1)(A))--
  (A) by striking `Comptroller of the Cur- rency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'; and
  (B) by striking `Director of the Office of Thrift Supervision'; and
  (2) in section 256(b)(4) (2 U.S.C. 906(b)(4))--
  (A) in subparagraph (A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (B) by striking subparagraphs (C) and (D); and
  (C) by redesignating subparagraphs (E) through (I) as subparagraphs (C)
  through (G), respectively.
SEC. 612. AMENDMENTS TO TITLE 5, UNITED STATES CODE.
  Title 5, United States Code, is amended--
  (1) in section 3132(a)(1)(D), by striking `Office of the Comptroller of
  the Currency, the Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision';
  (2) in section 5314--
  (A) by striking `Comptroller of the Currency';
  (B) by striking `Director of the Office of Thrift Supervision'; and
  (C) by inserting at the end thereof `Director of the Office of Depository
  Institutions Supervision.';
  (3) in section 5373(2)--
  (A) by sriking `482,'; and
  (B) by striking `2A(i) of the Home Owners' Loan Act' and inserting instead
  `305 of the Financial Institutions Safety and Consumer Choice Act of 1991;';
  (4) in section 8438(a)(7)(B), effective on the date of enactment of this
  Act, by striking `Federal Savings and Loan Insurance Corporation' and
  inserting instead `Federal Deposit Insurance Corporation'; and
  (5) in section 8478(a)(2)(B)(iii), by striking `or the Federal Savings
  and Loan Insurance Corporation'.
SEC. 613. AMENDMENT TO ACT CODIFIED IN TITLE 7, UNITED STATES CODE.
  THE FOOD STAMP ACT OF 1977- Section 10 of the Food Stamp Act of 1977
  (7 U.S.C. 2019) is amended effective on the date of enactment of this Act--
  (1) by striking `the Federal Savings and Loan Insurance Corporation, or'; and
  (2) by striking `the Federal Savings and Loan Insurance Corporation or'.
SEC. 614. AMENDMENTS TO TITLE 11, UNITED STATES CODE.
  Title 11, United States Code, is amended--
  (1) in section 365(o)--
  (A) by striking `the Director of the Office of Thrift Supervision, the
  Comptroller of the Currency,' and inserting instead `the Director of the
  Office of Depository Institutions Supervision,'; and
  (B) by striking `its' and inserting instead `their'; and
  (2) in section 507(a)(8), by striking `the Director of the Office of
  Thrift Supervision, the Comptroller of the Currency,' and inserting instead
  `the Director of the Office of Depository Institutions Supervision,'.
SEC. 615. AMENDMENTS TO ACTS CODIFIED IN TITLE 12, UNITED STATES CODE.
  (a) THE ACT OF JANUARY 3, 1923- Chapter 22 of the Act of January 3, 1923
  (12 U.S.C. 7), is amended by striking `The Comptroller of the Currency
  may designate a national bank examiner to act as chief of the examining
  division in his office.'.
  (b) THE ACT OF MARCH 4, 1923- The Act of March 4, 1923, is amended--
  (1) in section 209(b), as amended (12 U.S.C. 9), by striking `The Comptroller
  of the Currency is hereby authorized to employ such additional examiners' and
  all that follows through `the performance of the work of that bureau.'; and
  (2) in section 209(b), as amended (12 U.S.C. 10), by striking `The salaries
  of the Deputy Comptrollers and of all national bank examiners and assistant
  examiners assigned to duty in the office of the bureau in Washington in
  connection with the supervision of national banks shall be considered part
  of the expenses of the examinations provided for by section 5240 of the
  Revised Statutes as amended.'.
  (c) THE BANK CONSERVATION ACT- The Bank Conservation Act (12 U.S.C. 201
  et seq.) is amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) by striking `Comptroller' wherever it appears and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (d) THE ACT OF OCTOBER 28, 1974- Section 111 of the Act of October 28,
  1974, Public Law 93-495 (12 U.S.C. 250), is amended by striking `the
  Director of the Office of Thrift Supervision,'.
  (e) THE FEDERAL RESERVE ACT- The Federal Reserve Act is amended--
  (1) in section 11, as amended (12 U.S.C. 248)--
  (A) in subsection (a)(3)(A) (as redesignated by section 106(a)(1)(A)
  of this Act), by striking `member' and inserting instead `State'; and
  (B) in subsection (d)--
  (i) by striking `the bureau under the charge of the Comptroller of the
  Currency' and inserting instead `the Secretary of the Treasury'; and
  (ii) by striking `the Comptroller' after `such notes may be delivered by',
  and inserting instead `the Secretary of the Treasury';
  (2) in section 6, as amended (12 U.S.C. 288), by striking `Comptroller of
  the Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (3) in the third undesignated paragraph of section 9, as amended (12
  U.S.C. 321, third paragraph), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (4) in the sixth undesignated paragraph of section 9, as amended (12
  U.S.C. 324), by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision';
  (5) in the fourth and fifth undesignated paragraphs of section 4,
  as amended (12 U.S.C. 341), by striking `Comptroller of the Currency'
  wherever it appears and inserting instead `Director of the Office of
  Depository Institutions Supervision';
  (6) in section 24(a), as amended (12 U.S.C. 371(a)), by striking `Comptroller
  of the Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (7) in section 23A(d)(5), as amended (12 U.S.C. 371c(d)(5)), by striking
  `Bank Holding Company Act of 1956' and inserting instead `Financial Services
  Holding Company Act of 1991';
  (8) in section 24A, as amended (12 U.S.C. 371d), by striking `Comptroller
  of the Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (9) in section 16--
  (A) in the eighth paragraph, as amended (12 U.S.C. 418), by striking `the
  Comptroller of the Currency shall, under the direction of the Secretary of
  the Treasury,' and inserting instead `the Secretary of the Treasury shall';
  (B) in the ninth paragraph, as amended (12 U.S.C. 419), by striking `shall
  be deposited in the Treasury, or in the subtreasury or mint of the United
  States nearest the place of business of each Federal reserve bank and shall
  be held for the use of such bank subject to the order of the Comptroller
  of the Currency' and inserting instead `shall be delivered to the Board
  of Governors of the Federal Reserve System subject to the order of the
  Secretary of the Treasury'; and
  (C) in the tenth paragraph, as amended (12 U.S.C. 420)--
  (i) by striking `Comptroller of the Currency' and inserting instead
  `Secretary of the Treasury'; and
  (ii) striking `Federal Reserve Board' and inserting instead `Board of
  Governors of the Federal Reserve System';
  (10) in section 19 (12 U.S.C. 461)--
  (A) in subsection (b)(1)(F)--
  (i) by striking `Board of Directors of the Federal Deposit Insurance
  Corporation,'; and
  (ii) by striking `Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision'; and
  (B) in subsection (b)(4)(B)--
  (i) by striking `Board of Directors of the Federal Deposit Insurance
  Corporation,' and
  (ii) by striking `Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision';
  (11) in the sixth paragraph of section 21, as amended (12 U.S.C. 486),
  by striking `Comptroller of the Currency' and inserting instead `Director
  of the Office of Depository Institutions Supervision';
  (12) in the sixth paragraph of section 2, as amended (12 U.S.C. 501a),
  by striking `Comptroller of the Currency' and inserting instead `Director
  of the Office of Depository Institutions Supervision';
  (13) in section 29, as amended (12 U.S.C. 504), by striking `Comptroller
  of the Currency' wherever it appears and inserting instead `Director of
  the Office of Depository Institutions Supervision';
  (14) in the fourth undesignated paragraph of section 25, as amended (12
  U.S.C. 602), by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision';
  (15) in the tenth undesignated paragraph of section 25(a), as amended
  (12 U.S.C. 619), by--
  (A) striking `Bank Holding Company Act of 1956' wherever it appears and
  inserting instead `Financial Services Holding Company Act of 1991';
  (B) striking `bank holding companies' and inserting instead `financial
  services holding companies'; and
  (C) striking `bank holding company' and inserting instead `financial
  services holding company'; and
  (16) in the fifteenth undesignated paragraph of section 25(a) (12
  U.S.C. 624), by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (f) REVISED STATUTES- Section 5208 of the Revised Statutes (12 U.S.C. 501)
  is amended by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (g) THE HOME OWNERS' LOAN ACT- The Home Owners' Loan Act, as amended
  (12 U.S.C. 1461 et seq.), is amended--
  (1) in section 2 (12 U.S.C. 1462)--
  (A) in paragraph (1), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision';
  (B) by amending paragraph (3) to read as follows:
  `(3) Office--
  `The term `Office' means the Office of Depository Institutions Supervision.';
  and
  (C) in paragraph (7), by striking `Office of the Comptroller of the
  Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (2) by repealing section 3 (12 U.S.C. 1462a);
  (3) in section 4 (12 U.S.C. 1463)--
  (A) in subsection (a)(2), by striking `Office' and inserting instead
  `Office of Depository Institutions Supervision'; and
  (B) in subsection (c), by striking `by the Comptroller of the Currency';
  (4) in section 5(t) (12 U.S.C. 1464(t))--
  (A) in paragraph (9)--
  (i) by striking the phrase `by the Comptroller of the Currency' wherever
  it appears; and
  (ii) in subparagraph (A)--
  (I) by striking `Comptroller's'; and
  (II) by inserting `for national banks' after `definition of capital'; and
  (B) by amending paragraph (10) to read as follows:
  `(10) USE OF DEFINITIONS FOR NATIONAL BANKS- The standards prescribed
  under paragraph (1) shall include all relevant substantive definitions
  established for national banks.';
  (5) by repealing section 9 (12 U.S.C. 1467); and
  (6) in section 10 (12 U.S.C. 1467a)--
  (A) in subsection (a)(1)(I)--
  (i) by striking `bank holding company' and inserting instead `financial
  services holding company'; and
  (ii) by striking `Bank Holding Company Act of 1956' and inserting instead
  `Financial Services Holding Company Act of 1991';
  (B) in subsection (c)--
  (i) in paragraph (2)(F)(i)--
  (I) by striking `bank holding company' and inserting instead `financial
  services holding company'; and
  (II) by striking `Bank Holding Company Act of 1956' and inserting instead
  `Financial Services Holding Company Act of 1991'; and
  (ii) in paragraph (8)--
  (I) by striking `bank holding company' and inserting instead `financial
  services holding company'; and
  (II) by striking `Bank Holding Company Act of 1956' and inserting instead
  `Financial Services Holding Company Act of 1991';
  (C) in subsection (m)(3)(C)--
  (i) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company'; and
  (ii) by striking `Bank Holding Company Act of 1956' wherever it appears
  and inserting instead `Financial Services Holding Company Act of 1991';
  (D) in subsection (q)(1)(A)(ii), by striking `bank holding company' and
  inserting instead `financial services holding company'; and
  (7) in section 11(c) (12 U.S.C. 1468(c))--
  (A) by striking `or 18(j)'; and
  (B) by striking `, as appropriate' after `the Federal Deposit Insurance Act'.
  (h) THE NATIONAL HOUSING ACT- The National Housing Act is amended--
  (1) in section 203(s) (12 U.S.C. 1709(s))--
  (A) in paragraph (5), by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (B) in paragraph (6), by striking `or a bank holding company, or a subsidiary
  of or affiliate of such a company,';
  (C) in paragraph (7), by striking `Board of Directors of the Federal Deposit
  Insurance Corporation; and' and inserting instead `Board of Governors of
  the Federal Reserve System;';
  (D) in paragraph (8), by striking `Director of the Office of Thrift
  Supervision.' and inserting instead `Director of the Office of Depository
  Institutions Supervision; and'; and
  (E) by adding at the end thereof the following new paragraph:
  `(9) if the mortgagee is a financial services holding company, or a
  subsidiary of or affiliate of such a company, the appropriate Federal
  banking agency as defined by section 3(q) of the Federal Deposit Insurance
  Act (12 U.S.C. 1813(q)).';
  (2) in section 255(k)(3), as amended (12 U.S.C. 1715z-20(k)(3))--
  (A)(i) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision'; and
  (ii) effective January 1, 1993, by striking `the Director of the Office
  of Thrift Supervision,'; and
  (B) by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision';
  (3) in section 303(f) (12 U.S.C. 1718(f)), by striking `State member
  bank of the Federal Reserve System or any member of the Federal Deposit
  Insurance Corporation' and inserting instead `State bank'; and
  (4) in section 502 (12 U.S.C. 1701c)--
  (A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision'; and
  (B) effective January 1, 1993, by striking `The Director of the Office of
  Thrift Supervision, in consultation with the Comptroller of the Currency
  and' and inserting instead `The Director of the Office of Depository
  Institutions Supervision, in consultation with'.
  (i) THE ACT OF OCTOBER 15, 1982- Section 341 of the Act of October 15,
  1982, as amended (12 U.S.C. 1701j-3), is amended--
  (1) in subsection (c)(1)(B), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) in subsection (e)(1)--
  (A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision'; and
  (B) effective January 1, 1993, by striking `The Director of the Office of
  Thrift Supervision, in consultation with the Comptroller of the Currency
  and' and inserting instead `The Director of the Office of Depository
  Institutions Supervision, in consultation with'.
  (j) THE DOMESTIC HOUSING AND INTERNATIONAL RECOVERY AND FINANCIAL STABILITY
  ACT- Section 469 of the Domestic Housing and International Recovery and
  Financial Stability Act (12 U.S.C. 1701p-1) is amended--
  (1)(A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision'; and
  (B) effective January 1, 1993, by striking `the Director of the Office of
  Thrift Supervision,'; and
  (2) by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (k) THE FEDERAL DEPOSIT INSURANCE ACT- The Federal Deposit Insurance Act
  (12 U.S.C. 1811 et seq.) is amended--
  (1) in section 3 (12 U.S.C. 1813)--
  (A) in subsection (1)(5), by striking `Comptroller of the Currency,
  Director of the Office of Thrift Supervision' and inserting instead
  `Director of the Office of Depository Institutions Supervision';
  (B) in subsection (u), by striking `bank holding company' wherever it
  appears and inserting instead `financial services holding company'; and
  (C)(i) in subsection (w) by striking `bank holding company' wherever it
  appears and inserting instead `financial services holding company'; and
  (ii) in paragraph (2), by striking `bank holding company' and inserting
  instead `financial services holding company';
  (2) in section 4(b) (12 U.S.C. 1814(b)), by striking `Comptroller of the
  Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (3) in section 5 (12 U.S.C. 1815)--
  (A) in subsection (a)--
  (i) in paragraph (3), by striking `Director of the Office of Thrift
  Supervision' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (ii) in paragraph (6), by striking `Director of the Office of Thrift
  Supervision' and inserting instead `Director of the Office of Depository
  Institutions Supervision'; and
  (iii) in paragraph (7), by striking `(excluding the Director of the Office
  of Thrift Supervision)'; and
  (B) in subsection (d)(3)--
  (i) in subparagraph (A)--
  (I) by striking `bank holding company' and inserting instead `financial
  services holding company'; and
  (II) by striking `and the Board of Governors of the Federal Reserve
  System'; and
  (ii) in subparagraph (E)--
  (I) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company';
  (II) by striking `Board of Governors of the Federal Reserve System' and
  inserting instead `appropriate Federal banking agency'; and
  (III) by striking `Board' and inserting instead `appropriate Federal
  banking agency';
  (4) in section 7 (12 U.S.C. 1817)--
  (A) in subsection (a)(2)
  (i) in subparagraph (A), by striking `the Comptroller of the Currency, the
  Director of the Office of the Thrift Supervision' wherever it appears and
  inserting instead `the Director of the Office of Depository Institutions
  Supervision'; and
  (ii) in subparagraph (B)--
  (I) by striking `the Comptroller of the Currency,'; and
  (II) by striking `, and the Director of the Office of Thrift Supervision'
  and inserting instead `and the Director of the Office of Depository
  Institutions Supervision';
  (B) in subsection (a)(3)--
  (i) by striking `Comptroller of the Currency,'; and
  (ii) by striking `Chairman of the Director of the Office of Thrift
  Supervision' and by inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (C) in subsection (a)(6) by striking `the Comptroller of the Currency,
  the Director of the Office of Thrift Supervision' and inserting instead
  `the Director of the Office of Depository Institutions Supervision';
  (D) in subsection (a)(7) by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (E) in subsection (n)--
  (i) by striking `Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision,'; and
  (ii) by striking `under section 1467 of this Act';
  (5) in section 8 (12 U.S.C. 1818)--
  (A) in subsection (a)(2)(A), by striking `(if the Corporation is the
  appropriate Federal banking agency)';
  (B) in subsection (a)(8)(B)(ii), by striking `Director of the Office
  of Thrift Supervision' and inserting instead `Director of the Office of
  Depository Institutions Supervision';
  (C) in subsection (b)(4), by striking `bank holding company' and inserting
  instead `financial services holding company';
  (D) in subsection (b)(5), by striking `Comptroller of the Currency'
  wherever it appears and inserting instead `Director of the Office of
  Depository Institutions Supervision';
  (E) in subsection (e)(4), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (F) in subsection (g)(2), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (G) in subsection (o)--
  (i) by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'; and
  (ii) by striking `Director of the Office of Thrift Supervision' and inserting
  instead `Director of the Office of Depository Institutions Supervision'; and
  (H) in subsection (t), by striking `Director of the Office of Thrift
  Supervision' wherever it appears and inserting instead `Director of the
  Office of Depository Institutions Supervision';
  (6) in section 11 (12 U.S.C. 1821)--
  (A) in subsection (n)(1)(A), by striking `Office of the Comptroller of
  the Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (B) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (C) by striking `Office of Thrift Supervision' wherever it appears and
  inserting instead `Office of Depository Institutions Supervision';
  (7) in section 13 (12 U.S.C. 1823)--
  (A) in subsection (i)(1)(C), by striking `Director of the Office of Thrift
  Supervision or the Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'; and
  (B) in subsection (k)(1)(A)(iv), by striking `Director of the Office
  of Thrift Supervision' and inserting instead `Director of the Office of
  Depository Institutions Supervision';
  (8) in section 18 (12 U.S.C. 1828), by striking `Director of the Office
  of Thrift Supervision' wherever it appears and inserting instead `Director
  of the Office of Depository Institutions Supervision'; and
  (9) by repealing section 26 (12 U.S.C. 1831c).
  (l) THE FINANCIAL INSTITUTIONS REFORM, RECOVERY, AND ENFORCEMENT ACT OF
  1989- The Financial Institutions Reform, Recovery, and Enforcement Act of
  1989 is amended--
  (1) in section 918(b) (12 U.S.C. 1833(b))--
  (A) by amending paragraph (1) to read as follows:
  `(1) The Director of the Office of Depository Institutions Supervision.';
  (B) by striking paragraph (5); and
  (C) by redesignating paragraphs (6) and (7) as paragraphs (5) and (6),
  respectively;
  (2) in section 1206 (12 U.S.C. 1833b), by striking `Comptroller of the
  Currency,' and `and the Office of Thrift Supervision,' and inserting `and'
  before `the Farm Credit Administration'; and
  (3) in section 1216 (12 U.S.C. 1833e)--
  (A) in subsection (a)--
  (i) by amending paragraph (1) to read as follows:
  `(1) the Director of the Office of Depository Institutions Supervision';
  (ii) by striking paragraph (2); and
  (iii) by redesignating paragraphs (3) through (6) as paragraphs (2) through
  (5), respectively;
  (B) in subsection (c) by striking `Comptroller of the Currency, the Director
  of the Office of Thrift Supervision' and inserting instead `Director of
  the Office of Depository Institutions Supervision'; and
  (C) in subsection (d)--
  (i) by amending paragraph (2) to read as follows:
  `(2) the Director of the Office of Depository Institutions Supervision;';
  (ii) by striking paragraph (3); and
  (iii) by redesignating paragraphs (4) through (8) as paragraphs (3) through
  (7), respectively.
  (m) THE BANK PROTECTION ACT OF 1968- Section 2 of the Bank Protection Act
  of 1968 (12 U.S.C. 1881) is amended--
  (1) in paragraph (1), by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (2) in paragraph (2), by adding `and insured nonmember banks' after
  `Federal Reserve System' the second time that it appears;
  (3) by striking paragraph (3);
  (4) by redesignating paragraph (4) as paragraph (3); and
  (5) in paragraph (3) (as redesignated)--
  (A) by striking `Office of Thrift Supervision' and inserting instead
  `the Office of Depository Institutions Supervision'; and
  (B) by inserting `associations' after `savings'.
  (n) THE FARM CREDIT ACT OF 1971- The Farm Credit Act of 1971, as amended,
  is amended--
  (1) in section 5.20 (12 U.S.C. 2255), by striking `Comptroller of the
  Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision'; and
  (2) in section 5.22 (12 U.S.C. 2257), by striking `Comptroller of the
  Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision'.
  (o) THE REAL ESTATE SETTLEMENT PROCEDURES ACT- The Real Estate Settlement
  Procedures Act is amended--
  (1) in section 4(a) (12 U.S.C. 2603(a))--
  (A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision'; and
  (B) effective January 1, 1993, by striking `Director of the Office Thrift
  Supervision' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (2) in section 8, as amended (12 U.S.C. 2607)--
  (A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' wherever it appears and inserting instead `Director
  of the Office of Thrift Supervision'; and
  (B) effective on January 1, 1993, by striking `Director of the Office of
  Thrift Supervision' wherever it appears and inserting instead `Director
  of the Office of Depository Institutions Supervision'.
  (p) THE HOME MORTGAGE DISCLOSURE ACT OF 1975- The Home Mortgage Disclosure
  Act of 1975 is amended--
  (1) in section 304(h) (12 U.S.C. 2803(h))--
  (A) in paragraph (1), by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (B) in paragraph (2), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision'; and
  (C) in paragraph (3), by striking `Federal Deposit Insurance Corporation'
  and inserting instead `Board of Governors of the Federal Reserve System';
  (2) in section 305(b) (12 U.S.C. 2804(b))--
  (A) in paragraph (1)(A), by striking `Comptroller of the Currency' and
  inserting instead `Office of Depository Institutions Supervision';
  (B) in paragraph (1)(C), by striking `Board of Directors of the Federal
  Deposit Insurance Corporation' and inserting instead `Board of Governors
  of the Federal Reserve System'; and
  (C) in paragraph (2), by striking `Office of Thrift Supervision' and
  inserting instead `the Office of Depository Institutions Supervision';
  (3) in section 306(b) (12 U.S.C. 2805(b))--
  (A) by amending the second sentence to read as follows: `Notwithstanding
  any other provision of this subsection, compliance with the requirements
  imposed by this subsection shall be enforced under section 8 of the Federal
  Deposit Insurance Act (12 U.S.C. 1818) by the Director of the Office of
  Depository Institutions Supervision in the case of national banks and
  savings associations the deposits of which are insured by the Federal
  Deposit Insurance Corporation.'; and
  (B) by striking paragraphs (1) and (2); and
  (4) in section 307 (12 U.S.C. 2806)--
  (A) in subsection (a)(1)--
  (i) by striking `Office of Thrift Supervision' wherever it appears and
  inserting instead `Office of Depository Institutions Supervision';
  (ii) by striking `Comptroller of the Currency,'; and
  (iii) by striking `the Federal Deposit Insurance Corporation';
  (B) in subsection (a)(3), by striking `Office of Thrift Supervision'
  and inserting instead `Office of Depository Institutions Supervision'; and
  (C) in subsection (b), by striking `Office of Thrift Supervision' wherever
  it appears and inserting instead `Office of Depository Institutions
  Supervision'.
  (q) THE COMMUNITY REINVESTMENT ACT OF 1977- Section 803(l) of the Community
  Reinvestment Act of 1977 (12 U.S.C. 2902(l)) is amended--
  (1) in subparagraph (A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (2) in subparagraph (B), by striking `which are members of the Federal
  Reserve System and bank holding companies';
  (3) by striking subparagraph (C);
  (4) by redesignating subparagraph (D) as subparagraph (C) and amending
  such subparagraph--
  (A) by striking `section 8 of this Act, by'; and
  (B) by striking `Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision'; and
  (5) by adding at the end of paragraph (1) a new subparagraph to read
  as follows:
  `(D) the appropriate Federal banking agency, as defined by section 3(q)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), with respect to
  a financial services holding company;'.
  (r) THE INTERNATIONAL BANKING ACT OF 1978- The International Banking Act
  of 1978 is amended--
  (1) in section 1(b) (12 U.S.C. 3101)--
  (A) by amending paragraph (4) to read as follows:
  `(4) `Director' means the Director of the Office of Depository Institutions
  Supervision';
  (B) by redesignating paragraphs (13) and (14) as paragraphs (14) and
  (15), respectively;
  (C) by inserting after paragraph (12) the following new paragraph:
  `(13) the term `appropriate Federal banking agency' shall have the same
  meaning as in section 3(q) of the Federal Deposit Insurance Act (12
  U.S.C. 1813(q));'; and
  (D) by amending paragraph (14) (as redesignated) to read as follows:
  `(14) the terms `bank', `financial services holding company', `company',
  `control', and `subsidiary' have the same meanings assigned to those terms in
  the Financial Services Holding Company Act of 1991 and the terms `controlled'
  and `controlling' shall be construed consistently with the term `control'
  as defined in section 2 the Financial Services Holding Company Act of 1991;';
  (2) in section 4 (12 U.S.C. 3102), by striking `Comptroller' wherever it
  appears and inserting instead `Director';
  (3) in section 6(a) (12 U.S.C. 3104(a)), by striking `Comptroller' and
  inserting instead `Director';
  (4) in section 5(c) (12 U.S.C. 3103(c)), by striking `Board' and inserting
  instead `appropriate Federal banking agency';
  (5) in section 7(c) (12 U.S.C. 3105(b)), by striking `Comptroller' and
  inserting instead `Director';
  (6) in section 8 (12 U.S.C. 3106)--
  (A) in subsection (c)--
  (i) by striking `Board' wherever it appears and inserting instead
  `appropriate Federal banking agency';
  (ii) by striking `Bank Holding Company Act of 1956' wherever it appears
  and inserting instead `Financial Services Holding Company Act of 1991'; and
  (iii) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company'; and
  (B) in subsection (d), by striking `bank holding company' wherever it
  appears and inserting instead `financial services holding company'.
  (7) in section 9(b)(2) (12 U.S.C. 3106a(2)), by striking `Comptroller'
  and inserting instead `appropriate Federal banking agency'; and
  (8) in section 13(a) (12 U.S.C. 3108(a)), by striking `Comptroller, the
  Board, and the Federal Deposit Insurance Corporation,' and inserting instead
  `appropriate Federal banking agencies'.
  (s) THE DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT OF 1978- The
  Depository Institution Management Interlocks Act of 1978 is amended--
  (1) in section 202 (12 U.S.C. 3201), by striking `bank holding company'
  wherever it appears and inserting instead `financial services holding
  company';
  (2) in section 205(9) (12 U.S.C. 3204(9)), by striking `Office of Thrift
  Supervision' and inserting instead `Office of Depository Institutions
  Supervision';
  (3) in section 207 (12 U.S.C. 3206)--
  (A) by amending paragraph (1) to read as follows:
  `(1) the Director of the Office of Depository Institutions Supervision with
  respect to national banks and banks located in the District of Columbia,';
  (B) in paragraph (2), by striking `which are members of the Federal Reserve
  System, and bank holding companies';
  (C) by striking paragraph (3) and redesignating paragraphs (4) and (5)
  as paragraphs (3) and (4), respectively;
  (D) in paragraph (3) (as redesignated) by striking `Office of Thrift
  Supervision' and inserting instead `Office of Depository Institutions
  Supervision'; and
  (E) by inserting after paragraph (4) (as redesignated) the following
  new paragraph:
  `(5) the appropriate Federal banking agency, as defined in section 3(q)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), in the case of
  a financial services holding company;';
  (4) in section 208 (12 U.S.C. 3207)--
  (A) in paragraph (1) by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (B) in paragraph (2)--
  (i) by inserting `and insured nonmember banks' after `Federal Reserve
  System' the second time it appears; and
  (ii) by striking `and bank holding company,';
  (C) in paragraph (4)--
  (i) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board with respect to institutions the accounts of which
  are insured by the Federal Savings and Loan Insurance Corporation' and
  inserting instead `Director of the Office of Thrift Supervision with
  respect to institutions the accounts of which are insured by the Federal
  Deposit Insurance Corporation'; and
  (ii) effective January 1, 1993, by striking `Director of the Office of
  Thrift Supervision' and inserting instead `Director of the Office of
  Depository Institutions Supervision';
  (D) by striking paragraph (3) and redesignating paragraphs (4) and (5)
  as paragraphs (3) and (4), respectively; and
  (E) by inserting a new paragraph (5) to read as follows:
  `(5) the appropriate Federal banking agency, as defined in section 3(q)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), in the case of
  a financial services holding company.'.
  (t) THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL ACT OF 1978- The
  Federal Financial Institutions Examination Council Act of 1978 is amended--
  (1) in section 1002 (12 U.S.C. 3301)--
  (A) by striking `Comptroller of the Currency'; and
  (B)(i) effective on the date of enactment of this Act, by striking
  `Federal Home Loan Bank Board' and inserting instead `Office of Thrift
  Supervision'; and
  (ii) effective January 1, 1993, by striking `Office of Thrift Supervision'
  and inserting instead `Office of Depository Institutions Supervision';
  (2) in section 1003(l) (12 U.S.C. 3302(l))--
  (A) by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'; and
  (B) by striking `the Office of Thrift Supervision';
  (3) in section 1004(a) (12 U.S.C. 3303(a))--
  (A) in paragraph (1), by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision'; and
  (B) by striking paragraph (4) and redesignating paragraph (5) as paragraph
  (4);
  (4) in section 1005 (12 U.S.C. 3304), by striking `One-fifth' and inserting
  instead `One-fourth';
  (5) in section 1121(6) (12 U.S.C. 3350(6))--
  (A) effective on the date of enactment of this Act, by striking
  `Corporations' and inserting instead `Corporation';
  (B) by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Institutions Supervision'; and
  (C) by striking `the Office of Thrift Supervision,'.
  (u) THE RIGHT TO FINANCIAL PRIVACY ACT OF 1978- Section 1101 of the Right
  to Financial Privacy Act of 1978 (12 U.S.C. 3401) is amended--
  (1) in paragraph (6)--
  (A) in subparagraph (A), by striking `bank holding company' and inserting
  instead `financial services holding company'; and
  (B) in subparagraph (B), by striking `Bank Holding Company Act of 1956'
  and inserting instead `Financial Services Holding Company Act of 1991'; and
  (2) in paragraph (7)--
  (A) in subparagraph (B), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision';
  (B) by striking subparagraph (E) and redesignating subparagraphs (F)
  through (H) as subparagraphs (E) through (G), respectively; and
  (C) in subparagraph (G) (as redesignated), by inserting `or insurance'
  after `securities'.
  (v) THE ALTERNATIVE MORTGAGE TRANSACTION PARITY ACT OF 1982- The Alternative
  Mortgage Transaction Parity Act of 1982 is amended--
  (1) in section 802(a)(3) (12 U.S.C. 3801(a)(3))--
  (A) by striking `Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision'; and
  (B) by striking `Comptroller of the Currency'; and
  (2) in section 804(a) (12 U.S.C. 3803(a))--
  (A) in paragraph (1), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions'; and
  (B) in paragraph (3), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision'.
  (w) THE INTERNATIONAL LENDING SUPERVISION ACT OF 1983- The International
  Lending Supervision Act of 1983 is amended--
  (1) in section 903 (12 U.S.C. 3902), by striking `, except' and all that
  follows through subparagraph (C) and inserting instead `; and'; and
  (2) in section 912 (12 U.S.C. 3911)--
  (A) by striking `one of three Federal banking regulatory and supervisory
  agencies, and as'; and
  (B) by striking `Office of the Comptroller of the Currency' and inserting
  instead `Office of Depository Institutions Supervision'.
  (x) THE EXPEDITED FUNDS AVAILABILITY ACT OF 1987- The Expedited Funds
  Availability Act of 1987 is amended--
  (1) in section 609(e) (12 U.S.C. 4008(e))--
  (A) by striking `Comptroller of the Currency'; and
  (B)(i) effective on the date of enactment of this Act, by striking
  `Federal Home Loan Bank Board' and inserting instead `Office of Thrift
  Supervision'; and
  (ii) effective January 1, 1993, by striking `Office of Thrift Supervision'
  and inserting instead `Office of Depository Institutions Supervision';
  (2) in section 610(a)(1) (12 U.S.C. 4009(a)(1))--
  (A) in subparagraph (A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (B) by amending subparagraph (B) to read as follows:
  `(B) State insured banks (other than national banks), by the Board of
  Governors of the Federal Reserve System.'; and
  (C) by striking subparagraph (C); and
  (3) in section 610(a)(2) (12 U.S.C. 4009(a)(2)), by striking `Office of
  Thrift Supervision' and inserting instead `Office of Depository Institutions
  Supervision'.
  (y) THE NATIONAL BANK ACT- The National Bank Act (12 U.S.C. 38 note)
  is amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) by striking `Comptroller' wherever it appears and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (z) REVISED STATUTES- Sections 5155 (12 U.S.C. 36), 5138 (12 U.S.C. 51),
  5205 (12 U.S.C. 55), 5174 (12 U.S.C. 108), 5185 (12 U.S.C. 151), 5186
  (12 U.S.C. 152), and 5213 (12 U.S.C. 164) of the Revised Statutes are
  each amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) by striking `Comptroller' wherever it appears and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (aa) MISCELLANEOUS PROVISIONS- Section 13 of the Act of September 8, 1959
  (12 U.S.C. 21a); section 2 of the Act of May 1, 1886 (12 U.S.C. 30); section
  345 of the Act of August 23, 1935 (12 U.S.C. 51b-1); chapter 58 of the Act
  of February 25, 1930 (12 U.S.C. 67); section 1 of the Public Law 87-722
  (12 U.S.C. 92a); section 12 of the Act of March 14, 1900 (12 U.S.C. 101);
  section 3 of the Act of October 5, 1917 (12 U.S.C. 103); sections 3 and
  5 of the Act of June 20, 1874 (12 U.S.C. 121, 105); section 1 of the Act
  of June 13, 1933 (12 U.S.C. 121a); section 9 of the Act of July 12, 1882
  (12 U.S.C. 178); section 3 of the Act of June 30, 1876 (12 U.S.C. 197);
  sections 1, 2, and 3 of the Act of March 29, 1886 (12 U.S.C. 198-200);
  the Act of August 17, 1950 (12 U.S.C. 214 et seq.); the Act of November
  7, 1917 (12 U.S.C. 215-215b); and sections 731-735 of Public Law 96-221
  (12 U.S.C. 216-216d) are each amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) by striking `Comptroller' wherever it appears and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
  (bb) THE EMERGENCY BANKING AND BANK CONSERVATION ACT- Sections 301 and
  302 of the Emergency Banking and Bank Conservation Act (12 U.S.C. 51a,
  51b) are amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institution
  Supervision', and
  (2) by striking `Comptroller' wherever it appears and inserting instead
  `Director of the Office of Depository Institution Supervision'.
  (cc) THE BANKING ACT OF 1933- Sections 22, 29, and 31 of the Banking Act
  of 1933 (12 U.S.C. 64a, 71a, and 197a) are amended--
  (1) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) by striking `Comptroller' wherever it appears and inserting instead
  `Director of the Office of Depository Institutions Supervision'.
SEC. 616. AMENDMENTS TO ACTS CODIFIED IN TITLE 15, UNITED STATES CODE.
  (a) THE ACT OF SEPTEMBER 26, 1914- Section 18 of the Act of September 26,
  1914, as amended (15 U.S.C. 57a), is amended--
  (1) in subsection (f)(1)--
  (A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision';
  (B) effective January 1, 1993, by striking `Director of the Office of Thrift
  Supervision' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (C) effective on the date of enactment of this Act, by striking `each such
  Board' and inserting instead `the appropriate Board or the Director';
  (D) effective on the date of enactment of this Act, by striking `any such
  Board' and inserting instead `the appropriate Board or the Director'; and
  (E) effective on the date of enactment of this Act, by striking `such Board'
  and inserting instead `the appropriate Board or the Director';
  (2) in subsection (f)(2)--
  (A) by striking `Comptroller of the Currency' and inserting instead
  `Office of Depository Institutions Supervision';
  (B) by inserting `and' at the end of subparagraph (A);
  (C) by amending subparagraph (B) to read as follows:
  `(B) member banks of the Federal Reserve System and banks insured by the
  Federal Deposit Insurance Corporation (other than banks referred to in
  subparagraph (A)), by the division of consumer affairs established by the
  Board of Governors of the Federal Reserve System.'; and
  (D) by striking subparagraph (C).
  (b) THE TRUST INDENTURE ACT OF 1939- Section 321(h) of the Trust
  Indenture Act of 1939, as amended (15 U.S.C. 77uuu), is amended by striking
  `Comptroller of the Currency' and inserting instead `Director of the Office
  of Depository Institutions Supervision'.
  (c) THE SECURITIES EXCHANGE ACT OF 1934- The Securities Exchange Act of
  1934, as amended, is amended--
  (1) in section 3(a)(6) (15 U.S.C. 78c(a)(6)), by striking `Comptroller of
  the Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision';
  (2) in section 3(a)(34) (15 U.S.C. 78c(a)(34))--
  (A) by striking `Comptroller of the Currency' wherever it appears and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (B) by striking `Director of the Office of Thrift Supervision' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (C) by striking `Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision';
  (D) in subparagraph (A)--
  (i) in clause (ii), by striking `, a bank holding company, a subsidiary
  of a bank holding company which is a bank other than a bank specified in
  clause (i) or (iii) of this subparagraph, or a subsidiary or a department
  or division of such subsidiary';
  (ii) in clause (iii)--
  (I) by striking `Federal Deposit Insurance Corporation' where it first
  appears and inserting instead `Board of Governors of the Federal Reserve
  System'; and
  (II) by striking `and' at the end thereof; and
  (iii) by redesignating clause (iv) as clause (v) and inserting after clause
  (iii) the following new clause:
  `(iv) the appropriate Federal banking agency, as defined in section 3(q)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), in the case of
  a financial services holding company, and';
  (E) in subparagraph (B)--
  (i) in clause (ii), by striking `, a bank holding company, a subsidiary
  of a bank holding company which is a bank other than a bank specified in
  clause (i) or (iii) of this subparagraph';
  (ii) in clause (iii)--
  (I) by striking `Federal Deposit Insurance Corporation' where it first
  appears and inserting instead `Board of Governors of the Federal Reserve
  System'; and
  (II) by striking `and' at the end thereof; and
  (iii) by redesignating clause (iv) as clause (v) and inserting after clause
  (iii) the following new clause:
  `(iv) the appropriate Federal banking agency, as defined in section 3(q)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), in the case of
  a financial services holding company; and';
  (F) in subparagraph (C)--
  (i) in clause (ii), by striking `, a bank holding company, or a subsidiary
  of a bank holding company, or a subsidiary of a bank holding company
  which is a bank other than a bank specified in clause (i) or (iii) of
  this subparagraph when the appropriate regulatory agency for such clearing
  agency is not the Commission';
  (ii) in clause (iii)--
  (I) by striking `Federal Deposit Insurance Corporation' where it first
  appears and inserting instead `Board of Governors of the Federal Reserve
  System'; and
  (II) by striking `and' at the end thereof; and
  (iii) by redesignating clause (iv) as clause (v) and inserting after clause
  (iii) the following new clause:
  `(iv) the appropriate Federal banking agency, as defined in section 3(q)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), in the case of a
  financial services holding company when the appropriate regulatory agency
  for such clearing agency is not the Commission; and';
  (G) in subparagraph (D)(iii), by striking `Federal Deposit Insurance
  Corporation' and inserting instead `Board of Governors of the Federal
  Reserve System';
  (H) in subparagraph (F)(iii), by striking `Federal Deposit Insurance
  Corporation' and inserting instead `Board of Governors of the Federal
  Reserve System';
  (I) in subparagraph (G)--
  (i) in clause (iii), by striking `Federal Deposit Insurance Corporation'
  where it first appears and inserting instead `Board of Governors of the
  Federal Reserve System'; and
  (ii) in clause (iv), by striking `Director of the Office of Thrift
  Supervision' and inserting instead `Director of the Office of Depository
  Institutions Supervision'; and
  (J) in the last sentence by striking `bank holding company' wherever it
  appears and inserting instead `financial services holding company';
  (3) in section 15C--
  (A) in subsection (b)(2)(C)(ii) (15 U.S.C. 78o-5(b)(2)(C)(ii)), by striking
  `section 8 of the Bank Holding Company Act of 1956' and inserting instead
  `section 8 of the Financial Services Holding Company Act of 1991'; and
  (B) in subsection (f)(1) (15 U.S.C. 78o-5(f)(1))--
  (i) by striking `Comptroller of the Currency,' and inserting instead
  `Director of the Office of Depository Institutions Supervision,';
  (ii) by striking `the Director of the Office of Thrift Supervision,'; and
  (iii) effective on the date of enactment of this Act, by striking `the
  Federal Savings and Loan Insurance Corporation,'; and
  (4) in section 17 (15 U.S.C. 78q)--
  (A) in subsection (f)(4)--
  (i) in clause (A), by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision'; and
  (ii) in clause (C), by striking `Federal Deposit Insurance Corporation'
  and inserting instead `Board of Governors of the Federal Reserve System'; and
  (B) in subsection (h)(3)(B), by striking `section 8 of the Bank Holding
  Company Act of 1956' and inserting instead `section 8 of the Financial
  Services Holding Company Act of 1991'.
  (d) THE INVESTMENT COMPANY ACT OF 1940- The Investment Company Act of 1940,
  as amended (15 U.S.C. 80a-1 et seq.), is amended--
  (1) in section (2)(a)(5) (15 U.S.C. 80a-2(a)(5)), by striking `Comptroller
  of the Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision'; and
  (2) in section 6(a)(3) (15 U.S.C. 80a-6(a)(3)), effective on the date of
  enactment of this Act, by inserting `or successor thereto' after `Federal
  Savings and Loan Insurance Corporation'.
  (e) THE INVESTMENT ADVISORS ACT OF 1940- Section 202 of the Investment
  Advisors Act of 1940, as amended (15 U.S.C. 80b-2), is amended--
  (1) in subsection (a)(2), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (2) in subsection (a)(11)--
  (A) by striking `bank holding company' and inserting `financial services
  holding company'; and
  (B) by striking `Bank Holding Company Act of 1956' and inserting instead
  `Financial Services Holding Company Act of 1991'.
  (f) THE SMALL BUSINESS INVESTMENT ACT OF 1958- The Small Business Investment
  Act of 1958, as amended (15 U.S.C. 661), is amended--
  (1) in section 302(b) (15 U.S.C. 682(b)), effective on the date of enactment
  of this Act, by striking `Notwithstanding the provisions of section 6(a)(1)
  of the Bank Holding Act of 1956, shares' and inserting instead `Shares'; and
  (2) in section 308(b) (15 U.S.C. 687(b)), by striking `or the Federal
  Savings and Loan Insurance Corporation'.
  (g) THE CONSUMER CREDIT PROTECTION ACT- The Consumer Credit Protection Act,
  as amended (15 U.S.C. 1601 et seq.), is amended--
  (1) in section 108 (15 U.S.C. 1607)--
  (A) in subsection (a)(1)(A), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (B) in subsection (a)(1)(C), by striking `Board of Directors of the Federal
  Deposit Insurance Corporation' and inserting `Board of Governors of the
  Federal Reserve System'; and
  (C) in subsection (a)(2), by striking `the Director of the Office of
  Thrift Supervision' and inserting `the Director of the Office of Depository
  Institutions Supervision';
  (2) in section 620(b) (15 U.S.C. 1681s(b))--
  (A) in paragraph (1)(A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (B) in paragraph (1)(C), by striking `Board of Directors of the Federal
  Deposit Insurance Corporation' and inserting instead `Board of Governors
  of the Federal Reserve System'; and
  (C) in paragraph (2), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision';
  (3) in section 704(a) (15 U.S.C. 1691c(a))--
  (A) in paragraph (1)--
  (i) in subparagraph (A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (ii) in subparagraph (C), by striking `Board of Directors of the Federal
  Deposit Insurance Corporation' and inserting instead `Board of Governors
  of the Federal Reserve System'; and
  (B) in paragraph (2), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision';
  (4) in section 814(b) (15 U.S.C. 1692l(b)--
  (A) in paragraph (1)--
  (i) in subparagraph (A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (ii) in subparagraph (C), by striking `Board of Directors of the Federal
  Deposit Insurance Corporation' and inserting instead `Board of Governors
  of the Federal Reserve System'; and
  (B) in paragraph (2), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision'; and
  (5) in section 917(a) (15 U.S.C. 1693o(a))--
  (A) in paragraph (1)--
  (i) in subparagraph (A), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (ii) in subparagraph (C), by striking `Board of Directors of the Federal
  Deposit Insurance Corporation' and inserting instead `Board of Governors
  of the Federal Reserve System'; and
  (B) in paragraph (2), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision'.
  (h) THE EXPORT TRADING COMPANY ACT OF 1982- Section 102(b) of the Export
  Trading Company Act of 1982 (15 U.S.C. 4001(b)) is amended by striking
  `bank holding companies' wherever it appears and inserting instead
  `financial services holding companies'.
SEC. 617. AMENDMENT TO ACT CODIFIED IN TITLE 16, UNITED STATES CODE.
  THE FEDERAL POWER ACT- Section 305(c)(2)(A) of the Federal Power Act
  (16 U.S.C. 825d(c)(2)(A)) is amended by striking `bank holding company'
  and inserting instead `financial services holding company'.
SEC. 618. AMENDMENTS TO TITLE 18, UNITED STATES CODE.
  Title 18, United States Code, is amended--
  (1) in section 212--
  (A) by striking `by the Comptroller of the Currency,';
  (B) by striking `by the Office of Thrift Supervision,'; and
  (C) by striking `Federal Deposit Insurance Corporation' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (2) in section 655, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (3) in section 657, by striking `Office of Thrift Supervision' and inserting
  instead `Office of Depository Institutions Supervision';
  (4) in section 981(a)(1)(D), by striking `Office of the Comptroller of
  the Currency or the Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision';
  (5) in section 982(a)(3), by striking `Office of the Comptroller of
  the Currency or the Office of Thrift Supervision' and inserting instead
  `Office of Depository Institutions Supervision';
  (6) in section 1005--
  (A) in the third paragraph, by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (B) in the sixth paragraph, by inserting in the last sentence `, as amended
  by the Financial Services Holding Company Act of 1991' before the period.
  (7) in section 1006, by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision';
  (8) in section 1014, by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision';
  (9) in section 1032, by striking `Comptroller of the Currency or the
  Director of the Office of Thrift Supervision' and inserting instead
  `Director of the Office of Depository Institutions Supervision';
  (10) in section 1114, by striking `Comptroller of the Currency, the
  Office of Thrift Supervision' and inserting instead `Office of Depository
  Institutions Supervision';
  (11) in section 1906, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision'; and
  (12) in section 1908, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision'.
SEC 619. AMENDMENT TO ACT CODIFIED IN TITLE 22, UNITED STATES CODE.
  THE FINANCIAL REPORTS ACT OF 1988- Section 3602 of the Financial Reports
  Act of 1988 (22 U.S.C. 5352) is amended by striking `Comptroller of the
  Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision'.
SEC. 620. AMENDMENT TO ACT CODIFIED IN TITLE 25, UNITED STATES CODE.
  THE ACT OF JUNE 24, 1938- Subsection (a) of the first section of the Act
  of June 24, 1938 (25 U.S.C. 162a(a)) is amended by striking `in the case
  of member banks, and of the Board of Directors of the Federal Deposit
  Insurance Corporation in the case of insured nonmember banks'.
SEC. 621. AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1986.
  The Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) is amended--
  (1) in section 149(b)(4)(B), effective on the date of enactment of this Act,
  by striking `the Federal Savings and Loan Insurance Corporation,';
  (2) in section 246A(c)(3)--
  (A) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company'; and
  (B) by amending clause (ii) to read as follows:
  `(ii) FINANCIAL SERVICES HOLDING COMPANY- The term `Financial Services
  Holding Company' means a financial services holding company (within the
  meaning of section 2 of the Financial Services Company Act of 1991 (12
  U.S.C. 1841)).';
  (3) in section 304(b)(3)--
  (A) by striking `bank holding companies' and inserting instead `financial
  services holding companies';
  (B) by striking `BHC' wherever it appears and inserting instead `FSHC';
  (C) by striking `BHC's' wherever it appears and inserting instead FSHC's';
  and
  (D) by amending clause (D)(ii) to read as follows:
  `(ii) FSHC- The term `FSHC' means a financial services holding company
  (within the meaning of section 2 of the Financial Services Holding Company
  Act of 1991).';
  (4) in section 581, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (5) in section 584(a)(2), by striking `Comptroller of the Currency'
  and inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (6) in section 597(c)(1), effective on the date of enactment of this Act,
  by inserting `(or any successor thereof)' after `the Federal Savings and
  Loan Insurance Corporation';
  (7) in section 864(e)(5)(D)--
  (A) by striking `bank holding companies' and inserting instead `financial
  services holding companies';
  (B) by striking `bank holding company' wherever it appears and inserting
  instead `financial services holding company'; and
  (C) by striking `Bank Holding Company Act of 1956' and inserting instead
  `Financial Services Holding Company Act of 1991';
  (8) in section 3305(c), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (9) in section 7507(a), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'.
SEC. 622. AMENDMENTS TO TITLE 28, UNITED STATES CODE.
  Title 28, United States Code, is amended--
  (1) in section 1348, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (2) in section 1394, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision';
  (3) in section 2001(c), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (4) in section 2002, by striking `Comptroller of the Currency, and inserting
  instead `Director of the Office of Depository Institutions Supervision'; and
  (5) in section 2004, by striking `Comptroller of the Currency, and inserting
  instead `Director of the Office of Depository Institutions Supervision'.
SEC. 623. AMENDMENTS TO TITLE 31, UNITED STATES CODE.
  Title 31, United States Code, is amended--
  (1) in the table of sections of subchapter I of chapter 3 of subtitle I--
  (A) by amending the item relating to section 307 to read as follows:
`307. Office of Depository Institutions Supervision.';
  (B) by amending the item relating to section 309 to read as follows:
`309. Continuing in Office.'; and
  (C) by striking the item relating to section 310;
  (2) by amending section 307 to read as follows:
  `Sec. 307. Office of depository institutions supervision
  `The Office of Depository Institutions Supervision, established by section
  301 of the Financial Institutions Safety and Consumer Choice Act of 1991,
  is a bureau of the Department of the Treasury.';
  (3) by striking section 309 and redesignating section 310 as section 309;
  (4) in section 321--
  (A) by inserting `and' at the end of subsection (c)(1);
  (B) by amending subsection (c)(2) to read as follows:
  `(2) vested by the Financial Institutions Safety and Consumer Choice Act of
  1991 in the Director of the Office of Depository Institutions Supervision';
  (C) by striking subsection (c)(3); and
  (D) by striking subsection (e);
  (5) in section 714(a), by striking `the Office of the Comptroller of the
  Currency, and the Office of Thrift Supervision' and inserting instead
  `and the Office of Depository Institutions Supervision';
  (6) in section 718(a), by striking `Office of the Comptroller of the
  Currency' and inserting instead `Office of Depository Institutions
  Supervision';
  (7) in section 1321(b), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision';
  (8) by amending section 5115(b) to read as follows:
  `(b) The amount of United States currency notes outstanding and in
  circulation may not be more than $300,000,000.'; and
  (9) in section 5119(b)(2), by adding the following sentence at the end
  thereof: `The Secretary shall not be required to reissue United States
  currency notes upon redemption.'.
SEC. 624. AMENDMENTS TO ACTS CODIFIED IN TITLE 42, UNITED STATES CODE.
  (a) THE FLOOD DISASTER PROTECTION ACT OF 1973- Section 3(a)(5) of the
  Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4003(a)(5)),
  is amended by striking `Comptroller of the Currency' and inserting instead
  `Director of the Office of Depository Insitutions Supervision'.
  (b) THE ENERGY CONSERVATION AND PRODUCTION ACT- Section 303(7) of the
  Energy Conservation and Production Act (42 U.S.C. 6832(7)) is amended--
  (1) effective on the date of enactment of this Act, by striking `the Federal
  Home Loan Bank Board, the Federal Savings and Loan Insurance Corporation'
  and inserting instead `the Director of the Office of Thrift Supervision'; and
  (2) effective January 1, 1993, by striking `Federal Deposit Insurance
  Corporation, Comptroller of the Currency' and inserting instead `Director
  of the Office of Depository Institutions Supervision'.
  (c) THE NEIGHBORHOOD REINVESTMENT CORPORATION ACT- The Neighborhood
  Reinvestment Corporation Act, as amended (42 U.S.C. 8101 et seq.),
  is amended--
  (1) in section 604 (42 U.S.C. 8103)--
  (A) in subsection (a)--
  (i) by striking paragraph (1);
  (ii) in paragraph (5), by striking `Comptroller of the Currency' and
  inserting instead `Director of the Office of Depository Institutions
  Supervision'; and
  (iii) by redesignating paragraphs (2) through (6) as paragraphs (1) through
  (5), respectively; and
  (B) in subsection (f), by striking `Comptroller of the Currency, through a
  duly designated Deputy Comptroller' and inserting instead `Director of the
  Office of Depository Institutions Supervision, through a duly designated
  representative'; and
  (2) in section 606(c)(3) (42 U.S.C. 8105(c)(3))--
  (A) effective on the date of enactment of this Act, by striking `Federal
  Home Loan Bank Board' and inserting instead `Director of the Office of
  Thrift Supervision';
  (B) effective January 1, 1993, by striking `the Director of the Office of
  Thrift Supervision and'; and
  (C) effective January 1, 1993, by striking the term `Comptroller of the
  Currency' and inserting instead `Director of the Office of Depository
  Institutions Supervision'.
SEC. 625. AMENDMENTS TO TITLE 44, UNITED STATES CODE.
  Title 44, United States Code, is amended--
  (1) in section 1111, by striking `Comptroller of the Currency' and inserting
  instead `Director of the Office of Depository Institutions Supervision'; and
  (2) in section 1344, by striking `Office of the Comptroller of the Currency'
  and inserting instead `Office of Depository Institutions Supervision'.
SEC. 626. AMENDMENT TO TITLE 46, UNITED STATES CODE.
  Section 10315(a)(3) of title 46, United States Code, is amended, effective
  on the date of enactment of this Act, by striking `or the Federal Savings
  and Loan Insurance Corporation'.
SEC. 627. AMENDMENTS TO PUBLIC LAW 101-647.
  Public Law 101-647 is amended--
  (1) in section 2539(c)(2)--
  (A) in subparagraph (C), by striking `Office of Thrift Supervision' and
  inserting instead `Office of Depository Institutions Supervision'; and
  (B) by striking subparagraph (F) and redesignating subparagraphs (G) and
  (H) as subparagraphs (F) and (G), respectively; and
  (2) in section 2554(b)(2), by striking `Office of Thrift Supervision'
  wherever it appears and inserting instead `Office of Depository Institutions
  Supervision'.
Subtitle C--Repeal of Obsolete Provisions of Law
SEC. 631. REPEAL OF OBSOLETE PROVISIONS OF LAW.
  The following provisions of law (as they may have been amended) are repealed:
  (1) The following sections of the Revised Statutes: 324 (12 U.S.C. 1); 325
  (12 U.S.C. 2); 326 (12 U.S.C. 3); 327 (12 U.S.C. 4); 327A (12 U.S.C. 4A); 328
  (12 U.S.C. 8); 329 (12 U.S.C. 11); 330 (12 U.S.C. 12); 331 (12 U.S.C. 13);
  and 333 (12 U.S.C. 14);
  (2) title II of the Act of October 28, 1974, Public Law 93-495 (12
  U.S.C. 2401 et seq.); and
  (3) section 14 of the Act of December 22, 1974, Public Law 93-533 (12
  U.S.C. 2612).
Subtitle D--Effective Date
SEC. 641. EFFECTIVE DATE.
  Unless otherwise expressly provided, the amendments made by this title
  shall take effect January 1, 1993.

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