Text: H.R.2432 — 102nd Congress (1991-1992)All Information (Except Text)

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HR 2432 IH
102d CONGRESS
1st Session
 H. R. 2432
To strengthen Federal supervision, regulation and examination of foreign bank
operations in the United States, to enhance cooperation with foreign banking
supervisors, to improve reporting of bank stock loans, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
May 22, 1991
Mr. GONZALEZ (for himself, Mr. WYLIE, and Mr. ANNUNZIO) introduced the
following bill; which was referred to the Committee on Banking, Finance and
Urban Affairs
A BILL
To strengthen Federal supervision, regulation and examination of foreign bank
operations in the United States, to enhance cooperation with foreign banking
supervisors, to improve reporting of bank stock loans, and for other purposes.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SHORT TITLE.
  This Act may be cited as the `Foreign Bank Supervision Enhancement Act
  of 1991'.
SEC. 2. REGULATION OF FOREIGN BANK OPERATIONS.
  (a) ESTABLISHMENT AND TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED
  STATES- Section 7 of the International Banking Act of 1978 (12 U.S.C. 3105)
  is amended by adding at the end thereof the following new subsections:
  `(e) ESTABLISHMENT OF FOREIGN BANK OFFICES IN THE UNITED STATES-
  `(1) PRIOR APPROVAL REQUIRED- No foreign bank may establish a State branch
  or a State agency, or acquire ownership or control of a commercial lending
  company, without obtaining the prior approval of the Board.
  `(2) STANDARDS FOR APPROVAL- In acting on any application under paragraph
  (1), the Board may take into account--
  `(A) whether the foreign bank engages directly in the business of banking
  outside the United States and is subject to comprehensive supervision or
  regulation on a consolidated basis by the appropriate authorities in its
  home country;
  `(B) whether the appropriate authorities in the home country of the foreign
  bank have consented to the proposed establishment of a branch, agency or
  commercial lending company in the United States by the foreign bank;
  `(C) the financial and managerial resources of the foreign bank, including
  its experience and capacity to engage in international banking;
  `(D) whether the foreign bank has provided the Board with adequate
  assurances that it will make available to the Board such information on
  the operations or activities of the foreign bank and any of its affiliates
  that the Board deems necessary to determine and enforce compliance with
  this Act, the Bank Holding Company Act of 1956, as amended, and other
  applicable Federal banking statutes; and
  `(E) whether the foreign bank and its United States affiliates are in
  compliance with applicable United States law.
  `(3) ESTABLISHMENT OF CONDITIONS- Consistent with the standards for
  approval in paragraph (2), the Board may impose such conditions on its
  approval under this subsection as it deems necessary.
  `(f) TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED STATES-
  `(1) STANDARDS FOR TERMINATION- The Board, after notice and opportunity for
  hearing, may order a foreign bank that operates a State branch or agency
  or commercial lending company subsidiary in the United States to terminate
  the activities of such branch, agency or subsidiary if the Board finds that--
  `(A) there is reasonable cause to believe that such foreign bank, or any
  affiliate of such foreign bank, has committed a violation of law or engaged
  in an unsafe or unsound banking practice in the United States; and
  `(B) as a result of such violation or practice, the continued operation of
  the foreign bank's branch, agency or commercial lending company subsidiary
  in the United States would not be consistent with the public interest
  or with the purposes of this Act, the Bank Holding Company Act of 1956,
  as amended, or the Financial Institutions Supervisory Act of 1966.
  `(2) DISCRETION TO DENY HEARING- The Board may take the action described
  in paragraph (1) without  providing an opportunity for a hearing if it
  determines that expeditious action is necessary in order to protect the
  public interest.
  `(3) EFFECTIVE DATE OF TERMINATION ORDER- An order issued under paragraph
  (1) shall become effective within one-hundred and twenty days of its
  issuance or such longer time period as the Board may direct.
  `(4) COMPLIANCE WITH STATE AND FEDERAL LAW- Any foreign bank required to
  terminate activities conducted at offices or subsidiaries in the United
  States pursuant to this subsection shall comply with the requirements
  of applicable Federal and State law with respect to procedures for the
  closure or dissolution of such offices or subsidiaries.
  `(5) RECOMMENDATION TO COMPTROLLER FOR TERMINATION OF A FEDERAL BRANCH
  OR AGENCY- The Board may recommend to the Comptroller termination of the
  license of a Federal branch or Federal agency of a foreign bank whenever
  the Board has reasonable cause to believe that such foreign bank or any
  affiliate thereof has engaged in conduct that would warrant termination of
  the activities of a State  branch or State agency of a foreign bank under
  standards for termination set forth in paragraph (1). The Comptroller may
  act in response to such recommendation in accordance with the provisions
  of section 4(i) of this Act.
  `(6) ENFORCEMENT OF ORDERS- The Board, or the Comptroller in connection
  with an order issued under section 4(i) of this Act,  may in its discretion
  apply to any United States district court within a jurisdiction in which
  any office or subsidiary of the foreign bank against which the Board  or
  the Comptroller has issued an order under paragraph (1) is located, for
  the enforcement of any effective and outstanding order issued under this
  section, and the United States district courts shall have jurisdiction
  and power to order and require compliance therewith.
  `(g) JUDICIAL REVIEW-
  `(1) JURISDICTION OF UNITED STATES COURTS OF APPEALS- Any foreign bank
  against which the Board has issued an order under subsection (e) or (f),
  or against which the Comptroller has issued an order under section 4(i)
  of this Act, may obtain a review of such order in the United States Court
  of Appeals within any circuit wherein such foreign bank operates a branch,
  agency, or commercial lending company that has been required by such order
  to terminate its activities, or in the United States Court of Appeals
  for the District of Columbia Circuit, by filing in the court, within
  thirty days after the entry of the order of the Board or the Comptroller,
  a petition praying that the order  be modified or set aside.
  `(2) PROCEDURES FOR JUDICIAL REVIEW- A copy of such petition shall be
  forthwith transmitted to the Board or the Comptroller by the clerk of the
  court, as appropriate, and thereupon the Board or the Comptroller shall
  file in the court the record made before the Board or the Comptroller,
  as provided in section 2112 of title 28.
  `(3) SCOPE OF JUDICIAL REVIEW- Upon the filing of such petition, the court
  shall have jurisdiction to affirm, modify or set aside the order of the
  Board or the Comptroller and to require the Board or the Comptroller  to
  take such action with regard to the matter under review as the court deems
  proper. The findings of the Board or the Comptroller as to the facts,
  if supported by substantial evidence, shall be conclusive.
  `(4) EXCLUSIVE JURISDICTION- Judicial review of any order issued under
  subsection (e) or (f) or section 4(i) of this Act shall be exclusively as
  provided for in this subsection. No other court shall have jurisdiction
  to affect by injunction or otherwise the issuance or enforcement of any
  order under this section,  or to review, modify, suspend, terminate,
  or set aside any such order.
  `(h) CONSULTATION WITH STATE BANK LICENSING AUTHORITY- The Board shall
  request and consider any views of the appropriate State bank licensing
  authority with respect to an  application or action under subsection (e)
  or (f).'.
  (b) STANDARDS FOR APPROVAL OF FEDERAL BRANCHES AND AGENCIES- Section 4(a)
  of the International Banking Act of 1978 (12 U.S.C. 3102(a)) is amended--
  (1) by striking the heading and inserting instead `PRIOR APPROVAL REQUIRED-
  ';
  (2) by inserting `(1) APPROVAL OF COMPTROLLER- ' before `Except'; and
  (3) by adding at the end thereof the following new paragraph:
  `(2) STANDARDS FOR APPROVAL- In determining whether to grant approval under
  this subsection, the Comptroller shall apply  the standards for approval
  set forth in section 7(e)(2) of this Act. The Comptroller shall provide
  the Board with notice and an opportunity to comment on any application to
  establish a Federal branch or Federal agency under this subsection.'.
  (c) STANDARDS FOR APPROVAL OF ADDITIONAL FEDERAL BRANCHES AND AGENCIES-
  Section 4(h) of the International Banking Act of 1978 (12 U.S.C. 3102(h))
  is amended--
  (1) by striking the heading and inserting instead `ADDITIONAL BRANCHES OR
  AGENCIES- ';
  (2) by inserting `(1) APPROVAL OF COMPTROLLER REQUIRED- ' before `A
  foreign'; and
  (3) by adding at the end thereof the following new paragraph:
  `(2) STANDARDS FOR APPROVAL- In determining whether to grant approval under
  this subsection, the Comptroller shall apply the standards for approval
  set forth in section 7(e)(2) of this Act. The Comptroller shall request and
  consider any views of the Board with respect to an application to establish
  an additional Federal branch or Federal agency under this subsection.'.
  (d) DISAPPROVAL FOR FAILURE TO AGREE TO PROVIDE NECESSARY INFORMATION-
  Section 3(c) of the Bank Holding Company Act of 1956 (12 U.S.C. 1842(c))
  is amended--
  (1) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B);
  (2) by inserting `(1) COMPETITIVE FACTORS- ' before `The Board shall'
  the first time it appears;
  (3) by inserting `(2) BANKING AND CONVENIENCE AND NEEDS FACTORS- ' before
  `In every case';
  (4) by inserting `(4) TREATMENT OF CERTAIN BANK STOCK LOANS- ' before
  `Notwithstanding'; and
  (5) by inserting after paragraph (2) the following new paragraph:
  `(3) SUPERVISORY FACTORS- The Board may disapprove any application
  under this section if the company or companies fail to provide the Board
  with adequate assurances that they will make available to the Board such
  information on the operations or activities of such company or companies and
  any affiliate of such company or companies that the Board deems necessary
  to determine and enforce compliance with this Act, or, in the case of an
  application involving a foreign bank, the foreign bank is not subject to
  comprehensive supervision or regulation on a consolidated basis by the
  appropriate authorities in its home country.'.
  (e) CONFORMING AMENDMENTS-
  (1) AFFILIATE DEFINED- Section 1(b)(13) of the International Banking Act
  (12 U.S.C. 3101(13)) is amended by inserting `affiliate,' after `the terms'
  the first time it appears.
  (2) REPRESENTATIVE OFFICE DEFINED- Section 1(b)(13) of the International
  Banking Act (12 U.S.C. 3101(13)) is amended by inserting at the end the
  following new paragraph:
  `(15) `representative office' means any office of a foreign bank located
  in any State of the United States that is not a Federal branch, Federal
  agency, State branch, State agency or subsidiary of a foreign bank.'.
SEC. 3. CONDUCT AND COORDINATION OF EXAMINATIONS.
  (a) AUTHORITY OF BOARD TO CONDUCT AND COORDINATE EXAMINATIONS- Section 7(c)
  of the International Banking Act of 1978 (12 U.S.C. 3105(b)) is amended--
  (1) by striking paragraph (1) and inserting in lieu thereof the following
  new paragraph:
  `(1) EXAMINATION OF BRANCHES, AGENCIES, AND AFFILIATES-
  `(A) IN GENERAL- The Board may make examinations of each branch or agency
  of a foreign bank, of each commercial lending company or bank controlled by
  one or more foreign banks or by one or more foreign companies that control
  a foreign bank, and of any other office or affiliate of a foreign bank
  conducting business in the United States or any territory or dependency of
  the United States. The cost of such examinations shall be assessed against
  and paid by such foreign bank or company, as the case may be.
  `(B) COORDINATION OF EXAMINATIONS- The Board shall seek to coordinate its
  examinations under this paragraph with the Comptroller, the Federal Deposit
  Insurance Corporation, and appropriate State supervisory authorities,
  including requesting, when the Board deems appropriate, simultaneous
  examinations of all offices of a foreign bank and its affiliates operating
  in the United States. Nothing in this subparagraph shall be construed to
  prevent the Board from conducting any examination under subparagraph (A)
  that it deems appropriate.'.
  (2) In paragraph (2), by inserting `REPORTING REQUIREMENTS- ' before
  `Each branch'.
  (b) COORDINATION OF EXAMINATIONS- Section 4(b) of the International Banking
  Act of 1978 (12 U.S.C. 3102(b)) is amended by adding at the end thereof
  the following new sentence: `The Comptroller shall coordinate examinations
  of the Federal branches and agencies of foreign banks with examinations
  conducted by the Board under section 7(c)(1) and, to the extent possible,
  shall participate in any simultaneous examinations of the United States
  operations of a foreign bank requested by the Board under section 7(c)(1)
  of the Act.'.
  (c) PARTICIPATION IN COORDINATED EXAMINATIONS- Section 10(b)(2) of the
  Federal Deposit Insurance Act (12 U.S.C. 1820(b)(2)) is amended by adding
  at the end thereof the following new sentence: `The Board of Directors
  shall coordinate examinations of insured State branches of foreign banks
  with examinations conducted by the Board under section 7(c)(1) and, to
  the extent possible, shall participate in any simultaneous examination
  of the United States operations of a foreign bank requested by the Board
  of Governors of the Federal Reserve System under section 7(c)(1) of the
  International Banking Act of 1978, as amended (12 U.S.C. 3105).'.
SEC. 4. SUPERVISION OF THE REPRESENTATIVE OFFICES OF FOREIGN BANKS.
  Section 10 of the International Banking Act of 1978 (12 U.S.C. 3107)
  is amended by striking subparagraphs (a) and (b) and inserting in lieu
  thereof the following new subparagraphs:
  `(a) PRIOR APPROVAL TO ESTABLISH REPRESENTATIVE OFFICES-
  `(1) IN GENERAL- No foreign bank may establish a representative office
  without the prior approval of the Board.
  `(2) STANDARDS FOR APPROVAL- In acting on any application under this
  paragraph to establish a representative office, the Board shall take into
  account the standards for approval set forth in section 7(e)(2) of this
  Act and may impose any additional requirements that are necessary to carry
  out the purposes of this Act.
  `(b) TERMINATION OF REPRESENTATIVE OFFICES- The Board may order the
  termination of the activities of a representative office of a foreign bank on
  the basis of the same standards, procedures and requirements as apply under,
  and subject to judicial review as provided in, section 7(e)(3) of this Act.
  `(c) EXAMINATIONS- The Board may make examinations of each representative
  office of a foreign bank, the cost of which shall be assessed against and
  paid by such foreign bank.
  `(d) COMPLIANCE WITH STATE LAW- This Act does not authorize the establishment
  of a representative office in any State in contravention of State law.'.
SEC. 5. REPORTING OF STOCK LOANS.
  Section 7(j)(9) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j)(9))
  is amended to read as follows:
  `(9) REPORTING OF STOCK LOANS-
  `(A) REPORT REQUIRED- Any financial institution and any affiliate thereof
  that has credit outstanding to any person or group of persons secured or
  to be secured by shares of an insured depository institution shall file
  a consolidated report with the appropriate Federal banking agency for
  the insured depository institution if such extensions of credit by the
  financial institution and its affiliates, in the aggregate, are secured
  or to be secured by 25 per centum or more of any class of shares of the
  same insured depository institution.
  `(B) DEFINITIONS- For purposes of this paragraph--
  `(i) FINANCIAL INSTITUTION- the term `financial institution' means any
  insured depository institution and any foreign bank that is subject to the
  provisions of the Bank Holding Company Act of 1956 by virtue of section 8(a)
  of the International Banking Act of 1978.
  `(ii) CREDIT OUTSTANDING- the term `credit outstanding' shall include--
  `(I) any loan or extension of credit,
  `(II) the issuance of a guarantee, acceptance, or letter of credit,
  including an endorsement or standby letter of credit, and
  `(III) any other type of transaction that provides credit or financing to
  the person or group of persons.
  `(iii) GROUP OF PERSONS- the term `group of persons' shall include any
  number of persons that the financial institution reasonably believes--
  `(I) are acting together, in concert, or with one another to acquire
  or control shares of the same insured depository institution, including
  an acquisition of shares of the same insured depository institution at
  approximately the same terms; or
  `(II) have made, or propose to make, a joint filing under section 13 of
  the Securities Exchange Act of 1934 regarding ownership of the shares of
  the same insured depository institution.
  `(C) INCLUSION OF SHARES HELD BY THE FINANCIAL INSTITUTION- Any shares of
  the insured depository institution held by the financial institution or
  any of its affiliates as principal shall be included in the calculation of
  the number of shares in which the financial institution or its affiliates
  has a security interest for purposes of subparagraph (A).
  `(D) TIMING AND CONTENT OF REPORT; COPY TO APPROPRIATE AGENCY FOR THE
  LENDING FINANCIAL INSTITUTION- The report required by this paragraph shall
  be a consolidated report on behalf of the financial institution and all
  of its affiliates, and shall be filed in writing within thirty days of
  the time the financial institution or any of its affiliates believes that
  the 25 per centum level referred to in  subparagraph (A) has been met or
  exceeded. The report shall indicate the number and percentage of shares
  securing each relevant extension of credit, the identity of the borrower,
  and the number of shares held as principal by the financial institution
  and any of its affiliates. A copy of the report shall be filed with the
  appropriate federal banking agency for the financial institution. Each
  appropriate federal banking agency may require any additional information
  necessary to carry out its supervisory responsibilities.
  `(E) EXCEPTIONS-
  `(i) EXCEPTION WHERE INFORMATION PROVIDED BY BORROWER- Notwithstanding
  subparagraph (A), a financial institution and its affiliates shall not
  be required to report a transaction under this paragraph if the person
  or group of persons has disclosed the amount borrowed from the financial
  institution and its affiliates and the security interest of the financial
  institution and its affiliates to the appropriate federal banking agency for
  the insured depository institution in connection with a notice filed under
  this subsection, an application filed under the Bank Holding Company Act or
  the Savings and Loan Holding Company Act, or any other formal application
  that is filed with the appropriate federal banking agency for the insured
  depository institution as a substitute for a notice under this subsection,
  such as an application for deposit insurance, membership  in the Federal
  Reserve System, or a national bank charter.
  `(ii) EXCEPTION FOR SHARES OWNED FOR MORE THAN ONE YEAR- Notwithstanding
  subparagraph (A), a financial institution and its affiliates shall not be
  required to report a transaction involving a person or group of persons
  that has been the owner or owners of record of the stock for a period
  of one year or more or where the stock is that of a newly chartered bank
  prior to its opening.
SEC. 6. COOPERATION WITH FOREIGN SUPERVISORS.
  The International Banking Act of 1978 (12 U.S.C. 3101 et seq.) is amended
  by adding at the end thereof the following new section:
`SEC. 15. COOPERATION WITH FOREIGN SUPERVISORS.
  `(a) DISCLOSURE OF SUPERVISORY INFORMATION TO FOREIGN SUPERVISORS-
  Notwithstanding any other provision of law, the Board, the Comptroller, the
  Federal Deposit Insurance Corporation, and the Office of Thrift Supervision
  may disclose information obtained in the course of exercising supervisory
  or examination authority to any foreign bank regulatory or supervisory
  authority where such disclosure is deemed necessary or appropriate by such
  agency of the United States and such disclosure would not prejudice the
  interests of the United States.
  `(b) REQUIREMENT OF CONFIDENTIALITY- Prior to disclosure of any information
  to a foreign authority, the United States agency shall obtain as necessary
  the agreement of such foreign authority to maintain the confidentiality
  of such information to the extent possible under applicable law.'.
SEC. 7. APPROVAL REQUIRED FOR ACQUISITION BY FOREIGN BANKS OF SHARES OF
UNITED STATES BANKS.
  Section 8(a) of the International Banking Act of 1978 (12 U.S.C. 3106(a))
  is amended by placing a period after the word `thereto' and deleting
  everything thereafter.
SEC. 8. PENALTIES.
  The International Banking Act of 1978 (12 U.S.C. 3101 et seq.) is further
  amended by adding at the end thereof (after the new section added by
  section 6 of this Act) the following new section:
`SEC. 16. PENALTIES.
  `(a) CIVIL MONEY PENALTY-
  `(1) IN GENERAL- Any foreign bank, and any branch, agency, other office,
  or subsidiary of a foreign bank that violates, and any individual who
  participates in a violation of, any provision of this Act, or any regulation
  or order issued pursuant thereto, shall forfeit and pay a civil penalty
  of not more than $25,000 for each day during which such violation continues.
  `(2) ASSESSMENT PROCEDURES- Any penalty imposed under paragraph (1) may
  be assessed and collected by the appropriate Federal banking agency in the
  manner provided in subparagraphs (E), (F), (G), and (I) of section 8(i)(2)
  of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)) for penalties
  imposed (under such section), and any such assessments shall be subject
  to the provisions of such section.
  `(3) HEARING- The foreign bank, branch, agency, other office, or subsidiary
  of a foreign bank, or other person against whom any penalty is assessed
  under this section shall be afforded an agency hearing if such foreign
  bank, branch, agency, other office, or subsidiary, or person submits
  a request for a hearing within twenty days after the issuance of the
  notice of assessment. Section 8(h) of the Federal Deposit Insurance Act
  (12 U.S.C. 1818(h)) shall apply to any proceeding under this section.
  `(4) DISBURSEMENT- All penalties collected under authority of this section
  shall be deposited into the Treasury.
  `(5) VIOLATE DEFINED- For purposes of this section, the term `violate'
  includes taking any action (alone or with others) for or toward causing,
  bringing about, participating in, counseling, or aiding or abetting
  a violation.
  `(6) REGULATIONS- The appropriate Federal banking agency shall prescribe
  regulations establishing such procedures as may be necessary to carry out
  this section.
  `(b) NOTICE UNDER THIS SECTION AFTER SEPARATION FROM SERVICE- The
  resignation, termination of employment or participation, or separation
  of an institution-affiliated party (within the meaning of section 3(u)
  of the Federal Deposit Insurance Act (12 U.S.C. 1813(u)) with respect to a
  foreign bank, or branch, agency, or other office, or subsidiary of a foreign
  bank (including a separation caused by the termination of a location in
  the United States) shall not affect the jurisdiction or authority of the
  appropriate Federal banking agency to issue any notice or to proceed under
  this section against any such party, if such notice is served before the
  end of the six-year period   beginning on the date  such party ceased to
  be such a party with respect to such foreign bank or branch, agency, other
  office, or subsidiary of a foreign bank (whether such date occurs before,
  on, or after the date of enactment of this Act).
  `(c) PENALTY FOR FAILURE TO MAKE REPORTS-
  `(1) FIRST TIER- Any foreign bank, or branch, agency, other office, or
  subsidiary of a foreign bank, that--
  `(A) maintains procedures reasonably adapted to avoid any inadvertent
  error and, unintentionally and as a result of such error--
  `(i) fails to make, submit, or publish such reports or information as
  may be required under this Act or under regulations prescribed by the
  appropriate Federal banking agency under this Act, within the period of
  time specified by the agency; or
  `(ii) submits or publishes any false or misleading report or information; or
  `(B) inadvertently transmits or publishes any report that is minimally late,
shall be subject to a penalty of not more than $2,000 for each day during
which such failure continues or such false or misleading information is not
corrected. The foreign bank, or branch, agency, other office, or subsidiary of
a foreign bank, shall have the burden of proving that an error was inadvertent
and that a report was inadvertently transmitted or published late.
  `(2) SECOND TIER- Any foreign bank, or branch, agency, other office,
  or subsidiary of a foreign bank, that--
  `(A) fails to make, submit, or publish such reports or information as
  may be required under this Act or under regulations prescribed by the
  appropriate Federal banking agency pursuant to this Act, within the time
  period specified by the agency; or
  `(B) submits or publishes any false or misleading report or information,
in a manner not described in paragraph (1) shall be subject to a penalty of
not more than $20,000 for each day during which such failure continues or
such false or misleading information is not corrected.
  `(3) THIRD TIER- Notwithstanding  paragraph (2), if any company knowingly
  or with reckless disregard for the accuracy of any information or report
  described in  paragraph (2) submits or publishes any false or misleading
  report or information, the appropriate Federal banking agency may, in its
  discretion, assess a penalty of not more than $1,000,000 or 1 per centum
  of total assets of such foreign bank, or branch, agency, other office,
  or subsidiary of a foreign bank, whichever is less, per day for each day
  during which such failure continues or such false or misleading information
  is not corrected.
  `(4) ASSESSMENT OF PENALTIES- Any penalty imposed under paragraphs (1),
  (2), or (3) shall be assessed  and collected by the appropriate Federal
  banking agency in the manner  provided in subsection (a) of this section
  (for penalties imposed under such subsection) and any such assessment
  (including the determination of the amount of the penalty) shall be subject
  to the provisions of such subsection.
  `(5) HEARING- Any foreign bank, or branch, agency, other office, or
  subsidiary of a foreign bank, against which any penalty  is assessed under
  this subsection shall be afforded an agency hearing if such foreign bank,
  or branch, agency, other office, or subsidiary of a foreign bank, submits
  a request for such hearing within twenty days after the issuance of the
  notice of assessment. Section 8(h) of the Federal Deposit Insurance Act
  (12 U.S.C. 1818(h)) shall apply to any proceeding under this subsection.'.
SEC. 9. POWERS OF AGENCIES RESPECTING APPLICATIONS, EXAMINATIONS, AND OTHER
PROCEEDINGS.
  Section 13(b) of the International Banking Act of 1978 (12 U.S.C. 3108(b))
  is amended--
  (a) by striking the heading and replacing it with `ENFORCEMENT- ';
  `(b) by inserting `(1)' before `In'; and
  `(c) by adding at the end the following new paragraph:
  `(2) POWERS RESPECTING APPLICATIONS, EXAMINATIONS, AND OTHER PROCEEDINGS-
  `(A) IN GENERAL- In the course of or in connection with an application,
  examination, investigation, or other proceeding under this Act, the
  Board, the Comptroller, and the Federal Deposit Insurance Corporation,
  as appropriate, 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
  to cause to be taken depositions, and to issue, revoke, quash, or modify
  subpoenas and subpoenas duces tecum.
  `(B) RULE-MAKING AUTHORITY- The Board, the Comptroller, and the Federal
  Deposit Insurance Corporation shall have the authority to issue rules and
  regulations to effectuate the purposes of section 13(b)(2)(A) of this Act.
  `(C) SUBPOENA POWER- The attendance of witnesses and the production of
  documents provided  for in this subsection may be required by subpoena
  or subpoena duces tecum 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.
  `(D) JUDICIAL REVIEW- 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 courts
  shall have jurisdiction and power to require compliance therewith.
  `(E) WITNESS FEES- Witnesses subpoenaed under this subsection shall be
  paid the same fees and mileage that are paid to witnesses in the district
  courts of the United States.
  `(F) SERVICE OF PROCESS- Any service required under this subsection may
  be made by registered mail, or in such other manner reasonably calculated
  to give actual notice as the agency may by regulation or otherwise provided.
  `(G) ATTORNEYS' FEES- Any court having jurisdiction of any proceeding
  instituted under this Act may allow to any party that succeeds in having an
  agency order modified or set aside such reasonable expenses and attorneys'
  fees as it deems just and proper.
  `(H) PENALTIES FOR NOT COMPLYING FOR EACH DAY THAT SUCH FAILURE OR REFUSAL
  CONTINUES- Any person who willfully shall fail or refuse to attend and
  testify or to answer any lawful inquiry or to produce books, papers,
  correspondence, memoranda, contracts, agreements, or other records, if in
  such person's power so to do, in obedience to the subpoena of the agency,
  shall be guilty of a misdemeanor and, upon conviction, shall be subject to
  a fine of not more than $10,000 for each day that such failure or refusal
  continues or to imprisonment for a term of not more than one year or both.'.
SEC. 10. PENALTIES FOR FAILURE TO COMPLY WITH AGENCY SUBPOENA.
  (a) Section 5(f) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(f))
  is amended in the last sentence by striking `$1000' and inserting in lieu
  thereof `$10,000 for each day that such failure or refusal continues'.
  (b) Section 8(n) of the Federal Deposit Insurance Act (12 U.S.C. 1818(n))
  is amended in the last sentence by striking `$1000' and inserting in lieu
  thereof `$10,000 for each day that such failure or refusal continues'.
SEC. 11. CLARIFICATION OF MANAGERIAL STANDARDS IN BANK HOLDING COMPANY ACT.
  Section 3(c) of the Bank Holding Company Act (12 U.S.C. 1842(c))
  is amended by adding at the end of paragraph (2) (as redesignated by
  section 2(d) of this Act) the following new sentence: `Consideration of
  the managerial resources of a company  or bank shall include consideration
  of the competence, experience, and integrity of the officers, directors,
  and principal shareholders of the company or bank.'.
SEC. 12. AUTHORITY OF FEDERAL BANKING AGENCIES TO ENFORCE CONSUMER STATUTES.
  (a) AMENDMENTS TO THE HOME MORTGAGE DISCLOSURE ACT-
  (1) MAINTENANCE OF RECORDS AND PUBLIC DISCLOSURE- Section 304(h) of the
  Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(h)) is amended by
  striking paragraphs (1) and (3) and inserting in lieu thereof the following
  new paragraphs:
  `(1) the Comptroller of the Currency for national banks and Federal branches
  and Federal agencies of foreign banks;
  `(3) the Federal Deposit Insurance Corporation for banks insured by the
  Federal Deposit Insurance Corporation (other than members of the Federal
  Reserve System), mutual savings banks, insured branches of foreign banks,
  and any other depository institution described in section 303(2)(A) which
  is not otherwise referred to in this paragraph;'.
  (2) ENFORCEMENT- Section  305(b) of the Home Mortgage Disclosure Act of 1975
  (12 U.S.C. 2804(b)) is amended by striking paragraph (1) and inserting in
  lieu thereof the following new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national
  banks), branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial lending
  companies owned or controlled by foreign banks, and organizations operating
  under section 25 or 25(a) of the Federal Reserve Act, by the Board; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System), mutual savings banks as defined
  in section 3(f) of the Federal Deposit Insurance Act (12 U.S.C. 1813(f)),
  insured branches of foreign banks, and any other depository institution not
  referred to in this paragraph or paragraph (2) or (3) of this subsection,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.
  (b) AMENDMENT TO THE TRUTH IN LENDING ACT-  Section 108(a) of the Consumer
  Credit Protection Act (15 U.S.C. 1607(a)) is amended by striking paragraph
  (1) and inserting in lieu thereof the following new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national
  banks), branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial lending
  companies owned or controlled by foreign banks, and organizations operating
  under section 25 or 25(a) of the Federal Reserve Act, by the Board; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System) and insured branches of foreign banks,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.
  (c) AMENDMENT TO THE FAIR CREDIT REPORTING ACT- Section 621(b) of the
  Consumer Credit Protection Act (15 U.S.C. 1681s(b)) is amended by striking
  paragraph (1) and inserting in lieu thereof the following new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national banks),
  branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial
  lending companies owned or controlled by foreign banks, and organizations
  operating under section 25 or 25(a) of the Federal Reserve Act, by the
  Board of Governors of the Federal Reserve System; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System) and insured branches of foreign banks,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.
  (d) AMENDMENT TO THE EQUAL CREDIT OPPORTUNITY ACT- Section 704(a) of the
  Consumer Credit Protection Act (15 U.S.C. 1691c(a)), is amended by striking
  paragraph (1) and inserting in lieu thereof the following new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national
  banks), branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial lending
  companies owned or controlled by foreign banks, and organizations operating
  under section 25 or 25(a) of the Federal Reserve Act, by the Board; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System) and insured branches of foreign banks,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used  in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.
  (e) AMENDMENT TO THE FAIR DEBT COLLECTION PRACTICES ACT- Section 814(b)
  of the Consumer Credit Protection Act (15 U.S.C. 16921(b)) is amended
  by striking paragraph (1) and inserting in lieu thereof the following
  new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national banks),
  branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial
  lending companies owned or controlled by foreign banks, and organizations
  operating under section 25 or 25(a) of the Federal Reserve Act, by the
  Board of Governors of the Federal Reserve System; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System) and insured branches of foreign banks,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.
  (f) AMENDMENT TO THE ELECTRONIC FUND TRANSFER ACT- Section 917(a) of the
  Consumer Credit Protection Act (15 U.S.C. 1693o(a)), as amended by the
  Financial Institutions Regulatory and Interest Rate Control Act of 1978,
  is amended by striking paragraph (1) and inserting in lieu thereof the
  following new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national
  banks), branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial lending
  companies owned or controlled by foreign banks, and organizations operating
  under section 25 or 25(a) of the Federal Reserve Act, by the Board; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System) and insured branches of foreign banks,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.
  (g) Amendment to the Federal Trade Commission Act-
  `(1) DEFINITIONS- Section 4 of the Federal Trade Commission Act (15
  U.S.C. 44) is amended by adding at the end thereof the following new
  paragraph:
  `Banks' means the types of banks and other financial institutions referred
  to in section 18(f)(2).'.
  (2) ENFORCEMENT- Section 18(f) of the Federal Trade Commission Act (15
  U.S.C. 57a(f)) is amended by striking paragraph (2) and inserting in lieu
  thereof the following new paragraph:
  `(2) Compliance with regulations prescribed under this subsection shall
  be enforced under section 8 of the Federal Deposit Insurance Act, in the
  case of--
  `(A) national banks, banks operating under the code of law for the District
  of Columbia, and Federal branches and Federal agencies of foreign banks,
  by the division of consumer affairs established by the Comptroller of
  the Currency;
  `(B) member banks of the Federal Reserve System (other than national banks
  and banks operating under the code of law for the District of Columbia),
  branches and agencies of foreign banks (other than Federal branches,
  Federal agencies, and insured branches of foreign banks), commercial
  lending companies owned or controlled by foreign banks, and organizations
  operating under section 25 or 25(a) of the Federal Reserve Act, by the
  division of consumer affairs established by the Board of Governors of the
  Federal Reserve System; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other
  banks referred to in subparagraph (A) or (B)) and insured branches of
  foreign banks, by the division of consumer affairs established by the
  Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in the Federal
  Trade Commission Act or otherwise defined in section 3(s) of the Federal
  Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given
  to them in section 1(b) of the International Banking Act of 1978 (12
  U.S.C. 3101).'.
  (h) AMENDMENT TO THE EXPEDITED FUNDS AVAILABILITY ACT- Section 610(a) of the
  Competitive Equality Banking Act of 1987 (12 U.S.C. 4009(a)) is amended by
  striking paragraph (1) inserting in lieu thereof the following new paragraph:
  `(1) section 8 of the Federal Deposit Insurance Act, in the case of--
  `(A) national banks, and Federal branches and Federal agencies of foreign
  banks, by the Comptroller of the Currency;
  `(B) member banks of the Federal Reserve System (other than national
  banks), and offices, branches, and agencies of foreign banks located
  in the United States (other than Federal branches, Federal agencies,
  and insured branches of foreign banks), by the Board of Governors of the
  Federal Reserve System; and
  `(C) banks insured by the Federal Deposit Insurance Corporation (other than
  members of the Federal Reserve System) and insured branches of foreign banks,
  by the Board of Directors of the Federal Deposit Insurance Corporation.
  `(D) The terms used in this paragraph that are not defined in this title
  or otherwise defined in section 3(s) of the Federal Deposit Insurance Act
  (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b)
  of the International Banking Act of 1978 (12 U.S.C. 3101).'.

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