S.958 - Foreign Bank Act94th Congress (1975-1976)
|Sponsor:||Sen. Proxmire, William [D-WI] (Introduced 03/05/1975)(by request)|
|Committees:||Senate - Banking, Housing, and Urban Affairs|
|Latest Action:||Senate - 03/05/1975 Referred to Senate Committee on Banking, Housing and Urban Affairs. (All Actions)|
This bill has the status Introduced
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Summary: S.958 — 94th Congress (1975-1976)All Information (Except Text)
Introduced in Senate (03/05/1975)
Foreign Bank Act - Redefines "bank" to include branches and agencies of foreign banks established or operating under the laws of the United States, any State, or the District of Columbia. Adds definitions of other terms to the Bank Holding Company Act of 1956.
Requires foreign banks with worldwide assets in excess of $500,000,000 to become members of the Federal Reserve System.
Prescribes regulations for the acquisition and establishment of additional branches and agencies by bank holding companies and foreign banks. Requires divestiture within 2 years of the date of enactment by bank holding companies, foreign bank holding companies, and their subsidiaries, of any branch or agency outside the State in which the operations of the company's banking subsidiaries are principally conducted, which was acquired after December 3, 1974. Requires divestiture within 10 years of non-banking interests acquired after December 3, 1974, by foreign bank companies. Allows the retention of banking facilities in the State in which the foreign bank's operations are principally conducted and expansion in that State in any form permitted by State law.
Allows expansion outside the principal State in the same form as that in which the bank company's operations are presently conducted in the non-principal State.
Redefines, and adds, terms to the Federal Reserve Act. Provides that any branch of a foreign bank operating under this Act which fails to become a member of the Federal Reserve System within one year of passage of this Act shall forfeit all of its rights, privileges, and franchises.
Allows the Board of Governors of the Federal Reserve System to waive the requirements of the Federal Reserve Act that a majority of the shares of a corporation doing foreign banking be owned or controlled by United States citizens and that all of the directors of such a corporation be United States citizens.
Permits a national banking association to be formed under the National Bank Act by or on behalf of a foreign bank. Allows the Comptroller of the Currency to permit one-third of the directors of a national bank to be non-citizens of the United States.
Directs the Federal Deposit Insurance Corporation to submit to the Congress within ninety days of enactment a proposal for extending insurance coverage to deposits in branches and agencies of foreign banks.
Allows a foreign bank to establish and operate branches in any State upon receipt of a certificate of authority from the Comptroller, notwithstanding the laws of the State. Allows a foreign bank to convert branches or agencies operating under State law to federally-certified branches to be operated under this Act.
Directs the Comptroller to consider the views of the Secretary of State, the Secretary of the Treasury, the Board of Governors, and the bank supervisory authorities of the States in deciding whether to issue certificates of authority to foreign banks to operate branches under this Act. Prohibits the Comptroller from issuing such certificate if the establishment of the branch would adversely affect the domestic or foreign commerce, or otherwise would not be in the interest of the United States.
Provides that upon the issuance of a certificate of authority the foreign bank may conduct its business with the same rights, privileges, duties and restrictions as a national bank.
Requires annual examinations by the Comptroller of branches operating under this Act, reports by the banks in accordance with the Federal Deposit Insurance Act, and such additional reports as the Comptroller may prescribe.
Prescribes penalties for failure to make such reports.
Sets forth the assets which foreign banks are required to keep on deposit in the appropriate national bank.
Provides for the appointment of a receiver by the Comptroller whenever he has revoked the certificate of authority of a foreign bank, with the same powers in the receiver as are now exercised by receivers of national banks.
Requires the appointment of an agent for service of process by each bank holding on certificate of authority in each State where it has established a branch under this Act, and allows service upon the Comptroller in the absence of such an agent.
Provides civil and criminal penalties for the violation of this Act by a foreign bank holding a certificate of authority.
Grants Federal district courts original jurisdiction in any civil action commenced by the United States against a foreign bank and in any action by a foreign bank to enjoin the Comptroller or a receiver acting under his direction.
Makes technical and conforming amendments to the United States Criminal Code, the Bank Protection Act, the Truth-in-Lending Act, and the Fair Credit Reporting Act.
Authorizes the Board of Governors, the Comptroller and the Federal Deposit Insurance Corporation to enter into agreements with foreign bank supervisory authorities for the exchange of information on banking institutions.
Requires a Federal banking license for any foreign bank controlling, establishing, or operating a bank in the United States which has not received a certificate of authority, except that those banks existing at the date of enactment need only register with the Comptroller. Empowers the Secretary of the Treasury to approve such licenses after consulting with the Secretary of State and the Board of Governors. Directs the Comptroller not to issue such license if the Secretary of the Treasury determines that issuance would adversely affect the domestic or foreign commerce of the United States or would otherwise not be in the interests of the United States.
Authorizes the Secretary of the Treasury and the Comptroller to issue rules and regulations deemed necessary to enforce compliance with this Act.