HR 698 EHRFSCommentsClose CommentsPermalink

To amend the Federal Deposit Insurance Act to establish industrial bank holding company regulation, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the `Industrial Bank Holding Company Act of 2007'.CommentsClose CommentsPermalink

SEC. 2. INDUSTRIAL BANK HOLDING COMPANY REGULATION.

(a) Definitions-CommentsClose CommentsPermalink





(1) INDUSTRIAL BANK- Section 3(a) of the Federal Deposit Insurance Act (12 U.S.C. 1813(a)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(4) INDUSTRIAL BANK- The term `industrial bank' means any insured State bank that is an industrial bank, industrial loan company, or other institution that is excluded, pursuant to section 2(c)(2)(H) of the Bank Holding Company Act of 1956, from the definition of the term `bank' for purposes of such Act.'.CommentsClose CommentsPermalink





(2) INDUSTRIAL BANK HOLDING COMPANY- Section 3(w) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)) is amended by adding at the end the following new paragraphs:CommentsClose CommentsPermalink





`(8) INDUSTRIAL BANK HOLDING COMPANY- The term `industrial bank holding company' means any company that--CommentsClose CommentsPermalink





`(A) controls (as determined by the Corporation pursuant to section 2(a) of the Bank Holding Company Act of 1956), directly or indirectly, any industrial bank; andCommentsClose CommentsPermalink





`(B) is not--CommentsClose CommentsPermalink





`(i) 1 or more of the following: a bank holding company, a savings and loan holding company, a company that is subject to the Bank Holding Company Act of 1956 pursuant to section 8(a) of the International Banking Act of 1978, or a holding company regulated by the Securities and Exchange Commission pursuant to section 240.15c3-1(a)(7) of title 17 of the Code of Federal Regulations (as in effect on January 29, 2007); orCommentsClose CommentsPermalink





`(ii) controlled by a company described in clause (i).CommentsClose CommentsPermalink





`(9) CAPITAL TERMS RELATING TO INDUSTRIAL BANK HOLDING COMPANIES-CommentsClose CommentsPermalink





`(A) ADEQUATELY CAPITALIZED- With respect to an industrial bank holding company, the term `adequately capitalized' means a level of capitalization which meets or exceeds all applicable Federal regulatory capital standards.CommentsClose CommentsPermalink





`(B) WELL CAPITALIZED- With respect to an industrial bank holding company, the term `well capitalized' means a level of capitalization which meets or exceeds the required capital levels for well capitalized industrial bank holding companies established by the Corporation.'.CommentsClose CommentsPermalink





(3) TECHNICAL AND CONFORMING AMENDMENTS TO OTHER DEFINITIONS-CommentsClose CommentsPermalink





(A) APPROPRIATE FEDERAL BANKING AGENCY- Section 3(q)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)(3)) is amended--CommentsClose CommentsPermalink





(i) by striking `or a foreign' and inserting `, any foreign'; andCommentsClose CommentsPermalink





(ii) by inserting `, and any industrial bank holding company and any subsidiary of an industrial bank holding company (other than a bank)' after `insured branch'.CommentsClose CommentsPermalink





(B) DEPOSITORY INSTITUTION HOLDING COMPANY- Section 3(w)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1813(w)(1)) is amended--CommentsClose CommentsPermalink





(i) by striking `or a savings' and inserting `, any savings'; andCommentsClose CommentsPermalink





(ii) by inserting `, and any industrial bank holding company' before the period at the end.CommentsClose CommentsPermalink





(b) Industrial Bank Holding Company Registration and Ownership- The Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.) is amended by adding at the end the following new section:CommentsClose CommentsPermalink

`SEC. 51. INDUSTRIAL BANK HOLDING COMPANY REGULATION.

`(a) Acquisition of Industrial Bank Shares or Assets- Section 3 of the Bank Holding Company Act of 1956 (other than section 3(c)(3)(B) of that Act) shall apply to any company that is or would become an industrial bank holding company in the same manner as such section applies to a company that is or would become a bank holding company, except that for purposes of applying this subsection--CommentsClose CommentsPermalink





`(1) any reference to a `bank holding company' in such section 3 shall be deemed to be a reference to an `industrial bank holding company';CommentsClose CommentsPermalink





`(2) any reference to a `bank' in such section 3 shall be deemed to be a reference to an `industrial bank';CommentsClose CommentsPermalink





`(3) any reference to the `Board' in such section 3 shall be deemed to be a reference to the Corporation;CommentsClose CommentsPermalink





`(4) any reference to the `Bank Holding Company Act Amendments of 1970' in such section 3 shall be deemed to be a reference to the `Industrial Bank Holding Company Act of 2007';CommentsClose CommentsPermalink





`(5) any reference to a `home State' in such section 3 shall be deemed to be a reference to--CommentsClose CommentsPermalink





`(A) with respect to an industrial bank holding company, the State in which the total deposits of all banking subsidiaries of such company were the largest on the later of--CommentsClose CommentsPermalink





`(i) January 28, 2007; orCommentsClose CommentsPermalink





`(ii) the date on which the company becomes an industrial bank holding company under this section; andCommentsClose CommentsPermalink





`(B) with respect to an industrial bank, the home State of the bank as determined under section 44(g);CommentsClose CommentsPermalink





`(6) any reference to a `host State' in such section 3 shall be deemed to be a reference to--CommentsClose CommentsPermalink





`(A) with respect to an industrial bank holding company, a State, other than the home State of the company, in which the company controls, or seeks to control, an industrial bank subsidiary; andCommentsClose CommentsPermalink





`(B) with respect to an industrial bank, the host State of the bank as determined under section 44(g);CommentsClose CommentsPermalink





`(7) any reference to an `out-of-State bank holding company' in such section 3 shall be deemed to be a reference to, with respect to any State, an industrial bank holding company whose home State is another State; andCommentsClose CommentsPermalink





`(8) any reference to an `out-of-State bank' in such section 3 shall be deemed to be a reference to, with respect to any State, an industrial bank whose home State is another State.CommentsClose CommentsPermalink





`(b) Application Process- An application filed under subsection (a) to acquire control of an industrial bank shall be treated as an application for a deposit facility for purposes of this Act and any other Federal law.CommentsClose CommentsPermalink





`(c) Registration-CommentsClose CommentsPermalink





`(1) IN GENERAL- Each industrial bank holding company shall register with the Corporation on forms prescribed by the Corporation before the end of the 180-day period beginning on the later of--CommentsClose CommentsPermalink





`(A) the date the company becomes an industrial bank holding company; orCommentsClose CommentsPermalink





`(B) the date of the enactment of the Industrial Bank Holding Company Act of 2007.CommentsClose CommentsPermalink





`(2) INFORMATION TO BE INCLUDED- Each registration submitted under paragraph (1) shall include such information, under oath, with respect to the financial condition, ownership, operations, management, and intercompany relationships of the industrial bank holding company and subsidiaries of such holding company, and other factors (including information described in subsection (d)(1)(C)), as the Corporation may determine to be appropriate to carry out the purposes of this section.CommentsClose CommentsPermalink





`(3) EXTENSION OF TIME FOR SUBMITTING COMPLETE INFORMATION- Upon application by an industrial bank holding company and subject to such requirements, factors, and evidence as the Corporation may require, the Corporation may extend the period described in paragraph (1) within which such company shall register and file the requisite information.CommentsClose CommentsPermalink





`(d) Reports and Examinations-CommentsClose CommentsPermalink





`(1) REPORTS-CommentsClose CommentsPermalink





`(A) REPORTS REQUIRED- Each industrial bank holding company and each subsidiary of an industrial bank holding company, other than an industrial bank, shall file with the Corporation such reports as may be required by the Corporation.CommentsClose CommentsPermalink





`(B) FORM AND MANNER- Reports filed under subparagraph (A) shall be made under oath and shall be in such form and for such periods, as the Corporation may prescribe.CommentsClose CommentsPermalink





`(C) INFORMATION- Each report filed under subparagraph (A) shall contain such information as the Corporation may require concerning--CommentsClose CommentsPermalink





`(i) the operations of the industrial bank holding company and the holding company's subsidiaries;CommentsClose CommentsPermalink





`(ii) the financial condition of the industrial bank holding company and such subsidiaries, together with information on systems maintained within the holding company or within any such subsidiary for monitoring and controlling financial and operating risks, and transactions with insured depository institution subsidiaries of the holding company;CommentsClose CommentsPermalink





`(iii) compliance by the industrial bank holding company and the holding company's subsidiaries with all applicable Federal and State law; andCommentsClose CommentsPermalink





`(iv) such other information as the Corporation may require.CommentsClose CommentsPermalink





`(D) ACCEPTANCE OF EXISTING REPORTS- For purposes of this paragraph, the Corporation may accept reports that an industrial bank holding company or any subsidiary of such company has provided or has been required to provide to any other Federal or State supervisor or to any appropriate self-regulatory organization.CommentsClose CommentsPermalink





`(2) EXAMINATIONS-CommentsClose CommentsPermalink





`(A) IN GENERAL- Each industrial bank holding company and each subsidiary of each such holding company (other than an industrial bank) shall be subject to such examinations by the Corporation as the Corporation may prescribe for purposes of this section.CommentsClose CommentsPermalink





`(B) FURNISHING REPORTS TO OTHER AGENCIES- Examination and other reports made or received under this section may be furnished by the Corporation to any other appropriate Federal agency or any appropriate State bank supervisor or other State financial supervisory agency.CommentsClose CommentsPermalink





`(C) USE OF REPORTS FROM OTHER AGENCIES- The Corporation may use, for the purposes of this subsection, reports of examination made by any other appropriate Federal agency, any appropriate State bank supervisor, or any other State financial supervisory authority with respect to any industrial bank holding company or subsidiary of any such holding company, to the extent the Corporation may determine such use to be feasible for such purposes.CommentsClose CommentsPermalink





`(3) CAPITAL-CommentsClose CommentsPermalink





`(A) IN GENERAL- The Corporation may not, by regulation, guideline, order, or otherwise, prescribe or impose any capital or capital adequacy rules, guidelines, standards, or requirements on any functionally regulated affiliate (as defined in section 45) of any depository institution that is controlled by an industrial bank holding company that--CommentsClose CommentsPermalink





`(i) is not a depository institution; andCommentsClose CommentsPermalink





`(ii) is--CommentsClose CommentsPermalink





`(I) in compliance with the applicable capital requirements of the appropriate Federal supervisory agency of the affiliate (including the Securities and Exchange Commission or State insurance authority);CommentsClose CommentsPermalink





`(II) properly registered as an investment adviser under the Investment Advisers Act of 1940, or with any State; orCommentsClose CommentsPermalink





`(III) is licensed as an insurance agent with the appropriate State insurance authority.CommentsClose CommentsPermalink





`(B) RULE OF CONSTRUCTION- Subparagraph (A) shall not be construed as preventing the Corporation from imposing capital or capital adequacy rules, guidelines, standards, or requirements with respect to--CommentsClose CommentsPermalink





`(i) activities of a registered investment adviser other than with respect to investment advisory activities or activities incidental to investment advisory activities; orCommentsClose CommentsPermalink





`(ii) activities of a licensed insurance agent other than insurance agency activities or activities incidental to insurance agency activities.CommentsClose CommentsPermalink





`(e) Access to Information-CommentsClose CommentsPermalink





`(1) INFORMATION PROVIDED BY CORPORATION- Any confidential supervisory information, including examination or other reports, pertaining to an industrial bank furnished by the Corporation to any other Federal agency or any appropriate State supervisory agency shall remain confidential unless the Corporation, in writing, otherwise consents.CommentsClose CommentsPermalink





`(2) DEFERENCE TO DEPOSITORY INSTITUTION EXAMINATIONS- Any appropriate Federal supervisory agency of a holding company of an industrial bank shall, to the fullest extent possible, forego any examination of any depository institution subsidiary of the holding company and use the reports of examinations of the institution made by the appropriate Federal banking agency and the appropriate State bank supervisor in lieu of a direct examination.CommentsClose CommentsPermalink





`(3) INFORMATION TO BE PROVIDED TO CORPORATION-CommentsClose CommentsPermalink





`(A) REQUEST TO AGENCY- Upon request by the Corporation, an appropriate Federal supervisory agency may provide to the Corporation information regarding the condition of an industrial bank, any holding company that controls such industrial bank, or any other affiliate of any such holding company that is necessary to assess risk to the industrial bank.CommentsClose CommentsPermalink





`(B) AVAILABILITY FROM HOLDING COMPANY DIRECTLY- Notwithstanding section 45, section 115 of the Gramm-Leach-Bliley Act, or any other provision of law (including any regulation), if the information requested under subparagraph (A) is not provided to the Corporation, and the information is necessary to assess risk to the industrial bank, the Corporation may require the holding company or affiliate referred to in such subparagraph with respect to such bank to provide such information to the Corporation.CommentsClose CommentsPermalink





`(4) EXAMINATIONS BY CORPORATION-CommentsClose CommentsPermalink





`(A) IN GENERAL- Subject to subparagraph (B) and notwithstanding section 45, section 115 of the Gramm-Leach-Bliley Act, or any other provision of law (including any regulation), no law shall be construed as preventing the Corporation from examining an affiliate of an industrial bank pursuant to paragraph (2), (3), or (4) of section 10(b), as may be necessary to disclose fully the relationship between the industrial bank and the affiliate, and the effect of such relationship on the industrial bank, if the Corporation finds such examination necessary to determine the condition of an industrial bank.CommentsClose CommentsPermalink





`(B) FUNCTIONALLY REGULATED AFFILIATES- Before the Corporation may examine any affiliate of an industrial bank that is--CommentsClose CommentsPermalink





`(i) a broker, a dealer, an investment company, or an investment advisor, orCommentsClose CommentsPermalink





`(ii) an entity that is subject to consolidated supervision by the Securities and Exchange Commission, other than a depository institution,CommentsClose CommentsPermalink





the Corporation shall request the Commission to provide the information that the Corporation is seeking to obtain through examination and may proceed with the examination only if the requested information is not provided by the Commission in a timely manner.CommentsClose CommentsPermalink





`(f) Limitation on Control-CommentsClose CommentsPermalink





`(1) IN GENERAL- Except as provided in paragraph (3) or (4), no industrial bank may be controlled, directly or indirectly, by a commercial firm.CommentsClose CommentsPermalink





`(2) COMMERCIAL FIRM DEFINED- For purposes of this section, the term `commercial firm' means any entity at least 15 percent of the annual gross revenues of which on a consolidated basis, including all affiliates of the entity, were derived from engaging, on an on-going basis, in activities that are not financial in nature or incidental to a financial activity during at least 3 of the prior 4 calendar quarters, as determined by the Corporation in accordance with regulations which the Corporation shall prescribe.CommentsClose CommentsPermalink





`(3) Pre-2003 EXCLUSIONS-CommentsClose CommentsPermalink





`(A) GRANDFATHERED INSTITUTIONS- Paragraph (1) shall not apply with respect to any industrial bank--CommentsClose CommentsPermalink





`(i) which became an insured depository institution before October 1, 2003, or pursuant to an application for deposit insurance which was approved by the Corporation before such date; andCommentsClose CommentsPermalink





`(ii) with respect to which there is no change in control, directly or indirectly, of the bank after September 30, 2003, that requires a registration under this section or an application under section 7(j) or 18(c), section 3 of the Bank Holding Company Act of 1956, or section 10 of the Home Owners' Loan Act, except a direct or indirect change of control in which--CommentsClose CommentsPermalink





`(I) immediately prior to such change in control neither the ultimate acquiring holding company nor the ultimate acquired holding company is a commercial firm;CommentsClose CommentsPermalink





`(II) immediately after such change of control the resulting ultimate holding company is not a commercial firm; andCommentsClose CommentsPermalink





`(III) the resulting ultimate holding company is subject to consolidated supervision by the Office of Thrift Supervision or a holding company regulated by the Securities and Exchange Commission pursuant to section 240.15c3-1(a)(7) of title 17 of the Code of Federal Regulations (as in effect on January 29, 2007).CommentsClose CommentsPermalink





`(B) CORPORATE REORGANIZATIONS PERMITTED- The acquisition of direct or indirect control of the industrial bank referred to in subparagraph (A)(ii) shall not be treated as a `change in control' for purposes of such subparagraph if--CommentsClose CommentsPermalink





`(i) the company acquiring control is itself directly or indirectly controlled by a company that was an affiliate of such bank on the date referred to in such subparagraph, and remains an affiliate at all times after such date; andCommentsClose CommentsPermalink





`(ii) the transaction through which the company acquired control of the industrial bank constituted solely a corporate reorganization of a company that controlled the industrial bank on the date referred to in such subparagraph.CommentsClose CommentsPermalink





`(4) Pre-2007 EXCLUSIONS-CommentsClose CommentsPermalink





`(A) GRANDFATHERED COMMERCIAL FIRMS- Paragraph (1) shall not apply to any commercial firm--CommentsClose CommentsPermalink





`(i) which became a holding company of an industrial bank by virtue of acquiring control of an industrial bank on or after October 1, 2003, and before January 29, 2007;CommentsClose CommentsPermalink





`(ii) which does not acquire control of any other depository institution after January 28, 2007;CommentsClose CommentsPermalink





`(iii) with respect to which there is no change in control, directly or indirectly, of any depository institution subsidiary after January 28, 2007, that requires a registration under this section or an application under section 7(j) or 18(c), section 3 of the Bank Holding Company Act of 1956, or section 10 of the Home Owners' Loan Act; andCommentsClose CommentsPermalink





`(iv) each industrial bank subsidiary of which remains in compliance with the limitations contained in subparagraph (B).CommentsClose CommentsPermalink





`(B) ACTIVITY AND BRANCHING LIMITATIONS- An industrial bank subsidiary of a commercial firm described in clauses (i), (ii) and (iii) of subparagraph (A) is in compliance with the requirements of this subparagraph for purposes of subparagraph (A)(iv) so long as the industrial bank--CommentsClose CommentsPermalink





`(i) engages only in activities in which the industrial bank was engaged on January 28, 2007; andCommentsClose CommentsPermalink





`(ii) does not acquire, establish, or operate any branch, deposit production office, loan production office, automated teller machine, or remote service unit in any State other than the home State of the bank or any host State in which such bank operated branches on January 28, 2007.CommentsClose CommentsPermalink





`(C) CORPORATE REORGANIZATIONS PERMITTED- The acquisition of direct or indirect control of a depository institution subsidiary referred to in subparagraph (A)(iii) shall not be treated as a `change in control' for purposes of such subparagraph if--CommentsClose CommentsPermalink





`(i) the company acquiring control is itself directly or indirectly controlled by a company that was an affiliate of such subsidiary on the date referred to in such subparagraph, and remains an affiliate at all times after such date; andCommentsClose CommentsPermalink





`(ii) the transaction through which the company acquired control of the depository institution constituted solely a corporate reorganization of a company that controlled the depository institution on the date referred to in such subparagraph.CommentsClose CommentsPermalink





`(g) Procedures and Timing for Termination of Activities or Divestiture-CommentsClose CommentsPermalink





`(1) TRANSITION PROVISION-CommentsClose CommentsPermalink





`(A) IN GENERAL- Any company that fails to comply with the provisions of subsection (f) shall divest its ownership or control of each industrial bank subsidiary of the company not later than the end of the 2-year period beginning on the first date that the company ceased to comply with subsection (f).CommentsClose CommentsPermalink





`(B) EXTENSION OF TIME PERIOD-CommentsClose CommentsPermalink





`(i) IN GENERAL- Upon application by a holding company that controls an industrial bank, the appropriate Federal supervisory agency of such holding company may extend the 2-year period referred to in subparagraph (A) with respect to such company for not more than 1 year if, in such agency's judgment, such an extension would not be detrimental to the public interest.CommentsClose CommentsPermalink





`(ii) FACTORS- In making any decision to grant an extension under clause (i) to a holding company of an industrial bank, the appropriate Federal supervisory agent of such holding company shall consider whether--CommentsClose CommentsPermalink





`(I) the company has made a good faith effort to divest such interests; andCommentsClose CommentsPermalink





`(II) such extension is necessary to avert substantial loss to the company.CommentsClose CommentsPermalink





`(2) CONDITIONS BEFORE DIVESTITURE- During the 2-year period referred to in paragraph (1)(A) with respect to any company and any extension of such period, the appropriate Federal supervisory agency may impose any conditions or restrictions on the company or any subsidiary of the company (other than a bank), including restricting or prohibiting transactions between the company or subsidiary and any depository institution subsidiary of the company, as are appropriate under the circumstances.CommentsClose CommentsPermalink





`(3) TERMINATION OF ACTIVITIES OR DIVESTITURE OF NONBANK SUBSIDIARIES CONSTITUTING SERIOUS RISK-CommentsClose CommentsPermalink





`(A) IN GENERAL- Notwithstanding any other provision of this section, the appropriate Federal supervisory agency may, whenever such agency has reasonable cause to believe that the continuation by a holding company of an industrial bank of any activity or of ownership or control of any nonbank subsidiary of such holding company, other than a nonbank subsidiary of a depository institution, constitutes a serious risk to the financial safety, soundness, or stability of a depository institution subsidiary of the holding company and is inconsistent with sound banking principles or with the purposes of this section, at the election of the holding company--CommentsClose CommentsPermalink





`(i) order such holding company or any such nonbank subsidiary, after due notice and opportunity for hearing, and after considering the views of the appropriate Federal banking agency and, if applicable, appropriate State bank supervisor, to terminate such activities or to terminate (within 120 days or such longer period as the appropriate Federal supervisory agency may direct in unusual circumstances) the ownership or control by such holding company or nonbank subsidiary of any such depository institution subsidiary either by sale or by distribution of the shares of the depository institution subsidiary, in accordance with subparagraph (B), to the shareholders of the holding company of the industrial bank; orCommentsClose CommentsPermalink





`(ii) order the holding company of the industrial bank, after due notice and opportunity for hearing, and after consultation with the appropriate State bank supervisor for the industrial bank, to terminate (within 120 days or such longer period as the appropriate Federal supervisory agency may direct) the ownership or control of any such industrial bank by such company.CommentsClose CommentsPermalink





`(B) PRO RATA DISTRIBUTION- Any distribution to shareholders referred to in clause (i) shall be pro rata with respect to all of the shareholders of the distributing company, and such company shall not make any charge to any shareholder in connection with such distribution.CommentsClose CommentsPermalink





`(4) FOREIGN BANK OWNERSHIP-CommentsClose CommentsPermalink





`(A) INDUSTRIAL BANKS- After January 28, 2007, no foreign bank may acquire, directly or indirectly, control of an industrial bank unless the Board of Governors of the Federal Reserve System has determined by order, or in the case of a foreign bank that is a savings and loan holding company the Board of Governors of the Federal Reserve System and the Director of Office of Thrift Supervision have jointly determined by order, in connection with the change in control or acquisition of the industrial bank and after consultation with the Corporation, that the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in the bank's home country in accordance with the standard in section 3(c)(3)(B) of the Bank Holding Company Act of 1956.CommentsClose CommentsPermalink





`(B) CONFORMING AMENDMENT- Notwithstanding any other provision of law, after the date of enactment of the Industrial Bank Holding Company Act of 2007, the Director of the Office of Thrift Supervision shall not approve any acquisition of a savings association under section 10(e)(2) of the Home Owners' Loan Act by a foreign bank that is subject to the Bank Holding Company Act of 1956 pursuant to section 8(a) of the International Banking Act of 1978 and that is not a bank holding company unless the Director of the Office of Thrift Supervision and the Board of Governors of the Federal Reserve System have jointly determined, by order, in connection with the acquisition of the savings association that the foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in the bank's home country in accordance with the standard in section 3(c)(3)(B) of the Bank Holding Company Act of 1956.CommentsClose CommentsPermalink





`(5) HOLDING COMPANY RESPONSIBILITY-CommentsClose CommentsPermalink





`(A) SOURCE OF STRENGTH- Notwithstanding section 45, a holding company of an industrial bank--CommentsClose CommentsPermalink





`(i) shall serve as a source of financial and managerial strength to the subsidiary banks of such holding company; andCommentsClose CommentsPermalink





`(ii) shall not conduct the operations of the holding company in an unsafe or unsound manner.CommentsClose CommentsPermalink





`(B) IMPLEMENTATION- The appropriate Federal supervisory agency of the holding company of an industrial bank shall implement the requirements under subparagraph (A).CommentsClose CommentsPermalink





`(h) Administrative Provisions-CommentsClose CommentsPermalink





`(1) AGENT FOR SERVICE OF PROCESS- The Corporation may require any industrial bank holding company, or persons connected with such holding company if it is not a corporation, to execute and file a prescribed form of irrevocable appointment of agent for service of process.CommentsClose CommentsPermalink





`(2) RELEASE FROM REGISTRATION- The Corporation may at any time, upon the Corporation's own motion or upon application, release a registered industrial bank holding company from any registration previously made by such company, if the Corporation determines that such company no longer controls any industrial bank.CommentsClose CommentsPermalink





`(i) Definitions- For purposes of this section, the following definitions shall apply:CommentsClose CommentsPermalink





`(1) APPROPRIATE FEDERAL SUPERVISORY AGENCY- The term `appropriate Federal supervisory agency' means, with respect to a company that controls an industrial bank--CommentsClose CommentsPermalink





`(A) the Corporation, in the case of a company that is an industrial bank holding company;CommentsClose CommentsPermalink





`(B) the Board of Governors of the Federal Reserve System, in the case of a company that is a bank holding company or that is subject to the Bank Holding Company Act of 1956 pursuant to section 8(a) of the International Banking Act of 1978;CommentsClose CommentsPermalink





`(C) the Office of Thrift Supervision, in the case of a company that is a savings and loan holding company; andCommentsClose CommentsPermalink





`(D) the Securities and Exchange Commission, in the case of a company that is regulated by the Commission pursuant to section 240.15c3-1(a)(7) of title 17 of the Code of Federal Regulations (as in effect on January 29, 2007).CommentsClose CommentsPermalink





`(2) RULE OF CONSTRUCTION- Under the definition of the term `appropriate Federal supervisory agency' in paragraph (1), more than 1 agency may be an appropriate Federal supervisory agency with respect to any given company that controls an industrial bank.'.CommentsClose CommentsPermalink





(c) Enforcement-CommentsClose CommentsPermalink





(1) Section 8(b) of the Federal Deposit Insurance Act (12 U.S.C. 1818(b)) is amended by adding at the end the following new paragraph:CommentsClose CommentsPermalink





`(11) INDUSTRIAL BANK HOLDING COMPANIES- This subsection and subsections (c) through (s) and subsection (u) of this section shall apply to any industrial bank holding company, and to any subsidiary (other than a bank) of an industrial bank holding company in the same manner as such subsections apply to State nonmember insured banks.'.CommentsClose CommentsPermalink





(2) Section 8(h)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(h)(2)) is amended by striking `(2) Any party to' and inserting `(2) Any party aggrieved by an order of any appropriate Federal supervisory agency under section 51 or any party to'.CommentsClose CommentsPermalink





(3) Section 8(i) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)) is amended by striking `or 39' each place such term appears and inserting `, 39, or 51'.CommentsClose CommentsPermalink





(d) Prompt Corrective Action- Section 38(f)(2)(H) of the Federal Deposit Insurance Act (12 U.S.C. 1831o(f)(2)(H)) is amended by--CommentsClose CommentsPermalink





(1) by striking `BANK HOLDING COMPANY- Prohibiting any bank' and inserting `HOLDING COMPANY-CommentsClose CommentsPermalink





`(i) BANK HOLDING COMPANY- Prohibiting any bank'; andCommentsClose CommentsPermalink





(2) by adding at the end the following new clause:CommentsClose CommentsPermalink





`(ii) INDUSTRIAL BANK HOLDING COMPANY- Prohibiting any industrial bank holding company having control of the insured depository institution from making any capital distribution without the prior approval of the Corporation.'.CommentsClose CommentsPermalink





(e) Technical and Conforming Amendments-CommentsClose CommentsPermalink





(1) Section 10(e)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1820(e)(2)) is amended by inserting `or section 51' after `subsection (b)(4)'.CommentsClose CommentsPermalink





(2) Section 1101(6) of the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401(6)) is amended--CommentsClose CommentsPermalink





(A) in subparagraph (B), by striking `and' after the semicolon;CommentsClose CommentsPermalink





(B) in subparagraph (C), by inserting `and' after the semicolon; andCommentsClose CommentsPermalink





(C) by inserting after paragraph (C) the following new paragraph:CommentsClose CommentsPermalink





`(D) any industrial bank holding company (as defined in section 3(w)(8) of the Federal Deposit Insurance Act);'.CommentsClose CommentsPermalink





(3) Section 115 of the Gramm-Leach-Bliley Act (12 U.S.C. 1820a) is amended--CommentsClose CommentsPermalink





(A) in subsection (a), by striking `or' after `bank holding company' and inserting `, industrial bank holding company, or';CommentsClose CommentsPermalink





(B) in subsection (d)--CommentsClose CommentsPermalink





(i) by redesignating paragraphs (5), (6), and (7) as paragraphs (6), (7), and (8), respectively; andCommentsClose CommentsPermalink





(ii) by inserting after paragraph (4) the following new paragraph:CommentsClose CommentsPermalink





`(5) INDUSTRIAL BANK HOLDING COMPANY- The term `industrial bank holding company' has the same meaning as in section 3(w)(8) of the Federal Deposit Insurance Act.'.CommentsClose CommentsPermalink





(4) Section 304(g)(1) of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803(g)(1)) is amended by inserting `, industrial bank holding company,' after `bank holding company'.CommentsClose CommentsPermalink

SEC. 3. REGULATIONS.

The Corporation shall prescribe such regulations as the Corporation determines to be appropriate to carry out the amendments made by this Act.CommentsClose CommentsPermalink

Passed the House of Representatives May 21, 2007.CommentsClose CommentsPermalink

Attest:CommentsClose CommentsPermalink

Clerk.