Bill Summary
The "Eliminating Corporate Shadow Banking Act" amends the Bank Holding Company Act of 1956 to regulate industrial bank holding companies and their activities. It defines terms, outlines requirements for registration and ownership, and addresses reporting, examinations, and capital requirements. It also discusses licensing requirements for insurance agents, limitations on control, and administrative provisions. The Board of Governors of the Federal Reserve System is responsible for prescribing regulations to carry out these amendments. Additionally, the act prohibits foreign banks from acquiring control of an industrial bank.
Possible Impacts
1. People working as insurance agents for industrial bank holding companies will be affected by the new licensing requirements outlined in the legislation.
2. Individuals who own or are considering investing in industrial bank holding companies will need to comply with the new registration and ownership requirements.
3. Foreign banks will no longer be able to acquire control of industrial banks, impacting their ability to expand their financial operations in the United States.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2839 Introduced in Senate (IS)]
<DOC>
116th CONGRESS
1st Session
S. 2839
To amend the Bank Holding Company Act of 1956 to regulate industrial
bank holding companies, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 12, 2019
Mr. Kennedy introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend the Bank Holding Company Act of 1956 to regulate industrial
bank holding companies, 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 ``Eliminating Corporate Shadow Banking
Act of 2019''.
SEC. 2. INDUSTRIAL BANK HOLDING COMPANY REGULATION.
(a) Definitions.--Section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841) is amended--
(1) in subsection (c)(2), by redesignating subparagraph (H)
as subsection (r), moving that subsection to appear after
subsection (q), and adjusting the margins accordingly;
(2) in subsection (r), as so redesignated--
(A) by striking ``(r) An industrial'' and inserting
the following:
``(r) Industrial Bank.--The term `industrial bank' means an
industrial''; and
(B) in the flush text following subparagraph (B),
by striking ``subparagraph'' and inserting
``subsection''; and
(3) by adding at the end the following:
``(s) Covered Industrial Bank Holding Company.--The term `covered
industrial bank holding company' means any company--
``(1) that, before October 1, 2019, controlled (as
determined by the Board pursuant to subsection (a)), directly
or indirectly, an industrial bank;
``(2) that did not acquire control of any other depository
institution after October 1, 2019;
``(3) with respect to which there is no change in control,
directly or indirectly, of any depository institution
subsidiary after October 1, 2019, that requires a registration
under this section or an application under section 7(j) or
18(c) of the Federal Deposit Insurance Act (12 U.S.C. 1817(j),
1828(c)), section 3 of this Act, or section 10 of the Home
Owners' Loan Act (12 U.S.C. 1467a); and
``(4) that was not--
``(A) a bank holding company;
``(B) a savings and loan holding company;
``(C) a company that is subject to this Act
pursuant to section 8(a) of the International Banking
Act of 1978 (12 U.S.C. 3106(a));
``(D) a holding company regulated by the Securities
and Exchange Commission pursuant to section 240.15c3-
1(a)(7) of title 17, Code of Federal Regulations, as in
effect on August 1, 2019; or
``(E) controlled by a company described in
subparagraph (A), (B), (C), or (D).
``(t) Capital Terms Relating to Covered Industrial Bank Holding
Companies.--
``(1) Adequately capitalized.--With respect to a covered
industrial bank holding company, the term `adequately
capitalized' means a level of capitalization which meets or
exceeds all applicable Federal regulatory capital standards.
``(2) Well capitalized.--With respect to a covered
industrial bank holding company, the term `well capitalized'
means a level of capitalization which meets or exceeds the
required capital levels for well capitalized covered industrial
bank holding companies established by the Board.''.
(b) Covered Industrial Bank Holding Company Registration and
Ownership.--The Bank Holding Company Act of 1956 (12 U.S.C. 1841 et
seq.) is amended by adding at the end the following:
``SEC. 15. INDUSTRIAL BANK HOLDING COMPANY REGULATION.
``(a) Acquisition of Industrial Bank Shares or Assets.--Section 3
of this Act (other than section 3(c)(3)(B)) shall apply to any covered
industrial bank holding company in the same manner as that section
applies to a company that is or would become a bank holding company,
except that for purposes of applying this subsection--
``(1) any reference to a `bank holding company' in such
section 3 shall be deemed to be a reference to a `covered
industrial bank holding company';
``(2) any reference to a `bank' in such section 3 shall be
deemed to be a reference to an `industrial bank';
``(3) 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 2019';
``(4) any reference to a `home State' in such section 3
shall be deemed to be a reference to--
``(A) with respect to a covered 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--
``(i) October 1, 2019; or
``(ii) the date on which the company
becomes a covered industrial bank holding
company under this section; and
``(B) with respect to an industrial bank, the home
State of the bank as determined under section 44(g) of
the Federal Deposit Insurance Act (12 U.S.C. 1831u(g));
``(5) any reference to a `host State' in such section 3
shall be deemed to be a reference to--
``(A) with respect to a covered 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; and
``(B) with respect to an industrial bank, the host
State of the bank as determined under section 44(g) of
the Federal Deposit Insurance Act (12 U.S.C. 1831u(g));
``(6) 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, a covered industrial bank
holding company whose home State is another State; and
``(7) 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.
``(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.
``(c) Registration.--
``(1) In general.--Each covered industrial bank holding
company shall register with the Board on forms prescribed by
the Board before the end of the 180-day period beginning on the
later of--
``(A) the date the company becomes a covered
industrial bank holding company; or
``(B) the date of enactment of this section.
``(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
covered industrial bank holding company and subsidiaries of the
covered industrial bank holding company, and other factors
(including information described in subsection (d)(1)(C)), as
the Board may determine to be appropriate to carry out the
purposes of this section.
``(3) Extension of time for submitting complete
information.--Upon application by a covered industrial bank
holding company and subject to such requirements, factors, and
evidence as the Board may require, the Board may extend the
period described in paragraph (1) within which the covered
industrial bank company shall register and file the requisite
information.
``(d) Reports and Examinations.--
``(1) Reports.--
``(A) Reports required.--Each covered industrial
bank holding company and each subsidiary of a covered
industrial bank holding company, other than an
industrial bank, shall file with the Board such reports
as may be required by the Board.
``(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 Board may
prescribe.
``(C) Information.--Each report filed under
subparagraph (A) shall contain such information as the
Board may require concerning--
``(i) the operations of the covered
industrial bank holding company and the
subsidiaries of the covered industrial bank
holding company;
``(ii) the financial condition of the
covered industrial bank holding company and the
subsidiaries of the covered industrial bank
holding company, together with information on
systems maintained within the covered
industrial bank holding company or within any
subsidiary of the covered industrial bank
holding company for monitoring and controlling
financial and operating risks, and transactions
with insured depository institution
subsidiaries of the covered industrial bank
holding company;
``(iii) compliance by the covered
industrial bank holding company and the
subsidiaries of the covered industrial bank
holding company with all applicable Federal and
State laws; and
``(iv) such other information as the Board
may require.
``(D) Acceptance of existing reports.--For purposes
of this paragraph, the Board may accept reports that a
covered industrial bank holding company or any
subsidiary of a covered industrial bank holding company
has provided or has been required to provide to any
other Federal or State supervisor or to any appropriate
self-regulatory organization.
``(2) Examinations.--
``(A) In general.--Each covered industrial bank
holding company and each subsidiary of each covered
industrial bank holding company (other than an
industrial bank) shall be subject to such examinations
by the Board as the Board may prescribe for purposes of
this section.
``(B) Furnishing reports to other agencies.--
Examination and other reports made or received under
this section may be furnished by the Board to any other
appropriate Federal agency or any appropriate State
bank supervisor or other State financial supervisory
agency.
``(C) Use of reports from other agencies.--The
Board may use, for 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 covered industrial bank holding company
or subsidiary of the covered industrial bank holding
company, to the extent the Board may determine such use
to be feasible for such purposes.
``(3) Capital.--
``(A) In general.--The Board 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 the Federal Deposit Insurance Act (12 U.S.C.
1831v)) of any depository institution that is
controlled by a covered industrial bank holding company
that--
``(i) is not a depository institution; and
``(ii) is--
``(I) in compliance with the
applicable capital requirements of the
appropriate Federal or State
supervisory agency of the affiliate
(including the Securities and Exchange
Commission or State insurance
authority);
``(II) properly registered as an
investment adviser--
``(aa) under the Investment
Advisers Act of 1940 (15 U.S.C.
80b-1 et seq.); or
``(bb) with any State; or
``(III) is licensed as an insurance
agent with the appropriate State
insurance authority.
``(B) Rule of construction.--Subparagraph (A) shall
not be construed as preventing the Board from imposing
capital or capital adequacy rules, guidelines,
standards, or requirements with respect to--
``(i) activities of a registered investment
adviser other than with respect to investment
advisory activities or activities incidental to
investment advisory activities; or
``(ii) activities of a licensed insurance
agent other than insurance agency activities or
activities incidental to insurance agency
activities.
``(e) Access to Information.--
``(1) Information provided by board.--Any confidential
supervisory information, including examination or other
reports, pertaining to a covered industrial bank holding
company furnished by the Board to any other Federal agency or
any appropriate State supervisory agency shall remain
confidential unless the Board, in writing, otherwise consents.
``(2) Deference to depository institution examinations.--
Any appropriate Federal supervisory agency of a covered
industrial bank holding company shall, to the fullest extent
possible, rely on examination reports made by the appropriate
Federal banking agency and the appropriate State bank
supervisor relating to any depository institution subsidiary of
the covered industrial bank holding company in lieu of a direct
examination.
``(3) Information to be provided to board.--
``(A) Request to agency.--Upon request by the
Board, an appropriate Federal supervisory agency may
provide to the Board information regarding the
condition of an industrial bank, any covered industrial
bank holding company of the industrial bank, or any
other affiliate of any such covered industrial bank
holding company that is necessary to assess risk to the
industrial bank.
``(B) Availability from holding company directly.--
Notwithstanding section 45 of the Federal Deposit
Insurance Act (12 U.S.C. 1825), section 115 of the
Gramm-Leach-Bliley Act (12 U.S.C. 1820a), or any other
provision of law (including any regulation), if the
information requested under subparagraph (A) is not
provided to the Board, and the information is necessary
to assess risk to the industrial bank, the Board may
require the covered industrial bank holding company or
affiliate thereof referred to in such subparagraph with
respect to such industrial bank to provide such
information to the Board.
``(4) Examinations by board.--
``(A) In general.--Subject to subparagraph (B) and
notwithstanding section 45 of the Federal Deposit
Insurance Act (12 U.S.C. 1831v), section 115 of the
Gramm-Leach-Bliley Act (12 U.S.C. 1820a), or any other
provision of law (including any regulation), no law
shall be construed as preventing the Board from
examining an affiliate of an industrial bank 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
Board finds such examination necessary to determine the
condition of an industrial bank.
``(B) Functionally regulated affiliates.--Before
the Board may examine any affiliate of an industrial
bank that is a broker, a dealer, an investment company,
an investment advisor, or an entity that is subject to
consolidated supervision by the Securities and Exchange
Commission, other than a depository institution, the
Board--
``(i) shall request the Commission to
provide the information that the Board is
seeking to obtain through examination; and
``(ii) may proceed with the examination
only if the requested information is not
provided by the Commission in a timely manner.
``(f) Limitation on Control.--
``(1) In general.--Except as provided in paragraph (3) or
(4), no industrial bank may be controlled, directly or
indirectly, by a commercial firm.
``(2) Commercial firm defined.--For purposes of this
section, the term `commercial firm' means any entity that
derives any amount of revenue from activities that are not
financial in nature, or incidental to a financial activity as
defined in section 4(k).
``(3) Pre-2019 exclusions for certain industrial banks.--
``(A) Grandfathered institutions.--Paragraph (1)
shall not apply with respect to any industrial bank--
``(i) that became an insured depository
institution before October 1, 2019, or pursuant
to an application for deposit insurance that
was approved by the Federal Deposit Insurance
Corporation before such date; and
``(ii) with respect to which there is no
change in control, directly or indirectly, of
the bank after September 30, 2019, that
requires a registration under this section or
an application under section 7(j) or 18(c) of
the Federal Deposit Insurance Act (12 U.S.C.
1817(j), 1828(c)), section 3 of this Act, or
section 10 of the Home Owners' Loan Act (12
U.S.C. 1467a), except a direct or indirect
change of control in which--
``(I) immediately prior to such
change in control the acquiring company
is a bank holding company, a financial
holding company, a savings and loan
holding company, or a holding company
regulated by the Securities and
Exchange Commission pursuant to section
240.15c3-1(a)(7) of title 17, Code of
Federal Regulations, as in effect on
August 1, 2019;
``(II) the resulting holding
company is a bank holding company, a
financial holding company, a savings
and loan holding company, or a holding
company regulated by the Securities and
Exchange Commission pursuant to section
240.15c3-1(a)(7) of title 17, Code of
Federal Regulations, as in effect on
October 1, 2019; and
``(III) the resulting ultimate
holding company is subject to
consolidated supervision by the Board
or a holding company regulated by the
Securities and Exchange Commission
pursuant to section 240.15c3-1(a)(7) of
title 17, Code of Federal Regulations,
as in effect on October 1, 2019.
``(B) Corporate reorganizations permitted.--The
acquisition of direct or indirect control of an
industrial bank referred to in subparagraph (A)(ii)
shall not be treated as a `change in control' for
purposes of that subparagraph if--
``(i) the company acquiring control is
itself directly or indirectly controlled by a
company that was an affiliate of the industrial
bank on the date referred to in that
subparagraph, and remains an affiliate at all
times after that date; and
``(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 that
subparagraph.
``(4) Pre-2019 exclusions for commercial firms.--
``(A) Grandfathered commercial firms.--Paragraph
(1) shall not apply to any commercial firm--
``(i) that became a covered industrial bank
holding company by virtue of acquiring control
of an industrial bank before October 1, 2019;
``(ii) that did not acquire control of any
other depository institution after October 1,
2019;
``(iii) with respect to which there is no
change in control, directly or indirectly, of
any depository institution subsidiary after
October 1, 2019, that requires a registration
under this section or an application under
section 7(j) or 18(c) of the Federal Deposit
Insurance Act (12 U.S.C. 1817(j), 1828(c)),
section 3 of this Act, or section 10 of the
Home Owners' Loan Act (12 U.S.C. 1467a); and
``(iv) each industrial bank subsidiary of
which remains in compliance with the
limitations contained in subparagraph (B).
``(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) if the industrial bank--
``(i) engages only in activities in which
the industrial bank was engaged on October 1,
2019; and
``(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 October 1, 2019.
``(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 that subparagraph if--
``(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 that
subparagraph, and remains an affiliate at all
times after that date; and
``(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 that subparagraph.
``(g) Procedures and Timing for Termination of Activities or
Divestiture.--
``(1) Transition provision.--
``(A) In general.--Any covered industrial bank
holding company that fails to comply with the
provisions of subsection (f) shall divest its ownership
or control of each industrial bank subsidiary of the
covered industrial bank holding company not later than
the end of the 2-year period beginning on the first
date that the covered industrial bank holding company
ceased to comply with subsection (f).
``(B) Extension of time period.--
``(i) In general.--Upon application by a
covered industrial bank holding company, the
appropriate Federal supervisory agency of the
covered industrial bank holding company may
extend the 2-year period referred to in
subparagraph (A) with respect to the covered
industrial bank holding company for not more
than 1 year if, in the judgment of the Federal
supervisory agency, the extension would not be
detrimental to the public interest.
``(ii) Factors.--In making any decision to
grant an extension under clause (i) to a
covered industrial bank holding company, the
appropriate Federal supervisory agency of the
covered industrial bank holding company shall
consider whether--
``(I) the covered industrial bank
holding company has made a good faith
effort to divest those interests; and
``(II) such extension is necessary
to avert substantial loss to the
covered industrial bank holding
company.
``(2) Conditions before divestiture.--During the 2-year
period referred to in paragraph (1)(A) with respect to any
covered industrial bank holding company and any extension of
that period, the appropriate Federal supervisory agency may
impose any conditions or restrictions on the covered industrial
bank holding company or any subsidiary of the covered
industrial bank holding company (other than a bank), including
restricting or prohibiting transactions between the covered
industrial bank holding company or subsidiary and any
depository institution subsidiary of the covered industrial
bank holding company, as are appropriate under the
circumstances.
``(3) Termination of activities or divestiture of nonbank
subsidiaries constituting serious risk.--
``(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
covered industrial bank holding company of any activity
or of ownership or control of any nonbank subsidiary of
the covered industrial bank 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 covered industrial bank holding
company and is inconsistent with sound banking
principles or with the purposes of this section, at the
election of the covered industrial bank holding
company--
``(i) order the covered industrial bank
holding company or any nonbank subsidiary of
the covered industrial bank holding company,
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 those 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 the covered industrial bank
holding company or nonbank subsidiary of the
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 covered industrial bank
holding company; or
``(ii) order the covered industrial bank
holding company, after due notice and
opportunity for hearing, and after consultation
with the appropriate State bank supervisor for
the industrial bank controlled by the covered
industrial bank holding company, 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 the covered industrial bank
holding company.
``(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 covered industrial bank holding company,
and the distributing covered industrial bank holding
company shall not make any charge to any shareholder in
connection with that distribution.
``(4) Holding company responsibility.--
``(A) Source of strength.--Notwithstanding section
45 of the Federal Deposit Insurance Act (12 U.S.C.
1831v), a covered industrial bank holding company--
``(i) shall serve as a source of financial
and managerial strength to the subsidiary banks
of the covered industrial bank holding company
in the same manner as required under section
38A of the Federal Deposit Insurance Act (12
U.S.C. 1831o-1); and
``(ii) shall not conduct the operations of
the covered industrial bank holding company in
an unsafe or unsound manner.
``(B) Implementation.--The appropriate Federal
supervisory agency of a covered industrial bank holding
company shall implement the requirements under
subparagraph (A) with respect to that industrial bank
holding company.
``(h) Foreign Bank Ownership.--After October 1, 2019, no foreign
bank may acquire, directly or indirectly, control of an industrial
bank.
``(i) Administrative Provisions.--
``(1) Agent for service of process.--The Board may require
any covered industrial bank holding company, or persons
connected with the covered industrial bank holding company if
it is not a corporation, to execute and file a prescribed form
of irrevocable appointment of agent for service of process.
``(2) Release from registration.--The Board may at any
time, upon a motion by the Board or upon application, release a
registered covered industrial bank holding company from any
registration previously made by the covered industrial bank
holding company, if the Board determines that the covered
industrial bank holding company no longer controls any
industrial bank.
``(j) Definition.--In this section:
``(1) Appropriate federal supervisory agency.--The term
`appropriate Federal supervisory agency' means, with respect to
a company that controls an industrial bank--
``(A) the Board, in the case of a company that is a
bank holding company, a company that is a covered
industrial bank holding company, a company that is a
savings and loan holding company, or a company that is
subject to this Act pursuant to section 8(a) of the
International Banking Act of 1978 (12 U.S.C. 3106(a));
or
``(B) 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, Code of Federal Regulations, as in effect on
August 1, 2019.
``(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.''.
(c) Enforcement.--Section 8 of the Federal Deposit Insurance Act
(12 U.S.C. 1818) is amended--
(1) in subsection (b), by adding at the end the following:
``(11) Industrial bank holding companies.--This subsection
and subsections (c) through (s) and subsection (u) of this
section shall apply to any covered industrial bank holding
company and to any subsidiary (other than a depository
institution) of a covered industrial bank holding company in
the same manner as those subsections apply to State nonmember
insured banks.'';
(2) in subsection (h)(2), by striking ``Any party to'' and
inserting ``Any party aggrieved by an order of any appropriate
Federal supervisory agency under section 15 of the Bank Holding
Company Act of 1956 or any party to''; and
(3) in subsection (i), by striking ``or 39'' each place
that term appears and inserting ``, 39, or section 15 of the
Bank Holding Company Act of 1956''.
(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--
(1) in the subparagraph heading, by inserting ``or
industrial bank holding company'' after ``company'';
(2) by striking ``Prohibiting any bank'' and inserting the
following:
``(i) Bank holding company.--Prohibiting
any bank''; and
(3) by adding at the end the following:
``(ii) Industrial bank holding company.--
Prohibiting any covered industrial bank holding
company having control of the insured
depository institution from making any capital
distribution without the prior approval of the
Board.''.
(e) Technical and Conforming Amendments.--
(1) Bank holding company act of 1956.--Section 14(a)(2) of
the Bank Holding Company Act of 1956 (12 U.S.C. 1852(a)(2)) is
amended--
(A) in subparagraph (E), by striking ``and'' at the
end; and
(B) by inserting after subparagraph (F) the
following:
``(G) a covered industrial bank holding company;
and''.
(2) Federal deposit insurance act.--Section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813) is amended--
(A) in subsection (a), by adding at the end the
following:
``(4) Industrial bank.--The term `industrial bank' has the
meaning given the term in section 2 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841).'';
(B) in subsection (q)(3)--
(i) in subparagraph (F), by striking
``and'' at the end;
(ii) in subparagraph (G), by striking the
period and inserting ``; and''; and
(iii) by inserting after subparagraph (G)
the following:
``(H) any covered industrial bank holding company,
and any subsidiary of an industrial bank holding
company (other than a depository institution).''; and
(C) in subsection (w)--
(i) in paragraph (1), by striking ``or a
savings and loan holding company'' and
inserting ``, a savings and loan holding
company, or a covered industrial bank holding
company''; and
(ii) by adding at the end the following:
``(8) Covered industrial bank holding company.--The term
`covered industrial bank holding company' has the meaning given
the term in section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841).''.
(3) Gramm-leach bliley act.--Section 115 of the Gramm-
Leach-Bliley Act (12 U.S.C. 1820a) is amended--
(A) in subsection (a), by striking ``or'' after
``bank holding company'' and inserting ``, covered
industrial bank holding company, or''; and
(B) in subsection (d)--
(i) by redesignating paragraphs (5), (6),
and (7) as paragraphs (6), (7), and (8),
respectively; and
(ii) by inserting after paragraph (4) the
following:
``(5) Covered industrial bank holding company.--The term
`covered industrial bank holding company' has the meaning given
the term in section 2 of the Bank Holding Company Act of 1956
(12 U.S.C. 1841).''.
(4) Home mortgage disclosure act of 1975.--Section
304(g)(1) of the Home Mortgage Disclosure Act of 1975 (12
U.S.C. 2803(g)(1)) is amended by inserting ``, covered
industrial bank holding company (as defined in section 2 of the
Bank Holding Company Act of 1956 (12 U.S.C. 1841),'' after
``bank holding company''.
(5) Right to financial privacy act of 1978.--Section
1101(6) of the Right to Financial Privacy Act of 1978 (12
U.S.C. 3401(6)) is amended--
(A) in subparagraph (A), by striking ``and'' at the
end; and
(B) by adding at the end the following:
``(C) any covered industrial bank holding company
(as defined in section 2 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841)); and''.
SEC. 3. REGULATIONS.
The Board of Governors of the Federal Reserve System shall
prescribe such regulations as the Board determines to be appropriate to
carry out the amendments made by this Act.
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