CRA Restoration Act of 1999

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``CRA Restoration Act of 1999''.

SEC. 2. COMMUNITY REINVESTMENT AMENDMENTS.

    (a) Financial Holding Companies.--
            (1) In general.--Section 4(l)(1) of the Bank Holding 
        Company Act of 1956 (12 U.S.C. 1843(l)(1)), as added by the 
        Gramm-Leach-Bliley Act, is amended--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by redesignating subparagraph (C) as 
                subparagraph (D);
                    (C) by inserting after subparagraph (B) the 
                following new subparagraph:
                    ``(C) All of the subsidiary depository institutions 
                of the bank holding company have achieved a rating of 
                `satisfactory record of meeting community credit 
                needs', or better, at the most recent examination of 
                each such institution; and''; and
                    (D) in subparagraph (D) (as so redesignated by 
                subparagraph (B) of this paragraph), by striking ``and 
                (B)'' and inserting ``, (B), and (C)''.
            (2) Technical and conforming amendments.--
                    (A) Section 4(l)(2) of the Bank Holding Company Act 
                of 1956 (12 U.S.C. 1843(l)(2)) (as added by the Gramm-
                Leach-Bliley Act) is amended to read as follows:
            ``(2) Limited exclusions from community needs requirements 
        for newly acquired depository institutions.--Any depository 
        institution acquired by a bank holding company during the 12-
        month period preceding the submission of a notice under 
        paragraph (1)(D) and any depository institution acquired after 
        the submission of such notice may be excluded for purposes of 
        paragraph (1)(C) during the 12-month period beginning on the 
        date of such acquisition if--
                    ``(A) the bank holding company has submitted an 
                affirmative plan to the appropriate Federal banking 
                agency to take such action as may be necessary in order 
                for such institution to achieve a rating of 
                `satisfactory record of meeting community credit 
                needs', or better, at the next examination of the 
                institution; and
                    ``(B) the plan has been accepted by such agency.''.
                    (B) Section 4(m) of the Bank Holding Company Act of 
                1956 (12 U.S.C. 1843(m)), as added by the Gramm-Leach-
                Bliley Act, is amended by striking paragraphs (3) and 
                (4) and inserting the following new paragraphs:
            ``(3) Authority to impose limitations.--Until the 
        conditions described in a notice to a financial holding company 
        under paragraph (1) are corrected--
                    ``(A) the Board may impose such limitations on the 
                conduct or activities of the company or any affiliate 
                of the company as the Board determines to be 
                appropriate under the circumstances; and
                    ``(B) the appropriate Federal banking agency may 
                impose such limitations on the conduct or activities of 
                an affiliated depository institution or subsidiary of a 
                depository institution as the appropriate Federal 
                banking agency determines to be appropriate under the 
                circumstances.
            ``(4) Failure to correct.--If, after receiving a notice 
        under paragraph (1), a financial holding company does not--
                    ``(A) execute and implement an agreement in 
                accordance with paragraph (2);
                    ``(B) comply with any limitations imposed under 
                paragraph (3);
                    ``(C) in the case of a notice of failure to comply 
                with subsection (l)(1)(A), restore each depository 
                institution subsidiary to well capitalized status 
                before the end of the 180-day period beginning on the 
                date such notice is received by the company (or such 
                other period permitted by the Board); or
                    ``(D) in the case of a notice of failure to comply 
                with subparagraph (B) or (C) of subsection (l)(1), 
                restore compliance with any such subparagraph by the 
                date the next examination of the depository institution 
                subsidiary is completed or by the end of such other 
                period as the Board determines to be appropriate,
        the Board may require such company, under such terms and 
        conditions as may be imposed by the Board and subject to such 
        extension of time as may be granted in the Board's discretion, 
        to divest control of any depository institution subsidiary or, 
        at the election of the financial holding company, instead to 
        cease to engage in any activity conducted by such company or 
        its subsidiaries pursuant to this section.''.
                    (C) Section 5(a) of the Bank Holding Company Act of 
                1956 (12 U.S.C. 1844(a)), as amended by the Gramm-
                Leach-Bliley Act, is amended by striking ``4(l)(1)(C)'' 
                and inserting ``4(l)(1)(D)''.
                    (D) Section 8(c) of the International Banking Act 
                of 1978 (12 U.S.C. 3106(c)), as amended by the Gramm-
                Leach-Bliley Act, is amended by striking ``4(l)(1)(C)'' 
                and inserting ``4(l)(1)(D)''.
                    (E) Section 804 of the Community Reinvestment Act 
                of 1977 (12 U.S.C. 2903) is amended by striking 
                subsection (c), as added by the Gramm-Leach-Bliley Act.
    (b) Financial Subsidiaries.--
            (1) In general.--Section 5136A(a)(2)(C) of the Revised 
        Statutes of the United States (as added by the Gramm-Leach-
        Bliley Act) is amended to read as follows:
                    ``(C) the national bank and each insured depository 
                institution affiliate of the national bank--
                            ``(i) are well capitalized;
                            ``(ii) are well managed: and
                            ``(iii) have achieved a rating of 
                        `satisfactory record of meeting community 
                        credit needs', or better, at the most recent 
                        examination of each such bank or 
                        institution;''.
            (2) Technical and conforming amendment.--Section 5136A(a) 
        of the Revised Statutes of the United States (as added by the 
        Gramm-Leach-Bliley Act) is amended by adding at the end the 
        following new paragraph:
            ``(8) Limited exclusions from community needs requirements 
        for newly affiliated depository institutions.--Any depository 
        institution which becomes an affiliate of a national bank 
        during the 12-month period preceding the date of an approval by 
        the Comptroller of the Currency under paragraph (1)(F) for such 
        bank, and any depository institution which becomes an affiliate 
        of the national bank after such date, may be excluded for 
        purposes of paragraph (1)(C)(iii) during the 12-month period 
        beginning on the date of such affiliation if--
                    ``(A) the national bank or such depository 
                institution has submitted an affirmative plan to the 
                appropriate Federal banking agency to take such action 
                as may be necessary in order for such institution to 
                achieve a rating of `satisfactory record of meeting 
                community credit needs', or better, at the next 
                examination of the institution; and
                    ``(B) the plan has been accepted by such agency.''.
    (c) Repeal of CRA Sunshine Requirement.--The Federal Deposit 
Insurance Act (12 U.S.C. 1811 et seq.) is amended by striking section 
48 (as added by the Gramm-Leach-Bliley Act).
    (d) Repeal of Small Bank Stretch-Out.--The Community Reinvestment 
Act of 1977 (12 U.S.C. 2901 et seq.) is amended by striking section 809 
(as added by the Gramm-Leach-Bliley Act).
    (e) Gramm-Leach-Bliley Act.--The Gramm-Leach-Bliley Act is amended 
by striking sections 713, 714, and 715.

Summary: Permits the exclusion from community needs requirements for 12 months of certain newly acquired depository institutions, if the bank holding company submits to the appropriate Federal banking agency, and the agency has approved, an affirmative plan for achieving a satisfactory record of meeting community credit needs, or better, at the institution's next examination. Amends the Revised Statutes of the United States to declare that a national bank may control, or hold an interest in a financial subsidiary only if such bank and each of its insured depository institution affiliates has achieved a rating of satisfactory record of meeting community credit needs, or better, at its most recent examination. Permits the exclusion from community needs requirements for 12 months of certain newly affiliated depository institutions, if the national bank or depository institution submits to the appropriate Federal banking agency, and the agency has approved, an affirmative plan for achieving a satisfactory record of meeting community credit needs, or better, at the institution's next examination. Amends the Federal Deposit Insurance Act to repeal the mandate for full public disclosure and an annual status report of any agreement entered into between an insured depository institution, its affiliate, and any non-governmental party, pursuant to or in connection with the Community Reinvestment Act of 19977 (CRA), involving funds or other depository institution resources . Amends CRA to repeal the graduated schedule of decreasing CRA examinations of certain small-sized banks commensurate with their record of meeting CRA community credit needs. Amends the Gramm-Leach-Bliley Act to repeal: (1) the directive to the Board of Governors of the Federal Reserve System to conduct a comprehensive study of the CRA and report to Congress and the public on CRA default, delinquency, and profitability data. And (2) the requirement that the Secretary of the Treasury study and report to Congress on the extent to which adequate services are being provided as intended by the CRA.