I

104TH CONGRESS

1ST SESSION H. R. 17

To establish the Federal Bank Agency, to abolish the positions of the Comptroller of the Currency and Director of the Office of Thrift Supervision,

to consolidate and reform the regulation of insured depository institutions, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 4, 1995

Mr. LEACH introduced the following bill; which was referred to the Committee

on Banking and Financial Services

A BILL

To establish the Federal Bank Agency, to abolish the positions of the Comptroller of the Currency and Director

of the Office of Thrift Supervision, to consolidate and

reform the regulation of insured depository institutions,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Bank Regulatory Consolidation and Reform Act of

6 1995’’.

7 (b) TABLE OF CONTENTS.—
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Sec. 1. Short title; table of contents.

TITLE I—FEDERAL BANK AGENCY

Sec. 101. Establishment of the Agency.

Sec. 102. Definitions.

Sec. 103. Administrator of the Federal Bank Agency.

Sec. 104. Authority of the Administrator.

Sec. 105. Personnel.

Sec. 106. Regulations and orders.

Sec. 107. Funding.

TITLE II—INTERIM PROVISIONS; TRANSFER OF FUNCTIONS,

PERSONNEL, AND PROPERTY

Sec. 201. Interim provisions for the Federal Bank Agency.

Sec. 202. Office of Thrift Supervision abolished.

Sec. 203. Office of the Comptroller of the Currency abolished.

Sec. 204. References in Federal law to Federal banking agencies.

TITLE III—REGULATORY AND SUPERVISORY RESPONSIBILITY

Sec. 301. Transfer of powers and duties.

Sec. 302. Appropriate Federal banking agency.

TITLE IV—FEDERAL DEPOSIT INSURANCE CORPORATION

AMENDMENTS

Sec. 401. Amendments to the Federal Deposit Insurance Act.

TITLE V—REORGANIZATION OF BOARDS OF DIRECTORS

Sec. 501. Federal Deposit Insurance Corporation Board of Directors.

Sec. 502. Amendments to the Federal Reserve Act.

Sec. 503. Amendment to the Bank Holding Company Act of 1956.

Sec. 504. Amendment to the Bank Holding Company Amendments Act of

1970.

TITLE VI—REGULATORY UNIFORMITY

Sec. 601. Amendments relating to the Financial Institutions Examination

Council.

TITLE VII—CREDIT UNIONS

Sec. 701. Comparable supervisory standards for credit unions.
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1 TITLE I—FEDERAL BANK

2 AGENCY

3 SEC. 101. ESTABLISHMENT OF THE AGENCY.

4 Effective January 1, 1996, there shall be established

5 the Federal Bank Agency which shall be an independent

6 establishment.

7 SEC. 102. DEFINITIONS.

8 The following definitions shall apply for purposes of

9 this title:

10 (1) The term ‘‘Administrator’’ means the Ad11 ministrator of the Federal Bank Agency.

12 (2) The term ‘‘Agency’’ means the Federal

13 Bank Agency.

14 (3) The term ‘‘Secretary’’ means the Secretary

15 of the Treasury.

16 SEC. 103. ADMINISTRATOR OF THE FEDERAL BANK

17 AGENCY.

18 (a) IN GENERAL.—The Agency shall have an Admin19 istrator who shall be the head of the Agency.

20 (b) APPOINTMENT.—The Administrator shall be ap21 pointed by the President, by and with the advice and con22 sent of the Senate, from among individuals who are

23 citizens of the United States.

24 (c) TERM.—The Administrator shall be appointed for

25 a term of 5 years.
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1 (d) VACANCY.—A vacancy in the position of Adminis2 trator which occurs before expiration of the term for which

3 an Administrator was appointed shall be filled in the man4 ner established in subsection (b), and the Administrator

5 appointed to fill such vacancy shall be appointed only for

6 the remainder of said term.

7 (e) SERVICE AFTER END OF TERM.—An individual

8 may serve as Administrator after the expiration of the

9 term for which appointed until a successor Administrator

10 has been appointed.

11 (f) DEPUTY ADMINISTRATORS.—

12 (1) DEPUTY ADMINISTRATOR OF THE AGEN13 CY.—

14 (A) IN GENERAL.—The Agency shall have

15 a Deputy Administrator who shall be appointed

16 by the President, by and with the advice and

17 consent of the Senate.

18 (B) DUTIES AND POWERS.—The Deputy

19 Administrator shall—

20 (i) perform such duties and exercise

21 such powers as the Administrator may pre22 scribe; and

23 (ii) exercise the duties and powers of

24 the Administrator when the Administrator
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1 is absent or unable to serve or when the

2 position of the Administrator is vacant.

3 (2) DEPUTY ADMINISTRATOR FOR SAVINGS AS4 SOCIATIONS.—

5 (A) IN GENERAL.—The Agency shall have

6 a Deputy Administrator for Savings Associa7 tions who shall be appointed by the President,

8 by and with the advice and consent of the Sen9 ate.

10 (B) DUTIES AND POWERS.—The Deputy

11 Administrator for Savings Associations shall—

12 (i) perform such duties and exercise

13 such powers as the Administrator may pre14 scribe; and

15 (ii) perform the functions which are

16 transferred to the agency from the Direc17 tor of the Office of Thrift Supervision until

18 the Administrator provides otherwise.

19 (g) EFFECTIVE DATE.—This section shall take effect

20 on January 1, 1996.

21 SEC. 104. AUTHORITY OF THE ADMINISTRATOR.

22 (a) DELEGATION OF AUTHORITY.—The Adminis23 trator may delegate to any employee, representative, or

24 agent of the Agency any authority of the Administrator.
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1 (b) EFFECTIVE DATE.—This section shall take effect

2 on January 1, 1996.

3 SEC. 105. PERSONNEL.

4 (a) IN GENERAL.—The Administrator shall fix the

5 number and compensation of, and appoint and direct, all

6 employees of the Agency.

7 (b) EFFECTIVE DATE.—This section shall take effect

8 on January 1, 1997.

9 SEC. 106. REGULATIONS AND ORDERS.

10 The Administrator may prescribe such regulations

11 and issue such orders as the Administrator may determine

12 to be necessary or appropriate for carrying out any law

13 within the Administrator’s jurisdiction.

14 SEC. 107. FUNDING.

15 (a) AUTHORITY TO IMPOSE AND COLLECT ASSESS16 MENTS, FEES, AND OTHER CHARGES.—

17 (1) IN GENERAL.—The Administrator may im18 pose and collect such assessments, fees, and other

19 charges on any institution or entity (including any

20 affiliates of any such institution or entity) for which

21 the Administrator is the appropriate Federal bank22 ing agency, as defined in section 3(q)(1) of the Fed23 eral Deposit Insurance Act, as the Administrator de24 termines to be necessary or appropriate to carry out

25 the responsibilities of the Agency.
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1 (2) NO NET COST TO GOVERNMENT.—The

2 amount of any assessment, fee, or other charge shall

3 be not less than the amount necessary to meet the

4 full cost to the Federal Government of the service

5 provided by the Agency.

6 (b) USE OF FUNDS.—The Administrator may use the

7 funds obtained through assessments, fees, and other

8 charges imposed pursuant to this title to pay the full cost

9 to the Federal Government of the services provided by the

10 Agency.

11 (c) AGENCY NOT SUBJECT TO APPORTIONMENT OF

12 FUNDS.—Notwithstanding any other provision of law,

13 amounts received by the Agency pursuant to any assess14 ment, fee, or other charge imposed under this Act or any

15 other provision of law and any other money received by

16 the Agency shall not be subject to apportionment for the

17 purpose of chapter 15 of title 31, United States Code, or

18 under any other authority.

19 (d) TECHNICAL AND CONFORMING AMENDMENT RE20 LATING TO SEQUESTRATION.—Paragraph (1) of section

21 255(g) of the Balanced Budget and Emergency Deficit

22 Control Act of 1985 is amended—

23 (1) by striking the items relating to the Comp24 troller of the Currency and the Director of the Of25 fice of Thrift Supervision; and
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1 (2) by inserting after the item relating to

2 the Farm Credit System Financial Assistance Cor3 poration, interest payment (20–1850–0–1–351) the

4 following new item:

5 ‘‘Federal Bank Agency;’’.

6 (e) EFFECTIVE DATE.—This section and the amend7 ments made by this section shall take effect on Jan8 uary 1, 1997.

9 TITLE II—INTERIM PROVISIONS;

10 TRANSFER OF FUNCTIONS,

11 PERSONNEL, AND PROPERTY

12 SEC. 201. INTERIM PROVISIONS FOR THE FEDERAL BANK

13 AGENCY.

14 (a) INTERIM AUTHORITY OF THE ADMINISTRATOR.—

15 Prior to the date upon which the functions of the Office

16 of the Comptroller of the Currency and the Office of

17 Thrift Supervision are transferred to the Administrator

18 pursuant to this Act, the Administrator shall—

19 (1) consult and cooperate with the Director of

20 the Office of Thrift Supervision and the Comptroller

21 of the Currency to facilitate the orderly transfer of

22 functions to the Office; and

23 (2) take such actions as may be necessary to

24 provide for the establishment of the Agency and for

25 the orderly implementation of this title.
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1 (b) INTERIM STAFF.—Prior to the date upon which

2 the Office of the Comptroller of the Currency and the Of3 fice of Thrift Supervision are abolished, each such Office

4 shall detail to the Agency such personnel as the Adminis5 trator deems appropriate to assist the Administrator in

6 carrying out the duties of title I.

7 (c) INTERIM ADMINISTRATIVE SERVICES.—The Sec8 retary may provide all administrative services necessary

9 to support the Agency prior to the date upon which the

10 Office of the Comptroller of the Currency and the Office

11 of Thrift Supervision are abolished, and obtain reimburse12 ment for the cost of such services pursuant to subsection

13 (d).

14 (d) INTERIM FUNDING.—Prior to the date upon

15 which the Office of the Comptroller of the Currency and

16 the Office of Thrift Supervision are abolished, each such

17 Office shall pay to the Secretary one-half of the total

18 amount determined by the Secretary to be necessary to

19 fund all direct and indirect salary and administrative ex20 penses of the Agency, including the salary of the Adminis21 trator, through January 1, 1997, from the funds obtained

22 by such Offices through assessments, fees, and other

23 charges which they are authorized to impose by law. The

24 Secretary may credit to an appropriation and spend

25 amounts received pursuant to this subsection. Upon the
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1 appointment of the Administrator, the amounts paid to

2 the Secretary under this subsection shall be paid by the

3 Secretary to the Administrator.

4 (e) INTERIM AUTHORITY OF THE SECRETARY.—The

5 Secretary is authorized to perform the functions of the

6 Administrator under this section until the Administrator

7 is appointed.

8 (f) MERGER OF TRANSFERRED EMPLOYEES.—The

9 Administrator shall, to the maximum extent practicable,

10 merge and consolidate the work force structures of the Of11 fice of the Comptroller of the Currency and the Office of

12 Thrift Supervision. In merging the work forces, the Ad13 ministrator shall establish procedures which take into ac14 count the job experience of, and the compensation and

15 benefits provided to, the transferred employees at the

16 prior agency.

17 (g) EFFECTIVE DATE.—This section shall take effect

18 on January 1, 1996.

19 SEC. 202. OFFICE OF THRIFT SUPERVISION ABOLISHED.

20 (a) OFFICE OF THRIFT SUPERVISION ABOLISHED.—

21 Effective January 1, 1997, the Office of Thrift Super22 vision and the position of Director of the Office of Thrift

23 Supervision are hereby abolished.

24 (b) DISPOSITION OF AFFAIRS.—
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1 (1) IN GENERAL.—In winding up the affairs of

2 the Office of Thrift Supervision, the Director of the

3 Office of Thrift Supervision shall consult and co4 operate with the Administrator of the Agency and

5 the Comptroller of the Currency to facilitate the or6 derly transfer of the functions to the Agency. Any

7 matter not resolved pursuant to such consultation

8 and cooperation shall be resolved by the Secretary.

9 (2) CONTINUING AUTHORITY OF DIRECTOR OF

10 THE OFFICE OF THRIFT SUPERVISION.—Except as

11 provided in paragraph (1) and section 201, nothing

12 in this title shall affect the authority vested in the

13 Director of the Office of Thrift Supervision before

14 the date of enactment of this Act which is necessary

15 to carry out the duties of the position until the date

16 upon which the position of Director of the Office of

17 Thrift Supervision is abolished.

18 (3) CONTINUATION OF AGENCY SERVICES.—

19 Any agency, department, or other instrumentality of

20 the United States, or any successor to any such

21 agency, department, or instrumentality, which was

22 providing support services to the Office of Thrift Su23 pervision on the day before the date the Office of

24 Thrift Supervision is abolished shall—
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1 (A) continue to provide such services on a

2 reimbursable basis, in accordance with the

3 terms of the arrangement pursuant to which

4 such services were provided until the arrange5 ment is modified or terminated in accordance

6 with such terms, except that effective Jan7 uary 1, 1997, the Agency shall be substituted

8 for the Office of Thrift Supervision as a party

9 to the arrangement; and

10 (B) consult with the Administrator to co11 ordinate and facilitate a prompt and reasonable

12 transition.

13 (c) SAVINGS PROVISIONS.—

14 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA15 TIONS NOT AFFECTED.—No provision of this title

16 shall affect the validity of any right, duty, or obliga17 tion of the United States, the Office of Thrift Super18 vision, or any person, which existed on the day

19 before the date upon which the Office of Thrift

20 Supervision is abolished.

21 (2) CONTINUATION OF SUITS.—No action or

22 other proceeding commenced by or against the Office

23 of Thrift Supervision shall abate by reason of enact24 ment of this Act, except that, effective January 1,
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1 1997, the Administrator shall be substituted as a

2 party to any such action or proceeding.

3 (3) CONTINUATION OF ADMINISTRATIVE

4 RULES.—All orders, resolutions, determinations, reg5 ulations, interpretative rules, other interpretations,

6 guidelines, procedures, and other advisory material

7 which—

8 (A) have been issued, made, prescribed, or

9 permitted to become effective by the Office of

10 Thrift Supervision, and

11 (B) are in effect on December 31, 1996,

12 (or become effective after such date pursuant to

13 the terms of the order, resolution, determina14 tion, rule, other interpretation, guideline, proce15 dure, and other advisory material, as in effect

16 on such date), shall—

17 (i) continue in effect according to the

18 terms of such orders, resolutions, deter19 minations, regulations, interpretative rules,

20 other interpretations, guidelines, proce21 dures, or other advisory material;

22 (ii) be administered by the Adminis23 trator; and

24 (iii) be enforceable by or against the

25 Administrator until modified, terminated,
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1 set aside, or superseded in accordance with

2 applicable law by the Administrator, by

3 any court of competent jurisdiction, or by

4 operation of law.

5 (d) TRANSFER OF PROPERTY.—Effective January 1,

6 1997, all property of the Office of Thrift Supervision shall

7 be transferred to the Agency.

8 SEC. 203. OFFICE OF THE COMPTROLLER OF THE CUR9 RENCY ABOLISHED.

10 (a) OFFICE OF THE COMPTROLLER OF THE CUR11 RENCY ABOLISHED.—Effective January 1, 1997, the Of12 fice of the Comptroller of the Currency and the position

13 of the Comptroller of the Currency are abolished.

14 (b) DISPOSITION OF AFFAIRS.—

15 (1) IN GENERAL.—In winding up the affairs of

16 the Office of the Comptroller of the Currency, the

17 Comptroller of the Currency shall consult and co18 operate with the Administrator of the Federal Bank

19 Agency and the Director of the Office of Thrift Su20 pervision to facilitate the orderly transfer of func21 tions to the Agency. Any matter not resolved pursu22 ant to such consultation and cooperation shall be

23 resolved by the Secretary.

24 (2) CONTINUING AUTHORITY OF THE COMP25 TROLLER OF THE CURRENCY.—Except as provided
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1 in paragraph (1) and section 201, nothing in this

2 Act shall affect the authority vested in the Comp3 troller of the Currency before the date of enactment

4 of this Act which is necessary to carry out the duties

5 of the position until the date upon which the

6 position of Comptroller is abolished.

7 (3) CONTINUATION OF AGENCY SERVICES.—

8 Any agency, department, or other instrumentality of

9 the United States, or any successor to any such

10 agency, department, or instrumentality, which was

11 providing support services to the Office of the Comp12 troller of the Currency on the day before the date

13 the Office of the Comptroller of the Currency is

14 abolished shall—

15 (A) continue to provide such services, on a

16 reimbursable basis, in accordance with the

17 terms of the arrangement pursuant to which

18 such services were provided until the arrange19 ment is modified or terminated in accordance

20 with such terms, except that effective Jan21 uary 1, 1997, the Agency shall be substituted

22 for the Office of the Comptroller of the Cur23 rency as a party to the arrangement; and
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1 (B) consult with the Administrator to co2 ordinate and facilitate a prompt and reasonable

3 transition.

4 (c) SAVINGS PROVISIONS.—

5 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA6 TIONS NOT AFFECTED.—No provision of this title

7 shall affect the validity of any right, duty, or obliga8 tion of the United States, the Office of the Comp9 troller of the Currency, or any person, which existed

10 on the day before the date upon which the Office of

11 the Comptroller of the Currency is abolished by this

12 title.

13 (2) CONTINUATION OF SUITS.—No action or

14 other proceeding commenced by or against the

15 Comptroller of the Currency or the Office of the

16 Comptroller of the Currency shall abate by reason of

17 enactment of this Act, except that effective Jan18 uary 1, 1997, the Administrator shall be substituted

19 as a party to any such action or proceeding.

20 (3) CONTINUATION OF ADMINISTRATIVE

21 RULES.—All orders, resolutions, determinations, reg22 ulations, interpretative rules, other interpretations,

23 guidelines, procedures, and other advisory material

24 which—
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1 (A) have been issued, made, prescribed, or

2 permitted to become effective by the Comptrol3 ler of the Currency; and

4 (B) are in effect on December 31, 1996,

5 (or become effective after such date pursuant to

6 the terms of the order, resolution, determina7 tion, rule, other interpretation, guideline, proce8 dure, and other advisory material, as in effect

9 on such date) shall—

10 (i) continue in effect according to the

11 terms of such orders, resolutions, deter12 minations, regulations, interpretative rules,

13 guidelines, procedures or other advisory

14 material;

15 (ii) be administered by the Adminis16 trator; and

17 (iii) be enforceable by or against the

18 Administrator until modified, terminated,

19 set aside, or superseded in accordance with

20 applicable law by the Administrator, by

21 any court of competent jurisdiction, or by

22 operation of law.

23 (d) TRANSFER OF PROPERTY.—Effective January 1,

24 1997, all property of the Office of the Comptroller of the

25 Currency shall be transferred to the Agency.
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1 SEC. 204. REFERENCES IN FEDERAL LAW TO FEDERAL

2 BANKING AGENCIES.

3 Any reference in any Federal law to the Comptroller

4 of the Currency, the Office of the Comptroller of the Cur5 rency, the Director of the Office of Thrift Supervision, or

6 the Office of Thrift Supervision shall be deemed to be a

7 reference to the appropriate Federal banking agency (as

8 defined in section 3(q) of the Federal Deposit Insurance

9 Act).

10 TITLE III—REGULATORY AND

11 SUPERVISORY RESPONSIBILITY

12 SEC. 301. TRANSFER OF POWERS AND DUTIES.

13 (a) DIRECTOR OF THE OFFICE OF THRIFT SUPER14 VISION.—Effective January 1, 1997, all powers and duties

15 which were vested in the Director of the Office of Thrift

16 Supervision on December 31, 1996, are transferred to the

17 Administrator, except as otherwise provided in this Act.

18 (b) COMPTROLLER OF THE CURRENCY.—Effective

19 January 1, 1997, all powers and duties which were vested

20 in the Comptroller of the Currency on December 31, 1996,

21 are transferred to the Administrator, except as otherwise

22 provided in this Act.

23 SEC. 302. APPROPRIATE FEDERAL BANKING AGENCY.

24 (a) Section 3(q) of the Federal Deposit Insurance Act

25 (12 U.S.C. 1813(q)) is amended to read as follows:

26 ‘‘(q) APPROPRIATE FEDERAL BANKING AGENCY.—
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1 ‘‘(1) IN GENERAL.—The term ‘appropriate Fed2 eral banking agency’ means—

3 ‘‘(A) the Administrator of the Federal

4 Bank Agency in the case of—

5 ‘‘(i) a Federal depository institution

6 and any subsidiary of any Federal deposi7 tory institution, other than—

8 ‘‘(I) a subsidiary chartered or

9 regulated by the Board of Governors

10 of the Federal Reserve System under

11 section 25 or 25A of the Federal

12 Reserve Act; or

13 ‘‘(II) a depository institution sub14 sidiary of a depository institution

15 holding company for which the Fed16 eral Deposit Insurance Corporation or

17 the Board of Governors of the Federal

18 Reserve System is the appropriate

19 Federal banking agency;

20 ‘‘(ii) a District bank chartered by the

21 Administrator, other than a depository in22 stitution subsidiary described in clause (i);

23 ‘‘(iii) a Federal agency of a foreign

24 bank other than an agency regulated by
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1 the Board of Governors of the Federal Re2 serve System;

3 ‘‘(iv) a savings and loan holding com4 pany the principal depository institution

5 subsidiary of which is a Federal savings

6 association and each affiliate of such com7 pany, including each depository institution

8 subsidiary of such company; and

9 ‘‘(v) a bank holding company—

10 ‘‘(I) which has total consolidated

11 depository institution assets of less

12 than $25,000,000,000; and

13 ‘‘(II) the principal depository in14 stitution subsidiary of which is a

15 Federal depository institution or a

16 District bank,

17 and each affiliate of such company, includ18 ing each depository institution subsidiary

19 of such company;

20 ‘‘(B) the Federal Deposit Insurance Cor21 poration in the case of—

22 ‘‘(i) a State depository institution (ex23 cept a District bank), other than a State

24 member bank or a depository institution

25 subsidiary of a depository institution hold-
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1 ing company for which the Federal Bank

2 Agency or the Board of Governors of the

3 Federal Reserve System is the appropriate

4 Federal banking agency;

5 ‘‘(ii) a foreign bank which—

6 ‘‘(I) operates an insured branch;

7 and

8 ‘‘(II) has total worldwide assets

9 of less than $25,000,000,000;

10 ‘‘(iii) a bank holding company—

11 ‘‘(I) which has total consolidated

12 depository institution assets of less

13 than $25,000,000,000; and

14 ‘‘(II) the principal depository in15 stitution subsidiary of which is a

16 State depository institution (except a

17 District bank) which is not a State

18 member bank,

19 and each affiliate of such company, includ20 ing each depository institution subsidiary

21 of such company; and

22 ‘‘(iv) a savings and loan holding com23 pany the principal depository institution

24 subsidiary of which is a State savings asso25 ciation and each affiliate of such company,
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1 including each depository institution sub2 sidiary of such company; and

3 ‘‘(C) the Board of Governors of the

4 Federal Reserve System in the case of—

5 ‘‘(i) a State member bank, other than

6 a depository institution subsidiary of a de7 pository institution holding company for

8 which the Federal Bank Agency or the

9 Federal Deposit Insurance Corporation is

10 the appropriate Federal banking agency;

11 ‘‘(ii) any branch or agency of a for12 eign bank with respect to any provision of

13 the Federal Reserve Act which is made ap14 plicable under the International Banking

15 Act of 1978,

16 ‘‘(iii) any foreign bank which does not

17 operate an insured branch,

18 ‘‘(iv) any agency or commercial lend19 ing company other than a Federal agency,

20 ‘‘(v) supervisory or regulatory pro21 ceedings arising from the authority given

22 to the Board of Governors under section

23 7(c)(1) of the International Banking Act of

24 1978, including such proceedings under
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1 the Depository Institutions Supervisory

2 Act;

3 ‘‘(vi) any bank holding company which

4 has total consolidated depository institu5 tion assets equal to or greater than

6 $25,000,000,000 or foreign bank with

7 worldwide assets equal to or greater than

8 $25,000,000,000, and each affiliate of

9 such company, including each depository

10 institution subsidiary of such company;

11 and

12 ‘‘(vii) any bank holding company—

13 ‘‘(I) which has total consolidated

14 depository institution assets of less

15 than $25,000,000,000; and

16 ‘‘(II) the principal depository in17 stitution subsidiary of which is a

18 State member bank,

19 and each affiliate of such company, includ20 ing each depository institution subsidiary

21 of such company.

22 ‘‘(2) CONSOLIDATED ASSETS DEFINED.—For

23 purposes of this subsection, the term ‘consolidated

24 depository institution assets’ means, with respect to

25 any calendar year, the total assets of all insured de-
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1 pository institutions controlled by a depository insti2 tution holding company on average for the last day

3 of each quarter of the preceding calendar year;

4 ‘‘(3) DETERMINATION OF PRINCIPAL DEPOSI5 TORY INSTITUTION SUBSIDIARY.—

6 ‘‘(A) PRINCIPAL DEPOSITORY INSTITUTION

7 SUBSIDIARY DEFINED.—The term ‘principal de8 pository institution subsidiary’ means, with re9 spect to any year—

10 ‘‘(i) the depository institution subsidi11 ary of a bank holding company that has

12 the greatest dollar amount of assets, on av13 erage, as of the last day of each quarter of

14 the preceding calendar year; and

15 ‘‘(ii) in the case of a foreign bank that

16 is a bank holding company, the depository

17 institution, branch, agency, or commercial

18 lending company controlled or operated by

19 a foreign bank in the United States that

20 has the greatest dollar amount of assets,

21 on average, as of the last day of each

22 quarter of the preceding calendar year.

23 ‘‘(B) RULE IN CASE OF MULTIPLE DEPOSI24 TORY INSTITUTION SUBSIDIARIES OF SIMILAR

25 SIZE.—If a depository institution holding com-
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1 pany controls 2 or more depository institutions

2 which have substantially equal dollar amounts

3 of assets and such depository institutions are

4 not regulated by the same Federal banking

5 agency, the principal depository institution sub6 sidiary, for purposes of this subsection, shall be

7 the depository institution which has the great8 est dollar amount of deposits, on average, for

9 the last day of each quarter of the preceding

10 calendar year.

11 ‘‘(4) CALCULATIONS.—All determinations re12 garding equity capital or assets, as appropriate, shall

13 be made based upon those amounts on the last day

14 of each of the four quarters over the preceding

15 calendar year.

16 ‘‘(5) EVALUATION.—The appropriate Federal

17 banking agency shall evaluate the principal bank

18 subsidiary and the consolidated assets of the deposi19 tory institution holding company, as the cases may

20 be, as defined in paragraphs (1), (2), and (3) by

21 January 1, 1997, and every 5 years thereafter for

22 the purpose of determining whether a transfer to the

23 other appropriate Federal banking agency is

24 necessary.

25 ‘‘(6) TRANSFER.—
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1 ‘‘(A) IN GENERAL.—In any case in which

2 the appropriate Federal banking agency has

3 changed after evaluation, notice shall be given

4 to the new appropriate Federal banking agency

5 within 30 days after evaluation.

6 ‘‘(B) EXAMINATION AND OTHER RE7 PORTS.—A copy of the examination reports and

8 any other reports required to be filed by the

9 depository institution holding company pursu10 ant to the Bank Holding Company Act of 1956

11 or section 10 of the Home Owners’ Loan Act

12 for the prior 2 years shall be provided to the

13 new appropriate Federal banking agency when

14 notice is provided to such agency.

15 ‘‘(C) REGULATION AND SUPERVISION.—

16 Regulation and supervision of the depository in17 stitution holding company shall be transferred

18 to the new appropriate Federal banking agency

19 no later than 90 days after notice has been

20 provided.

21 ‘‘(7) COST-OF-LIVING ADJUSTMENT.—

22 ‘‘(A) IN GENERAL.—Paragraph (1) shall

23 be applied in any year beginning after Decem24 ber 31, 1996, by increasing the

25 $25,000,000,000 amount in any subparagraph
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1 of such paragraph by the cost-of-living adjust2 ment for the year.

3 ‘‘(B) COST-OF-LIVING ADJUSTMENT.—For

4 purposes of subparagraph (A), the cost-of-living

5 adjustment for any year is the percentage, if

6 any, by which—

7 ‘‘(i) the CPI for the preceding year,

8 exceeds the CPI for 1995.

9 ‘‘(C) CPI FOR ANY YEAR.—For purposes

10 of subparagraph (B), the CPI for any year is

11 the average of the last Consumer Price Index

12 for all-urban consumers published by the De13 partment of Labor during the 12-month period

14 ending on August 31 of such year.’’.

15 (b) EFFECTIVE DATE.—The amendment made by

16 subsection (a) shall take effect on January 1, 1997.

17 TITLE IV—FEDERAL DEPOSIT

18 INSURANCE CORPORATION

19 AMENDMENTS

20 SEC. 401. AMENDMENTS TO THE FEDERAL DEPOSIT INSUR21 ANCE ACT.

22 (a) AMENDMENTS TO SECTION 18 OF THE FEDERAL

23 DEPOSIT INSURANCE ACT.—Section 18 of the Federal

24 Deposit Insurance Act (12 U.S.C. 1828) is amended—

25 (1) in subsection (c)—
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1 (A) by striking ‘‘responsible agency’’ each

2 place such term appears and inserting ‘‘appro3 priate Federal banking agency’’;

4 (B) by striking ‘‘responsible agencies’’ each

5 place such term appears and inserting ‘‘appro6 priate Federal banking agencies’’;

7 (C) by striking ‘‘the other two banking

8 agencies referred to in this subsection’’ each

9 place such term appears and inserting ‘‘the

10 other appropriate Federal banking agency’’;

11 (D) by striking ‘‘the other two banking

12 agencies’’ each place such term appears and in13 serting ‘‘the other appropriate Federal banking

14 agency’’;

15 (E) in paragraph (2), by striking ‘‘written

16 approval’’ and all that appears after such term

17 in such paragraph and inserting ‘‘written ap18 proval of the appropriate Federal banking

19 agency for the acquiring, assuming, or resulting

20 institution.’’; and

21 (F) by striking subparagraph (B) of para22 graph (2) and redesignating subsequent sub23 paragraphs accordingly;

24 (2) in subsection (g), by striking ‘‘Adminis25 trator of the Office of Thrift Supervision’’ each place
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1 such term appears and inserting ‘‘Administrator of

2 the Federal Bank Agency’’; and

3 (3) in subsection (i)(2), by striking ‘‘written

4 consent’’ and all that appears after such term in

5 such paragraph and inserting ‘‘written consent of

6 the appropriate Federal banking agency for the

7 acquiring, assuming or resulting institution.’’.

8 (b) AMENDMENTS TO SECTION 44.—Section 44 of the

9 Federal Deposit Insurance Act (12 U.S.C. 1831u) is

10 amended—

11 (1) by striking ‘‘responsible agency’’ each place

12 such term appears and inserting ‘‘appropriate Fed13 eral banking agency’’;

14 (2) in subsection (f), by striking paragraph (10)

15 and redesignating paragraph (11) as paragraph

16 (10).

17 TITLE V—REORGANIZATION OF

18 BOARDS OF DIRECTORS

19 SEC. 501. FEDERAL DEPOSIT INSURANCE CORPORATION

20 BOARD OF DIRECTORS.

21 (a) REORGANIZATION.—Section 2 of the Federal

22 Deposit Insurance Act (12 U.S.C. 1812) is amended—

23 (1) by striking ‘‘Comptroller of the Currency’’

24 each place such term appears and inserting ‘‘Admin25 istrator of the Federal Bank Agency’’;
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1 (2) by striking ‘‘Director of the Office of Thrift

2 Supervision’’ each place such term appears and in3 serting ‘‘Chairman of the Board of Governors of the

4 Federal Reserve System or a Governor of the Board

5 of Governors of the Federal Reserve System dele6 gated by the Chairman of the Board of Governors’’;

7 and

8 (3) in subsection (a), by striking paragraph (2).

9 (b) CONFORMING AMENDMENT TO THE FEDERAL

10 RESERVE ACT.—Section 11(k) of the Federal Reserve Act

11 (12 U.S.C. 248(k)) is amended by adding at the end there12 of the following: ‘‘The Chairman may delegate the author13 ity of the Chairman to serve as a member of the Board

14 of Directors of the Federal Deposit Insurance Corporation

15 to any other member of the Board.’’.

16 (c) EFFECTIVE DATE.—The amendments made by

17 this subsection shall take effect on January 1, 1997.

18 SEC. 502. AMENDMENTS TO THE FEDERAL RESERVE ACT.

19 (a) The 7th undesignated paragraph of section 9 of

20 the Federal Reserve Act (12 U.S.C. 325) is amended to

21 read as follows:

22 ‘‘(7) As a condition of membership, such banks

23 shall be subject to examinations made by the appro24 priate Federal banking agency (as defined in section

25 3(q) of the Federal Deposit Insurance Act).’’.
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1 (b) The 8th undesignated paragraph of section 9 of

2 the Federal Reserve Act (12 U.S.C. 326) is amended by

3 striking ‘‘Whenever’’ and all that follows through ‘‘; Pro4 vided, however, That’’ and inserting ‘‘Whenever the appro5 priate Federal banking agency (as defined in section 3(q)

6 of the Federal Deposit Insurance Act) shall approve the

7 examinations made by the State authorities, such exami8 nations and the examination reports may be accepted in

9 lieu of examinations made by the appropriate Federal

10 banking agency:’’.

11 (c) The 13th undesignated paragraph of section 9 of

12 the Federal Reserve Act (12 U.S.C. 330) is amended by

13 striking the 1st sentence and inserting the following new

14 sentence: ‘‘Banks which become members of the Federal

15 Reserve System under authority of this section shall be

16 subject to the provisions of this section and to the provi17 sions of this Act which relate specifically to member

18 banks, and shall subject to examination by their appro19 priate Federal banking agency (as defined in section 3(q)

20 of the Federal Deposit Insurance Act)’’.

21 (d) The 16th undesignated paragraph of section 9 of

22 the Federal Reserve Act (12 U.S.C. 333) is amended, in

23 the 1st sentence, by inserting ‘‘, by the appropriate Fed24 eral banking agency (as defined in section 3(q) of the

25 Federal Deposit Insurance Act)’’ after ‘‘examination’’.
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1 (e) The 22d undesignated paragraph of section 9 of

2 the Federal Reserve Act (12 U.S.C. 338) is amended to

3 read as follows:

4 ‘‘(22) In connection with examinations of State

5 member banks, examiners selected or approved by

6 the appropriate Federal banking agency (as defined

7 in section 3(q) of the Federal Deposit Insurance

8 Act) shall make such examinations of the affairs of

9 all affiliates of such bank as shall be necessary to

10 disclose fully the relations between such banks and

11 their affiliates and the effect of such relations upon

12 the affairs of such banks. The expense of examina13 tion of affiliates of any State member bank may, in

14 the discretion of the appropriate Federal regulator,

15 be assessed against such bank and when so assessed,

16 shall be paid by such bank to the appropriate Fed17 eral regulator. In the event of the refusal to give any

18 information requested in the course of the examina19 tion of any such affiliate, or in the event of the re20 fusal to permit such examination, or in the event of

21 the refusal to pay any expense so assessed, the ap22 propriate Federal regulator shall inform the Board

23 of Governors of the Federal Reserve System of such

24 refusal. The Board of Governors of the Federal Re25 serve System may, in its discretion, require any or
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1 all State member banks affiliated with such affiliate

2 to surrender their stock in the Federal reserve bank

3 and to forfeit all rights and privileges of membership

4 in the Federal Reserve System, as provided in this

5 section.’’.

6 (f) This section and the amendments made by this

7 section shall take effect on January 1, 1997.

8 SEC. 503. AMENDMENT TO THE BANK HOLDING COMPANY

9 ACT OF 1956.

10 (a) SUBSTITUTION OF APPROPRIATE AGENCY FOR

11 BOARD.—

12 (1) IN GENERAL.—The Bank Holding Company

13 Act of 1956 (12 U.S.C. 1841 et seq.) is amended by

14 striking ‘‘Board’’ each place such term appears

15 (other than in sections 2(f), 2(h), 4(c)(9), and

16 4(c)(13)) and inserting ‘‘appropriate Federal bank17 ing agency’’.

18 (2) APPROPRIATE FEDERAL BANKING AGENCY

19 DEFINED.—Section 2(f) of the Bank Holding Com20 pany Act of 1956 (1841(f)) is amended to read as

21 follows:

22 ‘‘(f) APPROPRIATE FEDERAL BANKING AGENCY.—

23 The term ‘appropriate Federal banking agency’ has the

24 meaning given to such term in section 3(q) of the Federal

25 Deposit Insurance Act.’’.
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1 (b) REPORTS.—Section 5(c) of the Bank Holding

2 Company Act of 1956 (12 U.S.C. 1844(c)) is amended

3 by striking the last sentence.

4 SEC. 504. AMENDMENT TO THE BANK HOLDING COMPANY

5 AMENDMENTS ACT OF 1970.

6 Section 106(a) of the Bank Holding Company Act

7 Amendments of 1970 (12 U.S.C. 1971) is amended by

8 adding the following sentence at the end thereof: ‘‘The

9 term ‘appropriate Federal banking agency’ has the same

10 meaning as in section 3(q) of the Federal Deposit Insur11 ance Act.’’.

12 TITLE VI—REGULATORY

13 UNIFORMITY

14 SEC. 601. AMENDMENTS RELATING TO THE FINANCIAL IN15 STITUTIONS EXAMINATION COUNCIL.

16 (a) UNIFORM EXAMINATION AND SUPERVISION.—

17 Subsection (a) of section 1006 of the Federal Financial

18 Institutions Examination Council Act of 1978 is amended

19 to read as follows:

20 ‘‘(a) UNIFORM EXAMINATION AND SUPERVISION.—

21 The Council shall, insofar as is practicable, establish uni22 form principles and standards for the examination and su23 pervision of financial institutions and other providers of

24 financial services within the jurisdiction of the member

25 agencies, which shall be applied by the member agencies.’’.
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1 (b) RECOMMENDATIONS FOR UNIFORMITY IN OTHER

2 SUPERVISORY MATTERS.—Subsection (b)(1) of section

3 1006 of the Federal Financial Institutions Examination

4 Council Act of 1978 is amended to read as follows:

5 ‘‘(b) UNIFORMITY IN OTHER SUPERVISORY MAT6 TERS.—

7 ‘‘(1) IN GENERAL.—The Council shall make

8 recommendations for uniformity in other supervisory

9 matters, such as identifying financial institutions

10 and other providers of financial services in need of

11 special supervisory attention, the adequacy of super12 visory tools for determining the impact of affiliate

13 operations on insured depository institutions and the

14 ability of the member agencies to discover possible

15 fraud or questionable practices.’’.

16 (c) UNIFORM REGULATIONS.—Section 1006 of the

17 Federal Financial Institutions Examination Council Act of

18 1978 is amended—

19 (1) by redesignating subsections (e) and (f) as

20 subsections (g) and (h), respectively; and

21 (2) by inserting after subsection (d) the follow22 ing new subsections:

23 ‘‘(e) UNIFORM REGULATIONS.—

24 ‘‘(1) SUBMISSION OF EACH PROPOSED REGULA25 TION.—Each Federal financial institutions regu-
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1 latory agency shall submit each proposed regulation

2 relating to the supervision and regulation of finan3 cial institutions to the Council for comments and

4 recommendations.

5 ‘‘(2) REVIEW AND RECOMMENDATIONS.—The

6 Council shall review any proposed regulation submit7 ted under subsection (a) and shall provide such com8 ments and recommendations to the appropriate Fed9 eral regulatory agency as the Council determines to

10 be appropriate in order to—

11 ‘‘(A) maintain, insofar as is practicable,

12 uniformity in the requirements of the regula13 tions of the appropriate Federal regulatory

14 agencies;

15 ‘‘(B) ensure that such regulations address

16 such unsafe or unsound practices involving de17 pository institution holding companies and their

18 affiliates as the Council may identify based

19 upon the Council’s or any appropriate Federal

20 regulatory agency’s experience in administering

21 this Act; and

22 ‘‘(C) ensure that such regulations take into

23 account competitive conditions in domestic and

24 international financial markets.

25 ‘‘(f) AUTHORITY TO ISSUE REGULATIONS.—
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1 ‘‘(1) IN GENERAL.—Notwithstanding any other

2 provision of law, the Council may, by unanimous

3 vote, issue in the name of the Council any uniform

4 regulation, interpretation, guideline, order, or other

5 administrative action which could be taken sepa6 rately by any of the Federal agencies represented on

7 the Council under the Federal Reserve Act, the Fed8 eral Deposit Insurance Act, the Home Owners Loan

9 Act, title LXII of the Revised Statutes of the United

10 States, or the Bank Holding Company Act of 1956.

11 ‘‘(2) JUDICIAL REVIEW.—Any action taken by

12 the Council under paragraph (1) shall be subject to

13 judicial review as if the action was taken by the

14 member of the Council in whose stead the Council

15 acted.’’.

16 (d) TECHNICAL AND CONFORMING AMENDMENT.—

17 Section 1003(1) of the Federal Financial Institutions Ex18 amination Council Act of 1978 (12 U.S.C. 3302(1)) is

19 amended to read as follows:

20 ‘‘(1) FEDERAL FINANCIAL INSTITUTIONS REGU21 LATORY AGENCIES.—The term ‘Federal financial in22 stitutions regulatory agencies’ means the Board of

23 Governors of the Federal Reserve System, the Fed24 eral Deposit Insurance Corporation, the Federal
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1 Bank Agency, and the National Credit Union

2 Administration.’’.

3 TITLE VII—CREDIT UNIONS

4 SEC. 701. COMPARABLE SUPERVISORY STANDARDS FOR

5 CREDIT UNIONS.

6 Insured credit unions (as defined in section 101(7)

7 of the Federal Credit Union Act) shall be supervised by

8 the National Credit Union Administration under stand9 ards which are comparable to the standards under which

10 Federal depository institutions (as defined in section 3(c)

11 of the Federal Deposit Insurance Act) are supervised by

12 the appropriate Federal banking agency (as defined in

13 section 3(q) of the Federal Deposit Insurance Act, as

14 amended by section 302 of this Act), taking into account

15 the unique mission and nature of credit unions.

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