II

104TH CONGRESS

2D SESSION S. 2144

To enhance the supervision by Federal and State banking agencies of foreign

banks operating in the United States, to limit participation in insured

financial institutions by persons convicted of certain crimes, and for

other purposes.

IN THE SENATE OF THE UNITED STATES

SEPTEMBER 27, 1996

Mr. D’AMATO (for himself, Mr. KERRY, Mr. FAIRCLOTH, Mr. PRESSLER, and

Mr. DODD) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To enhance the supervision by Federal and State banking

agencies of foreign banks operating in the United States,

to limit participation in insured financial institutions by

persons convicted of certain crimes, 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.

4 This Act may be cited as the ‘‘Foreign Bank Enforce5 ment Act of 1996’’.
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1 SEC. 2. UNAUTHORIZED PARTICIPATION BY CONVICTED

2 PERSONS.

3 Section 19 of the Federal Deposit Insurance Act (12

4 U.S.C. 1829) is amended—

5 (1) in subsection (a), by striking ‘‘Corporation’’

6 and inserting ‘‘appropriate Federal banking author7 ity’’; and

8 (2) by adding at the end the following new sub9 section:

10 ‘‘(c) DEFINITION.—For purposes of this section—

11 ‘‘(1) the term ‘appropriate Federal banking au12 thority’ means—

13 ‘‘(A) the Corporation, in the case of any

14 insured depository institution, except as specifi15 cally provided in subparagraphs (B), (C), and

16 (D), or in the case of any insured branch of a

17 foreign bank;

18 ‘‘(B) the Board of Governors of the Fed19 eral Reserve System, in the case of any bank

20 holding company and any subsidiary thereof

21 (other than a bank), uninsured State branch or

22 agency of a foreign bank, or any organization

23 organized and operated under section 25A of

24 the Federal Reserve Act or operating under sec25 tion 25 of the Federal Reserve Act;
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1 ‘‘(C) the Comptroller of the Currency, in

2 the case of any Federal agency or uninsured

3 Federal branch of a foreign bank; and

4 ‘‘(D) the Office of Thrift Supervision, in

5 the case of any savings and loan holding com6 pany and any subsidiary thereof (other than a

7 bank or a savings association) or any institu8 tion that is treated as an insured bank under

9 section 8(b)(9); and

10 ‘‘(2) the term ‘insured depository institution’

11 shall be deemed to include any institution treated as

12 an insured bank under paragraph (3), (4), or (5) of

13 section 8(b) or as a savings association under sec14 tion 8(b)(9).’’.

15 SEC. 3. REMOVAL ACTIONS AGAINST PERSONS CONVICTED

16 OF FELONIES.

17 Section 8(i)(3) of the Federal Deposit Insurance Act

18 (12 U.S.C. 1818(i)(3)) is amended—

19 (1) by inserting ‘‘, or any order pursuant to

20 subsection (g),’’ after ‘‘any notice’’; and

21 (2) by inserting ‘‘or order’’ after ‘‘such notice’’.

22 SEC. 4. INTERNATIONAL COOPERATION.

23 Section 15 of the International Banking Act of 1978

24 (12 U.S.C. 3109) is amended by adding at the end the

25 following new subsections:
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1 ‘‘(c) INFORMATION OBTAINED FROM FOREIGN

2 SUPERVISORS.—

3 ‘‘(1) IN GENERAL.—Except as provided in sub4 section (d), the Board, the Comptroller, the Federal

5 Deposit Insurance Corporation, and the Office of

6 Thrift Supervision shall not be compelled to disclose

7 information obtained from a foreign supervisor if—

8 ‘‘(A) the foreign supervisor has, in good

9 faith, determined and represented to such agen10 cy that public disclosure of the information

11 would violate the laws applicable to that foreign

12 supervisor; and

13 ‘‘(B) the United States agency obtains

14 such information pursuant to—

15 ‘‘(i) such procedure as the agency may

16 authorize for use in connection with the

17 administration or enforcement of the bank18 ing laws; or

19 ‘‘(ii) a memorandum of under20 standing.

21 ‘‘(2) TREATMENT UNDER TITLE 5.—For pur22 poses of section 552 of title 5, United States Code,

23 this subsection shall be considered to be a statute

24 described in subsection (b)(3)(B) of such section

25 552.
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1 ‘‘(d) SAVINGS PROVISION.—Nothing in this section

2 authorizes the Board, the Comptroller, the Federal De3 posit Insurance Corporation, or the Office of Thrift

4 Supervision to withhold information from the Congress or

5 to prevent such agency from complying with an order of

6 a court of the United States in an action commenced by

7 the United States or by such agency.’’.

8 SEC. 5. TERMINATION OF FOREIGN BANK OFFICES IN THE

9 UNITED STATES.

10 Section 7(e) of the International Banking Act of

11 1978 (12 U.S.C. 3105(e)) is amended by adding at the

12 end the following new paragraph:

13 ‘‘(8) PROVISIONS OF A TERMINATION ORDER.—

14 An order issued by the Board under paragraph (1)

15 or by the Comptroller under section 4(i) may contain

16 such terms and conditions as the Board or the

17 Comptroller, as the case may be, deems appropriate

18 to carry out this subsection.’’.

19 SEC. 6. DISCLOSURE OF CERTAIN MATTERS OCCURRING

20 BEFORE GRAND JURY.

21 Section 3322(b) of title 18, United States Code, is

22 amended—

23 (1) in paragraph (1), by inserting ‘‘State or

24 Federal’’ before ‘‘financial institution’’; and
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1 (2) in paragraph (2), by inserting ‘‘at any time

2 during or after the completion of the investigation of

3 the grand jury’’ before ‘‘upon’’.

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