I

103D CONGRESS

1ST SESSION H. R. 1227

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

MARCH 4, 1993

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

on Banking, Finance and Urban Affairs

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.

4 This Act may be cited as the ‘‘Bank Regulatory

5 Consolidation and Reform Act of 1993’’.
2

•HR 1227 IH

1 TITLE I—FEDERAL BANK

2 AGENCY

3 SEC. 101. ESTABLISHMENT OF THE AGENCY.

4 Effective January 1, 1994, there shall be established

5 the Federal Bank Agency which shall be an independent

6 establishment.

7 SEC. 102. DEFINITIONS.

8 As used in this title—

9 (1) the term ‘‘Administrator’’ means the Ad10 ministrator of the Federal Bank Agency;

11 (2) the term ‘‘Agency’’ means the Federal Bank

12 Agency; and

13 (3) the term ‘‘Secretary’’ means the Secretary

14 of the Treasury.

15 SEC. 103. ADMINISTRATOR OF THE FEDERAL BANK AGEN16 CY.

17 (a) IN GENERAL.—The Agency shall have an Admin18 istrator who shall be the head of the Agency.

19 (b) APPOINTMENT.—The Administrator shall be ap20 pointed by the President, by and with the advice and con21 sent of the Senate, from among individuals who are

22 citizens of the United States.

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

24 a term of 5 years.
3

•HR 1227 IH

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
4

•HR 1227 IH

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, 1994.

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.
5

•HR 1227 IH

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

2 on January 1, 1994.

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, 1995.

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.
6

•HR 1227 IH

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
7

•HR 1227 IH

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, 1995.

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.
8

•HR 1227 IH

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, 1995, 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
9

•HR 1227 IH

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, 1994.

19 SEC. 202. OFFICE OF THRIFT SUPERVISION ABOLISHED.

20 (a) OFFICE OF THRIFT SUPERVISION ABOLISHED.—

21 Effective January 1, 1995, 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.—
10

•HR 1227 IH

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 of the day before the date the Office of

24 Thrift Supervision is abolished shall—
11

•HR 1227 IH

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, 1995, 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,
12

•HR 1227 IH

1 1995, 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, 1994,

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,
13

•HR 1227 IH

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 1995, 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, 1995, 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
14

•HR 1227 IH

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, 1995, the Agency shall be substituted

22 for the Office of the Comptroller of the Cur23 rency as a party to the arrangement; and
15

•HR 1227 IH

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, 1995, 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—
16

•HR 1227 IH

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, 1994,

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 1995, all property of the Office of the Comptroller of the

25 Currency shall be transferred to the Agency.
17

•HR 1227 IH

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, 1995, all powers and duties

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

16 Supervision on December 31, 1994, are transferred to the

17 Administrator, except as otherwise provided in this Act.

18 (b) COMPTROLLER OF THE CURRENCY.—Effective

19 January 1, 1995, all powers and duties which were vested

20 in the Comptroller of the Currency on December 31, 1994,

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.—
18

•HR 1227 IH

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

25 the Board of Governors of the Federal Re-
19

•HR 1227 IH

1 serve System or the Federal Deposit Insur2 ance Corporation;

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 deposi24 tory institution subsidiary of a depository

25 institution holding company for which the
20

•HR 1227 IH

1 Federal Bank Agency or the Board of Gov2 ernors of the Federal Reserve System is

3 the appropriate Federal banking agency;

4 ‘‘(ii) a foreign bank having an insured

5 branch;

6 ‘‘(iii) a bank holding company—

7 ‘‘(I) which has total consolidated

8 depository institution assets of less

9 than $25,000,000,000; and

10 ‘‘(II) the principal depository in11 stitution subsidiary of which is a

12 State depository institution (except a

13 District bank),

14 and each affiliate of such company, includ15 ing each depository institution subsidiary

16 of such company; and

17 ‘‘(iv) a savings and loan holding com18 pany the principal depository institution

19 subsidiary of which is a State savings asso20 ciation and each affiliate of such company,

21 including each depository institution sub22 sidiary of such company.

23 ‘‘(C) the Board of Governors of the

24 Federal Reserve System in the case of—
21

•HR 1227 IH

1 ‘‘(i) any branch or agency of a foreign

2 bank with respect to any provision of the

3 Federal Reserve Act which is made appli4 cable under the International Banking Act

5 of 1978,

6 ‘‘(ii) any foreign bank which does not

7 operate an insured branch,

8 ‘‘(iii) any agency or commercial lend9 ing company other than a Federal agency,

10 ‘‘(iv) supervisory or regulatory pro11 ceedings arising from the authority given

12 to the Board of Governors under section

13 7(c)(1) of the International Banking Act of

14 1978, including such proceedings under

15 the Depository Institutions Supervisory

16 Act; and

17 ‘‘(v) any bank holding company which

18 has total consolidated depository institu19 tion assets equal to or greater than

20 $25,000,000,000 or foreign bank with

21 worldwide assets equal to or greater than

22 $25,000,000,000, and each affiliate of

23 such company, including each depository

24 institution subsidiary of such company.
22

•HR 1227 IH

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

2 purposes of this subsection, the term ‘consolidated

3 depository institution assets’ means, with respect to

4 any calendar year, the total assets of all insured de5 pository institutions controlled by a depository insti6 tution holding company on average for the last day

7 of each quarter of the preceding calendar year;

8 ‘‘(3) DETERMINATION OF PRINCIPAL DEPOSI9 TORY INSTITUTION SUBSIDIARY.—

10 ‘‘(A) PRINCIPAL DEPOSITORY INSTITUTION

11 SUBSIDIARY DEFINED.—The term ‘principal de12 pository institution subsidiary’ means, with re13 spect to any year—

14 ‘‘(i) the depository institution subsidi15 ary of a bank holding company that has

16 the greatest dollar amount of assets, on av17 erage, as of the last day of each quarter of

18 the preceding calendar year; and

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

20 is a bank holding company, the depository

21 institution, branch, agency, or commercial

22 lending company controlled or operated by

23 a foreign bank in the United States that

24 has the greatest dollar amount of assets,
23

•HR 1227 IH

1 on average, as of the last day of each

2 quarter of the preceding calendar year.

3 ‘‘(B) RULE IN CASE OF MULTIPLE DEPOSI4 TORY INSTITUTION SUBSIDIARIES OF SIMILAR

5 SIZE.—If a depository institution holding com6 pany controls 2 or more depository institutions

7 which have substantially equal dollar amounts

8 of assets and such depository institutions are

9 not regulated by the same Federal banking

10 agency, the principal depository institution sub11 sidiary, for purposes of this subsection, shall be

12 the depository institution which has the great13 est dollar amount of deposits, on average, for

14 the last day of each quarter of the preceding

15 calendar year.

16 ‘‘(4) CALCULATIONS.—All determinations re17 garding equity capital or assets, as appropriate, shall

18 be made based upon those amounts on the last day

19 of each of the four quarters over the preceding

20 calendar year.

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

22 banking agency shall evaluate the principal bank

23 subsidiary and the consolidated assets of the deposi24 tory institution holding company, as the cases may

25 be, as defined in paragraphs (1), (2), and (3) by
24

•HR 1227 IH

1 January 1, 1995, and every 5 years thereafter for

2 the purpose of determining whether a transfer to the

3 other appropriate Federal banking agency is

4 necessary.

5 ‘‘(6) TRANSFER.—

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

7 the appropriate Federal banking agency has

8 changed after evaluation, notice shall be given

9 to the new appropriate Federal banking agency

10 within 30 days after evaluation.

11 ‘‘(B) EXAMINATION AND OTHER RE12 PORTS.—A copy of the examination reports and

13 any other reports required to be filed by the

14 depository institution holding company pursu15 ant to the Bank Holding Company Act of 1956

16 or section 10 of the Home Owners’ Loan Act

17 for the prior 2 years shall be provided to the

18 new appropriate Federal banking agency when

19 notice is provided to such agency.

20 ‘‘(C) REGULATION AND SUPERVISION.—

21 Regulation and supervision of the depository in22 stitution holding company shall be transferred

23 to the new appropriate Federal banking agency

24 no later than 90 days after notice has been

25 provided.
25

•HR 1227 IH

1 ‘‘(7) COST-OF-LIVING ADJUSTMENT.—

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

3 be applied in any year beginning after Decem4 ber 31, 1994, by increasing the

5 $25,000,000,000 amount in any subparagraph

6 of such paragraph by the cost-of-living adjust7 ment for the year.

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

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

10 adjustment for any year is the percentage, if

11 any, by which—

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

13 exceeds the CPI for 1993.

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

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

16 the average of the last Consumer Price Index

17 for all-urban consumers published by the De18 partment of Labor during the 12-month period

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

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

21 subsection (a) shall take effect on January 1, 1995.
26

•HR 1227 IH

1 TITLE IV—FEDERAL DEPOSIT

2 INSURANCE CORPORATION

3 AMENDMENTS

4 SEC. 401. AMENDMENTS TO THE FEDERAL DEPOSIT INSUR5 ANCE ACT.

6 (a) APPLICATION FOR INSURANCE.—Section 5 of the

7 Federal Deposit Insurance Act (12 U.S.C. 1815) is

8 amended—

9 (1) in subsection (a), by striking ‘‘Comptroller

10 of the Currency’’, each place such term appears, and

11 inserting ‘‘Administrator of the Federal Bank

12 Agency’’.

13 (2) in subsection (a), by striking ‘‘Adminis14 trator of the Office of Thrift Supervision’’, each

15 place such term appears, and inserting ‘‘Adminis16 trator of the Federal Bank Agency’’.

17 (b) AMENDMENTS TO SECTION 18 OF THE FEDERAL

18 DEPOSIT INSURANCE ACT.—Section 18 of the Federal

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

20 (1) in subsection (c)—

21 (A) by striking ‘‘responsible agency’’ each

22 place such term appears and inserting ‘‘appro23 priate Federal banking agency’’;
27

•HR 1227 IH

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

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

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

5 agencies referred to in this subsection’’ each

6 place such term appears and inserting ‘‘the

7 other appropriate Federal banking agency’’;

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

9 agencies’’ each place such term appears and in10 serting ‘‘the other appropriate Federal banking

11 agency’’;

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

13 approval’’ and all that appears after such term

14 in such paragraph and inserting ‘‘written ap15 proval of the appropriate Federal banking

16 agency for the acquiring, assuming, or resulting

17 institution.’’; and

18 (F) by striking subparagraph (B) of para19 graph (2) and redesignating subsequent sub20 paragraphs accordingly;

21 (2) in subsection (g), by striking ‘‘Adminis22 trator of the Office of Thrift Supervision’’ each place

23 such term appears and inserting ‘‘Administrator of

24 the Federal Bank Agency’’; and
28

•HR 1227 IH

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

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

3 such paragraph and inserting ‘‘written consent of

4 the appropriate Federal banking agency for the

5 acquiring, assuming or resulting institution.’’.

6 TITLE V—REORGANIZATION OF

7 BOARDS OF DIRECTORS

8 SEC. 501. FEDERAL DEPOSIT INSURANCE CORPORATION

9 BOARD OF DIRECTORS.

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

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

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

13 each place such term appears and inserting ‘‘Admin14 istrator of the Federal Bank Agency’’;

15 (2) by striking ‘‘Director of the Office of Thrift

16 Supervision’’ each place such term appears and in17 serting ‘‘Chairman of the Board of Governors of the

18 Federal Reserve System or a Governor of the Board

19 of Governors of the Federal Reserve System dele20 gated by the Chairman of the Board of Governors’’;

21 and

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

23 (b) CONFORMING AMENDMENT TO THE FEDERAL

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

25 (12 U.S.C. 248(k)) is amended by adding at the end there-
29

•HR 1227 IH

1 of the following: ‘‘The Chairman may delegate the author2 ity of the Chairman to serve as a member of the Board

3 of Directors of the Federal Deposit Insurance Corporation

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

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

6 this subsection shall take effect on January 1, 1995.

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

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

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

10 read as follows:

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

12 shall be subject to examinations made by the appro13 priate Federal banking agency (as defined in section

14 3(q) of the Federal Deposit Insurance Act).’’.

15 (b) The 8th undesignated paragraph of section 9 of

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

17 striking ‘‘Whenever’’ and all that follows through the colon

18 and inserting ‘‘Whenever the appropriate Federal banking

19 agency (as defined in section 3(q) of the Federal Deposit

20 Insurance Act) shall approve the examinations made by

21 the State authorities, such examinations and the reports

22 the examination reports may be accepted in lieu of

23 examinations made by the appropriate Federal banking

24 agency:’’.
30

•HR 1227 IH

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

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

3 striking the 1st sentence and inserting the following new

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

5 Reserve System under authority of this section shall be

6 subject to the provisions of this section and to the provi7 sions of this Act which relate specifically to member

8 banks, but shall subject to examination by their appro9 priate Federal banking agency (as defined in section 3(q)

10 of the Federal Deposit Insurance Act)’’.

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

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

13 the 1st sentence, by inserting ‘‘, by the appropriate Fed14 eral banking agency (as defined in section 3(q) of the

15 Federal Deposit Insurance Act)’’ after ‘‘examination’’.

16 (e) The 22d undesignated paragraph of section 9 of

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

18 read as follows:

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

20 member banks, examiners selected or approved by

21 the appropriate Federal banking agency (as defined

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

23 Act) shall make such examinations of the affairs of

24 all affiliates of such bank as shall be necessary to

25 disclose fully the relations between such banks and
31

•HR 1227 IH

1 their affiliates and the effect of such relations upon

2 the affairs of such banks. The expense of examina3 tion of affiliates of any State member bank may, in

4 the discretion of the appropriate Federal regulator,

5 be assessed against such bank and when so assessed,

6 shall be paid by such bank to the appropriate Fed7 eral regulator. In the event of the refusal to give any

8 information requested in the course of the examina9 tion of any such affiliate, or in the event of the re10 fusal to permit such examination, or in the event of

11 the refusal to pay any expense so assessed, the ap12 propriate Federal regulator shall inform the Board

13 of Governors of the Federal Reserve System of such

14 refusal. The Board of Governors of the Federal Re15 serve System may, in its discretion, require any or

16 all State member banks affiliated with such affiliate

17 to surrender their stock in the Federal reserve bank

18 and to forfeit all rights and privileges of membership

19 in the Federal Reserve System, as provided in this

20 section.’’.

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

22 section shall take effect on January 1, 1995.
32

•HR 1227 IH

1 SEC. 503. AMENDMENT TO THE BANK HOLDING COMPANY

2 ACT.

3 (a) SUBSTITUTION OF APPROPRIATE AGENCY FOR

4 BOARD.—

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

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

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

8 (other than in section 2(f)) and inserting ‘‘appro9 priate Federal banking agency’’.

10 (2) APPROPRIATE FEDERAL BANKING AGENCY

11 DEFINED.—Section 2(f) of the Bank Holding Com12 pany Act of 1956 (1841(f)) is amended to read as

13 follows:

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

15 The term ‘appropriate Federal banking agency’ has the

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

17 Deposit Insurance Act.’’.

18 (b) REPORTS.—Section 5(c) of the Bank Holding

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

20 by striking the last sentence.

21 SEC. 504. AMENDMENT TO THE BANK HOLDING COMPANY

22 AMENDMENTS ACT OF 1970.

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

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

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

26 term ‘appropriate Federal banking agency’ means ‘appro-
33

•HR 1227 IH

1 priate Federal banking agency (as defined in section 3(q)

2 of the Federal Deposit Insurance Act).’’.

3 TITLE VI—REGULATORY

4 UNIFORMITY

5 SEC. 601. AMENDMENTS RELATING TO THE FINANCIAL IN6 STITUTIONS EXAMINATION COUNCIL.

7 (a) UNIFORM EXAMINATION AND SUPERVISION.—

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

9 Institutions Examination Council Act of 1978 is amended

10 to read as follows:

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

12 The Council shall, insofar as is practicable, establish uni13 form principles and standards for the examination and su14 pervision of financial institutions and other providers of

15 financial services within the jurisdiction of the member

16 agencies, which shall be applied by the member agencies.’’.

17 (b) RECOMMENDATIONS FOR UNIFORMITY IN OTHER

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

19 1006 of the Federal Financial Institutions Examination

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

21 ‘‘(b) UNIFORMITY IN OTHER SUPERVISORY MAT22 TERS.—

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

24 recommendations for uniformity in other supervisory

25 matters, such as identifying financial institutions
34

•HR 1227 IH

1 and other providers of financial services in need of

2 special supervisory attention, the adequacy of super3 visory tools for determining the impact of affiliate

4 operations on insured depository institutions and the

5 ability of the member agencies to discover possible

6 fraud or questionable practices.’’.

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

8 Federal Financial Institutions Examination Council Act of

9 1978 is amended—

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

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

12 (2) by inserting after subsection (d) the follow13 ing new subsections:

14 ‘‘(e) UNIFORM REGULATIONS.—

15 ‘‘(1) SUBMISSION OF EACH PROPOSED REGULA16 TION.—Each Federal financial institutions regu17 latory agency shall submit each proposed regulation

18 relating to the supervision and regulation of finan19 cial institutions to the Council for comments and

20 recommendations.

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

22 Council shall review any proposed regulation submit23 ted under subsection (a) and shall provide such com24 ments and recommendations to the appropriate Fed-
35

•HR 1227 IH

1 eral regulatory agency as the Council determines to

2 be appropriate in order to—

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

4 uniformity in the requirements of the regula5 tions of the appropriate Federal regulatory

6 agencies;

7 ‘‘(B) ensure that such regulations address

8 such unsafe or unsound practices involving de9 pository institution holding companies and their

10 affiliates as the Council may identify based

11 upon the Council’s or any appropriate Federal

12 regulatory agency’s experience in administering

13 this Act; and

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

15 account competitive conditions in domestic and

16 international financial markets.

17 ‘‘(f) AUTHORITY TO ISSUE REGULATIONS.—

18 ‘‘(1) IN GENERAL.—Notwithstanding any other

19 provision of law, the Council may, by unanimous

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

21 regulation, interpretation, guideline, order, or other

22 administrative action which could be taken sepa23 rately by any of Federal agencies represented on the

24 Council under the Federal Reserve Act, the Federal

25 Deposit Insurance Act, the Home Owners Loan Act,
36

•HR 1227 IH

1 title LXII of the Revised Statutes of the United

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

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

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

5 judicial review as if the action was taken by the

6 member of the Council in whose stead the Council

7 acted.’’.

8 (d) TECHNICAL AND CONFORMING AMENDMENT.—

9 Section 1003(1) of the Federal Financial Institutions Ex10 amination Council Act of 1978 (12 U.S.C. 3302(1)) is

11 amended to read as follows:

12 ‘‘(1) FEDERAL FINANCIAL INSTITUTIONS REGU13 LATORY AGENCIES.—The term ‘Federal financial in14 stitutions regulatory agencies’ means the Board of

15 Governors of the Federal Reserve System, the Fed16 eral Deposit Insurance Corporation, the Federal

17 Bank Agency, and the National Credit Union

18 Administration.’’.

19 TITLE VII—CREDIT UNIONS

20 SEC. 701. COMPARABLE SUPERVISORY STANDARDS FOR

21 CREDIT UNIONS.

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

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

24 the National Credit Union Administration under stand25 ards which are comparable to the standards under which
37

•HR 1227 IH

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

2 of the Federal Deposit Insurance Act) are supervised by

3 the appropriate Federal banking agency (as defined in

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

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

6 the unique mission and nature of credit unions.

Æ

HR 1227 IH——2

HR 1227 IH——3